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2017 Budget Discussions
Town Of Cheverly
News and Announcements


The Town Council will consider the final version of the 2017 Budget in the May 26th work session.  The information provided below was just submitted for the June Newsletter and is intended to ensure that everyone has a final opportunity to provide input prior to the May 26th work session.  

If you have questions you can either call or email your council person or the mayor.  A copy of the entire budget can be obtained at Town Hall.

Work Session Information:
Time:                  7:30PM
Location:           Conference Room
6401 Forest Drive
                           Cheverly, Md.   

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2017 Budget Detail: The Town Council received the Budget for the first time in the March 24th Council Meeting.  During the April 28th meeting the Council took the following actions to amend the budget submitted by the Town Administrator.
  • Reduce the Tax Rate from 58 cents to 56 cents.
  • Unfreeze the Public Works position that has been frozen for more than 5 years.
  • Add $200,000 in expenses for the purpose of repairing roads throughout Cheverly.  These funds are in addition to the $139,000 allocated by the state through the Highway User Revenue program.
  • Add $50,000 in expenses for the purpose of building a Dog Park.  The target location is behind our Public Works building but we are still pending State Highway permission.
  • Add $50,000 in expenses for the improvement of 6301 Kilmer Street, in order to be able to open the area to residents.  
  • $8,000 in expenses for the Concept Design for the redesign of the Public Works Building.
  • $70,000 in expenses for the building of a canopy for the Public Works gas pumps which is a mandated environmental initiative.
Other large operating or capital costs previously in budget for:
  • $80,000 for the last lease payment on Trash Truck
  • $109,000 for loan payment for Police Building construction.
  • Town Park Ball Field Improvements: 53,000
  • Two Police Vehicle Replacements: $90,000
  • New Public Works Truck: $70,000
High Level Summary: Once again, the town is in excellent financial condition as we close Budget Year 2016 with a 2.184M Fund Balance.  As described previously this Fund Balance is the result of some increases in tax revenues as well as improvements in revenue from red light cameras and income taxes.  Additionally, Town Staff has done an amazing job at keeping operating expenses stable which allows additional funds to go towards improvements in capital projects such as: fleet maintenance, parks, roads, and buildings.

Once again as we head toward Budget Year 2017 the Town has budgeted very conservatively; income is budgeted low and expenses high.  This prevents us from overspending and creates a situation where the Council typically projects a deficit, but the yearly results usually end up positive.  This is how the Fund Balance has grown from $750,000 in 2008 to 2.1M at the end of FY2016.

The Budget Deficit projected for FY2017 is $498,000.  This deficit is not driven by operational costs, which you frequently hear called “structural deficits” by other governmental units.  As you can see from the list of capital projects the deficit is driven by the Council’s decision to address long deferred needs of the community and town staff.  

I suspect that improvements in specific revenue categories will reduce this deficit significantly by the end of the Fiscal Year.  However, even with this projected deficit the Town Fund Balance (reserves) will be 1.685M at the end of the fiscal year.  This is a very healthy amount.   

So Let’s Talk about Your Tax Rate / Tax Bill:  The Town Council is pleased to be able to lower the Tax Rate from 58 cents to 56 cents this year and will continue to identify opportunities to reduce the tax rate in future years.  

However, please note because home assessments continue to increase the town will receive 4.9% more revenue through property taxes in FY17 and your tax bills will reflect a 4.9% tax increase in the Cheverly Taxes line item.  

Last year your Cheverly Taxes rose by approximately 7.9%, so in the last two years Cheverly Property Taxes have increased almost 13%.  

However, please that growth in context.  In FY12 total property tax revenue was $2.948M versus $2.957M in FY15.   So during that four year period there was no property tax growth at all.   

Therefore, Property Taxes have only grown 13% in the 6 years since FY12.




 
Cheverly Executive Offices:   6401 Forest Road, Cheverly, MD 20785  (301) 773-8360
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