On Wednesday, January 9, the Greenbelt City Council received a briefing on the current fiscal year (2019) budget and shared their ideas as to what each councilmember hoped would be included in the Fiscal Year 2020 budget.
City Treasurer Jeff Williams told council that he expects the current year budget to show a small surplus by the end of the fiscal year (June 30). Both revenue and expenditures are down from the amount budgeted.
Net real estate tax revenues will be lower than Fiscal Year 2018, largely due to lower than anticipated property tax assessments. These revenues may decrease further if commercial property owners successfully challenge their assessments.
Williams reviewed other sources of revenue and expenditures. Hotel/motel tax receipts are expected to decline due to additional competition such as the new hotel at the University of Maryland. Income tax revenue is up, cable TV revenues are down as is red light camera revenue.
So far this year, interest revenue is running above the budgeted amount, which Williams attributed entirely to the Federal Reserve Board’s increasing of interest rates.
Expenditures are down, largely due to vacancies. A higher vacancy rate reduces salary expenditures as well as pension payments (set based upon the number of filled positions on July 1). Declines in motor vehicle fuel cost, and insurance and workers compensation premiums are also significant factors.
Read more of this story in the January 31 News Review.
