Hagerstown Council discusses $6M budget shortfall and user fee increases

The Hagerstown City Council held a work session on May 6, 2025, focusing on the upcoming budget and proposed changes to user fees. Key discussions included adjustments to various fees and the financial implications of rising operational costs.

During the meeting, officials outlined several fee increases that will be included in the budget. Notably, the annual commercial trash collection fee will rise, reflecting changes in the city's waste management contract. Additionally, the hourly fee for police special assignments will increase from $84.50 to $104.27 due to rising salaries and benefits. The Public Works Department also reported an increase in revenue from the State Highway agreement, raising their payment from $1,500 to $2,100. Furthermore, rental properties managed by the water department will see a 3% increase in fees.

The council discussed the broader financial landscape, highlighting a projected $6 million increase needed in the general fund for the next fiscal year. This increase is attributed to rising healthcare premiums, which are expected to rise by $1.5 million, and significant wage increases for police and fire personnel, which have averaged between 10% and 13% over the past three years.

To address the funding gap, officials noted that the city anticipates $2 million from new growth and another $2 million from changes in property assessments, leaving a shortfall of approximately $2 million. This shortfall could necessitate a tax increase of about 5.5 cents, translating to an additional $110 in taxes for the average homeowner.

The council also examined potential cuts to the budget, including the possibility of closing public amenities such as the city pool, which is projected to lose $250,000 next year. However, the savings from such closures would be minimal compared to the overall budget needs.

As the council prepares for the public hearing and subsequent budget vote, the discussions underscored the challenges of balancing community service demands with fiscal responsibility. The next steps will involve finalizing the budget details and addressing the anticipated tax adjustments to meet the city's financial obligations.