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Leonardtown adopts FY2026 budget, holds real property tax rate
Summary
The Leonardtown Town Council approved Ordinance 228 to adopt the FY2026 budget, maintaining the town's real property tax rate and approving utility and trash rate adjustments; the vote was taken by voice during a public hearing.
Leonardtown's Town Council on April 14 approved Ordinance 228, adopting the town's FY2026 budget and leaving the real property tax rate unchanged.
The budget passed after a public hearing and a voice vote. Sharon, the town treasurer, told the council the general fund budget totals $3,110,677 and that the town's fund balance would remain healthy at about 58.6% of operating revenues.
The budget maintains the current real property tax rate the town used in 2025 (0.12003) and relies on a mix of income taxes (about 30% of operating revenue), property taxes (just under $1 million, about 32% of operating revenue), highway user revenue (budgeted at $391,099), permits, fees and grants, Sharon said. She said the town budgeted a $250,000 share from reserves toward the Route 245 sidewalk project and committed $33,653 to a waterfront revitalization project this fiscal year; she said the town previously committed more than $500,000 overall to that effort and has spent about $175,000 on a related parking lot.
The council also approved adjustments to enterprise fund rates that will affect residents. Sharon said the combined average increase for a typical household —1 (water, sewer, trash) will be about $10 per month once the trash rebid and water/sewer adjustments take effect. Specifically, she said the sewer and solid-waste line items include a $3.53 monthly increase for residential solid waste service and a $2.55 monthly increase tied to water system costs, and that the trash contract rebid produced a $3.81 per-month increase for trash service. Sharon said enterprise rate changes are detailed in the budget packet.
Sharon said the town will move its utility billing software to a cloud system that will enable ACH payments; the town has already received about 40 ACH enrollment forms in the week after the council discussed the change.
During the public hearing period, resident Gordon Stellaway asked whether expanded restaurant seating and sidewalk encroachments had reduced town parking. Council members responded that parking and connectivity were included among comprehensive-plan action items and that staff had begun exploring strategies, including technical assistance on parking-structure planning.
Motion and vote: A council member moved to approve Ordinance 228; the motion was seconded and carried by voice vote. The meeting record shows the council voted "Aye" in voice for adoption; the transcript does not record a roll-call tally.
Looking ahead, the treasurer said capital projects in coming years include a water meter replacement program and continued work on the water tower, and the council reiterated that both sidewalk and waterfront projects remain priorities.
