Frostburg reviews first draft of FY2026 budget, flags water shortfall and employee pay requests

Frostburg City officials reviewed a condensed draft of the fiscal year 2026 budget at a work session, discussing tax-rate options, utility and garbage fees, employee compensation proposals, and several fund shortfalls.

City finance staff presented a high-level draft that assumes the current real‑estate tax rate of $0.70 per $100 of assessed value is maintained. Staff said keeping the rate — instead of adopting the calculated constant‑yield rate of $0.6639 — would yield roughly $159,000 in additional real‑estate tax revenue for FY2026. Staff noted they will follow state law and run necessary hearings only if the council sets a rate above the current level.

The presentation emphasized several revenue risks: a drop in the Frostburg State University memorandum of understanding payment (from prior years’ levels to $10,000 and earmarked for the volunteer fire department), uncertainty in state aid tied to the governor’s supplemental budget, and a significant decline in one‑time ARPA reimbursements. Those changes make the draft conservative on revenue and relatively aggressive on expenses.

City staff recommended the council consider a $2 per month increase in the municipal garbage charge. Staff said that would translate to an average $3.70 monthly…