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Commissioners set FY2022 property tax rate, review assessment growth and revenue uncertainty
Summary
St. Mary's County Commissioners voted to keep the current property tax rate at $0.8478 while staff warned revenue growth numbers include non‑recurring components and requested caution in budgeting.
The St. Mary's County Commissioners voted to keep the county property tax rate at $0.8478 for FY2022 and reviewed a preliminary revenue summary that showed higher projected revenues tied to increases in the assessable base and income‑tax receipts.
Chief Financial Officer Janet Cudmore told the board the county received the state’s constant‑yield tax letter and updated assessment data showing a notable increase in the assessable base for the area subject to the most recent triennial reassessment (Group 3). Cudmore said Group 3 — which includes portions of Lexington Park and commercial property — produced a stronger assessment increase for tax year 2019 (residential up about 7.2%, commercial up about 15.7% in St. Mary's County), which contributed to projected revenue growth when applied to the county’s tax base.
Staff presented a preliminary revenue estimate that would raise total recurring revenues from prior-year levels; the draft projection included stronger property‑tax and income‑tax receipts, with an estimated increase in total revenues to about $264.2 million for FY2022 (staff noted other local taxes remain volatile and will be refined). Commissioners asked for caution: several spoke about the risk that federal and state stimulus and one‑time receipts — and pandemic‑era unemployment payments — could create a short‑lived revenue bump that does not persist into subsequent fiscal years.
Despite the optimism in the revenue projection, commissioners and staff agreed to be conservative in budgeting. The board approved the current rate (0.8478) and directed staff to continue monitoring revenue trends and to present updated figures as new state payments and data arrive.
Cudmore said the county remains well within its debt‑affordability policies; outstanding debt as a share of the assessable base is projected at 1.85% for FY2022 and debt service as a percentage of revenues is projected at 5.62%, below the county policy target of 10%.
