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Baltimore Village leaders urge early public talk about income tax as budget tightens
Summary
Council and finance committee members said the village's 1% municipal income tax (set decades ago) will not cover rising infrastructure costs and recommended starting citizen outreach about possible changes to allocations or a modest increase.
Baltimore Village council members and the finance committee agreed this month that the village's long-standing 1% municipal income tax and current fund allocations are unlikely to meet next year's infrastructure needs and recommended beginning a public conversation about options.
Members noted the village has run on a local income tax rate established decades ago and that population and revenues have not grown enough to match rising costs. One council member summarized the situation bluntly: "We've been 1%. That's what he said," and others urged the council to start early outreach so residents can weigh in on proposals, including modest rate increases or reallocation of how income tax receipts are split among funds.
Why it matters: council members said large projects are looming — stormwater, sewer and pavement work — and the budget shows pressures that could require either new revenue or shifts in fund allocations. The finance committee recommended council convene public education and feedback, saying "get the word out" to help residents understand options and prepare for potential ballot measures.
What was proposed: members suggested several near-term steps rather than an immediate vote: revisit allocation percentages among funds; prepare public-facing information packets; and, if needed, present a rate increase option (members discussed examples such as 1.5%) for voter consideration in 2026.
Council members emphasized process and transparency. One official said the county indicated any countywide property-tax changes would likely phase in rather than take immediate effect, which gives the village time to plan. The finance committee's recommendation is advisory; any change to the municipal income tax rate would require council direction and, in most cases referenced in the meeting, voter approval.
Next steps: the council requested staff produce projections and community outreach materials early next year to start public education and gather resident input before formal legislative action.
