Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Tax Rate topic
No spam. Unsubscribe anytime.
Takoma Park council directs 1¢ property tax cut, asks staff to prepare ordinances
Summary
After finalizing FY27 budget adjustments, Takoma Park council instructed staff to prepare ordinances to lower the real-property tax rate by one cent (to 0.5422) funded in part by a newly projected utility-tax increase and reserve changes; the council approved the direction in a roll-call vote.
The Takoma Park City Council on April 29 directed staff to prepare ordinances to lower the city’s real-property tax rate by one cent, from 0.55 to 0.5422, as part of final FY27 budget reconciliation.
Mayor Cersei framed the proposal as a sustainable reduction made possible by a recently identified revenue increase from a raised utility tax (estimated at about $318,515) combined with expenditure adjustments and reserve management. “That would then be something that is sustainable,” the city manager told the council when asked about long-term impacts.
Why it matters: The one-cent decrease was positioned as a way to return modest savings to property owners while preserving the city’s fiscal cushions. Council members emphasized the need to maintain adequate reserves for contingencies such as labor negotiations and future obligations even while pursuing the tax cut.
The council considered and rejected a substitute motion to cut two cents and then moved forward with the mayor’s 1¢ proposal. Council Member Hanzac moved the final proposal and Council Member Dybala seconded. In a roll-call taken at the meeting, Council Member Lanman, Council Member Dybala, Council Member Schlaggel, Council Member Gilbert, Council Member Hanzac, Council Member Weslect and Mayor Cersei voted in favor; the substitute two-cent reduction failed earlier in the meeting.
Budget context and trade-offs: Finance staff walked the council through reconciliation items reflected in the FY27 package: revised general fund revenue of roughly $33.28 million and proposed general fund expenditures of roughly $34.96 million. The presentation showed an unassigned reserve target of 17% ($5,657,279) and a reported revised unassigned reserve balance of about $6.31 million (about 18.9%). Council-approved add-ons included items such as a $100,000 community quality-of-life grant, a $25,000 increase for library programming and a $15,000 increase for tree planting; some capital and equipment items were deferred or reallocated (for example, a $75,000 traffic-calming item was moved to the red-light camera fund).
Other budget items discussed: Staff presented a one-year extension to the city’s audit contract with Barbara Kane Thornton & Company LLP to complete the FY26 audit work (to be performed in FY27). The engagement letter totals $46,500, broken down in staff comments as $37,400 for the financial statement audit, $3,715 for the single-audit (federal grants) and $5,385 for financial-report preparation. Staff said an RFP will be launched for auditing services beginning with FY27 procurements.
What happens next: Council instructed staff to prepare the ordinance language and supporting materials for the upcoming voting session, where the formal vote on the tax-rate ordinance and the FY27 budget ordinances will be held.
