Mount Rainier council adopts FY2026 budget, sets tax rates; work session reviewed $2.5M in grants and Potts Hall funding

The Mount Rainier Mayor and City Council unanimously adopted Ordinance O2-2025 on April 15, approving the fiscal year 2026 budget and establishing municipal tax rates that will take effect July 1, 2025.

At a preceding work session, Finance Director Ron Wilson presented Budget Amendment O3-2025, a set of recommended operating and grant adjustments. Wilson told the council the city will increase the Potts Hall budget from roughly $1,000,000 to $2,500,000, with $1,500,000 coming from the city’s fund balance and the rest from external financing and grants. He also described a $64,300 transfer into the police department building-maintenance line to accommodate a roughly $65,000 roof repair.

Why it matters: the amendment brings roughly $2.5 million in grant revenue or rebudgeted grant authority into the FY2026 plan, funding projects from Richardson Park and facade work to solar panels for city buildings. Wilson listed named grants and sources, including ARPA adjustments, state capital grants (including a $750,000 award tied to Potts Hall), a $300,000 state grant for the police basement, a $422,000 Maryland Energy Administration (MEA) grant for solar panels, and other park and mural grants.

During the legislative meeting that followed, councilmember Valerie read the second reading of Ordinance O2-2025, which sets tax rates at 75¢ per $100 of assessed value for single-family and townhouse properties; 86¢ for multifamily property; 79¢ for commercial and industrial property; $2.50 per $100 for vacant developed property; 99¢ for business personal property; and $2.75 per $100 for operating property of railroads and public utilities. The ordinance also lists total general-fund revenues at $11,681,340.33 and matches total budgeted expenditures at the same amount.

The ordinance text specifies department-level appropriations and full-time equivalents (FTEs): City Hall $3,734,606.41; Police Department $3,857,731.83; Public Works $2,060,150.88; and a total FY2026 FTE count of 46, unchanged from the prior year.

Resident comment and council discussion: During public comment, resident Joseph Jakuda praised staff stewardship and urged the city to seek greater local flexibility in setting rates, citing state constraints. A resident asked how much the rainy-day fund would contain after the planned $1.5 million transfer to Potts Hall; Ron Wilson said he could not provide an exact number at the meeting but estimated the fund would still hold roughly six months’ worth of budget and that an exact figure would be provided by the first reading.

Motions and vote: Mayor Selena Benitez moved to approve Ordinance O2-2025; the motion was seconded and the council announced the ordinance was passed unanimously. Earlier in the work session the council granted a 10-minute extension to complete the presentation by unanimous consent.

What happens next: The budget and tax-rate ordinance take effect July 1, 2025. Officials said the budget amendment materials will return for formal first-reading consideration at the May 6 legislative meeting; staff will provide an updated rainy-day fund balance and final ordinance language at that time.

Representative quotes

"We are adding 2 and a half million dollars to our grant revenue budget," Ron Wilson said while summarizing the grant additions and rebudgets.

"It is great . . . to see the collaboration amongst all the city council members and staff in developing a solid budget," resident Joseph Jakuda said during public comment.

"We have officially passed the budget for FY '25-'26," Mayor Selena Benitez said after the motion and vote.

Authorities and legal basis

The ordinance reading references section 6-303 of the Tax-Property Article of the Annotated Code of Maryland for timing and requirements of municipal tax-rate-setting. Ordinance identifiers discussed in the meeting include O3-2025 (budget amendment, work session presentation) and O2-2025 (second reading and adoption of the FY2026 budget and tax rates).

Ending

Council members thanked staff for the budget work; the meeting adjourned at 7:56 p.m. The administration said amended budget materials and a precise rainy-day fund balance will be provided at the next legislative meeting when the amendment returns for formal action.