Councilman Ladd Breaks Down Local Budget Impact in Latest Column

The following is from the July edition of a monthly column written by Anne Arundel County Councilman Dick Ladd (R-5th District), a resident of the Broadneck peninsula.

Earlier this month the County Council passed County Executive Neuman’s FY2014 budget.  The process was notable in several ways: 

• The process was less acrimonious than previous budgets, in large part due to the improvement in our revenue situation and the improved relationship between the County Executive’s Office and the unions;

• The budget was adjusted shortly after its submission to incorporate the Watershed Preservation and Restoration Fund (WPRF) established by the Council as mandated by the State; (The details of how the WPRF will impact Severna Park and the Broadneck Peninsula were covered in my last Voice article.)

• Funding in the County’s depleted contingency and reserve funds were restored to pre-recession levels.  These reserves also provide revenue predictability to the Board of Education and the Anne Arundel Community College, which depend on County funding.

First the revenue side:  Revenue estimates are up nearly $100 million (including the WPRF) or nearly 7.5 % over FY2013.  This includes an increase in property taxes as allowed by the Charter (about $26 per average household); higher income tax receipts from an improving economy; property recordation and transfer fees slightly below FY2013 actuals but substantially above our FY2013 budget estimate; and  higher “fund balances” or projected cash on-hand that will carry forward to FY2014, which is much better due to the improvement in the 2013 real estate transfer fees.

The Council reduced the proposed 5% increase in water and sewer rates to 3% -- a reduction of $10 million in revenue to the County water and sewer utility funds based on funds available.

On the expenditure side, the Council funded the County Executive’s proposed 3% pay raise (the first in many years) effective January 2014 plus 3% merit increases.  Additional public safety capability was funded for the area around Arundel Mills Mall and “Maryland Live”.

In addition to the funds for local stream and bay restoration, the budget provided $18.5 million for Severna Park High School and $5 million for Benfield Elementary for spring 2014 construction starts leading to fall 2016 occupancy.  Funding for turf field improvements at Kinder Park was also approved. 

The Council deleted out-year construction funding for three elementary schools including Arnold Elementary pending completion of an update to the Board of Education school construction plan (MGT).  As indication that the Council supports the three schools, it added $750,000 to complete a feasibility study for each one. 

The out year pressure on the capital budget is mounting with the need for a new police training facility, recapitalization of the library system, the Community College and the County IT systems and network.  (Note:  a new Severna Park library is programmed as No. 4 in line but more than a decade away.)  That category of “infrastructure backlog” is estimated by the Budget Office to be at least $2 billion – roughly a 20-year “recapitalization” plan under foreseeable funding patterns.

Along with restoring our reserve accounts, the budget starts bringing the average age and mileage of our vehicle and maintenance equipment fleet back to manageable proportions.

Acknowledging that I will be precisely wrong in some cases, with the County’s 2.56% income tax rate and its current property tax rate, Anne Arundel County’s property and income tax costs are lower than Baltimore, Harford, Howard, Montgomery, Prince George’s Counties and the City of Baltimore, which leads me to think of Anne Arundel County as a very high quality, cost effective place to live.

Have a great summer and be sure to call or e-mail me with any questions, comments, or suggestions you may have.  dladd@aacounty.org or 410-222-1401