Cumberland considers ‘significant’ hike in property taxes

April 05--CUMBERLAND -- Mayor Brian Grim is inviting citizens of Cumberland to take part in a town hall meeting on the city's economic future, including the possibility of an increase in real estate taxes.

Grim has scheduled the public meeting for April 12 at the Fort Hill High School auditorium at 6 p.m. to examine the difficult financial position the city is in.

The announcement was made at the regular meeting of the mayor and City Council on Tuesday at City Hall.

Grim said the title of the town hall meeting will be "The Economics of Cumberland: Determining community priorities."

The city receives roughly $8.2 million in real property taxes each year while paying about $11 million annually for fire, police and emergency medical services. The result is a nearly $3 million deficit before any grants are obtained to help cover the shortfall.

Grim said the city is at a financial crossroads and tax increases must be considered.

"... (W)e are getting to a budget position where our expenses no longer match up with the expectations of the community," said Grim. "We are at a point where we have to lay on the table all of the options. Before we make the difficult decision here, we want to hear from our citizens."

City officials are also facing the possible elimination of federal financial support by the Trump administration. President Donald Trump is considering budget legislation that would reduce federal relief to rural areas by cutting programs like the Appalachian Regional Commission, which sends millions of dollars to rural communities.

"We are in a predicament where we can either cut further or increase revenue," said Grim. "When we say increase revenues, we have to be very clear that we are talking about tax increases. There is no other significant way to increase revenue, particularly in an era of a Trump budget that decreases Community Development Grants for infrastructure improvements that people have come to expect. ARC funds will also be reduced, which is project funding."

Grim said an increase in property tax would not be small.

"My expectation is that it won't be 1 or 2 percent -- we are talking about a significant amount," said Grim. "That is not (a tax hike) to increase services, that is to maintain what we have today.

"The other option is to reduce expenses. We have to be clear, we are talking about public safety. They (citizens) have to understand it means less policemen and firemen. ... It's not an option, as far as I'm concerned. But, we need to hear from citizens. That is the whole topic of the town hall."

Dave Kauffman, former city councilman, spoke during public input on the difficulty he is facing in selling his home in Cumberland. Kauffman, who is resettling in the Annapolis area, has been trying to sell his home on Saratoga Street on the city's West Side for more than a year and has had little to no activity.

Kauffman said he purchased the home for $205,900 and invested a sizable amount of money to add space and upgrade the property. With no buyers coming to the table, Kauffman has reduced the asking price to $178,500, still with no offers.

He said difficult economic conditions in Cumberland are creating issues for those trying to sell real estate.

"It is painfully clear by looking at all the challenges Cumberland faces that there is a critical need to reduce the inventory of property if we ever hope to promote an environment where capital investment is rewarded by a reasonable return on that investment," said Kauffman.

He said programs like the Rolling Mill project, officially called the Maryland Avenue Redevelopment Project, could help Cumberland.

"Community right-sizing and tax-based promoting projects like the one on Maryland Avenue, while painful, are essential to the future sustainablility and marketability of our city," said Kauffman. "I encourage each of you (council members) to tackle these challenges head on."

Grim said the members of the City Council, along with other city officials, will be at the town hall meeting.

"We encourage everyone to attend and focus on community problems as they deal with economics," said Grim.

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