Elkton maintains current tax rate in FY24 budget

ELKTON — After an unanimous vote, the Town of Elkton's Mayor and Commissioners passed the town's Fiscal Year 2024 (FY24) budget June 7, 2023. The budget will maintain the town's current property tax rate of $0.6356 per $100 of assessed value, create five new Elkton Police Officer positions and provide a four percent cost of living increase for town employees.

The $18.5 million FY24 budget shows a $3.1 million increase from the FY23 budget with the majority of increases stemming from health insurance, pensions and energy cost increases in almost every section of the budget.

Police hold the highest increases from FY23 to FY24 with funding for law enforcement increasing by $1.6 million in this year's budget.

In a breakdown, the increases found in the police operating expense section increased by $106,060 in FY24.

Items like Travels and Meals, Fuel, Liability Insurance and Contracted Services show the most change in operating expenses for police with Travel and Meals more than doubling since FY23 – increasing from $7,000 to $15,000.

Police vehicle fuel increased by $25,277 from the FY23 budget to the FY24 budget with the expenditure breaking over $113,000 compared to the nearly $88,000 it was at in 2023. Police general liability insurance jumped from $78,808 in FY23 to $95,630 in FY24 and police contracted services are budgeted for $200,000 as opposed to $180,000 like it was last year.

As for police personnel costs, health care and pensions occupy more than half of the $812,630 increase since FY23 with health care increasing by $170,437, and pensions increasing by $252,595.

Police salaries increased by $126,798 partly due to the creation of five Elkton Police Department Cadet positions at a starting salary of $50,275. The increase outlined in the salaries section of the police budget and the creation of the five new positions not adding up is a result of the five position costs being offset by a federal grant that will help fund the new positions.

Elkton police officers will not receive a cost of living increase in the FY24 budget, as Elkton Mayor Robert Alt explained that the union representing the Elkton Police Department did not negotiate for one this year.

"We have collective bargaining," said Alt. "Our officers are unionized and we have an agreement where they receive cost of living increases and this year is not one of those years."

Police and public safety makeup nearly half of Elkton's total budget – an indication that Alt says shows how much value the town places on public safety.

"Public safety is the most important thing to us in Elkton," said Alt. "The most important."

To offset the many cost increases outlined in Elkton's FY24 budget, Alt said the town decided against matching the constant yield tax rate – the property tax rate a municipality would have to impose to obtain the same amount of property tax revenue as FY23.

Elkton's FY24 constant yield tax rate decreased from $0.6356 per assessed $100 property value to $0.6303 – a difference of $0.0047.

The constant yield decrease is attributed to the Elkton's increase in property assessments by the Maryland Department of Assessments and Taxation which found that the properties located across all 8.5 square miles of Elkton are worth $1.334 billion as opposed to $1.345 billion

In maintaining the current property tax rate of $0.6356, Mayor Alt said that the town will draw an additional $71,501 in property tax revenue which will be used to cover the increased expenses in FY24.

Along with real property tax rates, Elkton's business property tax rate will also remain the same at $1.21 per $100 of assessed value.

The FY24 budget outlines Elkton's use of American Rescue Plan Act (ARPA) funds for capital expenditures like-

Eight new police vehicles — $623,994A firearms simulator — $36,494Patrol rifles — $5,000A Vermeer chipper — $66,000A Ford F-150 — $56,000Three Ford F-350s — $225,000A Ford F-550 — $135,000Four gravel mowers — $58,000An arm mower — $200,000A debris loader — $84,000A dump trailer — $8,000A tractor — $64,000A sign plotter — $13,000A floor scrubber — $17,000

On July 12, 2023, the Elkton town Mayor and Commissioners will hold a meeting to discuss the town's water and sewer rates for FY24.