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Mayor says city in good fiscal shape Mary Paramore
This is according to Mayor Wayne Dougherty, who spoke to members of the city’s Chamber of Commerce during the organization’s monthly meeting at the Bayou Restaurant in Havre de Grace Jan. 14. “Havre de Grace is better off than other municipalities, which have had to cut services and law enforcement. In comparison to where we are at, they are pretty bleak and we are positive,” he said. “The key to all this was teamwork and planning.” Dougherty said his administration began preparing for the recession in 2007. He said, “We considered the indicators, what the markets were telling us. A little bit of looking and you get a good picture of what’s going on.” Dougherty said the city had corrective action in place in 2007-2008, and continued those actions in 2008-2009. He said, “We looked at a budget without state and county revenues, which gave us a $650,000 buffer.” Cuts that came in October 2009 totaled almost $500,000 and impacted the city’s street and highway as well as public safety funds. Those cuts were absorbed by not funding five employee positions that were vacant through retirement or resignation. He said, “It took care of itself.” Dougherty said additional savings came through renegotiating employee health benefits and instructing department directors to maintain a 15 percent cut in their budget in October 2008. Dougherty said he and County Executive David Craig, a former Havre de Grace mayor, met to discuss rumors of a new round of state cuts coming. Dougherty said, “We anticipate a 15 percent cut in income tax revenues coming back to us. If it doesn’t happen this year, that’s a plus. If it doesn’t happen at all, that’s a plus plus. We’re trying to stay ahead of the game.” To date, for fiscal year 2009-2010, Dougherty pointed out the city has spent only 47 percent of its budget. He said, “We are looking at a possible 10 percent cut in the remainder of this year’s money, but we think there will still be a surplus at the end of the year.”
The Mayor noted that property tax rates have been cut by seven cents per $100 value since 2007 and that his administration is working for an additional two cents per $100 cut for 2010-2011. “If there is any way possible, we will recommend his cut to County, which would bring the tax rate to 59 cents per $100,” he told Chamber members. He also noted the City’s homestead rate was cut from 9 percent to 5 percent in the past month, and hopes to see that rate go to 0 percent in the next budget year. “The biggest thing this administration is working on is to reduce the cost to live in Havre de Grace,” he said.
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Havre de Grace is in a much better economic position than other area municipalities and “past proper planning” was the key. Further, the city likely will end the 2009-2010 budget year with a surplus and landowners may see a two cents per $100 value of assessment cut in city property taxes for 2010-2011. 