Shank, Miller Eye 56-Cent Tax Rate

Two Havre de Grace City Councilmen  suggested on Monday that the city set its tax rate for Fiscal Year 2012 at 56 cents—a four-cent cut from its current rate.

Thursday, Shank said he and Miller had found $700,000 in items that could be cut. In order to reach an three cents in tax relief, $420,000 needed to be cut. The $700,000 figure doesn’t include another $115,000 that’s proposed to be moved from the Marina Fund to the General Fund.

Shank said there is another $165,000—more than a penny on the tax rate—that would need to be cut from the budget in order to reach the proposed tax cut. He said he and Miller planned to discuss it Monday at the City Council meeting.

Miller said Wednesday night volunteer organizations would not be impacted by their proposal.

On Thursday, Shank agreed saying that funding for the Susquehanna Hose Company was not part of their budget cuts. Shank did say three full-time positions and one part-time position—each currently vacant—within the city government would be left open under their proposal. Two of those positions are full-time police officers.

Shank, Miller and Councilman Fred Cullum voted at last week’s Council meeting against the Mayor’s proposed rate of 59 cents. Cullum wanted the rate to stay at 60 cents.

“I didn’t support the proposed one-cent reduction because I believe we can go farther than that. Last year I supported a five-cent reduction,” Miller said. “I think there’s a lot of fluff in this budget.”

Shank suggested he would “get a group of citizens together” to look at the budget and determine where cuts could be made.

He also said the city should halt all hires until the budget is finalized.

“For us to be able to come up with some numbers to make this work, then I would propose that there be a hiring freeze,” Shank said, noting that Cecil County did the same at the advice of a citizen. “I can’t make a motion, but I would request that we seriously look at that as an option.”

Conversation among council members at Monday’s budget work session became tense as Council President Bill Martin sought to take steps toward establishing a tax rate.

When it became clear Miller and Shank did not have the specific budget cuts that would back up their proposal, Martin was prepared to adjourn the work session. Cullum suggested they discuss the budget for the Marina Fund and the Water and Sewer Fund.

City Council will discuss the budget and tax rate at Monday's meeting. Patch will provide live blog coverage of the meeting.

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Editor's Note: In an earlier edition, Patch incorrectly identified the amount of budget needed to be removed to reach a four-cent tax cut. Patch regrets the error.