| Calvert County budget hearing statement
The following is a prepared statement the I read at the public forum for the Calvert County budget hearing May 18th.
As we sit here today, the Total County Debt is…$133,575,640
Calvert’s population is 87,100… that is a debt of $1554 for each man, woman and child.
Or for a family of 4 $6212…this on top of State debt and the federal debt.
Remember, every time the County borrows money, we the people are effectively co-signers. We are guaranteeing the bond holders that we will pay them back, plus interest.
Our debt service alone, for 2007, is over $12 million dollars.
On top of creating more debt, (borrowing from our future) 10.8 Million alone this year, the Commissioners want to increase your property taxes.
If your house if assessed at 300,000, at the constant tax rate of .805 your tax will be $2415, at the rate the Commissioners want it, .892, will be $2676 an increase of $261. Let’s see what the people can do with that money instead of giving it to the county. What can $261 buy…
94 gallons of gas, about 6 fill-ups,
87 gallons of milk,
180 loaves of bread,
29 movie tickets at Apex Theater,
261 pounds of broccoli
157 cans of corn
1 new set of tires for your car, or you can
Save that $261 at 5.25% and earn $13.70
The 5 year increase in personal income from 2000-2005 was only 5.4% in Calvert. An average of 1.08% per year. And the Commissioners want to raise property taxes this year 10.9%. Even without the property tax increase the county’s revenue will still increase $6,759,669 from income taxes (the piggy back tax) and other sources. At least income taxes are based on your ability to pay, unlike property taxes.
How many people who purchased their home 5, 10, 15 years ago or longer can afford to purchase their home today at today’s assessed value, most likely a very, very small percentage. Yet you are being taxed as though you could!
Try to protest your property tax by not paying it and the county will sell your home to the highest bidder! Leaving you without a home.
Since 1991, 15 years, the Calvert County Board of County Commissioners has never stayed at any constant tax yield rate, so effectively they have raised your property taxes 15 years in a row.
Let’s examine why the housing market sky rocketed during the past 5 years?
Even though median income has been stagnate, relative to inflation.
As interest rates went down and money was chasing borrowers around with exotic loans, more and more people entered the market and drove prices up. The rising prices caused more people to jump in and allocate an ever-larger portion of their income toward housing (50%+++ Debt To Income ratios and stated income loans).
This made sense as long as prices rose to compensate. Once prices stagnate/decline, there is no more motivation or ability to purchase a home…hence the following….
Today the
Number of homes on the market in Calvert = 775 vs. 453 last May a 71% increase
Number of homes on the market in Charles County= 930 an increase of 126%
Number of homes on the market in St. Mary’s= 584 a 99% increase
The BOCC and County Staff should have access to all sorts of economic data and should have foreseen what is on the horizon. As interest rates rise even further home prices will decline because of the increased cost of money, effectively lowing the cost of housing.
And therefore lowering assessments. Instead of increasing property taxes every year the BOCC should have kept the rates constant and adjusted expenditures appropriately. This would have been proactive. Now future Boards will have to react to lowering assessments in the future. Being reactive. The big question is…How will future Boards deal with the decreasing revenues from lower assessments.
In the intrest of full disclosure…I am a candidate for County Commissioner and I vote no on the tax increase.
Thank you |