The Annapolis city council approved Monday a $90 million operating budget for the next fiscal year, a spending plan that raises the city's property tax rate and increases a variety of fees for city services.
The council approved Mayor Joshua J. Cohen's proposed budget by a 7-2 vote, city officials said. The city's $9.1 million capital budget was approved unanimously.
The budget for fiscal year 2012 is the result of an agreement reached last month by a majority of the council. It mandates $2.8 million in spending cuts — achieved mainly through a hiring freeze and attrition — and nearly $1.9 million in property tax revenue increases. The city's property tax rate will increase 3 cents, to 56 cents per $100 of assessed value. The tax bill on the average assessed value of property in Annapolis ($375,450) would rise by $112.63, to $2,102.52.
"The council has taken the next significant step forward in our effort to transform the city's finances by beginning to rebuild our reserves and address our long-term obligations," Cohen said in a statement. "Our fees for so long have not covered the expenses of services, and this budget accurately and honestly does so. In passing this budget, the alderpersons also endorsed this administration's charge to present a more transparent budget that fully accounts for all transfers between funds as well as grant spending."
The spending plan increases the fares for most Annapolis Transit riders, and increases the refuse and storm water management fees. The city has also shored up its reserves, establishing a general fund reserve of $10.5 million.