Bel Air Town Administrator Jesse Bane presented a proposed $16.04 million budget for fiscal 2016 to the Board of Town commissioners Monday evening, a budget Bane said is balanced and does not include a property tax increase.
Bane also noted the budget request comes with a 3.5 percent average merit salary increase for town employees.
The proposed budget for FY2016 is less than 1 percent higher than the current $15.9 million budget for fiscal 2015.
The Board of Town Commissioners must adopt next year's budget before the fiscal year begins July 1. An initial budget work session is scheduled for Thursday.
Bane has proposed keeping the real property tax rate at 50 cents per $100 of assessed value and the personal property tax rate at $1.16 per $100, a rate he said has not budged since 2004.
"In today's day and time, that's almost unheard of," he said.
Bel Air also has the lowest property tax rate of Harford County's three municipalities, according to Bane.
The City of Aberdeen's real property rate is 68 cents per $100 of assessed value, and the personal property rate is $1.70. The City of Havre de Grace's real property rate is 56 cents and the personal property rate is $1.705.
Bane, who joined town government in January, praised Finance Director Lisa Moody and her fellow department heads for their efforts in putting the budget together. He said he had told each department head to "hold the line" on spending
"I think this town is very fortunate to have them as department heads," Bane said.
The town administrator said he also desires a merit increase in employee salaries and a softer impact of rising health care costs for town workers.
Bane said town officials were initially told employee health care costs would go up 18 percent next year, but they have worked with Bel Air's insurer to hold the cost increase to 10 percent.
"It is going to be very difficult to not pass on some of those costs to the town employees," he said.
Bane also talked about the years beyond FY2016 and what the town should do to increase revenue without raising taxes, as well as address police officers' contributions to their pensions, the status of municipal buildings and lowering Bel Air's debt.
Bane, a former Harford County Sheriff, said sworn officers' contributions to their pensions are "an issue that's going to come up every year."
"We're looking to resolve that issue," he said.
The town administrator also said he does not want to make any cuts to employee benefits to save money.
"Our most valuable asset is our people, so I do not want to lose the investment in our personnel," he said.
Bane said the anticipated revenue for FY2016 would not cover a merit increase and hiring additional employees, but he stressed that the town workforce is understaffed, and that issue must be addressed.
"You can stretch that rubber band so far," he said.
Bane said he also wants to address Bel Air's aging town hall and establish a separate facility for the police department, which shares the town building at 39 N. Hickory Ave.
He said the police department is "bursting at the seams" and that commanders "are working out of offices that are the size of closets."
Bane said the situation is "not much better" at the Department of Public Works facility on Churchville Road.
"This is an old building," he said of Town Hall. "It's going to cost more as time goes on."
Bane said he plans to work with town leaders to find new sources of revenue, such as grants, starting a police foundation to obtain financial support for equipment and training and developing partnerships with area businesses and the state and county governments.
He said the partnerships with businesses and governments should be stronger and bigger than the current partnerships.
"We share things in this town with our neighbors in Harford County, and also we have a very strong business community that is willing to enter into partnerships with us," Bane said.
Bane said many town leaders have worked over the years to make Bel Air a vibrant town, and he wants to make the Harford County seat "a showcase for the state, for the United States and even the world."
"I want to make sure that we continue that tradition, not just in this fiscal year but in future years," he said.