Report on Feb 12 Council meeting, preview for Feb 19 Council meeting, and News you can Use

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Summary: Last week we heard from our Annapolis lobbyist about pending bills that affect us, approved two non-controversial contracts for City services and discussed appointments to City volunteer committees. We also had a presentation on how the City decides when to resurface streets and replace vehicles and equipment, and plans for other building projects.

This Wednesday Feb. 19th, the Council agenda includes: Presentations from 3 business associations (OTBA, Long Branch, TkPk/Langley Crossroads) on their plans for the coming year; appointments to fill vacancies on City committees, a work session on the potential for increasing revenue through railroad and utility taxes and vacant property fees, and a work session on pass-thru grant funds from the State to assist tenants of the Deauville building (7520 Maple Avenue) in buying/rehabilitating their building. 

Only read this next section if you care about property taxes (and please forgive the technical jargon):

State tax officials have sent us the calculation of our projected tax revenue change compared to last year based on assessment changes, as well as the calculation of our Constant Yield Tax Rate (Note: The Constant Yield Tax Rate represents the property tax rate for the coming tax year that will generate the same amount of revenue that was generated during the current tax year.  As assessments increase, the Constant Yield Tax Rate decreases.)

For the tax year beginning FY26, the City’s estimated property tax base will increase in value by 3.64% (from $2,970,153,236 in FY25 to $3,078,304,658) compared to FY 2025.

In FY 2025 our property tax revenue was about $16.4 million. In FY 2026 ourrevenue, if our tax rate remains unchanged, will be about $597,000.00 higher than last year, or about $17.0 million.

Takoma Park’s current tax rate is $0.5522 per $100 of real property assessed value. To receive the same revenue in FY26 (i.e., have a Constant Yield of $16.4 million), we would need to lower the tax rate from $0.5522 to $0.5384, a difference of $0.0138 per $100 in assessed value.

[Note: When the City Manager submitted the FY26 financial forecast late last year he estimated an increase of 4.54% in property values; we now know that the increase was only 3.64%. The CM now is using a smaller projected revenue increase, lowering it by about $183,302, to prepare the draft budget.]

As we work to hold our taxes to a prudent and justifiable level, a good starting point in my opinion is to understand estimated cost increases on the horizon that are non-discretionary – such as negotiated pay increases in Union contracts, costs of insurance, pension obligations and bond payments.

Wages and salaries alone – which are funded from property taxes – are projected in the draft budget to go up by $748,000.00 in FY 2026. (That figure includes both union contract obligatory increases and recommended pay increases for non-union employees.) That figure by itself is larger than the projected increase in revenues due to increased property assessments. So, if we want to lower our expenditures to a constant yield level – even if we want to lower them to constant-yield-plus-an-inflation adjustment – we will need to make some difficult decisions about programs, planned capital projects and amenities along with seeking out efficiencies and new revenue sources.

Right now, the Council is slated to vote on Council priorities – which will likely include the tax rate decision – on March 5th. Some food for thought:

Do we have an ‘Edifice Complex’? Residents should take note that the City has plans on the books for (1) building in the Atrium in the community center, at a cost of $3M over two years beginning in FY 2027. It would ‘fill in’ the open space on floors 1 and 2 of the Community Center. (2) This project does not include renovation of the police department’s current offices; The Police Department also wants to do that.  And (3) Our City Council has also asked State legislators to obtain a $500K grant to plan for renovation and expansion of the DPW operations building on Ritchie Ave.  

What do you think about these three additional construction projects on the horizon? Let me know.

(Note: we will finish paying off of the construction bond for the Community Center this April.)

More details of our Feb. 12th meeting:

In Annapolis, we are supporting several bills that will affect Takoma Park including; tenant rights, environmental ‘polluter pays’, benefits for those impacted by the Purple Line construction, and deleting racially restrictive covenants from property deeds.

During Public Comments our Ward One neighbor Renata McAdams requested public support for a ‘dark sky night’ in Takoma Park this coming Earth Day. (April 22 Earth Day and Arbor Day April 25 are in Dark Sky Week this year.) Great idea! I’m supporting her.

Capital projects: we had a presentation about capital projects and their financing. Some cool factoids: There are 33.5 miles of City-maintained streets; 29 miles have been resurfaced since 2004. We now have no streets that are rated below ‘fair’ in condition. (We use high-tech equipment to monitor their condition.)  The target budgeted amount for Roads/Sidewalks has been $500K annually since 2004. DPW recommends adjusting for inflation to $650K/yr.

Membership on boards and committees: We are close to gender parity, but not many members are under 40 or over 70. Participation from Black and Hispanic individuals is significantly lower than City resident percentages but trending upward.

The Noise Control Board was discontinued around 2022 because it received so few complaints. We discussed replacing it with mediation services, then agreed that the Working Group on Committees should make a recommendation about next steps.

Now here is some News you can Use

Registration for Recreation Department Summer Camps opens this Wed, Feb. 19 for residents – move fast for limited slots!

Upcoming free event for Black History Month: Spoken Word Performance by Melanin Hues – 7:30 pm on Friday, February 21 at the Community Center, 7500 Maple Avenue.

Renters insurance freebie: first time buyers of renters’ insurance may be eligible for a free six months of insurance through a City program. See this link for more information.

With thanks to our County Executive, here are some sources of strength and solidarity in Trying Times:

Resources for federal employees and other workers affected by the precipitous and chaotic actions of the Administration:

Federal and State Officials’ Resources:

Finally,  please come to my next Council Member Coffee: 

 When: Saturday March 1st,10:30 AM – Noon 

Where: Nunley Student Center, @ corner of Chicago, Fenton and New York Avenues (the building with the pedestrian bridge to Metro), In the First Floor Lobby’s coffee shop

What: We can discuss whatever is on your mind, and participants can get to know the College, including the Food Forest sites nearby 

One on One: The last ½ hour can be reserved for one on one conversations (15 minutes/person) on a first come – first served basis – just email me in advance at Jessical@takomaparkmd.gov if you are interested. 

Best,

Jessica

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