As a nation, we are facing the worst economic blow since the Great Depression. State and local governments around the country are preparing austerity budgets as we enter an extended ‘new normal’ in the wake of the coronavirus pandemic. But not St. Michaels. The majority leadership of the town commissioners apparently believes the old normal will come charging back over the next fiscal year. That is contrary to what most leading economists and business leaders expect.
Unlike other municipalities, we are handing out pay raises, and committing the town, in this time of uncertainty, to new debt for capital projects that should be delayed. The commissioners, by a vote of three-to-two, have passed a budget that snips a bit here and there, but falls far short of what’s needed. The majority leadership is forging ahead with building a new $3-million-dollar town office that’s too big, too expensive, and in the wrong place. They also want to spend another $200,000 to extend brick sidewalks on Talbot Street far beyond the core business district. And they are dipping into the town’s reserve funds to balance a bloated budget.
We can’t go on as if this pandemic never happened and will soon disappear. St. Michaels depends heavily on tourism for revenue. Will tourists come flocking back? Not likely, since all of the events that have drawn them in the past have been cancelled. And probably not likely until we have a vaccine, widespread testing, contact tracing, and proven drugs for treatment. Yet the leadership has budgeted for a mere 25-percent drop in tourism traffic.
This is not a time for head-in-the-sand policies. And it’s not a time for business-as-usual. Yes, the commissioners claim they can adjust the budget later, if necessary. Instead, we should be reducing our debt load rather than adding to it. We should be investing in our future now…building on our resources to diversify the local economy. If we don’t act now, the owners of the town’s 835 taxable properties will be left to carry the entire load.
This is a critical moment in our town’s history and there is no room for error, and no room in our budget for excess, or personal agendas. We are asking the majority leadership to restructure the budget now, instead of waiting until the full weight of financial ruin is upon us. We all hope the town will recover quickly, but we should also be prepared if it doesn’t.
David Breimhurst
Tad duPont
Cathy Stinchcomb
Sue Ann Raring
John Novak
Marie Martin
Marian Brown
Sara Robins
Maggie Anderson
Scott Anderson
Karen Wald
Ron Watson
Ann Watson
Jonathan Dietrich
Aida Kahlil
Dennis Glackin, Town of St. Michaels Commissioner says
The recent letter to the Editor about the need to reduce St. Michaels debt load leaves out several important points. First of all the only debt the Town carries is related to loans that were taken out to upgrade the drinking water system and for arsenic removal. These loans are paid back through revenues received through the Water Fund, not general tax revenues.
Overall spending is reduced from the current year. Revenue projections for the Accommodation Tax have been reduced 11% and reductions in the Admissions and Amusement Tax, along with Interest on Investments have similarly been reduced, reflecting the current economic conditions.
Raises of 2% were given to Town staff. Our staff provides outstanding service and maintaining a competent staff provides the essential services our residents have come to expect. Police salaries were increased to have their compensation levels come closer to other local departments. As our Chief of Police explained during the budget deliberations, why would we spent large sums of money to recruit, train and employ police officers, only to have them leave for other local departments that pay more? Recognizing their importance to the community was paramount in our deliberations.
If the signers of the article had participated in our budget deliberations, they would realize that the sidewalk upgrade funds are contingent upon further review and will only to be used if our revenue projections are accurate. Otherwise the $200,000 will not be expended.
All of the Town’s taxpayers should know that the Commissioners have foregone a salary increase that was approved by a previous Board, so that our $2,000/year salary does not increase.
Any spending for a badly needed new Town building will be partially offset by funds previously budgeted but not spent and the sale of excess properties. Interest rates are at historically low levels and construction costs will only increase in the future.
Finally, we are proud to let the taxpayers know that the tax rate is remaining the same for 2020-2021, and that this is the 4th year in a row with no tax increase.
We are totally cognizant of the challenges facing the Town in the coming year, and any suggestion that the Commissioners are engaging in “head in the sand” policies is unwarranted and unfair.
Thomas C. duPont says
In reading Dennis Glackins response to the letter I need to add a few comments. First I appreciate all the commissioners do to take care of our village. I signed the above letter because it aliens with many of my beliefs and refects a very real situation that the town will be facing. To infer that we didn’t pay attention to the budget process is unfair. First I requested a copy of the draft proposal which I received, a paper copy I might add. Read, marked up and submitted a letter the the commissioners that was read into the record at the budget hearing. I questioned then as now about the size of the deficit we are approaching. Eleven percent is probably a friction of what we can expect. Truly hope that’s not the case.
We all will need to work together to jump start our village when this is over.
T.C.duPont
203 Locust Street