May 25, 2023, College Park MD – The City of College Park is pleased to announce the passing of the City’s Fiscal Year 2024 (July 1, 2023 through June 30, 2024) Budget during the May 23 Mayor and Council Meeting by a unanimous vote of 7-0. The FY2024 General Fund budget totals $24.8 million, is balanced, and does not raise the residential tax rate. “This budget provides for a high level of municipal services, planned growth and improvements to the City’s infrastructure and operations, while meeting the needs of our residents and businesses,” said Kenny Young, City Manager.
The City boasts the lowest residential real estate property tax rate in Prince George’s County at 30.18 cents per $100 of assessed value. For the first time, this budget includes separate real estate property tax rates for residential property and commercial property. The residential tax rate remains the same as the current FY2023 rate, while the commercial tax rate for FY2024 will be 33.18 cents per $100 of assessed value, a three-cent increase over the current tax rate. Despite the increase, the commercial tax rate is still the lowest municipal rate in Prince George’s County. The three-cent rate increase for commercial property is expected to generate $515,000 of additional revenue to fund various projects. Some suggested ideas for the use of the additional revenue have been for small business and senior assistance programs and for the establishment of a student housing rental subsidy program. All suggested uses and programs will be discussed and developed by City Council at a future Council Meeting.
As a measure of fiscal health, the Government Finance Officers Association (GFOA) recommends a minimum 16.67% (as a percentage of total expenditures) unassigned fund balance. The City’s projected unassigned fund balance, excluding the FY2023 surplus, is projected to be $15.2 million, or 65.5% percent, well exceeding the City’s retention goal of 25%. Based on current projections, it is anticipated that revenues will exceed expenditures by $560,000 at the end of FY2023. “The City of College Park unassigned or rainy-day fund balance is at an all-time high,” said Mayor Fazlul Kabir, “this strong fiscal position shows that the City is able to maintain a healthy reserve while effectively investing to improve our infrastructure, maintain and increase services, and provide new amenities to our residents.”
At the inception of this year’s budget process, the City invited residents to provide their input on the proposed budget and provided several opportunities to comment on the proposed budget. To address our resident's and businesses' increased needs, the City is adding six new full-time and four part-time positions including a Video/Television Production Specialist, Events Assistant/Volunteer Coordinator, part-time Animal Control Officer, Code Supervisor, part-time Education Support Specialist, part-time Emergency Assistance Case Manager, three Maintenance Workers in our Department of Public Works, and an additional part-time Contract Police Officer.
More information about the City’s FY2024 budget can be found at www.collegeparkmd.gov/budget.
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News and media outlets are encouraged to contact Communications Manager Ryna Quinones regarding any inquiries or stories about the City of College Park. For all media inquiries, please contact her via email at rquinones@collegeparkmd.gov or by phone at (240) 487-3508.