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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Thank you for explaining the impact of the
town’s budget on property taxes. Is the greatest chunk of our property
taxes going to the county? We are also affected by the huge rise in our
property values which even if the rate of taxation isn’t increased
dramatically our bill goes up. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Lisa Grob<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>4711 Ravenswood Rd<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> towntalk-bounces@riverdale-park.org
[mailto:towntalk-bounces@riverdale-park.org] <b><span style='font-weight:bold'>On
Behalf Of </span></b>Vernon Archer<br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, May 15, 2007 4:17
PM<br>
<b><span style='font-weight:bold'>To:</span></b> TownTalk<br>
<b><span style='font-weight:bold'>Subject:</span></b> [RP TownTalk] Budget and
taxation</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Friends and Neighbors,<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>I want to provide some information about the budget proposal I
have sent to the council and provide you with some tools so you can understand
what it would mean for you. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><em><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>How Will Your Taxes Change</span></font></i></b></em><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>To get a close estimate to what the change in your personal
tax will be if the Council accepts my proposed tax rates you can do this quite
easily<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>1. go <a
href="http://sdatcert3.resiusa.org/rp_rewrite/searchtype.asp?form%24=SelectCounty&county=17&SearchMethod=Street"
target="_blank">http://sdatcert3.resiusa.org/rp_rewrite/searchtype.asp?form%24=SelectCounty&county=17&SearchMethod=Street
</a> and enter your street address. <br clear=all>
<br>
2. In the results go down to the Value Information and if you have been in your
house for one year or more multiply the 2006 total by .1 and then plug the
result into the the formula (Answer/100) X .687=annual tax change.
For my house the answer is $144 or about a $12 addition to my monthly mortgage
payment. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>If you have not lived in your house for a year, or for property that is
not your personal habitation subtract the 2006 total from the 2007 total and
again use the formula (Answer/100) X .687=annual tax change.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>As part of the research of getting a budget proposal out, I did a
number of calculations for random houses around town. What I found was
that almost no owner occupied property saw more than a $15 per month personal
increase. The vast majority were below $13. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Is this important? Of course it is. Is this a significant burden on
most? You will have to answer that for yourself. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><em><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>What Can You Do If Your Property
Taxes Are a Significant Burden?</span></font></i></b></em><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Whether or not there is any town tax increase this year, if your
total household income is less than $60,000 per year you should visit <a
href="http://www.dat.state.md.us/sdatweb/htc.html" target="_blank">http://www.dat.state.md.us/sdatweb/htc.html
</a> for information about the Homeowners Property Tax Credit Program. It
is particularly important to share information about this program with our
seniors and those with health or related problems. There is relief for
those who are stretched, but they do have to file. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><em><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Constant Yield Tax Hearing and Budget
Hearings</span></font></i></b></em><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>On Monday the 21st we will hold our first meeting in the process
that will culminate in the budget for FY 2008. This meeting will consist
of two basic parts. 1) I will make a presentation to the public about what the
Constant Yield Tax requirements are and an overview of my budget proposal; 2)
questions and comments will be taken from the public about the tax rates and
financial maters of the town. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>While the few emails so far suggest that this meeting might get a
little bit contentious I want to extend a hearty welcome to everyone.
Frankly having some folks show up will be a nice change from the last two
years. No one from the public showed up either year. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>There will then be a series of Finance Committee meetings through June
to arrive at our final budget no later than June 30. The Council will
ultimately decide what the budget will be, based on testimony from myself, the
staff, and the public. All meetings are open to the public and will be
posted on Town Announce and outside the Town Hall. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><em><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Budget Outline Is Attached</span></font></i></b></em><b><span
style='font-weight:bold'><br clear=all>
</span></b><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Attached you will find a copy of my budget proposal. Please take
some time a review it. In particular you might note the following:<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>On the Revenue Page: <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>State resources (such as State Aid for Police, State Highway Funds,
etc) are flat when comparing FY 2007 and 2008.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Business tax resources/licenses and fees are flat or have
declined. The biggest hit we took was from the withdrawal of PNC Bank Tangible
Property. In addition we will likely take a $270,000 hit
from that bank as they seek a refund of taxes they claim to have
overpaid in years past. This won't come out of this years budget per say, but
it makes a big whole in our operating reserves. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Almost all other resources are flat. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>In the cost categories you will will notice:<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>That benefits in particular have gone up, and that is a reflection of
unexpectedly high workman's compensation rates. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Also, in doing the civilian classification system we found several
positions were compensated substantially under regional averages, so this
year the salaries show increase beyond the 4% increase based on the merit
system and COLA. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Fuel and Utilities place upward pressure on budget.<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Capital Budget. When you look at the last page you will see that
only one item is for new spending and it represents a tax of 1.6 cents.
All other items were passed in previous years. What is somewhat deceiving
is that last year we only made one half an annual payment on both our street
and building projects, so this year the rate almost doubles since we have to
make a full year's payment. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><em><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Options?</span></font></i></b></em><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>There are always other options. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>We still have a substantial reserve fund that we can
utilize. However, I see reserves as something to utilize during economic
distress, not the relatively good economic times we are in now. Therefore, I
only suggest spending reserves (unappropriated surplus) down to a point that is
roughly three months worth of operating expenses. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Also, we can start reducing services. From what I can tell,
most of us want at least the level of service we currently have, if not more
still. <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Best wishes,<o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Vern<o:p></o:p></span></font></p>
</div>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><br>
-- <br>
<st1:City w:st="on"><st1:place w:st="on">Vernon</st1:place></st1:City> Archer,
Mayor<br>
Town of <st1:place w:st="on"><st1:City w:st="on">Riverdale Park</st1:City>, <st1:State
w:st="on">Maryland</st1:State></st1:place> <o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>No virus
found in this incoming message.<br>
Checked by AVG Free Edition.<br>
Version: 7.5.467 / Virus Database: 269.7.0/801 - Release Date: 5/12/2007 6:40
PM</span></font><o:p></o:p></p>
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<BR>
<P><FONT SIZE=2>No virus found in this outgoing message.<BR>
Checked by AVG Free Edition.<BR>
Version: 7.5.467 / Virus Database: 269.7.0/801 - Release Date: 5/12/2007 6:40 PM<BR>
</FONT> </P>