(6/25) The Town of Thurmont has approved their Fiscal Year 2026 budget, which includes a decrease in the Real Property Tax Rate. The Council also instituted a temporary hiring pause in the General Fund, except for critical positions.
At the May 20 meeting, Commissioner Marty Burns was concerned about borrowing $230,000 from the Town’s capital reserves, which is essentially the Town’s savings, for the purchase of two trucks under the General Fund. Mayor John Kinnaird assured the Council and residents that there still are funds remaining in the capital reserves and that the Town is required to replace the money, but agreed with Burns’ concern.
Commissioner Bob Lookingbill brought up the concern again at the June 3 meeting, pointing out that the Town could find itself in financial difficulty if there were an issue. Burns was concerned about the implications from returning the money the following fiscal year, when it’s unknown where the Town’s finances will be. For that reason, Kinnaird suggested the Town revisit the policy to return the money within the next year, potentially providing the Town with additional time to return borrowed funds from the capital reserve.
The Council agreed to remove the line item from the budget for Fiscal Year 2026, but to revisit the use of the capital reserves in four to six months. "Because of taking the constant yield into consideration, we cut our income back, which may have been close enough to covering that but we had to think about the taxpayers," Commissioner Wayne Hooper said. "I think by putting this off for maybe a six-month budget amendment would be a good thing."
The Thurmont Real Property Tax Rate will be to $0.2780 per $100 of assessed value for FY-26, which the Council approved 4-0 at the May 7 meeting. Last year, the Thurmont Real Property Tax Rate was $0.2987 per $100 of assessed value. The Personal Property Tax Rate will remain at $0.62 per $100 of assessed valuation for this fiscal year. Of course, the Town cannot determine County property taxes.
"I’d just like to reiterate that the tax rate is based on the constant yield tax rate," Kinnaird said. He went on to explain that despite the decrease in the property tax rate, the valuation of properties has increased. This means Thurmont residents could find their taxes to be the same or even slightly higher than the current fiscal year.
Taxes are expected to bring in almost $2,191,689 in revenue for the Town over the next fiscal year, as noted in the budget. The Council also approved the budget for Fiscal Year 2026, to go into effect on July 1.
Burns suggested a hiring "pause" until around the end of the calendar year to save money for the tax payers. "Just to make sure that we’re okay," he said at the June 3 meeting. The Council agreed to review any vacancies as they come up, especially for critical positions.
At the May 20 meeting, Burns spoke directly to residents at the May 20 meeting to explain that the appearance of a surplus in the budget is not as it seems. "You would think after looking at this [budget worksheet] that the Town of Thurmont has $831,367 net positive that we can spend on anything," Burns said. "That is not true."
In addition to the capital reserve funds, which appeared under revenue before it was removed from the budget, Burns explained that the $529,796 from Capital Improvement Highway User Revenue (HUR) under the capital budget can only be used for specific projects, unlike other revenue sources. According to Kinnaird, the HUR Program is funded by taxpayers, and the money received from the State government can only be used for roads and sidewalks in the Town. Because of this, Burns explained that, in his opinion, the real surplus is closer to $71,571 to spend on unexpected needs.
Kinnaird explained that he prefers having the HUR revenue in the budget every year for transparency. "It shows that we’re getting that revenue," he said. "And at the end of the year, we’ll have spent that revenue on the roads, which is what we’re supposed to do." He went on to explain that the Town of Thurmont has never had a line item for road repairs because of this Program.
Kinnaird ended the discussion by encouraging residents to ask questions about the budget if they have any, whether through public comment or other means. "The Town of Thurmont is run on the investment of our residents and businesses," he said, encouraging both to be involved in future budget proposals through public hearings at the Town meetings.
