"I am hopeful we can persuade the board of (county) commissioners to restore that tax equity payment," he said at a Wednesday meeting.

The county pays annual tax equity to reimburse cities and towns for services they provide themselves.

Frederick city receives the largest share of the payment and had included the anticipated $5 million payment in its fiscal 2010 budget.

The commissioners cut the tax equity to close a $12 million county budget deficit, leaving the city to face a deficit of its own.

Holtzinger must find $1 million to patch the hole caused by the commissioners' cut, or consider cuts to service and personnel.

The city uses tax equity money to fund its police department. According to the county's distribution formula, Frederick police would be hit hardest, with an $888,000 cut.

The cut would also take away reimbursements of $89,000 for planning services and $80,000 for parks and recreation.

The Frederick County Sheriff's Office would not aid the city with policing, despite the potential cut to service, Holtzinger said.

"Those cuts on top of what we have already done are catastrophic," he said.

To balance the city's budget, Holtzinger already eliminated a $10.5 million deficit by keeping salaries flat and cutting expenses on programs and equipment.

Alderwoman Donna Kuzemchak said she would never support a budget that had such drastic cuts to the police department and suggested Holtzinger look at spreading the deficit across city departments.

Alderman C. Paul Smith said the county should consider raising the tax rate for all county residents before unfairly targeting municipalities through a cut to the tax equity payment.

Alderwoman Marcia Hall reiterated what Holtzinger said earlier.

"This is not a grant from the county, this is money owed to us," she said.

Alderman David Koontz advised city residents to protest the commissioners' decision.

Attorney David Severn, who represents Brunswick and Walkersville , urged city officials to push the county, through legal steps if necessary, for the payment.

"I don't think you should accept at face value the county's decision," he said.

"I think you ought to at least look into what legal authority the county has to take away your money."

By Adam Behsudi
News-Post Staff
Originally published April 30, 2009
Frederick News Post