HAGERSTOWN – Hagerstown officials have proposed a new $27 million budget for the 2026 fiscal year that would raise taxes to support increased public safety funding and address rising utility costs. The plan, presented at the City Council meeting on April 1, includes organizational restructuring to improve services for residents and businesses.
If approved, the proposed budget would increase the city’s property tax rate by 5.5 cents, bringing it to $1.057 per $100 of assessed property value. For a home valued at $200,000, this increase amounts to roughly an additional $110 per year.
The increase, the first since fiscal year 2018, would primarily fund expanded police and fire department staffing and increased salaries and benefits. City Administrator Scott Nicewarner said that the tax hike is necessary to maintain essential public safety services.
“We are prioritizing safety, preparedness and the long-term resilience of our community,” Nicewarner said.
Public safety at the forefront
Public safety spending would rise by $3.1 million, according to city documents. The funds would pay for nine additional police officer positions, higher wages negotiated with the local police union and upgrades to emergency equipment and technology.
Community members have repeatedly voiced their support for increasing officer pay and improving retention to help address crime and improve response times, according to city officials. Recent city reports indicated that recruitment for police roles has been challenging, influenced by national debates on policing and competitive private-sector salaries.
Utility and infrastructure costs rise
Utility costs are also rising, with water rates set to increase by 14 percent and wastewater rates seeing a smaller 1 percent increase. Both adjustments will fund significant infrastructure projects, including replacing and repairing aging facilities.
Additionally, city electric rates recently increased for the first time since 2005 due to higher wholesale power costs. The city indicated more adjustments may be needed to address continued deficits in the utility fund.
Organizational changes planned
The budget proposal includes a significant reorganization following the retirement of Kathy Maher, the former planning and code administration director.
Beginning April 14, the city will divide Maher’s former department into three separate units:
- The Engineering and Permits Department, led by City Engineer Jim Bender, will handle permits and inspections, returning to an organizational structure that was last used before 2013.
- The Department of Planning and Economic Development, headed by Jill Thompson, will consolidate planning and economic development efforts.
- Under Amanda Gregg, the new Department of Housing and Community Development will combine neighborhood and community services to streamline communications with residents and developers.
- Sue Kyler will fill a newly created position, the housing and development liaison. She will be the primary point of contact for developers and business owners, guiding them through city permitting processes.
Economic incentives continue
The budget supports economic incentives, such as the Invest Hagerstown program, which would receive about $1.08 million. The city will continue promoting small business growth through customized incentives and community grants.
Public hearings on the proposed budget and tax rates are scheduled for May 13. The council’s final adoption is set for May 20. Residents interested in more details can visit the city’s official site at hagerstownmd.org.
