Anne Arundel residents who use an ambulance or guests staying in county hotels could pay more for the services. “In these difficult economic times, we must find the political fortitude to make budgetary decisions that reflect our fiscal approach,” said County Executive John R. Leopold, who unveiled the fiscal 2009 operating and capital budgets before the County Council on Thursday.
The $1.22 billion operating budget, which includes the new ambulance fee and hotel tax increase, shows a projected $60 million revenue increase, thanks to rising tax revenues and $11 million in proposed fee and tax increases.
However, property and income taxes rates will not increase.
A $500 ambulance service fee is being proposed to generate $2 million.
Many insurance companies cover the fee, but people without insurance will have to pay up.
However, no one can be denied service, Leopold said.
He also wants to increase the hotel tax, which could generate about $6.3 million.
Officials said the county?s hotel tax rate is still lower than other areas such as Ocean City. Anne Arundel has two major hotel districts at Baltimore/Washington International Thurgood Marshall Airport and Annapolis.
Various fees for licensing, permitting and inspecting would increase, costing more to obtain operating licenses for restaurants and drilling new wells, build new houses and offices, and install septic systems in new houses.
Officials said the increases are needed to offset $17 million in state cuts, $20 million lost in real estate taxes such as recordation and transfer taxes and the rising cost of inspecting and permitting restaurants and wells.
“In tough times like these, it?s hard to swallow any cuts in revenue,” said budget officer John Hammond.
Council members did not receive the budget until Thursday and couldn?t comment on specifics, but are eyeing the fee increases.
“We want to make sure we?re not pricing ourselves out of the market, and that we are charging the cost of business,” said Council Chairwoman Cathy Vitale, R-District 5.
The property tax rate is expected to decrease because of the county?s revenue cap.
But higher assessments will mean residents pay $30 more this year, Hammond said. The county expects to take in $516 million in property taxes in fiscal 2009 — a 9 percent increase from the current year.
Anne Arundel also expects its income and local sales tax revenue to increase next year.
Revenue from real estate taxes will be $20 million short this year.
