As the city of Frederick begins its budgeting process for its next fiscal year, Mayor Michael O’Connor calls for public comment as no residents spoke at the first of five public meetings Monday night.

The city will hold five meetings — including the one held Monday — with the remaining four scheduled throughout December. Each meeting will take place in one of the city’s five voting districts, encapsulating each zone’s local Neighborhood Advisory Committees (NAC).

Once the new five-member city council is sworn in next month, residents will be able to reach out to their respective city council member via email to provide their recommendations for the budget.

Starting in December, the different city department heads will submit their own budget requests with the review process beginning in January and finishing by February. These requests help to shape the budget O’Connor will submit to the city council.

Come April, the council will hold its own public meetings and can make their own amendments. Ultimately, a balanced budget must be approved by the end of May. The dates, times and locations for the next budget town hall meetings can be found on the Frederick City website.

Property Tax

O’Connor says the city is heavily reliant on property tax for approximately 70% of its revenue. Frederick’s property tax rate is approximately $0.70 per $100 of assessed value, which O’Connor says is a reduction from last year.

This reliance is not by choice, O’Connot says, pointing to limitations at the state level. “We are limited largely to property taxes and a share of the state’s income tax to fund general government operations,” O’Connor explained.

By the end of 2026, the city will undergo its property tax assessment, which stands as a major determining factor of the budget for the next three years. O’Connor says if the evaluation comes up shorter than before, it could directly spell a reduction in the city’s overall revenue.

Much of the city’s budget remains consistent, O’Connor said. Employees need to be paid and services need upkeep. This can leave less -as O’Connor puts it- “discretionary funds,” available than may be expected.

If a reduction in property tax occurs the same year as a new city council is elected, O’Connor is concerned the newly elected officials won’t have as much funding available to be spend on their respective districts.

Public Participation

O’Connor says the budget process may be one of the most important things the city does in regards to setting the standard for what Frederick does in the years to come.

The city tries to feel the pulse of the community, O’Connor explained, but with how rapidly things can change, the voice of residents is needed. “The budget is here to work on behalf of our residents and while we can look and identify the priorities based on our own involvement and interaction, to hear from residents themselves about what’s important to them -I think- is a critical input into the process,” O’Connor explained.

While O’Connor said his job is to represent his constituents, the voice of the people doesn’t end at the ballot box. He wants to have conversations with residents throughout the year.