CUMBERLAND — City residents are facing potential cost increases of 73% for trash and 20% for water.
Meanwhile, the assessable tax base for Cumberland real property is expected to increase by 6.5%, which could mean more revenue for the city, and higher bills for homeowners.
The mayor and City Council at a public work session Tuesday discussed an initial budget draft for fiscal 2026, which addresses issues including elevated inflation, health care, electricity, fuel oil and natural gas.
“We’re always cautious of rising costs,” Cumberland Comptroller Mark Gandolfi said.
The city recently rebid its trash contract at a renewal rate that will cause a $1 million deficit without a fee increase for residents, he said.
The current monthly rate for residential trash collection is $16.50, and the proposed rate is $28.55.
The city in fical year 2025 increased water rates by 20%, and proposes to do the same for FY26.
Cumberland’s water fund is “in a very vulnerable cash position in FY26 and beyond,” the budget proposal states.
A 20% water rate increase for the average monthly consumption of 3,000 gallons, or 402 cubic feet, would mean roughly an extra $5.
The sewer fund projects a negative cash flow of $1.6 million, but maintains “a very strong cash position of $12.6 million,” the proposal states.
No sewer rate increases are expected.
The proposal maintains an existing $1.0595 tax rate versus a constant yield rate of $.9946.
According to the Maryland Department of Taxation and Assessment, the constant yield tax rate is a property tax rate that, when applied to new assessments, results in the taxing authority receiving the same revenue in the coming taxable year that was produced in the prior taxable year.
The city anticipates annual assessable base increases to continue.
“FY25 and FY26 constant yield notice increases are the two highest since 2012 at 6.5% each,” the budget proposal states.
“The value of homes are improving,” Gandolfi said. “We’re excited to see that.”
The budget proposal recommends a 3% cost-of-living adjustment for non-union city employees.
A 9.6% health insurance increase this fiscal year is expected to cost $5.1 million.
Gandolfi said new grants will be critical for the city, especially regarding water and sewer funds.
“We need to continue to find more,” he said of securing financial assistance.
The first reading of the proposed budget ordinance will he held at the city’s May 20 public meeting.
The budget is scheduled for adoption June 3.