Fort Meade Must Correct Mistakes On Tax Paperwork; Public Hearing Monday


FORT MEADE | State revenue officers have discovered mistakes in Fort Meade's paperwork documenting its 2012-13 budget and property tax rate, which means the city has to hold another public hearing to correct the errors.

If they aren't corrected, the city could lose a portion of its tax revenue this fiscal year. City commissioners have scheduled a special meeting Monday to avoid any penalty.

City Manager Fred Hilliard said the mistake doesn't change the amount residents will pay in property taxes.

"This was an oversight, but it doesn't change anything," he said. "We neglected to include some information in our reporting, and that will be corrected."

Specifically, the city's ordinance approving the tax rate didn't cite the percentage increase in the proposed tax rate from last year's rate. Also, the legal advertisement publishing the proposed tax rate and budget didn't include the amount of reserve money in the city's enterprise funds.

Finally, the city failed to submit documentation that the City Commission adopted the budget and millage rate for 2012-13 by the state's deadline.

Hilliard said that duty fell to the deputy city clerk, who was terminated last month before the paperwork was due to the state.

"It fell through the cracks," Hilliard said. "That was another oversight."

City Attorney Tom Cloud said the state could impose penalties against the city for these issues, but he anticipated those would be waived because Fort Meade doesn't have a history of problems like this.

In September, the city adopted a 68.5 percent increase in property taxes, taking the rate from $3.35 to $5.65 for every $1,000 in assessed property value. The increase will generate an estimated $485,000, or an additional $175,000 for the city.

"This is the first time we've had a tax increase in a while," Hilliard said. "We followed the form we've used in the past when we put this together, and when you have increase, you have to include more information. We didn't do that.

"When we filed the forms late, and with the size of our tax increase, the state looked at it a little more closely," he said.

The state Department of Revenue did not responded to Ledger calls and emails on Wednesday.

Commissioners seemed to take the issue in stride at Tuesday night's meetings.

"We have no choice," said Commissioner Jim Watts. "Either do this or lose your ad valorem (property) tax money."

The City Commission will hold a public hearing Monday at 5:30 p.m.



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