June 3: Budget, bonds, and federal bucks

Public's first look at proposed capital income; city seeks to issue new bonds

Next Monday, Hyattsville’s city council will hold a public meeting on the proposed fiscal year 2025 budget at 6:30 pm, along with their normal council meeting at 7 pm. Residents may make public comments at both meetings. The city released the draft budget ordinance for next year, which proposes $32.3 million in new general spending with only $27.5 million in new general revenue. Council will also consider authorizing a $17.5 million bond issue. The city’s American Rescue Plan Act (ARPA) consultant will likely recommend that the city cover FY 2024 salary costs with ARPA funds, based on the presentation in the agenda packet available online. Finally, the agenda includes almost $1 million in contract approvals and increases.

FY 2025 budget

Though council has repeatedly discussed the general fund budget over the past several months, this is the public’s first look at where the city says it will get the money for the proposed $13.5 million worth of capital spending. The capital income budget includes $2.5 million in bond proceeds and $11 million in “other sources — transfers in/out.” Both are significant changes from prior years, which ends June 30.

Residents currently have no way of knowing how much the city currently has in the capital projects fund, because Hyattsville has not publicly reported actual income and spending for FY 2022 or FY 2023. The city declined to provide this information to Route One Finance. The city does not have audits for these years, and unlike other cities, such as College Park and Bowie, did not report prior-year capital spending in the budget proposal released in March. 

As previously reported by Route One Finance, the city has spent the past decade promising to issue new bonds to cover capital spending, but has rarely followed through on issuing the debt. The most recent audit, which reports financial data that is almost three years old, revealed that the capital projects fund has a $17 million deficit. Hyattsville spent $2.2 million more than authorized on capital projects in FY 2021, according to the FY 2021 audit.