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The $91.96 million proposed operating budget presented Tuesday includes proposals to increase property taxes, remove the municipal tax differential, increase local income tax and eliminate tax rebates offered to municipalities.

The council will consider these proposals through the remainder of the budget process, which concludes May 20.

The balanced draft budget comes after months of work by county staff to eliminate an estimated $6.2 million operating budget deficit, which the county has said was brought on by cost shifts from the state.

“These are painful decisions,â€� County Manager Jerry Jones said in an interview with ¾ÅÉ«ÊÓƵ. “But at the end of the day, given the climate and what’s being pushed down from the state for us to absorb, sadly it’s one of those things we have to do.â€�

GETTING INTO THE NUMBERS

In the draft operating budget, the county is proposing an increase of the real property tax by 3 cents so county residents would pay a rate of $1.03 per $100 of assessed valuation of property.

The proposal to remove the tax differential, or lower property tax rate, for municipalities would mean Cambridge and Hurlock residents would have to pay the full tax rate of $1.03 per $100 of assessed valuation of property.

In the current fiscal year, Cambridge residents pay the county $0.9267 per $100 of assessed valuation of property and Hurlock residents pay $0.9179 per $100 of assessed value.

On properties with a semi-annual tax payment option, the proposal would add a service charge based on a rate of 0.02% applied to unpaid real property taxes due in December.

With the proposed property tax changes to the budget, the county expects to bring in an additional $2.15 million.

The proposed budget would raise the county’s income tax rate from 3.2% to 3.3%, generating $600,000 more in revenue.

In another effort to increase revenue, the county voted April 15 to increase its 911 fee to $4.25 per month. This is the second time the rate has been raised this year.

In early March, the council passed a resolution to increase the county fee that residents pay on their cell phone lines from $1.50 to $2 per month. Council Vice President Mike Detmer said in March that he introduced the legislation to increase the fee to $4.25 as a potential way to reduce a budget deficit.

To alleviate the tax and fee increases’ impact on seniors, the county is considering expanding its senior tax credit, which offers a 5% deduction on the county tax bill for those who are at least 70 years old and receive the Homeowners’ Property Tax Credit. If passed, the expansion would increase that deduction to 10% and expand eligibility to Homeowners’ Property Tax Credit recipients who are at least 67 years old.

Proposed expenditure increases include 3% salary increases for airport, solid waste, water and wastewater, courthouse maintenance, courthouse security and Eastern Shore Innovation Center personnel and an increase in spending on the county’s 14 volunteer fire companies. The proposed $35,000 total increase to fire companies would add to the county’s $1.22 million expenditure on fire companies and advanced life support services.

Proposed cuts to expenditures include the delaying or eliminating funding to nonprofits that request money from the county.

According to the draft grants budget, the county expects to receive a total of $9.78 million in state and federal grants.

At the end of the council meeting April 15, Detmer encouraged residents to come to council meetings or reach out to council members and make their voices and concerns about the budget heard. He said he is available to discuss the budget or just listen.

“It’s your budget too,� he said.

The first public budget hearing, as well as a meeting with municipalities, will be held May 6.