Baltimore's rising property values and a sharp increase in new real estate transactions are creating better-than-expected revenue for the city, according to projections provided to the City Council on Monday.
The city's budget office expects $32.4 million more in property tax revenue than originally predicted for the current fiscal 2015 year. But the city charter says a surplus from property tax revenue cannot be used to close deficits. Now officials will have to find another way to make up the projected $14.8 million deficit that's being created in part by police overtime spending and disappointing returns from the Horseshoe Casino.
Based on Caesar's estimates of a year ago, the city budgeted $14.6M for ground lease – 90% ($13.2M) in the GF for property tax relief and 10% ($1.4M) in a special fund for school construction. These are the only uses permitted under State law. We are projecting revenue of the minimum $8M payment ($7.2M to the GF).