To the Taxpayers of Salisbury,
As Mayor, I believe the public deserves a clear understanding of how their city’s finances work.
Most people, understandably, do not spend their time studying municipal budgets — but the details matter. They matter because they determine whether we can responsibly fund public safety, maintain our neighborhoods, and invest in the long-term health of Salisbury. And they matter because you deserve confidence that the people managing your tax dollars are charting a sustainable course.
When I took office, I inherited a budget shaped by the prior administration’s decisions: three tax increases over five years, the highest municipal tax rate in Wicomico County, and an operating cost trajectory that was already difficult to sustain. The final component was the creation of a union that, while presented as a way to protect wages for all employees, quickly extended the City beyond its ability to meet expectations.
To keep this explanation as straightforward as possible, here is how municipal finances work:
– Operating budgets — salaries, health insurance, utilities, day-to-day services — must be paid from operating revenues, such as property taxes and fees.
– Capital projects — parks, playgrounds, community centers — are funded by unassigned fund balance (“savings”) or by bond debt, which must then be repaid from operating revenues.
– Every municipality is required to spend less than it takes in. Savings are for capital needs and occasional emergencies — not for recurring operating costs.
Here is the challenge we face today:
Because the union negotiated wage increases that grew faster than the City’s operating revenues, Salisbury is currently projected to take $3.3 million from our savings — just to pay recurring FY26 operating expenses. That is the opposite of sustainable budgeting. Our savings have grown only because of one-time revenues, not because our operations produced surpluses.
For the upcoming fiscal year, our projected revenue increase is $1.7 million. Before we even consider wages, the budget has been impacted by:
– $1 million increase in health insurance
– $200K increase in utilities
– $250K in other unavoidable cost increases like fuel costs, liability insurance, etc.
That is $1.45 million in new expenses — costs we could absorb under normal circumstances.
Prior union agreements created ongoing wage obligations. The Administration’s proposed FY27 one-step increase to employee wages comes at a cost of $750K. Raises granted by the Administration to current employees from career ladder and merit increases account for another $120K. Meeting the union’s current expectations would require withdrawing an additional $3+ million from savings this year alone, with no clear end in sight.
No responsible financial professional — whether a banker, CPA, auditor, or municipal finance officer — would advise using savings to pay for permanent operating costs. It is simply unsustainable.
My responsibility as Mayor is to protect the long-term financial health of Salisbury, ensure we can fund public safety, and preserve the City’s ability to invest in the assets that strengthen our community. Dissolving the union is not a political decision, nor is it an emotional one. It is a decision grounded in math, law, and the obligation to keep Salisbury on stable financial footing.
I remain committed to fair wages, competitive benefits, and a strong, professional workforce. I cannot stand by and allow Salisbury to drift into a structural deficit that jeopardizes our future. To continue as-is would be operating in poor faith past my Administration and the Council’s fiduciary responsibilities.
Thank you for your attention to this important matter and for your continued trust in the work we are doing to secure Salisbury’s long-term stability.
Sincerely,
Randy Taylor
Mayor, City of Salisbury