City staff warn of potential $1.8 million exposure from commercial tax‑abatement appeals; reserves discussed

City Treasurer Miss Gayman and City Manager Mr. Summeron briefed the council on a set of commercial property tax abatement appeals that the state has registered against more than 60 accounts in Greenbelt. Staff estimated that, if every appeal were granted, the revenue loss to the city could exceed $1.8 million. That exposure exceeds the city’s typical annual abatement allowance, and staff said they would rely on the council’s reserve policy and existing cash reserves to absorb any near‑term hit.

Why this matters: property tax abatements affect the city’s principal revenue stream and could force mid‑year adjustments or use of reserve funds if multiple appeals are awarded in a short time frame.

Treasurer Gayman told council that abatement awards typically take about 18 months to resolve; therefore, she did not expect the entire potential liability to hit the fiscal year immediately. The city currently maintains roughly $2.1 million in combined reserves (budget stabilization, rainy day and capital), which staff said is a planned buffer for events such as this. Council asked staff to continue monthly revenue monitoring, and staff said they will notify council promptly if abatement awards move forward in a timeline that would affect FY2026.