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2025-03-13-budget-work-session-minutes.pdf

Minutes March 13, 2025 · 5 page(s)

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Town Council of Centreville
Budget Work Session
March 13, 2025
5:30 p.m.
M I N U T E S
The March 13, 2025 Town Council budget work session was called to order at 5:30 p.m. by President Ashley
Kaiser at the Vincit Building, 110 Vincit St. The following members and staff were present: Ashley H. Kaiser,
President; Jeffrey D. Kiel, Vice President, Daniel B. Worth, Jim Beauchamp, and Sandra L. Huffer, Members;
Carolyn Brinkley, Town Manager; Karen Luffman, Finance Officer; Chief Robert Hobbs, Centreville Police
Department; Gary Phillips, Operations Manager; Clifford “Kip” Matthews, Director Public Works, Krystel
Ebaugh, Human Resources Manager; Ashley Russ, Finance Specialist; Jacki Payne, Administrative Assistant;
Tonya Wright, Finance Specialist and Gaye Adams, Town Clerk.
Citizens Forum
No citizens were present to offer comments.
Discussion
• Property tax rate is .535 of $100 in assessed value.
• Property tax revenue to $3,913,944.
• The budget currently has a transfer to fund balance of $123,146.
• There are a few updates not in the budget due to not having final figures.
• Property tax revenue was up by 7% yet property values went up 20%.
• Council member Worth recommended a tax rate decrease to residents.
• Ms. Luffman stated that for every .01 cut the cost is roughly $120,000
• Public utility tax rate is $13.00 for every $100 of assessed value.
• Ms. Kaiser would like to leave the public utility tax rate number alone.
• Mr. Beauchamp asked if the cable companies will be added to the revenue group and Ms. Luffman stated
once the state determines the assessable value, then yes. The State will update her in March.
• Water and Sewer rates are based on the 5% increase voted on by Ordinance 06-2020.
• Department Budgets
o A10-Legislative Budget
▪ Increased by $1,500 due to an increase in cost for the Volunteer Dinner.
▪ Ms. Kaiser asked if the convention meeting line is funded enough at $2000 and Ms. Brinkley
stated it is.
▪ The dues and subscription line for $5700 is all Maryland Municipal League.
▪ The donations line may be missing the Porch Party donation, Ms. Russ will investigate.
o A70- Planning Commission
▪ Increase in education and training $1400 for Planning Commission members to attend state
conferences.
▪ Decrease in the contract services line due to the potential of hiring a full-time Zoning
Administrator.
▪ Mr. Worth asked if that replaces everything our current contractor does, and Ms. Brinkley stated
yes.
o A81-105 N. Liberty Building
▪ The only change is an estimated Liability Insurance increase.
o A92- Administration
▪ Increase in Special Events line by $39,000 to provide Fireworks for the 250th Anniversary of our
Country.
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▪ Ms. Kaiser would like to either abandon First Friday’s or make it a Town event.
▪ Ms. Brinkley will talk to the County regarding a donation of funds for fireworks.
▪ Ms. Kaiser would like to meet with Ms. D’Agostino to discuss First Fridays as a Town event.
▪ Other donations for special events could come from the Legacy Foundation as well as YMCA.
▪ Increase in Salaries includes COLA, merit increases and the addition of a summer intern and a
Zoning Administrator.
▪ The salary line number is not inclusive of the Part Time Code Enforcement Officer.
▪ Ms. Ebaugh will calculate a Full Time and a Part Time Code Enforcement Officer.
▪ Ms. Huffer wants to educate business owners and residents about our code before enforcement.
▪ Contract Services professional fees increase is to manage our IT services as well as digitize our
Cemetery.
▪ The only other increases were health insurance at a flat 10% increase and the FICA and Pension
increase is based on the State.
▪ The grant line is lower due to Ms. Wright preparing most of the Town’s grants.
▪ There is a 5% cost transfer from the General Fund to the Enterprise Fund.
o B10- Police Department
▪ Increase in K9 expenses to add another K9 unit.
▪ Increase in salary and overtime.
▪ Increase in employer expenses is to break out the cost of background checks and drug testing by
department.
▪ The increase in the Software line item is for the IAPO and Lexipol software.
▪ Convention/Meetings is increased to allow the Chief and Lt. to attend MML.
▪ Ms. Kaiser asked why special events was over budget. Chief Hobbs stated that it may be due to the
increase for police presence requests at events. Ms. Kaiser stated that the number may need to
increase for the FY26 Budget for anticipated need.
▪ Ms. Luffman will get an account breakdown for Chief Hobbs of special events to discuss at the
next session.
▪ Mr. Worth asked what FAMLI is. Ms. Ebaugh stated it is the State’s Family Medical Leave, and is
shown currently as 100% Town funded.
o B22- Goodwill Fire Department
▪ Zero increases
o C11- Street Department
▪ Salary increase to add a part time seasonal employee.
▪ Mr. Matthews and Mr. Gannon’s salary is split between Streets and Water, so that split is now
being shown.
▪ Increase in Equipment rentals.
▪ Highway User Revenue (HUR) increases based on what is received from the State.
▪ Sidewalk revolving fund per council’s request for $50,000.
▪ Increase in telephone/internet based on trend.
▪ Increase in vehicle repair and maintenance based on cost increases.
▪ Ms. Kaiser asked if the repair and maintenance numbers should be higher?
▪ Mr. Matthews believes it is fine. Less repairs are taking place, but the costs for repairs are higher.
The current number should be enough.
▪ Ms. Huffer asked about the tree line budget number. Mr. Matthews informed the Council this is to
maintain, trim, or cut down trees.
▪ Ms. Huffer stated this line is like the snow removal line, hard to guess and budget.
o C22- Landfill Waster Removal
▪ Increase in contract costs.
o D10- Parks Department.
▪ The overall increase of $7500 is due to street decorations.
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▪ Mr. Beauchamp asked if the Council approved a large expense for decorations outside of last
year’s budget session. Ms. Luffman stated yes, it was a one-time capital expense and would not
show on this operating budget.
▪ Ms. Luffman will get the cost breakdown of the holiday decorations for the next meeting.
▪ The increase in operating supplies is to do shrubs and greenery at the park and memorial.
▪ The increase in contract services is to replace the broken pump out station. Looking into a grant to
cover the cost of a new one, if the Town receives a grant the number will be reduced.
▪ Mr. Beauchamp requested if the Town is short elsewhere in the budget, then make the pump out
station a grant only expense.
▪ Increase in phragmites removal costs and the Town may receive a grant from the County. This is
an ongoing project.
o H40 Centreville Main Street.
▪ Ms. Luffman stated that there are no changes.
▪ Ms. Kaiser struggles with the Main Street budget due to the revenue that is brought in for events.
▪ Ms. Kaiser welcomed the detailed information and stated she would like to promote more of what
Ms. D’Agostino is doing.
▪ Ms. Kaiser wants to see a few years of breakdown of Main Street revenues.
o H60- Cemetery Budget
▪ The only increase is the Cemetery Advisory Committee due to interest earned the previous year
o H90- Watershed
▪ There are no increases.
o Enterprise Fund Revenue
▪ Ms. Luffman briefly mentioned that this is inclusive of the approved 5% utility bill increase that
the Council approved a few years ago, farm revenue and investment earnings.
▪ Increase due to 62 vacant lots.
▪ 25% increase in sewer and water for the 17 allocations on the commercial property on Laser Dr. at
the business park.
o C21- Sewer
▪ Increased the salaries line due to moving the Director and the Superintendent and splitting between
Water/Sewer budgets.
▪ 5% increase in contract costs to run the plant, Neptune annual portal cost, ESRI software licensing
cost, and Brightly Design cost.
▪ The design cost for the new Wastewater Treatment Plant is $2,300,000 and is open for discussion
on how to fund it or questions regarding that cost.
o C24- Water Department
▪ Increase again in the salary line due to moving the Director and the Superintendent and splitting
between Water/Sewer.
▪ The increase in contract services is the same as C21, 5% cost increase to the contract to run the
plant.
o C25-Reuse Farm
▪ There are no increases.
▪ Mr. Matthews clarified that the revenue side may reduce a little bit, as the Town is looking at
expanding the lagoon and in doing so it will reduce the tillable acres to rent.
General Fund Revenues
▪ Property tax was based on the current tax rate and the assessed value.
▪ Ms. Luffmen stated the Public Utility Tax (PUT) was calculated based on the current assessed
value and the current PUT rate.
▪ Mr. Beauchamp asked if the constant yield report only showed a 7% increase and Ms. Luffman
stated yes.
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▪ Ms. Luffman stated she would send the accompanying documents to Mr. Beauchamp of the
constant yield.
▪ Local income tax just went slightly higher.
▪ Intergovernmental revenue increased by $55,000.
▪ Public Safety- Maryland State Police Protection (MSPP), $102,000 for the annual grant.
▪ Mr. Beauchamp discussed the state’s budget problem and federal grant pauses could create issues
for our budget.
▪ Ms. Kaiser stated congressional earmark funding is probably okay, but no earmarks will be
included going forward.
▪ Ms. Kaiser stated her main concern from the state and federal level is income tax. Reality is the
town has a lot of people who are in federal jobs or jobs very close to being federal jobs, like
contractors. What happens on the federal level creates some budget volatility.
▪ Licenses and Permits decreased it $7500 based on trend.
▪ The total for “Other Services” increased by $11,700 to account for the 3% landfill tipping fees.
▪ Miscellaneous Other Revenue decreased by $23,000, much of that is due to the speed monitoring
system being down a camera.
▪ Investment Earnings are budgeted conservatively due to the uncertainty of interest rate drops.
▪ Mr. Worth noted no revenue for the Cannabis Sales Tax. Ms. Luffman stated that she will add
$30,000 for that line for the next meeting.
▪ Total Bond Balance is $9,646 500.
▪ For the next meeting Ms. Luffman will add a row showing the interest for the bonds.
Capital/General Fund
o B10-Police Department
▪ 2 Patrol vehicles- $150,000. Mr. Keil asked if this cost is a fully outfitted vehicle and
Chief Hobbs said it was.
▪ 3 Portable radios - $21,000
o C11- Streets
▪ Brush Chipper Replacement- $60,000. Mr. Keil asked if this was for a replacement truck and Mr.
Matthews stated yes, it is.
▪ Utility Truck 4wd 1 ton with snowplow-80,000
▪ 24 ft enclosed trailer for $15,000
▪ Ms. Luffman concluded that the total for the Capital request for the General Fund is $326,000 and that it
is inclusive of the budget. Ms. Luffman did add a footnote to discuss the federal earmark funds for
Belvedere Avenue and Tilghman Avenue as the Towns match would be $400,000. She suggested the
use of HUR money, sidewalk funds, and interest earned in ARPA funds. She stated the Town has earned
almost $700,000 in ARPA Fund interest.
▪ Mr. Matthews explained the $2.4 million to fix those two streets is what is budgeted; however a final
cost will not be determined until it is put out to bid.
▪ Mr. Matthews feels confident that the earmark will cover those two streets.
▪ Mr. Beauchamp asked Mr. Matthews does DPW have a long-term capital budget plan for repairing
parking lots, and Mr. Matthews stated he does not.
▪ Mr. Beauchamp asked about the parking lot on the corner of Water and Liberty Streets as he would like
to see a buffer wall installed there.
▪ Mr. Worth would rather sell that lot. After a lengthy discussion, Ms. Luffman stated she would look into
the details of selling the lot and bring that to be discussed at the next meeting.
Enterprise Fund Requests
o C21 – Sewer – Wastewater Requests $70,000
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▪ Sewer Collection System Repairs $55,000
▪ Sewer Inspection Camera- $15,000
o C24- Water Requests $13,000
▪ Fire Hydrant replacement program – one per year. Costs have increased to $13,000 per hydrant.
o C25- Reuse Farm – Requests $32,000
Ms. Luffman stated the total for capital and operating requests for the Enterprise Fund is $115,000 and is
inclusive of the budget and keeping the Town in the black.
Health Surplus
▪ Mr. Ebaugh stated from the FY24 plan year the Town received a surplus of $96,072. Health
holidays were a suggestion to be used for these funds. She presented the following information:
After a lengthy discussion, the Council was in favor of a health holiday for hourly and salaried employees and
coming up with a way to fund the $1,232 shortfall. The Town will make a recommendation on health holiday
dates at the next budget work session.
Citizens Forum
No citizens were present to offer comments.
Motion to Adjourn
Ms. Kaiser motioned to adjourn the March 13, 2025 Town Council budget work session. The meeting adjourned
at 7:09 p.m.
Respectfully submitted,
Gaye Adams
Town Clerk
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