← All documents

2025-04-03-budget-work-session-minutes.pdf

Minutes April 3, 2025 · 3 page(s)

View original PDF ↗ Meeting

Full extracted text

The document's complete text, exactly as extracted — not a summary. Use “Summarize this document” above for the short version.

Town Council of Centreville
Budget Work Session
April 3, 2025
5:30 p.m.
M I N U T E S
The April 3, 2025 Town Council budget work session was called to order at 5:30 p.m. by Ashley H. Kaiser,
President, at the Liberty Building, 107 N. Liberty Street, 2nd floor meeting room. The following members and
staff were present: Ashley H. Kaiser, President; Jeffrey D. Kiel, Vice President; Daniel B. Worth, Jim A.
Beauchamp, and Sandra L. Huffer, Members; Carolyn Brinkley, Town Manager; Karen Luffman, Finance
Officer; Chief Robert Hobbs, Centreville Police Department; Krystel Ebaugh, Human Resources Manager;
Ashely Russ, Finance Specialist; Carol D’Agostino, Main Street Manager; and Gaye Adams, Town Clerk.
Citizens Forum
No citizen comments.
• Ms. Luffman presented a memo regarding the changes in the FY2026 budget that were made at the last
Budget Work Session:
• Department Budgets
o A10 – Legislative Budget
▪ Added $1800 to Conventions and Meetings for MML
Operating Budget
▪ Ms. Luffman stated the only changes are to the Health Insurance lines in each department and the
Health Deductible Reimbursement Health Insurance, as the final numbers have been updated.
▪ Ms. Ebaugh stated health insurance costs went up 2.8%, but due to the rebate Cigna gave the Town,
the actual cost went down.
▪ The final change in the Operating budget is the adjusted cost allocation transfer from the General
Fund for adjustments to health insurance numbers.
▪ Mr. Beauchamp added that the health insurance numbers are a cost reduction.
Capital Budget
▪ Ms. Luffman added a capital sheet to display projects that are grant-funded or seeking grant funding.
▪ Reprinted the 5-year budget to reflect the fixed formulas that were not working properly.
General Fund/Enterprise Fund Summary Sheets
▪ The transfer to fund balance in the General Fund is in the positive $117,000, inclusive of all changes.
▪ The transfer to fund balance in the Enterprise Fund is in the positive $29,629, inclusive of all the
changes.
Public Utility Tax
▪ Currently $13.00 per 100.00 dollars of assessed value on the four companies we charge. The Council
gave consensus that they are comfortable with those charges.
Property Tax Rate
▪ The current property tax rate is $0.535 per $100.00 of assessed value.
▪ Ms. Kaiser stated she did not feel the Town could decrease the tax rate.
▪ Ms. Luffman asked the Council if they agree with the 5% allocation transfer from the General to the
Enterprise fund to cover the cost of those doing work in the General fund but doing Enterprise Fund
work.
▪ Mrs. Huffer asked if this transfer allocation was a revenue charge. Mr. Beauchamp clarified that the
Enterprise Fund is being charged for staff time that is in the General Fund.
▪ Ms. Huffer stated that while working on the budget, the focus is on operations costs, but the balance
sheets need to be reviewed as well. Currently, the cash between General Fund and Enterprise Fund is
$7.6 million, and the total debt is $9.6 million.
Pa g e 1 | 3

▪ Ms. Huffer also stated the Enterprise Fund had a loss in FY25 and did not cover expenses. The FY26
Enterprise Fund shows a transfer of $30,000. Ms. Luffman clarified that the transfer number is correct if
the Town takes in all the current expected revenue and if expenses do not change. Ms. Huffer feels that,
due to the current economy, a reduction in taxes is not prudent.
▪ Ms. Kaiser stated that the money from wastewater and sewer allocations was used previously to balance
the Enterprise Fund, which the Town no longer does. In theory, the Enterprise Fund should be growing,
especially considering the upcoming wastewater treatment plant upgrade.
▪ Ms. Luffman also stated that the Town also has streets that need improvement. The ARPA funds
received has helped to pay for some infrastructure expenses but the Town will no longer have these
funds
▪ Mr. Worth asked if taxes are not reduced, what is the fund balance. Ms. Luffman stated that between the
two funds, it is a total of $7.9 million; the General Fund is $2.7 million, and Enterprise is $4.9 million.
▪ Mr. Worth asked if the plan is to use that balance for capital expenses and Ms. Kaiser stated yes.
▪ Mr. Beauchamp stated that perhaps the Town stay at zero percent for the cost transfer again, and the
Enterprise Fund can accrue that should it be needed for a capital expense.
▪ Ms. Huffer stated that reducing it to zero puts the general fund in the red $2,000.
▪ Mr. Beauchamp again stated that the constant yield calculation is $0.522. The difference between the
constant yield rate and the Town’s current rate of $0.535 covers the cost increase for the two seasonal
employees in the Streets department, increasing time for Code Enforcement Officer and a new Zoning
Administrator, all of which provide services to the citizens.
▪ Mr. Beachamp would like to see if the Town could do one of the two things: reduce taxes by a penny,
which reduces the General Fund surplus by $40,000 and gets the Town closer to the constant yield rate,
or take the cost transfer to zero, which increases reserves for the Enterprise Fund, and the Town finds a
way to save $2,019 in the current budget.
▪ Ms. Kaiser is more in favor of the zero-cost transfer.
▪ Ms. Brinkley stated the Town could find a way to save $2019 in A92.
▪ Mr. Beauchamp moved to approve the changes discussed. Mr. Kiel seconded the motion, which passed
unanimously.
▪ Ms. Luffman clarified that $2019 dollars will be removed from A92-7440 contract services, remove the
5% transfer fund to zero, and that there will be a balanced budget for the General Fund and a fund
increase for the Enterprise Fund.
▪ No need for the April 10th work session.
Main Street
▪ Ms. D’Agostino explained the Maryland Crafted event budget and that she is keeping the revenue
projection conservative.
▪ Main Street sponsorship has been $5850 but will now include at least two new sponsors.
▪ Vendor fees increased a bit as did gross ticket costs.
▪ Ms. D’Agostino reported that the billboard is sponsored by Queen Anne’s County Tourism; they cover
the monthly fee and Main Street pays for the art.
▪ The emcee cost increased to $125 due to the VIP experience.
▪ The advertising will increase due to the new date and new name.
▪ The increase in revenue will be the tasting passes.
▪ $3,100 advertising costs include: a digital What’s Up media campaign, The Washington Blade, WCEI
advertising spots, Video/Commercial production, APG display ad, and boosted Facebook posts.
▪ Ms. Huffer asked if The Spy is used, and Ms. D’Agostino said yes.
▪ Mr. Beauchamp asked if Main Street focuses Facebook ads in the Delaware area too, and Ms.
D’Agostino said yes.
▪ Ms. Kaiser thanked Ms. D’Agostino for the very thorough documentation and explanation of the event.
Pa g e 2 | 3

Citizens Forum
No citizens were present to offer comments.
Motion to Adjourn
Ms. Kaiser motioned to adjourn the April 3, 2025, Town Council budget work session. The meeting adjourned
at 6:02 p.m.
Respectfully submitted,
Gaye Adams
Town Clerk
Action Items:
▪ Consensus was given to keep the Public Utility Rate at $13.00.
▪ Approved the proposed amendments for the FY26 budget.
▪ Remove $2019.00 from the budget to balance the General Fund
▪ Remove the 5% cost transfer from the General Fund to Enterprise Fund.
Pa g e 3 | 3