2025-03-20-budget-work-session-minutes.pdf

Town Council of Centreville Budget Work Session March 20,2025 5:30 p.m.

M I N U T E S

The March 20, 2025 Town Council budget work session was called to order at 5:30 p.m. by Jeffrey D. Kiel, Vice 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; Clifford “Kip” Matthews, Director Public Works;

Gary Phillips, Operations Manager; Krystel Ebaugh, Human Resources Manager; Tonya Wright, Finance Specialist; Carol D’Agostino, Main Street Manager; and Gaye Adams, Town Clerk.

Citizens Forum No citizens were present to offer comments.

• Ms. Luffman presented the memo regarding the changes in the FY2026 budget that were made at the last

Budget Work Session. In the General Fund Revenue, the only thing that changed was adding $30,000 in Medical Cannabis sales tax distribution.

• Ms. Luffman went through all the budget changes at the last meeting first then went back through

departments individually for discussion if needed.

• Department Budgets

o A10 – Legislative Budget

▪ At the last meeting Ms. Kaiser asked about the donation portion regarding the Queen Anne’s County

Arts Council. That donation was made May 8, 2024 and posted in the previous fiscal year.

o A70 – Planning Commission

▪ No Changes

o A81-105 N. Liberty Building

▪ No Changes

o A92- Administration

▪ Added the Code Enforcement Officer half time. Ms. Ebaugh also did the calculations for full time if

needed.

▪ Ms. Kaiser is comfortable doing part-time code enforcement with a reevaluation in 6 months.

▪ Code enforcement education is needed within the town with residents and businesses.

▪ Ms. Kaiser asked about the addition of a zoning administrator and a part-time code enforcement

officer, how did it affect the overall budget?

▪ Mr. Beachamp responded to Ms. Kaiser that the Town has a $90,000 surplus in the general fund,

$40,000 surplus enterprise fund with those additions.

▪ Mr. Beauchamp asked, what do other towns do as far as a code enforcement officer?

▪ Ms. Brinkley stated that most towns do not have their own full-time code enforcement officer. Some

towns share one person, and some use the Queen Anne’s County code enforcement for their towns.

▪ Mr. Worth requested due to the surplus; the Town should reduce the tax rate by a $.01.

▪ Ms. Luffman re-calculated the reduction in the general fund based on a tax reduction and the

difference is $73,000, not the previous statement of $120,000. That $120,000 was the 5% cost for allocation transfer.

▪ The actual cost of a $.01 tax reduction is $73,157.83 in the FY26 budget. The budget would still be

in the black, it just would not allow for any emergencies or budget overages.

▪ Ms. Huffer stated her hesitation with the tax decrease is based on the unknown. Not a lot of wiggle

room, and future budgets will be more challenging. With the new wastewater treatment plant and its cost coupled with the state’s current budget downfall gives her pause to the reduction.

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▪ Ms. Kaiser stated a tax cut is the last big decision for the next meeting.

▪ Ms. Luffman will leave the budget as is and the Council will discuss the tax rate at the April 3, 2025

meeting.

▪ Ms. Huffer thanked Ms. Luffman for bringing Council a budget that was above breakeven and then

asked what her concerns are, as the budget stands now, if the tax rate was reduced?

▪ Ms. Luffman stated Police and Streets are the two departments that she likes having the cushion for.

▪ Mr. Matthews clarified that repaving has not been done on the streets that need it, and the paving

schedule has not yet been presented.

▪ Mr. Matthews is thankful for the congressional earmark of $2 million to pave Tilghman Avenue and

Belvedere Avenue.

▪ Ms. Luffman stated when the tax rate is reduced, the loss of revenue has a long reach over an

extended amount of time.

▪ Other updates are the health insurance being updated at a 6% cost. Ms. Ebaugh should have the final

numbers at the next meeting.

▪ Mr. Beauchamp complimented Ms. Luffman on a sound budget with little changes and great

reporting.

o B10- Police Department

▪ Once again, 5000.00 was added in the Special Events line item due to the increased requests to have

a police presence at events.

▪ Updated the health insurance cost using 6%.

o C11- Streets

▪ Salary adjustment due to typo.

▪ Updated the health insurance cost to 6%.

▪ Allocation from cost transfer to enterprise fund changed due to benefits changing.

▪ Salary includes PT seasonal positions, the Director, as well as the Wastewater Supervisor which are

split between water/sewer.

o C21 - Water Department

• Adjusted typo in salary, updated health insurance costs from 10% to 6% based on information

received from actuaries and adjusted the allocation of costs in accordance with benefit changes.

o C22- Landfill Wastewater Removal

▪ No changes

o C24- Water Department

▪ Adjusted typo in salary, updated health insurance costs from 10% to 6% based on information

received from actuaries and adjusted the allocation of costs in accordance with benefit changes.

o C25- Reuse Farm

▪ No changes

o D10- Parks Department

▪ No changes

o H40- Main Street

▪ At the last meeting, the revenue section was accidentally omitted and is now listed for review.

▪ Ms. D’Agostino will email copies of the events breakdown to the Council, and this will be

discussed at the April 3, 2025 meeting.

▪ She stated that events are a fraction of what Main Street does, the focus is to the Town

businesses.

▪ The past fiscal year Main Street received $65,005.60 in revenue and spent $58, 857.55.

▪ Main Street is always looking for ways to be more efficient and bring more business to the

Town.

▪ Ms. Kaiser is looking forward to discussing the event breakdown details at the April 3, 2025

meeting.

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▪ Ms. Luffman asked for a consensus by the Council for a full-time zoning administrator, 20-hour

code enforcement officer, and two seasonal employees for the Department of Public Works. The Town Council gave consensus.

▪ Ms. Brinkley stated that when the zoning administrator is hired, Ms. Ebaugh will relocate to the

Wharf Building. She asked the Council for consensus to begin construction of Ms. Ebaugh’s office. Ms. Luffman stated this expense could be covered in the FY25 budget. By consensus, the Town Council agreed.

Capital Budget

▪ Ms. Luffman reported the only change was adding the Cemetery software implementation costs of

$16,000.

▪ Mr. Beauchamp asked about the interest rate for the bonds.

▪ The interest rate for the 2016 Bond is 2.54%

▪ The interest rate for 2017 Bond A4 is 3.61%

▪ The interest rate for 2017 Bond A3 is 3.14%

▪ The interest rate for 2017 Bond A2 is 2.23%

General Fund/Enterprise Fund Summary Sheets

▪ Transfer to fund balance is $91,657

▪ Transfer to fund balance in $47,768

FY2026 Operating Budget-Proposed Revenues General Fund

▪ Again, the change here is the addition of a full year of the Cannabis Sales Tax Distribution of $30,000.

o Enterprise Fund Revenues

▪ No changes

o Sewer Enterprise Fund

▪ As per the other corrections the only change here was the adjusted typo in the salary line and the

updated health insurance from 10% to 6%.

▪ Allocation from cost transfer was adjusted as well due to those changes.

o Water Enterprise Fund

▪ The changes are the same as the Sewer Enterprise Fund as this department is split 50/50.

o Farm Enterprise Fund

▪ No changes

o Ms. Huffer asked that on the summary sheets it would be great to include all the ways the Town pays for projects. More transparency and disclosure are best, as well as proposed timelines for future projects.

o Ms. Luffman agreed and will add another Capital sheet that shows the fund distribution.

Grants o 2026 Grants Request for Approval

▪ Ms. Wright presented the Council with a list of grants the Town of Centreville would like to apply

for this FY26.

▪ The Council came to a consensus that the grants are appropriate to apply for.

Health Holiday Dates Ms. Ebaugh presented the Council with the Town staff’s overall pick for a Health Holiday, and it was the staff’s consensus that they would like the break around the holidays (Nov-Dec).

The Council gave consensus for the Town to have those months as the Health Holiday.

Citizens Forum No citizens were present to offer comments.

Pa g e 3 | 4 Motion to Adjourn Ms. Kaiser motioned to adjourn the March 20, 2025 Town Council budget work session. The meeting adjourned at 6:26 p.m.

Respectfully submitted, Gaye Adams Town Clerk Action Items:

▪ Consensus was given by the Council to hire a full-time zoning administrator, 20-hour code

enforcement officer, and two seasonal employees for the Department of Public Works in the FY26 budget.

▪ Consensus was given by the Council to begin construction of Ms. Ebaugh’s office at the Wharf

Building.

▪ Consensus was given by the Council for the grants presented.

▪ Consensus was given by the Council for health holidays to be given around the holidays

(November-December).

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