town council budget work session minutes

Town Council of Centreville Budget Work Session April 23, 2020 7:00 p.m.

M I N U T E S

The April 23, 2020, Town Council budget work session was called to order at 7:13 p.m. by President Jeffrey C.

Morgan at the Liberty Building, 107 N. Liberty Street, 2nd floor meeting room. The following members and staff were present: Jeffrey C. Morgan, President; Timothy E. McCluskey, Vice President; Joshua E. Shonts, Member;

Steve Walls, Town Manager; Karen Luffman, Finance Officer; Kenneth Rhodes, Chief of Police; George Jamar, Public Works Operations Manager; Krystel Ebaugh, Human Resources Manager; and Carolyn Brinkley, Town Clerk.

Discussion  FY21 Operating Budget o Ms. Luffman discussed the information in the Council’s packet which shows the budget with a 15% allocation of costs and another showing 20% allocation of costs. She stated that items have been broken out as Council requested showing required increases in costs as well as, career development.

 Water/Sewer User Fees o Ms. Luffman reviewed possible scenarios for an increase in user fees. At this current time, the revenue collected from user fees do not cover the cost of water and wastewater operations.

o There was discussion regarding a 25% increase with a 20% cost allocation. This would be in addition to the yearly 4% increase in user fees.

o Mr. Shonts stated that the Council needs to determine a number and “rip the band-aid off” in order to cover the costs of the Enterprise Fund.

o Mr. McCluskey suggested a 36.5% increase which would allow the Enterprise Fund to break-even. Mr.

Shonts agreed. Mr. Walls stated that 36.5% does not cover any capital expenditures.

o After some discussion and by consensus, the Council agreed on a 40% increase in Fiscal Year 2021 and then the annual 4% increase after. They also agreed to increase the vacant lot fee to $40.00 per quarter.

o Mr. McCluskey reported that there will be a constant yield and budget hearing held on May 21st.

o With the increase in user fees, the Council asked Ms. Luffman to draft the budget with a 20% allocation of costs.

 Public Utility Tax o Mr. McCluskey discussed an increase in the public utility tax. He stated that every $1.00 of public utility tax raises revenues by $62,881. The current public utility tax is $3.11, which results in $195,562.09 in revenues. He suggested raising this tax to $13.00 which, would result in an increase in revenues of $817,462.10.

o After some discussion, and by consensus, the Town Council chose to increase the public utility tax to $7.00.

o By consensus, the Council agreed to take the difference between the current $3.11 rate and the proposed $7.00 rate and placing 75% back into the permanent fund and 25% into the general fund.

Motion to Adjourn Mr. McCluskey made a motion to go into closed session. Mr. Shonts seconded the motion, which passed unanimously at 7:49 p.m.

Respectfully submitted, Carolyn M. Brinkley Town Clerk 2020-04-23 TC Approved Budget WS Minutes.doc