town council budget work session minutes

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Town Council of Centreville
Budget Work Session
April 8, 2021
6:00 p.m.
M I N U T E S
The April 8, 2021, Town Council budget work session was called to order at 6:00 p.m. by President Timothy E.
McCluskey at the Vincit Building, 110 Vincit Street, Planning & Zoning meeting room. The following members
and staff were present: Timothy E. McCluskey, President; Steven K. Kline, Vice President; Robert R. Hardy, Jr.,
Jeffrey D. Kiel, and Shelby C. Anania, Members; Steve Walls, Town Manager; Karen Luffman, Finance Officer;
Clifford “Kip” Matthews, Director of Public Works; Chief Joe Saboury, Centreville Police Department; Chelsey
Townsend, Administrative Assistant, Centreville Police Department; and Carolyn Brinkley, Town Clerk.
Citizens Forum
No citizens offered comments.
Discussion
 Public Utility Tax Rates
o Mr. McCluskey stated that he previously recommended the public utility tax be raised to $13 per $100.
o Mr. Kline did additional research and stated Centreville is charging much more than other municipalities
across the state.
o After some discussion, Mr. Kline stated he was not in favor of raising the public utility tax to $13.00. Mr.
Hardy, Ms. Anania, and Mr. Kiel are in agreement of raising the rate to $13.00.
o Mr. McCluskey made a motion to raise the public utility tax to $13 per $100 and to split revenue by 50%
into the general fund and 50% into the permanent fund. Mr. Kiel seconded the motion. The motion passed
with Mr. McCluskey, Mr. Kiel, Ms. Anania, and Mr. Hardy voting yes and Mr. Kline voting no.
 Allocation of Cost
o The current allocation of cost is 20% in which the enterprise fund pays the general fund for staff time. The
current estimate for allocation of time spent on the enterprise fund is 35%. After some discussion, the
Town Council agreed to change the allocation of cost to 35%.
 Encumbrance Approval
o Ms. Luffman requested the Council’s consideration to encumber the costs for C11-Snow Removal; C11-
Uniform Clothing; D10-Park Advisory Board; and H60-Cemetery Advisory Committee.
o By consensus, the Town Council agreed to encumber C11-Snow Removal; C11-Uniform Clothing; D10-
Park Advisory Board; and H60-Cemetery Advisory Committee.
o Ms. Luffman reminded the Town Council that the end of service payout will also be encumbered each year.
 Capital Projects
o Mr. McCluskey stated that he was in favor of all requests, less the cost of the farm to be discussed later in
the evening.
o Mr. Kline requested additional information regarding the sewer collection repairs related to inflow &
infiltration (I&I) in the amount of $350,000 and the I&I study in the amount of $150,000. Mr. Matthews
stated that even though a previous study was done in 2005, completing another study could give the Town
other, more permanent options than what was reported in the previous study.
o Mr. Hardy discussed the eight (8) fire hydrants in the capital budget and was concerned with only replacing
one hydrant per year. Mr. Matthews stated that all of the fire hydrants have been replaced that did not fit
the fire truck connections. The remaining hydrants to be replaced no longer have parts available if they
break. Mr. Matthews stated that the cost included in the budget includes to cost for contractor installation.
He stated if staffing increases, in-house staff may be able to install which would reduce the cost to the
budget.
 Fiscal Recovery Act Funds
o The Town will receive $2,793,710 by the end of June for 50% of the Fiscal Recovery Act funds. Mr.
McCluskey suggested using $500,000 towards a broadband pilot project; $350,000 for project management
work over the next three (3) years - $100,000 per year and $50,000 for the final six (6) months; and $1.5
million to put towards the purchase of a farm and a $1 million loan which would be paid by the rent on the
farm.
2021-04-08 TC Approved Budget WS Minutes.doc

o Mr. Kline stated he was not in favor of funding a broadband project and does not feel this is the role of
Town government. He suggested bringing in fiber companies to talk about broadband with the Council.
o Mr. McCluskey stated that the Recovery Act funds are slated for water and sewer infrastructure and
broadband. Mr. Kline stated he is not in favor of broadband. He stated the Town has too many needs and
suggested not creating another need by taking on a broadband project.
o By consensus, the Town Council were in favor of $350,000 for project management contractor work.
o Mr. Hardy stated looking at the 2023 capital improvement project needs and are there any streets that are a
high priority.
o Mr. Kiel stated there are many streets in town that are in need of repair rather than broadband.
o By consensus, the Town Council agreed to not move forward with a broadband pilot project.
o By consensus, the Town Council agreed to purchasing a farm with $1.5 million cash from the Fiscal
Recovery Act funds for a farm and $1 million loan to be paid by the rent received.
o After some discussion, and by consensus, the Town Council requested that the remaining $923,710 be
carried over to FY23 to be spend on capital improvement projects. They requested Mr. Matthews present a
priority list for the next fiscal year for how these funds would be used.
o Mr. Hardy stated that the police department is in need of another building and are currently housed in an
inadequate facility. His funding priority is to get the design of the new Town building completed.
 Tax Differential
o Mr. Hardy stated that he thought about the tax differential discussion from the previous meeting and
although he voted against it, he has decided it is a good thing for the Town to collect the tax differential.
He strongly recommends communicating to the citizens and giving them the reasoning behind the
Council’s decision.
o After some discussion, Mr. Kline requested a new vote be taken on the tax differential. Mr. Kline made a
motion to retain the tax differential for FY2022. The motion passed with Mr. McCluskey, Mr. Kline, Mr.
Hardy, and Ms. Anania voting yes and Mr. Kiel abstaining.
 The next budget work session schedule for April 15th at 5:30 p.m. has been changed to 6:00 p.m. on April 15th.
 Mr. Kiel stated that the Town needs to set aside money for future road work as well as a plan for the future of
those roads.
Motion to Adjourn
Mr. Kline made a motion to adjourn the April 8, 2021 Town Council budget work session. Mr. Hardy seconded the
motion, which passed unanimously. The meeting adjourned at 7:32 p.m.
Respectfully submitted,
Carolyn M. Brinkley
Town Clerk
Action Items:
1. Approved raising the public utility tax to $13 per $100 and to split revenue by 50% into the general fund
and 50% into the permanent fund.
2. By consensus, the Town Council agreed to encumber C11-Snow Removal; C11-Uniform Clothing; D10-
Park Advisory Board; and H60-Cemetery Advisory Committee.
3. By consensus, the Town Council was in favor of $350,000 for project management contractor work.
4. By consensus, the Town Council agreed to not move forward with a broadband pilot project.
5. By consensus, the Town Council agreed to purchasing a farm with $1.5 million cash from the Fiscal
Recover Act funds for a farm and $1 million loan to be paid by the rent received.
6. by consensus, the Town Council requested that the remaining $923,710 be carried over to FY23 to be
spend on capital improvement projects.
7. Approved retaining the tax differential for FY2022.
2021-04-08 TC Approved Budget WS Minutes.doc