town council budget work session minutes

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Town Council of Centreville
Budget Work Session
April 1, 2021
5:30 p.m.
M I N U T E S
The April 1, 2021, Town Council budget work session was called to order at 5:30 p.m. by President Timothy E.
McCluskey at the Liberty Building, 107 N. Liberty Street, 2nd floor 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
 Tax Differential
o Mr. McCluskey stated he was in favor of the tax differential coming back to the Town.
o Mr. Hardy requested that making a final decision be deferred in anticipation of the reaction from
citizens.
o Mr. Kline stated that he needed to look at the budget in total and the amount of debt. The Town is
reducing debt and has been for the last few years. Due to the number of deferred items on the capital
improvement list he is recommending the Town retain the tax differential this year. Mr. Kline stated
that he is in favor of it this year, but not every year.
o Ms. Anania stated that having the budget has been easier to decide on the tax differential. She is in
favor of retaining the tax differential this year, but not every year.
o Mr. Kline stated that he would like have the County Commissioners take a tour of the town to see the
large strain being the County seat is on the town.
o Mr. Hardy is in favor of splitting the tax differential with the citizens.
 Public Utility Tax
o Mr. McCluskey is in favor of raising the public utility tax to $13.00.
o Mr. Kline stated that he would do research as to what other municipalities charge and would like to
know if the utility companies spread this tax across all users or is it limited to the local users.
 Water & Sewer Utility Rates
o By consensus, the Council Members agreed to keep the 25% increase in place for FY2022.
 Salary Study
o By consensus, the Council Members agreed to move forward with the changes recommended by staff
and to implement the changes, retroactive to January 1st.
o Mr. Walls reported that two new utility workers were just hired and asked if the Council would be in
agreement to hire them at the new rate of pay. By consensus, the Town Council were in agreement to
hire the two new utility workers at the higher rate of pay as approved in the salary study.
 Steps / COLA
o By consensus, the Council Members agreed to implement a step and 1% COLA effective July 1, 2021.
 Compensation Payout
o By consensus, the Council Members agreed to the compensation payout proposed by staff. The
resolution and policy will be added to the April 15th Town Council meeting agenda for official
consideration.
 End of Service Payout
o By consensus, the Council Members agreed to set aside 2% of salaries for the end of service payout
account and to encumber this account each year.
2021-04-01 TC Approved Budget WS Minutes.doc

 Insured Cash Sweep (ICS) Account
o Ms. Luffman reported that the new ICS rate will be decreasing to .45% interest. She stated that this
can be locked in for 6 months or for 1 year. She stated if the Council decided on 6 months, if the
federal interest rates increase, the ICS rate would increase however, if the federal interest rates
decrease, the ICS rate will decrease as well and could potentially be below .45%.
o By consensus, the Council Members agreed to remain in ICS at a .45% interest rate and to lock in
for one year.
 Department Budgets – Operating
o The Council requested Ms. Luffman update the budget to include the Public Utility Tax amount
transferred into the Permanent Fund; add in the proposed tax differential amount, and add in the Fiscal
Recovery Act funds.
 Department Budgets – General Fund Capital
o Ms. Luffman asked if the Council was in agreement with the items listed in the General Fund capital
requests or if there are any changes they would like to be made.
o After some discussion the following items were requested to be removed from:
 B10 – Parking Kiosks - $10,000
 B10 – Wharf Building Upgrade - $141,000
 Department Budgets – Enterprise Fund Capital
o The Council will review the Enterprise Fund Capital Budget at the next budget work session.
 Fiscal Recovery Act Funds
o Ms. Luffman reported that this will be a passthrough from the State. The State will receive the funds
within 60 days of the bill being signed and then has 30 days to disperse to the Town. She stated there
will be reporting requirements and they will conduct an audit of the spending.
 Allocation of Cost
o Mr. Walls reported that he discussed allocation of time with staff between the general fund and the
enterprise fund. He stated the average allocation came out to be 35%.
o The Council requested Ms. Luffman prepare a budget showing both a 35% allocation and the current
20% allocation for comparison.
Motion to Adjourn
Mr. Kline made a motion to adjourn the April 1, 2021 Town Council budget work session. Mr. Kiel seconded
the motion, which passed unanimously. The meeting adjourned at 6:47 p.m.
Respectfully submitted,
Carolyn M. Brinkley
Town Clerk
2021-04-01 TC Approved Budget WS Minutes.doc