town council budget work session minutes

Town Council of Centreville Budget Work Session April 15, 2021 5:30 p.m.

M I N U T E S

The April 15, 2021, Town Council budget work session was called to order at 5:30 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; Krystel Ebaugh, Human Resources Manager;

and Carolyn Brinkley, Town Clerk.

Citizens Forum No citizens offered comments.

Discussion  Ms. Luffman reported that the draft budget before the Town Council includes all requested changes from the April 8, 2021 budget work session. She stated that with the elimination of the tax differential from Queen Anne’s County, the transfer to fund balance is -$555,228.

 Mr. Kline stated that the Council will need to go back through the capital budget and make decisions. He requested the $60,000 for the building design on Pennsylvania Avenue be eliminated. Mr. Hardy stated he disagreed and that this building is the future of Centreville and if eliminated, it is a disservice to the employees.

He stated the design needs to be completed to see what the future may be. Mr. Kiel stated it needed to be left in the capital budget and just because the design is completed does not mean the construction has to be started right away. Ms. Anania stated the design needs to be done however, does not feel it needs to be done in FY2021. Mr. McCluskey indicated that he is in favor of completing the design so that the Town has a plan

moving forward.

 Mr. Kline suggested any capital budget items with a priority number of 1 or 2 remain in the budget and any items with a priority number of 3 or 4 be removed.

 Mr. McCluskey stated that the Council needs to look at revenues.

 Mr. Walls reported that there have been $16 million in projects that have been deferred between 2016 and 2020.

 Mr. Hardy stated that he is disappointed in the deaf ear of the QAC Commissioners regarding the Town’s request for the tax differential.

 Mr. McCluskey stated that currently, the Town’s deficit equals $.10 on the tax dollar and asked the Council if it should go higher.

 Mr. Kline stated that this summer is the second of two utility increases and with the optics of a new building, he is not in favor of increasing taxes.

 Mr. McCluskey stated that they are looking at vehicles for the police department and LEOPS. He stated this Council was elected to make tough decisions and feels that taxes need to be increased between $.12 & $.15.

 Mr. Kline stated there is no difference in a $.13 tax rate increase and keeping the tax differential and the only difference is the County Commissioner’s passed the “buck” to the Town Council.

 Ms. Luffman reported that the County Commissioners approved a $.13 tax set-off/tax differential with a 2% inflation each year.

 Ms. Anania stated it is a tough decision but she does not see a solution without raising revenue. She stated there needs to be priorities and she is in favor of cutting the $60,000 building design this year.

 Mr. Kiel stated the Town Council needs to decide if they will cut services or raise taxes. He stated that he is not in favor of cutting the $60,000 building design this year.

 Mr. McCluskey suggested raising taxes by $.13.

 After some discussion regarding the list of items in the capital budget, by consensus, the Town Council agreed to increase the tax rate by $.13 for a total tax rate of $.535 per $100.

2021-04-15 TC Budget WS Minutes.doc  Mr. Hardy requested that information be developed and sent out to the citizens explaining the need for this increase. It should include historical information and put the budget in perspective. He also stated that the salary study was a much-needed tool because employee retention is not a nicety; new employees cost money.

 The Council decided to hold another budget work session on Thursday, May 6th at 6:30 p.m.

Citizens Forum Mr. Joe Brown, Concerto Avenue offered comments.

Motion to Adjourn Mr. Kiel made a motion to adjourn the April 15, 2021 Town Council budget work session. Mr. Kline seconded the motion, which passed unanimously. The meeting adjourned at 6:32 p.m.

Respectfully submitted, Carolyn M. Brinkley Town Clerk Action Items:

1. By unanimous consensus, the Town Council agreed to increase the tax rate by $.13 for a total tax rate of

$.535 per $100.

2021-04-15 TC Budget WS Minutes.doc