town council budget work session minutes

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Town Council of Centreville
Budget Work Session
March 25, 2021
6:00 p.m.
M I N U T E S
The March 25, 2021, Town Council budget work session was called to order at 6:00 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; Krystel Ebaugh, Human Resources Manager; Clifford “Kip” Matthews, Director of Public Works; and
Carolyn Brinkley, Town Clerk.
Discussion
 Salary Study
o Ms. Ebaugh presented a memo related to a salary study that was conducted and discussed proposed
changes with the Town Council.
o Mr. McCluskey asked for the salary study to be added to the April 1, 2021 budget meeting agenda.
 Steps / COLA
o Ms. Ebaugh discussed the history of COLA’s and steps and reviewed possible scenarios listed in the
budget for review.
 Compensation Payout
o Ms. Ebaugh reviewed the information related to the Compensation Payout Policy. It was stated that the
number estimated for FY2021 will be the highest the Council will see since the new policy puts a cap on
the amount of comp time that can be earned in one year.
 Health Insurance
o Ms. Ebaugh reported that the Town participates with the Local Government Insurance Trust (LGIT)
which is an insurance co-op with other government agencies. She stated that currently, the Town is
expected to receive a surplus payout for health insurance and the insurance rates will increase by 3.9%
for FY2022.
 End of Service Payout
o Ms. Luffman requested that the Council consider implementing an end of service payout line item in
each budget. She stated this would cover any vacation time owed to an employee upon leaving the
Town. Sick leave would be transferred to their Maryland State Retirement Pension for all employees
who participate.
o Mr. McCluskey asked if this could be a revolving fund that could be carried over each year? Ms.
Luffman indicated it could be a revolving fund. Mr. Kline agreed with this as well.
 Department Budgets – Operating and Capital
o Ms. Luffman reviewed the revenues for the operating budget and each Department Head reviewed any
proposed changes to their budget.
o It was requested that Ms. Luffman remove the 75% difference between the FY2020 and the FY2021
public utility tax rate ($3.89) from the budget for the Public Utility Tax which is placed annually into
the Permanent Fund.
o Ms. Luffman reported that the ICS account interest rate will be reduced from 1.55% to .45% due to the
reduced federal tax rate.
o There was discussion regarding the Park Advisory Board line item in the D10 budget and the Cemetery
Advisory Committee line item in the H60 budget and to have them both as a revolving fund. It was
requested to add them to a list of considerations to make.
 Allocation of Cost
o Ms. Luffman reviewed the allocation of cost in which a certain percentage of administrative staff time is
allocated to the Enterprise Fund which, in turn, reimburses the General Fund. Staff recommends it
remain at the current 20%.
2021-03-25 TC Approved Budget WS Minutes.doc

 Property Tax Rates
o Ms. Luffman reported that the current tax rate is $.405.
 Public Utility Tax Rate
o Ms. Luffman stated that the current public utility tax rate is $7. This is charged to the four (4) utility
companies located in Centreville.
o Mr. McCluskey stated that he will make a presentation at the April 1st budget work session on public
utility rates.
 Water & Sewer Utility Rates
o Ms. Luffman reported that a 25% increase is planned for FY2022, which was approved in last year’s
budget.
 Inflow & Infiltration Study
o Mr. Walls stated that staff would like the Council to consider a study for inflow and infiltration (I&I) to
be completed. He stated that a study was done in 2005 (ordinance included in the Council’s budget
information) in which the Council funded the study by implementing an assessment tax that was
charged to any building permit that required a sewer hook-up.
o Mr. Matthews stated that when there is bad, wet weather, the flows are at least double than what they
are on a normal day.
 American Rescue Plan Act
o Ms. Luffman stated that the Town will be receiving $4.1 million from the American Rescue Plan Act
signed into law on March 11th. She stated that half of the funds would be received within 60 days and
the other half would be received in one year. All funds will need to be used by 2024. She stated there
are four (4) broad uses outlined at this time.
o Mr. McCluskey requested that $500,000 of the American Rescue Plan monies be earmarked for
broadband infrastructure.
o There was discussion regarding possible uses of these funds.
 Work Session Schedule
o Mr. McCluskey asked the Council if they would be available to begin the budget work sessions that are
scheduled prior to a regular Town Council meeting earlier than 6:00. The Council agreed to begin the
April 1st and April 15th budget work sessions at 5:30 p.m.
Motion to Adjourn
Mr. Kline made a motion to adjourn the March 25, 2021 Town Council budget work session. Mr. Kiel seconded
the motion, which passed unanimously. The meeting adjourned at 8:47 p.m.
Respectfully submitted,
Carolyn M. Brinkley
Town Clerk
2021-03-25 TC Approved Budget WS Minutes.doc