Town of Berwyn Heights

Budget Worksession Minutes

May 9, 2005

The meeting was called to order at 7:00 p.m. Present were Mayor Calvo, CMs Dennison, Gourley, Laughlin and McNulty. Also present were Town Administrator Murphy, Clerk Harper and citizens.

1. Mayor

Announcements: Mayor Calvo thanked CM Dennison, the Recreation Council and other volunteers for organizing Berwyn Heights Day. Governor Ehrlich will have a bill signing day on May 10. Legislation authorizing municipalities to create special taxing districts for the purpose of enhancing public safety programs was not on the list. It may be announced for signature on May 26 or go into effect without signature. However, the Town may not be able to establish a public safety taxing district this year. CM Gourley thanked the Public Works crew and volunteers for doing a great job on Berwyn Heights Day. CM Dennison thanked the Recreation Council and Town employees for organizing Berwyn Heights Day. On June 22, the Town will thank all volunteers at an appreciation dinner. CM McNulty announced that Chief Murphy was in a minor car accident this morning but is not hurt. The other driver was at fault. Insurance will pay for repairs.

Calendar: The Council reviewed the calendar for changes and additions. On May 19, the Prince George's County Municipal Association (PGCMA) will meet at Montpelier Mansion and elect new officers and vote on bylaw changes. Senator Pinsky has confirmed June 13 as the date for a legislative briefing for Town residents.

Minutes: The Council reviewed and corrected the April 13 Town meeting minutes.

Citizen comments: All Councilmembers received mostly positive comments on Berwyn Heights Day and suggestions for improvements. In particular, it was recommended that the children's train go from the Indian Creek field all the way to the Town Center. Many positive comments were also received on the budget process.

PGCMA meeting: Discussion was postponed to the next worksession.

2. Fiscal Year 2004-2005 Budget Amendment

Mayor Calvo explained that the amendment to this year's budget reflects revenues from grants and associated expenditures, a number of unexpected capital expenditures as well as adjustments to salaries, health insurance and debt service. TA Murphy gave a detailed explanation of the changes to the affected line items. In the ensuing discussion, it was noted that highway user fees have not been adjusted as the final figures have not been publicized. The partition for the Public Works garage will be built at a lesser cost than initially estimated and work will begin shortly. The repair costs of the Pop's Park fence will be partially reimbursed by the Local Government Insurance Trust (LGIT). Full reimbursement depends on whether LGIT can recover the cost from the driver at fault. The expenditures associated with the grants received by the Police Department will not affect the FY 2005-2006 budget. In a straw poll, the Council voted 5 to 0 to approve the amendment.

3. Fiscal Year 2005-2006 Budget

CM Gourley explained which line items in his budget were cut to finance a weekend code enforcement official. The needed $4,000 were initially taken from the Streets & Sanitation - Temporary Help appropriation. After discussions with Director Coleman, final cuts were made to Salaries (-$500), Gas & Oil (-$1,000), Disposal Fees (-$2,000) and Street Repair Materials (-$500). There were no objections to these changes.

Mayor Calvo remarked that he has made preliminary calculations about how much money could be raised if the Town decides to implement a special public safety tax. The assessed value of all private commercial property amounts to approximately $25 million. If an additional 1 cent tax per $100 of assessed property value were levied, approximately $2,500 in revenues could be generated. If a 10 cents tax were levied $25,000 could be raised. This would be sufficient for a new police car or to support additional overtime but not an additional police officer. The legislation does not set any limits on the amount of taxes that the Town could impose.

In general remarks about the budget, Mayor Calvo said that he feels good about this budget. Reliance on the surplus was reduced, an infrastructure reserve fund has been set up, and annual replacement of a police car has been absorbed into the operating budget without raising real property taxes. CMs Dennison and Gourley said that they find the new budget format easier to work with. CM Laughlin said that higher than expected tax revenues have helped a great deal, but the loss of Community Development Block Grant is a blow. CM McNulty said that this budget takes a big step in weaning the Town from reliance on borrowing and grant money, which can dry up unexpectedly.

The meeting was adjourned at 8:19 p.m.

Kerstin Harper, Town Clerk