Town of Berwyn Heights

Budget Worksession Minutes

March 13, 2006

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

1. Announcements

CM McNulty and his wife are the proud parents of a healthy baby boy, who was born earlier in the day. The Council chamber has been furnished with new digital recording equipment - more sensitive microphones and a wider angle camera lense - which should improve the quality of the TV broadcast and recordings. The Police Department for the first time used a new service last night to find a missing person with special needs, who lives in a Berwyn Heights group home. The use of the service was authorized by the Council and resulted in calls made to every home within a 1 mile radius of the group home informing them of the disappearance and asking residents to report any pertinent information. The message was considered not specific enough by some residents and, in some cases, was received too late in the evening.

CM Dennison took a new job as a special education aide at Berwyn Heights Elementary School (BHES). Verizon has entered into negotiations with Prince George's County for cable TV rights. The Prince George's County Municipal Association (PGCMA) is looking for 3 nominees to the County's negotiation team. Verizon's competition with COMCAST Cable is expected to result in better rates and customer service. The Four Cities Coalition has been awarded a $100,000 Livable Communities Grant for the purchase of a new street sweeper. The cities are still negotiating their share of maintenance and salary contribution. The old sweeper will be kept as a backup.

2. Public Safety Taxing District Budget

TA Murphy explained that, this year, $24,000 in public safety taxes were collected with a real estate tax of 10 cent per $100 assessed property value. These will be used to purchase a new police car. Next year's budget projects $36,000 in public safety taxes, $12,000 of which would be raised from an additional 5 cent personal property tax. While it is not enough to fund an 8^th full time officer for the entire FY 2007, it would pay for an officer who is hired mid-year. Mayor Calvo said that the gradual phasing-in of the district and associated costs is more palatable to the businesses. TA Murphy said that businesses would be notified of the personal property tax increase through the Bulletin.

CM Gourley moved to increase the real property tax in the district from 10 cents to 13 cents per $100 assessed property value. This would raise an additional $8,000 in revenues with which to fund the 8^th officer. The motion failed for lack of a second.

3. General Budget

The FY 2007 will be introduced on the April 12 Town meeting at which 3 public hearings related to the budget will be held. The first hearing on the constant yield tax rate will be opened at 7:30 p.m. The other hearings relate to the general budget and the special taxing district budget. Further, amendments to Business Licenses Ordinance will be introduced.

Health insurance: TA Murphy explained that health insurance rates are projected to increase by 18% in the next fiscal year. He advised the Council on different health insurance plan options, which would entail raising the copay and/or deductibles for prescriptions. This could reduce rate increases to 12.7% and 8.7%, respectively. An option that requires a $250 deductible coupled with a reimbursement to beneficiaries by the Town was discussed at length. The setting up of health flex plans was considered. TA Murphy was asked to research their feasibility.

At 8:30 p.m., the Council took a 5 minute break.

Copier: TA Murphy said that the office needs a new copier as parts will no longer be available for the current machine. The lease-purchase of a new copier is expected to add $600 to the copier appropriation in FY 2007. Mayor Calvo moved to transfer $600 from the Dues & Conventions appropriation to finance the copier. The motion failed for lack of a second.

Electricity: Mayor Calvo explained that PEPCO's electricity rates are slated to go up by 55% in the next fiscal year. TA Murphy is seeking proposals from other providers to find a lower rate. Undesignated reserves of $12,000 could be budgeted to pay for part of the expected increase

Street sweeper: Mayor Calvo said that the Four Cities had received a $100,000 grant to pay for a new street sweeper. For purposes of negotiating a new street sweeper agreement, Berwyn Heights probably should request the sweeper for only 2 months or less each year. This would reduce its share of maintenance costs. However, as the new arrangement includes the hiring of a full time driver, the Town's contribution would still go up by approximately $5,000. TA Murphy said said the proposed agreement has Berwyn Heights paying 25% of the cost of driver. Mayor Calvo said and the Council agreed that Berwyn Heights' share should be based on usage, as stated at a previous Four Cities meeting.

Employee benefits: Mayor Calvo informed the Council that it is not possible to finance a study to determine the cost of joining the Maryland State pension plan with the help a legislative fiscal note. The Town will need to look for other solutions to determine how to set up a pension system. TA Murphy said that most neighboring Towns use LEOPS for police pensions. Some use the Maryland State Pension Plan or their own system. Riverdale Park uses its own system, which was set up and is administered by their Town attorney and an actuary. TA Murphy will consult with Riverdale Park's Town administrator on the setting up of a pension plan. Metroland's compensation money could provide start up funds for a Berwyn Heights pension plan. In the meantime, the Town could increase the value of the 457 and 401k plans.

TA Murphy is also working on putting together an employee salary plan based on comparisons with neighboring municipalities. The goal is to implement salary ranges for each position that are competitive with those of other cities and town in the region. This system is expected to benefit primarily the lower paid employees whose salaries are least competitive. Upon determining the costs of bringing all salaries up to a competitive level, the Council would decide how to implement it. As part of the process, employees might be consulted if they preferred salary increases or pension benefits.

The meeting was adjourned at 10:10 p.m.

Kerstin Harper, Town Clerk