Worksession Minutes
March 2, 2009

The meeting was called to order at 7:01 p.m. Present were Mayor Calvo, Mayor Pro Tem (MPT) Lofgren, CMs Ahrens, Dennison and Gourley. Also present were Town Administrator (TA) Murphy, and Clerk Harper.

1. Mayor

Announcements: The Council was joined by newly appointed Councilmember Richard Ahrens.

Calendar: The March 23 budget worksession was canceled. The date for a March 26 talent show was added.

Minutes: The February 11 Town meeting minutes were reviewed for approval at the March 11 Town meeting.

Department reports: CM Gourley commended TA Murphy for his hard work on a difficult budget. CM Dennison reported that she, Mayor Calvo, PTA President Beth Brittan-Powell and other Berwyn Heights Elementary School (BHES) parents testified before the Board of Education on February 26 against de-funding the Music & Technology program. At the last Historical Committee meeting, a guest, George Trail, was in attendance who presented interesting information about the first settlements in Prince George's County. The PTA and Recreation Council will host a talent show on March 26. All are invited.

MPT Lofgren reported that the Public Works crew were very busy with snow clearing and postponed Monday's trash collection. The heaviest snow fall came during the early morning and rush hour and made it hard for the men to keep up with plowing. Temperatures were too low for the road salt to be effective. However, by noon all roads were clear. Further, WSSC has taken first steps to patch roads dug up for waterline repairs.

Mayor Calvo reported that Chief Murphy has been working on hiring a new police officer to fill the vacancy left by Officer Johnson's departure. Most of Mayor Calvo's time last week was taken up with rallying the community to testify before the Board of Education, after a February 21 Washington Post article published information about proposed budget cuts to BHES' Music & Technology program. On short notice, a letter of protest was drafted and sent to the Board, and a group of parents were recruited and prepared for testimony. On March 1, the Washington Post published an account of an October 2008 police incident in which a Latino man was roughed up by 2 Prince George's County officers in front of the College Park 7-Eleven. Berwyn Heights officer Unger's arrival at the scene was credited with preventing more serious injuries. The County officers have been suspended by Chief Hylton pending further investigation. Tomorrow Mayor Calvo will testify in front of the Senate in favor of SWAT team legislation he authored in response to an errant police raid on his home last year. On March 24, the House will take up the bill. Meanwhile, he continues to give interviews on local radio stations about the matter.

Citizen comments: MPT Lofgren received a comment commending Bruce Hockman for securing a downed cable wire on Seminole Street. Mayor Calvo received comments about a rental inspection, about a rude WSSC laborer, who refused to stop his jack hammer and covered a resident in dust, and about the proposed elimination of the Music & Technology program.

Departmental assignments (added item): Mayor Calvo said that, after speaking to CM Gourley and CM Ahrens, he assigned CM Ahrens to head the Code Compliance Department and CM Gourley to continue as head of the Administration Department until he resigns in May. This arrangement avoids having to perform Councilmembers' bank signature authorization twice. CM Ahrens will inform Code Director Solomon about the change.

Student Mock Town Council meeting date (discussed out of order): CM Dennison proposed April 13 and 20 as possible dates for holding the Mock Student Town Council meeting. BHES will determine which of these dates works best for its students and staff.

Volunteer Appreciation Dinner date (discussed out of order): June 13 or June 20 was reserved for the volunteer dinner, pending confirmation of no conflicts with other Town events.

Music & Technology program (discussed out of order): CM Dennison reported that Mayor Calvo alerted her to a proposed cut of $667,000 from the Music & Technology program in the PGCPS FY 2010 budget. Within short order, Mayor Calvo contacted BHES PTA officers, Board of Education members and County Councilmember Olson to try to reverse the cuts. He also drafted a letter to the Board of Education describing the achievements of the program and expressing the Town's support for the program. The night prior to the February 26 Board hearing, CM Dennison, Mayor Calvo and BHES parents held a meeting to prepare testimony for the hearing. The hearing went well, with Mayor Calvo testifying last, and the Board agreeing to re-evaluate the BHES program and to review their decision. CM Dennison later talked with Rosalind Johnson, Berwyn Heights' school board representative, and other stakeholders to explain the Town's position. 

Mayor Calvo elaborated that, in a surprise move, the Board of Education cut the Music & Technology program from its budget 5 days before it was to be sent to the County. The reason given was that the program failed to have success in improving test scores. However, the conclusion was based on an outdated 2005 evaluation that produced only preliminary findings. PGCPS did not complete evaluations for BHES in the following years as was required. Since the 2005 evaluation, test scores have risen from a 30th and 40th percentile in reading and math to the 80th and 90th percentile. When presented with this information, the Board agreed to re-evaluate the program and then make a decision. Mayor Calvo believes that the program will be kept but that some funds will be cut, resulting in the loss of perhaps 1 of 3 Music & Technology positions. Mayor Calvo also spoke with interim Superintendent Hite who acknowledged that the program is a success and should be preserved. He noted that the proposal to cut the program was initiated by School Board members Donna Hathaway Beck and Rosalind Johnson. Heather Iliff will become Berwyn Heights' school board representative when the board switches to a 9 member single district board in 2010.

At 7:55 p.m., the Council took a 10 minute break.

Town Administrator budget presentation: TA Murphy said that the FY 2010 budget proposes a $70,000 surplus. It falls short of the goal of the $100,000 surplus goal that would serve as a cushion for an expected decline in real property assessments after the January 2010 real property re-assessment. The budget does not propose an increase in the real property tax rate. It is driven by projected losses in certain revenues and large increases in insurance premiums. Highway User Revenues (HUR) are projected to decline by $33,000, fines & forfeitures by $7,000 and interest earnings by $27,000. Interest earnings might be boosted if the Town's savings are invested elsewhere. An $11,000 increase in workers compensation insurance is the result of several unresolved claims that change the Town's experience modification factor and raise the premiums. An increase of $33,000 in health insurance costs is in part the result of an increase in the average age of Town employees, which pushes the Town into a higher premium bracket. A general increase in Care First premiums and the overall experience of the small group pool also contributes to the health insurance premium increase. However, final figures won't be available until early May.

TA Murphy continued that the FY 2010 budget has very few increases. Cost of Living Adjustment (COLA) for the Washington Metropolitan area went up by 1% between January 2008 and January 2009. Thus a 1% increase in COLAs has been budgeted. Increases in revenues are projected for real property taxes, recycling taxes, and rental license fees. All other revenues are flat or declining.

Overall expenditures for FY 2010 are projected to increase by 1.7 %, which includes the COLA and capital budget items. The 1% COLA increase drives salary and benefit increases throughout the budget. Changes in expenditures by department are as follows:

• General Government budget increases by 3%, due largely to increases in Bulletin production cost.

• Police Department budget has no overall increase, due to a high earner leaving the department last year. Increases are projected in maintenance & repair, training & seminars, police station rent, ammunition and uniforms.

• Code Compliance Department budget increased by 5%, due mostly to an increase in salaries. Increases are also projected for postage, maintenance & repair of the code vehicle, as well as gas & oil.

• Public Works Department budget increases by 3%. No increase is budgeted for the Public Works Building budget. The request for the installation of energy efficient lights was not funded. The Streets & Sanitation budget is projected to increase by 1%, with salaries going up 3%, uniforms 5% and new funding for landscaping the Staples right of way. Solid waste disposal is projected to decline by 9% because of a decline in the volume of solid waste disposed of in the last 2 years. The Recycling Program budget is projected to increase by 31% because the Town switched to an in-house recycling collection program, hired an additional employee and budgeted for an increase for temporary labor. An increase of $10,920 has been budgeted for a newly established $30.00 a ton recyclables disposal fee enacted in December 2008. No increases were budgeted for the Street Lighting budget.

• Parks & Recreation budget increases by 7%, mainly because of a $1,000 increase in the Equipment appropriation. The additional money is to fund repairs to playground equipment and the purchase of Boys & Girls Club cheer leading uniforms.

• Cable budget is proposed to increase by 4% due to increases in the Capital Outlays and Maintenance & Repair appropriations. However, the I-Net participation fee dropped from $4,900 to $2,882.

• Miscellaneous budget is projected to decrease by 4%. It funds the Town's insurance policies, employee benefits and Four Cities street sweeper program. The main reason for the decrease is the non-issuance of a pension bond. Additionally, there are declines in annual pension contributions and in unemployment compensation. However, employees, health/dental/vision/life insurance is likely to go up by 26%, workers compensation insurance by 30% and liability insurance by 11%. The final premium figures won't be known until May or June. Health insurance costs are set to increase from $122,000 this year to $150,000 next year because of rate increases and because the average age of Town employees will exceed 39 years. A further increase in costs to $14,000 would occur if the Town implements a domestic partnership policy.

• Debt Service budget will decrease by 8% because a dump truck has been paid off and the interest payments on a 1998 road repair bond are declining as the bond is about to be paid off.

• Capital Expenditures - Operating Budget is a new major activity. It funds a new police vehicle at $28,500, a contribution of $80,000 to the infrastructure reserve and $43,800 to the equipment & vehicle reserve from the operating budget. One snow plow and one salt spreader for the Public Works Department continue to be funded from surplus. A request for a large dump truck costing $90,000 was not funded.

• Public Safety Taxing District (PSTD) revenues are projected to increase by 7% due to increases in real property assessments. The PSTD revenues will pay for one officer's salary, FICA, shift differential and part of the overtime.

Mayor Calvo commented that he looks at the budget as having $240,000 in new revenues from real property tax increases and unspent pension contributions. He had hoped that this would pay for all new expenditures and leave a $100,000 surplus. New spending of $10,000 for a 1% COLA and $10,000 for roll up costs for merit increases are modest. However, an additional $40,000 for health insurance, assuming domestic partners are included, and a sharp decline of $27,000 in investment income are unexpected. Highway User Revenues also declined by $33,000. This leaves the Town with only $70,000 in surplus, or $59,000 if new snow clearing equipment is not paid from surplus. He believes that is not enough to last through the lean years coming up after the reassessment. Either spending has to be cut or new revenues found. Some money could be saved by reducing the temporary labor budget, limiting the domestic partnership policy to same sex couples, adjusting health insurance deductibles and fees, and making full use of I-Net infrastructure. But other cuts probably need to be made.

MPT Lofgren noted that $90,000 for a new dump truck has been cut. However, it may be better to purchase new equipment when surplus money is still available rather than to have to purchase it when there is none. CM Dennison suggested looking into other health care plans to see if there are less expensive options and to explore alternate investment vehicles to boost interest earnings. Regarding the Parks & Recreation budget, she is inclined to spend money on maintenance and repair rather than on replacement of playground equipment. Playground equipment is expensive and State funds might have to be sought to overhaul the entire playground. Further, CM Dennison said she does not believe that home values will decline by more than 15%, when they are reassessed in January 2010, and expressed the hope that Berwyn Heights qualifies for stimulus money to repair Seminole and Ruatan Streets. Lastly, CM Dennison wondered why Mayor Calvo is concerned about a $70,000 surplus as insufficient.

Mayor Calvo said that a $70,000 surplus is not enough to carry the Town through an anticipated 3 years of declining real property assessments. Unlike previous years, this year the Town is not going to add to surplus because it paid $131,000 out of pocket to join the Maryland State Pension plan instead of issuing a bond. Half of that money was taken from the surplus. CM Gourley said that the budget might have enough money for a new Public Works dump truck if it costs less than the $90,000 budgeted. Mayor Calvo said that he, too, would like to buy a dump truck, but there is not $90,000 to pay for it. CM Ahrens cautioned against taking benefits for same sex domestic partners out of the budget because it would be politically sensitive. Mayor Calvo said that he proposed taking out benefits for opposite sex domestic partners, not same sex, which may save $9,000.

MPT Lofgren said that the Town may want to think about signing Pops Park playground over to the Maryland National Capital Park & Planning Commission (M-NCPPC), which serves as the Town's Park and Planning Department. M-NCPPC has the funds to be able to replace worn and broken equipment at a moments notice or overhaul the entire playground if need be. Apart from losing control over the land, another drawback might be that any kind of moving equipment, such as swings and merry-go-rounds, would be taken out to comply with their safety guidelines.

Mayor Calvo commented on TA Murphy's one-page FY 2010 budget summary. Specifically, he asked to account for the difference between an available surplus of $507,000 in FY 2008 and a starting surplus of $404,200 in FY 2009. TA Murphy was asked that it be rewritten to make it clearer.

Signed: Kerstin Harper, Town Clerk

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