Budget Worksession Minutes
April 13, 2009

The meeting was called to order at 7:00 p.m. Present were Mayor Calvo, CMs Ahrens, Dennison and Gourley. Mayor Pro Tem (MPT) Lofgren had an excused absence. Also present were Town Administrator (TA) Murphy and Clerk Harper.

1. Mayor

Announcements: A new officer was hired to fill the Police Department vacancy. The parents of California Angels pitcher Nick Adenhart, who was killed in a car crash on April 8, lived in Berwyn Heights for a time.

2. Budget

Mayor Calvo said that the Maryland Assembly agreed on a budget last Saturday that has a 10.8% reduction in Highway User Revenues (HUR) for municipalities, which equates to a revenue loss of $17,305 for Berwyn Heights. This is a much better outcome than the 48% reduction initially proposed by the Senate or the 30% reduction proposed by the House. He thanked Delegate Gaines, who served as a conferee, for her efforts to preserve a large part of municipal HUR. He asked for a motion to deduct $17,305 from the Town's HUR line item and from the infrastructure reserve appropriation. CM Gourley so moved. CM Ahrens seconded. CM Dennison asked if this will mean a further delay for the Seminole/Ruatan Street renovation. She was told it would not. The Town has enough money in the infrastructure reserve to complete the project. The motion passed 4 to 0.

Mayor Calvo said that the Council will review the cost estimate and specifications for the project at the next worksession. WSSC has agreed to pay $30,000 toward the completion of the project. The Council needs to decide weather to piggyback the WSSC contractor.

Mayor Calvo referred Councilmembers to TA Murphy's revised budget summary, which now includes the introduced FY 2010 numbers, to discuss other budget options. He said that the Health Reimbursement Arrangement explored at previous worksessions appears very promising. If the final numbers confirm the preliminary estimates, the Town could save $25,000 on health insurance costs, which could be applied to the surplus and bring it up to $100,000. Mayor Calvo believes that the larger cushion is needed to cover any unexpected revenue shortfalls in the next few years. TA Murphy said that he will not receive the final numbers until May 8. This does not give the Council much time to make the decision.

Mayor Calvo continued that other budget options include purchasing a new large dump truck, as proposed by CM Gourley, to take advantage of currently lower prices, as well as outsourcing the production of the Berwyn Heights Bulletin. He said the Code Compliance Department has seen a big increase in its workload with the addition of new rental homes and stricter clean lot regulations. The outsourcing of the Bulletin, which may cost in the vicinity of $500 per month, would free up 1 ½ to 2 days of the Code Director's time. CM Gourley said that Director Solomon has checked into outsourcing with a contractor, who produces the Westchester Park newsletter. However, he was not given any figures on the cost.

CM Dennison asked if the snow removal equipment is included in the budget and when the I-Net will be operational. She was informed that the snow clearing equipment is in the Public Works Department operating budget and that the I-Net installation will be completed by the end of June. Mayor Calvo noted that the hiring agreements of TA Murphy and Chief Murphy specifically include their participation in the International City Managers Association conference and the International Chiefs of Police Association conference. These expenses can not be eliminated without violating their agreements. However, the conference expenses could be capped. CM Ahrens said that he is opposed to cutting conference costs as conference attendance is part of maintaining Directors' professional standing.

The Council discussed whether to purchase a large Public Works dump truck in FY 2010 or later. The truck is likely to cost closer to $75,000 rather than the $90,000 requested. It was agreed to wait until it is known how large the drop in real estate tax revenues is going to be. The decision on whether to sign up for a Health Reimbursement Arrangement was postponed until May, when the final numbers are available.

At 8:00 p.m., the Council took a 10 minute break.

Mayor Calvo asked Councilmembers to bring up other budget items they would like to discuss. CM Gourley asked if there is enough money to rent voting machines next year and if the Administration Department will keep the Saturn. TA Murphy said there is money for the voting machines and that the Saturn would be kept with a $1,000 allowance for maintenance & repairs. He also noted that the deficit in the revised estimates for FY 2009 is down from $43,000 to $13,000.  Mayor Calvo said that he would like to explore the possibility of offering retired employees the option of remaining in the Town's health insurance group until they are eligible for Medicare, provided they pay the premium.

TA Murphy said that he continues to look for alternate investment opportunities that would increase the Town's interest income. The money set aside in various reserves amounts to approximately $1 million and, if the surplus is included, comes to about $1.5 million. A higher interest rate on these investments could earn thousands of dollars in additional revenue.

The meeting was adjourned at 9:10 p.m.

Signed: Kerstin Harper, Town Clerk

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