CHESTERTOWN — On Monday, at their regularly scheduled meeting, Chestertown Manager Larry DiRe provided the mayor and Town Council an overview of their FY-24-25 draft budget.
Highlights of the budget include:
An increase of 5% for fuel and energy costs
Funding for a deputy clerk for 10 months — the only new staff position
All recommended police department positions funded, with three current vacancies funded for 11 months of the new fiscal year beginning Aug. 1
All non-marina fees, because marina fees have already gone up, will be a flat $25 to cover the staff review time and associated processes.
A $30,000 legal fees line will cover potential litigation and needed town code review.
There’s no proposed tax increase.
Development fees are proposed for a 20% increase. Those haven’t been raised since 2018.
A 3% increase on water and sewer rates is proposed to keep track of inflation. It’s better with 3% every year than 20% every five years, DiRe pointed out.
The residential trash hauler is scheduled for a 7% increase to cover expenses and to keep competitive among market rate haulers.
DiRe said for anyone interested in what they still need to do to finalize their budget there are a few things to known — five things in fact.
The Visitor’s Center staff us recommending cutting the 360 day a year schedule into a five-day work week, closed on the low-demand days of Sunday and Monday.
DiRe said, “There’s no point staffing on the days when there’s not a lot of demand. This change in schedule is proposed to cut $13,000 in spending at a time when we’re trying to close a very modest operational deposit.”
They decided more discussion is needed, especially when the tourist season is just beginning.
Second.
The week of December 23, Tuesday and Wednesday (Christmas Eve and Christmas) are the town’s designated holidays. The town manager proposes to add Monday, Thursday and Friday to that list, allowing a week-long holiday for staff.
He said it’s a much less expensive benefit to the staff and keeps their salary stable at 3.5%
“Until we have a merit-based bonus system, what we can do is recognize time off.”
Those who have to work that weekend get holiday compensation, like police or staff at the wastewater treatment plant.
The total cost of that will be about $33,000, DiRe noted.
Third.
Direct for professional service contracts under $10,000.
DiRe said a 2001 charter requires department heads and the town manager to spend only up to $9,999.99 per service or material expenditure without going to an open public contract.
He wants to revisit that at a later date and change that number to $17,700 adjusting for inflation over time.
However, he’s currently asking for guidance to use several “limited use contracts not to exceed $9,000” to address issues related specifically to the town planning process, the comprehensive plan and looking at the comprehensive plan study.
All can be done in phases and bid out to find experts in various fields.
The town will continue look for American Rescue Fund Act (ARPA) interest funds that yield approximately $9,100 a month, so interest money can pay for some of those three short term phases in contracts.
Fourth.
Cerino Center Access Reconstruction — will accommodate ShoreRivers (a nonprofit) tenant expansion — to complete the project, $42,000 will be needed. Staff recommends financing that through $500,000 in the existing capital project fund and upon completion put a general fund expenditure cap on that building.
This way they can decide on a yearly basis.
Lastly, there are projects pending a grant award or outside town funding.
This includes Carpenter Park playground — $264,089 may be coming in as state funding that requires no local match.
For the historic district guidelines update, $12,000 may be expected, which requires a $3,000 match from the town, and may adjust accordingly if approved.
DiRe said public bathroom facilities can be funded by ARPA and financial assistance by the Kent County Commissioners at $80,000.
DiRe expects to have good news on that because it’s listed as an appropriation.
“These are the draft budget priorities that have been informed by other things including the awareness of the dwindling ARPA funds and their interest rates, as well as the need for some organizational efficiencies and priorities as I stated in the comprehensive questionnaire,” DiRe told the council.
He said now the mayor and council have to finalize the budget, approve some of the amendments and provide direction for some of the staff for the issues he brought forward.
Mayor David Foster reminded the council and the public, “There is no increase in the tax rate. I’m not saying the appraiser won’t come and appraise your home somewhat more and your taxes will go up, but the rate, (emphasis on rate), will not change this year.”
Council member Tom Herz made a motion to approve of the five things DiRe brought up, and was seconded by Council member Meghan Efland, meeting with unanimous approval.
Herz moved to adopt the fiscal year budget ordinance, which also met with unanimous approval.
A budget public hearing follows at a later date.
“Thank you for finalizing,” DiRe told the council.
Most Popular
Comments / 0