Mayor and Council Public Hearing Budget Minutes – June 5, 2023

MAYOR AND COUNCIL

PUBLIC HEARING ON BUDGET FOR FY2024

JUNE 5, 2023

Mayor Foster called the public hearing for the budget to order at 6:00 p.m.  In attendance were Councilmembers Tim O’Brien, Tom Herz, Jose Medrano and Meghan Efland, W. S. Ingersoll (Town Manager), Amanda Miller (Accounting/Treasury Specialist), Lynda Thomas (Town Clerk) and guests.

Mayor Foster read the Constant Yield public notice that was published in the Kent County News on May 18, into the record as follows:

“The Mayor and Council of the Town of Chestertown proposes to increase real property taxes.

1. For the tax year beginning July 1, 2023, the estimated real property assessable base will increase by 2.9%, from $600,365,461 to $617,988,101.
2. If the Town of Chestertown maintains the current tax rate of $0.4332 per $100 of assessment, real property tax revenues will increase by 2.9% resulting in $76,341 of new real property tax revenues.
3. In order to fully offset the effect of increasing assessments, the real property tax rate should be reduced to $.4208, the constant yield tax rate.
4. The Town of Chestertown is considering not reducing its real property tax rate enough to fully offset increasing assessments. The Town of Chestertown proposes to adopt a real property tax rate of $0.4332 per $100 of assessment. This tax rate is 2.9% higher than the constant yield tax rate and will generate $76,341 in additional property tax revenues.

A public hearing on the proposed real property tax rate increase will be held at 6:00 p.m. on June 5, 2023, at Town Hall, 118 N. Cross Street.

The hearing is open to the public, and public testimony is encouraged. Persons with questions regarding this hearing may call 410-778-0500 for further information.”

Mayor Foster stated that it was confusing to him, the first time he read the notice, but the tax rate per $100 for real property will remain the same and the Town will have $76,000 in additional revenue due to the increase in property values in the preceding year.

A citizen gave public testimony and read an article from the May 25, Kent County Newspaper, entitled ” New Report Shows the Cost of Basics Outpaces Wages in Kent County”.  Mr. Foster responded that the article did not include information of the inflationary increases to Town costs of operating, which far exceeds the percentage that was mentioned in the article.  The cost of fuel, equipment, and staffing had all gone up.  He stated that this budget was the best that could be done under the circumstances. He noted the need to increase the water and sewer bills by a modest ten (10) percent to cover cost of keep the systems running.  He also noted that the State of Maryland has total control over the property assessment process.

Mr. Ingersoll noted the slight increase of the utility rates, not done since 2018, and would help the Utilities Commission to stay as prepared for their responsibilities as they have over the decades.

Mr. Ingersoll said that the Town budget is not overloaded with capital improvements and the budget will keep the Town financially level with inflation. He noted that the unappropriated surplus is assigned to continue the paving program. He said that he has spoken with Bramble to get some of the projects competed before the end of the current fiscal year, but they were too overloaded to do the work by June 30.

Mr. Ingersoll stated that the Ukraine war had caused fuel prices to jump 60% higher, so the Town paved the areas that were most urgent.  The fuel prices have since come down, over the past six months, which gives the Town the ability to paving more streets.

Mr. Foster stated that the visible improvements around town, such as recreation facilities and playground equipment, have all been done with grants and private donations.

A citizen asked if there was any consideration whether there might be a drop in revenues at the marina because of 98 Cannon being in limb status. Mr. Ingersoll stated that they were aware of that possibility but with the marina has been full and operating successfully despite the loss of 98 Cannon.

Mr. Ingersoll stated that Council has taken action with the owner of 98 Cannon about the state of the building and that either demolition or recovery will have to take place.

Mr. Ingersoll noted that the Council supported the Shuttle program that allow marina visitors an option to travel back and forth to Rock Hall to give more eating and sightseeing choices when visiting the area.

It was noted that two (2) members of the public gave public testimony.

There being no other questions or comments, Mr. Herz moved to adjourn the budget meeting at 6:15 p.m. was seconded by Mr. O’Brien and carried unanimously.

Submitted by:                                                 Approved by:
Lynda Thomas                                                David Foster
Town Clerk                                                      Mayor

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AGENDA

JUNE 5, 2023

The Mayor and Council meeting will resume in person meetings at Town Hall.  A livestream feed is available at www.townofchestertown.com.

6:00 p.m.

SPECIAL MEETING HELD – MAY 30, 2023

PUBLIC HEARING – CONSTANT YIELD AND BUDGET

1. Call Public Hearing to Order
2. Read Constant Yield Public Notice into Record
3. Read Proposed Budget Public Notice into Record
4. Outline FY2024 Constant Yield
5. Outline FY2024 Budget
6. Questions or Comments
7. Adjourn

UTILITIES COMMISSION MEETING

1. Call meeting to order
2. Minutes of previous Utilities Commission meetings
3. Operating funds on hand
4. Payment of bills
5. Mr. Sipes report
6. Questions or comments
7. Adjourn

MAYOR AND COUNCIL MEETING

1. Call meeting to order
2. Minutes of previous Mayor and Council meetings
3. Operating funds on hand
4. Payment of bills
   1. Jim Bogden – Recreation Commission 10-year Master Plan funding
5. Town Manager’s report
   1. Adoption of the 2024 Budget – Ordinance 02-2023
   2. Resolution 01-2023
   3. Permit requests
      1. Oak Hollow Block Party
   4. Mayor’s Report
      1. Town Manager Selection
      2. Support Letter for Kent Attainable Community Legacy Grant application
      3. Speed Camera Traffic Study
   5. Old Business
   6. New Business
   7. Ward Reports
   8. Requests from the public to be on the agenda:
   9. Questions or comments
   10. Adjourn