BUDGET WORK SESSION OF THE GREENBELT CITY COUNCIL held Wednesday, May 17, 2006, for the purpose of holding a final review of the proposed FY 2007 budget.  

Mayor Davis called the meeting to order at 7:38 p.m. in the Multipurpose Room of the Community Center.  

PRESENT WERE: Councilmembers Konrad E. Herling, Leta M. Mach, Edward V. J. Putens, Rodney M. Roberts, and Mayor Judith F. Davis.  

STAFF PRESENT WERE: Michael McLaughlin, City Manager; Jeffrey Williams, City Treasurer; Deidre Allen and Leslie Nataro, Finance Department; Kenny Hall, Carolyn Clemens, Bill Phelan, Public Works; Jim Craze, Dan O’Neil, Tom Kemp and Jim Parker, Police Department; Celia Craze, Planning and Community Development; Joe McNeal, Recreation; Liz Park, Social Services; and David Moran, Assistant City Manager.  

ALSO PRESENT WERE: Bill Holland, Public Safety Advisory Committee; and Jim Giese, Greenbelt News Review.  

General Issues

 Mr. McLaughlin began by discussing his proposal to reestablish paired positions within the position classification system.

Mayor Davis reviewed the “other issues” identified in budget memo #3. She noted that a two-cent tax reduction by the state does not impact the City’s budget. Mr. McLaughlin stated that the new state-mandated minimum wage of $6.15 was included in the budget. He indicated that switching from midpoint to straight COLA was a budget-neutral issue. There was some discussion of calculating salary increases on midpoint versus a straight COLA.

There was discussion about “overtime practices” and “retiree prescription drug” issues. Mayor Davis indicated a desire to discuss these issues at a work session. Mr. McLaughlin noted that the budget impact of the overtime issue could result in a $25,000 expenditure reduction.  

Next, Mr. McLaughlin explained the proposal to take the 5% deferred compensation contribution and change it to salary. He then indicated that based on pension improvement legislation adopted in the recent General Assembly session, he was recommending that Council use the 5% to pay for the increased City cost for the improved pension. Mr. McLaughlin suggested that Council make no decision on either issue until more information was known on the new pension system. Council agreed.  

Regarding inspection fees, Ms. Craze reported that staff had evaluated the inspection fees. She believed the commercial fees were fair, but she noted that residential inspections were taking more time. In looking at what other jurisdictions charge for multifamily inspections, Greenbelt’s fee of $70/unit was below the area average of $108.50. She said increasing the fee to $108/unit would generate an additional $184,200. Mayor Davis suggested a two-year phase-in. Ms. Craze responded that she preferred to do it all at once. Mr. McLaughlin commented that currently, the City was bringing in more revenue than its expenses. Mr. Putens expressed concern about the impact on lower-income renters, noting that management would likely pass this fee increase along through increased rents. Mr. Herling and Ms. Mach suggested that the increased fee could be used to hire more staff and conduct more inspections. Mr. Roberts was not in favor of increasing inspection fees this year. Ms. Craze noted that her department had not considered another staff person and wanted to consider this. She noted constraints regarding office space, administrative staff, etc. Mr. McLaughlin agreed to return to Council in six months with a plan. A majority of Council agreed to a $15 per unit increase, resulting in a $72,000 revenue increase.  

Mr. McLaughlin advised Council of the status of revenue and expenditure changes that had occurred since the proposal of the budget. He noted that two FY 2006 revenue changes should fall to FY 2006 fund balance and be brought back during a future Capital Projects work session along with the projects on the “capital items” on the budget update memo. Council agreed to this approach.

 Changes to Proposed FY 2007 Budget

 Council agreed to not make a contribution to the Double Dutch group since they had not submitted the necessary paperwork to make a request.  

Mr. Roberts expressed support for a tax rate reduction. Mayor Davis indicated that Mr. Roberts should have mentioned this idea earlier in the process.  

Council added the CNG Maintenance Costs (15K) and the theater lease changes (26K) under expenditures.  

Mr. Roberts proposed raising the increase in the inspection fee from $15 to $30 and using all of it for a one-cent tax rate reduction.  

Mayor Davis proposed cutting two police cars for a savings of $45,000. She favored including the following items: MML main street, Meals on Wheels, CERT trailer, City-run post office, and increasing the fire department contribution. Mr. Putens favored eliminating only one police car and then using reserve appropriation to cover the rest. Ms. Mach was not in favor of reducing police cars. She also expressed a desire to raise part-time salaries.  

There was discussion about the value of visioning. Council agreed to add MML main street ($1,000) and half of the proposed amount for community visioning ($2,500).  

Council discussed the proposal for a Community Emergency Response Team (CERT) Trailer and Supplies. After seeking input from Bill Holland, they agreed to add $7,700 to cover the trailer and some supplies. Council also agreed to add a $600 Meals on Wheels contribution.  

There was discussion about the City-run post office. Mr. Roberts was not sure that the City should be in the post office business. Mr. McLaughlin noted that staff had not determined all the details but would likely run it from the Municipal Building in the City Manager’s Office or the Finance Department.  

A majority of Council supported a $2,000 increase in the contribution to Greenbelt Baseball and a $200 increase in the contribution to the Friends of the New Deal Café Arts (FONDCA). Council also agreed to transfer an additional $20,000 to the Greenbelt Fire Department and reduce the Reserve Appropriation by $20,000.  

Council had additional discussion of basing salary adjustments on the midpoint rather than a straight percentage of salary increase. Mr. Roberts, Ms. Mach & Mr. Herling favored sticking with the midpoint approach. Mayor Davis and Mr. Putens favored switching to a percentage of a salary.

 The meeting was adjourned at 10:45 pm.

 Respectfully submitted,

  David E. Moran

Assistant City Manager

City of Greenbelt, Maryland
City Offices, 25 Crescent Road, Greenbelt, MD 20770
Phone: 301-474-8000 FAX: 301-441-8248