BOCC Budget 5/26/03

After the invocation and pledge, the bills and minutes were approved.  McK noted the BOCC will attend the funeral of Becky Proffitt.  The County administrator began by presenting two draft agendas.  Comm Raley noted that someone will come from the Governor’s office to brief the BOCC on Charter Schools.  Forrest said letters are being sent to the Superintendent’s office.  McKay said there was another person who should receive a letter.  

Bill Tench, Court Administrator, came to ask for a budget amendment to move unused grant funds to Mileage reimbursement account.  McKay reminded him that the recorder was supposed to bring savings.  Tench replied there have been some savings, but there has also been an upsurge in requests for jury trials.  The vote was 5 -0 in favor.  Tench noted they received $15,000 from the Maryland Law Library that was not expected.  He said they can give back $15,000 of their request for $15,000 for the Law Library.   The vote was 5- 0

Carolyn Laray and John Savich came to ask for transfer of funds from postage to printing because there has been an increase in requests for information. $5,000 was moved to postage.  The vote was 5 - 0.  McK asked if the material was on the web site.  Laray said no, but it will be put there.  Raley asked if there would be enough in the printing budget and was told we are not mailing the visitor guides, but rather the quick guides.  We will have to reduce advertising to pay for printing, Savich said, all three work together.  We are almost ready to do bulk mailing.  The vote was 5 - 0.

Next Donna Sasscer said that 10% of funds for ag preservation can be used for the Farmers’ Market.  There is money either for land preservation of Farmer’s Market.  The County’s match can be in kind in terms of the design of the parking lot.  Jarboe asked if Charles County would be contributing.  Sasscer suggested a letter to Charles County.  Raley said this would be a good area for Jarboe to use his persuasive powers.  The vote was 5 - 0 in favor.  

Phil Cooper of the Emergency Management Agency asked to have authorization for signature of a $67,.933.14 homeland security grant.  This indicates we are interested in continuing the equipment grant.  We are including Leonardtown, as well are equipment for volunteers who respond to hazardous materials.  The vote was 5 - 0.

Denis Canavan came to request authorization for conduct public hearings on two growth allocation requests which have been approved by the Planning Commission.  McK said he thinks the property has already been utilized.  Forrest said the Gardiners have not built.  Lacey has not been approved.  Norris whispered in Canavan’s ear that is has been deducted.  The vote was 5- 0.

Gene Carter from the Office on Aging presented the annual grant which underwrites part of the adult medical day care.  The amount covered, he said, is based on a sliding scale.  He was asking authorizing McK to sign the FY ‘04 MOU for $82,814.

Phil Rollins came for authorization to award a contract to Great Mills Construction Company for $1,452,073.  McK asked why the bills continue for a consultant.  Rollins said the consultant has always done the engineering.  McKay asked again about the consultant.  Rollins said there were several projects going, they contracted a project manager to oversee the work and work out issues between contractors and design engineers.  McK asked if our facilities management department couldn’t do that.  Rollins said some of it requires expertise we don’t have.  It was noted that both the Court House and the Library had project managers.  Mattingly asked if the Public Works could oversee the construction projects.  McK said every park has a consultant.  Mattingly said he doesn’t like consultants either.  Rollins said it boils down to either hiring a person or hiring a consultant.  Raley said the need came through loud and clear with the Library project.  We didn’t have a project manager for the Library and roof was installed incorrectly.  Raley said they could look to Richard’s and Erichsen’s project.  Rollins said we piggybacked on a Board of Education project.  Jarboe asked if this project has been overseen by the Procurement Committee and was told no.  He continued there was only one bid.  Kramer said it was advertised and there was only one bid.  3 or 4 potential bidders were at the pre bid meeting.  Forrest asked if we are changing the role of the Procurement Committee.  Jarboe said if were have a project of a million dollars with only one bid.  People question why one company is the only one that bids.  Why do contractors back off?  Kramer said this has been a topic of extensive discussion.  She blamed the time when it’s bid and how it relates to their own workload.  McK said this contractor is not being questioned.  Some contractors, he said, won’t do business with St. Mary’s County. Mattingly said he wants a high quality, attractive buffer included in the contract.   McK said he hope we wouldn’t use the 8% contingency.  Rollins said they wont spend that if it’s not needed.  The vote was 5 - 0 to approve.

After the funeral, the BOCC took up the budget.  The session was very well attended.  Here’s a partial list.  From the Board of Education and School System: Superintendent Richardson, Deputy Superintendent Fulton, Dan Carnes (financial officer), Steve Kracinovich (Board of Ed Chair), Kathy Allen (Vice Chair), members Bill Mattingly, Mary Washington Sol Raspa; employees Ed Kaplin, Linda Dudderer, Mr. Ridgell; staff members George Erichsen, Phil Rollins, John Savich, Richard Rohrbaugh, Robin Finnacom, Cynthia Brown, Randy Schultz; Sheriff Zylak and Captain Cusick.  

Elaine Kramer and Jeannette Cudmore presented.  

Kramer began by explaining that the appropriation ordinance is at the Departmental and CIP level.  The numbers we get to today, she said, will be what’s in the ordinance.   The sheets for Lexington Manor and the Navy museum are included.  We might have to change the FY ‘04 amount for St. Jerome’s Creek (State Funding only).  McK said Raley had hoped to address the access road but that is not in this year’s capital budget.  Raley intends to push the Pegg’s Road extension included in ‘05.   Raley asked if the Ridge gym is included and was told yes.  McK said Debbie Drury said her mother has a place for the dredge spoils.  

Kramer talked about the revolving fund budgets, R & P, Wicomico, Medical Adult Daycare.  Raley asked to go back to CIP and he wants to have the trailer and 3 rolloffs should be in the CIP.  Kramer said that’s not for the capital budget.  Raley asked the BOCC to hold that thought.  Jokes about “hold that thought” followed.  The blue sheets (revolving fund budgets), said Kramer, are intended to be self balancing over time.  The R & P Enterprise Fund has been revised to exclude the $55,000 subsidy from the BOCC general fund.  McK asked if there would be a separate enterprise fund for the pool.  Kramer said all funds are individually self balancing and separately accounted for.  McK noted there is now a $52,000 shortfall in the enterprise fund and was told yes.  He asked if the debt service included the $1.2 million and was told yes.  The clubhouse is in a prior year.  Raley noted the enterprise fund has a $45,000 deficit.  Kramer said the idea is to have them self balancing, but there are times when, for instance, there has been excess revenue which later is spend.  Raley said the Medical Adult Day Care is showing an increasing deficit and that’s a problem.  

Kramer noted there have been appeals from parties, such as a request for an increase if the fire tax in two districts - Bay District ($.01) and 2nd District.  Bay District will have a negative of $11,000 in this year’s budget.  Bay District didn’t say how much.  McK asked if 2nd District was aware that the rescue money has been increased.  McK said he would not sit here and increase fire taxes every year.  Mattingly said the rate is based on the budget and some had dropped back.  Kramer noted that the revolving fund commitment has been withdrawn.  Raley said that means the equipment to be purchased could use the revolving loan fund.  Kramer said 2nd district thinks we didn’t have the revolving loan fund available.  She hesitates to direct them to use the revolving loan fund.  Mattingly noted that pumpers have gone from $50,000 to $400,000 plus.  There are new standards that require the purchase of new equipment.  The decided they could go back to the two organizations and tell them

Kramer went on to say there are no specifics as to how the budget will be balanced.  So they guessed what might be needed.  They saw what the County got .91% of total State Aid to Counties.  All funds are not eligible for reduction (retirement and public school money are not eligible).  No one knows how much the State will cut.  Kramer made two calculations - one based on $100,000,000 and one based on $135,000,000.  St. Mary’s and it’s Health Department could lose between $913,217 (at $100,000) and $1,366,304 (at $135,000).  If the “Rainy Day Fund’ remains at $1,000,000 and credit reserves remain at 6%, there are several options.  First, the distribution this Friday is 6% higher than last year.  She suggests the 2% for Corrections and the County ($210,000), turnover savings ($300,000), 10% reduction in non county agencies ($125,000), increase fees mid-year ($200,000), enterprise fund for Solid Waste ($850,000), inclusion of bond sale costs in the CIP ($120,000), and she recommended a number of deferrals of equipment costs which totaled $149,998.  McK said you would freeze these funds?  Kramer said yes.  McK said the State has spent 11% more money than its revenue for two years.  For us to count on fund balance as our backup is to say we are prepared to raise taxes next year.  McK said he thinks the number should be about a million dollars. He thinks we should wait.  Kramer said she thinks we should know where we can go, but do nothing.  Wait for the signed budget.  We would know what the June and August distributions are.  Kramer wants the State to release the $100,000,000 of county revenues which are being withheld by the State. McK said we need to preserve the accounts and not release the money until the State finishes its budget.  McK asked to have the 2% COLA removed.  The COLA will be removed from the list of potential changes.  

Then they took of suggested Board of Ed changes.  Kramer said money approved would have to be placed in categories by the BOCC.  She suggested more money for teachers, textbooks, and employer contribution for healthcare.  The County had identified $114,660,904 as the Board of Ed’s total funding.  ‘03 was $108.503.071.  She removed 8 teachers and 8 paraeducators for all day K which is not yet mandated for a total of $608.400.   She recommended deferring Navy JROTC> She removed the ALC principal at $89,250.  She added $250,000 for an increase in textbooks.  She deferred technology replacement.  Defer Rollover of nurses.  She removed the staff attorney. grant writer, secretaries.  She noted that the $2,095,000 in healthcare costs would be removed if the plan were converted to 85% PPN. Rate increase for transportation would be phased in mid-year (at this point Dement left the table).  She added 2% for teachers to bring them to a 3% COLA and eliminated $40,000 for consultants for negotiation, and left $150,000 for other reductions to be accomplished.  McK asked what % of budget is spend on the Board of Ed.  McK said Calvert is 46.?, St. Mary’s is 45., and Charles is 43%.  Kramer said the budgets are not comparable.  Charles includes non public bus transportation - we don’t.  When adjusted Calvert is 46.1, and Charles is 43.3%.  We spend $7,038, which is a few dollars higher than Calvert and Charles, per pupil.  The wealth per student is higher in Calvert.  McK say there should be a better working relationship between this Board and the Board of Education.  He would like to see us go back and identify cuts to provide additional funds for the Board of Ed.  He wants an agreement on how to hold the line on administrative costs.  He wants to know why our fourth graders don’t visit the St. Clements Island Museum.  He wants to meet with Dr. Richardson tomorrow and come back with a recommendation.  Mattingly said he is concerned about allocating funds and having to make dramatic cuts.  He wants firm figures from the State.  He doesn’t want to make adjustments now and have to do it again.  Mattingly said he would like to come to some conclusion on employees’ health benefits.  Raley said he hears that McK would like to find more money for the Board of Ed, but would like to have the money used for teacher salaries and textbooks.  Raley said if we do as McK proposes, can they legally impose conditions on the Board of education in exchange for the extra half million?  Raley said what happened in Annapolis was disgusting.  Can we increase Board of Ed funding in the light of everything.  McK said we legally can bring funding back to maintenance of effort and put money aside for chartered schools.  Everybody is aware of the issues, said Mattingly.  He doesn’t want to tell the elected Board of Ed what to do.  He hopes they will make their judgments based on what the public wants.  He wants to know we will have the money.  Raley said we do know the Board of Ed will have 400 more children next year.  Raley thinks we should do the allocation.  McK said it will not be easy to get the $585,000.  We might get to half a million, said Jarboe.  Jarboe said the money has to come now.  They are hiring now and buying textbooks now.  The State let the Board of Ed down when they took back the $585,000.  He wants our per student expenditure to remain the highest in the area based on good faith and working with the Board of Ed.

George Forrest said we have to stick to the budget.  He doesn’t like the budget amendments.  I left at 4:30.