Town Council

- TOWN COUNCIL INFORMATIONAL WORK SESSION AGENDA April 30, 2025 Starting at 7:00 PM I. Call to Order and Roll Call II. Pledge of Allegiance III. Informational discussion on the following: 1. Consider entering into a contract with Luckett Construction, Inc. not to exceed $15,000 to investigate existing conditions at the Chesapeake Beach Water Park Bathhouse/Office. 2. Propose Charter Amendment to amend Section C-723, “Purchasing and Contract” related to procurement requirements. 3. FY26 Town of Chesapeake Beach General Fund Budget. 4. FY26 Town of Chesapeake Beach Mitigation Fund Budget. 5. FY26 Town of Chesapeake Beach Water Park Fund Budget. IV. Closed Session - Motion to close the work session under the Statutory Authority of the Md. Annotated Code, pursuant to the General Provisions Article, §3-305(b), subsection (1)” to discuss the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation, performance evaluation of an appointee, employee, or official over whom this public body has jurisdiction; or any other personnel matter that affects one or more specific individuals. V. Adjournment 8200 BAYSIDE ROAD, P.O. BOX 400 CHESAPEAKE BEACH, MARYLAND 20732 (410) 257-2230 (301) 855-8398 Town of Chesapeake Beach FY26 Budget – Work Session 1 General Fund, Mitigation Fund, Water Park Fund  GENERAL FUND FY26 BUDGET • Revenues • Real Estate Taxes – Set rate at Constant Yield tax rate of .2835/$100 Assessment • Admission and Amusement Tax – Increased to $1,695,373. 7.5% Increase over FY25 Budget. • 5% Increase in Income Tax Revenue over FY25 Projected income of $1,590,315. • Interest on Savings estimated at $700,000. Based on 4% return on Investments.$20M of Investments. • $3.6 million - unassigned ARPA funds (with matching use of funds in expenditures) • Total revenue including the ARPA funds $12,256,790  GENERAL FUND FY26 BUDGET • Expenditures • Salaries have been adjusted to reflect cost of living and merit adjustments. Some reallocation of costs among funds and departments to reflect current work loads. • Anticipated increase in healthcare cost – 10% projected plus implementation for Time to Care Act • Additional staff wages absorbed in General Fund from the Water Park Fund – through General Fund wages, Recreation Operations salaries and Special Events • Sheriff Department services remain consistent with FY25. $1,416,080.  GENERAL FUND FY26 BUDGET • Expenditures • Trash removal cost estimated to increase up to 8% per contract. • Property Maintenance has decreased by $10,000. • Capital Projects are budgeted at $1,822,635 for projects to be funded under the five year capital projects budget. • Total Expenditures for the year are budgeted at $10,699,548. • Projected budget surplus is $1,557,242. FY26 Budget General Fund FY22 FY23 FY24 FY25 FY26 BUDGET ACTUALS BUDGET ACTUALS BUDGET Actuals BUDGET 12/31/24 BUDGET LOCAL REVENUES 100-410000 Real Estate Taxes 2,719,849 2,762,501 2,719,849 2,856,312 2,747,047 2,868,609 2,994,637 2,937,607 2,975,475 100-410100 Admission & Amusement Tax 1,314,340 2,010,767 1,729,285 1,946,700 1,809,690 1,891,340 1,576,827 404,148 1,695,373 100-410105 State A&A Tax Distributions 300,000 600,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 100-410115 Hotel Tax 105,000 90,182 100,000 124,843 100,000 88,759 100,000 100,000 100-410120 Operating Property Tax 61,536 64,614 64,614 67,053 65,680 70,228 70,227 76,746 80,583 100-410125 Penalties & Interest - Tax 3,000 10,479 3,000 15,826 10,238 11,773 6,700 12,693 100-410135 Traders License - County 860 2,650 800 3,103 800 3,787 1,000 34 3,180 100-410140 Permits, Fines & Penalties 50,000 60,015 50,000 31,770 20,432 48,725 30,000 36,884 47,600 100-410145 Interest on Savings & Investments 15,000 11,210 10,000 434,408 31,818 754,821 10,000 515,888 700,000 100-410150 Sale of Veterans Park Bricks - 200 - 100 - 400 - 400 - 100-410165 Tower Site Rental 110,000 126,626 110,000 121,526 - - - 100-410170 Cable Franchise Fee 110,000 113,987 110,000 110,311 110,000 128,324 100,000 22,649 90,000 100-410175 Speed Cameras 100,000 42,828 90,000 41,456 50,000 60,685 40,000 15,240 20,520 100-410180 Ramp Fees 10,000 5,075 10,000 19,135 - - - 100-410230 Miscellaneous Income 5,000 2,369 5,000 138,769 2,000 21,652 2,000 12,103 12,041 100-410240 Gain on Sale - - - - - 14,000 - FEDERAL & STATE REVENUES 100-420100 State Income Taxes 1,200,000 1,222,669 1,200,000 1,359,072 1,137,582 1,400,444 1,257,078 684,999 1,669,831 100-420105 Highway User Revenues 338,013 430,002 370,852 425,278 462,808 466,007 539,635 52,666 603,389 100-420110 State Aid Police Protection 56,608 58,329 54,525 65,613 65,613 42,599 63,250 13,235 53,300 100-420150 Federal Grants - ARPA - 2,080,775 2,970,557 1,374,761 2,435,527 1,338,977 866,154 OTHER REVENUE SOURCES 100-430130 Transfer In - ARPA Fund Balance - - 250,000 - 1,907,811 3,209,164 3,582,055 100-432200 Miscellaneous Grants 190,000 868,113 335,000 98,337 1,085,000 109,950 310,000 310,000 100-490000 Scrap Metal - 672 - 468 - 3,773 - 2,538 750 TOTAL REVENUES: 6,689,206 10,564,063 10,483,482 9,534,841 12,342,046 9,624,854 11,476,672 5,075,137 12,256,790  FY22 FY23 FY24 FY25 FY26 SALARIES, TAXES & BENEFITS BUDGET ACTUALS BUDGET ACTUALS BUDGET Actuals BUDGET 12/31/24 BUDGET 100-6000-602000 Salaries and Wages 548,450 539,085 544,388 521,140 472,835 428,940 525,177 302,860 424,089 100-6000-602050 Payroll Taxes - GF 43,875 42,188 45,630 42,037 36,642 32,113 43,327 15,130 33,079 100-6000-602100 Medical and Life Insurance 150,998 109,735 158,548 107,922 104,024 73,107 115,539 40,941 84,818 100-6000-602300 Retirement 94,485 96,728 98,264 88,264 85,110 74,019 94,532 47,790 76,336 100-6000-602400 Continuing Education 20,000 19,254 40,000 50,881 40,000 37,096 44,000 16,972 44,000 CONTRACTED SERVICES & FEES 100-6000-620400 Audit 26,000 23,000 26,000 26,000 26,000 26,000 9,500 7,187 8,000 100-6000-620600 Legal Counsel 80,000 64,561 80,000 130,248 131,038 131,038 130,000 73,537 130,000 100-6000-620800 SDAT Fees 11,558 - 11,558 23,116 11,558 11,558 11,558 11,558 100-6000-621100 Software Maintenance Agreement 45,000 44,456 65,000 44,666 54,500 29,178 30,000 17,839 33,000 100-6000-621200 Planning & Zoning 90,000 91,111 100,000 93,198 100,000 43,747 55,000 9,828 55,000 100-6000-621400 Engineering 100,000 79,215 110,000 63,905 110,000 51,813 110,000 18,364 110,000 100-6000-621600 IT Support 30,000 37,615 45,000 22,476 30,000 24,171 30,000 7,867 30,000 100-6000-622500 Town Hall - Building Maintenance 30,000 15,359 30,000 38,987 40,000 21,981 42,000 18,130 40,000 100-6000-623300 Printing & Publications 10,000 - 10,000 - 15,000 4,372 15,000 1,894 10,000 100-6000-623400 Library Rent - Grant 45,627 40,181 46,996 41,983 43,460 38,189 - - 100-6000-623900 Professional Fees 11,000 8,238 11,000 3,240 7,144 1,847 8,000 83 5,000 100-6000-624500 Web Maintenance 5,000 2,363 5,000 620 3,000 2,559 3,000 2,654 3,700 100-6000-624700 Document Imaging 4,000 2,778 4,000 2,862 3,000 625 3,000 385 3,000 100-6000-624800 Health Department - Rent - - - - - 20,000 OTHER 100-6000-631001 Board of Elections - - - - - - 17,000 24,409 - 100-6000-631210 Legislative Education & Travel 20,000 27,111 29,500 23,292 29,500 29,274 29,500 4,631 29,500 100-6000-631220 Dues & Subscriptions 18,000 12,035 20,000 9,212 15,000 10,219 15,000 9,873 15,000 100-6000-631300 Grants to Local Organizations 17,500 13,500 17,500 16,537 17,500 15,629 17,500 4,000 17,500 100-6000-631305 Senator M. Miller Scholarship Fund 5,000 5,000 5,000 - 5,000 5,000 5,000 5,000 5,000 100-6000-632000 Miscellaneous Expense 5,000 202 5,000 (769) 5,000 156 5,000 5,000 100-6000-632300 Office Expense 60,000 50,078 60,000 44,191 29,818 29,818 50,000 13,456 40,000 100-6000-634101 Stipends - Council 18,000 17,922 18,000 18,049 18,098 18,098 18,000 8,654 18,000 100-6000-634102 Stipends - Mayor 18,000 17,990 18,000 18,050 18,141 18,141 18,000 8,654 18,000 100-6000-634200 Recreation Reserve Fund 100,000 - 100,000 - - - 100-6000-634250 Climate Change Reserve Fund - - 250,000 - - - 100-6000-634500 Town Hall Telephone 15,150 8,056 15,150 7,777 10,000 9,545 12,000 5,525 12,000 100-6000-635000 Town Hall Utilities 22,000 23,851 22,000 25,615 31,000 27,329 31,000 10,745 30,000 100-6000-636101 Special Events 128,100 42,433 140,100 117,145 162,050 156,166 190,400 138,574 190,400 100-6000-636201 Economic Development 44,000 24,016 44,000 16,264 44,000 16,317 44,000 4,801 25,000 100-6000-636203 Economic Development Merchandise - (163) - - - - 100-6000-637010 Opioid Awareness Committee 3,000 120 3,000 1,421 3,000 2,635 5,000 296 5,000 100-6000-637020 Green Team 7,000 5,505 7,000 5,326 7,000 6,560 7,000 4,137 7,000 100-6000-637030 Rental Inspection Services 20,000 29,025 25,000 16,754 20,432 20,432 30,000 8,427 30,000 100-6000-780000 Insurance 75,000 62,064 75,000 75,703 75,000 37,011 80,000 46,175 80,000 100-6000-790000 Unspent - ARPA Funds - - 2,970,557 - 4,343,338 661,282 3,579,318 46,136 3,582,055 100-6000-800000 Uncollectable Debt - - - 1,600,000 - - -  FY22 FY23 FY24 FY25 FY26 PUBLIC SAFETY BUDGET ACTUALS BUDGET ACTUALS BUDGET Actuals BUDGET 12/31/24 BUDGET 100-6450-645500 Police - Deputy in Residence 1,338,609 1,507,804 1,405,539 1,385,892 1,476,574 1,336,414 1,410,953 1,410,953 1,416,080 100-6450-645800 Police - Other Costs - - - - 100-6450-646000 Bayfront Park & Town Beautification 60,500 33,710 60,500 37,679 50,000 36,798 50,000 22,865 36,062 100-6450-646500 North Beach VFD 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 PUBLIC WORKS - SALARIES, TAXES & BENEFITS 100-6450-602050 Payroll Taxes - Recreation Operations 3,000 2,476 3,000 2,568 3,000 2,905 3,000 2,002 9,676 100-6500-602000 Salaries and Wages 468,489 466,256 525,000 519,994 560,140 503,510 365,801 159,707 399,793 100-6500-602010 Recreation Operations - Salaries 100,000 11,261 82,000 73,049 106,856 66,782 121,853 84,350 124,057 100-6500-602050 FICA - PW 41,102 34,430 49,000 42,168 49,358 41,158 30,179 16,514 31,184 100-6500-602100 Medical and Life Insurance 147,950 83,971 170,000 98,407 161,413 91,517 134,105 41,302 115,247 100-6500-602300 Retirement 74,000 64,276 82,000 79,084 86,709 74,162 54,870 31,144 78,578 100-6500-602400 Continuing Education 5,000 6,350 10,000 11,960 7,000 6,627 8,500 2,379 8,500 PUBLIC WORKS - SUPPLIES 100-6500-665200 Gasoline & Tolls 24,750 33,134 40,000 27,651 40,000 18,113 20,000 7,194 20,000 100-6500-665400 Equipment Repair & Maintenance 30,000 29,466 40,000 36,489 40,000 29,888 40,000 14,548 40,000 100-6500-665600 Supplies 15,000 7,397 15,000 9,277 15,000 10,212 15,000 4,024 12,000 PUBLIC WORKS - CONTRACTED SERVICES & FEES 100-6500-671000 Fishing Creek Dredging - 836,043 - - 750,000 - 100-6500-672000 Holiday Lights 90,000 76,391 110,000 97,247 110,000 79,669 110,000 69,514 110,000 100-6500-673000 Road Repairs & Maintenance 20,000 11,411 20,000 5,767 - - 100-6500-674000 Trash Removal Service 550,000 539,657 550,000 570,600 590,000 585,900 595,000 351,812 632,000 100-6500-675000 Recycle Bins 10,000 9,928 12,000 9,982 12,000 5,650 12,000 9,522 - 100-6500-676000 Street Sweeping - - - - 8,100 8,100 2,700 4,050 8,100 PUBLIC WORKS - OTHER 100-6500-684300 CBOCS Oyster Program 6,900 6,212 6,900 6,900 6,900 6,029 6,900 5,004 7,100 100-6500-684900 PW - Miscellaneous Expense 2,000 713 2,000 - 2,000 154 2,000 - 1,000 100-6500-685200 Property Maintenance - General 65,000 64,524 65,000 55,643 71,000 46,869 70,000 24,040 60,000 100-6500-685220 Property Maintenance - Landscaping 140,000 138,693 150,000 191,034 190,000 173,675 190,000 91,754 190,000 100-6500-685240 Property Maintenance - Tree Trimming 10,000 8,158 20,000 28,845 30,000 18,725 30,000 12,520 30,000 100-6500-685500 Recreation Operations - General 175,000 153,289 125,000 125,625 125,000 84,194 203,000 63,523 130,000 100-6500-686000 Snow & Ice Removal 40,000 58,224 50,000 2,312 50,000 22,515 50,000 20 50,000 100-6500-686100 Storm Drain Inspection & Maintenance 20,000 7,024 20,000 14,024 20,000 20,000 8,038 20,000 100-6500-686500 Street Lights 63,000 51,839 63,000 49,293 60,000 54,348 70,000 21,486 60,000 100-6500-687000 Telephone 9,000 9,985 11,000 6,912 11,000 7,633 10,000 2,012 10,000 100-6500-687500 Utilities 8,000 4,672 8,000 13,446 8,000 13,531 16,500 6,094 16,500 CAPITAL EXPENDITURES 100-7100-725000 Capital Expenditures 1,175,013 192,777 1,482,352 795,107 1,504,808 538,484 1,844,960 414,222 1,822,635 TOTAL EXPENDITURES: 6,689,206 6,054,683 10,483,482 7,643,068 12,342,046 6,009,525 10,980,672 3,805,550 10,699,548 SURPLUS/DEFICIT: - 4,509,380 - 1,891,773 3,615,329 - 1,269,587 1,557,242 Capital Budget General Fund FY26 - FY30 PROJECT FUND FY26 FY27 FY28 FY29 FY30 Asphalt Overlay & Road Repairs GF 539,635 539,635 352,135 352,135 352,135 Railway Trail GF 75,000 - 187,500 187,500 Sidewalks GF 100,000 100,000 100,000 100,000 100,000 Safe Route to Schools GF 250,000 600,000 600,000 Miller - Loveless Park at Kellam's GF - - - - Miller - Loveless Park at Kellam's - Storm Drain GF 120,000 - - - Coastal Resiliency GF - 250,000 250,000 250,000 Stormwater Drainage Improvements GF 100,000 100,000 100,000 100,000 100,000 DNR - Fishing Creek - DNP Clean Out GF - 1,500,000 - - Town Hall - Flooring GF 20,000 - - - Town Hall - Kitchen Renovation GF 15,000 - - - Town Hall - HVAC Replacement GF 125,000 - - - Town Hall - Atrium Upgrades GF 50,000 - - - Property Acquisition - Land Improvements GF 50,000 - - - Truck Replacements GF 70,000 - - 70,000 Replace RTV GF - - 35,000 - Replace ToolCat GF - 75,000 - - Town Garage - Office Renovation GF 25,000 - - - Veteran's Park GF 75,000 - - - Kellam's - Concession Stand GF 25,000 - - - Kellam's - Access Control GF 50,000 - - - Kellam's - Baseball Field LED Lights GF 48,000 Kellam's Field - Committee Project GF 50,000 Opioid Awareness Sculpture GF 35,000 - - - TOTAL CAPITAL 1,822,635 2,564,635 1,437,135 1,659,635 739,635 Town of Chesapeake Beach Statement of Revenue and Expenditures FY2018-FY2024 General Fund 2018 2019 2020 2021 2022 2023 2024 Revenues * 6,235,352 6,432,127 6,786,122 6,699,033 10,566,165 9,539,719 9,631,347 Expenditures 6,181,294 4,900,602 4,677,015 4,568,800 6,054,721 6,057,405 6,021,843 Change in Fund Balance 54,058 1,531,525 2,109,107 2,130,233 4,511,444 3,482,314 3,609,504 Transfers Out 1,000,000 313,325 1,600,000 Net Change in Fund Balance (945,942) 1,531,525 2,109,107 1,816,908 4,511,444 1,882,314 3,609,504 Fund Balance Beginning of Year 9,420,659 8,474,717 10,006,242 12,115,349 13,932,257 18,443,701 20,326,015 Fund Balance Summary Fund Balance End of Year 8,474,717 10,006,242 12,115,349 13,932,257 18,443,701 20,326,015 23,935,519 Unreserved 12,851,778 ARPA 4,784,408 * Grants and Contributions 328,400 447,748 683,479 392,095 3,439,219 1,965,989 1,959,533 17,636,186 Included in Revenues Rainy Day 4,318,577 Fishing Creek Restoration 700,358 Highway Users 1,137,749 Prepaids 142,649 23,935,519  MITIGATION FUND FY26 BUDGET • Use of $19,200 of prior year reserves to balance budget • 7/1/24 reserve balance: $71,387 • Consistent with FY25 budget, expenses include cost for tree plantings • Updated landscaping contract to include various planting and mitigation efforts • Budget includes required allocation per capita, as a Tree City FY26 Budget Mitigation Fund FY21 FY22 FY23 FY24 FY25 FY26 BUDGET ACTUALS BUDGET ACTUALS BUDGET ACTUALS BUDGET Actuals BUDGET 12/31/24 BUDGET Interest Income 1,000 92 125 100 50 2,879 200 4,492 200 2,580 3,500 200-410145 Prior Year Reserves 88,435 - 91,769 - 91,802 - 20,500 - 20,500 - 19,200 200-430135 Critical Area Grant 1,900 - 1,900 2,000 2,000 2,000 2,000 2,000 2,000 - 200-435100 TOTAL REVENUES: 91,335 92 93,794 2,100 93,852 4,879 22,700 6,492 22,700 2,580 22,700 Bank Service Charges 250 20 125 40 125 21 100 46 100 60 100 200-6400-632800 Trees & Plantings - - - - 17,800 14,314 22,600 12,272 22,600 5,465 22,600 200-6400-634300 TOTAL EXPENDITURES: 250 20 125 40 17,925 14,335 22,700 12,318 22,700 5,525 22,700 SURPLUS/DEFICIT: 91,085 72 93,669 2,060 75,927 (9,456) - (5,826) - (2,945) -  WATER PARK FUND FY26 BUDGET General Overview • Capital Grant - $600,000 • Recognized as revenue to fund initial phases of design-build • Associated capital expenses to include $150,000 for water and sewer capital connections. • $121k funding needed to balance budget – no Water Park reserves available for use • Minimal, but unavoidable costs allocated to the fund during renovation phase • Including utilities, insurance, minor repairs & maintenance • Professional fees – audit, engineering and legal fees, security system • Increase in insurance costs, including general liability & allocation of property insurance based on asset schedule FY26 Budget Water Park FY22 FY23 FY24 FY25 FY26 BUDGET ACTUALS BUDGET ACTUAL BUDGET YTD BUDGET 12/31/24 BUDGET REVENUES 500-430130 Reserves Allocation 368,322 - 311,858 - - 121,000 - 121,000 500-432200 Miscellaneous Grants - - - - - 600,000 - 600,000 500-450110 Parties 5,517 38,923 17,500 13,137 39,183 9,393 500-450120 Daily Admissions 559,200 698,681 717,500 592,595 861,947 259,232 500-450130 Group Events 17,290 8,130 12,000 12,887 13,008 15,010 500-450135 Miscellaneous Income 500 1,326 500 28,837 500 269 500-450160 Rentals - Cabanas and Lockers 25,000 50,475 45,000 36,101 48,392 14,355 500-450165 Rentals - Pavilions 500 1,598 1,000 472 1,000 256 500-450170 Retail Store Sales 175,000 277,765 260,000 228,819 314,858 104,314 500-450175 Season Passes 80,000 212,129 130,000 146,955 410,629 7,562 500-450190 Swim Lessons 7,000 22,936 13,000 12,847 23,800 1,809 500-495000 Investment Interest 1,500 2,076 1,000 61,697 2,000 89,948 10,000 13,003 15,000 TOTAL REVENUES: 1,239,829 1,314,039 1,509,358 1,134,347 1,715,317 502,147 731,000 13,003 736,000 COST OF GOODS SOLD 500-6925-542500 Cost of Goods Sold 70,000 121,979 103,174 106,707 135,943 33,690 EXPENSES 500-6925-602000 Salaries and Wages 390,057 438,857 479,120 377,983 516,261 261,443 38 500-6925-602010 Administration - TCB 229,091 226,486 240,000 225,102 280,767 135,960 500-6925-602050 FICA 51,687 44,611 56,856 40,208 59,777 33,487 3 500-6925-602100 Medical and Life Insurance 66,894 57,521 73,583 53,287 92,653 52,021 500-6925-602300 Retirement 40,500 33,037 42,525 30,778 56,153 25,437 500-6925-623900 Professional Fees 36,000 58,076 50,000 93,050 110,000 56,780 32,000 42,341 37,000 500-6925-632000 Misscellaneous Expense (48,191) 500-6925-632800 Bank & Credit Card Fees 35,000 56,717 70,000 32,045 55,000 10,639 2,000 430 2,000 500-6925-633000 Marketing 25,000 17,633 25,000 13,113 25,000 4,320 3,000 270 3,000 500-6925-637000 Education & Travel 10,000 5,000 15,000 23,764 15,000 204 500-6925-665603 Pool Supplies 38,000 43,082 38,000 43,433 50,000 4,870 500-6925-684600 Chemicals 38,000 32,583 48,000 24,264 30,863 3,547 500-6925-685200 Repairs & Maintenance 65,000 74,628 75,000 63,191 75,000 7,740 3,000 566 3,000 500-6925-685220 Landscape Maintenance 8,600 4,850 8,600 13,275 12,000 11,875 5,938 500-6925-687500 Utilities 70,000 56,201 70,000 85,560 98,400 75,883 50,000 15,757 50,000 500-6925-741000 Capital Projects 26,000 (3,650) 69,500 12,319 57,500 6,860 600,000 2,000 600,000 500-6925-780000 Insurance 40,000 36,787 45,000 50,683 45,000 40,680 41,000 21,111 41,000 500-6925-820000 Depreciation - 105,919 - 102,692 - 90,894 TOTAL EXPENSES: 1,239,829 1,410,317 1,509,358 1,391,453 1,715,317 808,138 731,000 88,453 736,000 SURPLUS/DEFICIT: - (96,278) - (257,106) - (305,991)