City Council

DocuSign Envelope ID: 5C0D8228-F2B8-49E2-A175-F2DF2F6ECE9C MAYOR AND CITY COUNCIL CITY OF SEAT PLEASANT FISCAL YEAR 2021 BUDGET HEARING MONDAY, APRIL 12, 2021 6:00P.M. 1. OPENING 1.1.1 Call to Order Councilmember President Porter called the meeting to order at 6:03p.m. 1.1.2 Roll Call Present: Mayor Eugene W. Grant (Absent), Councilmember Monica Higgs Councilmember Hope Love (Absent), Councilmember Shireka McCarthy, Councilmember Kelly Porter, Councilmember Gerald Raynor, Councilmember Kizzie Scott Councilmember Gloria Sistrunk, Staff: Dashaun N. Lanham, City Clerk, Jeannelle Wallace, Interim City Manager 2. Meeting Topics 2.1. FY2021-2022 Proposed Budget Hearing  Mrs. Wallace stated that the City Council heard the presentation last week. The Budget team addressed the concerns from Council President Porter regarding the correct percentage being shown for each budget column.  Mrs. Wallace stated it is an honor to present the proposed budget for FY2022 budget to the honorable Mayor and City Council, residents and staff this evening. We anticipate that the city will have challenges this year due to the pandemic with the many people and family members contracted COVID. The major component for this year is a 3% for COLA and Merit at 1.5% each. We have moderate increases for certain departments across the budget. We have a major reduction in Economic Development and Public Engagement. We have budgeted for a contract for the Economic Development, and we do anticipate the reductions in 2021 to continue to throughout 2022.  Mrs. Wallace stated that we did have one new position for Deputy City Manager, but just as predicted the city budget cannot withstand to fund the position. The Enterprise Revenue Fund was removed due to the monies being allocated in Environmental Justice. Page 1 of 3 DocuSign Envelope ID: 5C0D8228-F2B8-49E2-A175-F2DF2F6ECE9C  Mrs. Wallace stated that In Fiscal Year 2022, Tax revenue will account for about 38.1% of the General Fund revenue projected to be collected annually. For the tax year beginning July 1, 2021 the estimated real property assessable base will increase by 2.7% from $319,174,604 to $327,925,359. If the City of Seat Pleasant maintains the current tax rate of $.58 per $100 of assessment, real property tax revenues will increase by 2.7% resulting in $50,754 of new real property tax revenues. To fully offset the effect of increasing assessments, the real property tax should be reduced to $ .5645, the constant yield rate. The City is considering not reducing its real property tax rate enough to fully offset increasing assessments. The City proposes to adopt a real property tax rate of $.58 per $100 of assessment. This tax rate is 2.7% higher than the constant yield tax rate and will generate $50,754 in additional property tax revenues. • License and Permits: In FY 2022, License and Permit revenue will account for about, .47% of the General Fund revenue projected to be collected annually. This number represents county business license fee, disposal fees, and bank stock tax bus shelter revenues, Highway User and Police state aid collected by the city. • Intergovernmental Revenues: In FY 2022, Intergovernmental revenue will account for about 2.5% of the General Fund revenue projected to be collected annually. • Violations: In FY 2022, violation payments are projected to account for nearly 51% of the General Fund revenue. The violations that fall under this include vehicle releases, packing citations, housing code violations, vacant property/lot registrations, code enforcement inspection fees, red light camera violations, and speed camera violations. • Grants: It is projected that grants will account for about 1.6% of the General Fund revenue collected annually. Some but not all grants that fall under this category include the community development block grant, the NPAL grant, and the COPS hiring grant. We far exceeded the grants from last year and we anticipate this may be the same for this year. However, it is very difficult to determine with the grants.  Mrs. Wallace provided the revenue and expenditures for the FY2022 budget.  Mrs. Wallace stated that we have a balance budget for FY2022 in the amount of $12, 459, 425. Page 2 of 3 DocuSign Envelope ID: 5C0D8228-F2B8-49E2-A175-F2DF2F6ECE9C 3. CITIZEN’S COMMENTS:  The City did not receive any written or oral citizen comments. 4. ANNOUNCEMENTS 4.3 Fiscal Year 2022 Budget Hearing, Saturday, April 17, 2021, by Zoom Video from 10:00am-11:30am. Meeting link details will be on the city's website, Seat Pleasant, MD 4.4 Fiscal Year 2022 Budget Review, Saturday, April 17, 2021, by Zoom Video from 12:00pm-5:00pm. Meeting link details will be on the city's website, Seat Pleasant, MD 4.5 Regular Work Session, Monday, May 3, 2021, by Zoom Video at 6:00pm. Meeting link details will be on the city's website, Seat Pleasant, MD Adjourn: The Budget hearing adjourned at 7:04 p.m. Submitted by, Dashaun N. Lanham, CMC City Clerk Page 3 of 3