Mayor & Common Council Meetings

AMENDED AGENDA CITY OF WESTMINSTER Special Mayor and Common Council Meeting Monday, May 1, 2023, at 4:00 pm City Hall, 1838 Emerald Hill Lane, Westminster, MD 21157 City YouTube Channel Link 1. CALL TO ORDER 2. COMMITTEE APOINTMENT A) Ms. Robin Skrtic appointment to the Board of Elections 3. PRESENTATION A) FY 24 Budget Presentation – City Administrator Imhulse 4. ORDINANCES AND RESOLUTIONS A) Introduction of Ordinance 2023-03 (FY 24 Budget), an Ordinance of the Mayor and Common Council of Westminster, Maryland Approving and Adopting a Budget for the Fiscal Year beginning July 1, 2023, and ending June 30, 2024 – City Administrator Imhulse 5. PUBLIC HEARING A) Ordinance 2023-03 (FY 24 Budget), an Ordinance of the Mayor and Common Council of Westminster, Maryland Approving and Adopting a Budget for the Fiscal Year beginning July 1, 2023, and ending June 30, 2024 – City Administrator Imhulse 6. COMMON COUNCIL COMMENTS 7. CITIZEN COMMENTS 8. ADJOURNMENT FY24 Proposed Budget Highlights May 1, 2023 Honorable Mayor, Council President, and Members of the Common Council: I am pleased to present the adopted Fiscal Year 24 (FY24) operating budget and Capital Improvements Program for the City of Westminster. The City’s annual budget determines the manner in which services will be delivered to the community during the coming year, and its adoption is the most important legislative action that my Common Council colleagues take each year. Several factors had a significant impact on the crafting of the budget proposal, as described below. • For the eleventh year in a row, the real property tax rate of $0.56 per $100 of assessed valuation will be held constant. • In FY24 water rates will go up by 3.5% while sewer rates will increase by 5%. • The consumer price index indicated that the cost of goods and services has increased by 6% from February 2022 to February 2023. The FY24 budget reflects increases in costs for goods, such as parts, equipment, and fuel, as well as contractual and engineering services. The FY24 proposed operating budget, across all funds, totals $33.04 million. The FY24 proposed capital budget, across all funds, totals $27.81 million. Advancement of the Strategic Plan The proposed FY24 budget will advance the objectives of the City’s Strategic Plan, adopted initially by the Mayor and Common Council in November 2022. The Plan’s priority initiatives are framed within Critical Success Factors that exemplify the elected body’s long-term vision for the Westminster community. Those Critical Success Factors are Strong Partnerships and an Engaged Community; Water and Sewer Capacity for Future Generations; Economic Activity and Growth; Responsible Stewardship of City Resources; and A Safe and Livable Community.  FY24 Proposed Budget Highlights Below are some of the initiatives that will be undertaken in FY24, and the associated Critical Success Factor to which they pertain: • Strong Partnerships and an Engaged Community: Mayor and Common Council are prepared to review and modify the City code to update and modernize the elections sections. • Strong Partnerships and an Engaged Community: The Information Technology Department is reviewing the City website to make recommendations for overhauling it. • Water and Sewer Capacity for Future Generations: the City intends to appoint a new Public Works Director by FY24 • Economic Activity and Growth: The Capital Fund includes funding for pedestrian improvements and an expansion of the holiday lights on Main St from John/Bond St to Center St. • Economic Activity and Growth: There is funding in the Capital Fund for a master planning effort to establish a new vision for the development and redevelopment of downtown Westminster. • Responsible Stewardship of City Resources: the City received State funding to cover the fiber debt service in FY24. • A Safe and Livable Community: Staff have applied for Federal and State funding for trail improvement and linkages at Wakefield Valley Park. Certain Strategic Plan objectives do not require a specific budgetary allocation, as their advancement is tied to the utilization of existing staffing resources. The preparation of the budget is a significant undertaking by the City’s Management Team and other staff members, and I offer my sincere thanks to all who played a role in its development, including Director of Finance Theresa Rodgers, Director of Housing Services Eric Brown, Human Resources Director Eltaray McCullough, Director of Recreation and Parks Abby Gruber, Director of Planning and Community Development Mark Depo, Police Chief Thomas Ledwell, Deputy Director of Public Works John Dick, Streets Department Superintendent Steve Strawsburg, Utilities Superintendent Cory Stouffer, Sewer Department Superintendent Vance Summerhill, Water Department Superintendent Bret Grossnickle, Executive Assistant Erica Kirkner, and City Clerk Doug Barber. I would like to particularly acknowledge the contributions of Krista Gardner from Smith, Elliott, Kearns and Company (SEK), who provided invaluable assistance as the City’s interim Finance Director. I also wish to express my gratitude to Mayor Becker and the members of the Common Council’s  FY24 Proposed Budget Highlights Finance Committee (Council President Pecoraro and Councilmember Hoff). They devoted considerable time to review the FY24 budget proposal, and their guidance and direction were instrumental in the budget’s development. City staff and I look forward to working with the Mayor and Common Council to finalize a budget for FY24 that enhances the quality of life in the Westminster community and continues to advance the objectives of the City’s Strategic Plan. Respectfully, Sara Imhulse City Administrator  FY24 Proposed Budget Highlights Economic Climate The City’s budget is impacted by the national economic climate and the state and local economies. The proposed FY24 budget is being presented when the nation and the State of Maryland have an economic downturn. CPI has increased by 6% from February 2022 to February 2023. In FY23 the City hosted its festivals, such as Fall Fest, Miracle on Main, and Wine Stroll, at higher- than-expected attendance rates. The FY24 General Fund operating budget includes full funding for these important community events. FY24 Budget Overview The proposed FY24 budget accounts for the City’s financial activities through six primary funds or fiscal entities – the General Fund, Public Housing Agency Fund, Water Fund, Sewer Fund, Fiber Fund, and the Capital Projects Fund. The General Fund accounts for the day-to-day operational activities of the City, such as planning, police protection, snow removal, and general administration. The General Fund accounts for approximately 53% of the City’s proposed operational spending in FY24. Other significate funds include the City’s enterprise funds: Water, Sewer, and Fiber. These enterprise funds operate and account for their transactions like private businesses. By policy, they must be self-supporting, with their fees covering operating costs, capital projects, and debt service costs. Utility rates and other user fees charged to Westminster households, businesses, and those outside the City limits, support the Water Fund and the Sewer Fund. The Capital Projects Fund accounts for the City’s capital expenditures. FY24 CIP projects include the implementation of the City’s water reuse project PUREWater Westminster, the replacement of a water main at Route 27 and Main St, HVAC upgrades to the City Administration Building, completion of the City’s municipal pool, the continuation of the City’s inflow and infiltration project, street improvements, acquisition of vehicles/equipment, replacement of boilers at 45 W Main, purchase of a new generator for the Police Department headquarters, sidewalk retrofit work to ADA standards, enhanced holiday decorations for Main Street, equipment upgrades at the water plant, enhancements and upgrades at the water reclamation plant, and implementation of the Wakefield Valley Park master plan. Property Assessments and Tax Revenue Real property in Maryland is assessed on a triennial basis. For homeowners in the City, any increase in assessed value is phased equally over a three years. The resulting increase in the real property tax bill is capped by the Carroll County Commissioners at seven percent. Any decrease is fully factored into the first full levy year after the assessment. According to the Maryland State Department of Assessments and Taxation (SDAT), the City’s assessable real property base (net) for FY24 is estimated to increase by approximately $47.8 million, or 2.34%, from the prior year. This increase results from higher assessments from the reassessment cycle and new properties added to the tax roll.  FY24 Proposed Budget Highlights The proposed budget for FY24 is predicated on the continuation of the $0.56 real property tax rate. The FY24 Constant Yield Tax Rate is $0.5472 per $100 of assessed valuation. Staffing and Personnel Costs The FY24 budget includes the following staffing changes: three new employees in the Water Reclamation Department, one new employee in the Utilities Maintenance Department, and the modification of one grant-funded civilian position in the police department to a City-funded position. Health insurance costs will increase by 14% in FY24. The Maryland State Retirement and Pension System contribution rate for the City’s non-sworn staff will increase from 10.93% to 11.32%. The Law Enforcement Officers’ Pension System (LEOPS) contribution rate will increase from 36.2% to 36.91%. In March 2019, the Legislature overrode the Governor’s veto of the Fight for $15 bill. The State minimum wage will be steadily increased until it reaches $15.00 per hour as of January 1, 2025. The impact of the increased minimum wage is reflected in the General Fund operating budget for part-time and seasonal employees. General Fund Revenues The General Fund supports many of the City’s core services and administrative functions. Fund revenues for FY24 are projected to total $17.9 million – an increase of 4.5% compared to the prior year’s budget. Real property tax revenue is the single largest General Fund revenue source, representing 63.8% of fund revenues in FY24. As mentioned earlier, the real property tax rate is proposed to remain the same. This revenue source is expected to generate approximately $11.4 million in the General Fund. Income tax receipts account for about 11.2% of General Fund operating revenues in FY24. This revenue source, budgeted at $2 million, is the City’s share of income taxes the State of Maryland received for returns filed from Westminster. FY24 income tax receipts have been budgeted based on what we anticipate receiving in FY23. Another significant revenue source that supports General Fund expenditures is monies received from Carroll County under the County/Town agreement. The City is expected to receive approximately $1.09 million from this source. General Fund Expenditures Personnel costs are the primary cost driver for the General Fund. The budget proposal for the General Fund reflects the continuation of the City’s current complement of services. Notable initiatives included in the General Fund for FY24 include the following: • The Legislative and Administrative Services budget includes an allocation for a strategic planning and team building retreat  FY24 Proposed Budget Highlights • The City intends to appoint a new Public Works Director by FY24 • The Police Department will continue implementing a body-worn camera program. • The City is providing financial support to the Westminster Volunteer Fire Department in the amount of $125,000. Additionally, FY24 will offer grant awards to the Westminster Municipal Band ($10,000) and the Heart of the Civil War Heritage Area ($7,500). Water Fund The Water Fund accounts for all financial activity associated with the producing, treating, and distributing potable water. The City provides service to locations in Westminster and outside the City limits. In FY24 water rates will increase by 3.5%. Water Fund revenues are projected to total about $6.45 million in FY24. FY24 Water Fund operating expenditures total approximately $5.97 million. Sewer Fund The Sewer Fund accounts for the financial activity associated with collecting and delivering sewage for treatment and disposal. Charges are based on water consumption. FY24 sewer rates will increase by 5%. Sewer Fund revenues are projected to total about $7.9 million in FY24. Sewer fund operating expenditures will total approximately $7.8 million. Fiber Fund The Fiber Fund accounts for the financial activity associated with the City’s construction and operation of the Westminster Fiber Network, a community-wide gigabit fiber network. Fund revenues are projected to total about $1.7 million in FY24. Fiber Fund expenditures will total approximately $1.5 million. Fiber Fund expenditures include a grant to the Mid-Atlantic Gigabit Innovation Collaboratory (MAGIC) for $100,000.  FY24 Proposed Budget Highlights Capital Projects Fund The Capital Projects Fund accounts for financial activity for capital projects in General Fund, Sewer Fund, and Water Fund. The Capital Improvement Plan (CIP) outlines project expenses and funding sources over a period of five years. FY24 Capital Fund expenditures total $27,814,572. General Fund revenues in excess of operating will be transferred to the Capital Projects Fund to help fund planned projects. The FY24 Capital Project Fund budget includes $11.6 million in Federal, State, and County grants. The FY24 Capital Project Fund budget allocates restricted funds collected from benefit assessments: $313,244 in general fund capital projects, $1,375,000 in sewer fund capital projects, and $234,628 in water fund capital projects. Examples of FY24 projects include: • Water Reuse Project • Water Main Replacements at Route 27 and Main St. • Westminster Municipal Pool completion • Wakefield Valley Park improvements • Infiltration and Inflow project These projects will advance the City’s strategic planning objective of being a responsible steward of resources through appropriate investment in its infrastructure. American Rescue Plan Act of 2021 Funding (ARPA) The American Rescue Plan Act of 2021 was passed by the 117th United States Congress and signed into law on March 11, 2021. Under the $360 billion Coronavirus State and Local Fiscal Recovery Funds, every level of government will receive funding regardless of size. The City of Westminster received $18 million. Allowable uses of the monies include but are not limited to, making necessary investments in water, sewer, or broadband infrastructure. Funds may not be used to support any pension fund or offset a tax cut. The United States Treasury Department issued reporting guidelines. Federal funds have a significant number of associated conditions, including procurement, asset tracking, segregation of funds, records retention, reporting, and single audit requirements. The City has elected to utilize the $10 million revenue loss option. The remaining $8 million will be allocated to water and sewer projects. The City’s five-year Capital Projects Plan is as follows: 2024 2025 2026 2027 2028 PROJECT COSTS Recreation $ 7,375,103 $ 4,974,988 $ 182,946 $ 328,971 $ 35,000 Streets 4,186,160 2,810,536 1,820,048 2,638,471 1,929,534 Facilities 1,167,600 - - - - Debt Service 664,452 551,412 415,288 409,815 415,700 Police Department 530,894 210,363 183,863 190,363 151,164 Planning and Zoning 200,000 50,000 50,000 50,000 50,000 Technology 200,000 150,000 100,000 100,000 100,000 Sewer 2,682,000 14,536,515 1,520,000 1,606,800 1,947,000 Water 10,808,363 4,220,000 130,000 1,750,000 2,447,500 TOTAL 27,814,572 27,503,814 4,402,144 7,074,419 7,075,898 FUNDING Use of Fund balance / Transfers General Fund 2,430,071 2,274,274 1,533,065 2,348,539 1,612,318 Sewer Fund 1,389,000 1,653,000 1,532,000 1,566,900 1,698,000 Water Fund 1,475,000 676,000 208,000 384,900 2,796,500 Capital Projects Fund 143,027 - - - - Benefits Assessment Funds 1,922,872 500,000 - - - Special Revenue Sources / Agreements ARPA Funds 7,063,581 - - - - Other Federal Funding 8,850,000 - - - - ENR related funds / loans - - - - - State Funds 862,500 - - - - Highway User Funds 1,667,292 835,000 835,000 835,000 835,000 Other Funding 98,500 20,500 25,500 20,500 15,500 County Funding 1,512,730 - - - - Grants 400,000 4,350,000 125,000 1,850,000 50,000 TBD - 17,195,040 143,580 68,580 68,580 27,814,572 27,503,814 4,402,144 7,074,419 7,075,898 $ - $ - $ - $ - $ -  ORDINANCE NO. 2023-03 OF THE MAYOR AND COMMON COUNCIL OF WESTMINSTER, MARYLAND APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2023, AND ENDING JUNE 30, 2024 WHEREAS, in accordance with the requirements of Md. Code Ann., Title 5 of the Local Government Article, Section 41 of the Charter of the City of Westminster, and Chapter 20 of the Code of the City of Westminster, the Mayor and Common Council are required to adopt a budget ordinance to appropriate funds for the several programs and purposes for which the City of Westminster must provide in the fiscal year beginning July 1, 2023 and ending June 30, 2024 (“Fiscal Year 2024”) and to set the property tax rates for Fiscal Year 2024; and WHEREAS, the Mayor, as required by the City Charter, on or before June 15, 2023, prepared and presented to the Common Council a proposed budget outlining the anticipated expenditures and transfers for Fiscal Year 2023, and including the estimated revenues and other financing sources required and establishes the proposed tax rate for all real property taxes, personal property taxes, and public utility taxes; and WHEREAS, the Common Council held a public hearing with respect to the Constant Yield Tax Rate and the proposed budget on April 24, 2023, after appropriate notice thereof in a newspaper having general circulation in the City, NOW, THEREFORE, BE IT ORDAINED by the Mayor and Common Council of the City of Westminster that: Section 1: From and out of the monies and balances known to be in the City’s General Fund, Capital Projects Fund, Water Fund, Sewer Fund, Fiber Fund, and Public Housing Fund, and from all monies anticipated to come into all funds during the twelve (12) month period ending June 30, 2024, there shall be, and hereby are, appropriated the following sums for use by the departments and offices of the City, and for the objects and purposes for which the City must provide during Fiscal Year 2024: General Fund Revenues Taxes $14,533,785.00 License and Permit $524,801.00 Intergovernmental $1,636,115.00 Charges for Services $973,833.00 Fines & Forfeitures $33,333.00 Miscellaneous Income $76,026.00 Interest Income $150,000.00 General Fund Appropriations by Activity Executive & Legislative $913,550.00 Finance $326,047.00 Human Resources $213,211.00 Planning, Zoning, and Development $388,103.00 Housing and Preservation $125,987.00 Public Safety Department $8,943,305.00 Facilities $418,569.00 Public Works $4,157,579.00 Technology $456,727.00 Recreation and Parks $1,718,942.00 Total General Fund Revenues: $17,927,893.00 Total General Fund Appropriations: $17,662,020.00 Difference: $265,875.00 Transfer of FY23 surplus to Capital Fund: $265,875.00 Public Housing Agency Fund Revenues $3,246,956.00 Expenses $3,389,434.00 Transfer from HUD reserves $142,478.00 Capital Projects Fund Funding Sources General Fund $2,430,071.00 Sewer Fund $1,389,000.00 Water Fund $1,475,000.00 Benefits Assessment Funds $1,922,872.00 ARPA $7,063,581.00 Capital Projects Fund $143,027.00 Highway User Revenue (HUR) funds $1,667,292.00 Intergovernmental $11,625,230.00 Other Funding $98,500.00 Capital Projects Fund Appropriations by Activity Recreation and Parks $7,375,103.00 Streets $4,186,160.00 Facilities $1,167,600.00 Debt Service $664,452.00 Police Department $530,894.00 Planning and Zoning $200,000.00 Technology $200,000.00 Sewer $2,682,000.00 Water $10,808,363.00 Total Capital Fund Funding $27,814,572.00 Sources: Total Capital Fund Appropriations: $27,814,572.00 Difference: $0.00 Water Fund Revenues Charges for Services $5,793,984.00 Rental Revenue $264,000.00 Interest Revenue $50,000.00 Benefit Assessment $350,000.00 Water Fund Appropriations by Activity Executive & Legislative $369,855.00 Finance $350,483.00 Human Resources $206,637.00 Planning, Zoning, & Development $159,943.00 Facilities $54,703.00 Public Works $356,500.00 Technology $451,500.00 Utilities $1,128,773.00 Water $2,899,680.00 Total Water Fund Revenues: $6,457,984.00 Total Water Fund Appropriations: $5,978,074.00 Difference: $479,911.00 Transfer of FY23 surplus to Capital Fund: $479,911.00 Sewer Fund Revenues Charges for Services $7,482,030.00 Other Revenue $0.00 Interest Revenue $100,000.00 Benefit Assessment $370,000.00 Sewer Fund Appropriations by Activity Executive & Legislative $365,866.00 Finance $352,283.00 Human Resources $206,624.00 Planning, Zoning, & Development $159,942.00 Facilities $47,219.00 Public Works $355,251.00 Technology $451,504.00 Utilities $1,202,274.00 Sewer $4,739,315.00 Total Sewer Fund Revenues: $7,952,030.00 Total Sewer Fund Appropriations: $7,880,278.00 Difference: $71,752.00 Transfer of FY23 surplus to Capital Fund: $71,752.00 Fiber Infrastructure Fund Revenues Charges for Services $838,667.00 Other Financing/ loan proceeds $920,984.00 Fiber Infrastructure Fund Appropriations by Activity Executive & Legislative $23.00 Finance $6,000.00 Public Works $92,205.00 Technology $46,837.00 Utility Maintenance $112,625.00 Fiber $1,260,611.00 Total Fiber Infrastructure Fund Revenues: $1,759,651.00 Total Fiber Infrastructure Fund Appropriations: $1,518,301.00 Difference: $241,230.00 Section 2. The Tax Levy for all real property within the City’s corporate limits for the tax year beginning July 1, 2023 and ending June 30, 2024 shall be Fifty-Six Cents ($0.56) on every One Hundred Dollars ($100.00) of assessed value. The Tax Levy for all personal property within the City’s corporate limits shall be One Dollar and Ten Cents ($1.10) on every One Hundred Dollars ($100.00) of assessed value. The Tax Levy on all public utility operating property within the City’s corporate limits shall be One Dollar and Forty Cents ($1.40) for every One Hundred Dollars ($100.00) of assessed value. The aforementioned Tax Levy rates are inclusive of the special tax levied for the purposes of paying for the light and water used by The Mayor and Common Council of Westminster, as authorized and directed by Section 31 of the Charter of the City of Westminster. Section 3. The taxes levied for the aforesaid respective purposes for the tax year beginning July 1, 2023 and ending June 30, 2024 shall be due and payable July 1, 2023 and shall be subject to interest beginning October 1, 2023 at the rate of 2/3 of 1 per centum for each month or fraction thereof until paid, and additionally, a 1/2 of 1 per centum penalty assessment for each month or fraction thereof until paid, provided that taxes paid by owner-occupants of residential property shall be due and payable as provided in § 10-204.3 of the Tax-Property Article of the Annotated Code of Maryland and § 143-3 of the City Code which authorize semiannual and annual payments of taxes. Additionally, taxes paid by owner-occupants of residential property on a semiannual basis as provided in § 10-204.3 of the Tax Property Article of the Annotated Code of Maryland and § 143-3 of the City Code shall be subject to a service charge in an amount equal to the service charge adopted by the Board of County Commissioners of Carroll County as to its County property taxes, which charge may include an administrative fee as permitted by law, Section 4: Should any section of this Ordinance be determined to be invalid, such invalidity shall not affect any other sections. Section 5: Any transfer of funds between appropriations must be approved by the Common Council in the form of an ordinance by a vote of at least 2/3 of the members of the Common Council. Section 6: BE IT FURTHER ORDAINED that this Ordinance shall become effective ten days after its enactment by the Common Council of Westminster. INTRODUCED this _____day of May, 2023. _________________________________________ Douglass Barber, City Clerk ADOPTED this _____day of May, 2023. _________________________________________ Douglass Barber, City Clerk APPROVED this _____day of May, 2023. _________________________________________ Dr. Mona Becker, Mayor APPROVED AS TO FORM AND SUFFICIENCY this _____day of ____________, 2023. _________________________ Elissa D. Levan, City Attorney Public Hearing – Proposed FY 24 Budget MA To: Mayor and Common Council From: Sara Imhulse, City Administrator Date: April 25, 2023 Re: Public Hearing – Proposed FY 24 Budget Background The City’s new fiscal year will commence on July 1, 2023. In accordance with Article II of the Charter of the City of Westminster and in consultation with the Mayor and members of the Common Council’s Finance Committee, the City Administrator prepared a proposed budget for the Common Council’s consideration. The proposed fiscal year (FY) 24 budget will be presented to the Mayor and Common Council at their meeting on May 1, 2023. On May 1, 2023, the Common Council will introduce Ordinance No. 2023-03, which would introduce the FY 24 Budget. The Public Hearing on May 1, 2023, provides Westminster residents and other interested parties with the opportunity to offer their thoughts and opinions as the Mayor and Common Council continues its deliberations regarding the budget proposal. Recommendation Staff recommends that the Mayor and Common Council hold the public hearing to receive community input on the proposed FY 24 budget. Attachments • Public Hearing Notice • Ordinance No. 2023-03, the FY 24 Budget  NOTICE OF PUBLIC HEARING FOR CITY OF WESTMINSTER MAYOR AND COMMON COUNCIL The Mayor and Common Council of the City of Westminster will conduct a Public Hearing on the proposed FY 24 Budget at the Special Mayor and Common Council Meeting scheduled for Monday, May 1, 2023, beginning at 4:00 p.m. in City Hall, located at 1838 Emerald Hill Lane, Westminster, Maryland 21157, in order to receive public comment on the following item: Public Hearing – (City of Westminster FY 24 Budget) Copies of the related materials are available for public inspection in the City Clerk’s Office at 45 West Main Street, Westminster, MD 21157. Please contact City Clerk Doug Barber at 410-848-4938 or email comments@westminstermd.gov to submit comments All interested residents are encouraged to attend. The City of Westminster’s proposed Annual Budget (FY 24) is scheduled for adoption on Monday, May 8, 2023. NOTE: THE OFFICIAL NOTICE OF THE PUBLIC HEARING WAS PLACED IN (2) ISSUES OF THE CARROL COUNTY TIMES: FIRST ON SUNDAY, APRIL 23, 2023, AND THE SECOND ON SUNDAY, APRIL 30, 2022.