Denton, Maryland

The County Commissioners of Caroline County, Maryland, convened their regular meeting at 9 AM as previously announced, in the County Commissioners Hearing Room, Courthouse.

Margaret R. Myers, President

John S. LeGates, Vice President

John W. Cole, Member

Charles C. Cawley, County Administrator

The County Commissioners held a budget workshop, open to the public, in the Hearing Room. The following were discussed:

1. Mr. Cawley said the income tax revenue projections are clouded by the 1996 rate change and school debt payment deducted from revenues. One payment from 1996 still needs to be received. The following income tax base changes have occurred:

FY 1994 - + 2.82%

FY 1995 - + 9.44 %

FY 1996 - - .55 %

FY 1997 - + 6.06%

FY 1998 - + 9.72% (projected)

The 3-year moving average is 5.16 %. Mr. Cawley is willing to increase his revenue estimates by $66,300, but no more. It was generally agreed to use these funds to cover the additional $30,000 for the animal control line item, which will be earmarked "restricted contractual" for use by the Humane Society if needed for operating out of the new facility. It was furthermore agreed to match $27,000 (approximately) that Queen Anne’s County will be allocating for repair of the Long Marsh public drainage system, and to take it from the capital reserve fund.

Mr. Cawley hopes for a $700,000 income tax surplus in FY 1998-99. One of Mr. Cawley’s goals is a stable income tax revenue flow (rate and base) to enable better fiscal planning.

2. President Myers expressed great concern that the County has significantly and deliberately reduced revenues for the second year, and if this is continued, in view of legitimate needs for those revenues, the County will find itself in a deep hole. When basic services are reduced or lost, the quality of life in the county will suffer, and this will negatively impact economic development efforts, which the County can ill afford.
3. Solid waste fee – Mr. Cawley said it will be necessary for the County to implement a $50 per household fee no later than January 1999, which will be escrowed for closing Hobbs landfill.

1. President Myers pointed out that Talbot County was successfully sued by its Board of Elections for not providing adequate operating funds, and expressed concern that Caroline County may be opening itself up to the same kind of suit.
2. Mr. Cawley discussed the financing of the new health and public services building with former County administrator Edwin Richards. The revenue projection for this project was based in part on receiving an increase in Medicaid funding for each new adult day care patient, which is now restricted to a flat amount according to the health department. A sinking fund will be needed for building repairs. An additional $100,000 to $200,000 will be needed in the budget in FY 1999-2000 to make building payments.

 

3. Mr. Cawley requested the following changes in the capital budget, with which the Commissioners concurred:

Choptank Marina basin improvements - + $15,350 (will supplement Marina revenue);

County Library - $20,000 can be eliminated if grant is received;

Board of Education - expenses for portable classroom constructed by vocational students were previously covered by revenue bond. FY 1999 will be paid from capital reserve.

4. Municipal tax differential - President Myers asked by what amount the most recent law reduced revenue to the County. Most towns did not increase taxes despite the fact that the new law rerouted differential funds directly to town taxpayers, she noted. Mr. Cole said the towns need to be formally supporting certain services, such the drug task force and animal control, since they will be significant users of these services. Ms. Spicher pointed out that the County now collects taxes for Denton, Templeville and Hillsboro, and receives only about $28 for doing so (limited by state law). Equitable reimbursement of the County for its administrative efforts needs to be explored.
5. LOSAP – Generally agreed to move $5,000 in funds requested by fire companies from their proposed operating into LOSAP line item. Mr. Cawley stated that at some point the County will need to consider a fire/ambulance tax to fund this service. Ms. Spicher said that LOSAP funds have not yet been drawn down by its beneficiaries, and she questioned who would be responsible for administering this fund. Bryan Ebling will be asked for a LOSAP update.
6. Law Library – The state law library administrator informed Janice Davison that the County is not required to fund the law library. She will ask local lawyers if they are willing to make a contribution, although the library is used primarily by the circuit court judge. The balance in the law library account held by circuit court will be checked.
7. Denton Armory /Recreation – Mr. Cawley is willing to use $10,000 for rental of the Armory floor if the Town takes over the building and its repairs. Rental charges will partially offset this expense.
8. Personnel – Mr. Cawley has strong reservations about not adding funds to be able to give a merit pay increase to those who were recently reclassified and received pay increases. It would take at least $70,000 to do so.

Allan Gorsuch, superintendent of schools, informed the Commissioners that they must allocate an additional $135 in order to comply with the state maintenance of effort law, and the Commissioners agreed to change the proposed allocation to $171,135. Dr. Gorsuch spoke strongly against the proposed allocation. If enrollment drops, the County cannot reduce its allocation below the current level. Wicomico County lost $1.8 million in state aid two years ago for failing to meet maintenance of effort. Somerset has increased its allocation despite enrollment drop. The new Board of Education administration building will cost about $30,000 more annually than leasing, with improved efficiencies. Dr. Gorsuch said there is nothing to hide about salaries, and that the Commissioners’ information request is being worked on. About half the total staff will receive an increment, which will average about 1.8%. The 1997 COLA, which all received, was 2%. Early retirement is encouraged to reduce personnel costs. Due to a new administrators payscale adopted by the Board, many will get little or no increase this year. In the recent Coldwell Banker report used for real estate purposes, Caroline’s educational system compares poorly with Talbot’s, Dr. Gorsuch said, so don’t make it worse by allocating only maintenance of effort. Basing the County budget on maintenance of effort is unfair.

Continuing to allocate 43% of revenues to the schools, which would add another $200,000, would be fair. Mr. Cole said, referring to the current situation, when there are more slices coming out of the revenue pie, it is impossible to fund the same percentage. Dr. Gorsuch said the school system is being weaned in order to provide support for other programs.

The Board will do the best it can, but is considering a $25 fee for club, band, and athletic activities. Nor will public and nonprofit use fees of school facilities be waived, as they currently are. Dr. Gorsuch said that the Commissioners can decide not to perform many government services if they have to, such as not paving a road, but that school systems must be open and operating. The County is putting a stranglehold on education. Textbooks won’t be replaced. Unlike other years, the Commissioners are not making the best effort they can to help the school system. Many things will be cut, but Dr. Gorsuch will not cut back salaries, since it is not fair for employees to pay for operating expenses. The County will be getting a 13% increase in revenue, but has budgeted only a 5.4% increase. There may well be changes to the maintenance of effort law by the legislature. Dr. Gorsuch said he will be back to talk about a supplemental appropriation if nothing changes. President Myers said she wants Mr. Cawley, Dr. Gorsuch and Mr. Nagel to have a meeting of the minds on such subjects as carryover funding, prepaid expenses, and overspending budget categories with prior approval so the Commissioners get consistent answers to their questions and that everything possible can be done to help the school system.

The meeting of the County Commissioners adjourned, and by unanimous consent reconvened at 7:30 PM. On motion of Mr. Cole, the minutes of May 19 and the budget workshop minutes of May 12 were unanimously approved. Vouchers #40705 – 40768 were approved for release. The Commissioners signed state assessment change reports #1189 - #1192.

Marvin MacDonald, purchasing officer, announced that bid opening # CC-TR-52698, replacement of underground storage tanks has been rescheduled; and that due to a oral and written complaint received from LaFor Corporation and recommendation from the County attorney, opening of bid # CC-MH-52698, health department computers and software, should be delayed until the attorney could look into the complaint, and report back to the Commissioners. All the (unopened) computer bids will be placed in an envelope and locked in the bid box until a decision can be made on what action should next be taken. Jan White, bidder, asked the nature of the complaint, and was promptly given a copy of the LaFor letter.

The Commissioners signed a World No-Tobacco Day proclamation for May 31, 1998 presented by Kay Wilz of the health department, and Marsha and Luke Stottlemyer, Kendra Simms, Steve Hafferman, Greg Cephus, and Ludia and Joseph Roberts.

On motion by Mr. LeGates, the Commissioners unanimously authorized advertised solicitation of professional service bids for medical services for the County jail, bid #CC-MS-61698.

The Commissioners held over purchase order #11817 to Chesapeake Publishing pending additional information from Sue Simmons.

On the individual motions indicated, the Commissioners unanimously approved and President Myers signed the following purchase orders:

Mary Newcomb, Tracy Lusby and Debbie Cowgill, Caroline County Humane Society, Inc., presented the estimate for the proposed new animal control/animal welfare facility, estimated by the architect at $241,602, approximately $100,000 over the amount budgeted. This did not come as a surprise, but the Commissioners had no ready solution. The Society is still pursuing grants and loans. The Commissioners suggested a countywide building fund appeal, and charging the Towns a fee for each service call. The Commissioners indicated they would be willing to discuss guaranteeing a loan.

Following discussion of Ms. Spicher’s jail legal fees memo, the Commissioners, on motion of Mr. Cole, unanimously agreed to appropriately reclassify $34,904.60 in jail legal services billed to the contingency fund to the capital reserve legal services account.

On motion by Mr. LeGates, the Commissioners unanimously approved and President Myers signed Agreement of Mutual Aid for the Provision of Emergency Advanced Life Support Services between Caroline County Advanced Life Support and Talbot County Advanced Life Support. The County is in the process of signing such agreements with adjacent jurisdictions in Maryland and Delaware that have comparable fulltime services.

On motion by Mr. Cole, the Commissioners unanimously authorized President Myers to sign documents that may be required in order for Caroline County to participate in the Maryland Department of Housing and Community Development, Community Development Administration’s 1998 Series B and C Infrastructure Refunding and Financing Bonds for issuances #19901-2 dated 3/31/90 in the amount of $1,054,300; and for #19901-3 dated 3/31/90 in the amount of $311,800. This state refinancing will save the County about $25,000 in debt repayment costs.

Staff reported that Chesapeake Publishing used the wrong font size in the Constant Yield ad, but that the Maryland Department of Assessments and Taxation has opined that the County met its responsibility under the law by submitting to the newspaper a copy of the ad requirements along with the ad copy. However, a reprint in the Star-Democrat will appear in the correct font size at no cost to the County.

On motion by Mr. LeGates, the Commissioners unanimously confirmed that, due to receipt of a bidder complaint and on recommendation of the County attorney, all bids for bid #CC-MH-52698, health department computer hardware and software, will be held unopened and secured in the bid box pending receipt of the County attorney’s opinion on what action should next be taken.

At 8:50 PM, and as authorized by 1995 Md. Code, State Government 10-508(a)(1), the Commissioners, on motion of Mr. LeGates and seconded by Mr. Cole, unanimously adjourned into closed session to discuss employee compensation.

At 8:55 PM, the Commissioners’ meeting reconvened in open session. President Myers reported that the Commissioners discussed additional compensation for a department head in recognition of his completion of his AA degree. On motion by Mr. Cole, the Commissioners unanimously granted a change in payscale assignment to Robert Schoonover from grade 12, step 2 to grade 12, step 3, effective as of the next pay.

On motion by Mr. Cole, the Commissioners authorized Mr. Cawley to notify the Queen Anne’s County Commissioners that the County will include $27,443 in its FY 1998-99 CIP budget to match Queen Anne’s County’s allocation for repair of the bicounty Long Marsh public drainage system, as requested by the Board of Managers. The Commissioners would like to discuss with the Board eventual reimbursement of these funds by broadening the definition of benefitted property owners so that more taxes can be collected to support this large feeder ditch.

There being no further business, the meeting of the County Commissioners was adjourned by unanimous consent.

Leigh Sands

Executive Assistant