June 8, 2006 Town Meeting
Town of Cheverly
Meeting Minutes
June 8, 2006
Call to Order
Mayor Mosley called the meeting to order at 8:00 PM in the Cheverly Community Center. There were 6 citizens in attendance.
In attendance: Attorney Colaresi, Chief Robshaw, CMs Ford, Hofmann, Oslik, Schachter and Watson.
Pledge of Allegiance
Agenda/Approval/Changes
Approved as written.
Minutes – 5/11/06 Town Meeting
Approval was deferred to the Worksession.
Minutes – 5/25/06 Worksession
Approval was deferred to the Worksession.
Town Administrators Report
Mr. Warrington announced that due to construction, residents should use the front entrance to Town Hall to access the police department versus the side entrance. Construction is running on schedule and WSSC connections begin next week.
Recruiting
Mr. Clarence Sollers, Maintenance Supervisor in Public Works has announced his retirement. His position will be posted. There is still an opening for a part-time Litter Collector. The Police Department is looking for certified officers.
Awards Presentation
Attorney Colaresi stated that Cheverly has always been a special place and client.
He presented a U.S. flag that was flown over the Capitol on the 75th Anniversary of Cheverly’s incorporation. The flag is a gift from his firm with his gratitude.
Committee Reports
Cheverly Day Committee
CM Watson reported the next Cheverly Day will be in May 19, 2007. There will be large turnover in the planning committee; and new committee members are needed. The souvenir booklet will be smaller next year due to costs. He thanked everyone for their efforts towards this year’s Cheverly Day. Meetings will begin in August and will be held the second Tuesday of each month.
Mayor Mosley added that the Mayor and Council sponsored dance cost about $950. For next year, areas where spending can be reduced have already been identified. The souvenir book was worthy of the 75th anniversary.
Police Report
Chief Robshaw gave the report for May (report attached). Two crimes of note include a carjacking; which was closed with an arrest of a suspect in DC. A robbery case was also closed with an arrest. The incident total is at an eight year low. Two crimes continue to plague the town (theft from autos and vandalisms). Chief Robshaw advised residents to park in well lit areas, stow valuables out of sight, lock vehicles and use The Club.
Denise Ryan, President, Cheverly Police and Citizens Together (C-PACT) stated that she supports any tax increases that support a salary increase for officers.
She added that C-PACT was created last fall. Upcoming activities include:
· Women’s Self Defense Course, July 22 – the cost is $20 for 5 hours
· Ride alongs with the police
C-PACT Awards
· Mary Williams – for her dedication to the safety of the Cheverly East Park
· Charles Bell – who reported suspicious activity, which resulted in the arrest of the suspect for a burglary and drug possession.
· Cathy Wintermyer - for reporting a suspicious person who was subsequently arrested for drugs
· Jody O’Donnell (VP of C-PACT) – for helping Cheverly and the US Park Police chasing a suspect involved in a carjacking.
· Laverne Waller – called the police and fire department to report an arson at the Euclid Street Park
Mayor Mosley read the proclamation recognizing Officer Aaron Locke.
Chief Robshaw added that each police department in Prince Georges’ County submitted nominees for Officer of the Year, which were reviewed by County Chiefs. Officer Aaron Locke was selected and recognized by Lt. Governor Steele at the Awards Program for the Police Chief Association of Prince George’s County.
Recreation Council
Barbara Pejokovich announced that the next meeting is September 26th at 7:00PM in the Community Center. The next activity is the Jugg Bay picnic for Council members and their families.
Terry Devitt, Scholarship Committee announced this year's scholarship winners. She encouraged residents to volunteer on the committee.
Scholarship Awardees
Julianna Horchler
· Graduate of St. Johns College High School
· 4-year Honor Roll
· National Honor Society
· Thespian National Honor Society
· Plans to attend the University of Delaware majoring in Fashion Merchandizing
· Community involvement includes SIDS, the Cheverly Young Actors Guild, Cheverly Women’s Club, St Ambrose Parish, Cheverly Kids Care Club and the Rec Council
Marcus Mitchell
· Graduate of Eleanor Roosevelt, HS with a 3.5 GPA
· National Honor Society
· National Society for High School Scholars
· Eagle Scout
· Prince George’s County Boys &Girls Club Co-Boy of the Year
· Community involvement includes: Cheverly Day, Boys & Girls Club, St. Ambrose Church, Teachers Aid, tutoring, fundraising, Capital Area Food Bank (canned food drive)
· Plans to attend Cornell University and major in Biology Pre-Med
Mayor Mosley added that Marcus is getting a full academic scholarship to Cornell. She attended his Eagle Scout awards ceremony where he was acknowledged for collecting 782 pounds of canned goods for Hurricane Katrina victims. His name will be posted on the Cheverly Avenue Sign.
Mayor and Council Announcements
Worksession: Department head evaluations, email policy, Landover Knolls Civic Association letter. The meeting will be on June 22 at 8:00 PM.
Citizen Input
There was no input.
Proclamation – Declaring June as Boy Scout Month in Cheverly
Mayor Mosley summarized that a ceremony honoring five Eagle Scouts from Troop 716 was held at St. Ambrose on June 3. Marcus Mitchell (Troop 257) received his award on June 7. She read the proclamation (attached to original of the minutes).
Public Hearing – Constant Yield Tax
Mr. Warrington summarized that by law Cheverly must publish an article in the local paper announcing the Constant Yield. The State conducts an analysis of Cheverly’s tax base and evaluates the affect of assessment increases on tax revenues. The County will require - if necessary - a hearing on the Constant Yield Tax. If taxes are not increased, the rate would have to be dropped from $.40 to $.36 for tax revenues to remain constant. With the increase in assessments, tax revenues will also increase without an increase in tax rate. Cheverly is required to have this hearing to notify residents of the increase of 11.2% increase of Yield collection of $164,646.00. The Mayor and Council have elected not to decrease the rate.
CM Schachter asked for clarification around the $164, 646. It is his understanding that the Town would not realize the increase in full because the funds would be phased in. Mr. Warrington responded that this amount would be realized at one time.
Former CM, Dr. Foley stated that a copy of the Constant Yield calculation for every jurisdiction is provided in their tax bill. Cheverly’s tax rate has remained constant.
The hearing was closed.
Adoption FY 07 Operating Budget and Capital Improvement Program
Mayor Mosley announced that there was a special budget session held in May.
Mr. Warrington summarized that following the discussion; a motion will be needed to pass a non-codified ordinance to adopt the budget. This motion will also set the tax rate. (from $.40 to $.45). Changes to the budget include:
Total revenues for 2007 are estimated at $5,197,000, total expenditures at $5,210,000. The debt service is payment for police station bond (in the form of two interest payments and an interest and a principal payment). The budget balance is -$12,562.
The fund balance will be $458,000, which is lower than the industry standard and is a 90-day operating budget.
The largest expenditure is personnel. In order to be competitive with other municipalities, police salaries were increased.
Mayor Mosley added that in public safety there have been a number of openings for the past 10 years resulting in fewer expenditures in overtime, etc. This year, due to a spike in crime, overtime was charged. Also there will be 5 vehicles replaced next year.
CM Watson added that the Town has not raised taxes in a number of years. Each year, the town has increased its spending. He supports the increase.
Mayor Mosley added that last year there was more add-on expenditures during the year such as:
· street paving that was doubled due to un-anticipated increases in the price of asphalt;
· an added position (probably will not be funded this year); and
· Salary increases for Public Works employees.
There were also hidden revenue decreases such as less State monies returning. Mayor Mosley stated her support of the tax increase although she is concerned with the assessment increase.
CM Hoffman added that he is conflicted. He asked if the increase could have a two or three year limit and then be lowered as the Council decides.
Mayor Mosley added that next year is an election year and the new Mayor and Council may want to raise taxes. This increase was not decided at the last minute. She remembered CM Hoffman proposing an $.08 increase.
CM Hofmann added that he made that recommendation prior to having the final numbers to consider.
Mayor Mosley added that the final numbers were presented to the Council in April. The only thing changed were the six pages reflecting decisions made at a Special Worksession two weeks ago.
Mayor Mosley added that the analysis was done on camera in January/February.
CM Hofmann added his desire to go on record that this is a huge increase and he was part of the process and that it will be difficult to lower the tax rate.
CM Schachter thanked Mr. Foley for his paper entitled “It’s Your Money”. There is a tax analysis at the end of the paper that notes assuming a person has a tax assessment of their home at $178,101 he estimates that 2006 taxes would have been $2,706.61 and in 2007 (if the .05 tax increase is passed) it will jump by 13.2% which is significant when stated as a percentage. The dollar increase would be $3,063. However, he encouraged residents to review the dollar amounts.
CM Schachter added that he is in favor of an increase if it helps to maintain a strong police force.
Also, Dr. Foley notes that expenditures will increase by $2M however; he is including the $1.2M for the police station. The Council has the choice between reducing the reserve or retaining home values and level of services.
CM Ford added that there are no frills in the budget. There should be a reserve maintained for emergencies. The Town must plan for emergencies and make provisions for an excellent police and public works department. He is in favor of the increase.
CM Oslik added that the increase is unavoidable but reasonable. The increase is not attributed only to the police department but also to Project Open Space and other grant funds where the Town is getting revenues to cover project costs. These projects are thoughtful and have been in the making for several years due to the efforts in many cases of the Town Administrator. Per CM Hofmann’s suggestion of a sunset provision – there will always be projects that help maintain the quality of living in Cheverly. There will be an election next year and if there is a difference of opinion on this topic, it can be revisited. Quality has a price.
Mayor Mosley stated that when she was a freshman Councilmember the budget was in bad shape and no streets were improved for a year. The following year, three streets had to be repaired. Assessments are the dicey aspect.
CM Hofmann added that the assessments would be a burden. He would like to know that in 2-3 years that the Council will have the liberty to lower them.
Former CM Tom Foley, 3209 Crest Avenue added that in June 2004, there was a surplus of $1,350,000. Then there was a deficit of $234K followed by a deficit of $645K. Had there been a balanced budget – the police station could have been paid for in cash. The police department is really costing $1.6M versus $1.2M. He added that the Government, public safety and public works are the largest expenditures. Public Safety being the least expensive. In 2003-2004 there were good surpluses. A 13% in increase is not bare bones. On page 4, the 2006 the home assessments will go up 10% per year; however it will never match the market value.
Without raising taxes to $.45 the reserve would still be $253K in the balance because of added income from the assessment (which happens every year).
The election process does not solve the problem. The money will have already been spent.
CM Schachter asked whether Dr. Foley was inferring that the police department could be paid for without raising taxes. Dr. Foley responded that the reserve would be low only this year but in 3-4 years would reach well over $1M. CM Schachter stated that he is not willing to take that risk. It will be up to the next Council to decide.
Mayor Mosley told Dr. Foley that she wishes she saw his analysis sooner. He and the Council are both right in their assessment of expenditures (e.g. the street sweeper). Going back to the 2003 audited figure, the tax revenue increased to $100K. Estimated actuals for 2006 is $2,512,000. Considering cost of living increases and the purchase of police vehicles the estimated 2006 is lower than what was plugged in last year. Anyone can see how this amount can be eaten up with expenses. There have been years when monies are put back in to the surplus.
CM Oslik commented on the 13% increase in expenditures – he reiterated that a large part of the increase in expenditures is the result of capital expenditures; however, in this case the Town is getting reimbursed. Operational increases are 5% or less. Taxes have not been raised in several years and if it were spread out over several years, the average would be little over 2% per year. The total cost increase to homeowners should be viewed year by year in relation to the cost of living increase and services. The question is where Dr. Foley would have taken cuts in the budget to pay for the police department.
Dr. Foley responded that he has not examined the budget until recently and has not analyzed prior budgets. He would not have supported previous expenditures and budget overruns.
Tracey Hoffell, 3007 Crest Avenue stated that she is attending the meeting at the request of CM Watson to be Dog Park Liaison. She stated that she feels comfortable about what she’s heard about why taxes should be increased. She asked if there is money in the budget for the Dog Park.
Mayor Mosley added that there is no money in the budget for the Dog Park; however, as a result of a good meeting with Park and Planning she is hoping the Park will be built in Euclid Park. Ms. Hoffell added that she would like to get involved in this project.
CM Ford added that the cost of materials and labor for construction is on the rise and a police department built at $800K would be 2/3 of what the town needs. If the Town waits again, it will cost even more to build.
CM Oslik responded that the reason the Town did not go forward with construction when it was $800K is because the Town was being prudent. They were in a revenue situation where they had just purchased two highrise buildings. The Council decided to not go forward with further acquisitions until that deal was closed. Secondly, a lot of time was lost on the permit process.
Mayor Mosley asked for a motion to pass the budget approving the $.05 tax increase.
· CM Ford moved to pass Emergency Ordinance OB-1-06, Budget Ordinance for the Town of Cheverly for the 2007 Fiscal Year. Seconded by CM Schachter. Vote 4-0, in favor. CM Hofmann opposed, CM Oladele absent. Motion passed.
Adjourned 10:25 p.m.
Town of Cheverly
Summary of Action
June 8, 2006
1. CM Ford moved to pass Emergency Ordinance OB-1-06, Budget Ordinance for the Town of Cheverly for the 2007 Fiscal Year. Seconded by CM Schachter. Vote 4-0, in favor. CM Hofmann opposed, CM Oladele absent. Motion passed.
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