June 14, 2014
Jared S. Littmann
Alderman, Ward 5, Annapolis

912 Forest Drive 
(office at K&B True Value)

410-268-3939 (office)
443-926-2399 (cell)

Upcoming Events

June 19, 1:30 PM:

Environmental Matters Committee. Main topic: update on proposed developments in Annapolis by DNEP. Submit question in advance to me.

 

June 19, 3 PM:

Council Work Session in Council Chambers. Main topic: Capital Improvements Programs.

 

June 23, 7 PM:

City Council Meeting in Council Chambers

 

July 14, 7 PM:

City Council Meeting in Council Chambers

 

July 28, 7 PM: 

City Council Meeting in Council Chambers

 
 
The City Council will meet Monday, June 16, at 7 p.m. in City Council Chambers. 
 
The main feature of this meeting will be the Council's consideration of the FY2015 City operating budget, which covers the period 7/1/14-6/30/15.
 

  

News Since the Last Meeting Email
Your Views

I welcome Annapolis City residents, particularly from Ward 5, and other concerned individuals to give me their views on issues or to discuss other concerns in person. Please contact me via email with your views or to set up a time to chat in my office at K&B True Value (912 Forest Drive).

Stay in Touch  
I welcome your feedback and questions, and appreciate your help in reaching other Annapolis residents by  to them. Thank you!

 

Sincerely,

Jared Littmann
Alderman, Ward 5, Annapolis 

  

Regular Meeting of the City Council
AgendaAgenda
   
The Annapolis City Council will meet on Monday, June 16, at 7 p.m., in the Council Chambers. All Council meetings are available online through live streaming and broadcast on Comcast channel 99 and on Verizon channel 34. Below is a synopsis of the agenda. You can access the unabridged version here.


Martha Wood Leadership Award presented to Elizamae Robinson 
 

PETITIONS, REPORTS AND COMMUNICATIONS

  • Reports by Committee  
  • Petitions (Public Comments) - This is your opportunity to speak to any matter not listed for a public hearing below

PUBLIC HEARINGS

 

This is your opportunity to state your opinion on how we should vote or amend pending legislation. 

 

O-6-14     Seasonal Outdoor Sales - For the purpose of amending the zoning code to address seasonal outdoor sales.


  

  

LEGISLATIVE ACTIONS

2ND READER

 

The FY2015 City of Annapolis BudgetBudget

 

There are so many issues that may be of interest to you with regards to this year's budget and the Council's vote on June 16. Adding to the challenge in sorting them all out is the fact that there are amendments proposed to many pieces of the budget legislation, many of which are still getting revised. For the most current information, I suggest you click on the City's agenda for the hearing on Monday, June 16 and view the separate pieces of legislation, reports, and amendments. Additionally, I suggest revisiting the amendments tomorrow when the updates have been uploaded. I address the revisions to my amendments below.

 

The Context

 

For a starting point in understanding the budget challenges this Council faces, I provide a summary here. The main points are: the Mayor's budget was based on an assumption of $2M in furloughs (this requires the unions' consent, which did not materialized), a $2M shortfall in the transportation budget (identified after the Mayor's budget was released), a $1M reduction in the increase to the fund balance, and the use of $3.5M in borrowed funds to pay for routine maintenance and repair of the roads, sidewalks, and water and sewer lines. That totals $4M just to balance the budget, and an additional $4.5M for more responsible fiscal management.

 

The final list from the Mayor's office on position recommendations (layoffs) for the FY15 Budget is here. In sum, the mayor's budget proposes that 10 filled positions be eliminated and 23 vacant positions be eliminated for a resulting workforce of about 600 employees.

 

Alderman Ross Arnett analyzed the 10 year forecast of the City's expenses and revenues here. In sum, he describes "business as usual" leading to crippling deficits, untenable tax increases, and/or decimated City services.

 

One certainty is NO increase in real property taxes this year. The deadline for proposing one has passed. 

 

 

The Plan

 

For an excellent summary of how the proposed budget and likely amendments would address these challenges, read Alderman Joe Budge's summary, which also provides direct links to the pertinent legislation. The analysis below focuses primarily on proposed amendments.

 

Second Readers

 

 

R-10-14           FY 2015 Fees  Schedule  Effective  July  1,  2014
 -  For  the  purpose  of specifying  fees  that  will  be  charged  for  the   use   of   City   services   for   FY 2015.

 

 

My Comments

Solid Waste Fees. Alderman Budge and I have separate and different proposals to reduce the amount of the solid waste fees. Currently, you pay $380 per year for the weekly collection of trash and recycling. If one of our amendments passes, you will see an annual reduction of 10-20% ($38-$76) on your quarterly utility bill. The solid waste fund is a self-contained fund, so this reduction would reduce that fund's surplus and would not affect the general (operating) fund.

 

Truxtun Boat Ramp. There has been some confusion about the proposed fee changes for the Truxtun Boat Ramp, which I try to clear up here. In sum, the budget for this service is balanced with an increase in the fee from $5 to $8 and a change in the annual launch fee to one rate ($75) for all users, as is required.

 

Summary. The fee schedule includes updates to ensure that cost of the particular services are recouped by the fees charged. Assuming the Solid Waste Fee is reduced as described above, and subject to considering contrary opinions from you or my colleagues, I plan to vote in favor of this resolution.

 

 

R-11-14           Position  Classifications  and  Pay  Plan  -  For  the purpose  of  approving  the FY 2015 position classification and pay plan effective July 1, 2014.

 

My Comments: The City Council has not made changes to the position classifications and pay plan in many years, including this one. I support the Finance Committee's recommendation that a new one be conducted this year. Subject to considering contrary opinions from you or my colleagues, I plan to vote in favor of this resolution.

 

 

R-21-14           Fine Schedule for City Code Violations - For the purpose of specifying fines that may be imposed for violations of the City Code.

 

My Comments: The mayor's budget reflected suggestions from various City departments for fines that should be adjusted. The Finance Director, Acting City Manager, and Council's Finance Committee reviewed and approved the new fine schedule. Subject to considering contrary opinions from you or my colleagues, I plan to vote in favor of this resolution.

 

 

O-20-14           Water Service Charges - For the purpose of instituting charges for re-establishing water service after non-payment; authorizing a charge for billing adjustments; authorizing a charge for estimating property transfer charges; and for all other matters related to water service charges.

 

My Comments: This ordinance does not adjust the water use rates. The ordinance would implement some new charges for (1) requests for estimated property transfers (2) non-payment and (3) water service restoration. Before voting in favor of this Ordinance, I'd like to better understand the impact of those charges.

 

 

R-12-14           Capital  Improvement  Program   Fiscal    Years   2015-2020 -   For   the purpose  of  adopting  a  capital  improvement   program   for   Fiscal   Years 2015-2020 (July 1, 2014 - June 30, 2020). 

 

My Comments: I expect the vote on this Resolution to be postponed by a week, to after Thursday's work session, so that the Council can consider the information learned in that session. Director David Jarrell, of Public Works, will discuss the projects in the CIP and the impact of a "bond holiday" (the absence of any new bonds in the fiscal year).

 

Watershed Management Plan. The Department of Neighborhoods and Environmental Programs (DNEP) and DPW proposed a study in the CIP that would detail and then prioritize all of the projects that the City must perform in order to comply with existing State law. These are projects that are colloquially but misunderstood as stormwater projects. In reality, these are "Bay-Protecting Projects" that restore creeks and streams to allow enough time for nature to filter the water and remove harmful nutrients before they reaches the Chesapeake Bay. Otherwise, those pollutants create dead zones and algae blooms in the Bay, and keep the Bay from being usable by people. Without those projects, cleaning the Bay becomes exponentially more expensive. My amendment seeks to phase this project over 2 years (a savings of $125k this year) in order to fund a rate study ($50k) and leave remaining funds in this account for restoration projects.

 

 

O-8-14 Annual Operating Budget:  Fiscal  Year  2015  -  For  the purposes  of adopting an operating budget for the City of Annapolis for Fiscal Year 2015; appropriating funds for expenditures for  Fiscal  Year 2015;  defraying  all expenses and liabilities of the City of Annapolis and levying same for the purposes specified; specifying certain duties of the Director of Finance; and specifying a rate of interest to be charged upon overdue property taxes.

 

My Comments:  

Personal Property Tax. One of the proposals for an increase in revenue is an increase to the Personal Property Tax, which businesses in the City pay. The City has not adjusted this tax since 2003 and the proposed increase of 17% equates to an estimated increase of $30-$135 for most businesses, with the exception of the utility companies in the City who pay the biggest portion of this tax. I provide a more thorough analysis of this tax here.

 

Funding of 64-gallon recycling containers. The City currently uses revenues from the solid waste program to purchase and distribute to City residents for free high quality 64-gallon recycling containers with a fixed lid and sturdy wheels. I had previously objected to this expense because these containers are available on the open market. However, the Director of Public Works convinced me that this is a sound investment both fiscally and environmentally. My reasoning is here.

 

Fund Balance and Proposed Amendments. The fund balance is like the City's savings account; it is placeholder for revenues that are not budgeted for an expense. Surpluses from the fund balance are necessary to ensure sufficient operating cash flow and for emergencies. A few years ago, the City's surplus was near $0 and the City had to borrow funds just for operating cash. To get the City's operating finances back on solid ground, the bond rating agencies highly recommended a total surplus of 25% of annual revenues, or about $25M. Over the past few years, the City has made progress towards that goal, and was recently in the $18M range. To continue that progress, last year's budget allocated about $2M towards the fund balance. This year's budget allocates about $1M towards the fund balance. The reduction in the annual fund balance is concerning. Therefore, subject to limited exceptions, I am not inclined to vote in favor of the various amendments that would further reduce the fund balance in this year's budget.

 

Economic Development. The mayor's budget proposes to reduce the budget of the Annapolis Economic Development Corporation (AEDC) to $250k (it was $450k in FY14). There is a proposed amendment to increase this funding to $350k. I am not convinced that the AEDC can provide an adequate return on investment for the millions of dollars the City has invested in this organization. I agree that investment in economic development is warranted. However, as Alderman Budget points out, the City is spending roughly $1.5 million on economic development functions in various departments outside the AEDC (Parking give-aways, Visitor's Bureau, A&E District, Small & Minority Business, Historic Preservation, and Main Streets, plus any economic value in the Circulator.

 

What I propose is the City not fund the AEDC this year, but instead use existing City resources to create a plan with funding in next year's budget for in-house expansion of economic development along with the existing Small Minority Business Enterprise (SMBE) coordinator. With the $250k saved, I propose that an additional $150k be saved in the Fund Balance, and the remaining $100k be spent on an outside consultant to study the existing city staffing and processes, in order to recommend suggestions for improvements, efficiencies, reductions in bureaucracy, and how to make doing business with the City easier. Fundamentally, as discussed above, the City has not figured out how to maintain its infrastructure and continue core City services including public safety without annual decreases in staffing or increases in taxes. These problems are not unique. The City should find someone that has figured this out and implement best practices.

 

Summary. If amendments I propose are adopted by the Council, then subject to considering contrary opinions from you or my colleagues, I plan to vote in favor of this Ordinance.

 

 

 

First Readers

 

O-22-14           Special Residential Parking District 1 - State Circle - For the purpose of authorizing a resident who occupies a dwelling unit in a building located on State Circle to be eligible for a permit in special residential parking district No. 1; and all other matters related to special residential parking district No. 1.

 

O-23-14           Financial Disclosure for Employees and Appointed Officials - For the purpose of requiring certain City of Annapolis employees and appointed officials to file a financial disclosure statement with the Ethics Commission 15 days after commencing employment or service pursuant to their appointment; requiring employees or appointed officials who provide advice or counsel to the City on acquisitions or public policy matters to file a financial disclosure statement with the Ethics Commission; and making the changes necessary to the City Code in order to comply with the State of Maryland ethics requirements.

 

  

 

BUSINESS AND MISCELLANEOUS

 

ID-197-14        Approval of the Towing License Renewals - July 1, 2014

 


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