June 7, 2015
Jared S. Littmann
Alderman, Ward 5, Annapolis

912 Forest Drive 
(office at K&B True Value)
410-268-3939


Upcoming Events 
June 8 
City Council Meeting
7PM, Council Chambers

June 11 
City Council Work Session
1:30PM, Council Chambers
Lessons Learned from Civil Protests: A Seminar to Assist the Mayor and City Council to Prepare for, Respond to, and Manage Potential Civil Demonstrations and Acts of Civil Disobedience in Annapolis

June 16 & 17
Visit of S/V Hermione 
 & Lafayette Commemoration
9:30AM - 4:30PM

For details of City Council events click here.  
 
The City Council will meet Monday at 7 p.m. in City Council Chambers. The highlight of the agenda is the vote on the operating and capital budget for the City of Annapolis. 

 
Your Views

I welcome Annapolis City residents, particularly those from Ward 5, and other concerned individuals to offer 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

  

  

Concerns About the City BudgetOpinion

 

On Monday night, the City Council will vote on the next City of Annapolis operating budget. I do not support the budget because it does not have a plan for growing revenue, does not take steps to control spiraling expenses, and relies on debt for foreseeable expenses. I would support a budget that is based on a strategic plan, sought revenue growth without raising taxes, and eliminated reliance on debt for operating expenses.

 

For context of the issues before the Council, consider five underlying budgetary concerns:

  1. Revenue is flat and is projected to remain so,
  2. Expenses nearly equal revenue, with minimal savings,
  3. Expenses are projected to increase and surpass revenues within two years, and
  4. Debt is increasing as the City borrows money for predictable expenses, like road repairs.

My fundamental objection to the budget is that it comes without any strategic plan. Additionally, it misses opportunities to make strategic investments while solutions are affordable. Instead, the proposed operating budget takes the politically safe route of maintaining the status quo, thereby exacerbating the underlying issues for a day down the road, while borrowing money to pay for today's expenses.

 

The City should use a strategic plan to assess strengths, weaknesses, opportunities and threats with input from citizens, staff, and other stakeholders, to identify the top initiatives with a corresponding timeline for implementation. A strategic plan would illuminate the City's vision, empower staff to work collaboratively toward agreed-upon objectives, and allow businesses to efficiently invest their time and resources. The City has taken a preliminary step by reformatting the budget into lists of projects (programmatic budgeting) rather than a line item budget, but that progress has not led to solutions.

 

More specifically, a strategic plan would answer:

  1. Where is the growth?
    In this budget, revenues do not grow. However, there are missed opportunities to increase revenue without raising taxes. For example, the City could facilitate redevelopment of underutilized properties. Redevelopment leads to higher property values and property taxes, and is followed many times over by private investment for an even bigger economic boost. The City has done it before, on parts of West Street, and can improve the model by learning from others such as in Washington, D.C., where H Street has been transformed, or in Crystal City (look up CrystalCity.org). The process starts with community discussions with the goal that the City will identify services and uses of property sought by the community, and then work with the private sector to establish private - public partnerships and investments. Economic redevelopment is but one example of how to raise revenue without raising taxes. Like with running a business, the City should not just raise the prices (taxes), or cut services, but instead improve our constituent services and business relations.
     
  2. How will costs be reduced?
    The City has allowed its payroll costs to spiral out of control. While jobs in government traditionally pay less than the private sector because of associated job security and benefits, that's not the case in Annapolis. Instead, many City positions are highly paid with 5% annual raises, in addition to cost of living adjustments (COLAs). Many employees are required to work just seven hours per day and given generous benefit packages, unlike in the private sector. The result is not good for citizens, who overpay for insufficient services. Paradoxically, it isn't good for staff because the City cannot afford needed personnel support. Lastly, it hamstrings effective government because not enough revenue is available to expand services. To be clear, this is a criticism of the system, and not of City employees, most of whom are effective, work longer hours than required, and produce outstanding results.
     
  3. How can we reduce our dependency on debt?
    Rather than control expenses, or generate more revenue, this budget pays for services by borrowing money. In other words, as tough as it is to balance the budget, each subsequent year will be more difficult with the burden of paying the principal and interest on money borrowed for this year's services.

The budget before the Council is not based on a strategic plan, does not grow revenue, does not address systematic increases in expenses, and relies on debt, and therefore I cannot support it. Most debates around these issues become a question of either raising taxes or cutting services. I suggest alternatives:

  1. A collaborative strategic plan,
  2. Targeted approaches to grow revenue, and
  3. Aggressive management of unsustainable personnel costs.


Regular Meeting of the City Council
AgendaAgenda
   
The Annapolis City Council will meet on Monday, June 8, at 7 p.m., in the Council Chambers. All Council meetings are available online through live streaming and broadcast on Comcast channels 99 or 100 and on Verizon channel 34. Below is a synopsis of the agenda. You can access the unabridged version here.  

CEREMONIAL ITEMS

  

Martha Wood Leadership Award: Mary Galloway 

  

PETITIONS, REPORTS AND COMMUNICATIONS

  

REPORTS BY COMMITTEES

 

COMMENTS BY THE GENERAL PUBLIC

Early in each Council Meeting there is an opportunity for comments by the General Public. The public may comment on any subject that is not on the agenda for a Public Hearing. Comments during this time are limited to five minutes per person.

APPOINTMENTS

The Reappointment of Timothy P. Leahy to the Historic Preservation Commission

  

PUBLIC HEARINGS

Proposed Real Property Tax Increase
Comment: The Mayor's Budget for FY16 proposes the identical Real Property Tax rates as the present year, $0.649 per $100 of assessed value. However, all properties in the City were re-assessed for this year and most properties increased in value. (For property taxes the increases are phased in over a three-year period.) This fiscal year the assessed values averaged about 2%, but the effect of the Homestead Credit will reduce that increase, on average. With the property tax rate remaining constant, the increase in values means that the average real property tax bill will increase by 1-2%.
 
State law requires the City to hold a public hearing for an increase in real property taxes.


PUBLIC HEARINGS CONTINUED

O-22-15      Lease of 145 Gorman Street - Amended and Restated Agreement of Lease between KDBA, LLC and the City of Annapolis for the use of non-city-owned property by the City of Annapolis. 

Sponsor: Pantelides

  

O-25-15     Environmental Commission - For the purpose of establishing a quorum of the Environmental Commission

Sponsor: Littmann


 

  

BUSINESS AND MISCELLANEOUS  

GT-20-15     
Plymyer - From Contingency to Law - for Legal Services
Comment: $7k transfer to pay for contractual services provided in regards to legal opinion on the City's adherence to the Forest Conservation Act.

ID-297-15      For Spa, Inc., T/A Masons Auto Repair, Inc.
Comment: application for a towing license, acceptance of annual renewal proposed.

ID-298-15     JP Towing & Recovery T/A JP Towing Service, Inc.  
Comment: application for a towing license, denial of annual renewal proposed.
 

 

LEGISLATIVE ACTION

  

SECOND READERS 

Comment: For the reasons outlined above, I plan to vote against the following budget related legislation.
   

R-8-15           Position Classifications and Pay Plan - For the purpose of approving the FY2016 position classification and pay plan effective July 1, 2015.
Sponsor: Pantelides 

 

R-10-15         FY 2016 Fees Schedule Effective July 1, 2015 - For the purpose of specifying fees that will be charged for the use of City services for FY2016. 

Sponsor: Pantelides 


 

R-11-15            Capital Improvement Program Fiscal Years 2016 - 2021
- For the purpose of adopting a capital improvement program for Fiscal Years 2016-2021 (July 1, 2015 - June 30, 2021).
Sponsor: Pantelides

R-12-15            FY 2016 Fines Schedule Effective July 1, 2015 - For the purpose of specifying fines that will be charged for FY 2016. 

Sponsors: Pantelides


 
O-14-15            Annual Operating Budget: Fiscal Year 2016 - For the purposes of adopting an operating budget for the City of Annapolis for Fiscal Year 2016; appropriating funds for expenditures for Fiscal Year 2016; 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.

Sponsors: Pantelides

 

O-15-15            Capital Budget Fiscal Year 2016 - For the purpose of adopting a capital budget for Fiscal Year 2016; and appropriating funds for expenditures for the Fiscal Year 2016 capital budget.

Sponsors: Pantelides


 

  

O-22-15            Lease of 145 Gorman Street - Amended and Restated Agreement of Lease between KDBA, LLC and the City of Annapolis for the use of non-city-owned property by the City of Annapolis.Sponsors: Pantelides


 

Comment:   The current lease will expire on July 1, 2016. This Ordinance would amend that lease, notably extending the lease period through June 20, 2030, and reducing the rental rate to $18.57 per square foot, down from $24.29 per square foot. Subject to consideration of differing views, I intend to vote in favor of this legislation.


FIRST READERS

 

O-28-15            Lease of Truxton Park to Kayak Annapolis, LLC - For the purpose of approving the lease of certain City-owned property at Truxton Park to

authorize the operation of a kayak water touring business; and matters generally relating to said lease.

Sponsors: Pantelides

 

FOR THE GOOD OF THE ORDER  

 

ID-300-15            Memorandum pursuant to City Code Section 4.44.080 Election Reports Required

 

ADJOURNMENT

 

 
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912 Forest Dr., Annapolis, MD