TOWN OF EASTON, MARYLAND
Easton Town Hall
14 S. Harrison Street
February 6, 2006
Councilmember Maureen Scott-Taylor Councilmember Moonyene Jackson-Amis
Also in attendance was Town Attorney Mr. Kehoe, Major Spencer, Assistant to the Town Engineer Mr. Hause, Town Planner Mr. Hamilton, Mr. Al Bond Economic Development Coordinator, the Town Clerk Robert Karge.
At 7:00 p.m., the President of the Council, Mr. Ford called the meeting to order.
Mr. Jensen opened the meeting with prayer and led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES OF JANUARY 17, 2006 MINUTES
Upon motion by Ms. Scott-Taylor seconded by Mr. Jensen and carried, minutes of the January 17, 2006 meetings were unanimously approved.
EASTON VOLUNTEER FIRE DEPARTMENT REPORT
Mr. C.R. Chance was present to report the Fire Department’s activities in the month of January.
ITEMS BY MAYOR WILLEY
The President of the Council brought a memo to the floor from Mayor Willey regarding appointments to the Planning and Zoning Commission and the Park Board.
Mr. Steven Periconi’s appointment to the Planning and Zoning Commission was tabled until the applicants for the Board had all been interviewed.
Upon motion by Ms. Scott-Taylor seconded by Mr. Jensen and carried; Mr. Michael Weise’s appointment to the Park Board was unanimously approved.
ITEMS BY MAJOR SPENCER
Laptop computers and in-car video cameras are being installed in six patrol vehicles.
Lt. Greg Wright will be attending the Northwestern School of Police Staff and Command in Sykesville, Maryland.
EPD will be celebrating their 100th Anniversary this year.
The Partnership for Prescription Assistance Program for the State of Maryland has requested parking spaces in Lot 5 tomorrow from 10:00 a.m. to 1:00 p.m.
ITEMS BY THE ASSISTANT TO THE TOWN ENGINEER
The road assessment will take place February 15 and will depart the Town office at 8:00 a.m.
ITEMS BY THE TOWN PLANNER
There are four agenda items for the scheduled Planning and Zoning meeting:
ITEMS BY THE DIRECTOR OF PARKS AND RECREATION
Mr. Sviatko discussed the Mulberry Station park progress and the adult basketball league program. He stated that he plans to wait until March to open the skatepark. Mr. Sviatko discussed the RTC Task Force’s ideas for the RTC Park.
COUNCIL PERMISSION TO ADVERTISE RFP FOR EASTON POLICE DEPARTMENT BUILDING EXPANSION
Upon motion by Mr. Jensen seconded by Mr. Wendowski and carried, permission was unanimously granted to advertise the RFP for the Easton Police Department building expansion.
ORDINANCE NO. 496, “AN ORDINANCE OF THE TOWN OF EASTON AMENDING THE EASTON TOWN CODE TO REVISE THE PROVISIONS REGARDING THE PARK BOARD’S POWERS AND AUTHORITY.”
Upon motion by Ms. Jackson-Amis seconded by Mr. Wendowski and carried; Ordinance No. 496 was passed unanimously.
ORDINANCE NO. 497, “AN ORDINANCE OF THE TOWN OF EASTON AMENDING THE CODE OF THE TOWN OF EASTON BY REPEALING AND REENACTING CHAPTER 28 OF THE TOWN CODE, WHICH SETS FORTH THE TOWN’S ZONING ORDINANCE.”
The President of the Council introduced Ordinance No. 497 for a first reading.
It was the consensus of the Council to schedule an additional public hearing. The President of the Council set the Public Hearing for February 21 at 7:45 p.m.
PUBLIC HEARING TO DISCUSS PROPOSED CHANGES TO THE TOWN’S CHARTER. RESOLUTION NO. 5873 AND RESOLUTION NO. 5874; IF ENACTED BY THE COUNCIL AND APPROVED BY THE MAYOR WOULD SET INTO MOTION THE PROCESS OF CHANGING THE CHARTER PROVISIONS REGARDING THE TOWN’S TAX CAP.
At 7:45 p.m., the President of the Council opened the public hearing.
The Town Attorney outlined the process the Town Council is going through. He stated that in the Town Charter there has been a provision since the mid 1950’s limiting our maximum tax rate under real estate under most circumstances to $.40 on the dollar which is a result of legislation passed by the Maryland General Assembly in 2000 which in effect change the way the assessable base is calculated in Maryland and as a result, in order to be revenue neutral caused all tax rates and tax caps like Easton has that are expressed in terms of dollar figures to be reduced by 60%. He stated that there is some concern with some members of the town staff that the tax rate is no longer adequate to provide the revenues necessary for the town if the town is going to continue to provide services at the rate that we currently have been. Mr. Kehoe stated that the town can either increase revenues, decrease expenditures or a combination of both. He stated that the purpose of tonight’s resolution is to move that dialogue along which is to increase revenue.
Mr. Kehoe stated that the second resolution provides that the council has the authority to exceed the maximum tax rate if it is necessary to raise money for paying principal and interest due on debt secured by municipal bonds issued by the Town. He stated that this Charter provision was enacted in the 1950’s whereby at that time issuing bonds was the primary way that local governments borrowed money. Now often times, it is far more economical for the Town to borrow money for shorter time periods through issuing promissory notes from the bank and other lenders much the same way businesses do without all the costs of the bonds.
The Town Attorney stated that the resolution becomes effective 50 days after the day of enactment. If within 40 days after the date of enactment, the Town receives a petition signed by 20% of the registered voters of the Town, the Town would submit the issue to the voters through a Regular or Special Election.
The Town Clerk summarized why the Town is contemplating the Resolutions. Mr. Karge presented the Town’s financial position. He stated that the first Resolution doesn’t by itself cause the tax to increase however that is what is likely to lead to. The second Resolution merely allows the Town to include all debt in the setting of the tax rate. Mr. Karge stated that the tax cap has not been changed since 1955 other than a State of Maryland technical change that made no real effect. The Town Clerk stated that the CPI has gone up 637% over the last 50 years; National Average Wages have increased 980% over the period from 1955 to 2004; as well as assessments that have increased significantly. He stated that the Town continues to experience severe cash flow problems. Various commitments have been made not the least of which were related to the impact fees for capital improvements. Demands for services show signs of increasing as well as the implementation of GASB. Mr. Karge stated that the Town has been experiencing a decline in bond rating which means we pay more money in interest. He stated that the Town can increase the revenue, decrease the spending or a combination of both.
The Town Clerk outlined the steps taken so far. He stated that the Mayor and Council have adopted a Reserve Fund Policy setting money aside. Mr. Karge presented what the budget requests for various departments were compared to what was actually approved in the current budget.
Mr. Karge discussed the budget requests by the department heads and what was actually funded He discussed the fact that tax exempt entities do not pay any taxes although they receive services.
Discussions occurred regarding the Government Accounting Standards Boards (GASB) reporting requirements.
Mayor Willey discussed ways the Town has decreased spending.
Mr. Karge discussed the Town’s bond rating.
Mr. Karge stated that the Town had not adjusted the expenses down with the decrease in revenues.
The President of the Council opened the Public Hearing for public comments.
Mr. George Sakalas, 29647 Tullalah Lane, stated that with the $.70 increase, his tax increase would be 79%; second year 97% and the third year 170%. He asked the elected officials to take part of the responsibility. Mr. Sakalas asked the Mayor and Council to plan ahead and have a surplus instead of a deficit with a contingency for the future. He suggested the Town do more outsourcing. He suggested getting the developers to pay for everything.
Mr. John Ward, 506 Diamond Street, read a statement opposing the tax increase that was supported by the Talbot County Taxpayers Association, Inc. in which he is a member. He recommended a much more modest cap adjustment; less than a 25% increase. Mr. Ward stated that impact fees should subsidize the shortfall.
Mr. Jim Catra, 7891 Fort Stokes Lane, has lived in Easton for 16 months asked when the Moody’s bond rating had been downgraded. He stated that he has not heard tonight how we got to this place over time or how we are going to stay out of trouble. He stated he gets no services but garbage pickup. Mr. Catra stated that the people in charge have to take the hit and it is their fault and not always fair. Mr. Catra asked for more planning.
Ms. Jackson-Amis suggested reducing expenses such as cutting the budget allocation for the Avalon Theatre.
Mr. Gene Mechling, 222 S. Washington Street, questioned how we got to this point. He stated that the community needs more information and there’s not enough information available for the public.
Ms. Ruth Rose, 29695 Lakeview Court, suggested tabling construction of the east/west connector road. She suggested finding ways to cut back.
Mr. Jay Friedman, 28584 9th Drive, stated that he has reduced services from the Town due to their community’s private roads. He discussed the tax base for the residential versus the commercial tax base.
Mr. Bruce Gordon, native and resident of this town, stated that the Council needs to be leaders in the entire peninsula. He stated that the incorporated municipalities on the shore are out of control. He discussed losing farmland on the eastern shore. He suggested shutting growth down across the peninsula.
Ms. Libby Dawkins, 11 N. Thorogood Lane, discussed senior citizen residents. She questioned what has been done to save money. Ms. Dawkins stated that the police department should not be cut. She said that the entire fault cannot be put on the developers.
Mr. John Cappa, 49474 Corbin Parkway, discussed the increase of his county taxes. He stated that the increase is too much.
Mr. Marty Schwartz, Clubhouse Drive, discussed what he thinks is the steady decline of the town’s net worth. He stated that the Town is trying to fix the problem by doubling the town’s tax rate.
Ms. Dawkins discussed switching the agenda and how much has been saved.
Mr. Bob Hoskins, 28505 Sawgrass Court, came to the town three years ago. He discussed the Black & Decker tax shortfall. He supports the view regarding changing the ration from residential to commercial and suggested looking at floating a larger bond for one time expenses until it is all caught up.
Ms. Joyce Delaurentis, 220 South Street, discussed vacant properties and the loss of tax revenues from properties that are unutilized. She suggested a policy to urge property owners to utilize vacant lots.
The President of the Council stated that the public record would be kept open for additional comments until the close of business on Friday.
At 9:33 p.m., the President of the Council closed the Public Hearing.
AUDIENCE COMMENTS
Priscilla Morris, 702 South Street, discussed the Zoning Ordinance and the use of it on the Town’s website. She questioned the effective date of the Ordinance.
EXECUTIVE SESSION
At 9:30 p.m., upon motion by Mr. Jensen, seconded by Ms. Scott-Taylor and carried unanimously, the President of the Council adjourned the regularly scheduled council meeting to go into a Closed Meeting to discuss real estate matters and for the advice of counsel.
Mayor Willey departed the meeting at 9:49 p.m.
ADJOURNMENT
The President of the Council adjourned the regularly scheduled Council meeting at 9:59 p.m.
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Town Clerk