FY25 Budget Work Session
Originally Published: March 19, 2024
County Dept’s, Compensation Reviewed
The Commissioners heard from various county departments during the March 12th budget work session, as they reviewed the total of $3.9M in requests against the County Administrator’s (CA) recommendation of $2.46M. The easiest decision was the allocation of $96K for the Circuit Court to raise per diem amounts, and purchase of interpreter equipment and a new smartboard. Chief Financial Officer (CFO) Jeanette Cudmore told the Commissioners updated revenues showed an excess of $7.3M versus budgeted expenses, while the unassigned fund balance was $4.92M. The excess revenue and fund balance amounts are available for use towards additional requests.
Running through department requests, the Commissioners approved the following: $750K for Information Technology to purchase additional software licenses for the State’s Attorney’s Office (SAO), system maintenance, and network core router replacement; Land Use and Growth Management (LUGM) was approved for CA recommended amount of $128K, $125K of which is to contract a consultant to update the Comprehensive Water and Sewer Plan; Public Works & Transportation was approved for the CA recommendation of $236K for training, two positions and a promotion; the CA recommend $192K for Recreation & Parks was approved to cover a new position for the childcare center, additional hourly expenses for more employees in parks, grounds maintenance, and equipment.
The Commissioners approved the purchase of new equipment and vehicles, benefitting several departments, outright rather than financing across five years. CFO Cudmore advised the Commissioners of $2.5M in unexpended bond authority which could be allocated to a Capital Improvement Project (Elm’s Beach). Freeing up $2.5M in previously allocated fund balance increased the now available balance to $7.4M. The cost of purchasing 17 new vehicles was $1.5M; the total equipment replacement cost was $5.2M, covering laptops for the Sheriff’s Office, replacement lifts for Public Works, and radio communications equipment replacements for EMS. The Commissioners used a combination of Emergency Reserve and Fund Balance to fund the procurements.
Next, the Commissioners discussed how to implement suggestions from the recent compensation review study. Commissioner Hewitt was in favor of changing the 85/15 healthcare contribution split to 80/20, which would save the County money by making employees pay more for insurance. This was not a suggestion of the study. Hewitt believed the policy is too generous, and said St. Mary’s County Public Schools and neighboring counties have higher employee contributions. Commissioner Colvin said the low employee contribution percentage is a recruitment tool, one of the only ones the County has over other employers. HR Director Catherine Pratson and Sheriff Steve Hall agreed. Colvin also said he didn’t believe the County should “balance the budget on the backs of employees.” Commissioner Hewitt motioned to change the healthcare contribution rate to 80/20, with a second from Commissioner Alderson, but since Commissioners Colvin, Guy, and Ostrow voted against, the motion failed.
However, the Commissioners did agree to improve employee compensation. Increasing shift differential from $1 to $2 per hour, providing a COLA and 2.5% Step increase for all employees, and a three-year phase in of an 11% market adjustment to pay rates were all approved. After all the decisions, CFO Cudmore estimated there was $1.5M in unused funds remaining.
Later today, the Commissioners will meet for another budget work session. They will provide direction on funding for state agencies (like the Health Department, Social Services etc), non-profits, the Board of Education’s additional funding request, and any other items needing a decision prior to final balancing. March 26th, the Commissioners approve their recommended FY25 Budget. The Budget Public Forum is scheduled for April 23rd, 6:30PM at Great Mills High School.
