BUDGET UPDATE FROM ALDERMAN ROSS ARNETT, DEMOCRAT, WARD 8 (EASTPORT)

CP appreciates Ross's efforts in providing this update. As readers may recall, CP thanked Mayor Moyer in an earlier post for clearly describing our long-term challenges in balancing our budget and in raising revenue. Ross's piece below adds clarity. We all better start figuring our way out of this, especially as property values stall or decline. As for CP's take, we don't mind taxes or government as long as as they are working to provide for the common good. and now, Alderman Arnett....

Well, It’s that time of year -- budget time. Not a very sexy topic, but oh so important to the City's well being and to your wallet. I apologize in advance for the amount of numbers sprinkled throughout this discourse. I tried to keep them to a minimum, but some numbers are necessary for context.


At just under $74.3 million, the Mayor has submitted a balanced budget, in that the revenues cover the expenditures [You can view the proposed fiscal 2008 budget online by going to the City website]. This was accomplished only by not funding several expenditures that are sorely needed by the City, but more on that in a bit.


I want to take a little space to address the revenue side of the ledger. Revenues come from two general sources, general funds ($52.2 m) and enterprise funds ($22.1m). The latter are revenues generated by fees we pay directly for such services as water, sewer, parking, docking, transportation, refuse, the market house and stormwater. By law, the fees for these services must cover their expenses. The City has been able to do a good job of keeping these funds in the black with just small positive cash reserves.



The general funds come from taxes ($28.2m), Licenses and permits ($2.9m), intergovernmental transfers ($12.7million, with $5.1 coming from State income taxes, $1.9m from State highway taxes, $1.9 m from hotel taxes, $1.2 from police protection, and many smaller transfers) with the remainder coming a variety of services, fines and earnings. The $28.2 million tax source draws the most attention because of the $25.7 million that comes from our property taxes.


The property tax is generated by applying a cents-per-hundred rate to the assessed value of property. Over the years, the City has been dropping the rate from a high of $1.15 per hundred to the current $.53 per hundred rate. Of course, much of this rate drop has occurred because of the dramatic rise in property values over the past few decades. While a direct comparison is not possible, it should be noted that our tax rate is the lowest of any municipality in Maryland by a considerable margin, and that includes many Cities, such as Rockville, in expensive real estate areas. I will return to this topic towards the end of this discussion. By the way, the one-cent per hundred rate equals about $486 thousand in revenue with the current level of property assessments.


Returning to the general fund expenditures, almost 83 percent of the $52.2 million goes to salaries, benefits and contract services, that is, staffing. Most of that amount, about $40 million is set by union contract agreements, both the level and the annual increases. Much of the remainder of the $52.2 million goes to supplies, maintenance and repairs, utilities and debt service. What’s the point? There is an extremely small amount of discretionary wiggle room on the spending side of the budget. Furthermore, the heavy preponderance of our spending is on matters of public safety such as police and fire, but also including public works and inspections. These are the fundamental services provided by a municipality and are not easily cut.

For those few who care to examine the details of the budget looking for cuts, one item that draws attention is the $2.5 million spent for contract services. To be sure, some of this could be reduced a bit, but most is to hire for services where we have no permanent staff. The alternative is to hire staff with the attendant fringe and retirement costs. It’s not clear that these are really budget cuts in the long run.


Another target for cuts is the City’s grant program, which this year totaled $382 thousand. The working mark for the current budget is $500 thousand, which returns funding back up to the fiscal 2006 level. The first thing to note is that we are looking at thousands, not millions of dollars. The current grants selected for funding, out of over 50 applicants, cover 24 wide-ranging programs. The City’s funding is only a small part of the total funding for these programs. In other words, our few dollars of contribution leverage many times more dollars coming from private philanthropic organizations or other governmental entities. This year we are giving priority to grants aimed at helping children and persons needing help in coping with a wide assortment of physical and mental problems. We are funding no new programs this year and are funding one grant for the full amount requested by the applicant.


In putting together the budget, the Mayor looked at millions of dollars of budget “enhancement” requests from each department. From my review, most of these looked not only reasonable, but also, often very desirable. The Environmental Matters Committee reviewed the Public Works enhancement requests and found $1.5 million in additional items they would fund over what the Mayor submitted. It goes like this throughout the budget; many worthy items did not get funded in order to keep the budget spending balanced with revenues.


So the struggle continues to hold the line on expenditures in fiscal 2008, when we have so many items where additional spending is sorely needed.


But here is the big rub. After fiscal 2008, we are headed for some significant budgetary difficulties. In FY 2009, revenues are projected to level off or possibly even to fall while expenditures are forecasted to continue on their current trend. Given the lack of discretionary flexibility to control spending mentioned above, this will put great pressure on the Council to increase of the cents-per-hundred rate applied to the property assessments possible by a large amount – not a happy picture. Though revenue picture is forecasted to improve in FY 2010, they don’t keep up with expenditures and we will face another potentially large shortfall.


By law the City must pass a balanced budget, so, we are either facing major cuts in City services or substantial property tax increases. The latter may be sustainable by many wealthier residents in Eastport and the City but has the prospect of greatly affecting the demographics of our neighborhood and the City at-large.


Obviously, there are things that need to change, and change quickly, to keep the City on a sound fiscal footing. The Council is work on a range of ideas, mostly involving expenditure cuts, and I encourage all of you to take a look at the budget and to share your ideas with me or any other Council Member. I realize this will sound like the typical bureaucratic response, but the Council is going to invite a “blue ribbon” panel to help us evaluate the situation and develop an array of fixes before the crisis is fully upon us.


In the meantime, crime continues to be a growing concern. There are many different groups working on the problem and each groups has its own set of plans to address the problem. The Public Safety Committee, of which I am a member, is planning to hold a meeting of all the different groups in June to see if there is some way to coalesce all the different ideas and energy into one united force to attack the problem. This is still very much a work in progress, with, sadly very little progress to report.


The Adequate Public Facilities Ordinance (APFO) issue is still working and progress is being made. Mike Christman and I are working with Dave Cordle to get a package together that address, in the City code, the Comprehensive Plan, the Capital Improvement Program and the APFO in a coordinated fashion and following the State Annotated Code (i.e., the State Law) and the guidance from the Maryland Department of Planning. We hope to have our work done this summer and have a Council vote, probably in September. One of the side effects of getting this passed is that the building moratoria will be removed and we can start getting permit fees and taxes from work in suspense, help for our impending budget problems.


There is much more going on, but this is all the room I have for this Notebook report. As always you can reach me at 410-295-9743 or EastportRoss@aol.com to discuss these or other issues.



Your Alderman,

Ross Arnett

JUST THE FACTS, MA'AM

Today’s Baltimore Sun and Capital report that Annapolis City officials have shut down the renovation of our city’s police station due to what The Sun calls “inconsistencies between design plans and the actual work, water leakage, poor masonry work, and poorly fitted windows and doors.” Robert O. Schuetz, acting director of central services said the project is a year behind schedule. Well, at least Mr. Schuetz is not likely to be blamed here--he is new and may on fact be the best thing to happen to the city recently, but this process started under his predecessor, a man who was widely considered to be the most difficult and uncooperative employee in city government but who stayed on for years due to bureaucratic inertia, or maybe for fear of ?????. He has since left his job, perhaps because he was ready for retirement, or perhaps because of the Market House debacle. Let’s hope Mr. Schuetz can bring some order, but the question remains--who is “managing” things?

Is it the Mayor, or do eco tours, horses and anniversary celebrations occupy all her time? Is it the so-called City Administrator, or do his junkets to Brazil and China attract all his attention? What role should the Chief of Police have, if any, in this situation?

Should we be amazed that yet another city project has gone sour? How hard can it be? CP managed to see to it that the contractor he hired to renovate his home did the job on time and within budget, so why can’t the “professionals” entrusted with our money do the same? Again, CP says this is another example of why we need a City Manager form of government, or that we are not getting real management and administration from our City Administrator.

CP visited the station last fall to express his concerns over traffic, bicycling and walking safety to a group of officers and was appalled at the total mess. It was a rainy day and the parking lot was a disaster, with standing water, running water and mud flowing all over the place. There were no clear walkways or signs and CP had to wander through much of the construction area of the building--unescorted, without any help in finding the actual portion of the station that was opened. Water and mud was being tracked through the entire building and well, of course it look like a construction--only much worse--especially for a public building which was still occupied and providing vital public services. There were no signs and no apparent walkways through the construction to direct visitors. The whole thing felt unsafe and insecure.

Mayor Moyer and Mr. Agee--please explain to us in an honest and straightforward manner how you intend to fix this unacceptable situation.

BIKE TO WORK DAY-Friday, May 18, 7:00 - 9:00 a.m.

Bike 2 Work Friday, May 18th from 7:00 - 9:00 a.m. at the Annapolis City Dock(next to the Market House). There will be refreshments, t-shirts, giveaways and prizes to show our support for area bicyclists.

Register to attend at www.bike2workcentralmd.com by May 11th in order to be eligible for great prizes and to receive a t-shirt at the event. All pre-registered cyclists will receive a t-shirt, giveaways and refreshments from Hard Beans Coffee & Booksellers, Market House vendors: Fractured Prune and The Fresh Stop, and Whole Foods. Capital Bicycle representatives will be on hand to conduct safety checks. The Chesapeake Bay Foundation will showcase their 'Cyclists for the Bay' campaign. Let's rally to make this event a huge success! For more information, call ARTMA at 410-897-9340/410-269-RIDE.

May is National Bike Month and Clean Air Month. With our region's major traffic congestion and air pollution problems, one way to relieve these problems is to turn car commuters into bike commuters, especially for short commutes of five miles or less. The Bike 2 Work Day rally is a great way to promote the benefits of bicycling and we need your support!

MIDDLE YEARS PROGRAM NEEDS OUR HELP

This just in from Jeff Macris,

Dear Supporters of the IB Middle Years Program:

Eighteen months ago a group of dedicated parents embarked on a
grass-roots campaign to bring the world-class International Baccalaureate
Middle Years Program (IB MYP) to Anne Arundel County. We knew then it would
be a long struggle. We're coming to the end of that struggle, however, but
we urgently need your help to get this program funded. Right now the
program DOES NOT HAVE THE FUNDS TO START IN SEPTEMBER, but with your help
we're confident that we can get the money and start in the fall as hoped!

1. UPDATE. The IB MYP program has passed a number of hurdles this year.
It made it onto the Superintendent's draft budget in January, and it
survived the Board of Education's scrutiny. The full costs, however, did
not make it onto County Executive Leopold's budget. The County's Exec's
draft budget only provided for HALF OF THE NEEDED MONEY TO MAKE THIS
PROGRAM A REALITY. He funded the the transportation expenses and other
program costs, but not the 6 extra staff members needed: 1 coordinator in
each of the three middle school sites (mandated by IB International office)
+ 1 extra instructor in each of the three sites for extra language
instruction. To repeat, without these positions, the program will not
launch in the fall as hoped!!!

As you might have heard, the School Board requested tens of
millions of dollars of initiatives that were not funded by the County
Executive. What that means is this: ADVOCATES OF DOZENS OF OTHER PROGRAMS
WILL BE CLAMORING FOR FUNDS. THOSE THAT SPEAK OUT IN THE GREATEST NUMBERS,
WITH THE LOUDEST VOICE, AND WITH THE MOST CONVINCING CASE WILL WALK AWAY
WITH THEIR PROGRAMS FUNDED. Those who do not, will get nothing.

2. CAN IB MYP BE SAVED? YES! But we need an outpouring of public
support over the next few weeks. Here's what you can do right now!

3. ATTEND AND SPEAK AT UPCOMING COUNTY COUNCIL BUDGET HEARINGS:

-Monday, May 14th 7:00 Arundel Center

Arrive a few minutes early, sign-up to speak, and make our case to the
county council members!

4. WRITE AN E-MAIL TODAY! Write an e-mail to the Anne Arundel County
Councilmen, with a cc to County Exec John Leopold, members of the County
School Board, and the AACPS Superintendent. Express in your own words your
support for the IB MYP program. You can cut and past the following
addresses:

TO:
daryl.jones@aacounty.org, emiddlebrooks@aacounty.org, rdillon@aacounty.org,
jamie.benoit@aacounty.org, cvitale@aacounty.org, joshua.cohen@aacounty.org,
ereilly@aacounty.org, jholmes@aacounty.org

CC:
countyexecutiveleopold@aacounty.org, dcallahan.aacounty.org,
tricia.johnson@aacps.org, eugene.peterson@aacps.org,
konrad.wayson@aacps.org,
edward.carey@aacps.org, michael.leahy@aacps.org,
Enrique.Melendez@aacps.org,
Victor.Bernson@aacps.org, Brittany.Walker@aacps.org
kmaxwell@aacps.org

Please, we've come this far over the past year and a half... let's
not give-up over the next few weeks. PLEASE SPEAK AT THE COUNTY COUNCIL
BUDGET HEARINGS, AND PLEASE WRITE THOSE E-MAILS! Working together we can
raise the bar for our county's middle school students! PLEASE ACT RIGHT
NOW!!!

Best regards,
Jeff Macris
Pround parent of 5 present/future Anne Arundel County Public School
Students
Proud Supporter of IB Middle Years Program

CITY ADMIN. SALLIES FORTH, ECO TOUR AND FERRY TALES...

CITY ADMINISTRATOR OFF TO CHINA, BRAZIL…IN CITY’S BEST INTEREST? PERHAPS…..

CP has been told by more than a few knowledgeable sources that our hard working and effective City Administrator Bob Agee has been off to far-flung regions of the globe lately, supposedly to do the one thing that some say he is doing best--arranging sister-city programs. Despite two e-mails to the Mayor’s PIO inquiring about the nature of these trips, the Mayor’s Office has been mum--no news release posted on the city’s web site. Perhaps somebody thinks it’s in the city’s best interest to have its highest paid employee and ostensible Chief of Staff off to these places, but perhaps because he is more likely to do some good for Annapolis by not being here to do something…not so good? Assuming that he paid his own way (We do not know) he still did this on official city-time--yes? No? And finally, why did he leave during the budget season? Well, please tell us somebody??? We pay his 100k + per year salary. What’s going on? And why won’t Ray Weaver respond to CP’s inquiries???

FERRY TALES…MAYBE NOT SO FRACTURED AFTER ALL

CP joined a dozen other local folks and media people to take a high-speed boat ride across the Bay to Matapeake to simulate a ferry boat ride. CP has considered himself a member of the loyal opposition when it comes to the incipient proposal to start a ferry boat operation from Annapolis. However, CP is slowly coming around to favor the idea, as it is becoming increasingly clear that its main supporters are as intently interested in the “intermodality” and “interconnectivity” of such a water route as is CP. This is not just about a boat ride or a water route. It must be about linking with other as yet-to-be-determined or developed forms of land transportation. A ferry route in and of itself is doomed to failure, but if we can develop it as an integral part of other transportation options, it would have a greater chance of success--and of providing real service. Look for coverage of this in the local media…they were with us on the boat ride--after all, it’s kinda “sexy”…
http://www.myfoxdc.com/myfox/pages/Home/Detail?contentId=3147258&version=1&locale=EN-US&layoutCode=TSTY&pageId=1.1.1


ANNAPOLIS ECO-TOUR….PRAY FOR SUBSTANCE OVER STYLE

CP neither endorses nor criticizes this $225 bike ride, but boy, do we have a lot of questions….read below and check out the website…..

If you want to go to Annapolis now that the legislative session is over, here's a good reason - an Annapolis Eco-Tour May 15-16. Put together by Greg Drury and the Mayors office, the tour is a one-and-a-half day journey that begins with a 1.5-mile walking tour of Eastport, an informative boat ride around the harbor, and awards dinner with Mayor Ellen Moyer and Maryland Speaker of the House Mike Busch on Tuesday night. Wednesday will feature a 14-mile bicycle ride to many innovative environmental projects. The tour costs $225 per participant. Also available individually are 5/15 After-Work activities, register separately - $40 for either the Harbor Queen Boat Ride and wait list only for dinner at www.WholenessforHumanity.com
For an agenda or to register, go to: http://guest.cvent.com/EVENTS/Info/Agenda.aspx?e=3dc6255c-c06c-43a6-b5f6-574d151c94cd or contact Greg Drury at greg.drury@wholenessforhumanity.com or 202-686-9813.

HILLARY DILLARY, AT NINE O'CLOCK...THE SENATOR RUNS DOWN TO CITY DOCK

HILLARY HERSELF AT ANNAPOLIS CITY DOCK--WEDNESDAY, MAY 9, 9 AM
EXPECT "MAJOR CAMPAIGN ANNOUNCEMENT"

Thanks to a tip by a loyal reader, CP has learned and now confirmed this with her press office, but all CP knows for sure is that the Senator and Oval Office hopeful is expected to make a “major campaign announcement”. This announcement has also been posted elsewhere. CP will take a guess that it has something to do with global warming and sea-level rise! CP guesses further that what is likely to come out at our lovely little corner of Maryland, waterfront real estate will probably be …more greenhouse gas emissions? Other media report it will be about an endorsement by Governor O'Malley. See you there. At least there will be no “structural deficit” of Dems at City Dock. One cautionary word about the Senator from Illinois, er Arkansas, er I mean Washington, or is it New York?…If she is elected, at the end of her first term, there will have been 32 years of the same two families sitting as either President or Vice President…..(Bush senior 8 + 4, Bill Clinton 8, Bush Jr. 8 = Hill Clinton, 4 =32 years)…put that in your pipe and smoke it…BUT DON’T INHALE

BEYOND THE WALL OR NOT? WE NEED OUR CITY COUNCIL TO GET INVOLVED IN MORE FEDERAL AND STATE ISSUES

It seems that there is never any relief from news about some kind of scandal or inappropriate behavior on the part of somebody associated with the US Naval Academy. CP thinks it’s time the Annapolis City Council set up a special permanent committee to respond to and pass resolutions about any future scandals.

Recently, we’ve missed out on the prostitution “contractor” and before that, the Mids behaving badly thing. Once this committee is in place, our municipality will be able to respond quickly, and with a higher degree of background knowledge than has been shown with previous Academy issues.

First, we should establish some parameters. For example, are certain issues “beyond the wall” but other issues “within the city”? We need to clearly establish which issues are off-limits and which are of concern to our City Council.

Second, perhaps we need to set aside some public funds so we can carry out investigations. After all, we can’t take the Navy’s word for anything, so we have to do our own investigation.

Third, we need citizen input and a procedure to formalize this in public meetings at Council Chambers.

And finally, we need a committee to investigate whether there may be other government institutions in or perhaps near Annapolis, where we have to undertake a similar, formal process.

For example, the NSA, No-Such Agency, the Puzzle Palace near Fort Meade. A lot of Annapolitans work there--or so we are led to believe. What if we disagree with something the NSA does? Of course we have District and Circuit Courts in Annapolis and what if we disagree with a decision handed down by a judge or a jury? After all, Annapolitans serve on juries and some of the judges even live in our town, And then there is the Coast Guard which operates a Search and Rescue Station near Annapolis. What if we disagree with a decision to send a boat crew out in unusually bad weather? Do we take this all the way to the Secretary of Homeland Security or simply to the Commandant of the Coast Guard? Would this be handled through the Mayor’s Office or perhaps our Harbormaster? Do we simply go to the Coast Guard’s District office in Portsmouth or the office in Baltimore? After all, the boater in question could be somebody who rents a slip in Annapolis, or may even live in Annapolis.

And what about the Department of Natural Resources? The General Assembly? The State Police? They all have offices in Annapolis--and there are yet more! The Archives! The MD Secretary of State! The FBI Field Office!

These are important issues. We should not waste any time. At any moment, any one of these agencies could do something that might upset City Council. We need a committee, and we need it now!