WICOMICO COUNTY COUNCIL

SALISBURY, MARYLAND

December 19, 2006

 

2006 LEGISLATIVE SESSION                                              LEGISLATIVE DAY NO. 9

 

Present: John T. Cannon, President; Stevie Prettyman, Vice President;

William R. McCain, Sheree Sample-Hughes, Gail M. Bartkovich, David A. MacLeod, and Joe Holloway.

 

In attendance: Richard M. Pollitt, County Executive, Theodore E. Shea, II, Director of Administration (Theodore E. Shea, II, will sit as Acting Council Administrator; Michael Kleger and Kathleen Robins, Pigg, Krahl, Stern; Patricia Petersen, Director of Finance and Edgar A. Baker, Jr., County Attorney.

 

The Wicomico County Council met in Legislative Session at 10:00 a.m. in Council Chambers, Government Office Building, Salisbury, Maryland.  President Cannon called the meeting to order. The Lord’s Prayer and Pledge of Allegiance were recited.

 

APPROVAL OF MINUTES

On motion of Mrs. Bartkovich, second by Mr. MacLeod and unanimously carried, the Minutes of the meeting held December 5, 2006 were approved as submitted.

 

INTRODUCTION OF RESOLUTIONS

In accordance with the Charter, County Executive Richard M. Pollitt extended an invitation to Council members and the public to attend the State of the County Address, December 28, 2006, at Noon in the Council Chambers of the Government Office Building.

 

Resolution 619-2006: Appointment of Department Heads

On motion of Mr. McCain, second by Mrs. Bartkovich, Council unanimously confirmed the following appointments:

 

Director of Administration                                             Theodore E. Shea, II

Department of Law                                                       Edgar A. Baker, Jr.

Department of Human Resources                                  S. Michael Thompson

Department of Finance                                      Patricia B. Petersen

Department of Planning, Zoning

and Community Development                           John F. Lenox

Department of Public Works                                         P. Rai Sharma

Department of Recreation, Parks and Tourism   Gary W. Mackes

Department of Corrections                                            Douglas C. Devenyns

Director of Information Services                                    Raymond Micciche

Department of Emergency Services                               Sandra Silvia

Wicomico Partnership for Families and Children            Linda Hardman

Wicomico County Nursing Home                                  Mary E. Schwartz

Salisbury-Ocean City: Wicomico County

Regional Airport                                                           Robert L. Bryant

 

 

NEW BUSINESS

Mr. Pollitt presented the Independent Financial Audit Report for the year ended June 30, 2006.  Mike Kleger, Partner, and Kathleen Robbins, Manager, PKS & Company, P.A. (Pigg, Krahl & Stern) reviewed significant highlights of the report with Council members. Mr. Kleger explained that standard accounting practices require the auditors to express an opinion of the financial statements, and requires a report on internal controls over financial reporting and compliance matters.   

 

General Fund Highlights:    

  • The County’s government-wide results of operations reflect an increase in net assets of $25.2 million.
  • Within its main Operating funds, Operations show revenues in excess of expenditures of almost $12.7 million.
  • General Fund revenues increased about $7.7 million; General Fund expenditures, including transfers, increased about $4.6 million.
  • The County’s Rainy Day Reserve increased $296,000. Total Reserves for the General Fund decreased $314,000.
  • The General Fund budget for fiscal year 2006 was about $6million more than last year.
  • Roads Division: Gas tax revenues were reduced 19% in 2004; they were restored to normal levels in 2005 and in 2006 experienced a $1.3 million dollar increase in gas tax revenues from the State.
  • Grants were down approximately $500,000; including public safety, social services and recreation and culture.
  • Airport reported revenues over expenditures of $7.6 million.

     

Kathleen Robbins also reviewed General Fund expenditures for Council’s consideration.

The Annual Audit is available to the public for review.  Patricia Petersen, Director of Finance, introduced John Ellis, Chief Accountant, to Council.  Mr. Ellis is in charge of the audit within the Finance Department.  Mrs. Petersen also briefly explained that estimated property tax figures are received from the State in February and are used to base the tax rate; the County is allowed a 2% increase in revenue on its existing base; as the base increases the tax rate is adjusted downward.  It should also be taken into account that the County is allowed the revenue on new construction (for the year in which construction takes place); thus, the property tax revenue would increase more than 2%.  Mrs. Petersen thanked the PKS staff for their very thorough audit.

 

Theodore E. Shea, II, is requesting approval of Resolution 620-2006 to approve certain transfers between major categories of the Wicomico County Board of Education Operating Budget for fiscal year 2007; transferring a total of $63,138 as shown on

Exhibit A.  Messrs. Bounds, Foret and Ford, Board of Education staff, were present to answers any questions posed.  Following review and on motion of Mrs. Prettyman, second by Mr. McCain, Council unanimously approved the Resolution as submitted.

 

Mr. Shea recommended that the public hearing for the Capital Improvement Plan/Budget public hearing be set for January 16, 2007, 7:00 p.m., Council Chamber, Government Office Building.  Council concurred with the recommendation.

 

Mr. Shea is requesting approval of Resolution 621-2006 to provide a supplemental appropriation from Contingency to the Dept. of Recreation and Parks to make repairs to the Billy Jackson Park concession facility, in the amount of $5,618.91.  Following discussion and on motion of Mrs. Sample-Hughes, second by Mr. MacLeod, Council approved the above referenced Resolution.

 

Mr. Shea requests approval of Resolution 622-2006, approving the 2007 Recreation Program Enterprise Budget for the Dept. of Recreation, Parks and Tourism, including fees for services provided therein and appropriations for expenses by category and line item.  Following discussion and on motion of Mr. McCain, second by Mrs. Bartkovich, Council unanimously approved the Resolution as submitted.

 

Mr. Shea inquired of Mr. Baker, County Attorney, if a resolution is required for the next item of business, that being approval to close certain bond project accounts.  Mr. Baker confirmed the necessity of a resolution, but suggested that Council proceed with approval and a resolution would be prepared as Resolution 623-2006. Mr. Shea continued, stating that eight projects should be closed, with the nominal balances transferred to the Bond Contingency fund.  On motion of Mrs. Prettyman, second by Mrs. Bartkovich, Council unanimously approved the request as submitted.

 

Tax Incremental Financing

Mr. Shea referred to action taken by a previous Council to table a decision to extend the Tax Incremental Financing Resolution (TIF). On motion of Mrs. Prettyman, second by Mr. MacLeod and unanimously approved, Council voted to take the Resolution from the table for discussion. Mr. Baker explained December 3l, 2006 is the sunset date for Resolution 624-2006 and if extended, will keep the project moving forward; the project is not at a point where bonds can be issued and the developer requests an additional three years, extending the Resolution to 2009. The County’s involvement is the Contribution Agreement which has been signed by the developer and the County but not the City; the Agreement is not binding until the City has signed.  Further, the City set up the TIF, the County’s role is an assignment of the incremental revenue that the development creates to the Fund established by the City, which would then be used to pay debt service on the bonds. The benefit to the County is the purchase of land for the Civic Center consisting of about five acres.

 

Comment from Attending Citizens:

Dr. Augustine DiGiovanna, Don Cathcart, and Salisbury City Council President Mike Dunn expressed support. Debbie Campbell (speaking as a citizen rather than in the capacity of City Council Member) and Linda Kent spoke in opposition. Terry Cohen shared alternate funding solution possibilities and alternate mechanism for the time constraint. Dot Truitt expressed interest in an exchange for the use of the County parking lot.  Director of Recreation, Parks and Civic Center Gary Mackes shared information on event attendance and its impact to parking at the Civic Center, as well as cost estimates to purchase the land for additional parking. Salisbury Mall Managing Associates Jon Natelson and Michael Zollman addressed impacts to the City of Salisbury, Wicomico County and the development. Mr. Natelson explained the property (old mall) is a derelict building that developers propose to replace with an estimated $200 million dollars in development value; but can not be constructed without the TIF.  He reiterated, the County gains additional parking, would expend no out-of-pocket costs, and should realize revenues in excess of $70 million dollars over the life of the bonds.  In case of default the developer has to make up the difference to service the debt on the bonds. If he fails to do so, the bond holders have the right to foreclose. Dave Suiter requested Council deny the TIF or at least table it for further research; Kenneth Holland doesn’t see the benefit to the quality of life the project brings.  The President called for a motion to amend the Resolution to extend the sunset date for six months. Mr. McCain offered a motion. Mrs. Sample-Hughes offered a second. On a roll call vote: Mr. Holloway, yes; Mrs. Sample-Hughes, yes; Mrs. Bartkovich, yes; Mrs. Prettyman, yes and Mr. McCain, yes, and the Chair yes, Council voted to amend the Resolution. The President then called for a motion to adopt the amended Resolution. On a roll call vote, Mr. Holloway, no; Mrs. Sample-Hughes, yes; Mrs. Bartkovich, no; Mr. MacLeod, yes; Mrs. Prettyman, no; Mr. McCain, yes and the Chair, no, the motion to approve the amended Resolution failed on a vote of 4-3.

 

Mr. Shea introduced the President of (MACo) Maryland Association of Counties and Senator-elect Jim Robey.  Mr. Robey is the former County Executive of Howard County. Joining him were David Bliden, Executive Director of MACo and Past President, Henry Parker. Each encouraged Wicomico County to continue its participation in the nonpartisan organization, whose mission is to work on issues for the betterment of Maryland. Mr. Bliden shared an informational brochure, together with a brief overview of budget appropriations and reductions at the local and State levels.

 

Comments from Attending Citizens:

A member of the audience congratulated Council members on how the conduct of business was carried out.

 

Council Member’s Comments:

Council members extended best wishes for the upcoming holiday season; expressed its congratulations to Salisbury University on its December graduation exercises and thanked those who involved their efforts in processes of the Tax Incremental Financing.

 

Council President’s Comments:

Mr. Cannon stated the Council’s decision today on the Tax Incremental Financing is the result of their diligence in obtaining information to ensure a well-balanced decision.

 

The County Council reserves the right to close a portion of this meeting as authorized by Section 10-(508)a of the State Government Articles of the Annotated Code of Maryland.

On motion made by Mrs. Bartkovich, seconded by Mr. Holloway and unanimously carried, Council voted to enter a Closed Work Session to discussion personnel issues.

 

With no further business to come before the Council the meeting was adjourned.

 

 

 

 

 

 

 

 

 

Wicomico County Council

December 19, 2006

                                                            ____________________________________

                                                            John T. Cannon, President/At Large

 

                                                            ____________________________________

                                                            Stevie Prettyman, Vice President/District 2

 

                                                            ____________________________________

                                                            William R. McCain, At Large

 

                                                            ____________________________________

                                                            Sheree Sample-Hughes, District 1

 

                                                            ____________________________________

                                                            Gail M. Bartkovich, District 3

 

                                                            ____________________________________

                                                            David A. MacLeod, District 4

 

                                                            ____________________________________

                                                            Joe Holloway, District 5

 

_____________________

Theodore E. Shea, II

Acting Council Administrator