Mayor Williams reported on upcoming agenda items.

Darryl Perry, spoke in support of the grant request for life safety and swimming lessons at Piney Branch Pool. Mr. Perry also noted that Tebabu Assefa, Takoma Park resident, had been awarded a Champion of Change Award by President Obama.

Wayne Sherwood, Grant Avenue, spoke in support of the request from Adventist Community Services to provide swimming and water safety instruction at Piney Branch Pool. Mr. Sherwood's extended comments are attached.

Mr. Grimes announced that the next senior issues meeting would take place Wednesday, February 1.

Ms. Daniels-Cohen reported that she had attended two meetings involving the Takoma Park Police -- the Compstat meeting at the Community Center and a community meeting in Ward 6. She commended the Police Department on the meetings.

Ms. Daniels-Cohen noted that the Takoma Park Newsletter is a storehouse of information about what is happening in Takoma Park. She urged residents to read the Newsletter.

Ms. Daniels-Cohen noted that the City is a nationally-awarded Playful City. She announced the upcoming Play Day on February 9.

Mr. Seamens congratulated Tebabu Assefa on his Champions of Change Award.

Mr. Schultz commented on the community meeting in Ward 6 held with Chief Ricucci and the Hyattsville District Police. He noted that it was an opportunity for residents in and out of the city to get a more comprehensive picture of crime in the area and what the police are doing about it.

Mr. Schultz reported that he had visited Meals on Wheels of Takoma Park, located in Zion Evangelical Lutheran Church. The program serves a broad area with about 70 volunteers, mostly delivering meals. The program has been operating at its current location for 41 years.

Mr. Williams reported on testimony he had given in Annapolis at the Senate Budget and Tax Committee on behalf of MML.

Mr. Williams commented on the recent Compstat meeting. He said he was impressed with the information provided by the Police Department and by the number of people who showed up for the meeting.

Ms. Matthews distributed copies of a letter sent to the Board of License Commissioners by the Police Chief regarding issues Tijuana's Restaurant.

Mr. Seamens asked if it would be possible to limit the hours of operation for sale of liquor.

Chief Ricucci said that the standard license goes to 2 a.m. He suggested that the Council send a letter requesting that the Board of License Commissioners hold a hearing on Tijuana's license.

The Council indicated its support for sending a letter.

(1) City Manager's Quarterly Report and Financial Report

Ms. Matthews distributed her quarterly activity report (attached). The report is intended to give the Council and the community a sense of how the staff spends its time. She noted in particular the work done by Paula Lisowski and the Recreation Department staff, Chief Ricucci for getting the citizens’ police academy underway, and Sara Daines for her work on cultural activities.

Ms. Matthews presented the quarterly financial report (attached). She commented that revenues for the quarter are where she thought they would be. She noted that she would recommend a Stormwater Fund budget amendment because the City did not receive a grant it expected. The Speed Camera fund revenues are as expected while expenditures were lower than expected. She said that, to her recollection, the City is well below the 10% that would trigger payment to the State. However, she noted that as other revenues decline, the Speed Camera revenues become a higher percentage.

Mr. Seamens suggested that the City ask the State to raise the percentage.

Mr. Snipper commented on expenditures to date. He said that he was concerned that there may be a natural tendency for departments to want to come in under budget. He said he would like to avoid departments not doing programs as a means of coming in under budget.

Ms. Matthews indicated that this only happens when other priorities prevent the projects from being completed or when staffing vacancies occur.

(2) Discussion of Financial Matters and Budget Priorities

Ms. Matthews presented information on the budget preparation process and schedule. She noted that we do not receive revenue information about the assessable tax base until the second or third week of February. The County Executive does not release his budget until March 15. The new health insurance rates are not available until close to the end of the fiscal year. As she puts together her budget, she will be seeking to maintain adequate reserves to ensure cash flow and avoid service disruptions; maintain infrastructure; and use surplus funds that are nonrecurring for one time expenditures, not for ongoing costs.

Ms. Matthews noted that the personal property tax rate and the rate for railroads and utilities have historically been calculated at two and one-half times the residential property tax rate.

Mr. Williams commented that a fair number of Maryland jurisdictions fine tune the personal property and railroad/utility rates and he would like the Council to consider this. He noted that the revenue from those sources has not increased as much as the real property tax rate.

Mr. Male indicated that he would not want the longer trajectory for the tax rate to be an increasing burden on real property taxes.

Ms. Matthews provided an overview of issues and trends for revenues and expenditures, including the recent trend toward reductions in intergovernmental revenues, staffing reductions in FY 2011, and cost drivers associated with staffing.

Mr. Snipper commented that the General Fund fund balance was still high, projected to be 33% of expenditures at the end of FY 2012.

Ms. Matthews said she would recommend a contribution to the reserve funds or buying down the City’s debt when there are not early payment restrictions.

Mr. Snipper suggested that, while it does make sense to pay off higher interest rate debt, he would not necessarily want to eliminate all debt. The City could consider bond funding for some capital improvements.

Mr. Male asked for historical and projected information on the debt pattern and interest payments.

In response to a question from Mr. Grimes, Ms. Matthews estimated that about $1 million a year is spent on capital. However, it can vary widely.

Mr. Grimes suggested that, overall, the City should avoid adding new services. He said that he is generally against bonding and would like to reduce the City’s bond indebtedness. He would prefer to build reserves to pay for future capital projects.

Later, Mr. Grimes added that he does believe in community and public private partnerships to shift risk and allow the city to focus on core competencies and services.

Mr. Schultz commented that interest rates are at historic lows and the city is not earning much on cash reserves. He said it may make sense to talk about the policy of maintaining city infrastructure on a cash basis.

Council discussed whether the amount dedicated to street maintenance is sufficient. It is currently $500,000 per year.

Mr. Male said he would take a favorable eye towards bonding if it were for doing new and exceptional things.

The Council next provided guidance to the City Manager on certain budget related issues that she listed.

Tax Rate for FY 2013

Mr. Williams indicated that he would like to see the property tax rate remain the same, but he would like to discuss adjusting the personal property tax and railroad and public utility rates.

Mr. Snipper said that his position on the tax rate would depend on what the Council wishes to do in the next year.

Mr. Male commented that he would like to see the rate remain stable or decline.

Mr. Schultz said he would want to take into account the possibility that the rate may need to go up (possibly by one-half cent) to add capacity to staff to get more work and projects done.

Mr. Grimes felt it was premature to talk about the rates. He noted that he has heard from residents about affordability; incomes have not kept pace with the rise in assessments and taxes.

Mr. Matthews said she would provide information to the Council on the City’s property tax rebate program for qualified residents.

Mr. Seamens supported shifting more expenses to the Speed Camera Fund and maximizing the use of speed cameras to increase safety. He said he would like to see commensurate reductions related to any proposed new expenditures (120% reduction for each new service).

Resident Survey in FY 2013:

The Council was generally supportive of doing a resident survey in FY 2013. However, Mr. Snipper, Mr. Male, Mr. Seamens, and Ms. Daniels-Cohen indicated that they wanted the survey to relate to measuring the community’s support for specific activities of the city and how the activity is working and also have it be relevant to policy issues.

Proposed New Position in the Public Works Department (Special Projects Coordinator):

Ms. Matthews explained that the position would help with writing Requests for Proposals, project development, attending community meetings, overseeing construction and the capital projects to keep the pace going.

The Council was supportive of adding this position. Additionally, the Council generally supported an increase in the stormwater fee to fund the additional project capacity that may be possible with the new position. Councilmembers recommended that the City find a way to really explain to the community why the rate is increasing.

Proposed New Position (Management Assistant) to be Shared between Administration, Finance, and Housing and Community Development:

Ms. Matthews explained that the position would be intended to help fill gaps and ease pressure points in the three departments.

The majority of the Council was generally not convinced of the need for this new position.

Level of Funding for Sustainability Initiatives in FY 2013:

Councilmembers were supportive of funding, but wanted more information before determining the proper amount.

Speed Camera Fund / New Position in the Police Department (Communications Supervisor/Emergency Coordinator):

Ms. Matthews described the several Police positions that have been shifted to the Speed Camera Fund. She noted that her focus had been on capital expenditures from the fund. For example, she had recommended that the Council set aside $400,000 for purchase of new radios when it is time to upgrade the system. She noted that the State is now relying more on its speed camera revenue for ongoing expenses.

The new position proposed would serve as the Police Communications Supervisor and Emergency Management Coordinator. Ms. Matthews said she would only recommend the position if it is to be funded out of the Speed Camera Fund.

Mr. Seamens indicated that he relied heavily on the City Manager’s recommendations regarding use of the Speed Camera Fund for ongoing expenses. He said he would support funding an officer to work with youth. He would consider supporting the Communications/Emergency Management position. He wanted to be sure the funding for the new position wasn’t just to spend the money because we have it.

Ms. Daniels Cohen said she fully supported the new position.

Mr. Grimes tentatively supported it. He asked for more information on the ADA sidewalk retrofit work and the legal requirements for doing it.

Ms. Matthews said that the idea is that equal access to community facilities is provided. There should be a systematic approach. The $300,000 she recommended would be the minimum figure to spend annually and still make steady progress.

Mr. Male said he did not support the position but could change his mind. He said he wants to do more than the minimum on the ADA work and also wanted to fund new sidewalks and traffic calming.

Mr. Schultz said he supported the combined new position but also wanted to set aside some money for new sidewalks.

Mr. Snipper supported the position, but expressed some concern about having speed camera money pay for a management position. He preferred to use the money for more direct safety related positions. He supported $300,000 for the ADA retrofit work and another $300,000 for new sidewalks and traffic calming.

Mr. Williams was generally not in favor of the new position. He supported more funding for the ADA retrofit work and also funding for traffic calming and sidewalks.

Stormwater Project Study:

The Council was supportive of hiring a firm to review existing areas of impervious surface to determine the most cost effective and efficient methods for treatment of 52 additional acres of impervious area by the year 2020 (to meet new federal mandates).

(3) Discussion of Large Grant Applications

This item was deferred to a future meeting.

The City Council adjourned for the evening at 11:02 p.m.