KENT COUNTY, MARYLAND
COUNTY COMMISSIONER'S

PROPOSED FISCAL YEAR 2003 BUDGET

June 4, 2002

In compliance with and pursuant to Section 6-308 of the Tax-Property Article of the Annotated Code of Maryland, the County Commissioners held a public hearing on Tuesday, June 4, 2002, at 7:00 p.m. in the County Commissioners Hearing Room, County Government Center, 400 High Street, Chestertown, Maryland on the proposed Fiscal Year Budget beginning on July 1, 2002 to increase property tax revenues by 3.1% above the Constant Yield Tax Rate. The Constant Yield Tax Rate has been established by the Maryland Department of Assessments and Taxation at $0.982 per One Hundred Dollars of assessed valuation for Fiscal Year 2003. The proposed tax rate intended to be levied by the County Commissioners of Kent County is as follows: $1.012 per One Hundred Dollars of assessed valuation on property located outside the incorporated limits of the town of Betterton, Chestertown, Galena, Millington and Rock Hall;

$0.992 per One Hundred Dollars of assessed valuation on property subject to taxation for County purposes located within the incorporated limits of the Town of Betterton, Chestertown, Galena, Millington, and Rock Hall.

County Commissioners Ronald H. Fithian and W. Michael Newnam were in attendance as well as T. Edward Robinson, County Administrator, Patricia Merritt, Director of Budget and Accounting, and approximately twenty-five interested persons. Commissioner Beck attended the Kent County High School Senior Awards Ceremony, and therefore, was not present at this public hearing.

Commissioner Fithian read notice of public hearing as well as Procedure for Testimony into the record. Handouts of the proposed budget were provided for distribution to those in attendance.

Commissioner Fithian announced the following highlights of the proposed budget:

* One additional paramedic position has been added for Fiscal Year 2003. This will enable the County to have paid paramedic coverage 24 hours a day 5 days a week and 16 hours a day 2 days a week. The Commissioners remain committed to working towards their ultimate goal of providing 24 hour 7 day coverage.

* Increased funding in the amount of $550,000 for the Kent County Public School operations. (Note: Due to declining enrollment, the County was only obligated to fund the KCPS at last fiscal year's level of operating costs,$12,837,085, however, due to the Commissioners' commitment to education, additional funding in the amount of $550,000 was still approved). The Commissioners remain committed to providing quality education to the youth of Kent County and will continue to work with the Board of Education towards that goal.

* Funding has been appropriated to provide Kent County employees with a defined benefit retirement plan. Kent County will be the first County on the Eastern Shore to provide the Law Enforcement Officers Pension System (LEOPS) for the Sheriff and deputies. All other eligible county employees will enter the Maryland State Retirement and Pension System.

* Even though it is not incorporated in the proposed Fiscal Year 2003 budget, the Commissioners are actively exploring the possibility of adding additional officers to the Sheriff's Office for a community policing program. Aggressive research is being conducted to seek federal and state grants to help defray the costs of this new initiative and hope to have all the information to evaluate the feasibility of this program in the near future.

The County Administrator commended Mrs. Merritt for a job well done in the preparation of the budget.

The County Administrator then reviewed in detail the budget summary that was distributed.

This year's budget requests totaled approximately $30,300,000. However, projected revenues were estimated at only $26,400,000. To achieve a balanced budget, budget requests were cut by $2,740,000 and fund balance resources of $1,160,000 were committed.

The Kent County Public School System is the County's largest expenditure. The proposed operations and debt service funding will increase by 4.7% over the last fiscal year. Approximately 50.5% of the total County operating budget is allocated to the KCPS as follows:

Operations - $13,437,000

Debt Service for Capital School Projects - 521,000

$13,958,000

Capital Project Funding include Garnett Elementary School HVAC

Chestertown Middle School Windows and design costs for future projects 625,000 Total County Appropriation for Operations & Projects $14,583,000

Operating expenditures of $2,702,000 represent a $106,000 or 4.1% increase over the

2002 budget level. A large portion of this increase is due to additional election year costs and rising insurance premiums.

Testimony was then entertained by those individuals who signed in to speak.

Ann Dwyer, President, Board of Education, stated in order to retain and attract qualified teachers, the County must keep competitive and continued improvements are needed. She asked that the County Commissioners be accountable to Kent County's children.

Dr. Lorraine Costella, Superintendent of Schools, stated that a $1.2 Million increase was requested over the Fiscal Year 2002 appropriation. State funding was only increased by $20,000. The amount of $802,000 of additional funds over last year's budget is needed to fund staff salary increment and COLA. She noted that Talbot County awarded an increase of 5% for its teachers. An additional $45,000 is needed for textbooks. With the proposed allocation for this Fiscal Year, cuts will need to be made reducing teaching positions (no terminations) and textbooks will be held at same level as it has been for the last two years.

Karen Frison, Chestertown Middle School Teacher, advised she is certified in teaching music, however, has been requested to teach social studies and previously spanish and math (which she has no certification) due to budget cuts. She expressed concern as to teachers being requested to teach subjects in which they are not certified. She feels the children deserve to have a teacher who is certified in the subject they are teaching.

Franklin Davis, Chestertown, expressed concern as to the doubling of assessments on property values and of the hardship rising costs are on those who are retired. A large percentage of Kent County's population is retired. Since September 11, 2001, many people have lost at least one-third of their investments. He applauded the Commissioners for implementing a retirement plan for county employees and felt it was long over due. He also advised of his support of the BOE's request.

Leslie Raimond, Director, Kent County Arts Council, expressed appreciation for the County's appropriation in the amount of $5,000 for Fiscal Year 2003.

It was announced that written comments on the proposed budget will be accepted up to Friday, June 7, at 12:00 noon. The Fiscal Year 2003 budget and tax rate will be adopted on June 11.

Commissioner Fithian thanked everyone for attending.

The hearing was taped for reference and adjourned at 7:45 p.m.