This amount reflects operating costs of $28.6 million, personnel expenses of $16 million, grant allocations of $19 million, and capital outlays of $11 million. Notably, the budget shows a variance of approximately $4.5 million compared to last year’s approved budget, though the difference from the amended budget is only $413 due to various grants and adjustments.

Key changes contributing to the balanced budget include increases in liability insurance costs, inter-fund transfers, and loan proceeds in the general fund. The fire assessment rate was adjusted downward from $2.46 to $2.35, resulting in a reduction of 11 cents. The budget also incorporates a potential debt of $1 million, with an annual debt service cost of $133,000. The presentation detailed operating expenditures by department, noting that salaries for the city manager, assistant city manager, and public information officer were accounted for as distinct positions.

In Public Works, the budget for the streets department saw substantial increases. Paving road renovations rose to $885,000, and the total budget for Public Works related to streets increased from $1.5 million last year to $2.4 million this year. Traffic light repair was fully funded at $76,242, and sidewalk repairs were also budgeted. The budget for the parks and recreation department saw a dramatic increase from $169,000 to $562,200, including plans for a splash pad and the installation of approximately 30 dog stations citywide.

The discussion also highlighted the budget for community affairs, which includes a grant of $75,000 for a comprehensive study and other projects. The fire department’s budget revealed a request for capital outlay reduced from $368,000 to $205,000, primarily funded through grants. Salaries within the fire department saw increases, with grant funding covering a portion of those costs.

The city manager emphasized the importance of grants in offsetting costs, particularly in the Public Works department, which saw a reduction in salaries from $380,000 to $279,000. However, the budget for chemicals and fertilizers doubled from $125,000 to $250,000. The total Public Works department budget increased from $3 million to $3.29 million, driven by the chemicals and fertilizers increase and a rise in grants.

The commission discussed the allocation of $75,000 for the Blue Crab Festival, a contentious point as the original request had been for $150,000. The reduction raised questions, and further deliberation on this funding was deemed necessary. Additionally, the budget for a splash pad required more discussion before proceeding.

Public comments introduced concerns about cemetery maintenance, with a resident pointing out a $20,000 surplus that could be directed towards cleaning up cemeteries. The lack of funding for bike trail maintenance was also an issue, with residents expressing frustration over the absence of budgetary allocations for trail upgrades, despite the town’s reputation as a trail town. Animal control funding, particularly for spay and neuter initiatives, was another concern. Prior agreements to provide funding contingent on certain conditions had not been realized, resulting in frustration among both the commission members and residents.

The city manager’s presentation underscored the challenges encountered in aligning the budget with operational needs while ensuring financial soundness. Throughout the workshop, no debates or disagreements were noted, but there was a clear focus on aligning department requests with available resources.