KENT COUNTY, MARYLAND
COUNTY COMMISSIONER'S

PUBLIC HEARING

PROPOSED FISCAL YEAR 2004 BUDGET

May 27, 2003

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, May 27, 2003, 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 July 1, 2003 to increase property tax revenues by 4.4% above the Constant Yield Tax Rate. The Constant Yield Tax Rate has been established by the Maryland Department of Assessments and Taxation at $0.969 per One Hundred Dollars of assessed valuation for Fiscal Year 2004. 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 real property subject to taxation for county purposes and $$2.53 per One Hundred Dollars of public utilities property subject to taxation for county purposes.

County Commissioners William W. Pickrum, Roy W. Crow and Scott D. Livie were in attendance as well as T. Edward Robinson, County Administrator, Patricia Merritt, Director of Budget and Accounting and approximately 100 interested persons.

Commissioner Pickrum welcomed those in attendance and advised of the difficult budget process due to many worthwhile budget requests received versus the County's limited financial resources. He commended the former Board of Commissioners in leaving the County in a good fiscal situation. He then read the public notice into the record as well as the procedure for testifying. Hand outs of the proposed budget were distributed and a power point presentation was given by the Commissioners.

Commissioner Crow reviewed the goals included in this budget as follows: to continue to provide quality education in an environment of declining student enrollment, public safety, to enhance the quality of life by providing responsive and effective services in the most cost efficient manner, promoting economic development that will maintain and compliment the unique agricultural and waterfront character of the County, tourism development, social services in continuing commitment to Kent's disadvantaged citizens, to facilitate a satisfying and independent lifestyle for Kent County's senior citizens, and to strive for excellence in governance.

Commissioners Livie reviewed the fiscal challenges and sources of revenue.

The budget summary was reviewed. The proposed budget included the reduction of State funding in the amount of $1 Million, total revenue estimates were $200,000 lower than last year's budget, and budget requests exceeded budget revenues by over $3 Million. It is estimated that 35% of revenue will be reduced for the County Roads Division. Approximately 48.4% of the total County's operating budget is allocated to the Kent County Public School System amounting to $13,649,000 for operations ($13,075,000) and debt service ($574,000) representing a decrease in the amount of $308,000 or 2.2%. Public school funding for operations was maintained at the same funding level per pupil ($5,358) as last year. Due to the 68 student decline in enrollment, overall funding decreased. The amount of $477,000 was also included in the Board of Education's capital budget to fund the Galena Middle School window project, the Chestertown Middle School boiler project and engineering and design costs for future projects.

In response to fiscal challenges, certain fees were increased and/or implemented in the following departments: planning and zoning, parks and recreation, public landings division, and county roads division.

In conclusion, there will be much "belt tightening" which will be felt by the County's and Board of Education's budgets. It is the responsibility of the Commissioners to be good stewards for the County. The Commissioners respect and admire the good work of the teachers educating the County's children, however, with limited resources, a conservative budget was prepared. At this time, the Commissioners are still awaiting notification as to an additional $500 Million State wide reduction and it is unknown how the additional reduction will affect Kent County. The Commissioners will continue to look for additional funding for teachers, Board of Education and other county departments/agencies. It is the Commissioners' desire to work as a team to bring more revenue to the County and citizens without raising property taxes. The Board is committed not to increase the property tax rate.

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

Doreen Shiveley, representing the Kent County Teachers Association (KCTA), Board of Education and concerned citizen, Dr. Bonnie Ward, Superintendent of Schools, Jed Howell, KCTA, Dennis Mesko, Supervisor of Human Resources, KCPS, Madhu Sidhu, Kent County Council of PTA's, Al Hanifee, Chairman, Board of Education, Betty Weller, KCTA, Dr. Lorraine Costella, former Superintendent of Schools, Debbie Dopp, Millington PTA, LaVerne Newnam, parent, Jane Bushby, parent, Michael Hardy, citizen, Matthew Hogans on behalf of his wife, Kathleen, parent, Karen Frison, KCTA and parent, all spoke in support for increase to the Board of Education budget allocation.

Constance Berg, taxpayer, felt monies could be saved by cutting waste in school space. She encouraged the Commissioners to attract retirement communities to help with the tax base and requested no increase in the property tax rate.

George Kastendike, stated that strong education is a step to success, however, economizing and belt tightening needs to be done on all sides and supported the Commissioners' efforts. It is his feeling that the Commissioners did their "homework" and provided a fair budget and thanked the Commissioners in a job well done in the budget's preparation.

Robert Ortiz, President, GES PTA, expressed concern as to the budget process. He supports the Commissioners' goal to partner with the BOE to try to develop a workable budget for the BOE for the children's sake.

In closing remarks, Commissioner Crow advised that the former Governor overspent State funds and now the Counties and municipalities will have the burden to balance their budget with less money. He agreed it will take a lot of team work with the County's departments/agencies to get through this difficult time.

Commissioner Pickrum reiterated it has been a difficult budget process and of the need to move forward. He advised the Board is open for discussion/ suggestions and of desire to work with all agencies including the local legislators and Governor. He stated the Board did what it believes was fair, just and not necessarily popular.

Written comments on the proposed budget will be received up to May 30 at 12 noon.

It is proposed that the Commissioners will adopt the Fiscal Year 2004 budget and tax rate on June 3.

This hearing was taped for reference and adjourned at 8:35 p.m.