Don Dooley

The Finance Committee meeting was convened primarily to discuss the LEOPS analysis requested by the town manager, which was based on anticipated town growth over 25 years. Key discussions centered on how the costs associated with adopting the LEOPS plan would be funded, confirming that expenses originate from the general fund revenue, primarily supported by real property tax, thus potentially impacting the tax rate. Participants reviewed estimated salaries, the structure of LEOPS credits offsetting accumulated unfunded amounts for later entrants, and the difference between LEOPS and the current MSRPS plan. Furthermore, the committee clarified employee health insurance details, including premium coverage, high deductible plan contributions via an HSA, and maximum out-of-pocket expenses. Pension expenditures for current MSRPS and 401A plans (for two executive employees) were also reviewed.

The meeting was called to order by the Councilman from Ward 1, serving as interim chair due to the absence of the Chairperson and Vice Chair. The agenda included the approval of the current meeting agenda and the minutes from the November 4, 2025 meeting. The commission voted to table the annual planning commission elections until the February meeting, as a quorum of voting members was not present. Key discussions centered on Zoning Text Amendment 01-2026 regarding Adequate Public Facilities (APF). Public comment was heard, with presenters from the Maryland Builders Industry Association urging additional time for stakeholder review due to the late release of the ordinance documents (December 23rd). Specific concerns raised regarding the APF related to transition/grandfathering provisions, water and sewer capacity thresholds (80%), road level of service (C), and highly restrictive school capacity allocation policies (6% cap and zero allocation if any school is over capacity). Staff then presented background information on the APF initiative, noting it was directed by the Town Council in Fall 2025 to manage infrastructure needs due to growth.

The meeting included the call to order and subsequent discussion regarding modifications to the agenda, particularly concerning the chair and vice chair recommendation due to limited attendance. The committee reviewed and approved the minutes from the December 9th meeting. A significant portion of the discussion focused on the review of the monthly treasurer's report, including clarification on excavating charges related to water, storm water, or sewer projects. The primary topic was the discussion and evaluation of budget and spending proposals related to the Law Enforcement Officers' Optional Retirement System (LEOPS) analysis. Members analyzed the projected costs of transitioning to the new LEOPS plan over a 25-year period, including incremental cost increases based on salary projections and anticipated personnel growth due to town expansion. Specific figures regarding the net increase in cost, estimated at $645,000 for year one before accounting for offsets, were debated. Further discussion touched upon the town's revenue sources, including limitations on real estate tax increases and the impact of high interest rates and the expiration of American Rescue Plan (ARP) funds on the current budget balance.

The meeting included administrative items such as approving the meeting agenda and the minutes from the January 6, 2026 session. The commission deferred the election of the planning commission chair and vice chair until all commissioners were present in March 2026. The main focus was the public hearing regarding Zoning Text Amendment (ZTA) 01-2026 concerning adequate public facilities. Key discussions involved clarifying points from the previous hearing, including incorporating language for specifying the water and sewage capacity calculation formula, establishing yearly reporting requirements for capacity updates every six months, aligning expiration dates for water/sewage and school seating capacity allocations, and encouraging creative mitigation measures. Public feedback noted the need for a grandfather clause for existing projects and requested provisions for exceptions to Level of Service C for road intersections like Charles Street. The staff reported on subsequent outreach to local attorneys, the building industry, and county officials regarding the draft ordinance. Representatives from Charles County Public Schools were present to discuss school seating capacity allocations, particularly concerning the proposed 6% allocation derived from the town's population proportion relative to the county, and the implications of capacity exceeding 110%, which traditionally halts new subdivision approvals until capacity is created through new construction or redistricting. The public hearing was continued to the March 3rd meeting to allow for further public feedback.

The Finance Committee meeting began with a motion to amend the agenda to include a regular review of open action items under old business. The committee reviewed and approved the minutes from the October 9th meeting. A detailed review of the monthly treasurer's report for activities through September 30th followed, noting higher revenues from photo enforcement and real property tax collection, alongside decreased expenditures partly due to prior-year capital projects and personnel vacancies in the Police Department and Public Works Administration. Discussions also covered variances in the Water Enterprise Fund, including high expenses for water tower maintenance and hydrant repairs, and a citizen inquiry regarding faulty data transmission nodes for water meters. The Sewer Enterprise Fund showed high revenue from bond proceeds but decreased facility fees due to slowed development. The committee discussed the status of the annual audit, which has an extension until December 31st, and investment revenues, noting that a portion of funds is actively managed in a laddered CD strategy. Finally, new business introduced a concern regarding the committee chair's consistent absence (three meetings) and the resultant lack of coordination, suggesting a need to address this based on the organization's ordinance regarding committee member attendance.