Annapolis Finance Committee Meeting: CIP Update & Child Care Tax Credit

The Annapolis Finance Committee met on February 4, 2026, at 10:38 AM, chaired by Alderman Huntley, with Alderman Thorp present and Alderwoman O'Neill absent. The meeting covered routine approvals, a detailed update on Capital Improvement Projects (CIP), a presentation from the Finance Department, and a legislative proposal for a child care property tax credit.

Consent Calendar

• Approval of Agenda: Moved by Alderman Thorp, seconded, and carried on voice vote.
• Approval of Minutes (FC 1.21.26): Moved by Alderman Thorp, seconded, and carried on voice vote.

Public Comments & Testimony

• No public comments or testimony were provided during this meeting.

Discussion Items

• O-1-26 Property Tax Credit for Child Care Centers: Sponsored by Alderman Schandelmeier and O'Neill, the ordinance creates a real property tax credit of up to $10,000 for licensed child care providers who own their property. Alderman Schandelmeier presented the bill, explaining it leverages enabling state legislation passed in 2025 (championed by Delegates Jones, Bieler, and Bagnell) to help child care facilities open, hire staff, or avoid closure. The fiscal impact note estimates a potential annual revenue loss of up to $850,000, based on 85 licensed child care facilities in the city.

  • Alderman Huntley asked how the $850,000 figure was calculated. Acting Finance Director Trudeau explained it was derived from Planning and Zoning data identifying 85 licensed facilities; he noted that not all facilities own their property, and the actual average credit would likely be lower, but detailed data is unavailable.
  • Alderman Thorp raised concerns about the uncertainty of revenue loss (ranging from $0 to $850,000), the lack of a city staffer managing child care programs, and the need for a metric to measure success (e.g., reduced wait times, increased capacity). He suggested starting with a lower credit amount, similar to Montgomery County’s initial $3,000 level, which was later raised to $10,000 when found insufficient.
  • Alderman Schandelmeier argued for the full $10,000, citing the severity of the child care crisis and the need for a substantial incentive. He noted that the program would not reduce FY26 revenue but would apply to FY27 taxes.

• ID-30-26 CIP Project Update: Director of Public Works Vogel and Bureau Chief McKeown presented projects not on track, using a performance metric of meeting targets. Key projects discussed:

  • Bay Ridge Avenue Sidewalk (Project 4004): Delayed due to late design start and property rights issues; estimated 1-2 year delay.
  • Back Creek Path: Partnership with Annapolis Maritime Museum stalled after scope creep and staff turnover; next step is to extract desired work from their design.
  • Waterworks Building & Parking: Historic building renovation; a developer partner was selected via RFP (issued by the Resilience Authority), but negotiations on a pre-development agreement have stalled for 6-7 months pending mayoral direction.
  • Green Roof Repairs: Delayed due to late start and lack of maintenance; now a partnership between DPW and Central Services.
  • West-East Express Trail: Construction not starting this fiscal year due to federal reviews and unresolved property easements (e.g., from the county garage).
  • Traffic Signal Rehab (Bay Ridge & Tyler): Not a priority; no imminent action.
  • Taylor Avenue Traffic Improvements: Design under way; traffic circle is ideal but may not be feasible due to topography.
  • Truxton Park Road Parking: On hold pending a Truxton Park Master Plan.
  • Bardwell Lane Sidewalk: Ready to start construction after 15-20 years of community hurdles; likely delayed past July.
  • Solar Park/Pollinator Garden: Delayed to fall 2026 or later due to MDE review of landfill closure.
  • Pump House Paddleboard/Kayak Launch: Stalled due to DNR parking restrictions from grant agreement; no city lead identified.
  • Carrs Beach: Design/permitting delays due to wetlands; likely construction in fall 2026 or spring 2027. Reckon Parks is the lead (Rosalind Johnson).
  • Standard Inspection Details: Internal DPW initiative; consultant underperformed; strategy shifting.
  • Pompouse Road kayak launch: On the shelf; decision needed whether to proceed or cancel.
  • Director Vogel noted that most of the 105 active projects are on track, only ~12 were flagged as off-track.
  • Alderman Thorpe requested quarterly CIP status updates and inclusion of sidewalk plan execution status. The committee agreed to add quarterly CIP updates to the agenda.
  • Acting City Manager Buckland committed to aligning CIP budgets with realistic implementation timelines to improve transparency.
  • Alderman Schandelmeier asked if the city has formally catalogued hurdles (local, state, federal) to streamline infrastructure projects. Director Vogel said no formal list exists but identified right-of-way acquisition as the biggest local gap, with only 0.2 FTE assigned.

• ID-7-26 Finance Department Update: Acting Finance Director Trudeau gave a final update before leaving the role. He reported the FY25 audit is in QA, expected mid-February. He introduced Joel Pallical (Harbor View Consulting) as incoming acting finance director and Sean Doyle as supporting leader. Pallical stated budget continuity is a priority, and a permanent finance director is being hired. In response to Alderman Huntley’s question on budget point-of-contact, Acting City Manager Buckland requested both Pallical and Doyle be included initially for knowledge transfer.

Key Outcomes

• O-1-26 — Favorable Recommendation: Alderman Thorp moved to recommend O-1-26 favorably to the full council. Seconded and CARRIED on voice vote. Alderman Huntley expressed intent to work with finance to narrow the fiscal impact range before the full vote.
• CIP Reports: The committee agreed to add quarterly CIP project status updates to the Finance Committee agenda, starting immediately.
• Memorials and Appointments: No appointments or memorials were discussed.