Annapolis Finance Committee Meeting – May 11, 2026

The City of Annapolis Finance Committee held a special meeting on May 11, 2026, from 2:18 PM to 4:53 PM to deliberate and approve the Finance Committee Report and Recommendations for the Fiscal Year 2027 budget. The committee, consisting of Alderman Huntley, Alderwoman O'Neill, and Alderman Thorp, reviewed each section of the report, discussed positions on various budget items, and voted on final recommendations. Deputy City Manager Guild, Assistant City Attorney Leonard, and Budget Analyst Turner were present to answer questions.

Consent Calendar

• The committee took no action on the approval of the FC 5.6.26 Regular Meeting minutes.

Discussion Items

• Top Priorities: The committee agreed to highlight transportation infrastructure (sidewalks, crosswalks, street lights, speed reduction, smart signals) as the top priority. They decided to include "better service delivery" (e.g., permits, parking, snow/garbage removal) and replace an outdated graphic with an "Annapolis Works" theme.
• General Fund Revenue: Discussed the revenue increase driven by property tax and an additional $1.2 million in income tax growth. Alderman Thorp raised the need to diversify revenue sources; the committee noted a recent resolution to explore other revenue opportunities and the mayor's suggestion to use philanthropic consultants.
• Challenges: Noted tightening of state/federal grants less severe than feared, but some positions (e.g., OEM) moved from grant-funded to general fund. Agreed to hold hearings on several topics over the next year.
• Capital Improvements: Recommendations focused on shifting from internal upgrades to externally visible improvements for residents, especially general roadways, sidewalks, brick sidewalks, and striping/marking.
• DPW Enterprise Accounts: Discussed stormwater fee increases. The committee recommended exploring an amendment to use Stantec’s revised fee structure and consider flattening the 15% increase over multiple years; staff will request Stantec to run scenarios.
• Fees and Fines:
  • Short-term rentals: Agreed to increase fines for unlicensed STRs to $500 per night or twice the highest advertised nightly rate, whichever is higher.
  • Proposed splitting registration fees: $700 for non-owner-occupied, $600 for owner-occupied, and ensure fees cover full program costs.
  • Parks & Recreation: Recommended increasing non-resident fees but removed the proposal to lower resident fees.
  • Mooring balls: Supported increasing daily fees from $35 to $45.
  • Bus parking fines: Supported increasing fines for idling tour buses; left dollar amount unspecified.
• Mayor's Office / Committees: Recommended reviewing which committee meetings should remain broadcast online versus in-person, citing low viewership and staff strain.
• City Manager / Central Services: The committee debated adding a risk management specialist vs. a real estate manager. Majority (Huntley and O'Neill) supported removing the risk manager position and creating a real estate manager; Alderman Thorp abstained. Recommendation adopted: remove risk manager, create real estate manager.
• Information Technology: Alderman Huntley proposed funding AI systems exploration; O'Neill dissented against a 1% budget cut. The committee kept the AI recommendation but did not include a percentage cut.
• Finance Department: Agreed that contingency funds ($300,000) are too low, especially given snow removal overruns. Recommended increasing budget precision, which would likely require higher contingency; deferred specific amendment to later.
• Police / Fire: Supported 100% occupancy of sworn officers and strongly supported speed cameras. For the peak-time medic unit, recommended full accounting of costs (including repair/maintenance) and revenues (EMS billing).
• Public Works: Commended response to snow/ice storm; recommended fully funding snow removal technology, emphasizing visible infrastructure, quarterly updates, and street cleaning resources.
• Recreation & Parks: Recommended establishing maintenance schedules for parks, reporting on deferred facility maintenance backlog, and using budgeted funds ($45,000) to hire a pool management company for the Harbor House pool. Clarified that the city would not manage the pool directly.
• Community Grants: Reviewed 62 applications, awarded 35. Adjusted allocations: removed Bates Legacy Center (not in good standing), added back $2,500 to Heritage Baptist Community Garden and $2,500 to Annapolis Maritime Museum. Other changes were made to align with committee priorities.

Key Outcomes

• Motion: Alderman Huntley moved to approve the Finance Committee Report and Recommendations as discussed, with community grant modifications to be finalized by Alderwoman O'Neill. Seconded. Carried on voice vote.
• Next Steps: The committee will work with staff to convert specific recommendations into budget amendments. Notable amendments to be submitted include: risk manager removal, real estate manager creation, STR fine increases, Stantec fee structure amendment, mooring ball fee increase, and contingency fund adjustments.
• Adjournment: The meeting adjourned at 4:53 PM.