OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Annapolis Finance Committee Meeting - September 2, 2026

City Council — Wednesday, September 2, 2026
BodyAnnapolis, Maryland
SessionCity Council
DateWednesday, September 2, 2026
StatusFILED
Video Record
0:00 / 57:45

Transcript — Verbatim
0:01

This time we'll have a roll call, Alder Woman O'Neal.

0:04

Present.

0:04

Alderman Thorpe.

0:05

Present.

0:06

And I am here.

0:07

I will entertain a motion to approve the agenda as written.

0:11

So moved.

0:12

Second.

0:13

All those in favor, please say aye.

0:15

Aye.

0:15

Aye.

0:16

Aye.

0:16

Is there a motion to approve the minutes from the July 15th and July 24th meetings?

0:24

So moved.

0:24

Second.

0:25

All those in favor, please say aye.

0:27

Aye.

0:28

Thank you very much.

0:29

Motion carries.

0:31

We'll start off with our fund transfer 127.

0:36

Looking at centralization or possibly overcentralization in the budget we just passed.

0:42

And I'll turn it to Deputy City Manager Buckland to give us a little overview on this.

0:48

It seems relatively straightforward, but thank you.

0:52

Yeah, so when we were doing the centralization for both IT and central services, um the first pass at that was basically look drawing in funds related to broad classes of where it was budgeted, what kind of uh object code was it?

1:13

Um but as we have gone through now and are doing the much more detailed implementation, it's clear that there are a few things that were listed in there that were related to that topic but weren't part of the point of centralization.

1:31

Um so that money got pulled into central services when it shouldn't have.

1:34

It actually should have remained in the departments because it's not it's not work the Central Services itself is is doing.

1:41

So um, you know, uniforms and and other things like that.

1:47

Um that's still being done in the departments.

1:49

So this just corrects that overcentralization.

1:53

So it's not the departments aren't doing anything more or less.

1:57

It's just actually giving them to money the money to do what they would have done anyway.

2:02

Right.

2:03

Thank you.

2:04

And in this case, I see certainly with the uh latter portion of it, the water one, what we're doing is putting it back into an enterprise fund.

2:13

Can you explain to me for the ADOT portion?

2:16

Is that going into the transportation fund or is that ADOT's portion of the general fund?

2:21

Uh I believe that is in the transportation fund.

2:25

Okay, right.

2:25

Oh, that would make sense, right.

2:28

All right.

2:29

Uh that was my only question.

2:30

Anybody got any other questions on this?

2:34

Make a motion for a favorable recommendation.

2:36

Second.

2:37

Awesome.

2:38

All those in favor, please say aye.

2:40

Aye.

2:41

Motion carries.

2:42

FT 127 has a favorable recommendation.

2:46

Our big uh business item today is see collective bargaining agreement between the city and AFSME local 3162.

2:54

Uh, just to set the stage on this, we're really looking for the finance committee to get a better understanding of this, but not to wordsmith it, not to nitpick it to make sure that we understand it fully and that we are willing to uh hold up our end of the bargain, as it were, hold up our commitment on this that our leaders have negotiated.

3:22

So my goal here, like I said, is really two parts to make sure one that we fully understand it.

3:28

So any questions that we have, uh any assumptions we want to challenge that we do that now.

3:35

And then secondly, that we essentially deliberate, so but in a very up or down way on is there something we can stand behind?

3:44

And uh, I have a feeling the answer is going to be yes, but that's the process that we want to make sure.

3:49

And and in doing so, I think uh big part of it is do we follow the appropriate process for bargaining?

3:56

There's also a little bit of no, are we going to be able to pay for this in some way?

4:01

But we don't necessarily need to get into the how are we going to pay for this part of it.

4:06

We're not the we're not looking to negotiate on okay, is $10,000 coming from this expense or coming from that expense.

Discussion Breakdown — Share of Meeting
Personnel Matters████████████████████████████████32%
Budget Equity Analysis█████████████████████████25%
Public Works█████████████13%
Workforce Development██████████10%
Public Information███████7%
Procedural█████5%
Public Safety█████5%
Maritime Management███3%
Summary of Proceedings

Annapolis Finance Committee Meeting - September 2, 2026

The Finance Committee met on September 2, 2026, to consider a fund transfer correcting overcentralization, a collective bargaining agreement with AFSCME Local 3162, a resolution creating paramedic job classes, a quarterly capital improvement projects update, and a finance department update. All items received favorable recommendations.

Consent Calendar

  • Approval of Agenda and Minutes: The committee approved the agenda as written and the minutes from the July 15th and July 24th meetings unanimously by voice vote.

Discussion Items

  • Fund Transfer 127 (Overcentralization Correction): Deputy City Manager Buckland explained that during the centralization of IT and central services, some funds (e.g., for uniforms) were incorrectly pulled into central services. This transfer returns those funds to the appropriate departments and enterprise funds (transportation fund for ADOT). The committee voted unanimously for a favorable recommendation.

  • Collective Bargaining Agreement – AFSCME Local 3162: The committee reviewed the agreement negotiated by city staff, covering roughly 40 employees. Key points discussed:

    • Process and Timeline: Deputy City Manager Buckland noted that negotiations started in fall, and finalizing was delayed due to budget timing. Efforts to accelerate future negotiations are underway.
    • Standby Pay: The agreement introduces standby compensation for employees required to be on call (approximately 15 days per month, paid at straight time for three hours). Alderman Thorpe praised this as fair. A question about the cost calculation ($7,200/year) was raised but remained unresolved pending math verification.
    • Union Positions: Some positions were added to the union as part of good-faith cleanup. The city is comfortable with the outcome.
    • Labor Management Committee: Established to discuss issues informally before formal negotiations. This is new for the city and also appears in other agreements.
    • Cost of Living Adjustment: A 2% COLA was the key economic term.
    • Other: The city used outside counsel for all four unions, which was helpful. The other three union agreements (already ratified by membership) will be introduced on first reader September 14. The committee voted unanimously for a favorable recommendation on the resolution authorizing the agreement (Resolution 2326).

  • Resolution 2726 (Paramedic Job Classes): This creates separate paramedic job classes parallel to firefighter classes, for personnel who do paramedic work only. The committee praised the fire chief for forward-thinking. Favorable recommendation was unanimous.

  • Capital Improvement Projects Quarterly Review: Public Works Director Vogel updated the committee:

    • Robert Ege Park: Contractor behind schedule; city is increasing pressure to meet the October completion date. No guarantee of finishing on time.
    • Sixth Street Floating Dock (Eastport): Nearing completion. Committee suggested setting a ribbon-cutting date later in September rather than immediately, to avoid pressure.
    • Other projects: Tucker Street fuel dock on Spa Road almost done; City Dock project ahead of schedule; Southgate water/sewer paving expected in September (to be confirmed); South Compromise Street bulkhead contract award imminent (project started in 2013).
    • DNR Waterway Improvement Grants: The city has applied for grants for multiple projects but received none in the last two cycles despite a strong maritime industry. Alderman Munill noted this may require state delegation engagement. Committee thanked Director Vogel for the update.

  • Finance Department Update: Finance Director Karenich (introducing new Deputy Finance Director Inez Capone) reported:

    • Audit Timeline: On track for closing FY2026 books by September 18. Quarterly close process is being phased in, with monthly closes targeted but not yet scheduled.
    • Hiring: Offers made for finance office manager and payroll admin; budget manager position still interviewing.
    • Procedures: Writing procedures to ensure data cleanliness across departments. Deputy City Manager Buckland emphasized that accuracy and reliability are priorities.
    • Future Reporting: Working toward providing regular financial reports to leadership. Committee requested a rough timeline for quarterly and monthly closes, not to pressure but to have a plan. Director Karenich agreed to provide it at a future meeting. Alderman Thorpe thanked the team for their work and noted the importance of accurate financial data.

  • Audit Committee Staff Liaison: An action item was raised to discuss the staff liaison role due to a recent promotion; follow-up between Alderman Thorpe and the finance director.

Key Outcomes

  • Fund Transfer 127: Favorable recommendation (unanimous).
  • AFSCME Collective Bargaining Agreement (Resolution 2326): Favorable recommendation (unanimous). The agreement includes a 2% COLA, standby pay, and a labor management committee.
  • Paramedic Job Classes (Resolution 2726): Favorable recommendation (unanimous).
  • Capital Projects: Committee noted the Robert Ege Park delay and asked for a realistic ribbon-cutting date for Sixth Street. Southgate paving timeline to be confirmed.
  • Finance Update: Director committed to providing a rough timeline for close processes at a future meeting.
  • Next Steps: The CBA and paramedic resolution will proceed to the full council for first reader on September 14. Fund transfer also moves forward.

Meeting Transcript

This time we'll have a roll call, Alder Woman O'Neal. Present. Alderman Thorpe. Present. And I am here. I will entertain a motion to approve the agenda as written. So moved. Second. All those in favor, please say aye. Aye. Aye. Aye. Is there a motion to approve the minutes from the July 15th and July 24th meetings? So moved. Second. All those in favor, please say aye. Aye. Thank you very much. Motion carries. We'll start off with our fund transfer 127. Looking at centralization or possibly overcentralization in the budget we just passed. And I'll turn it to Deputy City Manager Buckland to give us a little overview on this. It seems relatively straightforward, but thank you. Yeah, so when we were doing the centralization for both IT and central services, um the first pass at that was basically look drawing in funds related to broad classes of where it was budgeted, what kind of uh object code was it? Um but as we have gone through now and are doing the much more detailed implementation, it's clear that there are a few things that were listed in there that were related to that topic but weren't part of the point of centralization. Um so that money got pulled into central services when it shouldn't have. It actually should have remained in the departments because it's not it's not work the Central Services itself is is doing. So um, you know, uniforms and and other things like that. Um that's still being done in the departments. So this just corrects that overcentralization. So it's not the departments aren't doing anything more or less. It's just actually giving them to money the money to do what they would have done anyway. Right. Thank you. And in this case, I see certainly with the uh latter portion of it, the water one, what we're doing is putting it back into an enterprise fund. Can you explain to me for the ADOT portion? Is that going into the transportation fund or is that ADOT's portion of the general fund? Uh I believe that is in the transportation fund. Okay, right. Oh, that would make sense, right. All right. Uh that was my only question. Anybody got any other questions on this? Make a motion for a favorable recommendation. Second. Awesome. All those in favor, please say aye. Aye. Motion carries. FT 127 has a favorable recommendation.

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