Government Operations Committee FY26 Budget Workshop - April 17, 2025

The Government Operations Committee met on April 17, 2025, to workshop the Fiscal Year 2026 budget, reviewing presentations from the Office of the Mayor, Sustainability, and the Department of Public Works (Operations, Engineering, and Projects). The committee also reviewed and voted on Resolution 25-01, which establishes water and sewer rates for FY2026–2030. The meeting lasted from approximately 2:00 PM to 4:30 PM.

Consent Calendar

• The minutes of the April 3, 2025 committee meeting were approved without discussion.

Discussion Items

Office of the Mayor (Chief of Staff Guy Samson)

• Arts & Culture: Presented a $83,000 increase from FY2025 to FY2026, primarily for professional services (collection management database and conservator) and a grant match. The department also conducted cultural asset mapping, collected over 75 data points, and is developing a public art database.
• Communications: Budget grew from $843,000 in FY2024 to $1.47 million in FY2026 (a 74% increase over two years). Key requests included $36,500 for an AI chatbot, $30,000 for boardroom conference mics with real-time interpretation, $20,000 for interpreting services, $4,000 for QNAP storage replacement, and $2,000 for master controller replacement. Staff reported social media reach of 4.4 million people (197% increase over three years), 147 press releases (65% increase), and 42 community events. Councilmember Kazemchak questioned the value of the increased spending, suggesting the $700,000 growth over two years needed clearer justification. Chief of Staff Samson defended the investment, citing data on increased reach and engagement.
• Emergency Management: Budget decreased slightly from FY2025. Notable accomplishments included updating the Emergency Operations Plan, conducting tabletop exercises for cyber incidents and dam emergencies, and developing a severe weather annex.
• Office of Equity & Inclusion: Presented anti-harassment training (10 sessions starting May 6, 2025), cultural connection panels with 426 attendees, and a train-the-trainer program on microaggressions. The department also reported 79 new MWBE vendors (total 382) and 260 new vendors registered in Iron Wave, achieving $4.9 million in subcontractor usage with 31% MWBE participation. Councilmember Shackelford requested demographic data on the train-the-trainer volunteers.
• Office of the City Clerk: Hired a new assistant city clerk, implemented charter amendments, established legislative districts, and created a voter registration process for all residents regardless of citizenship status. Councilmember Kazemchak noted the website was difficult to find election information.
• Office of Opportunity & Transformation: Scotty's Bus Lane became a city building (youth center planned for 2028). The office posted first returnship positions and expanded workforce development. A request for $14,000 to fund a second returnship position was discussed. Councilmember Kazemchak asked about the absence of a Director of Strategic Planning and Executive Projects in the budget; Chief of Staff Samson agreed to provide an explanation.
• Mayor's Office Budget: The budget included a request for a new Deputy Chief of Staff position (supervising communications and intergovernmental affairs). Councilmember Shackelford stated she would not support the position, calling the mayor's office "exploded" and noting there were already enough staff. Councilmember Kazemchak asked for a written explanation of why the Director of Strategic Planning position was not included.

Sustainability (Manager Jenny Willoughby)

• The department launched a Climate and Energy Action Plan (due September 2025), achieved Bird City certification, and submitted for Sustainable Maryland recertification.
• The residential compost program nearly doubled to 1,700 households, with 641.1 tons collected since inception. The program costs $19 per household per month. The FY2026 budget requests $600,000 (up from $100,000) to cover the contract. Willoughby noted that at 30% uptake, the program would cost about $2.1 million annually but save only $200,000 in tipping fees, though it provides environmental benefits.
• Tree Frederick sold about 200 trees; the department switched to a new sales platform.
• Air quality and stream temperature monitoring continued; six of nine air quality monitors are deployed.
• Performance indicators: 512 bags of trash collected by 350 volunteers, 12+ miles of road adopted, and a 6% reduction in streetlight electricity usage since 2013 (from 25% to 19% of total electricity).
• Councilmember Kazemchak requested more concrete metrics for the outreach position hired a year ago.

Department of Public Works Operations and Projects (Deputy Director Tracy Coleman)

• General Fund: Accomplishments included 12,000 linear feet of sidewalk repair, maintenance of 687 vehicles and 100 pieces of equipment, repair of 450 street lights and 103 traffic signals, and replacement of 17 wayfinding signs.
• Priorities: Implementing Cartograph (asset management software), a cloud-based project management system for CIP projects, and a fleet transition plan to alternative fuel vehicles. A five-year complete streets and sidewalk plan is being developed (sidewalk conditions survey due September/October 2025).
• Additional Requests: One new position (Superintendent of Facilities Maintenance), $500,000 increase in vehicle contingency fund (from $350,000 to $500,000), and various equipment and service contracts. The total general fund budget line items were not explicitly stated.
• Water & Sewer Fund: Departments repaired 12 water main breaks, completed 15,000+ tests, and produced 6.2 million gallons per day of drinking water. Major preventative maintenance projects include filter media replacement at L.R. Dingle plant, installation of a USGS gauging station at Fishing Creek Reservoir, and rebuilding pumps at the Linganore treatment plant.
• Stormwater Fund: Conducted 400+ triennial pond inspections, maintained 270 miles of storm drain system, and removed 650 tons of debris. Priorities include a comprehensive maintenance program for city-owned BMPs and expanded public outreach.
• Councilmember Shackelford praised the presentation and requested detailed data on performance metrics.

Engineering (Manager Teco Kasano)

• Completed development plans for Westside Regional Park (saving money), lead water service inventory (7,000 letters sent, 5,000 still unknown), traffic calming projects (e.g., bike ring at 9th and Market, 55% support from 200 respondents), and maintained the Community Rating System (Class 6, 20% flood insurance discount).
• FY2026 priorities: update city standards (last updated 2017), standardize CIP design, and complete water and sewer master plans.
• Performance indicators: 803 traffic reviews in calendar year 2024, 141 dry utility permits, 530 traffic closure permits processed via OpenGov.
• Staff digitized 16 boxes of historical records and secured volume discounts for software subscriptions.

Review of Resolution 25-01 (Water and Sewer Rates)

• Director of Budget Administration Katie Barkdoll presented the resolution to replace the expiring five-year rate schedule. The proposed schedule includes a 3% annual increase for five years (FY2026–2030). For a median residential user, the increase amounts to $6.68 per quarter ($26.72 annually). Small users would see a $5.00 quarterly increase; large users $8.69.
• The increase is needed to cover operating costs, planned CIP projects, and reserve requirements. Councilmember Shackelford noted the importance of the rate study in context of the budget discussions.

Key Outcomes

• Motion to forward Resolution 25-01 to a public hearing: Moved by Councilmember Kazemchak, seconded by Councilmember Russell. The motion carried 3-0. The public hearing will be scheduled at a future date.
• No other votes were taken; the workshop was informational.