County Council - Regular Meeting

Hello everybody. Oh, you need to set

to order. Uh, welcome. This is a special legislative day of the county council and I will ask uh if we could all rise. Uh, Mrs. Hay, if you could lead us in the opening. Let us pray. Father, in the name of Jesus, we come before you on this day, thanking you for another beautiful day. God, we ask for your protection and your guidance over each and every individual that's here. Bless us, Lord, and continue to lead, guide, and direct this council in each and every decision that we make. We ask this in your precious name. Amen. Amen.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. All right, welcome again. Uh, Mr. Callahan, uh, doesn't look like he's here, but he is in fact joining us by phone. Uh, first item is, uh, council, we have an agenda in front of us. Are there any additions uh, or corrections to the agenda? Yeah,

Mr. Vice President, if I uh, may make one uh, request for a change, please. Uh item number six, uh update request by Midshore Behavioral Health. Uh they are unable to make it today, so I'd like to remove them from the agenda, please. Uh we've got a motion to remove one item. Mrs. Brand, would you call the role, please? Mr. Lester, I. Mr. Steppp, I. Miss Mily, I. Miss Hay, I. Mr. Callahan, I. All right, we the agenda is approved as modified. Uh council, we have dispersements of May 5th uh in front of us. Are there any questions on the dispersements?

Hearing none, the chair moves that the dispersements be approved uh by unanimous consent. Uh next up, we have a proclamation for motorcycle safety and awareness month. And Mrs. Moran, if you would uh read that into the record for us, please. Motorcycle Safety and Awareness Month May 2026. Whereas motorcycles provide an efficient and economical mode of transportation leading to decrease fuel consumption, less road deterioration, and help alleviate traffic and parking congestion in our community. And whereas Talbet County supports and endorses initiatives that promote motorcycle safety, rider education, and public awareness. And whereas it is important that all residents of our county and state become mindful of motorcycles on our roads and appreciate the significance of safe motorc. And whereas the local representatives and members of the Midshore chapter of Abate of Maryland, Inc. play a vital role in serving the community by advancing motorcycle safety education and public awareness initiatives so that through collective action all roadway users can contribute to a more secure environment on the roads of Talbot County and across Maryland. Now therefore, we the county council of Talbet County do hereby proclaim May 2026 as motorcycle safety and awareness month in Talbet County and call upon all motorists and citizens to join together in a communitywide effort to improve safety and awareness on our roadways. Given under our hands great seal of Talbet County this fifth day of May in the year of our lord 2026.

Council, is there a motion to approve the proclamation? So move and a second. Uh Mr. Ran, would you call the role? Mr. Leer, I. Mr. Steppp, I. Miss Milky, I. Miss Haye, I. Mr. Callahan, I. Okay. And we have uh members of the Midor chapter of uh Abate here. Mr. Eaton and your colleagues, if you'd come forward. Welcome back.

Thank you. Um I asked if you all could indulge me for a minute or so um just to help spread this message a little bit because it's near and dear to us for sure. So good afternoon council members. My name is Ken Eaton. I'm the executive director of A Beta Maryland Incorporated and the local director of the Midshore chapter. I have some representatives here from the chapter as well and we're here today to recognize May as motorcycle safety and awareness month. This is a national movement and we're proud to have Toba County make this proclamation. All four counties in our midshore chapter have stepped up and helped raise awareness. In addition, our governor has also made a statewide proclamation. For over 50 years, ABA Maryland has been the only organization in the state solely focused on representing the rights and interests of Maryland's motorcycleycling community. Our members are dedicated to promoting safety, education, training, and public awareness throughout the state. We believe that sharing the road safely is a responsibility shared by everyone. Our local chapters are the foundation of our organization. We are especially proud of our Midshore chapter which has been active in supporting this event for the past few years. Their efforts including the distribution of motorcycle safety yard signs seen throughout the communities make a meaningful impact. As the weather improves and more motorcycles take to the roads, it's critical that we all increase our awareness of motorcycle safety. With that in mind, we offer a few reminders. For motorists, stay alert. Motorcycles are smaller and can be harder to see, especially at intersections. Stay focused, avoid distractions, and keep your attention on driving. Use your signals clearly. Communicate your intentions. Give space. Maintain a safe spot following distance and allow

room for maneuvering. For motorcyclists, get trained. Hands-on training and strong riding skills are essential. Stay aware, be v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v v vigilant and always watch for potential hazards, manage risk, recognize your vulnerability and ride defensively, anticipating others actions and follow all traffic laws and show mutual respect to motorists. To everyone on the road, please share the road and remember to look twice, save a life. We appreciate the ongoing support of Toba County. By acting responsibly and respecting one another, we can ensure a safe and enjoyable riding season for all. Thank you, Mr. Reen.

I would like to point out we have a a lady rider in the crowd today. Miss Barbie man just recently started riding and she's getting her skill set. Very good. Uh you you follow in the footsteps of my own sister. Hopefully I do her proud. Any any uh any questions or comments from council?

No. That it's just good to have you come in every year, Ken, just to make everybody aware about motorcycle safety. And I've been saying it for the last past three years that I'm going to take lessons, and I have not. But maybe she'll encourage me to go ahead and take those lessons so that I can get on a bike. My husband has been a rider for a number of years, and he's about ready to buy a Harley now. So, he gave up the sports bike, and now it's time for a Harley. Thank you so much for coming in and sharing this every year. Appreciate it. I encourage you to sign up early for classes. They fill up fast.

Okay. All right. I will I will do that. I just saw a friend of mine just finished her class. She took her test and passed it. So, I am going to do that. That just reignited me a little bit when I saw her uh posting on social the other day. So, with you coming in, that just reminds me I will do that. Sign up early. Maybe you can help me talk to the NBA about getting that price down on the class for the class. I know it is expensive. Last time I looked, it is quite expensive. 50 to400 and some dollars. Yeah. Yeah. Yeah. Yeah. Mhm. Let's talk to the governor about that fee.

I'll uh I if I could, Mr. Vice President, I'd like to add. So, number one, thank you guys as always. Every year you're here religiously. Thank you for bringing the awareness. Um, also like to call out too that uh, you know, as a as a motorcycle uh, license holder myself, I got my email here too. So, there's uh, free advanced motorcycle training going through uh, coming out from MDOT as well. So, anyone who's out there who does have their class M certification uh, I believe they even offer a ride alongside law enforcement if I'm not not mistaken. So, just for uh, advanced riding techniques and whatnot. So, I wanted to make sure everyone knew about that one too. So, it it's called the motors program. Motorcycle officers that are teaching people to enhance their skill set. Yeah.

So once you know how to ride and you have your license, we're giving you the opportunity and these are free and there's one right here in East at BFW. Um giving them an opportunity to just get more skills, more tools in the toolbox. Love it. more more more education, more uh more experience and better. So thank you guys. It's always a pleasure to give you this proclamation every year. Um, and it's also good that, you know, we've got these born to be wild guys, but we've got a woman now. That's great. Cool. Cool.

All right. Well, thank you very much. And if you'd like to come forward for photographs, we'll we've got a proclamation to present to you. Here you go, guys. Are you ready? One, two, three.

That's all right. You should see the way to go. One got mailed to me. Was it right again?

And now we have a proclamation for correctional officers and employees week. Mrs. Moran, would you please read the proclamation? Reclamation Correctional Officer Officers and Employees Week May 3rd through 9th 2026. Whereas correctional officers and employees staff the Tobac County Detention Center for the purpose of maintaining custody security control of every inmate every hour of every day of every week of every month of every year. And whereas the correctional officers and employees of the Talbet County Department of Corrections are essential to the county's criminal justice system and public safety by not only maintaining custody, security, and control of individuals committed to the detention center, but also by creating opportunities for inmates to resolve those personal issues that led to their incarceration. And whereas the correctional officers and employees of the Ta County Department of Corrections are responsible for the administration and operation of a variety of programs and services beyond the walls of the detention center, including but not limited to work release, electronic home monitoring, and community service. And whereas the important work of correctional officers and employees rarely receives the recognition from the public it deserves, yet the professionalism, dedication, and courage routinely exhibited by these employees in the performance of assigned duties is worthy of and deserves our utmost respect. And whereas Talbet County is most fortunate to employ this highly professional, deeply committed and extremely capable cadre of correctional officers and employees. Now therefore, we the county council of Talbet County do hereby proclaim the week of May 3rd through the 9th, 2026 as correctional officers and employees week in Talbet County and encourage all citizens of the county to recognize, acknowledge, and appreciate the many contributions made

by these individuals to the safety of our community and to the quality of life enjoyed by all residents of and visitors to Talbet County. given under our hands in the great seal of Talbet County this fifth day of May in the year of our Lord 2026. Thank you councel. I need a motion to approve the proclamation. So move. Second. Uh Mrs. Man, would you please call the role? Mr. Leer I. Mr. Stef I. Miss Mily I. Miss Hay I. Mr. Callahan I proclamation is approved and we have with us our director of correctional services uh Mr. Joe Hughes. Welcome.

Welcome. Uh thank you uh council um for recognizing the correction officers for the correction officer week. Um this is something that they do. Uh it's not an easy job. It's something they don't get recognized for a lot of times and nobody in the facility that is behind bars, they don't they don't want to be there. It's not, you know, so we don't get the best uh attitudes there. So it's it's a credit to the officers that they keep a good attitude and performing their duties as they do as professionals. Um tomorrow we will be recognizing our officer of the year and so we'll be hopefully bringing her back or that person back at the next council meeting.

Terrific. Uh thank you uh council. Any questions or comments for Mr. Hughes? No, just thank you. Um, you know, thank you to the correctional team for all that they do to ensure the safety of the workers. Um, well, to ensure the safety of those that come in that are detained. Um, I know it's not an easy task and, um, I'm sure that it is a is it a challenge. Um, but we do want to recognize and thank you for the hard work and dedication um, to your job. But she said,

and I'll add and so Joe and Joe, you and your team as always fill the courtroom. So, thank you all for for being here. you and I think you and Dana who's sitting back there now from the library. You always you all you guys go back and forth of who can who can pack the uh courtroom for proclamations the best. So, thank you guys all for doing that. Thank you for what you do every day. Appreciate you guys. Thank you. And we will be trying to recognize the families of the officers during the summer because they really have to put up with a lot too and because officers, you know, they might be called for last minute overtime and things like that. So they we try to recognize the families of the officers, too.

Well, we we we recognize we recognize you for this uh this one week of the year, but we know you're there every week of the year and uh around the clock keeping this community safe in the way that that only you can do. So, thank you for thank you for your good work. Thank you. Thank you. And if you'd like to come forward, we have uh proclamation to present. Um Mr. Council President, I think we have Chuck still on the line. Chuck Chuck's still on the line, I think. Chuck, a comment from Chuck. Yeah, maybe. So, Chuck, do you have a anything you'd like to add?

Yeah. Yeah. Joe and and and the whole crew. I I'm sorry I couldn't be there, but once again, um you guys are go beyond um uh work and and family. And we really appreciate you hanging in there. And there's some good days and bad days there. and um you know all that you do for us to keep us safe. That's the other part. You keep us safe and actually keep um you know unfortunately the people that need um you you know service from you guys trying to keep them safe. So you've got a big job to do and I really um this council really appreciate all your hard work. Thank you guys.

Thank you. I'd like to just recognize the officers that have attended today. This is Sergeant Cphus, Sergeant Aaron, Captain Ton, Capal Boy. It's a tall order. Slaughter, Sergeant Ireland, Corporal Kus, Captain Johnson, and our office manager, Ray Cindy,

who is very important. Mr. Council Vice President, I'd like to just just real quickly, I mean, we have we have over 400 full-time employees in this county, and we love them all, and we love the 14 different departments, but I will say the energy that's projected by this group of people every year, uh, and when we talk about attitude, they exert positivity and it's appreciated. So, thank you.

Thank Thank you, Mr. Can you scoot a little bit that way?

All right. Ready? One, two, three. There we go. Okay, we still have 10 minutes to go before we can start the advertised hearing on the constant yield uh tax rate. So, I would like to jump down to item eight on the agenda. Count council, I'm sorry, county manager report. Mr. Stamp.

Thank you, Mr. Council, Vice President, members of the council, and President Callahan. Appreciate it. Under this week's uh county manager report, I only have one item for you today, and that is requesting your consideration to send a letter to the governor in support of the application of Darius Johnson to the Chesapeake College Board of Trustees. Thank you. Uh, do we have a motion? We need moved. Second. U, we have a motion and a second. Mrs. Moran, would you call the role, please? Mr. Leser, I. Mr. Steppp, I. Miss Milky, I. Miss Hath, I. Mr. Callahan, I

I know I should should have spoke slower. Well, we we we can we can elaborate on this. So, we know that that Mr. Johnson is uh uh is already a member of the the college's foundation uh board and this this uh so he's been thoroughly vetted. He's already been supporting the college and we know that this this simply elevates his his service to the community uh through uh his work with the college and so we uh look forward to working with him in that new capacity. Yeah. And we have Cliff here if you want to say a few words. Do you have any anything to offer for us? I was very happy to hear the motion made and voted on.

My name is Liv Coversmith. I'm the president of Chesapeake College. So, uh, yes, very pleased to see Darius's, uh, name move forward. He's been a great help, uh, to us on the foundation, obviously well regarded in the community. uh very strong leader and um and most important to me he's very excited about serving as a trustee should his uh nomination make it through the uh governor's process. So more than happy to help and more than happy to respond to any questions. Well, so for the benefit of the public, since we since we have you here, um Chesby College, as we know, is a collaboration of five different counties and I guess it's five different councils or commissions that uh appoint then members of of the board for the college and this this would be one of the representatives for Talbert County.

That is correct. There's 10 total board of trustee members and trying to recall who Darius is. Oh, he's replacing Blenda Armistad, Dr. Armistad who is coming off her third and final term. Uh so she's terming out at the end of uh June and so Darius as soon as he's appointed by the governor if that's what happens would take her place. But we do have two uh board members for each county uh and we are supported by five counties and and the term the term will start at the beginning of the new academic year.

It should begin on July 1st. Uh assuming things move uh timely. uh the governor's appointment process sometimes can take a while. So, she may not or he may not be appointed, you know, ready to go on July 1. It may be sometime after that. And these are exciting times for the college. You're wrapping up another semester. And I think uh is it just next week we have commencement?

Uh you're kind of stealing my thunder for my next uh appearance here in a few minutes, but yes, uh we have commencement coming on up on May 20th. And um I'd like to point out that uh our own honorable Miss Kesha Hayy is going to be our commencement speaker. Uh obviously a great leader of the community and an alum of Chesapeake. So we're really happy to have her speak to our students. And you are all invited by the way. Yes indeed. Yes indeed. Uh the event begins with the board reception at 12 uh which you are all invited to attend and then the commencement ceremonies at 2 o'clock. And at the last count we have 130 students walking.

Congratulations. That's great news. Any other any other questions for Mr. Coppermith? No. Working on my speech as we sit here right now, okay, thank you very much. Oh, yeah. Speaking to the mic, right? Yeah. Working on my speech as we sit here right now. Yeah. Fantastic. Absolutely. It'll be ready. Very good. Well, congratulations to all and and uh thank you and look forward to working with Mr. Johnson in this two in this new capacity. Okay.

Thank you all the council. Thank you. Council, we have uh still a few more minutes uh to uh uh to fill before the the public hearing. Um we do have uh this is not pertinent yet to the the budget. We will have time for that, but we can jump jump ahead to to general public comment which we would have uh ordinarily at the end of the meeting. I have a couple of people signed up for public comment and the first is uh Mr. Phil Rian. Thank you, sir. Phil Rian, 29736 Sullivan Drive in East. Um I I would like to have make a one comment prior to talking about the budget. Um, Miss Hy, Mr. Steppp, I I appreciate how many times you you offer very relevant prayers to this group before you begin your meetings here, and I'm not sure that that necessarily gets recognized on a regular basis. Um, secondly, you um I appreciate the fact that you've you've decided to today to or this week to recognize correctional officers. Uh, as I was scrambling to find a job in my first job out of the military many years ago, I ended up in a Maryland penitentiary as a providing psychological services, which mean meant that it's a very busy time because most people there required them. But correctional officers were were remarkable and and I I know these people do. Regarding the budget, I um want to congratulate you folks as a group uh for bringing in a budget or

recommending a budget at $159 million, which is u um I believe about a million less than last year and is actually $3 million less than fiscal year 24 as I recall as presented. I'm not saying did you spend everything or whatever uh because I don't know that. Um it's obvious uh by looking at uh uh by looking at the documents I've seen again that people who pay property tax and local income tax here in this county uh uh generate about 70% of the revenue that you have at your disposal for the year. And uh and like I mean and those of us like four at least four of you I think as well as myself uh also pay town taxes. So you know we we do drive most of the revenue that uh that is available to both both agencies. Um, I'm not here to do anything other than to to acknowledge a few things that you have done or will and are continuing to do. The larger picture obviously shows Talbot County with the lowest property tax rate in the state of Maryland, which is significant and certainly recognized by a lot of people who consider moving here and has the second lowest income local income tax rate in the state of Maryland. Uh second only to Wester County. And I can only speculate that Ocean City drives most of that money in Worcester County to the extent that they can keep that rate as low as it is. And I also know that years past Talbot was the leading group, the leading county government with local income tax until

maybe four or five years ago. again uh just to congratulate you uh and and I would be remiss if I didn't also acknowledge your very very capable finance department and putting this document together and in consulting with you on an ongoing basis as this budget gets developed. I do have some additional thoughts which I will share with you later and I understand I have until the 8th of May to submit something for the record and uh and I intend to do that because I have some thoughts about about various things that uh I think deserve your attention. Again, congratulations. Thank you very much for the opportunity to be here. And uh um I guess that's it.

Thank you, Mr. Regan. Thank you.

M Mr. Callahan, thank you for joining us. Uh do do you have anything further before we uh before we move on to the public hearing? No, I'm I'm I'm good. Thank you guys. Thank you for Thank you for joining us, Mr. Callahan. Yep. Yep. No, no problem. Okay. Appreciate it. Thank you.

Okay. It is now 2:00. Uh I can now uh call the public hearing uh to order for um for this afternoon. There are two public hearings today. If you wish to speak at any of these hearings, please state your name and address for the record. You will be given three minutes to speak if you are representing yourself or 5 minutes to speak if speaking on behalf of a group or association. Uh the first is the constant yield. Uh the county council in fiscal year 2027 proposed budget is proposing to adopt a real property tax rate of 81.80 80 cents per $100 of assessed valuation for all properties located outside the incorporated towns. This includes an education supplement of 1.47 cents for the increase in funding for Talet County Public Schools and is 1.48 cents higher than the current real property tax rate. This rate is 5.1% higher than the constant yield rate of 77.81 81 and will generate $2,349,718 more in property tax revenues in fiscal year 27 from the unincorporated area of the county. Properties located within the incorporated towns will again be granted a tax rate differential which remains unchanged from the prior year and sets their real property tax rates between 6.01 and 13.3 cents lower than the county rate. The count county council will not adopt the fiscal year 2027 tax rate today. The fiscal year 2027 tax rate will be adopted as part of the fiscical year 2026 to 2027 annual budget and appropriation ordinance currently scheduled for adoption on Tuesday, May 26th, 2026. I will now um actually before we open

the uh we will I will Mr. Stamp, would you like to introduce our our finance?

Absolutely. Mr. Council, Vice President, members of council, thank you very much. Um, it gives us an honor to be able to present um on the FY27 budget today, a lot of hard work um by uh our finance team who I'd like to recognize as um Caitlyn and and and Martha have worked very hard on along with the county manager, staff, and council. You um we several months we worked very hard to get to where we are today. I just want to take a minute before I hand it over to Martha who will provide you with a fairly detailed overview of the proposed budget that you're considering to adopt. I think we went into this year, it's fair to say that um we tried to earnestly meet with all of our departments and agencies and organizations that are funded by the county uh to try to have a balanced approach. We tried to uh understand needs and try to meet those needs to the best as we could. Understanding that any wants would be best to be postponed at this point in time. And the reason for that is that we looked at certain risks that many people uh would understand right now. Um currently we're seeing daily a uh a shift in federal policy that uh translates into real life impacts on the local level. across our country, but certainly here in Talet County, the state has a looming budget deficit and the way they normally manage that uh one of the ways is to shift uh responsibilities onto local jurisdictions, counties um by uh shifting the fiscal responsibility and at sometime uh and sometimes actually taking some of the local authority away as well. Uh the other issue is economic general economic pressures. I mean, we're seeing signs of uh some inflationary activities with gas prices,

food prices. Uh we have u you know um a number of economic pressures that we're witnessing. And then finally, workforce challenges. We still have a challenging um task in front of us to uh retain our talent and to recruit it and we've worked really hard over the last number of years to to do that. So that takes me to strategies. Our strategies this year was to hold the FY27 budget at or below the FY26 level. Um I think we were able to deliver that to you again by trying to meet the needs but postponing the wants. We've limited new positions uh with the exception of several uh that had funding uh attached to them. Um and Martha will go into some more detail on on this uh focus on completing existing capital projects council. I've been working with you now for the last three years. You're in your fourth year and we've worked really hard and we've developed a a a overarching plan uh which we call the three Psioneally personnel processes and uh and projects. And part of the project's piece of that was to invest a significant amount of money into infrastructure and other types of programs. And so this year it's about finishing up what we started. And so we didn't invest as much as in the capital program as much this year uh because we again we're finishing up these projects uh this year. Um, and then finally, um, again, I'll just reiterate the fact that this budget focused heavily on, um, prioritizing public safety and education as the council normally does, and we have leaned on our historic um, method of budgeting conservatively here. So, with that, I'm going to hand it over to Martha Sparks. She's our finance director. She's a rock star, and she's

done a great team, a great a great job here. And so, I'll hand it to you. Good afternoon, council. So, I first like to go over uh the status of our fiscal 2026 budget. The general fund budget for fiscal year 2026 is performing well. Revenues are projected to come in slightly above estimates and expenditures are on track to meet budgeted levels. The FY2026 budget has supported and allowed for meaningful improvements in government services, community support, communications, and overall government effectiveness. Some of the FY26 accomplishments were uh earlier this year, Toba County began construction of a new north EMS station in Cordova. This facility will improve emergency response times and enhance public safety for residents in the northern part of the county. In addition, the county has entered into an equipment purchase agreement for new heart monitors, stair chairs, and power stretchers for all paramedic units, replacing aging equipment and enhancing EMS capabilities. Council also increase support to our volunteer fire departments. Toba County also continues to prioritize the safety and maintenance of its 370 m of county roads. Routine maintenance and paving occur annually, but the county also invests in strategic roadway strengthening and widening projects. In November 2025, Toba County in partnership with the town of Easton and Midshore Regional Council completed a multi-phase project to widen and strengthen Goldsboro Neckrobe. This enhances safety, improves access, and supports future economic growth associated with mistletoe hall commerce business park and Talbit Commerce Park. More recently, construction began on the Chapel Road culvert replacement, which is necessary to maintain safe roadway

conditions and proper water flow. Oh, I'm not going to say this creek, right? Wootenox. Wootenox Creek. Okay, that's a tough one. I always say it the wrong. Um, the St. Michael's library reopened in March 2026, showcasing new features designed to better serve the needs of the community. Improvements at county-owned pools in Easton and St. Michaels are ongoing as the county continues to invest in and maintain its recreational facilities. And most recently, the council established the office of community partnerships to serve as a coordinating office that strengthens collaboration among agencies, nonprofit partners, and community stakeholders and improve access to resources for the fiscal year 2027 budget strategy. The um general fund budget of 159.1 million was developed using the county's long-standing conservative budgeting approach which has consistently supported a strong financial position. The budget reflects input gathered through meetings with departments, outside agencies, finance and the county manager with and work sessions with council. Each request was carefully reviewed and the budget before you represents the priorities and decisions made during those sessions. Our budgeting methodology focuses on modestly projecting revenues, evaluating the need and the impact of expenditures, and using reserves strategically. This discipline practice ensures that any new ongoing expenses such as full-time positions are added only when a funding source is found and is clearly justified. As a result, Tobe County has been able to maintain low property and income tax rates and keep other fees down. This approach has also supported healthy reserve growth, positioning the county to withstand fiscal uncertainty at the state and federal levels. Council's

reserve policies adopted last year provided clear guidance for funding decisions and risk mitigation strategies that help shape this budget. Some highlights of the fiscal year 2027 budget. Um, Toba County property tax revenues are calculated in accordance with the Toba County charter and the Maryland education article. The calculation includes a 2% increase above ESAT certified revenues, an additional 1 cent approved by voters in 2020 and 2024, and a 1.47 47 cent education supplement as approved by state law. There is no change to the county's income tax rate. Income tax revenues remain volatile and volatility is expected to increase due to the state of Maryland approving higher tax rates on high-income earners. The last time similar tax increases were enacted at the state level, Toba County's income tax revenue declined by 40% the following year due to an out migration and it took us 10 years to recover. Maintaining a low local income tax rate helps to reduce the risk of out migration of high-income earners. There are also no changes in the county schedule of fees. Toba County's reserves at the end of FY25 totaled 106 million which includes 24.9 million in the rainy day reserve which is 20% of general fund expenditures before other financing uses 7.5 million in the risk mitigation reserve 4.8 million in the permanent public improvement reserve and 44.3 million in unassigned reserve. These reserves are calculated according to the reserve policy adopted by council in February 2025 and provide 30% coverage

of general fund expenditures before other financing costs. FY25 reserves also included 21.6 million assigned to the FY26 budget and 2.7 million in non-spendable reserves. Reserves should only be used for non-recurring purchases, projects, or payments, and not for ongoing expenses that are difficult to reduce, such as personnel or education funding. Talbet County's reserves provide several benefits to the county and its residents. It demonstrates strong financial management to credit rating agencies, supporting the county's ability to secure favorable interest rates and reduce borrowing costs. It provides the ability to fund small capital projects and capital outlay without borrowing and it serves as an essential tool in the county's conservative budgeting approach. The largest portion of Toba County's recurring operating expenditures supports Toba County Public Schools. For FY27, TCPS funding and school related debt service account for 43% of the county's recurring expenditures. FY27 funding attributable to K through2 education includes the required adjusted local share at 57 million, capital projects totaling $1.8 million for the east of Middle School roof and the education center exterior repairs. Teachers pensions at $619,000 which is a former state responsibility that's been shifted to the counties. Universal prek at $37,000. Also a statemanded increase up from the $29,000 in FY26. This is not eligible for inclusion in the education supplement. In FY2025 out of the 24 school districts in the state

of Maryland, Talbe County was the 12th highest in total per pupil funding and the fourth highest in local per pupil funding. Some more FY27 budget highlights are uh include a 3% cost of living adjustment and one performance-based staff for county employees. No new government general government positions without an identified funding source and the use of fund balance reserves are um invested in 5.5 million for capital outlay purchases, 4.6 million for capital projects and 2.2 2 million for the recreation fund. Total revenues for FY27 are projected at 159.1 million. Uh revenue estimates have been increased based on historical trends. This approach slightly adjusts the county's traditional conservative budgeting methods while relying on reserve policies to help protect against uncertainties such as federal policy changes, the state's budget deficit, and broader economic pressures. Property taxes remain the county's largest revenue source, and the education supplement is included within the property tax revenues. The education supplement resets to zero each year. The revenues received from each year's education supplement are folded into total property tax revenues and become part of the county's cumulative property tax rate going forward. But revenues received from the education supplement are each year dedicated exclusively to education funding. They're used to pay for a level of funding that does not decrease. The county has two primary sources of revenues. Those are property taxes which

comprise 46.5% of general fund revenues and income tax revenues at 25.1%. Other local taxes such as recordation, transfer and others um account for 9.4% of general fund revenues. Recordation and transfer taxes are volatile and strongly tied to the performance of the real estate market in Tall County. The net increase in education funding to Toba County schools, teachers pensions, and universal prek is 1.8 million. Operating costs for the county have increased 5% mainly as a result of the fixed costs related to our workforce. Capital outlay has increased 2.4 million. Capital outlay includes one-time or non-recurring costs for vehicles, equipment, and small improvements. Included in the 5.5 million in capital outlay is Toba County's contribution of 2.3 million to the construction of the Queen Anne's Technical Center at Chesapeake College, which will support improvement of short-term workforce focused courses and programs appealing to adult learners, career changers, incumbent workers to expand learning in the construction trades. And I felt that that was very worthy to highlight that included in this budget. There are also one-time increases of 2.3 million in transfers to the recreation fund for capital outlay and CIP projects for the community center and Hogne neck golf course and to support recreation programs that are run through the community center. These general fund expenditure categories um as you see in this graph are consistent between our budget ordinance and our annual comprehensive financial statement. In those financial documents, education expenditures include Toba County Public Schools, Toba County Free Library, and Chesapeake

College, which is 43.7% of all general fund expenditures. Public safety accounts for 26.9% of general fund expenditures and illustrates this council's strong support for our public safety which includes strong support to our local volunteer fire departments. General government expenditures comprise 11.7% and public works is at 5.6%. The total county property tax rate has been calculated at 0.8180 8180 which includes an education supplement of 0.0147 tobe county property tax rates are calculated in accordance with the Tobe County charter and with the Maryland state education law 2% additional over estat certified revenues 1 cent to the calculated property tax rate approved by the voters in 2020 and 2024. The education supplement includes any increases for education funding or teachers pensions. And as mentioned previously, the education supplement is not uh cumulative in the rate itself. That rate resets each year. Any revenues from the education supplement are dedicated to the appropriation for education funding and teachers pensions. Um, here is a history of a Tall County tax bill for a home assessed at $300,000. The year-over-year property tax increase um is $44.40 with $4410 of that amount directed directly funding increases to Toba County Public Schools and teachers pensions. Since 2019, the property tax on a $300,000 home has increased by $635 with $480 of that increase um attributable to the education supplement

and $155 supporting county services, facilities, and programs. Counties in Maryland have very limited tools for generating revenue, and property tax is the most predictable and stable revenue source available. Education funding is a large recurring expense that grows every year. The county cannot reduce education spending in response to an econom to economic shifts. And it is for this reason that Toba County intentionally places increases in education funding into the education supplement. It ensures a reliable, predictable revenue stream for an expenditure the county is legally obligated and unable to reduce. It keeps education related increases separate and transparent. Income tax revenue by contrast is highly volatile and the county does not earmark it. But it does rely on the flexibility within county operations to cut or reduce spending if income tax revenues decline. Toba County does offer property owners located within a municipal boundary a tax differential based on parallel services offered by both the county and the town. For fiscal year 2026, the total or I'm excuse me um in fiscal year 2025, the total benefit to those property owners was calculated at $4.1 million by the Department of Legislative Services. This is a sample tax bill illustrating the county property tax rate and education supplement based on a home assessed at 300,000. Toby County has remained the lowest property tax rate in Maryland for many years. However, this is changing due to the increased educational costs mandated

by the state of Maryland through the blueprint for education. Tobit County is structurally different because its chartermandated revenue cap limits flexibility in a way most Maryland counties do not face. Some counties are proposing to lower property tax rates in FY27, which happens to be an election year. Now, these counties have more flexibility because they are not bound by the same charter restrictions as to county. Talbet County's charter revenue cap allows, as I've mentioned before, um no more than a 2% increase in property tax revenues or one additional penny on the tax rate each year. Each year, the county cannot exceed these limits under any circumstances. If Tobe County chose not to take the 2% increase or the additional penny in one year, the county cannot make up that lost revenue and future years, even if education or other mandated costs rise sharply. This structural limitation prevents large yearto-year swings in tax bills and enforces strong fiscal discipline on the council, the county manager, and all county departments. However, it also reduces the county's flexibility compared to other Maryland counties. Talba County has the second lowest income tax rate in Maryland at 2.4%. The county's last income tax rate change occurred in 2013. A significant share of Toba County's income tax revenue comes from a small number of top earning taxpayers, which makes this revenue source highly volatile. Income tax revenues have become even more unpredictable because of the state of Maryland approved higher tax rates on high-income earners in 2025. As mentioned previously, the last time the state increased taxes on high-income residents, Toba County's income tax revenue dropped by 40% the next year due

to outward migration. By maintaining a low income tax rate, the county aims to reduce the likelihood of losing highincome taxpayers and protect this sensitive revenue stream. In uh May 2025, uh the county went out to bond for um Chapel Elementary renovations and improvements. Um and during that um bond process, we are rated by Fitch and Moody's rating agencies. And in Fitch's um analysis of the county, they noted um that first of all, they affirmed the county's credit rating at AAA. and they noted that the AAAR and general obligation rating affirmation reflects Toba County's AAA financial resilience underpinned by ample budgetary flexibility and Fitch's expectation that the county will sustain reserves at or above 7.5% of expenditures. They also noted that we have long-term liability profile that is assessed at strongest and that our revenue volatility was assessed as weak due to the significant proportion of revenues derived from the local income tax. Moody's um analysts also affirmed the county's credit rating at double A1 noting the following credit strengths. There was a strong management team that maintains formal policies, conservative budgeting and long-term financial and debt plans that there is robust per capita property wealth and manageable leverage and fixed costs. Uh there will be another public hearing this evening at 7 p.m. at Easton Elementary School Cafeteria. Final budget deliberations will be held by council on Tuesday, May 12th, and the

budget adoption will be on Tuesday, May 26. The public is invited to submit written public comments by Thursday, May 8th um to public comment at toba countymd.gov. And for more information, you can go to the FY2027 proposed budget on our website at www.tobaccountymaryland. to countymaryland.gov.

Thank you, Miss Sparks. Miss Sparks, could you uh elaborate on one other item? Uh you you talked about how uh Talbet County's property tax rate may no longer be the lowest uh because of of the blueprint and such. Could you also talk about how uh the impact of Talbet County's I think unique homestead property tax credit? Sure. Um so the homestead tax credit and throughout the state of Maryland um each county can give up to from zero or 10% up to that cap. So to counties is zero. So that means if you bought a house 20 years ago at $300,000 you um filed the paperwork to have that um homestead tax credit that that's your primary residence in Toba County. So, for for every year, um, no matter how much your assessments go up, you will your property tax bill will be based on a $300,000 home assessment. So, while your tax rates going up, it is going up because your you may pay more in taxes on your bill, but it is because the rate is going up and it's not related to um your increase in assessments, but that's only if you have the homestead tax credit,

right? So, so a business owner or somebody who has a second home here or investment property, they're going to be paying on the most recent assessment, but those impacted, those who have primary residences, those who have the credit will be paying on that assessment from shortly after they first purchased the property.

That is correct. Um, and that is um that is also um I'm not sure the reason why Toba County set that at zero, but once you are um get the homestead credit and you claim your residence in Toba County as your primary residence, then that also means that you will pay income taxes, Toba County's income tax rate. So that also brings um it also makes that a more solid revenue stream as well. Right. Thank you. Any uh any other questions for Miss Sparks? No. No. No.

Thank you very much. Uh a reminder now that we have two public hearings. The first one is simply on the constant yield tax rate. Uh we will then get to a second hearing on the budget itself. Is there anybody here who wishes to speak uh on the constant yield tax rate? If so, you can come forward to the table and introduce yourself. Any mathematicians in the room?

Seeing none. Seeing none, I will close the hearing on the constant yield tax rate. Um though the the record remains open as uh as we've as we've stated before. We will now move on to bill 1625. Mrs. Moran, would you please read the title of bill 1625 into the record? Bill number 1625, an act to establish the 2026 2027 annual budget and appropriation ordinance. Thank you. All right. I I will now open the public hearing uh to comments from the general public on bill 1625. I'll ask you to please state your name, address for the record. You will be given three minutes to speak if you're representing yourself, five minutes if speaking on behalf of a group of of association. Uh the first one that I have signed up for doing this uh now is Dr. Cliff Coppersmith.

Mr. President, members of the council, my name is uh Cliff Coppersmith. I reside at 145 Mckenny Lane in Centerville, Maryland. I'm Karen Smith. I reside at 5141 Feather Lane, Tilman, Maryland.

So before I start my formal comments, I just want to recognize Karen Smith. This is her uh her last iteration of the Cliff and Karen show uh in Taba County. And I just want to thank her so much for her great work uh for Chesape College, most re recently as our vice president for administrative services. She's been a fantastic help to me and a wonderful team member and a fantastic leader who's gotten us through some really challenging times. Uh, you know, just beginning with the pandemic. Uh, and you know, the fun just never stops. So Karen has been a wonderful person for me. I do not come from a strong budget background and she's been really fantastic for me as a president of the college and I wish her well uh in her retirement which is much deserved and she's got all kinds of plans. So uh, M Yeah. So, Mr. President and members of the council, on behalf of the students, faculty, and staff of Ches Peak College, I want to express my sincere gratitude for your approval of our fiscal year 2027 budget proposal. Your steadfast support is vital as we continue to provide highquality, accessible education and workforce training for the residents of Taba County and our other four service counties. As I reflect on the past eight years of my administration, I am incredibly proud of what we have achieved together. Our partnership has been the cornerstone of a transformative era for the college. And through our collective work, we have significantly expanded our reach and our impact. We've successfully launched and enhanced critical programs in the skilled trades, including marine, advanced manufacturing, welding, and metal fabrication, and construction trades, along with our long-running health professions portfolio, ensuring that our curriculum evolves alongside the needs of our local economy. With your support, we have modernized our facilities, including the recent addition of a state-of-the-art skilled trades lab that kind of bridges the gap between what we had before and what we hope to build in the next several years, and a mobile welding laboratory that

brings training directly to the community. We are also grateful for the county support of the new and improved Queen Ans Tech building project, which will provide a generational resource for skilled trades instruction for the next 30 years. We are executing the design phase of the project even as we speak with construction to begin next year. Our collaboration has strengthened dual enrollment and career articulation agreements clearing pathways for Tabwick County res students and residents to trans uh trans transition seamlessly from high school to higher education and meaningful careers. And together, we've reinforced Chesapeake's role as a regional hub for innovation, sustainability, and economic growth, contributing over $118 million in income to the local economy annually. This budget approval is more than a financial commitment is a renewal of our shared vision to empower every student and enrich the vitality of the Eastern Shore. Thank you for your continued leadership and for being such dedicated partners along our journey. As we near the end of the academic year, I again invite all of you to attend our May 20th commencement, beginning with the trustees reception held in a Dorchester administration building boardroom that starts at noon with our ceremony beginning at 2:00 again with our honorable Miss Kesha Hayy providing the commencement address. We recognize her for her contributions as a county leader as well as an honored alum of Chesapeake College. Those are my comments and more than happy to take any questions or comments if you have them.

Thank you, Dr. Co. Copper Smith. Any questions for him? And congratulations, Miss Smith. Thank you. Thank you. I'll add the uh the congratulations. Welld deserved, Miss. Thank you.

Uh I will call up any other institutional representatives, uh Mrs. Sherman, uh or Miss Newman from the library. My name is Dana Newman. I live at 6295 Bossman Nevit Road in Nevit, Maryland. I think we'll have others tonight. So, I just want to keep my message very simple and straightforward. We really, really appreciate from the bottom of our heart your support of the St. Michael's Library. The expansion there is going to serve us for the next 25 and 30 years. and St. Michaels and the broader Bay Hundred community really thanks you and I think you probably saw that with the um opening we had such wonderful community support and so thank you very much for that uh support. We also want to um acknowledge your support of our staff with the um cola and merit increases. Um without those increases every year, we really can't stay competitive. we're not competitive as it is uh with our salaries uh given that we're in the public service field. Um but without those increases, we can't really sustain um you know cost of living. So thank you very much for that. Um and I also want to say thank you for your support of the Chesapeake Children's Book Festival and invite you to the festival. Um I don't have the flyer, but it'll be out here so please grab one. Um it's always the first Saturday in June. So please come. We really do want our council representatives there to see the children and the families and what an impact that festival has and your contribution though small very small $2,000 really helps to put that festival on. So thank you so much for that support and just overall of the library

in general. And I'm going to turn it over to Terry who's on our um wonderful board. So

Terry Moore at 236 Dodson Avenue, St. Michaels, Maryland. Again, just really uh just tagging on to what Dana said the we really appreciate the support that the council provided regarding the St. Michael's library. It's beautiful. It's just it's going to really uh make a big difference as it has uh in St. Michael's. And certainly we appreciate the acknowledgement that you brought to Shauna who uh certainly that's going to leave a big legacy for her for sure. And again uh just mentioning the staff increase uh we certainly again appreciate the council support on that and just want to give you a big thank you.

Also want to thank you for your support of the teachers pensions. I know it's not easy for the county to have to um swallow that pass down from the state. Um but we are a part of the teacher pension program. So thank you very much for you um and your support of that. Um the only other thing I want to say is thank you to Susan Sherman. Um you've seen her face for the last four years helping to advocate for the St. Michael's Library in particular. Um this is her last uh tenure on our board. So um she's been with us for a long time. So, thank you, Susan.

Thank you, Miss Nunham, Miss Moore. Uh, the only other institutional representative I see here is Chief Lowry. If you uh are here to speak, I'll give you the opportunity. Okay. Uh, with that, I will open it up to the public. Uh, if again, please state your name and address. Uh anybody who is welcome to come up to the podium to speak on the the budget today.

Anybody hearing hearing? None. Um written comments will be accepted by the county council until Friday, May 8th at noon. Uh, emailed comments can be sent to public comment at Talbetcountmd.gov. Uh, the public hearing on bill number 1625 is now recessed. The public hearing on bill 1625 will continue at 7:00 p.m. this evening at the East Elementary School Cafeteria located at 307 Glenwood Avenue in Easton. uh bills 1625 is eligible for a vote on Tuesday, May 26th, 2026. And with that, uh we can uh move on to council comment if there is any.

No comments this evening. Did we have one more on the public signup list for public comment? Uh that was Phil Rian and and we had and Cliff Cover Smith had signed up for it. Just want to double check. Thank you. We we got the names off of there. only comment. I need a nap before 7 o'clock. Mr. Staff, anything further? Nothing here. Looking forward to uh seeing everyone tonight at uh at 7 and East Elementary School. Miss Milky,

I just wanted to um say that the uh Cordova firemen's birthday party 100 years was fabulous. Um and had, you know, East Middle School band um lots of fire trucks and fire companies and even classic firet trucks. And it was just a joy to be there and they had delicious food and it was a good time and even a real fire call that they had to respond to. Exactly. Exactly.

Mr. Lasher, also just want to recognize uh Council Member Hay for her insight and initiative to put on a housing fair for our community. It was very well attended, represented. So, just a shout out to you and the staff that helped wrap around and put that together for uh council. Yes, I echo that. Sarah and Jess and Brennan, Bryce, Cassandra, if I start naming names, I'll probably forget. Nancy, um the whole team. It was indeed an a success. Really, it was. So, thank you for your support, council.

Okay. Thank you very much. And we are recessed until 7 o'clock. Expressive.