Bel Air receives FY2025 budget amendment; insurance dividend to fund employee bonuses

The Bel Air Board of Town Commissioners on June 16 received Resolution No. 12-54-25, a budget amendment for fiscal year 2025 that increases the general fund by $106,056 and allocates a policyholder dividend toward one-time employee bonuses.

Town staff described the changes at the meeting and highlighted key revenue and expenditure adjustments. “The total of the recommended adjustments for the general fund, is only an increase of a $106,056,” said Miss Moody, staff member, during the presentation. She listed increased real property tax receipts ($120,000), higher income tax receipts ($163,000), and an unexpected workers-compensation premium refund of $111,570 among revenue changes. The amendment also incorporates additional American Rescue Plan Act (ARPA) funding for the Thomas George Street project and related work.

The town received a policyholder dividend from Chesapeake Employers Insurance Company related to the 2023 policy year. The town will use part of that dividend to pay one‑time bonuses for employees. Miss Moody described the proposed bonus schedule: $1,000 for full-time employees hired before Jan. 1, 2023; $500 for part-time employees with the same hire-date threshold; lower pro-rated amounts for employees hired later. She said the total cost of the bonuses is $75,571 and that some departments will fund portions from salary savings. “Every employee of the town will get something,” Miss Moody said.

Commissioners praised the improvement to the town’s reserves. “It’s really spectacular, that $1,100,000 savings in capital reserve,” Commissioner Rutledge said during the discussion, noting the reserve will strengthen the town’s ability to fund future projects. Miss Moody confirmed that, because of the revenue and expenditure adjustments, the town will not need to draw on the planned capital reserve transfer previously budgeted.

The amendment also documents decreases in several anticipated revenue lines (admission and amusement tax, police protection grant) and expenditure adjustments across departments, including reductions in town buildings and finance due to timing and vacancies, and increases in planning and miscellaneous accounts tied to the Thomas George Street phase and a Wakefield Manor property purchase. Miss Moody said a seven‑page attachment shows the detailed line-item changes and that a public hearing on the amendment is scheduled for July 21 at Bel Air Town Hall, 39 N. Hickory Ave.

Action on the amendment at the June 16 meeting was to receive the resolution. Commissioner Rutledge moved to receive Resolution No. 12-54-25; the motion was seconded and the board voted Aye (Commissioners Rutledge, Chismar, Taylor, Chance and Chair Eddy). The resolution was received, and the public hearing was set for Monday, July 21.