City staff propose June amendments to FY25 budget; changes reduce use of fund balance

City finance staff briefed the Frostburg City Mayor and City Council on proposed June amendments to the fiscal 2025 budget, saying adjustments to revenue projections and expense reallocations would eliminate a previously planned use of corporate fund balance.

City Finance staff reported an upward revision to Maryland income tax revenue of about $85,000 and an $110,000 increase in projected interest income for the corporate fund; together with other corrections, total corporate fund revenue increased about $453,130. Staff said that after the amendments the corporate fund would no longer require the previously budgeted $173,870 draw on fund balance.

The presentation covered department-level changes: capital outlay increases to reflect the Bureau of Mines Building work and childcare center reimbursements, higher building maintenance after winter HVAC repairs, and a placeholder of $15,000 for a new alarm system at the armory. Public works and public safety budgets were adjusted for overtime and higher salt and equipment-repair costs after a heavy winter; the police line for body cameras (described as “police reform” in discussion) increased to $8,500.

City staff said the water fund no longer needs use of fund balance after reallocations and higher interest income, and the water fundʼs expenses were reduced by about $54,250. The sewer fund saw limited changes other than overtime adjustments, and the surcharge and garbage funds had modest changes tied to interest income and specific capital purchases.

Hayden (public works/acting administrator) asked the council for permission to hire an intern for mapping work: the plan described an 11-week, 20-hour-per-week position paid approximately $3,800 in total (with $800 for the remainder of FY25 and $3,000 budgeted for FY26). Hayden said funds would come from a remaining public works line and from discontinuing a current I Work contract in favor of ArcGIS subscription savings. Council members discussed whether to employ the intern as a contractor or employee; staff indicated a contractor arrangement was feasible.

Staff also asked the council to approve two routine administrative resolutions at a future meeting: (1) to appoint Amy Phillips as a designated retirement coordinator with the Maryland State Retirement Pension System in place of a departing coordinator, and (2) to update authorized bank signatories to reflect Patrick O'Brien as city administrator. Staff indicated they will prepare those resolutions for the council to adopt; no formal vote occurred at the work session.