Frostburg City Council approves six resolutions including midyear budget changes and fund-balance amendment

FROSTBURG — The Frostburg City Council on Jan. 27 approved six resolutions covering bank-signature authority, midyear budget amendments, a change to the water surcharge fund balance policy, a construction contract award, three Recreation Commission reappointments and the release of previously restricted development funds.

The council approved Resolution 2025-01 to add the mayor as an authorized signer on city bank accounts and name Hayden Lindsey as an alternate authorized person while Elizabeth remains on the account through the end of the month.

Council then approved Resolution 2025-02, a package of midyear budget amendments for the fiscal year ending June 30, 2025. Finance staff said the amendments reclassify some capital items, adjust project timelines (including allocations tied to American Rescue Plan Act projects), raise the salt and abrasives budget by $100,000 and otherwise reflect an updated estimate of revenues and expenses. Staff summarized the net effect as a decrease in budgeted revenues of about $3,900,000 and a decrease in budgeted expenses of about $3,800,000; council members said they will revisit the budget again at the end of the fiscal year.

In Resolution 2025-03 the council amended the city's fund-balance policy for the water surcharge fund, changing the target reserve range to $1,000,000'$2,000,000. Staff reported the water surcharge fund's unrestricted balance as $953,226 as of the June 30, 2024 audit. The council approved the change as a precaution against high-cost, urgent repairs that could otherwise require debt or other emergency measures.

Resolution 2025-04 awarded the interior finishes contract for the Bureau of Mines building to Daystar Builders, the low bidder, for $41,843. City staff said the project is funded by the building tenant and the city is performing project management only.

Resolution 2025-05 reappointed Mark Roquet, Dottie Turner and Sean White to two-year terms on the Recreation Commission.

Finally, Resolution 2025-06 authorized release of funds held in a certificate of deposit (maturing March 29) to the Pritchard Farms homeowners association for recreational amenities such as a pavilion; staff said the $25,000 in question originated from prior development agreements and Project Open Space contributions and will be used for recreation-related improvements in the subdivision.

All six resolutions were approved by voice vote after motions and seconds on each item; no roll-call tallies were recorded in the meeting minutes.

Votes at a glance: Resolution 2025-01: approved (authorize additional bank signers); Resolution 2025-02: approved (midyear budget amendments; salt line-item increase $100,000; net revenue decrease ~$3.9M; net expense decrease ~$3.8M); Resolution 2025-03: approved (water surcharge fund balance target $1M'$2M; fund balance reported $953,226 as of 6/30/24 audit); Resolution 2025-04: approved (award Daystar Builders $41,843); Resolution 2025-05: approved (reappoint three Recreation Commission members); Resolution 2025-06: approved (release of CD funds to Pritchard Farms HOA).

Council discussion on the budget amendments included questions about the salt inventory and seasonal usage. Staff said the city had ordered 1,500 tons of salt (the amount budgeted at the start of the season) and that the additional $100,000 would roughly bring total capacity toward about 2,000 tons, giving the city more inventory into late winter and early spring.

No members of the public spoke in opposition to any of the resolutions during the meeting.

The council meeting packet and the adopted resolutions will be posted to the city website, and staff said the council expects to review year-end budget results and any further adjustments in late June or at fiscal-year close.