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Treasurer reports utility rate increases, sinkhole expense and higher pavilion rental revenues ahead of FY26 budget introduction
Summary
Treasurer Jennifer Lipsi told the council that BGE rate increases were expected to raise the town's utility costs (natural gas up ~9%, electric ~7%), the town recorded a $3,000 sinkhole expense, and pavilion rental revenues rose to about $10,000 annually; the FY26 budget introduction was scheduled for the next meeting.
Treasurer Jennifer Lipsi presented the town's March financial update at the April 14 meeting and highlighted several items the council should anticipate as the FY26 budget is prepared.
Lipsi said Baltimore Gas & Electric (BGE) rate increases will likely push utilities above budget. She said natural-gas costs have risen by about 9 percent and electricity costs by about 7 percent, and the town is likely to exceed its utility line items without offsetting savings.
The treasurer reported an unbudgeted sinkhole repair expense of approximately $3,000 and said staff set that aside as a one-off item when preparing next year's budget. Lipsi said the town had historically grouped some road repairs in broader categories and re-established a discrete line for pothole and road-repair expenses after the sinkhole.
On parks revenues, Lipsi told the council pavilion rental revenue has increased from roughly $5,000 per year to about $10,000 per year. The town also began accepting credit-card payments this spring and processed its first credit-card payment on Monday; staff said that should ease payments and likely encourage additional revenue.
Lipsi said staff will introduce the FY26 budget at the council's next meeting and indicated the town would try to distribute budget documents to councilmembers earlier than the typical Thursday-Friday release before the meeting to give members more time to review.
Why it matters: Rising utility rates and unplanned infrastructure repairs can affect budget planning and could require adjustments in revenue, reserves or service levels. The increase in pavilion rental revenue and the ability to accept credit cards provide partial revenue offsets and improved customer service.
