Smithsburg council introduces FY27 budgets; public hearing set for June 2

The Smithsburg Town Council on May 14 reviewed and introduced the proposed FY27 general fund, water and sewer budgets and set a public hearing for June 2, with staff aiming for budget adoption the same night and a July 1 effective date for the budgets.

The chair presented headline numbers for the general fund: operational revenues of $1,600,304 and restricted rollover revenues of $1,095,738 for combined revenue of $2,696,042. Operational expenses were listed at $1,986,378 and restricted fund expenses at $418,250, for combined FY27 expenses of $2,404,628, which the chair said "does leave excess revenues of 291,414." The chair also noted the operational revenue‑to‑expense gap was roughly $386,000 when considering only operating accounts.

Why it matters: the budget narrative emphasized debt repayment and project close‑outs over new capital starts. Staff said many engineering expenditures this year are focused on paying down prior project obligations rather than initiating new projects, and council repeatedly flagged salaries and benefit costs as the largest expenditure category.

Council members pressed staff for line‑item clarity. One council member asked why contractual services appeared as zero on a page showing $23,782 year‑to‑date in FY26; staff explained temporary help and planning contractor charges were moved into the newly separated planning department. Council also questioned a $25,000 accounting services line; staff said accounting services are budgeted across the general fund, water and sewer accounts and that a procurement for audit/accounting services will be pursued after the planned conversion to QuickBooks Online, with a request to go to bid anticipated in early FY27 or FY28.

Police and public safety budget items drew discussion. Staff noted a correction moving a $6,000 building‑maintenance line in the police budget to the restricted speed‑camera fund and confirmed a transfer to the restricted fund. The chief and council discussed staffing: FY27 will reflect one open officer position (in addition to current officers) and the council said it would revisit staffing if coverage issues emerge. Council also discussed grant shortfalls; staff said the town had not received PAC or SAP grant awards this cycle, which reduced anticipated outside funding.

Public works and capital planning: council heard that initial Maple Avenue capital outlays were budgeted from highway user funds and that salaries for public works staff are allocated across multiple lines. Staff said work on stormwater and tree‑maintenance will continue and that highway user funds will offset larger street‑maintenance items where possible.

Parks and restricted funds: the parks commission’s larger playground grant requests were scaled back and council explored whether hotel‑motel restricted funds could cover some park landscaping or a proposed $15,000 landscape plan; staff said the town will check grant‑pairing rules and restrictions before reallocating hotel‑motel dollars.

Water and sewer specifics: staff presented a balanced sewer budget with anticipated revenues and expenses of $869,621. Council discussed a 3.5–5% sewer increase (discussion mentioned 3.5% and 5% figures) and emphasized connection charges as an important revenue driver. Staff advised that, because state or wholesale pricing and public‑notice requirements affect timing, the town would not make rate adjustments effective July 1; instead, staff proposed a September 1 effective date to avoid mid‑quarter rate complications and preserve clear billing cycles.

Infrastructure notes: public works staff described recently installed VeraCore leak detectors as effective in identifying pump‑station anomalies and urged additional deployment in strategic locations to help address an estimated portion of lost water. Staff said a systemwide engineering plan and capital improvement program are in place to methodically repair aging pipes and reduce failures over time.

Process and next steps: staff confirmed the intention to present the budgets for formal introduction at the May 19 meeting, hold a public hearing on June 2, and, if timing allows, adopt budgets the same night with the budgets effective July 1. Water and sewer rate changes would follow a separate public‑hearing process and are not expected to become effective until September 1.

A motion to adjourn early was made at the end of the session; the transcript ends before a vote tally was recorded.