Rising Sun administrator outlines tight FY budget, warns MS4 stormwater costs and proposes phased water/sewer increases

Town Administrator Calvin A. Vaudenberger Jr. delivered the town’s FY budget presentation at the May 24 meeting of the Town of Rising Sun, laying out revenue projections, capital needs, and a looming stormwater mandate that he described as an ‘‘albatross’’ for the town’s finances.

Vaudenberger presented assessed-value history for Rising Sun and explained how the town uses conservative projections (budgeting at roughly 99% of forecasted tax yield). He said the budget balances on a projected $952,937 in real estate tax revenue and that the general fund surplus before discretionary transfers is $6,074.86.

Key budget pressures identified included inflation, higher law-enforcement costs (training, uniforms, ammunition), equipment and vehicle replacement needs, roof and HVAC repairs at town facilities, and an unfunded MS4 stormwater requirement tied to Chesapeake Bay nutrient reduction targets. Vaudenberger estimated the town must identify roughly $1,300,000 of new stormwater-related work to meet a 20% nitrogen-footprint reduction target by December 2025; he described prior engineering expenditures ($60,000 budgeted previously) and said the town is postponing some of that work because margins are tight.

On utilities, Vaudenberger said the water fund showed a paper surplus of $214,462 (after rolling out depreciation) and the sewer fund a surplus of $123,530; he warned the wastewater-treatment plant is approaching the life stages where significant repairs are likely and cited a typical third-pump backup cost of about $40,000. He reported operator grant receipts of roughly $34,000 annually tied to plant performance and said the town will put its operator contract out to bid to seek savings.

To strengthen proprietary-fund reserves and prepare for repairs, the administrator recommended staged water/sewer rate increases — 5% in July and 5% in February (the '5 and 5' plan) — as an alternative to a single 10% increase in February. He asked the board to indicate its preference ahead of the June 9 budget-adoption meeting.

Other budget items noted: a $36,000 renovation allocation for cramped police department space, an estimated $60,000 roof repair line item, roughly $25,000–$28,000 to replace the aging HVAC/boiler system, and a contingent reserve-transfer of up to $380,000 if worst-case costs materialize. Vaudenberger also referenced continued funding of community events (Sunfest, winterfest) and a $12,000 placeholder for dog-park contributions/capital if donations materialize.

During the meeting there were no public comments. The board scheduled budget adoption for June 9; the administrator asked commissioners to review details and provide feedback before that date.