Centerville council raises donations budget to $7,500, backs state revenue study and adopts investment policy

The Centerville Town Council on April 2 approved several budget and policy steps, including raising the town's donations line to $7,500 for the 2027 budget, passing a resolution supporting state legislation to study municipal revenue modernization, and adopting a formal investment policy.

Councilmember (speaker 2) moved to increase the donations line from $1,000 to $7,500; the motion was seconded by a council member (speaker 13). After discussion about supporting three community groups currently seeking funds, council reached consensus to set the line at $7,500. "I think $7,500 is where I am," the council president said during the discussion, framing the amount as a compromise that would still leave room in the budget for staff capital requests.

The council also voted to adopt Resolution 04-2026, expressing support for House Bill 11-42, which would create a task force to study and recommend ways municipalities can diversify revenue beyond property tax. The chair summarized the measure as a state-level effort "to modernize its tax code to allow municipalities the opportunity to raise funds." Members said the resolution reflected a long-running concern about municipal revenue tools.

Separately, the council approved Resolution 05-2026, adopting the town's investment policy. Finance staff described the policy as a mirror of the State of Maryland's guidance and recommended continuing to use insured cash-sweep accounts (currently providing an insured locked-in rate) to preserve liquidity and federal deposit insurance for municipal funds.

What happens next: the $7,500 donations line will be incorporated into the draft FY27 budget for final adoption at subsequent sessions; staff will publish the adopted investment policy and the town will communicate the council's legislative support to the Maryland Municipal League and legislators.