The Local Source for News and Information Since 1980
FEDERALSBURG – After meeting six times throughout May, the Federalsburg Town Council have nearly completed their deliberations to finalize a balanced budget for fiscal year 2026 and hire new staff.
Mayor Kim Abner and Council Members Debra Sewell, Brandy James, Darlene Hammond and Ian Ferguson met four times for public budget sessions, and held two closed sessions. Abner was absent from the May 15 meeting.
At the center of sorting out the town’s finances, creating an increasingly streamlined budget, wearing several administrative hats and training new staff has been Mercedes Moyer.
Moyer has served as the interim town manager and acting town treasurer since February. She is also the grants writer, planning and zoning administrator, and code enforcement and permitting administrator.
At each of the budget meetings, council members praised Moyer for her diligence in creating a balanced budget and trying to untangle “a magnitude of chaos,” James said May 15.
Hammering out a budget has forced the council to unpack every line item of a complex bookkeeping system that has confounded Moyer and the council.
In fact, before budget deliberations began, the council announced on its Facebook page April 29 that it “had received a complaint with allegations of misappropriation of Town funds, including personal use of Town accounts and wasteful and unnecessary spending, unlawful hiring, retaliation, sexual misconduct, and inappropriate workplace behavior.” The allegations are under investigation.
Built into the proposed FY26 budget is at least $40,000 to cover the cost of a forensic audit that will do a deep dive into the town’s finances for the past five years.
By May 15, the proposed FY26 operating budget was just over $3.1 million. During the four budget meetings, council members have advocated compensating town employees fairly while consolidating line items, eliminating wasteful spending and tightening up purchasing and inventory procedures.
The discussions about trimming fat have taken the council into details such as gift flower bouquet purchases and paying for seamstress services for police officers’ patches.
But other discussions have resulted in motions to improve services, change vendors or look into better practices. On May 15, for instance, the council unanimously approved switching from ZOOM for meeting coverage to Maine-based Town Hall Streams, which will stream meetings and generate minutes, thus freeing up staff time.
The town’s water and sewer system, which is an enterprise fund, requires more cash and creativity, however. While the council commended Water and Sewer Supervisor Abid Khan and his team for their responsiveness in solving crises and maintaining an aging system, the council is facing a fund deficit of more than $300,000.
“I can’t budget to zero,” Moyer said May 19. “Even if we raise rates, I can’t make it happen.”
Ferguson did some quick math. “You’d have to annex 300 homes just to break even,” he said.
Calling it “shameful” that “we do not have the capacity to appropriately manage our wastewater treatment plant,” James affirmed Khan for doing his “very best to operate it.”
The council agreed to look into a public-private partnership for managing the town’s water and sewer system.
While Khan is a veteran town staff member, since the beginning of the year, the town has experienced major staffing changes. Former Federalsburg Police Chief Michael McDermott of the Federalsburg Police Department resigned Jan. 5. His position was filled by FPD Lt. Joseph Gasser as chief Jan. 6. Former Town Manager Kristy Marshall resigned in February, but was asked to stay on for a month to help with the transition to a new town manager. Former Town Treasurer Debbie Lawler’s employment was terminated.
In February, Sheri Hendrix was hired as town office administrator. In March, Jamie Washington was appointed town treasurer. Amy Cyrus began her position as town clerk May 19.
During the council’s May 5 meeting, an ethics committee was seated with three members, as well as a reserve member should a vacancy arise. The council appointed Roberta Butler, Amber Korell, Carla Thorne with Adam Dukes as the reserve member.
