Newly elected Town Council member Jerry S. Pelkey was sworn in last week, one day after the election, after the resignation of longtime council member Mary Lou Hill.

Hill, whose term would not have expired until July 1, said she resigned so Pelkey could help formulate the 1986-87 budget. "New council members inherit somebody else's budget and that can cause some real problems," Pelkey said. "Mary Lou wanted to avoid that."

The council is holding work sessions on the $12.9 million budget proposed last month by Town Manager Jeff Minor. The proposal calls for $1.1 million in capital improvements, including expansion of town offices and construction of a parking facility.

Last week the council accepted a report that said the town will need nearly 24,000 square feet of space by 1996 to accommodate 100 employes. Current facilities, which contain 4,700 square feet and house 52 employes, are inadequate, the report said.

In addition, the report said there are 1,424 parking spaces available in downtown Leesburg, about 560 fewer than needed.

The town may conduct a nationwide design competition for the proposed structures to ensure that Leesburg's historic image is preserved, said the assistant town manager, Steve Owen. Although the competition could cost as much as $50,000, the resulting design would be "of the highest quality," the report said, and would cost no more than the preliminary phase of a conventional architectural contract.