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HomeMy WebLinkAbout6/23/2014 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION JUNE 23, 2014 A work session of the Council of the City of Salem, Virginia, was held in the City Manager’s Conference Room, 114 North Broad Street, Salem, Virginia, on June 23, 2014, at 6:00 p.m., there being present all the members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson (arrived late), William D. Jones, and Lisa D. Garst; with Byron Randolph Foley, Mayor, and presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Rosie Jordan, Director of Finance; Angela Sellers, and Krystal Farmer, Deputy Clerk of Council; and the following business was transacted: Mayor Foley reported that this date, place, and time had been set in order for the Council to hold a work session; and WHEREAS, the City Manager introduced Bob Picchi, the Roanoke Valley Broadband consultant, who gave an update on the Broadband Authority; and WHEREAS, a discussion was held regarding the budget; and WHEREAS, there were no other topics for discussion. There being no further business to come before the Council, the work session was adjourned at 7:24 p.m. ____________________________________ Mayor _____________________________________ Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING June 23, 2014 A regular meeting of the Council of the City of Salem, Virginia, was held in Council Chambers, City Hall, 114 North Broad Street, on June 23, 2014, at 7:30 p.m., there being present all the members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, William D. Jones, and Lisa D. Garst; with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, Assistant City Manager and Clerk of Council; Melinda J. Payne, Director of Planning and Economic Development; Rosie Jordan, Director of Finance; Charles E. Van Allman, Jr., City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney; and the following business was transacted: The June 9, 2014, regular meeting and work session minutes were approved as written. Mayor Foley requested that Council consider ordinance on first reading rezoning the property of Ridgewood Improvements, LLC, and MPW Group, LLC, property owners, for rezoning three parcels located at 1923 & 1951 Electric Road and 1650 Braeburn Drive (Tax Map #’s 284-1-2.2, 284-1-2.3, & 284-1-2) from HBD Highway Business District with conditions to HBD Highway Business District with amended conditions; and WHEREAS, it was noted that the Planning Commission continued the item until its July 16, 2014, meeting; and WHEREAS, the City Manager stated that the petitioner and property owner have been working on the request; the request was not heard by the Planning Commission; therefore, the property owners have requested that the public hearing on the item be continued until the July 28, 2014, meeting of City Council; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, an ordinance rezoning the property of Ridgewood Improvements, LLC, and MPW Group, LLC, property owners, for rezoning three parcels located at 1923 & 1951 Electric Road and 1650 Braeburn Drive (Tax Map #’s 284-1-2.2, 284-1-2.3, & 284-1-2) from HBD Highway Business District with conditions to HBD Highway Business District with amended conditions was hereby continued until the July 28, 2014, meeting – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, ITEM 1 CONTINUED UNTIL JULY 28, 2014 MEETING 2 John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley reported that this date and time had been set to hold a public hearing regarding the 2014-2015 recommended tax rates; notice of such hearing was published in the June 12, 2014, issue of The Roanoke Times, a newspaper having general circulation in the City of Salem ; and WHEREAS, the City Manager noted that the public hearing is on the one tax rate increase being proposed in the budget that requires a public hearing, which is the personal property tax rate; the rate is proposed to be increased by five cents—from $3.20 to $3.25 per $100 of assessed value; the estimated annual revenue from the increase is $125,000; he further noted that even though the public hearing is regarding the proposed tax increase, Council would also hear comments regarding other pieces of the budget; and WHEREAS, Park Dickerson, 603 High Street, appeared before the Council in support of the personal property tax rate increase; he feels that Salem needs all the money it can get; he also feels that Council also needs to consider a future increase in the real estate tax rate; he stated that he owns a substantial house in Salem and if the real estate tax rate was increased by two cents, it would cost him approximately twenty-three cents a day; he feels that is something everyone could afford; and WHEREAS, Billye White, 1234 Forest Lawn Drive, appeared before the Council and concurred with Mr. Dickerson’s statements regarding real estate taxes, and also supports the increase in the personal property tax rate; and WHEREAS, Mack Obenchain, 2403 Post Oak Road, appeared before the Council and stated that he is not opposed to the increase in the personal property tax rate; he inquired about the toter fee increase; he stated that he understands why Council feels the fee needs to increase, but inquired as to why Council didn’t consider increasing the fee in smaller increments before now instead of increasing the fee by 600 percent; he feels that Council should look at smaller increases in the future; and WHEREAS, James Martin, 720 Doyle Street, appeared before the Council and inquired about the toter fee increase; he questioned if the increase would help even the costs associated with trash collection; and WHEREAS, Councilman Jones stated that the fee increase would not even out the costs associated with trash collection; he noted that the fee would need ITEM 2 PUBLIC HEARING REGARDING 2014- 2015 RECOMMENDED TAX RATES 3 to be increased to $10 a month in order for the fee to even out what citizens pay in taxes for services; he noted that it costs $15.39 a month for trash collection; and WHEREAS, Mr. Martin inquired if the toter fee will be increased again next year; and WHEREAS, Councilman Jones stated that he feels that the fee should be brought up again next year; he noted that the proposed fee and rate increases have been a collaborative effort and compromise amongst the members of Council in an effort to increase revenue by $1.2 million as Council seeks ways to address capital needs, to take care of employees, and help the City to be more fiscally responsible to its citizens; and WHEREAS, Mr. Martin commended Council for its efforts; he stated that he does not support finding revenue for the sake of finding revenue, but he supports the effort to find revenue to help keep building what makes Salem great; and WHEREAS, a discussion was held regarding fiscal responsibility, state and federal funding to the localities, etc.; and WHEREAS, Councilman Jones noted that the monies from the proposed increases are to be placed on hold until it is determined what funding will come from the state, as the funds may need to be used to help “close the gap” from funds not being allocated to the localities by the state; and WHEREAS, no other person(s) appeared related to the hearing; THEREUPON, said public hearing was closed. Mayor Foley noted that the proposed personal property tax rate increase still keeps Salem in the lower 20 percent in the state; he stated that the original toter fee increase was originally double what is bein g proposed; he opposed the fee increase because he feels that it is a regressive tax, but feels that a combination of the toter fee increase, as well as some other fee increases are more progressive and feels that the increases will affect everyone equally; he noted that the toter fee hits more entities because there are properties that use toters but don’t pay property tax because they are non -profit. 4 Mayor Foley requested that Council consider adopting Resolution 1254 amending tax rates for Personal Property and Tangible Business Property and reaffirming tax rates for Real Estate, Manufactured Homes, and Machinery and Tools effective July 1, 2014; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that Chapter 8, Section 8.3 of The Salem Charter requires that we annually levy a tax for the ensuing fiscal year on all property, real and personal, subject to taxation for city purposes; state law requires a public hearing be held when a tax rate change is proposed; this public hearing was just concluded; the tax rate for personal property, which includes tangible business property, is proposed to change from $3.20 per $100 of assessed value to $3.25 per $100; the tax rate for real estate, manufactured homes, and machinery and tools will remain unchanged; the Committee recommends adoption of Resolution 1254 setting the tax rates for fiscal year 2014-2015; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1254 amending tax rates for Personal Property and Tangible Business Property and reaffirming tax rates for Real Estate, Manufactured Homes, and Machinery and Tools effective July 1, 2014, was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider adopting Resolution 1253 adopting the fiscal year 2014-2015 budget; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that the 2014-2015 budget was presented to City Council on April 18, 2014; the School System budget is included in the overall City budget; work sessions were held on May 29 and June 5, 2014; the public hearing was held on June 9, 2014, to receive written and oral comment on the budget; approval of the City budget is for informative and fiscal planning purposes only and does not actually commit or appropriate funds for expenditure; the Committee recommends adoption of Resolution 1253 adopting the budget for the 2014-2015 fiscal year as amended; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1253 adopting the fiscal year 2014-2015 budget as amended was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – ITEM 3 RESOLUTION 1254 AMENDING TAX RATES FOR PERSONAL PROPERTY AND TANGIBLE BUSINESS PROPERTY AND REAFFIRMING TAX RATES FOR REAL ESTATE, MANUFACTURED HOMES, AND MACHINERY AND TOOLS ITEM 4 RESOLUTION 1253 PASSED ADOPTING THE FISCAL YEAR 2014-2015 BUDGET 5 aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider an ordinance on second reading with emergency provisions appropriating funds for the 2014-2015 fiscal year budget; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that the fiscal year 2014-2015 budget was presented to City Council on April 18, 2014; a public hearing was held on June 9, 2014, to receive written and oral comment from the public; the budget was presented for adoption as Item 4 on tonight’s agenda; in addition to adopting the annual budget, funds must be appropriated; the first reading of this ordinance was approved on June 9, 2014; the Committee recommends approval on the second reading of the appropriation ordinance; and WHEREAS, the City Manager noted that Council has directed that any new revenue will go into the non-departmental line until such time as there is a better sense of what the state budget is going to do and then Council will direct staff at that point to change any appropriations or change any line-items; and WHEREAS, Council asked for clarification; and WHEREAS, the City Manager stated that the City’s budget includes new revenue, some of which was going to be designated for employee compensation for both the school division and city employees, and some for capital; he noted that there has been discussion on whether the employee compensation would be in the form of a cost of living adjustment or a salary/pay increase for employees; there is a state budget in place, but it will be amended and the new biennial budget may have a shortfall of $1.5 to $2 billion; there will be changes coming from the state, but we don’t know at this point how the state is going to adapt to the downward change in revenue predicted; rather than make a decision at this point in regard to giving employees a pay raise, a cost of living adjustment, or nothing at all Council has directed that the new funds to be designated toward capital and funds that may go toward employee compensation, shall be placed in a non-departmental line item until the revenue comes in; until such time as there is enough information from the State of Virginia that will provide direction to Council as to how to distribute the funds; he further stated that no funds will be expended until Council can be advised what the state budget impact will be on the local level; and ITEM 5 ORDINANCE ADOPTED WITH EMERGENCY PROVISIONS APPROPRIATING FUNDS FOR THE 2014-2015 BUDGET 6 WHEREAS, Councilwoman Garst stated that Council’s concern is that whatever is produced in Richmond is going to have a significant shortfall— whether it’s to education or some other area in city/local government; Council needs to fill that gap before it can dedicate the use of new monies elsewhere; and WHEREAS, Mayor Foley stated that Council does not want to provide cost-of-living adjustments or pay raises, or money for capital and then find out the money is needed to meet the shortfall from the state budget; the state budget will be amended in approximately 4-6 weeks and there is no way of knowing what the impact will be until the budget is amended; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, an ordinance appropriating funds for the 2014-2015 budget as amended to reflect the revenues discussed was hereby adopted with emergency provisions – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider adopting Resolution 1252 accepting a certified employer’s rate for Fiscal Years 2015 and 2016 for VRS ; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that the City is allowed to make an election regarding our employer contribution rate every biennium per the language in the 2013 Appropriations Act, Item 468(H); while we could choose a lesser rate that would provide funds for salaries, capital or other financial needs, to do so would knowingly underfund the City’s pension plan, require disclosure of such in the Comprehensive Annual Financial Report, and probably require an even higher employer rate down the road; Resolution 1252 authorizes the City to accept the “certified rate” approved by the VRS Board of Trustees, a lesser rate equal to 80 percent of the “board certified rate,” or the current VRS rate; whichever is greater; the Committee recommends adoption of Resolution 1252 electing the board-certified rate of 18.13% for the fiscal year 2015-2016 biennium; and WHEREAS, the Director of Finance noted that she recommends that Council adopts the resolution in order to keep the city in a fully-funded position; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1252 accepting a certified employer’s rate for Fiscal Years 2015 and 2016 for VRS was hereby adopted – the ITEM 6 RESOLUTION 1252 ADOPTED ACCEPTING A CERTIFIED EMPLOYER’S RATE FOR FISCAL YEARS 2015 AND 2016 FOR VRS 7 roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider closing City offices to the public on Tuesday, July 1, 2014, to facilitate the annual audit; the Commissioner of the Revenue and the Treasurer’s Office; and WHEREAS, the Director of Finance noted that the closing allows the offices to record and close the books on the fiscal year; no penalties will be assessed on that date; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the Treasurer’s Office and the Commissioner of the Revenue offices will be closed on Tuesday, July 1, 2014, to facilitate the annual audit – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider closing the Utility Collections office to the public on Wednesday, July 2 and Thursday, July 3, 2014, for software conversion; and WHEREAS, the Director of Finance stated that the latest module in the software upgrade project the city has been undergoing is the utility management module and it is set to go “live” on July 7, 2014; the reason for the request to close the office is that the data is actually going to be captured on June 30, 2014, and will be sent to the conversion team at New World on the evening of July 1, 2014; once the data has been sent, the system will not be available and employees cannot get into the new system until the old system is officially closed; it is anticipated that the converted data should be received by July 3, 2014, and then it will have to be verified for accuracy; the utility collections, utility billing, and IT staff will be working straight through that week and weekend making sure the data is correct; best case scenario is that we will be up and running with data loaded and ready to begin taking customers and entering payments the morning of July 7, 2014; if there is any delay, it may be for a couple of hours that morning, but as soon as the data is ready the office reopen; customers will still be able to pay at the banks, drop payments in the night drop box, but the office will not be open for walk-in customers; there will be no utility disconnections that week, and no penalties will be assessed; and ITEM 7 CITY OFFICES CLOSED TO THE PUBLIC ON JULY 1, 2014, TO FACILITATE ANNUAL AUDIT ITEM 8 UTILITY COLLECTIONS OFFICE CLOSED TO THE PUBLIC JULY 2-3, 2014, FOR SOFTWARE CONVERSION 8 WHEREAS, Councilwoman Johnson inquired what would be the last date of a new connection prior to closing; and WHEREAS, the Director of Finance stated that the last day information will be taken for a new connection would be June 30; she stated it would be handled on a case-by-case basis depending on when the person needs ser vice; she noted that she would work with the Communications Department to notify citizens of the office closure; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the Utility Collections office will be closed to the public on Wednesday, July 2 and Thursday, July 3, 2014, for software conversion – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. Mayor Foley requested that Council consider appointments to fill vacancies on various boards and commissions; ON A MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, William D. Jones was hereby appointed to the Roanoke Valley Alleghany-Regional Commission for a three- year term, said term will expire June 30, 2017; ON A MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, Jane W. Johnson was hereby reappointed and Lisa D. Garst was hereby appointed to the Roanoke Valley Area Metropolitan Planning Organization for three-year terms, said terms will expire June 30, 2017 – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye; Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. The City Manager noted that the reason Councilman Jones was being appointed to the RVARC was because Salem has surpassed 25,000 in population; therefore, another seat on the board was added; the reason Councilwoman Garst is being appointed to replace Melinda Payne on the RVAMPO is because elected officials are now required to be members on that board; the City Manager and members of council thanked Ms. Payne for representing the City. Mayor Foley requested that Council consider adopting Resolution 1255 concurring with the Salem School Division’s actions for VRS employee rates; and ITEM 9 WILLIAM D. JONES APPOINTED TO RVARC; JANE W. JOHNSON AND LISA D. GARST APPOINTED TO RVAMPO ITEM S1 RESOLUTION 1255 ADOPTED CONCURRING WITH THE SALEM SCHOOL DIVISION’S ACTIONS FOR VRS EMPLOYEE RATES 9 WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that Resolution 1255 acknowledges that the Salem School Board has made the election for its contribution rate to be based on the employer contribution rates certified by the Virginia Retirement System Board of Trustees and concurs with the election of the City of Salem School Division to pay the Certified Rate of 7.85% as required by the 2013 Appropriation Act; and WHEREAS, Councilman Jones inquired if the school system has two rates; and WHEREAS, the Director of Finance stated that the school system does have two rates; one rate has an option as the city does (the Board Certified rate or the Alternate rate) for the non-professional staff; the rate for the professional staff is set by the General Assembly; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1255 concurring with the Salem School Division’s actions for VRS employee rates was hereby adopted – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. The City Manager noted that there will be an organizational meeting of City Council on July 1, 2014, at 9 a.m. in Council Chambers. There being no further business to come before the Council, the same on motion adjourned at 8:12 p.m.