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HomeMy WebLinkAbout6/9/2014 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION JUNE 9, 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 9, 2014, at 6:30 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, 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 gave an update on the Broadband Authority ; and WHEREAS, a discussion was held regarding the budget schedule; 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 6:56 p.m. ____________________________________ Mayor _____________________________________ Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING June 9, 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 9, 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; William L. Simpson, Jr., Assistant City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney; and the following business was transacted: The May 27, 2014, regular meeting minutes were approved as written. The report by the Director of Finance of the City’s financial status for a nine-month period ending April 30, 2014, was received and ordered filed. Mayor Foley noted that Council will consider Resolution 1251 prior to considering Resolution 1250. Mayor Foley requested that Council consider adopting Resolution 1251 commending Hunter Sampson for winning the 2014 State 4A Indoor 500 meter dash; and WHEREAS, Mayor Foley read Resolution 1251; and WHEREAS, Council presented Mr. Sampson with a resolution and championship pin; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 1251 commending Hunter Sampson for winning the 2014 State 4A Indoor 500 Meter Dash 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 1250 commending the Salem High School Forensics Team for winning the 2014 State ITEM 2 RESOLUTION 1251 ADOPTED COMMENDING HUNTER SAMPSON FOR WINNING THE 2014 STATE 4A INDOOR 500 METER DASH ITEM 1 RESOLUTION 1250 ADOPTED COMMENDING THE SALEM HIGH SCHOOL FORENSICS TEAM FOR WINNING THE 2014 STATE AA FORENSICS CHAMPIONSHIP 2 AA Forensics Championship; and WHEREAS, Mayor Foley read Resolution 1250; and WHEREAS, members of the Forensics Team were presented with a resolution and championship pin; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, Resolution 125 0 commending the Salem High School Forensics Team for winning the 2014 State AA Forensics Championship 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 reported that this date and time had been set to hold a public hearing regarding the 2014-2015 recommended budget; notice of such hearing was published in the June 1, 2014, issue of The Roanoke Times, a newspaper having general circulation in the City of Salem; and WHEREAS, Mayor Foley noted that Council is holding a public hearing to receive citizen input and accept the budget; however, anything that is discussed at the meeting would not become final; any amendments or changes to the current budget that was advertised will not be finalized until the second reading on June 23, 2014; citizens are welcome to discuss anything that has been published in the newspapers, or discussed in public meetings; and he reiterated that nothing would be finalized at tonight’s meeting; the second reading on June 23, 2014, would be the final budget and that would be the night Council will vote on finalizing any tax rate changes, fee changes, etc.; and WHEREAS, the City Attorney noted that the budget process takes two hearings; only the second one actually counts; he noted that Council is not approving anything at this meeting; Council is to receive input from the citizens of Salem; a public hearing will be held at the June 23, 2014, meeting on the potential of raising any tax rates; he noted that the budget will be officially and legally adopted at the June 23, 2014, meeting; and WHEREAS, the City Manager noted that the budget was presented to Council in April, and it was a budget that was not balanced at that point because the School Division had requested that Council consider a two percent pay raise for their employees, as well as some other small additional items; that budget is what is to be considered this evening on first reading; as a result of various ITEM 3 PUBLIC HEARING HELD REGARDING 2014-2015 BUDGET 3 budget meetings and discussions in April, city staff was directed to present a list of options to City Council to help bridge the gap—the unbalanced budget from the School Division, as well as the desire to do an additional investment in the City both in terms of capital and to look toward the feasibility of a pay raise for city employees; various fee changes and a potential for a tax increase have been discussed in several public work sessions; a list of approximately 90 potential changes has been compiled and that list was available for the public at the meeting; some of the fees have been in place since the 1980s; the proposed changes and the dollar amounts associated with the changes will be part of what may be the amended budget to be adopted on June 23, 2014; Council will consider the budget as presented to Council in April, and also discuss the changes that may potentially come June 23, 2014; and WHEREAS, Councilwoman Garst asked the Director of Finance or the City Manager to discuss what will happen on June 23, 2014, if a state budget has not been approved; and WHEREAS, the Director of Finance stated that staff will ask Council to adopt the budget as presented, including any amendments; if the state were to come back and not adopt a budget, contingency plans will be in place and may be discussed at the June 23, 2014, meeting; and WHEREAS, Councilwoman Garst stated that her biggest concerns are the educational and the health and human services pieces of the budget; and WHEREAS, the Director of Finance noted that the schools will have the hardest time and the city would need to decide how to fund their budget; staff has talked with other localities about what their options are and no locality has a clear plan because this is unprecedented for the state to not actually have a budget adopted by July 1; she stated that there would be a contingency plan for what the City will do by June 23, 2014; and WHEREAS, it was noted that if the state passes a budget before July 1, 2014, that changes the monies received from the state, Council can come back and amend the budget after July 1, 2014, if necessary; and WHEREAS, Billye White, 1234 Forest Lawn Drive, appeared before the Council and stated that she has lived at her residence for 62 years; she stated that she supports Council’s efforts to give its employees a pay increase; she stated that employees have not had a raise in five years, and she doesn’t know of any group of employees that works any harder or looks after its citizens like the employees of the City of Salem; she supports everything that Salem does for 4 its citizens; she again stated that she supports the fee increases in an effort to give city employees a pay raise; and WHEREAS, Dwayne Baxley, 511 Bonnie Lane, appeared before the Council and stated that he appreciates everything the City does for its citizens and understands the budget, but he feels that there other ways to go about things; he stated that he would rather employees receive a bonus than a two (2) percent pay increase; he suggested that another large concert be planned with the proceeds from the concert directed toward bonuses for the employees; and WHEREAS, Norma Dickerson, 603 High Street, appeared before the Council and stated that she and her husband bought their house on High Street 16 years ago; she stated that they looked for a community with good services and did not realize how great the services in Salem were until they moved into their home; the schools, the parks, library, and athletic facilities add beauty and an opportunity for growth and learning for young and old in our city; she described the numerous services she and her family have received since moving to the City of Salem; she encouraged Council to raise property taxes, as well as fees; she stated that her husband has calculated that raising taxes will cost less than 25 cents a day, which is something they can afford; she stated that the employees of the city take care of the residents and now it’s time for the residents to take care of the employees; and WHEREAS, Barbara Winfrey-Anthony, 607 Doyle Street, appeared before the Council as a parent, a member of the PTA, and as a resident of the city; she thanked Council for its support and finances made available to the school system in the past; because of Council’s support, students are able to excel, not only in academics, but also in many other facets of life; it shows that in Salem children come first; she also encouraged Council to look within and allocate the funding requested and needed by Dr. Seibert for the upcoming fiscal year; with Council’s continued support, the schools will continue to mold well-rounded, solid citizens through which our community will grow and prosper; and WHEREAS, Jeff Sluss, 1200 Meadowview Drive, appeared before the Council representing the Salem Council of PTAs; he stated that he is the Salem Council PTA President; on behalf of some 3,500 members of the Salem PTA, he thanked Council for its continued support of education in the City of Salem; he asked Council to continue its support of education; he stated that the schools have cut everything from carpet and textbooks to remediation programs, which are important to students who are failing in the schools; furloughing 12-month employees also has been done, the attrition of many positions, the elimination of some important programs; etc.; he noted that some programs have been 5 saved; he again asked Council for its continued support and help in bridging the gap in the school division budget and he again thanked Council for its support; and WHEREAS, Charles Wertalik, 139 North Oaks Drive, appeared before the Council and stated that he has lived in Salem for almost two years; he stated that he feels that the toter fee increase is too high and feels that a tax increase as well is too much; he asked Council to consider a reduction or elimination of some of the fees; and WHEREAS, Councilman Jones stated that a real estate tax has not been proposed, only an increase in personal property taxes is being proposed; and WHEREAS, a discussion was held regarding the list of possible tax/fee increases that have been discussed; it was noted that an increase in real estate tax is not being considered, and that an increase in the Vehicle License Fee (VLF) is also not being considered even though the increases are shown on the list; and WHEREAS, the Director of Finance clarified that the possible increase in the personal property tax rate applies to vehicles for individuals; business personal property; or motor homes; for the average citizen, personal property applies to vehicles and is what is included in personal property tax changes; and WHEREAS, Sharon Reaser, 1550 Links View Drive, appeared before the Council and stated that many of the proposed fee changes will increase fees more than 200 percent; she feels that is too much of an increase; she stated that fees and charges are increasing but the money citizens have coming in is not increasing; and WHEREAS, George Newman, 3053 Golf Colony Drive, appeared before the Council and stated that instead of giving an across-the-board pay raise, a lump-sum bonus should be given to the employees; he stated that instead of increasing the fees and taxes, he asked Council to consider other ways to save money such as changing the election date from May to November, which will save the City up to $22,000 per election; and WHEREAS, Dan Newman, 3041 Golf Colony Drive, appeared before the Council and stated that he doesn’t think that anyone present would argue that the hard-working officials and employees of the City of Salem don’t deserve a raise, but he feels that a lot of people here would state that increasing taxes and fees has a negative impact on the community at-large; he stated that Council should encourage residents to eat and utilize the businesses of Salem instead of 6 driving to other communities for the same; and WHEREAS, Matthew Obenchain, 2403 Post Oak Road, appeared before the Council and inquired about how publishing the water report in the city magazine increases revenue; and WHEREAS, it was noted that DEQ requires the publication and previously the report was sent as a separate mailing to all residents; and by publishing the report in the magazine, it greatly reduces the costs associated with producing the report (postage, etc.); and WHEREAS, Mr. Obenchain stated that a lot of the fees will not directly affect him; he encouraged Council to think “outside the box” to increase revenue; he asked Council to move the election from May to November; and WHEREAS, no other person(s) appeared related to the hearing; and WHEREAS, it was noted that the final budget will be voted on at the June 23, 2014, meeting; THEREUPON, public hearing was closed. WHEREAS, Councilman Jones stated that he has been on Council for six years and this has been the most difficult budget to date for a number of reasons; he feels that Council has been creative with proposed increases—if Council approves increases, it tries to designate the increases and what the increases are to be used for; he stated that the City is subsidizing trash approximately $1 million a year and it doesn’t make any sense to “throw” $1 million into a landfill and have no chance of regaining that money, but if you increase a fee associated with trash removal and use the revenue to give back to the employees and for capital projects that benefit the people in the community, that makes good business sense to him; he noted that the fee increases affects him as he owns five different pieces of property and is a “car-aholic” so to speak; Council is not proposing anything that does not personally affect members of Council; he stated that Council has had numerous discussions on various ways to increase revenue; he stated that the proposed increase related to trash removal equates to $1.39 a week and he proposed an increase where it would equate to $2.50 a week for trash removal; he doesn’t know anyone who wouldn’t pay $2.50 a week for trash removal; he further stated that the city employees deserve something—whether it be a pay raise, bonus, etc.; unfortunately in government, things are mostly paid by taxes and what can be reduced; the current Council has cut 39 jobs through the help of all the staff that has been 7 here; it has also been suggested that Council do not receive compensation; Council does their job with their hearts; he has lived in Salem his whole life and he loves Salem; in the six years the current Council has been together, this has been the toughest budget meetings we’ve had but it’s all been done in an effort to come to a compromise in order to balance the budget; tough choices have to be made and this Council has had to make them; he feels that Council has presented things in the best way possible; and WHEREAS, Councilwoman Johnson concurred with Councilman Jones; she noted that Council has asked employees to think outside of the box and to do everything possible to reduce budgets department by department and save where possible; she feels that employees have done an excellent job of cutting and saving money; it is now at the point to how can you keep the level of services where they are if the costs of doing so keeps going up and the costs are not passed on; it is impossible; she thanked her fellow Council members because there have been a lot of tough discussions and we had to bring up some things Council didn’t ever want to discuss (i.e. increasing the personal property tax rate); she feels that in working together, Council has co me up with a fair approach for everyone; and WHEREAS, Councilwoman Garst stated that the City has learned how to do things new ways; city staff has provided Council with various information and options on ways to be more efficient and possible revenue resources; t he personal property tax rate in Virginia—Salem’s current rate of $3.20 with a proposed increase to $3.25 would still keep the rate in the bottom 20 percent in the state; machinery and tools are not being proposed as part of the increase in an effort to encourage industry in Salem; the real estate tax rate was lowered the last time it was changed, which was in 1985; she stated that she and Council feel the proposed increases are a compromise and hopes the citizens feel the same; Council wants to continue to provide the level of services expected in Salem; she noted that 20 percent of the properties in the City of Salem fall into the tax exempt category and with the increase in trash pick-up fees, those properties will contribute to those services as well; and WHEREAS, Vice Mayor Givens echoed the sentiments previously expressed; he has been on Council for 19 years and this has been the toughest budget year to date; Salem, as well as other localities across the state are hindered by our state representatives who will not come up with a budget that funds what localities need in order to fund education and other state-mandated items localities are required to fund; and 8 WHEREAS, Councilwoman Garst noted that it is not only the current year’s budget that is the issue, it is years of state budget cuts from the state that the localities have to play “catch-up” on; as Salem has played catch-up for the state’s shortfalls, Salem has not been able to take care of its own capital needs; no one wants the city to not have the police, fire, rescue vehicles, or snow removal vehicles needed; she stated that if something isn’t done now, the capital deficit will be very painful to dig out of; and WHEREAS, Mayor Foley also echoed the sentiments expressed by the other members of Council; he stated that he feels that the proposed increases are a true compromise; he noted that the tote r fee is per address, not per toter; therefore, the fee is the same whether a residence has one toter or two; he noted that a lot of the increases on the list handed out are employee ideas; he further noted that employees have not had a pay increase in five years and that their net pay has been flat or decreased due to insurance rate increases; there have been no capital improvements; he stated that now is the time to “put up or shut up” and Council and city staff have all tried to do their best with all of the issues before the City; and WHEREAS, Vice Mayor Givens thanked all of the city employees who have worked the last five years without a pay increase; who have come up with innovative ideas within their departments in an effort to reduce costs for services; etc.; and WHEREAS, Councilwoman Johnson encourages residents to shop local; and WHEREAS, no further comments were made. Mayor Foley requested that Council consider an ordinance on first reading 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 Council on April 18, 2014; the public hearing was held to receive written and oral comment from the public concerning the budget; in addition to adopting the annual budget, Council must appropriate the funds; this commitment of funds will occur with the approval of the second reading of the 2014 -2015 appropriation ordinance to be heard on June 23, 2014; after discussion, the Committee recommends approval of the ordinance on first reading to adopt the 2014-2015 budget; ITEM 4 ORDINANCE PASSED APPROPRIATING FUNDS FOR THE 2014-2015 BUDGET 9 ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, an ordinance appropriating funds for the 2014-2015 budget as presented in April was hereby passed on first reading – 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 a request to appropriate Highway Maintenance funds; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that each year the City receives funding from the state for highway maintenance; if these funds are not spent during the year, they may be carried over to the next fiscal year; as of June 30, 2013, the City had funds in reserve; reserve funds will be used to rehabilitate approximately 1,000 feet of storm sewer near Salem Woods Apartments and Franklin Street at a cost of $389,432; this amount includes a 10 percent contingency; the project will enlarge the sewer system and improve capacity, allowing storm water for higher intensity storms, to be transported without encroaching and over topping the roadway; the Committee recommends approval of appropriating highway maintenance funding from the state for storm sewer rehabilitation; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the request to appropriate Highway Maintenance funds was hereby approved – 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 request to appropriate supplemental Comprehensive Services Act funds; and WHEREAS, Vice Mayor Givens, Chair of Council’s Audit-Finance Committee, reported that the State provides funding to the City under the Comprehensive Services Act (CSA) intended to cover various services that are child-centered, family-focused and community-based to address the needs of troubled and at-risk youths and their families; if the City spends more than originally awarded by the State to provide these mandated services, a supplemental appropriation can be requested; in the current year, CSA funding awarded by the State has been spent and the City requested a supplemental appropriation from the state; the Committee recommends approval of appropriating these funds; and ITEM 5 REQUEST TO APPROPRIATE HIGHWAY MAINTENANCE FUNDS APPROVED ITEM 5 REQUEST TO APPROPRIATE SUPPLEMENTAL COMPREHENSIVE SERVICES ACT FUNDS APPROVED 10 WHEREAS, Councilman Jones requested that the Director of Finance further explain what the CSA funds; and WHEREAS, the Director of Finance stated that the CSA funds are funds that are actually spent on at-risk children in an effort to try to prevent them from being removed from their homes or to help them if they are removed from the home (i.e. foster home, group home, therapy for the child and/or family, etc.); she noted that the funds are hard to predict each year the number of children who may need these services or come into care; for the current fiscal year, the City has expended both the local portion as well as the revenue received from the state; she stated that this is the additional funding needed to help the at -risk children for the remainder of the current fiscal year; she further noted that over the past two-three years, the total amount expended has ranged between $1.1 and $1.4 million a year in services; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the request to appropriate supplemental Comprehensive Services Act funds was hereby approved – 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 an ordinance on second reading amending Chapter 30, Article IV Stormwater Management (in its entirety) of the Code of the City of Salem, Virginia, pertaining to stormwater management; and WHEREAS, Councilwoman Garst noted that the fees associated in the ordinance are only fees that are required and mandated by the state; ON A MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY VICE MAYOR GIVENS, AND DULY CARRIED, an ordinance amending Chapter 30, Article IV Stormwater Management (in its entirety) of Code of the City of Salem, Virginia, pertaining to stormwater management 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 appointments to fill vacancies on various boards and commissions; and ITEM 7 ORDINANCE ADOPTED AMENDING CHAPTER 30, ARTICLE IV STORMWATER MANAGEMENT (IN ITS ENTIRETY) OF THE CODE OF THE CITY OF SALEM, VIRGINIA, PERTAINING TO STORMWATER MANAGEMENT ITEM 8 NO ACTION TAKEN 11 WHEREAS, no action was taken. Councilman Jones thanked the residents who came to the meeting tonight and spoke regarding the budget. Mayor Foley asked that everyone keep the McCauley family in their thoughts and prayers. The McCauleys are students at Salem High School and were involved in an accident on Interstate 81. There being no further business to come before the Council, the same on motion adjourned at 8:37 p.m.