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HomeMy WebLinkAbout4/23/2012 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION April 23, 2012 A work session of the Council of the City of Salem, Virginia, was held in the City Manager’s Conference Room, City Hall, 114 North Broad Street, Salem, Virginia, on April 23, 2012, at 6:30 p.m., there being present the following members of said Council, to wit: John C. Givens, Jane W. Johnson, William D. Jones, and Lisa D. Garst (Byron Randolph Foley – absent); with John C. Givens, Vice Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Krystal M. Coleman, Deputy Clerk of Council; Mary Ellen H. Wines, Deputy Zoning Administrator; and Frank P. Turk, Director of Finance; and the following business was transacted: Vice Mayor Givens reported that this date, place, and time had been set in order for the Council to hold a work session; and WHEREAS, a discussion was held regarding a proposed ordinance to allow chickens to be kept in residential areas; 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 7:20 p.m. Vice Mayor Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING April 23, 2012 A regular meeting of the Council of the City of Salem, Virginia, was held in Council Chambers, City Hall, 114 North Broad Street, on April 23, 2012, at 7:30 p.m., there being present the following members of said Council, to wit: John C. Givens, Jane W. Johnson, William D. Jones, and Lisa D. Garst (Byron Randolph Foley – absent); with John C. Givens, Vice Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Frank P. Turk, Director of Finance; Melinda J. Payne, Director of Planning and Economic Development; Charles E. Van Allman, Jr., City Engineer; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney, and the following business was transacted: The April 9, 2012, regular meeting and work session minutes were approved as written. The report by the Director of Finance of the City’s financial status for a eight-month period ending February 29, 2012, was received and ordered filed. Vice Mayor Givens requested that Council receive a presentation from the Chair of the Salem School Board regarding the 2012-2013 budget; and WHEREAS, Sarah W. (Sally) Southard, Chair of the Salem School Board, appeared before the Council and stated that she would like to present the balanced budget for FY 2013 for the Salem City School division consisting of the School Fund budget in the amount of $42,039,382 and the Cafeteria Fund budget in the amount of $1,665,420 for a total budget of $43,704,802, which was unanimously approved by the school board on March 27, 2012; the FY 13 budget is $684,146 or 1.6 percent over the current year’s adopted budget of $43,020,656; she stated that it is important to note that the budget was approved prior to the General Assembly adopting a budget for the Commonwealth on April 18, 2012; therefore, amendments will have to be made once the calculation formulas are known and then an approved balanced amended budget will be presented to Council at a later time; she stated that based on the assessment of the final adopted State budget, there is only a $7,000 revenue increase from what the Board adopted on April 27; she then discussed the highlights of the FY 2013 budget: state revenue represents the majority of the $684,146 increase in the total budget because it increases by $783,277 primarily due to the VRS reimbursement increase; however, the increase is not enough to cover the $1.3 million increase in VRS costs next year; ITEM 1 PRESENTATION FROM CHAIR OF SALEM SCHOOL BOARD REGARDING 2012-13 BUDGET 2 federal revenue decreases by $599,647 due to the Jobs Bill funds ending (about $800,000); there is other federal funding including that from year 2 of the PEP Physical Education Grant; local revenue from Salem City is budgeted at $18,519,494, which is level funded other than a $99,4 94 increase to reflect funding for a shared Software Project Manager position, while City funding for debt service is decreasing by $97,068 over the current year’s debt service budget to $1,840,328, which is paid 100 percent by the City; it was noted that it is the first time request to use $290,782 in local fund balance funds to balance the budget; the Cafeteria Fund revenue is projected to increase by $41,378 due in part to an increase in lunch prices; the Healthy Hunger Free Kids Act of 2010 requires that school lunch prices be evaluated annually until the price charged for a full pay student reaches the difference in what the federal lunch program reimburses for a free lunch and what they reimburse for a full pay lunch; currently this difference is $2.51; the price of student and adult lunch prices will need to be increased each year until $2.51 is reached as the average lunch price; in FY 13 the student and adult lunches will increase by 5 cents and breakfast by 25 cents; the price of student elementary and secondary breakfast will be $1.25 next year; the elementary student lunch price will be $2.05 and the secondary student lunch price will be $2.20; there will be no charge to the current price of milk at 40 cents; the FY 12 School Fund budget is funded with 44 percent state funds, 4 percent federal funds, 49 percent local funds, and 3 percent other funds (in the FY 12 adopted budget the state funding was 43 percent, federal 6 percent, local 49 percent and other 2 percent); there were no changes made to the non-resident tuition this year since it was increased from $300 to $500 in FY 11; it remains $150 for children of City or School Division employees; she stated that balancing the budget was accomplished by providing no funding for raises; reducing salaries for 12-month licensed professional staff based on a 4-day furlough next year ($40,000); some 12-month contracts will be cut back to 10 months; two teaching positions and one instructional assistant position removed due attrition; by eliminating funding for teachers who first complete additional education next year ($32,500); increased VRS employer pension costs due to tentative rate increase from 11.93 to 17.77 percent for teachers and 13.67 percent for non-professional staff; continuing to fund the Distinguished Scholar Program ($22,000) and the International Baccalaureate program ($62,500 excluding teachers); natural gas budget reduced by $8,000; fuel budget increased by $5,000; funding for a possible 10 percent increase in health insurance and $130,000 for GASB 45 Postemployment Benefits liability; fully funding the continuation of the Retirement Extended Work Incentive Program (REWIP); budgeting for all locally funded positions; continuing to support National Board Certification for teachers; instructional supplies and travel cut by 10 percent division-wide and textbook budget cut by $25,590; wellness accounts cut by $5,000 or 50 percent; tuition assistance cut by $4,000 or 20 percent; no 3 new programs; plans to sustain a number of functions for one-year only using $290,782 from our expected year-end fund balance; on behalf of the School Board and employees, she again thanked Council and the City of Salem for the local funding provided to the school division and for the importance placed on the education of the city’s youth; she stated that by law she needs to present a balanced budget to Council by May 1, but she expects to provide an amended budget based on the final state budget calculations after the May School Board meeting; she further stated that if any additional local revenue is available, the Board would like to restore funding for teachers who first complete additional education next year; implement state-mandates regarding VRS adjustments; and reduce the number of functions sustained using fund balance; she also thanked Dr. Seibert, Mr. Crew, Mr. Turk, and the school division employees for their patience and hard work in developing the budget during such a difficult economic time; and WHEREAS, Councilman Jones questioned the estimated cost per student to educate the students; and WHEREAS, Dr. Seibert stated that the cost per child was approximately $11,000 two years ago; he stated that the cost is now approximately $10,000 per child; he stated that enrollment has been holding steady; and WHEREAS, Councilman Jones questioned the amount the state will fund per student; he noted that the amount had been $4,700 per student; and WHEREAS, Dr. Seibert stated that the amount will be slightly more per student but the fixed costs for VRS increased by nearly two times the amount of funding from the state; he stated that the school division is getting more money from the state, but the state is also compelling the school division to pay more also; and WHEREAS, Councilwoman Garst stated that 44 percent of funding comes from the state versus 49 percent local funding; she also questioned how the discussions with employees regarding VRS are going; do the employees understand the complications that arise from the decisions by the state; and WHEREAS, Mrs. Southard stated that Dr. Seibert has been handling that topic; and WHEREAS, Dr. Seibert stated Mr. Crew composed and sent an e-mail out to all employees today about the VRS five or five and one over five years; he stated that a lot of discussions have been had with the city on how to proceed; 4 he stated that he had a communication meeting with one of the schools today and it is hard to explain that it is not really a change for the employee except that it will cost the employee more in taxes; he stated that it d oes not make a lot of sense when you hear yourself explain it; he stated that information is being provided and he expects there to be some disappointment, but it has been done to the division not by the division; and WHEREAS, Councilwoman Garst thanked Dr. Seibert for taking the time to discuss the situation with employees; THEREUPON, said presentation was received. Vice Mayor Givens requested that Council consider an ordinance on first reading changing the name of Industrial Development Authority of the City of Salem, Virginia (IDA) to the Economic Development Authority of the City of Salem, Virginia (EDA); and WHEREAS, the City Manager stated that Council requested this change at a previous work session, city staff has gone back to look at the proc ess of renaming the Industrial Development Authority to the Economic Development Authority, and the steps are outlined in the ordinance; he stated that certain people will be notified of the change, but the mission and objective will remain the same; he stated that changing the name brings it more current with the things the organization handles and the way the state uses the organization in terms of economic development, it is not just industrial development anymore; ON MOTION MADE BY COUNCILWOMAN JOHNSON, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, an ordinance changing the name of the Industrial Development Authority of the City of Salem, Virginia, to the Economic Development Authority of the City of Salem, Virginia, 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 – absent. Vice Mayor Givens requested that Council consider appointments to fill vacancies on various boards and commissions; ON MOTION MADE BY COUNCILMAN JONES, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, Jane W. Johnson was hereby reappointed and Lisa D. Garst was hereby appointed to replace John C. Givens on ITEM 2 ORDINANCE PASSED CHANGING THE NAME OF THE IDA TO THE EDA ITEM 3 MAC JOHNSON REAPPOINTED TO ROANOKE VALLEY GREENWAY COMMISSION 5 the Roanoke Valley Alleghany Regional Commission as Elected Officials for three- year terms, said terms will expire June 30, 2015 – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – absent. Vice Mayor Givens requested that Council hold a closed session pursuant to provision of Section 2.2-3711 A. (3) and (1) of the 1950 Code of Virginia, as amended, to discuss property the City may wish to buy and sell, and to discuss a personnel matter; ON MOTION MADE BY COUNCILWOMAN GARST, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, in accordance with Section 2.2-3711 A. of the Code of Virginia, 1950 as amended to date, Council convened to Closed Session at 7:45 p.m. for the purpose of discussing the following specific matters: 1. Discussion of a real estate matter pertaining to property the City may desire to sell and property the City may desire to purchase, which is authorized by Section 2.2-3711 A. 3. of the Code of Virginia, 1950 as amended to date; and 2. Discussion of a personnel matter pertaining to those that are appointed directly by City Council, which is authorized by Section 2.2- 3711 A. 1. Of the Code of Virginia, 1950 as amended to date -- the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – absent. Upon reconvening at 8:57 p.m.; ON MOTION MADE BY COUNCILWOMAN GARST, SECONDED BY COUNCILWOMAN JOHNSON, AND DULY CARRIED, in accordance with Section 2.2-3712 D. of the Code of Virginia, 1950 as amended to date, Council hereby certifies that in Closed Session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the Closed Session was convened were heard, discussed, or considered by the Council -- the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – absent. There being no further business to come before the Council, the same on motion adjourned at 8:58 p.m. ITEM 4 & S1 CLOSED SESSION TO DISCUSS PROPERTY THE CITY MAY WISH TO BUY AND SELL AND A PERSONNEL MATTER