HomeMy Public PortalAbout2016_tcmin0312 Budget Work Session COUNCIL BUDGET WORK SESSION March 12, 2016
Council Chambers, 25 West Market Street, 9 a.m. Mayor David S. Butler presiding.
Council Members Present: Kelly Burk,Thomas Dunn, Suzanne Fox, Katie Sheldon
Hammler, and Mayor Butler.
Council Members Absent; Marty Martinez.
Staff Present: Town Manager Kaj Dentler, Deputy Town Manager Keith Markel,
Town Attorney Barbara Notar, Assistant Town Manager Tom Mason, Assistant Town
Manager Scott Parker, Director of Plan Review Bill Ackman, Director of Parks and
Recreation Rich Williams, Director of Utilities Amy Wyks, Director of Planning and
Zoning Susan Berry Hill, Interim Chief of Police Vanessa Grigsby, Director of
Economic Development Marantha Edwards, Director of Capital Projects and Public
Works Renee Lafollette, Deputy Director of Parks and Recreation Kate Trask, Deputy
Director of Finance and Administrative Services Lisa Haley, Deputy Director of
Utilities Robert Etris, Library Manager Alexandra Gressitt, Information Technology
Manager Annie Carlson, Airport Manager Scott Coffman, Deputy Director of Capital
Projects Tom Brandon, Deputy Director of Public Works Charlie Mumaw, Senior
Management Analyst Jason Cournoyer, Senior Management Analyst Cole Fazenbaker,
Business Development Manager Kindra Jackson, Human Resources Manager Mark
Hauer, Public Information Officer Betsy Fields, Lieutenant Jeff Dube, and Clerk of
Council Lee Ann Green.
AGENDA ITEMS
1. CALL TO ORDER
2. ROLL CALL: Showing Council Member Martinez absent.
3. COUNTY BRIEFING
Loudoun County Leesburg District Supervisor Kristen C. Umstattd stated that
the town's letter was received the day after the Board of Supervisors reviewed the
Sheriff's Office budget. She stated the Sheriff had to drop about half of the positions it
was requesting due to lack of funding.
She stated the Board feels that if they are paying 100% of the cost of the School
Resource Officers, they should be sheriff's deputies. County staff has proposed that the
county's allocation of gas tax to the town and fleet vehicle funds to cover this cost. She
stated this will result in not only a loss to the town of the gas tax funds, but the $670,000
that is currently paid to cover 70% of the School Resource Officer cost. She stated this
could result in a total loss to the town of$1.2 million over the next fiscal year.
She suggested that this subject would be more appropriately discussed at the joint
task force for Police/Sheriff efficiencies. Further, she noted that the Sheriff's department
would be willing to hire any police officers that would need to be cut if the town no
longer provides School Resource Officers.
1 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
Council Comments:
• Dunn: Noted that no officers would have to be absorbed by the county since
there are 14 current vacancies. Further, he stated that going after the town's gas
tax money is unrelated.
• Burk: Stated that when she was on the Board, another locality asked for
something similar and it enraged some of the supervisors.
• Hammler: Stated that the additional fiscal year that this transition may take will
give everyone time to adjust.
• Gemmill: Stated that this joint committee should be the start of more interaction
between the town and the county, which will be beneficial.
• Fox: Stated her agreement with allowing the task force to discuss this change.
She stated that bringing the gas tax into the discussion was not necessary.
• Butler: Stated that the gas tax was an obvious place for the county to find the
necessary funds. He stated the town was looking for areas that reasonably should
be county wide services.
Supervisor Umstattd stated she would report back to the Board of Supervisors
that this issue can be discussed as part of the joint task force.
4. BUDGET WORK SESSION
a. Capital Improvements Program
i. Questions and Updates on all projects including Utility Projects
Renee Lafollette stated that the following projects are new:
• ROTC facility for the Loudoun County Public Schools
• Security system at the Water Pollution Control Facility, Phase II
Budget Changes include:
• Skate Park renovation due to change in soil conditions on the
gravel lot. Remediation is estimated to cost approximately
$100,000.
• Battlefield Parkway, Rt. 15 to the Dulles Greenway—estimated
increase of about$1.68 million based on current bidding pricing
received on the S. King Street project. Money has been requested
through VDOT Revenue Sharing.
• Sycolin Road Widening, Phase IV—estimated increase of about
$142,000 is updated for current bids.
• Lower Sycolin Sewer Phase II—change orders experienced during
the previous construction season.
Council Comments/Questions:
• Dunn: Stated that the original estimate for the renovated skate
park on its current site was $500,000.
Lafollette: Stated that Council's decision to move it to the gravel
lot created an added cost of approximately $250,000. The soils
2 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
report came back with an estimated cost of an additional $100,000
to remediate the poor soils.
• Hammler: Stated the monetary donation of$260,000 from the
Rescue Department should be labeled.
• Dunn: Stated that Fire and Rescue should shoulder the additional
cost incurred by moving the skate park to the gravel lot.
Dentler: Stated the three options with respect to the skate park are:
1. Do you still want the skate park.
2. If so, you move it to the gravel lot and incur the $100,000 for
soil remediation or
2. Move it to Ida Lee and stay within the originally budgeted
amount.
• Butler: Questioned what the soil condition is in the current
location.
Lafollette: Stated the soils report for the current location shows the
soil to be even poorer and requiring more remediation than under
the gravel lot.
• Gemmill: Stated that if the skate park is moved to Ida Lee, the
current site could be sold and the town would come out a little bit
ahead.
• Burk: Stated that public input seemed to favor the skate park
remaining in its current location because it would serve more
people.
• Butler: Stated that the land is also currently classified as a park, so
that selling the land would require a super majority of Council,
which did not exist. Further, he stated that selling the property
would inhibit the Rescue Squad's ability to expand their current
facility.
• Fox: Questioned what the life expectancy of the concrete
improvements to the skate park would be.
Williams: Stated it is typical 12-18 years.
Renee Lafollette noted that the town has received additional
outside funding for the following projects:
• East Market Street/Battlefield Parkway Interchange—$12 million
and 70% NVTA funding.
• Rt. 15/Edwards Ferry Road Interchange - $8 million/70% NVTA
funding.
• Battlefield Parkway trail across the Rt. 15 bypass —applied for
highway safety improvement funding. VDOT staff is
recommending to the CTB that the town be funded for that project.
Will know in June whether the town is awarded this funding,
which requires a 20% local match.
Ms. Lafollette reviewed completed projects
3 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
Council Comments/Questions:
• Fox: Noted that money was allocated for a project in this fiscal
year that is not scheduled to start until a more distant fiscal year.
Cournoyer: Stated that this represents pay-go financing as design
work occurs in the years prior to construction.
• Fox: Also questioned the amount of money allocated for road
maintenance per foot.
Lafollette: Stated that there are many things that factor into road
maintenance costs including street light payments, snow removal,
striping, tree care, storm drainage, street sweeping and litter
removal.
• Hammler: Questioned why the town has not sought grant money
for the tree canopy program.
Case: Stated that the town did apply, but was not granted money,
from a local bank.
Dentler: Stated that a lot of grants are based on the financial need
of the community and this area is very wealthy.
• Hammler: Noted that the Navy Jr. ROTC program is a federal
program.
• Dunn: Noted that no u-turn signs are needed along the bypass
near the Battlefield Parkway intersection. Further, he noted that
the airport projects are more expensive. He stated he is concerned
that town residents are paying for all of the capital costs at the
Airport, but it is a regional transportation facility.
Lafollette: Stated that the town's actual cost is relatively low—2%
local match—because of the funding from DOAV and FAA. She
noted that the hangar project is an exception.
• Dunn: Expressed concern about the pay-go process if a developer
cannot meet the obligation for things that were promised. He
advised Council to be cautious about over-extending themselves.
• Burk: Questioned the length of time it will take for the hangars to
pay for themselves.
Case: Stated it will take 20 years.
• Burk: Questioned where the West Market Street sidewalk is in the
project list. She questioned the status of the Morven Park Road
sidewalk as well.
Lafollette: Stated it has not yet been added as the studies and
estimates have just been received. Further, she stated that the
Morven Park Road Sidewalk is moving forward as scheduled.
• Dunn: Noted that when projects jump up, like the water feature,
they displace other projects that have been moving forward.
• Burk: Questioned whether the town's rates at Ida Lee are
competitive with what is charged at other facilities.
Williams: Stated that the town is positioned pretty well with
pricing and have not raised fees in order to stay in line with other
facilities.
4 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
• Burk: Questioned why the proposed water feature at Ida Lee is
more expensive than the one downtown. She expressed concern
that the two parks would be fairly close to one another.
Williams: Stated that the feature at the park is much larger than
the one planned for Mervin Jackson Park.
• Burk: Questioned the specifics of the lease for Olde Izaak Walton
Park. Specifically, she expressed concern that the town is
responsible for all improvements.
Williams: Noted that the bridge is public right of way and not part
of the lease.
• Burk: Stated her interest in moving the Morven Park Road
sidewalk up. She questioned whether the storm drainage projects
include the Exeter Pond/Dam.
Lafollette: Stated that the Exeter Pond was not included in the
drainage projects.
• Burk: Questioned which is less expensive for water treatment—
chloramines or chlorine and why does the town use chlorine.
Wyks: Stated that the town has a traditional treatment plant. She
noted that the Council chose to not switch to chloramines many
years ago and the discussion has not been revisited since.
• Butler: Stated he recalled a discussion several years ago and that
there are not only some health concerns with chloramines, but
some equipment that would have to be changed to use them.
ii. Project Management Costs/Pay-Go Financing.
Clark Case explained pay-go financing. He stated the project
management costs include capital projects staffing and the costs of services
provided by other departments to projects. He stated this reduces the
amount of money being borrowed for capital projects and expands the
ability to use financing for other projects. He stated that rolling the capital
projects management costs into the amount borrowed for a project was
necessary during very tight budget times; however, the town is trying to
move away from this practice.
Council Comments/Questions:
• Burk: Does this include salaries?
Case: Yes, project management salaries as well as transfers from
the General Fund for non-project employee time used.
• Burk: Where would the salaries come from now?
Dentler: The general fund, which is best practice.
• Hammler: Stated that paying interest on salaries should never
have happened so this is a step in the right direction.
• Dunn: Noted that this would allow the debt to be paid down
faster.
5 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
• Butler: Stated that putting salaries in the cost of the capital project
is common practice. He stated that pay-go financing is more
conservative, which is good.
b. General Fund
Proposed enhancements
Kaj Dentler reviewed the enhancements over last year's budget:
• Network administrator position.
• Downtown initiatives.
• Cyber-security insurance
• GIS applications.
• Leadership program with the Police Department.
Council Comments/Questions:
• Dunn: Questioned why the contract network administrator cost
$50,000 more than an employee.
Dentler: Currently we only have one network administrator. The
contract employee cannot perform the full function of the network
administrator. •
• Hammier: Questioned the cost for cyber security insurance.
Case: The pool is available to local governments to deal with cyber
intrusions.
• Hammler: Questioned the cost for the leadership program with the
police department.
Dentler: The program is targeted at older teens in order to
establish a better relationship with the police depai tment. It was
further noted that 12-15 children would be served by this program.
• Hammier: Questioned the grant for the downtown. She stated it
should be part of the Visit Loudoun money. Further, she stated
she would want details on the Council Chambers AV upgrade.
• Gemmill: Stated he is having a hard time understanding the
concern for giving contractors sensitive access to sensitive
information.
Case: Stated the town protects that information by keeping it
closely held.
ii. Operational cost increases
Council Comments/Questions:
• Fox: Expressed concern with the increase across the board for
contractual services.
• Dunn: Stated that the budget was difficult to work with this year.
He questioned how many memberships and publications are truly
needed. He questioned in some instances if the membership or
publication can be shared with the county.
6 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
111
• Butler: Questioned the slight increase in refuse and recycling.
Lafolette: Stated that there are several factors, one being the
increase in tipping fees and the market rates for recyclables.
Dentler: Twice weekly trash pick up is hurting the amount of
recyclables picked up, which affects the contractor's pricing.
• Gemmill: Stated that cutting back the trash pick up would help the
bottom line.
• Fox: Questioned whether the town receives money back for
recycling.
Lafollette: Stated that the town does not get any money back.
iii. State revenue sharing update (loss of$475,000 for paving)
Kaj Dentler stated that the state has notified the town that they will
not get $475,000 in milling and paving money through the revenue
sharing program.
Renee Lafollette stated that the revenue sharing program is a dollar
for dollar match and without it, the town will need to absorb the $475,000.
She stated that VDOT has two priority levels, the first is projects going to
or already in construction. The second priority is ones that have already
received revenue sharing money and the third priority is maintenance.
She stated they are not funding maintenance across the state, but staff will
be going after other funds that are available.
Council Comments/Questions:
• Dunn: Requested the table that shows how often roads are re-
paved. He stated the town maintains one of the highest service
levels in Northern Virginia. He stated going down in maintenance
level just a little bit will not be noticeable.
• Hammier: Stated this is a huge hit and she would like more
context on how this happened. She stated that this is a basic core
service of state government.
Lafollette: Stated that the revenue sharing program for milling and
paving(maintenance) was added in FY 2014 and the town has
been successful in getting funding.
• Fox: Questioned how many rooftops have been added this year.
• Dunn: Answered about 15,000 total.
• Butler: Noted that some of these are apartments and condos.
• Fox: Requested a chart showing what has been approved, yet not
built.
• Gemmill: Questioned the number of employees.
Cournoyer: Stated regular employees is 349 and about five are part
time.
• Hammier: Requested the dollar amount changes in the tax rate
create.
7 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
Dentler: Stated $0.183, which is the current, to the proposed
$0.1872 is $282,000.
• Hammler: Questioned the emergency transport reimbursement
available to the Rescue Squad.
• Dunn: Requested a table of contents for the budget. He expressed
concern with the two year budget cycle. He stated they really don't
spend enough time on the second year. He suggested that next
year, a full day budget work session be scheduled.
• Butler: Stated it was a council decision several years ago to move
to a shorter session on Saturday with all the specific questions
asked off-line and answers provided to all of Council. He stated
that Council can change the process.
• Burk: Stated that this is the second year of a two year budget that
isn't changing very much. She stated there can be very little
accomplished in going through each depai tment since there are no
changes. She stated that the town expects the level of service that
is provided and will not be happy if the levels of service are cut.
• Dunn: Stated he is not talking about cutting services, but about
spending more efficiently.
iv. Other
c. Capital Asset Replacement Program
i. Review of proposed list
Kaj Dentler stated that Council approved establishment of this
program several years ago with the purpose of replacing vehicles and
making repairs to facilities. •
Clark Case stated that the Capital Asset Replacement Fund is
funded by taking the increase in the fund balance at the end of the fiscal
year and dividing it in three pieces. The primary piece goes to the Debt
Service reserve as per the long term sustainability plan, and the second
piece goes to the Capital Asset Replacement fund and the last piece goes
to increasing the undesignated fund balance to 20% as promised to the
rating agencies by 2021.
Council Comments/Questions:
• Hammler: Questioned what is different about the Chamber's AV
equipment over last year, when Council decided not to improve the
system.
Dentler: Stated that the system is antiquated and needs to be
replaced. He stated that it is difficult for the public to hear.
• Hammier: Questioned "replacement" of body cameras, since the
town doesn't have body cameras.
8 I Page
COUNCIL BUDGET WORK SESSION March 12, 2016
• Gemmill: Noted that the body cameras would be on hold until the
new chief is selected.
• Fox: Requested that the public is able to see the answers to
Council's questions.
d. Utilities Operating
Council Comments/Questions:
• Fox: Requested a breakdown, depai tiuent by department, of the increases
in contractual services.
• Dunn: Questioned the substantial increase in legal services.
Wyks: Stated that the request for FY17 is not a change over FY16. She
noted that the amount was spent last year for outside counsel working
with environmental contract and working with the Panda Energy
agreements.
e. Other
5. ADJOURNMENT
,-✓[
jjgdi.
David S. Butler, Mayor
Town of Leesburg
46
IP , 4 ,
Clerk of E uni0
2016_tcmin0312 Budg- ,
9 I Page