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HomeMy Public PortalAbout2016_tcmin0411SPEC COUNCIL SPECIAL MEETING April 11, 2016 Council Chambers, 25 West Market Street, 7:30 p.m. Mayor David S. Butler presiding. Council Members Present: Kelly Burk, Thomas Dunn, Suzanne Fox, Katie Sheldon Hammler, Marty Martinez, R. Bruce Gemmill and Mayor Butler. Council Members Absent: None. Staff Present: Town Manager Kaj Dentler, Deputy Town Manager Keith Markel, Town Attorney Barbara Notar, Director of Finance and Administrative Services Clark Case, Director of Capital Projects and Public Works Renee Lafollette, Director of Utilities Amy Wyks, Director of Parks and Recreation Rich Williams, Director of Planning and Zoning Susan Berry Hill, Director of Economic Development Marantha Edwards, Chief of Police Vanessa Grigsby, Director of Plan Review Bill Ackman, Information Technology Manager Annie Carlson, Assistant Town Manager Scott Parker, Network Administrator John Callahan, Deputy Director of Public Works Charlie Mumaw, Senior Management Analyst Jason Cournoyer, Senior Management Analyst Cole Fazenbaker, Business Development Manager Kindra Harvey, Deputy Director of Finance and Administrative Services Lisa Haley, and Paralegal Carmen Smith AGENDA ITEMS 1. CALL TO ORDER 111 2. ROLL CALL: Showing all members present 3. PUBLIC HEARING a. Tax Rate The public hearing was opened at 7:30 p.m. Clark Case gave a brief presentation regarding the tax and fee rates for the Town for Fiscal Year 2017. Key Points: • Proposed rate is $0.1872 per 100 of assessed value. • Includes inflation. • Personal property tax remains at the 2016 level of$0.48 of 100 of assessed value up to $20,000. • Water and sewer utility rates were adopted by Council in a long term schedule in FY2014. • Average residential tax bill is based on the weighted average assessment of property of$344,396 and a tax rate of$0.1872. • Increase of$2.76 for the average weighted tax bill. • Services in Leesburg are higher than in neighboring communities, but the average tax rate is below. 1 I Page COUNCIL SPECIAL MEETING April 11, 2016 • Town is financially sound—Triple AAA rated community by all three rating agencies based upon the adherence to the long term sustainability plan and increase of the unassigned fund balance to 20%. • Proposed budget and tax rate addresses the "fiscal cliff" in FY 2017 without the expected property tax increases. Council Comments/Questions: • Fox: Stated she would like to look at specific line items for savings such as office supplies, postal services, advertising services, food and beverage, as well as forestry services, recreational supplies and printing services. • Burk: Questioned what will happen if the budget is changed after the tax rate is approved. Case: Stated that either savings or revenues would have to be identified to balance the budget according to whatever tax rate is approved. • Dunn: Stated that the policy set by Council is presented by staff. He stated setting the undesignated fund balance level at 20% is high because taxpayers want to know that the money is being used and not just set aside. Jim Sisley, stated he has read all of Council's questions and staff's answers. He stated the 30% of tax revenues that are provided by the commercial tax base have a positive impact on the residential tax rate cannot be ignored. He asked that Council keep in mind that the commercial tax base is profitable to the town and only two staff members take care of that department. He stated the Business Awards create pride and dedication. He suggested that since the Economic Development Department is such a small part of the budget compared to their impact, that they be given raises and more staff hired. Kevin Wright, 109 Pershing Avenue, N.W., stated he supports the adoption of an equalized tax rate. He stated after reviewing the budget, he is not convinced that a tax increase is warranted and does not accept the theory that the tax bill need to be adjusted for inflation as citizen incomes have not risen with inflation. He recommended that Council identify efficiencies in trash and recycling pick up and review of the contributions to the Rescue Squad given that they may be given land valued at over $1 million. Ron Campbell, 812 Fort MacLeod Terrace, N.E. stated that as a taxpayer, it would be nice to know what the county decided not to fund. On a motion by Council Member Hammler, seconded by Council Member Fox, the following was proposed with an $0.186 tax rate(the equalized rate): ORDINANCE 2016-0-010 Ordaining Chapter 20(Licenses, Taxation and Miscellaneous Regulations), Article II(Taxation Generally), Section 20-22(Annual Levy and Rate of Taxes), and Appendix B(Fee Schedule)Setting Tax Rates on Real Estate, Vehicles used as Mobile Homes or Offices, Tangible Personal Property, Real Estate and Tangible 2 I Page COUNCIL SPECIAL MEETING April 11, 2016 Personal Property of Public Service Corporations, and Setting Utility Water and Sewer Rates for Tax Year 2017 Council Comments/Questions: • Burk: Questioned how this will affect the proposed budget. Dentler: Stated the equalized tax rate will require reductions of$82,000 from the proposed budget. • Gemmill: Stated he intends to go with the equalized rate. • Dunn: Stated he cannot support the equalized rate. He stated there is a lot of fluff in the budget. He stated that voting for the equalized rate is a vote for waste in government as there is a lot of wasteful spending and unaccounted for spending that is built into the budget. He stated there would be no reduction in services at$0.165. Council Member Dunn proposed a friendly amendment for$0.1775. The amendment was not accepted as friendly. • Hammler: Questioned what the reductions need to be to get to $0.1775. • Dunn: Stated he does not have a list of the reductions, but would be happy to table the vote until after the detailed discussion on the budget. • Butler: Questioned what staff would recommend in order to reduce the budget to meet the approved tax rate. Dentler: Stated that the vacancies could be managed to reduce the budget by the appropriate amount. The motion was approved by the following roll call vote: Aye: Fox, Burk, Hammler, Gemmill and Mayor Butler Nay: Dunn and Martinez Vote: 5-2 5. ADJOURNMENT On a motion by Council Member Martinez, seconded by Council Member Fox, the special meeting was adjourned at 8:13 p.m. aLrcif David S. Butler, Mayor Town of Leesburg IT 01P. _ Clerk of o -0; 2016 tcmin0411s.- 3 I Page