Loading...
HomeMy Public PortalAbout2009_tcwsmin0622 Council Work Session June 22, 2009 Council Chambers, 25 West Market Street, 7:30 p.m. Mayor Umstattd presiding. Council Members Present: David S. Butler, Thomas Dunn, II, Katie Sheldon Hammier, Marty Martinez, Ken Reid, Kevin Wright and Mayor Kristen Umstattd Council Members Absent: None Staff Present: Town Manager John Wells, Town Attorney Jeanette Irby, Director of Public Works Tom Mason, Director of Planning and Zoning Susan Berry Hill, Deputy Director of Planning and Zoning Brian Boucher, Economic Development Manager Marantha Edwards, Director of Finance Norm Butts, Assistant Director for Recreation Kate Trask and Clerk of Council Lee Ann Green AGENDA ITEMS 1. Work Session Items for Discussion: a. Financing for New Bond Issues Norm Butts introduced Courtney Rogers from Davenport and Company, the Town's financial advisors. He stated the Town will require somewhere around $54 million to fund the CIP program and the plan is designed to maintain or hopefully enhance the Town's bond rating. He stated it will depend on the rates when the Town goes to market as to whether there will be refunding opportunities on the currently outstanding debt. He added the Utilities Fund will remain self supporting. He stated because of changes in Federal law, the Town had the opportunity to do a lot of this as a bank qualified issue, which is easier to manage and more cost effective. He noted one of the Council's key fiscal policies is that debt service can be no more than 15% of general government expenditures. Mr. Rogers reviewed the proposed plan. He reviewed current payout ratios and stated the Town wants to strive for better than 60% and is currently at 67% (paid off in the first 10 years). Mr. Rogers explained debt service ratios and noted for the purposes of these figures, they have assumed worst case scenario. Mr. Rogers discussed changes brought about as a result of the Federal stimulus bill and the effect these changes have on the Town's financial picture. Council discussed the effect of these changes on refinancing of existing debt. Mr. Rogers discussed Build America Bonds (BAB) and the evolving nature of these bonds. He discussed the three phase financing plan. Council raised the issue of timing of debt and questioned why the Town should borrow more money than it needs. It was summarized the borrowing would be early in anticipation of interest rates rising. Mr. Butts stated all 45 projects in the CIP will be funded, but the question is the timing of the funding and there are a lot of factors affecting the timing including interest rates. Mr. Rogers noted interest rates are at a 20 year low and he does not see them dropping any lower. Town Council Work Session of June 22, 2009 Page 2 Mr. Wells summarized that in an uncertain financial climate, it is a better service to the taxpayer to borrow the money that we know we will need for specific projects at a lower interest rate now rather than wait and risk the interest rate rising. He stated the Town will use the best method to get the dollars need for the projects at the best possible deal. Mr. Rogers clarified this bond issuance would be for this fall. There was discussion over debt ratios and timing for projects. Concern was raised this issuance would put the Town close to the policy limits and preclude further borrowing for emergency projects. Mr. Wells stated there are options including reordering projects and opportunities to pay down debt as the economy improves. There was discussion over how shortfalls in the State budget have affected the amount the Town will need to borrow for Capital Projects, particularly with regards to transportation projects. Mr. Rogers discussed the three phase plan for the bond financings and the debt service for the three phases. He noted the payment of principal continues at 60-65%, which is optimal. He discussed the timing for implementation of the first phase. Council discussed the effect of debt service on the future tax rate. Mr. Butts stated it is impossible to predict the effect on the tax rate because of the uncertainty of assessments; however, in order to fund additional debt it will be necessary to come up with additional money. Council expressed concern regarding borrowing money up front and when the initial payments would begin. Mr. Wells stated this is implementing the Town's CIP, as adopted. He stated the question is what is the best way to finance the CIP projects in the long term. The best way to move forward with funding the CIP may be to spend more money up front to realize greater savings over the long run. He noted the Town would not borrow more money in total, it just would be borrowed up front because the cost of borrowing money may go up. Mr. Wells added the first debt service payments are typically not in the same fiscal year as the bond sale. Council asked for all assumptions to be listed out so they could make an informed decision. b. EDC Fac;ade Grant Improvement Program Marantha Edwards stated, at Council request, the EDC was tasked with producing a recommendation regarding a pilot Fac;ade Grant program. She stated it was looked at as an economic incentive to help revitalize the downtown. Ms. Edwards added no funding was identified because grant amounts still need to be assessed. She stated partnerships could be looked at as part of the funding mechanism. She noted that the Town of Purcellville's program grants up to $2,500 total, although it has not been implemented. Town Council Work Session of June 22, 2009 Page 3 Council Member Dunn suggested using parking meter funds for this program. He stated that way the users of the downtown would be the ones to benefit from the improvements. He questioned who would review the applications. Ms. Edwards stated the proposal included representatives from the BAR, the EDC and some representation from staff. Council Member Reid clarified that this proposal only refers to commercial properties in the H-1 district. He questioned whether the banks would be approached as partners in this program and whether this is an issue better handled by a downtown management agency. He also questioned enforcement. Ms. Edwards stated the banks would certainly be approached about funding when the project was ready to identify funding sources. Mr. Wells stated the DIA's organizational structure causes some problems when working with Town funds. Ms. Irby stated the Town can only force a property owner to maintain a property so that it does not become a hazard. Council Member Reid stated he believes this sets a bad precedent. He stated once the H-1 District Guidelines are adopted in July, the BAR will have enforcement ability throughout the H-1. He stated property owners need to maintain their own property. Council Member Butler agreed. He stated downtown improvements have already been approved. He questioned why should the Town do this for property owners downtown and not allover town. Council Member Wright stated this is not referring to simple repairs and maintenance, but fac;ade upgrades. He asked that the time lines be looked at closely to make sure they are realistic. Council Member Martinez stated this project must focus on historic fac;ade restoration and preservation. Vice Mayor Hammier asked for a full audit of what are the most pressing needs from a revitalization perspective. She stated there needs to be progress and commitment for a downtown association that becomes the homeowners association for the downtown and takes on commitment for monitoring and enforcing maintenance. She stated she would like additional information. Mayor Umstattd stated she feels this is one of the worst ideas she has heard. She stated taking tax dollars from someone in a subdivision and giving it to downtown property owners is outrageous. She stated unless this is completely supported by the private sector, she cannot support this project. Ms. Edwards stated this proposal was not put forth by the property owners, but initiated by Council. Council Member Reid stated there are other options for downtown property owners wishing to improve the fac;ade of their buildings. Town Council Work Session of June 22, 2009 Page 4 Council Member Dunn suggested low interest loans for the improvements. He stated Council had the opportunity to lower taxes earlier in the year, but did not. Mayor Umstattd stated Council Member Dunn's statement was incorrect as Council did lower taxes as the actual amount a property owner would pay had decreased. Council Member Dunn stated Council has already approved millions of tax dollars for improvements in the downtown. He stated cutting this proposal off will effectively lead to new sidewalks leading to crumbling buildings. Council Member Martinez left the meeting at 9: 16 p.m. Ken Werner of the EDC stated the EDC spent a great deal of time and effort to research this request by Council. c. Final H-2 Guidelines Report Mary Harper of the H-2 Guidelines Committee reviewed the findings of the Committee regarding the H-2 Corridor program. She stated the Committee was comprised of members of the Planning Commission, the Board of Architectural Review, and the Economic Development Commission as well as interested residents and business owners. She stated the program has not achieved the desired result since it was instituted in 1990. She stated the Committee reviewed the area which comprises the H-2 Corridor and the Guidelines used to administer the program. She stated they looked at 11 other communities that have H-2 corridors to judge the effectiveness of their program, the effectiveness of corridor overlay districts in general and to learn more about what should be avoided and what could be useful when applied to the Town's program. She stated the general conclusion was that the Leesburg H-2 Corridor has not achieved either a sense of place or the quality of development that was expected when the corridor was created. Ms. Harper stated three recommendations have been made,by the Committee: 1. Three areas should be added to the H-2 corridor program in the future. 2. Two areas should be added to the H-1 district. 3. One area should be converted from H-2 to H-1. Brian Boucher elaborated that the three areas recommended for inclusion in the H-2 district are portions of Battlefield Parkway, a portion of Fort Evans from Plaza Street running to the eastern corporate limit line, and from Catoctin Circle to Edward's Ferry Road. He stated if a Form Based Code area is adopted, then that would be supplanted. He stated the area from the existing H-1 along Edward's Ferry Road to Catoctin Circle should be added to the H-1 and the H-2 area along the western end of Market Street should be converted from H-2 to H- 1. Ms. Harper stated the proposed Form Based Code, if adopted, may be appropriate to supplant the H-2 district in locations where the two overlap since design guidelines are contained in the form based code. Town Council Work Session of June 22, 2009 Page 5 She stated goals of the H-2 Guidelines need to be clearly stated and should foster a sense of Leesburg. She reviewed current problems that should be addressed with the revised guidelines. Mr. Boucher described the areas of Town where the H-2 has been expanded outside the entrance/exit corridors from the Historic District. There was discussion regarding the overlapping areas of form based code and the H-2 district. It was noted in areas where the two overlap, form based code would take precedence. There was further discussion over changing an area of the H-2 to H-1 and corridor boundaries. Council asked for assurances that any changes to the overlay district would include a survey of properties within the proposed area. How to meet the committee's objectives was discussed. Guidelines that take proximity of different corridors to the H-1 into consideration were discussed. Form based code within the Crescent District and its applicability beyond the Crescent District was discussed. Using the design aspects of form based code in different districts inside and outside the bypass and the question of proffered design was debated. Consensus on the form based code was the Town needs to start small with respect to the area to which the form based code will apply. Mayor Umstattd expressed a strong opinion that there should be no expansion or change in the H-1 district boundaries out of concern for residents being captured into the BAR controlled area against their wishes. Mr. Wells stated he would be coming back to Council with a layout of major projects, issues and initiatives and how they fit in from a work plan standpoint. It was noted that approvals in the H-2 district cannot be made administratively until adequate guidelines are adopted. d. First Night/Bluemont Agreement Mr. Wells stated this proposed agreement would act allow the Town to act as an insurance policy for the program which would help First Night establish and maintain long term viability. He noted the proposed agreement incorporates Council comments including a cap on losses and repayment of a line item in the budget. Council made various suggestions to increase the viability of First Night and reduce expenses. Mr. Wells noted specific recommendations have been made to steer the program in a way to make it more attractive to a larger range of age groups. He added the involvement of the Town may not be needed indefinitely. Council asked for stronger language to ensure the Town is reimbursed for their investment, has oversight into the programming of the event and also receives a seat on the Board. Town Council Work Session of June 22, 2009 Page 6 2. Additions to Future Council Meetings Council Member Reid stated he was concerned about the prioritization of Zoning Ordinance amendments and asked that the Tree Ordinance, BAR appeals and BAR permit duration be moved ahead. Mr. Wells noted the long term list of projects will be part of the next agenda. Council Member Dunn stated he wanted to bring up the Coffee with Council concept. He stated he would bring this up during Old Business tomorrow night. Mayor Umstattd stated she would like to nominate Maggie Steinhilper to the Commission on Public Art at an upcoming meeting. Adjournment On a motion by Vice Mayor Hammier, seconded by Council Member Wright, the meeting was adjourned at 10:50 p.m. ~b€/:Po~ 2009_tcwsmin0622