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HomeMy Public PortalAbout2015_tcwsmin0126 Council Work Session January 26, 2015 Council Chambers, 25 West Market Street, 7:30 p.m. Mayor Kristen C. Umstattd > p Y presiding. Council Members Present: Kelly Burk, David Butler, Thomas Dunn, Suzanne D. Fox, Katie Sheldon Hammler, Marty Martinez and Mayor Umstattd. Council Members Absent: All present Staff Present: Town Manager Kaj Dentler, Deputy Town Manager Keith Markel, Director of Public Works Tom Mason, Director of Capital Projects Renee LaFollette, Assistant Town Manager Scott Parker, Senior Management Analyst Lisa Haley, Senior Management Analyst Jason Cournoyer, Controller Eileen Nguyen, and Clerk of Council Lee Ann Green. AGENDA ITEMS 1. Work Session Items for Discussion a. Annual Financial Overview David Rose, Davenport and Company, gave an overview of the town's financial status. Key Points: • Town is in a sound financial position and continuing on the road to a triple AAA rating from all three rating agencies. • $25 million bond issuance in the summer of 2014. • Fitch affirmed the town's AA+, which is one step from AAA. • Moody's affirmed with a AA1 with a positive outlook, which means over the next 18-36 with continuance of current management practices, a AAA rating can be expected. • Standard and Poors rated the town AAA. • Advising an increase in the fiscal reserve from 15% to 20% in an incremental basis. • Permission to proceed with a public hearing as the first step in an issuance of$5.5 million in general obligation bonds to replenish the Capital Projects budget. • An additional $3 million in bonds will accelerate some capital projects. • Interest rates are favorable at this time for refinancing. • The same bonds are not being refinanced over and over—each set of bonds finance a specific set of capital projects. • Not including staff time costs in the cost of a project effectively under capitalizes the project. Council Comments/Questions: • When is the breakeven point? Consultant answer: You are saving almost 10%, so it would be a very short period of time. 1 Page Council Work Session January 26, 2015 • How often does the town refinance? Consultant answer: Every year the town's obligations are reconsidered and as long a interest rates continue to fall, it is possible to continue to draw down the overall cost of the money. • Does not extend the length of the debt,just refinances the interest rate. Call date does not change. • Would not be fiscally responsible to continue to pay the higher interest. • What happens if the rates move up prior to refinancing? Consultant answer: The refinancing would not continue if interests rates rise to the point where there is not a 3% difference in interest rates. • The town is borrowing the money to construct Hope Parkway, but will be reimbursed by the state and the developer. • The town will need to borrow $50 million? Consultant answer: Approximately $11 million is new money and the remainder is refinancing to achieve lower interest rates. • Does this include Capital Projects salaries? Staff answer: It includes Capital Projects management costs. Capital fund was created to pay for all costs associated with Capital Projects. It could be paid out of the General Fund, but putting it into the General Fund, it will create pressure on the tax rate. Capital Projects staff is an expense created by the project. • This is the first time the town will borrow money to pay for Capital Projects staff? Staff answer: Previously, bond money was used from the pot of bond money; however, it was never reflected on the cost sheets. • Concerned that raising the undesignated fund balance to 20% will be difficult as increases in home values are leveling off. • The town is currently at 22.59% undesignated fund balance—this will change the policy to memorialize it. It guarantees it to the rating companies. • Will the town reduce its debt load by paying down debt more quickly with the savings? Consultant answer: The savings are spread out over a period of 15-20 years, not achieved in a lump sum at the present time. • How do oil prices relate to the budget outlook? Staff answer: Do not know what the full-year effect will be until we get further down the road. It is helpful on the expenses side in the General Fund, but does not impact Capital Project decisions very much because oil is a very small percentage of the cost. • What are the accelerated projects that will require $3 million? Staff answer: The way the capital plan was put together with the thought that the town would not need to go back to the bond market until 2017. With the acceleration of some projects that have previously completed, other projects have been able to move up. This would 21Page Council Work Session January 26, 2015 include the Downtown Improvements, TMDL improvements, P � p Tuscarora Creek, Battlefield to Rt. 15, and Hope Parkway. b. Monthly Financial Report Director of Finance, Clark Case, presented the new format of the financial report. He stated that key pieces of information would be provided. Key Points: • In the future, this monthly report will be in your packets. • Most of the money that the Town has in investments is restricted to certain purposes, such as the OPEB trust fund, bond proceeds, proffers, and gas taxes. • Utilities Fund has money that can only be used for utilities operating costs and expenses. • Personal property tax billings appear to be down because of the decision to move billing to April and not to pro-rate. • Eileen Nguyen, Controller, was integral into making the report more user friendly. Council Comments/Questions • What is the difference in utility fund numbers from last year? Staff answer: There could have been more breaks that needed to be fixed or there could be changes in staffing, such as vacancies. Staff will report back. • What is the forecast as to what is expected at this time? Staff answer: In terms of debt service, most interest payments are made on the debt on December 1 and principal and interest on June 1. • How is the town doing on collections? Staff answer: We have made great progress in pursuing collections having dedicated one FTE to collections. Cooperation between the Finance Department and the Attorney's office has also been very helpful. • What causes the lag between collection of sales tax and receipt? Staff answer: Businesses collect sales tax and then file taxes with the state. The state processes the returns and reallocates the appropriate money back to the counties who then in turn reallocate to cities and towns. • Would like to address ways that localities can get their sales tax dollars from the state faster. • Would suggest an explanation when the numbers are significantly different between years. c. Noise Ordinance Council Member Butler stated this is his presentation based on a number of concerns over the current sound ordinance. 3 ' Page Council Work Session January 26, 2015 Key Points: • The intent is not to allow louder music. • Current "plainly audible" ordinance has definite drawbacks. • Very limited inclusion of commercial property. • Currently, initial violation is a class II misdemeanor. • Definition of noise as being a sound that annoys you is very subjective. • Proposed ordinance is based on decibel readings with one limit for day hours and one limit for night hours. • No distinction between residential and commercial properties. • Provision to prohibit extreme injury-causing sound. • Similar to Arlington's ordinance. • 70 DbA will not be much different than "plainly audible", but will give a consistent method of measurement. DbC will capture bass tones. • Tiered violation levels. • Possibility of permits for exceptions to the ordinance. • Proposed exceptions for things like fire alarms, ambulances, illegal use of firearms, snow removal equipment, and church bells. Government exceptions for day time activities. • Request public hearing in February to get feedback from residents. • Permit guidelines would need to be clarified. Council Comments/Questions: • School sporting events in the evenings would need to be excepted. • Confusing that daytime goes until 11 p.m. • All properties will be subject to the same levels and time limitations. • Would like the "plainly audible" standard to be in place after the time limitation is passed. • Would like to have input from the public and to know more about the aspects of enforcement. • Could think about a task force that could review and make recommendations for improvements. • Decibels are more objective than "plainly audible", but would lean towards a lower decibel level and permit approval/denial based on violations of the sound ordinance. • Ordinance should consider the effect of sustained noise. • Even 65 decibels does not allow comfortable conversation— 55 at the property line would be more appropriate for a decibel based ordinance • Citizens should have a right to sit in their yards at the property line and not be adversely impacted by sound coming from neighboring properties. • Would like Council's questions/comments to be addressed at the public hearing. There was support for scheduling a public hearing. 41Page Council Work Session January 26, 2015 d. Legislative Update Keith Markel reviewed key legislation based on the Council's previously approved Legislative Agenda. Key Points: • SB82, Dooring Legislation made it out of committee with only minor edits—will go before the full senate for action. • SB921, NVTA distribution to towns was referred out to committee. This would bypass the county's NVTA funding distribution mechanism. The 30% funding would go right to towns. • SB1033, NVTA town voting rights was referred to the committee on rules. The rules committee does not have a scheduled meeting date, so this might be a way to put it aside. Language in the current bill does not match what the town requested. • SB , Drones. Senator Wexton felt this was not the appropriate time to move forward with drone legislation because there are too many variables at the federal level. • HB1688, Fines and Fees proposed by Del. Minchew has been referred to the subcommittee on general government and capital outlay. This would streamline how the town receives funds based on fines written through town law enforcement action. • HB1294, Tax and fee exemptions for churches and other nonprofits. Would make it so that localities could not charge churches and other similar organizations for water and sewer usage, availability/connection fees, etc. Would have major financial impacts on localities. • HB1246, has been referred to community transportation. The police department felt would be appropriate to follow, if not support. It would regulate the amount of idle time for vehicles with a gross vehicle rating of 7500 pounds. These are larger pick up trucks and up. Staff will ask that the language be amended to add towns. • Council was reminded that VML Day is Wednesday. Council Comments/Questions: • It was some of Council's recollection that the fines and fees had been resolved, but it appears to not have been resolved. • Council expressed support (6-1) to add HB1246. • The 7500 pound limit gets into personal vehicles—and seems like a backdoor way to get at high gas use vehicles. • What is the average weight for personal use vehicles? Staff answer: 7500 pounds is around the larger pick up trucks such as a F250. It would impact small contractor vehicles. Construction activities is excluded from the legislation. • Does the bill concerning fees for churches specifically call out availability fees? 51Page Council Work Session January 26, 2015 Staff answer: Yes and it also includes storm water regulation fees. The bill's language will be emailed to Council. • There will be about 350 at the VML reception. The governor, the lieutenant governor and five cabinet secretaries will be in attendance. e. County Funding Opportunities Kaj Dentler asked for Council direction. Council Comments/Questions: • How much does the town pay to the County? Staff answer: Approximately 10% of the revenue collected from the county is comprised of town Real Property Tax payments— approximately$74 million. • What is the dollar amount for shared services? Use that number as a justification for getting some of those funds back. Staff answer: The skate park is a $500,000-600,000 CIP project, Fire and Rescue is over$600,000 annually. Other figures will have to be obtained. • How much does the town pay towards the Mason Enterprise Center?It should be paid for by the county or turned over to George Mason. Staff answer: The town holds the lease and pays the difference between what the tenants pay and what the lease amount is as well as for custodial and technology services. Approximately$75,000. • Could ask the county to pay for all bus service. Staff answer: At the time the agreement for bus service was made with the county, the county indicated that the part the town pays for is unique to Leesburg and would not be covered by the County. • Could ask the county to fund Leesburg CIP projects since the county does drainage and transportation projects in other parts of the county. Would see if they would take back the operations of Balch Library. • The more Sheriff's support that could be obtained for calls in town would relieve some of the pressure to add additional police officers. • Town residents receive a net benefit in the area of education— approximately$40 million. • Need to know what services that the town receives from the County, such as dump fees, IT services, planning, etc. • Balance requests against what is already being received. • It is incumbent upon the Council to at least ask. • Previous town manager advised that the town would lose more than it would gain by pursuing this. • Leesburg residents do pay too much towards public safety (police/fire and rescue) so these would be appropriate places to locate savings. • If the town goes in demanding more services, it may cause alienation and resultant problems. 6IPage Council Work Session January 26, 2015 • Leesburg receives more services than any of the other towns and needs the support from the county for some programs. • Would recommend studying this further—possibly have town staff discuss with county staff. Staff answer: Public safety contributions can be discussed between town and county staff. • Would encourage adding other items for discussion—not just public safety. Need good data for discussion. 2. Additions to Future Council Meetings Vice Mayor Burk stated that she and Council Member Hammier have written a draft resolution regarding Tuscarora Crossing. She stated it is very important that Council make it clear to the Board what they want. Council Member Hammier added that it also asks for elimination of power plant and heavy industrial uses in the JLMA. There was support to have this on the agenda for Tuesday night action. Council Member Martinez had no requests. Council Member Fox had no requests. Council Member Hammier requested a work session item to consider the possibility of allowing food trucks in certain areas of town. There was support for having a work session discussion on this subject. Council Member Butler stated he would like to make several adjustments to the Rules of Procedure. There was support for having a work session discussion and then a public hearing two weeks later to change the Rules of Procedure. Council Member Dunn requested that Council consider sending his letter with the resolution or in lieu of the resolution on Tuscarora Crossing. He stated the resolution is too detailed. There was not support for this. He asked for a draft letter to be sent to the Board of Supervisors regarding the animal shelter site location. There was support to have a draft letter presented for Council action Tuesday night. He requested a discussion on non-disclosure agreements and closed session issues. He questioned whether there is the capability of showing a split screen with power points on one side and the speaker on the other side. 3. Adjournment On a motion by Council Member Hammier, seconded by Mayor Umstattd, the meeting was adjourned at 10:55 p.m. tA. 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