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HomeMy Public PortalAbout2012_03_13_R028 Intent to Use Long Range Financial Planning MethodsThe Town of Virginia RESOLUTION NO. 2012 -028 PRESENTED: March 13.2012 ADOPTED: March 13, 2012 A RESOLUTION: MEMORIALIZING INTENT OF TOWN COUNCIL TO USE LONG- TERM FINANCIAL PLANNING METHODS TO MEET FISCAL POLICIES AND REDUCE IMPACT ON REAL ESTATE TAX RATES WHEREAS, the local economy is continuing a slow, extended recovery providing very modest revenue growth; and WHEREAS, The Town Council intends to continue to provide quality town -wide services at current levels; and WHEREAS, The Town Council has directed the Town Manager to continue identifying ways to streamline operations and services to gain greater efficiency and reduce costs; and WHEREAS, The Town Council has acknowledged and implemented in significant part a long -term financial plan prepared by financial advisors Davenport & Company ( "Davenport Plan") in February of 2011 to meet general and capital spending requirements, which included significant staff reductions and restructuring long -term debt; and WHEREAS, The resulting General Government long -term debt service schedule includes payments in years FY 2017 through FY 2023 that are significantly higher than those of the prior and subsequent years; and WHEREAS, The Davenport Plan includes the likelihood of future real estate tax rate adjustments to address increasing debt service payments in FY 2017; and WHEREAS, The Davenport Plan envisioned the establishment of a debt service reserve funded in large part from unassigned fund balances in excess of the Council's fiscal policy requirement of 15% to address increased debt service payments; and -2- A RESOLUTION: MEMORIALIZING INTENT OF TOWN COUNCIL TO USE LONG- TERM FINANCIAL PLANNING METHODS TO MEET FISCAL POLICIES AND REDUCE IMPACT ON REAL ESTATE TAX RATES WHEREAS, The Davenport Plan assumes limited additions to future Town capital improvements programs; and WHEREAS, development strategies are required for the upcoming FY 14 /FY 15 biennial budget which will reduce the long term impact on real estate taxes in FY 2017; THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. That the Town Council reaffirms its commitment to meeting all fiscal policies for general government operating and capital improvements program budgets. SECTION II. That the Town Council reaffirms its commitment to adequately funding debt service and capital asset replacement reserves. SECTION III. That the Town Council recognizes any significant additions to future operating or capital budgets will need to be offset by equivalent expenditure reductions, revenue increases, or a combination thereof to adequately ameliorate the long -term impact on real estate taxes. SECTION IV. That the Town Council anticipates annually reviewing and revising when necessary a 15 -year pro forma so as to be able to meet its fiscal policies in future years including, but not limited to, the requirement that current revenue equals or exceeds current expenditures and the requirement that unassigned fund balances exceed 15% of governmental expenditures. -3- A RESOLUTION: MEMORIALIZING INTENT OF TOWN COUNCIL TO USE LONG- TERM FINANCIAL PLANNING METHODS TO MEET FISCAL POLICIES AND REDUCE IMPACT ON REAL ESTATE TAX RATES SECTION V. That the Town Council develops a multi -year plan to set aside sufficient funds in the Debt Service Reserve to minimize any impact of higher debt service payments on provision of Town services or stability of Town tax rates. SECTION VI. That the Town Council direct the Town Manager to implement, or recommend (as required), on an on -going basis, operational and programmatic improvements to Town operations that will reduce, at least proportionally, the shortage currently projected in the debt service reserve over the next four fiscal years. PASSED this 13th day of March, 2012. mstattd, Mayor Town of Leesburg AT S Clerk of AaO P:\Resolutions\2012 \0313 Future Fiscal Practices.doc