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
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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.
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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