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HomeMy Public PortalAbout2024_tcmin0213COUNCIL MEETING February 13, 2024 1 1 1 Council Chamber, 25 West Market Street, 7:00 p.m. Mayor Kelly Burk presiding. Council Members Present: Todd Cimino -Johnson, Zach Cummings, Kari Nacy, Vice Mayor Neil Steinberg, Patrick Wilt and Mayor Kelly Burk. Council Members Absent: Ara Bagdasarian. Staff Present: Town Manager Kaj Dentler, Town Attorney Christopher Spera, Deputy Town Manager Keith Markel, Director of Finance and Administrative Services Clark Case, Director of Public Works and Capital Projects Renee LaFollette, Director of Parks and Recreation Rich Williams, Leesburg Police Chief Thea Pirnat, Director of Utilities Amy Wyks, Assistant Town Manager Kate Trask, Director of Economic Development Russell Seymour, Deputy Director of Finance and Administrative Services Lisa Haley, Management and Budget Officer Cole Fazenbaker, Deputy Management and Budget Officer Tamara Keesecker, Management and Budget Analyst Liz Weaver and Clerk of Council Eileen Boeing AGENDA ITEMS 1. CALL TO ORDER 2. INVOCATION was given by Council Member Wilt. 3. SALUTE TO THE FLAG was led by Mayor Burk. 4. ROLL CALL a. Council Member Bagdasarian absent. 5. MINUTES a. Work Session Minutes of January 22, 2024 MOTION2024-017 On a motion by Vice Mayor Steinberg, seconded by Council Member Nacy, the January 22, 2024, Work Session minutes were moved for approval. The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasarian absent) b. Regular Session Minutes of January 23. 2024 MOTION2024-018 On a motion by Council Member Nacy, seconded by Council Member Cummings, the January 23, 2024, Regular Session minutes were moved for approval. 1 1 Page COUNCIL MEETING February 13, 2024 The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasarian absent) 6. ADOPTING THE MEETING AGENDA MOTION2024-019 On a motion by Council Member Nacy, seconded by Council Member Cummings, the meeting agenda was moved for approval. The motion was approved by the following vote to approve the amended agenda: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 7. CERTIFICATES OF RECOGNITION a. None. 8. PRESENTATION OF PROCLAMATIONS a. Outstanding Service to the Friends of Balls Bluff 1 1 MOTION2024-020 On a motion by Vice Mayor Steinberg, seconded by Council Member Nacy, the following was proposed:: I move to approve the Proclamation to Patrick Mountain for Outstanding Service to the Friends of Ball's Bluff be proclaimed at the February 13, 2024, Town Council Meeting. The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasari an absent) b. Outstanding Service to the Friends of Balls Bluff MOTION2024-021 On a motion by Council Member Nacy, seconded by Cummings, the following was proposed: I move to approve the Proclamation to Tom Hutt for Outstanding Service to the Friends of Ball's Bluff be proclaimed at the February 13, 2024, Town Council Meeting. 21 Page COUNCIL MEETING February 13, 2024 The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasarian absent) 9. PRESENTATIONS a. Town Manager Fiscal Year 2025 Proposed Budget Town Manager Kaj Dentler presented the proposed Fiscal Year 2025 Budget. Mr. Dentler gave an overview of the following: • General Fund key base budget adjustments to include new leases for office space and mobile air traffic control tower, personnel adjustments for a 4% average pay -for - performance increase, 3% cost -of -living adjustment and a health insurance increase that will be covered by reserves in the self-insurance fund. • General Fund key enhancements to include a $30K contribution to the Leesburg Movement and $88,500 to establish a school zone speed camera enforcement program. • Capital Asset Replacements to include an increase in recurring funding for the CARP to $3M, $500K for replacing the Council Chamber AV system and department requests for motor vehicle/equipment/apparatus, facilities and technology assets totaling just over $3M. Mr. Dentler proposed maintaining the current real estate tax rate at 17.74 per $100 of assessed value noting that the equalized tax rate is 16.9R per $100 of assessed value but added that if an equalized tax rate was adopted, approximately $908K must be eliminated from the proposed budget. Council and staff briefly discussed the proposed budget. Mr. Dentler added that Council had on its current agenda an action item to adopt the schedule for additional budget review sessions and the timeline for the formal adoption of the final budget. 10. REGIONAL COMMISSION REPORTS a. None. 11. PETITIONERS The Petitioner's Section opened at 7:35 p.m. There were no Petitioners wishing to address Council. The Petitioner's Section closed at 7:36 p.m. 3 1 Page COUNCIL MEETING February 13, 2024 1 1 1 12. APPROVAL OF THE CONSENT AGENDA MOTION2024-022 On a motion by Vice Mayor Steinberg, seconded by Council Member Nacy, the following consent agenda was proposed: a. Acceptance and Appropriation of Funds from Loudoun County's American Rescue Plan Act (ARPA) Tourism Grant Program RESOLUTION2024-016 Acceptance and Appropriation of $12,760 Grant Funds Awarded to the Town of Leesburg from Loudoun County's American Recovery Plan Act Tourism Grant Program b. Town Hall Art Exhibit by Gary Murray RESOLUTION2024-017 Approval of Town Hall Art Exhibit by Gary Murray c. Authorizing an Offer to Acquire Right-ofWay Dedications and Easements for the Evergreen Mill Road Widening Project RESOLUTION2024-018 Authorizing an Offer to Acquire Right-ofWay Dedications and Easements for the Evergreen Mill Road Widening Project d. Easement. Right -of -Way and Nuisance Ordinance Grounds Maintenance RESOLUTION2024-019 Award a Contract for Easement, Right-ofWay and Nuisance Ordinance Grounds Maintenance to BrightView Landscape Services, Inc. e. Vacation of Existing Reclaimed Waterline Easement within Area of Public Street Dedication for Crosstrail Boulevard RESOLUTION2024-020 Authorizing the Vacation of a Portion ofReclaimed Waterline Easement Located within Crosstrail Boulevard f. Awarding Contracts for Water and Wastewater Treatment Chemicals RESOLUTION2024-021 Awarding Contracts for Water and Wastewater Treatment Chemicals to Brenntag Mid -South, Inc., Chemrite, Inc., Colonial Chemical Solutions, Inc., George S. Coyne Chemical Co., Inc., Kemira Water Solutions, Inc., Kuehne Chemical Co., Inc., PVS Chemical Solutions, Inc., PVS Technologies, Inc., Shannon Chemical Corporation, and Univar Solutions USA, Inc. 41 Page COUNCIL MEETING February 13, 2024 1 1 g. Supplemental Appropriation from the Electronic Summons Reserve RESOLUTION2024-022 Approving a Supplemental Appropriation in the amount of $67,000 from the Electronic Summons Reserve to Purchase Mobile Data Terminals by the Leesburg Police Department h. Historical Highway Marker —1902 Lynching of Charles Craven RESOLUTION2024-023 For Installation and Maintenance of a Historical Highway Marker Near the Site where Charles Craven was Lynched in 1902 i. Appointment to the Parks and Recreation Commission — Ryley Trahan RESOLUTION2024-024 Appointing Ryley Trahan to the Parks and Recreation Commission The Consent Agenda was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasari an absent) 13. RESOLUTIONS /ORDINANCES / MOTIONS a. Appointment to the Parks and Recreation Commission Only one nomination was received from Mayor Burk to fill this vacancy. MOTION2024-023 On a motion by Council Member Nag, seconded by Council Member Cimino - Johnson, the following was proposed:: RESOLUTION2024-025 Appointing M Alex Richardson to the Parks and Recreation Commission The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasarian absent) b. Fiscal Year 2025 Budget Review and Adoption Schedule Mr. Dentler noted during his budget presentation that several Council Members indicated a conflict with the second set of meetings in March as the meeting dates coincide with Loudoun County Public School's spring break for students. Council agreed to amend the proposed resolution to move the second set of meetings in March from March 25/26 to March 18/19. The Budget. Review and Adoption Schedule was adjusted accordingly. 5 1 Page COUNCIL MEETING February 13, 2024 Council will formally approve the change to the adopted 2024 Council Meeting calendar at its February 27, 2024, Council meeting. MOTION2024-024 On a motion by Council Member Nacy, seconded by Council Member Cimino - Johnson, the following was proposed:: RESOLUTION2024-026 Fiscal Year 2025 Budget Review and Adoption Schedule The motion was approved by the following vote: Aye: Cimino -Johnson, Cummings, Nacy, Vice Mayor Steinberg, Wilt and Mayor Burk Nay: None Vote: 6-0-1 (Bagdasari an absent) 14. PUBLIC HEARINGS a. None. 15. UNFINISHED BUSINESS a. None. 1 1 16. NEW BUSINESS a. None. 17. COUNCIL DISCLOSURES AND COMMENTS / ADDITIONS TO FUTURE MEETINGS Council Member Cummings disclosed he met with Ms. Molly Novotny, Ms. Colleen Gillis, a representative from Kettler and a representative from Stack to discuss the project at Virginia Village Land Bays D & E. 18. MAYOR DISCLOSURES AND COMMENTS / ADDITIONS TO FUTURE MEETINGS Mayor Burk recapped her recent interactions with the local Girl Scouts and Boy Scouts. She noted the Boy Scouts came on several different days to learn about local government and the Girl Scouts visited to share cookies and promote the Girl Scout Cookie Drive. Mayor Burk provided a summary of Council's recent legislative lobbying activities in Richmond including addressing changes being proposed that will reduce or eliminate the Town's authority on certain zoning regulations. Mayor Burk added that she also spoke to a Senate Sub -committee in opposition to two of the zoning bills. Mayor Burk provided an update on Delegate Martinez's bill to return money collected for the bag tax to the locality where the tax was collected. Mayor Burk and Vice Mayor Steinberg attended a meeting with the residents of Ball's Bluff. They voiced concerns that the communication on the park project has not been sufficient and asked that the Town increase awareness and communication for the project. Mayor Burk wished everyone a happy Mardi Gras. 6 1 Page COUNCIL MEETING February 13, 2024 1 1 19. TOWN MANAGER COMMENTS a. None. 20. ADJOURNMENT On a motion by Council Member Nacy, seconded by Council Member Cummings, the meeting was adjourned at 7:44 p.m. ATTEST: Clerk of Council 2024tcmin0213 y B , Mayor Town of Leesburg 71 Page February 13, 2024 — Leesburg Town Council Meeting (Note: This is a transcript prepared by a Town contractor based on the video of the meeting. It may not be entirely accurate. For greater accuracy, we encourage you to review the video of the meeting that is on the Town's Web site — www.leesburgva.gov or refer to the approved Council meeting minutes. Council meeting videos are retained for three calendar years after a meeting per Library of Virginia Records Retention guidelines.) Mayor Kelly Burk: If anyone in the room needs hearing assistance, please see the Clerk. Council Member Wilt will be giving the invocation followed by, I will do the Pledge of Allegiance. Council Member Wilt? Council Member Patrick Wilt: Thank you. Dear God, we come to you today asking for your guidance, wisdom, and support as we begin this meeting. Help us to engage in meaningful discussions. Allow us to grow closer as a group and to nurture the bonds of community. Thank you. Mayor Burk: Please join me in standing All: I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Mayor Burk: All right. Let the rolls reflect that all Council Members are here with the exception of Council Member Bagdasarian. No one is going to participate remotely. We have two sets of minutes, the Work Session minutes of January 22"d. Do I have a motion? Vice Mayor Neil Steinberg: So moved. Mayor Burk: Moved by Vice Mayor. Seconded by Council Member Nacy. All in favor? Members: Aye. Mayor Burk: Opposed? That is 6-0-1. Regular Session minutes of January 23rd. Motion? Council Member Kari Nacy: So moved. Mayor Burk: So moved by Council Member Nacy. Second? Council Member Zach Cummings: Second. Mayor Burk: Council Member Cummings. All in favor indicate by saying. Members: Aye. Mayor Burk: Opposed? That passes 6-0-1. Do I have a motion to adopt the agenda for tonight? Council Member Nacy: So moved. Mayor Burk: Okay. Moved by Council Member Nacy. Second? Council Member Cummings: Second. Mayor Burk: Council Member Cummings. Is there any additions or deletions that would like to be added tonight? None. All in favor indicate by saying aye. Members: Aye. Mayor Burk: Opposed? That passes 6-0-1. We have two proclamations for tonight and I will need a motion for them, but let me read them out. The gentlemen are not here to accept them. I will be taking them to the Friends of Balls Bluff dinner this weekend. The first one is a proclamation of outstanding 1 February 13, 2024 service to the Friends of Balls Bluff. Whereas Patrick Mountain's spirit of volunteerism is a model for others to follow. His continued dedication to the Friends of Balls Bluff, and to the Northern Virginia Regional Park Authority is in support of the Balls Bluff Battlefield Regional Park sets this example. Whereas Patrick is one of the go -to volunteers who responds immediately to requests for help when the needs arise. Whereas Patrick has served as the past president and the board members of the Friends of the Balls Bluff board, and served on many of its committee. Patrick serves as a battlefield guide, a mentor and a trainer for potential guides. Whereas Patrick has made an enormous contribution to the appearance and attractiveness of Balls Bluff Battlefield Regional Park by leading the monthly maintenance day and after bad weather on the battlefield. Patrick is instrumental in setting up and participating in the yearly anniversary dedication program. Whereas Patrick has contributed over 122 hours of service this year to various programs for the Friends of Balls Bluff. Therefore, the Mayor of the Town of Leesburg, I hereby present this proclamation to Patrick Mountain for his outstanding service to the Friends of Balls Bluff, do I have a motion to accept that? Vice Mayor Steinberg: So moved. Mayor Burk: So moved by Vice Mayor. Council Member Nacy: Second. Council Member Todd Cimino -Johnson: Second. Mayor Burk: Seconded by Council Member Nacy, Cimino -Johnson. [laughter] All in favor indicate by saying, aye. Members: Aye. Mayor Burk: Opposed? That passes 6-0-1. The next proclamation is also for the friends of Tom of Balls Bluff. This is whereas Tom Hutt's spirit of volunteerism is a model for others to follow. His dedication to the Friends of Balls Bluff and the Northern Virginia Regional Park Authority in support of the Balls Bluff Battlefield Regional Park are outstanding. Whereas Tom has served on the Friends of Balls Bluff board, he continues to play an important role in the following committees: The Cannon Crew, the Volunteer Park Maintenance Crew, the Anniversary Battle Dedication Ceremony, and Battlefield Guide Program. Whereas Tom serves as a major administrator of the Friends of Balls Bluff Essay Contest that began in 1917. I wonder if that's correct. 1917, they've been doing this? Wow. Along with other members of the Friends of Balls Bluff, he has engaged in over 600 fourth -grade students at Balls Bluff Elementary School in the study and importance of the battle. Whereas Tom at his own expense uses his personal trailer to transport the Cannons Crew to the annual Leesburg 4th of July Memorial Parade. He uses his personal ATV to transport equipment and malts during the scheduled monthly maintenance day. Whereas in 2023, Tom has committed 114 hours to the various programs of the Friends of Balls Bluff. Therefore, the Mayor of the Town of Leesburg. I hereby present this proclamation. I will be to Tom Huff for Outstanding Service. Do I have a motion for that one? Council Member Nacy: So moved. Mayor Burk: So moved on Ms. Nacy. Second? Council Member Cummings: Second. Mayor Burk: Second by Council Member Cummings. All in favor indicate by saying, aye. Members: Aye. Mayor Burk: Opposed? That passes 6-0-1. We have a presentation tonight of the Town Manager's 2IFebruary 13, 2024 Fiscal Year 2025 Proposed Budget, he has asked for —there you are -30 minutes. Anybody have any problem with that? Vice Mayor Steinberg: I have no problem. Mayor Burk: All right. The floor is yours. Kaj Dentler: Okay. Thank you. Good evening, Madam Mayor, Vice Mayor, Members of Council, it's a pleasure to be here tonight to present the proposed budget for Fiscal Year of 2025, which includes our general fund, utilities fund, and six -year capital improvements program. The highlights or the backstory of this proposed budget is presenting. It's a lean budget. It's intended to focus on our ability to control the growth of the budget, not worry so much about expanding the budget, focus on what we're doing and do that well at this time. There will be future conversations that we need to address on other needs. At this time, the focus on just controlling it, lean budget, modest revenue forecast, et cetera. The good news is our backdrop is we have a very strong financial portfolio anchored by our triple -AAA rating. We have Council's wisdom over the years. You have approved strategic reserves, our debt reserve, revenue stabilization, self- insurance fund, and all of those things help us at this time. Sometimes we get questioned of why we're replacing reserves aside, but you're doing that for a rainy day. We're not in a rainy -day situation, but we're able to tap into these and help us through this lean challenging time that we have. The proposed budget focuses on investments in our Capital Improvement Program, our Workforce, and our Capital Asset Replacement Program. Lastly, the proposed budget does not recommend a tax increase on the real estate. Overview of the budget is $157 million total. The General fund is proposed to go from $78.3 million to $81.5 million. Over the last several months you've discussed the utilities fund, and the proposed budget of $31.1 million is consistent with all of your discussions and decisions with the rate increases, et cetera. Where do our tax dollars go? 74% of that dollar goes to the areas you would expect it to go to. Why we are a Town and why we as residents are willing to pay double taxes in reality, police, public works, which is our trash collection, snow removal, leaf collection, capital projects, our parks and recreation services, our library. In terms of our base budget and the challenges that we are dealing with as we put the budget together right off the bat, over the last 12 months we've approved three leases. Two office space leases as we've grown out of space in this building. Public Works has relocated out of this building and gone to Fort Evans Plaza II, with the news of possibly Trader Joe's going to that location. Those employees are much happier than they were before they left. Then we've also have leased out space on Catoctin Circle for our community development department, which will relocate out of this building probably in April or May. The third lease is the air traffic control. Our mobile tower, the FAA, made a decision to discontinue our remote tower operation. We had to lease space on the ground by bringing, in essence a trailer to operate. Those three leases add up to almost $380,000. The proposed budget also has an investment of about $300,000 for stormwater management. As we discussed last night, significant need complexities of the regulations continue to grow, get more complex and challenging. There's money put aside there to help us with our collection, our GIS data system, our inspections. On the personnel side, a 4% average pay for performance for employees is proposed. Employees can earn up to 5%. 4% is the average. We also have proposed a 3% COLA. Ironically today the CPI index for their region indicated 3.6. We're very comfortable with that recommendation of 3%. For the first time in eight years, our health insurance costs are going up 10%. The budget recommends 9.6%, and today, the budget team received news that it's actually 10% on the nose. That is shared based on by the employee and the Town. Depending upon the category that you're in, the Town pays a certain share, the employee pays a certain share, but across the board, it'll be 10%. Again, the first time in eight years that we've had any increase in our health insurance. As I mentioned previously, one of our reserves that we have set aside is our self-insurance fund. This allows us to soften that blow impact to our general fund. 3IFebruary 13, 2024 In terms of enhancements, very lean. Only two enhancements that are proposed within the general fund. One is a $30,000 contribution to the Leesburg Movement. Council has initiated the Virginia Main Street program. This is to support part-time salaries in order to move that project along. Ultimately, we anticipate that the Main Street program will have a full-time coordinator. Whether the Town pays that bill or not, that's the decision to be made at another day. The second item is a school zone speed cameras. The Police Chief presented to you a few months ago this proposal. Council endorsed moving forward. They will identify two zones to implement it as in essence the pilot program is $88,000 to implement, and then revenues will come in. A little hard to project the revenues because we anticipate that the cameras will ultimately change driver behavior, but we do have that built into the program as well. In terms of capital asset replacement program. Let me make sure that you understand what this is, and I've used example for some of you. When I started in 1996 as the Parks and Recreation Director, I was trying to get the parking lot paved at Ida Lee. I was told, "There's no money, you'll have to ask Council for it." I really couldn't believe the Town had no plan to anticipate changes, whether it's high vac system, parking lot, vehicles, whatever. We need to have a cycle. Over the years we've built that up. In this proposed budget is $3.5 million has been put aside for these things using lease financing. $500,000 of that $3.5 million is put aside to improve the audio-visual equipment and technology in your Council Chambers. That's an area that Council has discussed, we have discussed, our citizens discussed, our commissions. No one is happy with the current system, so I put money aside to address that. How do we pay for it and how do we make all of this work? First, we're going to take advantage of some budget savings I'll talk about here very briefly. There's things that are not included in the budget. I know oftentimes where statements are made that, "Hey, you haven't cut anything." You'll see that I've already cut a significant amount of things before this budget ever gets to you. The use of our reserves as I've already talked about, and then our revenues. Some savings that we're able to take advantage from day one. If you remember our trash contract when fuel prices were rising in their contract, it was a surcharge that we had to pay. We don't have that issue now as prices have somewhat stabilized. That saves us $100,000. In our insurance program, we're saving $86,000. In our OPEB benefits, $145,000. For those savings help us build this budget. In areas that I cut from the budget. Over the last 10 years, 'we have put in approximately $500,000 in engineering studies that are then used as a catalyst to decide do we move forward with the capital project or not. When we addressed the budget and then I made the final decision, I did not feel we could afford this at the tax rate that we're at, and some of the revenue challenges that we have, so taking basically $500,000 out. I do want to clarify that on the first one, the South King Street ramp access, this is part of the conversation that we held when the County was here and our engineering team, and we're asking the County to look at the entire area of that interchange while they're going to widen that project. I'm taking the $130,000 out. You can make a decision if you want to put it back in, but we're hoping ultimately the County will pick up that tab. The third one I want to mention is the Lawson Road pedestrian crossing. As you know, we did receive federal dollars to build a crossing over Lawson Road Bridge. This is not that. This is an enhancement to that to add, potentially study whether or not we wanted to add streetlights as an extension from that crossing to the W&OD. I just want to assure you and the public that the Lawson Road pedestrian crossing is moving forward regardless of any decision on this. In terms of other things that I cut or did not fund, the Directors requested, as you see here, $6.3 million that I did not put in the budget. We can all debate some of these things and are they important to us? Do we want to fund them or not? I know that information technology is very interested in Digital Town Hall and wanted to get it started at $200,000. I did not support that at this time because from my position, I don't feel we have enough information on what it's going to do, what's the full benefit to us, and what's the total cost. The $200,000 is a starting point, it's not an endpoint. The Police Chief presented to you, the 100 -day plan, talked a lot about what she felt needed to be in there. I did not include that in here. Then lastly —not lastly, but Public Works and Capital Projects third 4IFebruary 13, 2024 from the bottom, the GIS analyst, stormwater position, there's two of the things that we'll have to discuss in the future about our stormwater management program if we're going to be able to maintain and meet our obligations regulatory. The last thing to mention on this slide, boards and commissions, almost $23,000. There's no objection from me on any of these items, but my practice has been that that's your decision. These are your advisory board and commissions or boards and commissions, and they report to you. I've always felt like I'm just not going to put it in there. You can decide what you want to do and how to deal with that. Lastly, on this particular section, unfunded CARP, the Capital Asset Replacement Program, almost $2 million of items that I did not include in the budget. There's 3.5 million there, there's 2 more million that's been identified. Again, there's over $8 million that I did not, or actually probably $8.5 million that I cut before it ever got to this point. In terms of our revenue, this chart simply shows the diversity of our revenues. The largest components in top left corner are real estate taxes making up 25%. This chart may be different , next year based on certain decisions that are in front of us. We'll see how that plays out. At this time, I can only make the budget work with what's in front of me. I've mentioned that there's no change in the real estate tax rate. The current rate is 17.74. A penny now is valued at $1.1 million. Equalized rate is 16.95. If Council wanted to reduce and go to the equalized rate, we would need to cut $900,000 from the proposed budget. Now, there's other ways you could get there. You could increase fees, et cetera, but just so you understand, a starting point, you would have to identify $900,000 out of the budget that I've already laid in front of you. In terms of assessments and our real estate tax, assessments for residential is up 5%, commercial's up 7%. It is interesting that back in December, early January, it looked like assessments were 2% to 3% increase, and commercial was negative. That obviously has moved into this position that we're in today. That will yield us in net $600,000 because almost $400,000 will be taken out based on the financial assistance that we provide qualified employers. In terms of how that impacts my bill at home and the mortgage, this chart is all based on averages. Every individual home situation is a little different, but the average single-family home at average assessment at $739,000 in tax year 2023 now would be rising to $50 in essence annually, condos $29 annually, et cetera. Again, these are all averages and people will have to figure out for themselves how that directly impacts them. I've used this chart in the past and I usually always say the same thing, and I'll say it again, some people love this chart, some people hate this chart. I show this to you and I'll repeat my statement, Leesburg has an artificially low tax rate. We do this to ourselves, but we have a lean operation that we run. I am not advocating that we need to have a 26% tax rate by any means, but when you compare ourselves to Vienna, and Herndon, and Purcellville, we are well below the mark. Again, that's part of what makes the job harder to make things work. If we want to grow and do new services, and even the lane miles and the amount of stormwater that we have to do, we're going to have to address something either in this area of tax rate, or future revenues. Hopefully, we'll have that opportunity. Key revenues, transition to that. Our revenues are good. Everything in the green is positive. Our investments are good. Real estate tax have already identified a $600,000, meals tax grows modestly, our transient occupancy tax is growing, so we're returning to pre-COVID levels. The area that I want to make sure that you see is the one in red, sales and use taxes. This deals with the school -age population. As the County grows, the school -age population increases, their percentage grows. Our population remain the same, but our percentage goes down. Whether you buy your outfit or your TV in Leesburg or Sterling, the sales tax distribution is the same. Because the distribution, the percentage -wise we're dropping, we're projecting $850,000 less. That's an area that we have to watch. It will impact us based on the state formula for distribution of sales tax. In essence, balancing the budget, all this chart shows you is how we balance things out between revenues and expenditures. In terms of Capital Improvement Program, $308 million or 75 projects, 11 new ones. We've talked a lot about the utilities project. The Capital Improvement Program continues to grow and expand over time. That has an impact on our debt service, which has an impact on our general fund. In terms of new projects, this identifies those. The first one, Council wanted to consider 51February 13, 2024 a volleyball court at Ida Lee. This is one court out at the park, they're almost $200,000. The third item is storm drainage, almost $18 million dollars. This is the key area. This is why you're hearing more, and more, and more about stormwater management, the challenges that we're faced with. We will eventually have to identify some level of dedicated fee and revenue to support the storm drainage requirements that we have to make. We continue to invest at the airport. As we've talked over the last several months, investments at utilities. Other key projects that are already going on, the police station is underway, a $26 Million project. The Town Shop is under design to expand. As you know we bought the land, so we will be expanding that site that is well past use to be modern times. On streets and highways, everybody know road widening project is beginning. There's an item, I believe on your agenda tonight to authorize moving forward with land acquisition. Storm drainage projects, all tied to our MS4 Program, minus the Lawson Road pedestrian crossing. Our air traffic control tower. This is long-term project that we have. We're committed to making it happen. The FAA is working with us. Hopefully in a few years, five or six years max, we'll have an actual tower out there on site. This chart just simply tries to reinforce what I said is that CIP continues to grow. I remember years ago when John Wells was the Manager and I was the Deputy, we saw the number of projects going down, and we thought that would be the trend and then there'd be some leveling out. We were actually telling employees, you're not being laid off, but you might need to start thinking two or three years ahead because we don't know if we're going to have enough work. Well, that has proven to be a false forecast. As you can see on both charts, the amount of projects and the volume of dollars continues to rise, with the most being in streets and highways. There is no doubt that the Council has been committed to improving the transportation system in and around Leesburg. One enhancement, the only enhancement that is requested in the Capital Projects Fund is for another engineer, construction manager to help manage our projects. We only have one construction manager there. Helps do the estimates, helps manage the projects, et cetera, This is important for us to be able to meet the workload that's before us. I do want to remind Council that this is paid throughout the Capital Projects Fund. The only exception is if a staff member is not working directly on a project, if they're on leave, or they're in training it's charged to the general fund. That's a very minimal amount of time. In regards to utilities, as I said a couple of times, we've discussed the utilities fund for the last several months. I think you're pretty well -versed on it, but for the public's benefit, the proposed budget is almost $46 million or $31 million of that is operations. Council has approved the implementation of a five-year rate plan with a 4.1% rate increase, and you've approved moving forward with the staff positions. All of that is in the budget as you have already approved. Overall, in terms of capital projects, there are projects at the Water Pollution Control Plant as well as our Water Treatment Plant. Summarizing and beginning to bring this home. Again, the budget is lean, it has modest revenue projections. We have a very strong financial portfolio. We have our credit rating that is going to occur here in the next couple of weeks. I'm confident it will reconfirm or reaffirm our Triple -AAA rating. We are using strategically the reserves that have already been set aside for debt service, for self-insurance fund, and revenue stabilization to help us weather any challenges that we have. We are investing in our Capital Improvements Program, our workforce, in our capital asset replacement, and there's no change proposed for the real estate tax rate. This just summarizes the total budget again. Then finally, last couple of slides, outreach for the public to know what is the proposed budget, how do I get information. Press release will go out tonight. The information will be placed on the Web site. There's a section if you want to ask a question. Staff is always available to address questions. We will ask to meet with each Council Member to go into details of the budget, and however you want to relay information to your constituents we'll make sure we help you do that. Finally, the proposed schedule. This is also on your schedule for tonight. This is based on how you have operated it traditionally in the past. This does not have any Saturday Work Sessions. That's up to you if you want to add that. Try to take advantage of your current Work Sessions. The last two dates I want to bring to your attention because you'll need to decide when you get ready to vote here in a little bit. The week of March 25th is spring break for Loudoun County Public Schools. I already 6IFebruary 13, 2024 know that two Council Members are not planning to be here, possibly three. You may wish to move this date up one week and meet on the week of the 18th and 19th. Why do I say that? Because we have to get the budget approved by the end of March, and we have to turn in our tax rates to the County. Because if you remember, the County bills and collects on our behalf, and that is our deadline requirement. Moving it forward is not a problem for us, but I wanted to bring that to your attention. With that, that is the end of the presentation. How long did I go? Mayor Burk: Oh, pretty good. You made 25, 20. Kaj Dentler: Oh, good. I got extra time. Anyway, usually we don't take questions, but because you don't have a lot on your agenda it's up to you. If you want to ask questions, our team is here. I do want to complement our budget team, our financial team. This is our last budget that you'll be working with Clark Case, our Director of Finance Administrative Services, as he - Mayor Burk: Aah, he's leaving. Kaj Dentler: -will be retiring here the end of March. I begged him to stay to get us through the audit and the budget. This is his last task. Also with us, Cole Fazenbaker is with us, and Liz Weaver on his team, and Tamara Keesecker is with us to help us with our management program of the budget. Liz and Tamara have been outstanding new additions to our team, and we're looking forward to their contributions. We're happy to address any questions if you have any for tonight. Mayor Burk: At this point, we really haven't had a chance to look at the budget, just the overview. If you have some general questions, we can move forward on that. Just a moment. Let me see if there's anybody else. I'm going to start down at that end. Mr. Wilt. Council Member Wilt: Just one. There'll be a lot of questions the next month. Kaj Dentler: I was looking that way. Council Member Wilt: Just one high-level, simple question on page 5. It was the percentages. We said a 4% compensation increase. It was $800,000? Kaj Dentler: Yes. Council Member Wilt: 3% COLA increase was- Kaj Dentler: Cole, do you want to go into the detail on that? Because this is all in your world. I'll get to the slide and he'll explain it to you. Cole Fazenbaker: Sure. Basically, the reason that the pay for work performance, 4% is $810,000, and then the 3% COLA is 3% and even more expensive is because COLAs right now are effective July 1, where the pay for performance is based on evaluation dates of that employee. If their evaluation date isn't until later in the year, we only have to pay a portion of that. Council Member Wilt: Got it. Thank you, Cole. Mayor Burk: All right. Is there anyone else? Vice Mayor Steinberg: Yes, one question. Mayor Burk: Yes. Vice Mayor is very anxious to ask you a question. Vice Mayor Steinberg: Just one. Kaj Dentler: I see that. That's why he hit that light fast. Vice Mayor Steinberg: There we go. When we were down in Richmond speaking with our 7JFebruary 13, 2024 representatives, there was mention of trying to acquire funds that would be directed for the airport. I think it was in the amount of about $120,000. Are we aware of that and do we know what the status is? Kaj Dentler: No, I'm going to defer to Keith Markel if he has that, Mr. Legislative. Keith Markel: We are very hopeful and very thankful to Delegate Reid for introducing that budget adjustment, but we do not have confirmation on that. Again, being on the conservative side, we're assuming no State funds coming towards the rental agreements for the year, but anything that comes our way will certainly help the budget. Vice Mayor Steinberg: Okay. Thank you. Mayor Burk: I do have some additional questions, but I'll wait as we're going through it. The one thing I do want to point out to you talking to the other mayors and localities that have cameras have warned to be aware that revenues will really slow down. Don't think that because one year you get this amount, the next year you're going to get the same amount. Kaj Dentler: Correct. Mayor Burk: That it is effective in getting people to slow down in the school zones, and so you don't get [inaudible]. Kaj Dentler: That's correct. There's a reason we're doing it. That is to change behavior. Mayor Burk: I had one question about the Parks and Rec request for disinfectants for the pool that we didn't fund. I don't know what page it's on, but it's the unfunded CARP, and its disinfectant system for pool water system for main pool. Kaj Dentler: Is it on the CARP? Mayor Burk: Yes. Kaj Dentler: Diving board and stand? Mayor Burk: Fifth down, Parks and Rec disinfectant system. Kaj Dentler: The second one? Mayor Burk: No, it's 1, 2, 3, 4, 5. The fifth one down. Kaj Dentler: Disinfection system. Mayor Burk: Right. Kaj Dentler: Well, honestly, I don't know why we didn't do that, but Rich, you may need to help me. I don't know if we felt we could absorb that in this year's budget or if we could delay with time. Do you remember? Rich Williams: That was an item that we currently have one in place that is working. It is just starting to reach its end of lifespan, so it's more a capital asset replacement item where we're planning for the replacement of that item. It's for our UV system, but it is operating functionally right now. Mayor Burk: I would think that would be pretty important that we really do need to make sure that we have that in place if we need it. You're saying that we don't need it? Rich Williams: Currently, it's reached its lifespan, and that's typically as things reach the lifespan we plan to replace them. It is still operational. It could operate for another three to four years, but at its lifespan so we're on borrowed time moving forward. 81February 13, 2024 Mayor Burk: You're keeping an eye on it. Kaj Dentler: What I can assure you is if it does fail or go down, it will be replaced. We will make adjustments in the budget. Again, it's trying to anticipate when we have to do something. Mayor Burk: Alright. Thank you. After we have the chance to read our lovely budget books over there, our next meeting will be tomorrow-- no, that's today, excuse me. The next one is the 26th. That's when we should start coming prepared for questions, and then when will we start doing the markups? Kaj Dentler: The first markup is identified, initial markup on Monday, March 11th, but nothing stops us. If you are moving faster, there's no reason that we can't go ahead. You don't have to wait type of thing. Mayor Burk: This truly is a very lean budget. There's so many things that we really want to do and make happen. All these unfunded projects are really painful to see, but we do have to be very concerned about our taxpayers and what they're paying, and what the impact on them is. I will bring up after the consent agenda changing the calendar. Thank you very much. All right. No regional reports, we have petitioners, and I need to read this aloud. You'd think I have it memorized after all these years. One of the first orders of business is to hear from the public. All members of the public are welcome to address Council on any item, matter or issue. Please identify yourself, and if comfortable doing so, give your address for the taped record. Any public speaker will be requested to state their names and spell it for the purpose of closed captioning. In the interest of fairness, we also ask that you observe the three -minute time limit. The green light on the timer will turn yellow when you have one minute remaining. At that time, we would appreciate your summing up and yielding the floor when the bell indicates your time is expired. Under the rules of orders adopted by this Council, the time limit applies to all. There is nobody that has signed up on the sheet for tonight. Is there anyone in the audience that would like to speak that didn't get a chance to sign up? Nobody. In that case, I will close the petitioner's section. That will take us to approval of the consent agenda. I will read out the items, ask for a motion and a second, and then I'll ask if anyone wants anything removed. The first item is 12A, Acceptance and Appropriations of Funds from Loudoun County American Rescue Plan, ARPA. Tourist Grant Program. B is Town Hall Art Exhibit by Gary Murray. C is, Authorizing an Offer to Acquire Right-of-way Dedications and Easements for Evergreen Mill Road Widening Project. D, Easement, Right-of-way, and Nuisance Ordinance Grounds Maintenance. C, Vacation of Existing Reclaimed Waterline Easement within the Area of the Public Street Dedication for Crosstrail Boulevard. F, Awarding a Contract for Water and Wastewater Treatment Chemicals. G, Supplemental Appropriation from the Electronic Summons Reserve. H, the Historic Highway Marker, 1902 Lynching of Charles Craven. I, the Appointment to the Parks and Rec Commission of Ryley Trahan. Well, first, do I have a motion? Vice Mayor Steinberg: So moved. Mayor Burk: Do I have a second? Okay. Is there any item anyone wishes to have removed? All right. In that case, all in favor, indicate by saying aye? Members: Aye. Mayor Burk: Opposed? That passes 6-0-1. We have two resolutions before us tonight. We have an Appointment to the Parks and Rec Commission, a Mr. Alex Richardson. Do I have a motion? Council Member Nacy. Second? Council Member Cimino -Johnson: Second. Mayor Burk: Second by Dr. Cimino -Johnson. All in favor, any questions? All in favor, indicate by saying, aye? Members: Aye. 9IFebruary 13, 2024 Mayor Burk: Yes? Council Member Nacy: Aye, but yes. There's two openings? Mayor Burk: Yes. Council Member Cummings: Not anymore. Eileen Boeing: Who was the second person? Mayor Burk: Who was the second? It was Dr. Cimino -Johnson. Is that correct? Council Member Cummings: Yes, he seconded. Mayor Burk: I thought I heard. The next one is the Calendar for the Budget Review and Adoption Schedule. Do I have a motion to accept the calendar, with the exception of changing the date, the March date from the 25th/26th to the 1 8th/1 gth? Council Member Nacy: So moved. Mayor Burk: Second? Council Member Cimino -Johnson: Second. Mayor Burk: Second by Dr. Cimino -Johnson. Any questions? The Manager did explain it. I think most of you will be gone. Moving it is just to make sure that we can get it done in time. All in favor, indicate by saying, aye. Members: Aye. Mayor Burk: Opposed? That passes 6-1. Chris Spera: 6-0-1. Mayor Burk: 6-0-1, excuse me. Thank you. Now we have any disclosures or additions to future agendas. Mr. Wilt? Council Member Wilt: Not at this time. Mayor Burk: Ms. Nacy? Council Member Nacy: None. Mayor Burk: Dr. Cimino -Johnson? Council Member Cimino -Johnson: None. Mayor Burk: Mr. Cummings? Council Member Cummings: I have one disclosure. I met with Molly Novotny, Colleen Gillis, not Bob Kettler, but someone who works for Mr. Kettler, and [unintelligible 00:41:46] about the application at Virginia Village Land Bays D&E. That's it. Mayor Burk: Vice Mayor? Vice Mayor Steinberg: I have none. Mayor Burk: I just have a couple of things. Last week was the Girl Scout, Boy Scout Week, because on the 24th, the 25th, and the 29th-- the Boy Scouts attended on the 24th and the 25th they came to 10lFebruary 13, 2024 learn about their local government. They came up on the dais here. They had a problem. They had an issue they had to deal with, and they had to vote and discuss it. It was a great experience for them to learn how the whole process works. They all want to bang the gavel. Girl Scouts came to visit the Mayor and share some Girl Scout cookies and asked me to promote everybody to go out and buy Girl Scout cookies. On the 31St to the 2"', I was down in Richmond with the other Council Members, and we lobbied the legislators down there. It's a very interesting session this year because there's a number of pieces of legislation that would take away zoning from our local authority. One of them deals with accessory dwelling units. One of them deals with Airbnb that would take away the locality's ability to zone either of those items. There's a couple of other ones. It was very important to be down there and talking to them about what would be the impact to our locality if we could no longer zone different components to it. We were able to get them. They did not pass in the House, but they went to the Senate where they did pass. That has to go back to the House now, and so we're working to see if we can get them improved or if not, put aside for next year. There was also our legislator Delegate Martinez, put forward the bag tax of returning the money that has been acquired here in Leesburg. Right now it goes to the County and the County uses it, but his legislation would change that the locality where the money comes from, where the tax is charged, would come back to that locality in a formula. That looks like that's going to be passed in this future session here, so we're very optimistic about that. On the 5th of February, I spoke to the Senate Committee in opposition to those two zoning bills that I mentioned. We think that we are really tough here, making people speak in five minutes or three minutes. I had 45 seconds. Once I said my name, I didn't have much time left, but that's the way it works down there. On the 6th, Vice Mayor and I, and many of staff met with residents of Balls Bluff. Their park is going forward and it was a little surprising to the residents. We didn't do a very good job of communicating with them and making sure they were aware of what was going on. We are going to work on that. They have some suggestions. I was very pleased with staff. They took their suggestions very seriously and we're very happy that they were able to hear from the residents, and they're going to make sure that they are kept informed on a much more regular basis. Now, this park was approved in 2012, so I think people thought that everybody realized it had been approved and it was moving forward, and we can't make that assumption anymore. We got to make sure that if it affects a neighborhood, we got to make sure they know it's coming. I want to wish everybody a happy Mardi Gras and behave yourselves. Town Manager? Kaj Dentler: No comments. Mayor Burk: Right. Do I have a motion to adjourn? Council Member Nacy: So moved. Mayor Burk: And a second? Council Member Cummings: Second. Mayor Burk: Council Member Cummings. Council Member Nacy made the motion, seconded by Council Member Cummings. All in favor indicate by saying aye. Members: Aye. Mayor Burk: Opposed? It passes. We are done. 11 (February 13, 2024