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HomeMy WebLinkAbout3/24/2009 - RegularMINUTES OF A BUDGET WORK SESSION HELD BY VINTON TOWN COUNCIL IN THE VINTON WAR MEMORIAL BUILDING LOCATED AT 814 E. WASHINGTON AVENUE, VINTON, VIRGINIA AT 6:30 P.M. ON TUESDAY, MARCH 24, 2009 MEMBERS PRESENT: Bradley E. Grose, Mayor Robert R. Altice Carolyn D. Fidler William E. Obenchain, Jr. MEMBERS ABSENT: W. Wesley Nance STAFF PRESENT: Christopher Lawrence, Town Manager Consuella Caudill, Asst. Town Manager Darleen R. Bailey, Town Clerk Herb Colley, Police Chief Beth Austin, Human Resources Manager Michael Kennedy, Public Works Director Laura Riley, Facilities Manager for War Memorial Barry Thompson, Finance Director/Treasurer Council held a brief discussion on whether to go ahead with the landscaping for the front of the Municipal Building, Health Department and around the three entrance signs. The Town Manager stated that it would be very helpful to him and to staff for Council to talk about the direction that Council wants the budget to take so that in the next couple of weeks, staff will be able to put the big pieces of the budget together. Mr. Lawrence briefly reviewed his approach to budget development that included short term strategies to get the Town through the next year or two versus long term strategies that include business improvements, maintaining essential public services, and trying to maintain the organization’s investment in Town employees. He noted that employee costs make up more than half the budget. He went on to say that if Council wishes to prevent employees from be affected by the budget cuts, services and the way business is done will have to change. Mr. Lawrence reviewed his revenue forecast overview and advised that, at the present time, it looks as if the projected revenue shortfall for next year’s budget will be in the range of $600,000. He added that if the budget is to be balanced next year, things are going to have to change in the area of services to the citizens, some of which will have a short term impact and some will have a long range impact on the way business is done in the Town. He gave examples of the some non-essential items in the budget that could be cut but would not change how services are provided to the citizens. A couple of those items he listed are the employee picnic at a cost of $5,000 and the $6,000 expense for the employee/volunteer/ boards/commissions gift cards. He advised that if the cards are limited to just the employees, the cost would be reduced by half. Other non-essential items are the Town Calendar that was developed last year, flower baskets for the downtown area and the special flower plantings at the Municipal Building, Health Department and at the entrance signs. He noted that funding for the hanging baskets has been cut by half by limiting them to the downtown area. He pointed out that if these items are cut, the Town could save approximately $30,000. He added that staff had already gone ahead with cutting some of these items. The Town Manager reported that he needed Council’s direction regarding whether to go ahead with the hiring of the Fire and EMS Chief at a cost of $90,000. Mr. Obenchain responded that he felt the position needed to be put on hold for the present as there would be future equipment needs within the next three or four years that will cost approximately $1,000,000. Mayor Grose pointed out that he was on the Safety Committee and was very much in favor of hiring a Fire and EMS Chief, but he knew that it could not be done at the present time. He went on to say that when revenues improve, he wanted this to be a priority. The Vice Mayor stated that he had always been a proponent for keeping the Town’s “Rainy Day Fund” at the level Council had set when it was put in place but now questioned whether or not part of the fund should be used to replace some of the revenue short-falls. He went on to say that he had a hard time supporting a decision to fund the flower plantings and hanging baskets when employees probably will not get a pay increase. The Mayor noted that he realized that the Town’s appearance is an important part of marketing the Town but would rather see the hanging baskets eliminated before anything is taken from the employees. During a discussion regarding Police promotions, Mr. Obenchain asked if the funds that had been designated for the Captain’s position, had been split between the two lieutenants. Chief Cooley replied that the Captain’s position remains in the pay plan but the spot was replaced with an entry level street officer. The Chief reported that there is currently no second in command. He went on to say that, in his opinion, a second in command is needed so that there is someone ready to step up into his position when he retires. Chief Cooley explained his plan for department promotions and assured Council that the mid-year implementation of this plan would cost no more than $10,000. The Town Manager reviewed staffing at the War Memorial and pointed out that Ms. Riley’s proposed budget for FY 09/10 is $45,000 less than last year’s budget as staff now has better information on the facility because it has been up and running for a full year. He further pointed out that the facility is struggling on the revenue side even though it stays busy. He pointed out that one of the reasons the facility’s revenues are not meeting projections is because many of the events are sponsored by non-profit agencies that do not pay the top rates. Mr. Lawrence added that staff is hopeful the War Memorial will attract some “spin-off” business from the non-profit events. He went on to say that the facility needs to be better promoted to attract those events that will bring in the higher revenues, and, in order to do that, Mrs. Riley has requested another 2 full-time person to help cover events so that she can go out and promote the facility. Ms. Austin stated that the second full-time position would cost $45,000. Mr. Lawrence asked if there was an interest in pursuing funding of the position in the upcoming budget. The Mayor responded that he agreed it is important for Mrs. Riley or someone to be out promoting the War Memorial. He added that it was his opinion this investment would come back very quickly. Ms. Fidler added that she felt it is essential that Mrs. Riley has the time to do the proactive things that have to be done to promote the War Memorial. Mrs. Riley reported that repeat business was beginning to increase but it continues to be short term events. She added that she would like to have the time to call some of those who have had events during the past year to invite them to plan another event at the War Memorial. Mr. Lawrence reviewed staff’s recommendations for employee salary adjustments and pay-for-performance. He advised that if Town employees do not get a raise this year, the Town would not loose ground because no local governments in the region are giving salary increases this year. He explained an idea he had, if the funds are available, to give every employee who has a satisfactory job evaluation, a bonus or cash payment in the range of $200.00 sometime next spring. He added that this would cost the Town approximately $18,000 and would be done only if revenues were on target. The Town Manager reported that staff has looked hard at Training and Travel, Dues and Subscriptions, Part-time, Over-time and Contractual Services and will do so again to assure they are kept in check. He assured Council that the Town would continue to pay for any employee training that is required for professional re-certifications. During his comments on the value of the Town’s part-time employees, Mr. Lawrence assured Council that taking care of the Town’s full-time employees would be his first priority. Mr. Lawrence talked about the Vinton Pool operations. He advised that the pool brings in $29,000 but costs approximately $90,000 to operate, leaving a total of $61,000 for the Town to fund. He advised that Roanoke City will be closing both of their public pools this summer which might bring more people to the Town’s pool. He pointed out that if this happens, operational costs would increase. The Town Manager recommended raising all admission rates by $.50 which would increase revenues by $7,000. He also recommended they also raise the pool party rates by $5.00 per hour, increasing revenues by $1,500. These increases would bring the net operating costs down to $52,500. Mr. Lawrence reported that even though the Town is grandfathered from Health Department requirements for filters and pumps, this equipment will eventually need to be replaced at a cost of $70,000. He advised that the pool needs work if it is to be operated at a level of appearance, maintenance and style that is expected for a Town facility. In response to an earlier request for more information, Mr. Lawrence provided Council with information from a survey done the year before on the ages of those who use the pool and where they live. It was pointed out that the cost to make the State required changes on the pool’s drains would be $4,000 to $5,000 and has to be done this year. The filter and pump improvements, ideally, would be funded in next year’s budget. Mr. Obenchain observed 3 that he had a problem spending $52,000 of the citizens’ money to operate the pool when over 60% of the users do not live in the Town and would not pay anything for the needed improvements. Mayor Grose expressed shock to learn the pool is costing the Town so much and agreed with Mr. Obenchain that it’s not fair to the Town’s citizens. The Town Manager stated that Mary Beth Layman has recommended admission rate increases that range from $2.00 to $4.00. This would increase revenues by $7,000. He asked for Council’s guidance within the next two weeks as to whether they want to close the pool or not. Mr. Lawrence advised that it costs the Town $486,797 to provide Town citizens with curbside refuse pickup, bulk homeowner disposal and adopt a truck services. He further advised this cost does not include capital expenses for equipment or Town purchased containers. He added that the Town receives $110,000 annually from Roanoke County toward this cost. Mr. Lawrence noted that according to an agreement with the County that if Roanoke County decides to fully fund their refuse collection program outside of the general fund, they would stop making the $110,000 payment to the Town.. Mr. Lawrence reported that another possible source of revenue would be a monthly fee of $10.00 to $13.00 per residence/business for refuse pickup. This would bring in between $370,000 to $480,000 per year in new revenue. Mr. Obenchain chain asked if the fee would be billed monthly and was advised that the best way to do it would be to make it a part of the bi-monthly utility billing. A discussion ensued as to whether the Resource Authority had ever considered the option of taking over residential trash collection for the member agencies. Mr. Kennedy responded that he was not aware of any conversations on this issue. Ms. Fidler made the comment that if that happens, it would be one more reason for the Town not to exist and that she was not in favor of it. Another fee discussed was a fee for the Adopt a Truck program that is now available at no cost to the citizens. The possibility of Cycle Systems going out of business and the repercussions to the Town was reported to Town Council. Following comments on the two issues, Mr. Lawrence inquired as to whether Council wished to consider putting in place a refuse collection fee. Mr. Obenchain recommended that they might want to begin this process by laying out the groundwork to begin charging a fee for refuse collection next year. The next issue discussed was paving and how much to cut back so that reimbursement funds in the amount of $950,000 from the state are not affected. During a discussion on animal control costs, Mr. Lawrence brought up the possibility of a wildlife service fee. He asked for Council’s guidance on whether to consider charging a fee for the service or possibly giving up the service all together. He noted this would allow the animal control officer to focus on higher priority issues or having his workload redistributed or refocused. The Police Chief was in favor of the Town Manager’s 4 recommendations to charge a fee or to do away with the service. Mr. Obenchain and the Mayor both agreed with this recommendation. Council and staff discussed the possibility of charging a cigarette tax for tobacco products sold in the Town. It was reported that this tax would generate somewhere between $30,000 and $40,000 at a tax rate of $.20 per pack. It was noted that this would be a decreasing revenue source as the number of people who smoke is decreasing.. After some discussion, Mr. Altice and Mayor Grose supported this recommendation. Mr. Thompson advised that he would further research the issue and report back to Council. The Town Manager recommended that the administrative fee collected by businesses to calculate Meals Tax for the Town, be reduced from 3% to 1%. This would bring in additional revenue in the amount of approximately $17,000. Planning and Zoning fees were discussed and it was recommended that most of those fees should be increased. Mr. Altice asked for some comparisons with what other localities charge and the Town Manger replied that staff would furnish Council with this information. Mr. Lawrence advised Council that staff would be taking a close look at War Memorial revenues in order to determine if there was anything that could be done to improve them. Another issue that was briefly discussed was delinquent accounts. During a discussion regarding the elimination of the decal fee, Mr. Thompson pointed out that he felt the Town would have been better off to have increased the personal property tax rate instead of instituting the VLF fee when the Town eliminated vehicle decals as the tax would be easier to collect. When asked by Council if it was too late to do it this year, Mr. Thompson replied that it was too late for this year but can be considered for next year. The Town’s website was discussed and the fact that the Town is not able to collect tax payments on line because of a convenience fee charged by credit card companies that would require software changes by the Town. Mr. Lawrence stated that if the Town is able to get a new professional website, all taxes and fees could be paid on line. He reported that the cost for a new website would be about $30,000 and he wanted to see if there was any way to fund it. He commented that the web is the premier spot for information and it’s the Town’s responsibility to make sure it’s capabilities are utilized in the best way possible. Downtown revitalization and development/business process improvement and education were briefly discussed. In response to a question from Mr. Altice, Ms Caudill gave a report on the progress of the work done at the Vinton Business Park. Mr. Lawrence advised that staff would go through the budget again in order to see if any more cuts can be made and then come back to Council on April 7th with a clearer 5 6 picture of where the Town stands financially. Mr. Thompson pointed out that a major portion of the money spent from the Reserve Fund was for Public Works equipment and the $450,000 that was spent to replace the ball field at the Vinton War Memorial. He also mentioned that the Town had also spent a lot on paving. Ms. Fidler asked the Town Manager about the cost savings if the Police Officers were not allowed to take their vehicles home and Mr. Lawrence responded there would be very little cost savings if the program was cut, probably not more than $1,000. One topic discussed was whether the Police Department had been given permission to institute the vehicle take-home policy. Ms. Fidler brought up the fact that she felt it was nearly impossible to get information on the Senior Citizens activities as there is very little listed on the website. Mayor Grose pointed out that if Council decides to not open the Vinton Pool this year, there would be no public pools open in the entire Roanoke Valley. Mr. Lawrence reported that if Council decides to open the pool this year, the current budget would have to fund pool operations only for the month of June with the remainder of the operations costs coming from the 2009/2010 budget. He went on to say that this year’s budget already has funding included for this expense so it would cost only $45,000 for the rest of the season, not $90,000. Mr. Obenchain brought up the fact that if the pool is not closed, the Town is going to have to invest a large amount for major repairs and upgrades. He added that if revenues continue to drop, the Town needs to inform the citizens that this will be the last year the pool will be open. The Mayor agreed with Mr. Obenchain. The Town Manager reported that Mr. Nance had requested a work session item for the April 7th meeting to discuss other uses for the skateboard ramps. The work session adjourned at 10:25 p.m. APPROVED: Bradley E. Grose, Mayor ATTEST: Darleen R. Bailey, Town Clerk