HomeMy WebLinkAbout3/15/2011 - Regular1
MINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M. ON
TUESDAY, MARCH 15, 2011, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL
BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA.
MEMBERS PRESENT: Bradley E. Grose, Mayor
Robert R. Altice
Carolyn D. Fidler
Matthew S. Hare
William W. Nance
STAFF PRESENT: Chris Lawrence, Town Manager
Elizabeth Dillon, Town Attorney
Julie Tucei,Acting Town Clerk
Michael Kennedy, Public Works Director
Stephanie Dearing, Human Resources Manager
Herb Cooley, Police Chief
Anita McMillan, Planning Director
Barry Thompson, Finance Director/Treasurer
Ben Cook, Police Captain
Joey Hiner, Assistant Public Works Director
Lauren Hodges, Facilities Manager
Agenda
A. 7:00 P.M. –Roll Call and Establishment of a Quorum
B. INVOCATION –Rev. Reuben Coles, Pastor of First Baptist Church in Vinton
C. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG
D. CONSENT AGENDA
1. Request to Approve Minutes for February 15, 2011 Regular Meeting
E. AWARDS, RECOGNITIONS, PRESENTATIONS
F. CITIZENS’ COMMENTS AND PETITIONS -This section is reserved for comments and
questions for issues not listed on the
agenda
G. PUBLIC HEARING
1. Set Real Estate Tax Rate at $0.03 per $100, No Change – Ordinance No.
905
2. Set Personal Property Tax Rate at $1.00 per $100, No Change – Ordinance
No. 906
3. “Effective Tax Rate Increase” as a Result of Increased Assessed Value of
Real Estate
4. Proposed Water/Wastewater Rate Increase of 15% - Ordinance No. 907
H. TOWN ATTORNEY
I. TOWN MANAGER
1. Set Allocation Percentage for Personal Property Tax Relief (PPTRA) –
Resolution No. 1907
2. Authorize Town of Vinton Community Development Block Grant Downtown
Business District Revitalization – Resolution 1908
J. MAYOR
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K. COUNCIL
1. Finance Committee Report
L. ADJOURNMENT
WORK SESSION
1. Vinton Business Center and Other Town Economic Development Marketing
2. Non-governmental Agency Budget Requests
Mayor Grose called the regular meeting to order at 7:00 p.m. Following roll
call, Rev. Reuben Coles, Pastor of First Baptist Church, gave the
invocation and Mr. Altice led the Pledge of Allegiance to the U.S. Flag.
Roll call, invocation and
Pledge of Allegiance to
U.S. Flag.
Mr. Hare stated that the minutes for the regular meeting of February 15,
2011, listed under the Consent Agenda,contained an error in the first
paragraph on page 4 where it states that Mr. Nance made the motion to
accept the December, 2011, Financial Statement. He asked that the
minutes be amended to state that he had made that motion.
The Consent Agenda was approved with the requested amendment to the
February 15, 2011 minutes on motion by Mr. Hare and seconded by Mr.
Nance. The motion passed with all in favor.
Approved Consent A-
genda
Lauren Hodges, Facilities Manager, announced that the Vinton War
Memorial had won the Roanoker Magazine’s Best of Roanoke Gold Award
in the Event Venue category.
Mayor Grose opened the public hearing at 7:09 p.m., to take comments
and questions regarding the Town’s real estate tax rate. Mr. Thompson
reported that proposed Ordinance 905 sets the real estate tax rate for
calendar year 2011 at $.03 per $100 of assessed value. He advised that
the Town’s real estate tax levy increased by only 29% for calendar year
2011. He noted that the State Code requires that a public hearing be
heldonly when the annual real estate assessment results in an increase of
1% or more of the total real estate tax levy. He went on to say that even
though it would not be required this year, staff decided to go ahead with
scheduling a public hearing in order to publicize the annual tax rate and
effective tax increase.
Mr. Thompson reported that the assessed values for 2011 are
$469,848,000 which is a $1,377,400 increase over the 2010 calendar year
assessed values. He pointed out that a tax rate of $.03 would generate
$140,954 in real estate taxes, an increase of $413.
Mr. Thompson advised that proposed Ordinance No. 906 sets the personal
property tax rate at $1.00 per $100 of assessed value and $1.00 per
$100.00 of assessed value for the machinery and tools tax rate.
Mayor Grose stressed that there would be no increase in either the real
estate tax rate or the personal property tax rate.
Held a public hearing
and adopted Ordinances
No. 905 setting real
estate tax rates and
Ordinance No. 906
setting personal property
tax rates, Also, a public
hearing on effective tax
rate increase was held.
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Mr. Hare pointed out that the Town’s increase in values which shows how
strong the Town is financially, especially as other local governments are
experiencing decreases in their real estate values. The Mayor closed the
public hearing at 7:15 p.m.
Mr. Nance moved to adopt proposed Ordinance No. 905 setting the real
estate tax rate at $.03 per $100 of assessed values. The motion was
seconded by Ms. Fidler and passed unanimously on a roll call vote.
Mr. Altice moved to adopt proposed Ordinance No. 906 setting the
personal property tax rate as well as the machinery and tools tax rate at
$1.00 per $100 of assessed values. The motion was seconded by Ms.
Fidler and passed on a unanimous roll call vote.
Mayor Grose opened the public hearing at 7:16 p.m., to take comments
and questions on a request to raise water and waste water rates by 15%.
Mr. Lawrence reported that Town staff and the Finance Committee had
been monitoring the status of the Utility Fund and had seen a trend with
revenues being below what was forecasted. He further reported that if
nothing is done to change this trend, the Town’s Utility Fund will be
$300,000 “in the red” by the end of this budget year.
Mr. Lawrence reviewed options that had been given to Council at a
previous meetingto help prevent the shortfall in the Utility Fund budget
which includeda combination of budget cuts and savings in the amount of
$166,000; an increase in water and wastewater service rates of 15%; and
if needed, $30,000 of the fund balance. He reported that over the past
couple of years, staff and Council have made efforts to minimize rate
increases due to the recent economic recession.
The Town Manager advised ofseveral measures thatwere put in place to
correct the Utility Fund shortfall: a 10% rate increase that took place a
year and a half ago; budget reductions of $250,000 were put in place two
years ago that were carried forward to the current budget; one full-time
position was frozen and has remained vacant for several years; delayed or
deferred capital projects in the Utility Fund as well as the General Fund;
and lastly, the use of almost $700,000 of surplus funds. Mr. Lawrence
stated that the Utility Fund balance is currently down to $300,000. He
noted that a surplus of at least a million dollars is needed for the Town to
run the system responsibly and safely, to cover the costs for capital
expenditures and to handle any emergency projects that may arise.
Mr. Lawrence pointed out that 70% of the Town’s infrastructure is over 40
years old and is beginning to fail. He advised that the Town has made
significant financial investments over the past eight years in the system,
but a $30,000,000 investment is needed over the next ten to twenty years
if the Town is to continue providing a safe and reliable system in the future.
The Town Manager stressed that Utility Fund revenues areused only to
fund the water and wastewater system and that the Town’s core services
such as Fire and EMS, the War Memorial, the Senior Program, etc., are
Adopted Ordinance No.
907 increasing water
and wastewater rates by
15%.
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funded out of the General Fund.
Mr. Lawrence advised that Ordinance No. 907 proposes a 15% increase in
water and wastewater service fees effective April 1, 2011.
Mr. Timothy Corbett who lives at 2616 Crocus Circle spoke in opposition of
the proposed rate increase. He noted that he had been conserving water
use in order to keep costs down and did not want to pay more for water
than he is currently paying. He asked that Council raise the rate by smaller
increments over a period of time instead of all at once.
Mr. Wiley Foutz of 236 Bowman Street spoke in opposition to the rate
increase and asked that the Town consider a smaller increase.
Mr. Richard Maxey who lives at 732 S. Maple Street; Mr Galen Conner
who is with Old Colony Realty; Ms. Ann Huddleston of 716 Oley Road and
Mr. Pete Tolley of 226 E. Cleveland Avenue, all spoke in opposition to
water/wastewater rate increase.Ms. Donna Zabrasky of Maywood Drive
and Mr. Michael Shores who was representing R & L Properties also
spoke in opposition of the proposed rate increase. Mr. Shores asked that
Council consider phasing in the rate increase. Mr. Tommy Woods asked if
the Western Virginia Water Authority treated any water for the Town of
Vinton and was advised by the Town Manager that the only relationship
the Town has with the Water Authority is with the wastewater collection
system that goes to the Regional Wastewater Treatment Plant. Mr. Wood
asked if the Town could treat its own wastewater and was advised by Mr.
Altice that the federal Government prohibits the Town from treating
wastewater. Mr. Wood asked if any other Town departments were losing
money at the same rate as the Utility Fund. Mr. Nance replied that the
General Fund has hada loss of revenues totaling over $1,000,000 as a
result of the recession. He noted that the new cigarette tax has helped
make up some of the revenue loss.
Mr. Wood asked for a guarantee that all of the 15% increase would be
designated for the Water and Sewer Department. He was assured by the
Town Manager and Council that it would be. Mr. Wood then asked if any
of the proposed rate increase would be spent for expanding the system
and was advised that the funds would be used for making repairs in the
system that is already in place. The Town Manager explained that the rate
increase is one of several steps that are being taken to allow service rates
to eventually fund capital improvements which would allow for additional
customers.
Mr. Woods pointed out that the taste of the Town’s water needs to
improve. The Mayor assured Mr. Wood that staff is working to reduce the
chlorine taste. Ms. Tammy Crockett who lives at 743 Bexhill Drive, asked
if Town employees have gotten raises every year and if the Town has
frozen wages and reduced the number of positions. Mr. Lawrence
responded that Town employees have not had salary increases in three
years and unless revenues increase, there will be a fourth year with on
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salary increase. He added that employees did receive a $250
stipend/bonus this year. Mr. Lawrence advised that expenditures the
General Fund had been reduced by $1,000,000 and the Utility Fund by a
quarter of that amount by delaying positions and deferring capital
purchases. He stated that the Town has done everything possible to
reduce expenses to avoid reducing the level of service to its citizens and if
more is cut, services will have to be reduced. Mr. Altice pointed out that
the proposed 15% increase will allow the Utility System to run without
having to spend reserve funds.
Mr. Tim Greenway asked if charges for utility hook-ups were included in
the rate increase. Mr. Lawrence replied that there were no plans at the
present to increase those fees. Mr. Greenway asked about War Memorial
and how much financial support it needs to operate. He was advised by
Mr. Lawrence that the Town would need to provide a subsidy of $178,000
this year.
Mr. Wiley Foutz asked how sewer rates were set and was advised by Mr.
Altice that sewer rates are based on water usage. Mr. Foutz asked why
his sewer bill was always higher than his water rate and was told that
providing sewer services costs more it does to provide water services. Mr.
Tim Corbett asked why the Town’s wastewater lines were in such poor
condition. Mayor Grose responded that water and sewer rates have been
artificially low for decades which prevented revenue growth that was
needed to make repairs to the system as it aged. He went on to say that
he did not feel that the Town’s water and wastewater system was any
worse than systems in other localities in the country. Mr. Kennedy agreed
with the Mayor’s statement. Mr. Nance added that it was easier in the past
to delay the investments in order to keep costs low and the tax payers
happy.
Mr. Charles Bolling of 423 Bush Drive, asked if the Town could give some
kind of break to those water customers whose usage is below the
minimum. He also commented that he had no problem with paying the
Town the small amount of taxes that he is assessed for all the fine services
he receives from the Town. The Mayor asked staff to take a look at that
request while they are completing the water and wastewater rate study.
Mr. Anthony Conner inquired as to how long it would be before
improvements to the system would be completed and was advised by the
Mayor that it would take 20 years to make the improvements. Mr. Conner
stated that the Town would spend less money in the end if the system
could be repaired sooner rather than later, even if it costs more initially. He
also asked about selling Town water and if it would be possible for the
Town to partner with the Western Virginia Water Authority to get the
Town’s wastewater lines repaired. Mr. Lawrence replied that the Western
Virginia Water Authority does not receive any funding from the Town other
than forthe Town’s share of costs for the operation of the sewer plant to
treat wastewater. He added that the Water Authority is also having
difficulties with keeping up with repairs to its service lines as well. Mr.
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Bolling asked about obtaining grants to help pay for improvements to the
system.
Mr. Hare pointed out that the Town has $30,000,000 worth of repairs that
are needed for the wastewater system and if the Town does not raise rates
to make the repairs, the State will eventually come in and force the Town
to raise rates and make the needed improvements.
Mr. Tim Greenway asked if the Western Virginia Water Authority would
consider taking over the Town’s sewer system. Ms. Fidler pointed out that
the Town has made a concerted effort to find out what is needed to fix the
system and to improve it. The Mayor commented that the 15% increase
was not a cure-all but it would be a good start.
Mr. Hare stated that he realized that 15% would be a big increase but the
Town has only four months to make up at least a portion of the budget gap.
He further stated that he was struggling with having to raise the rate so
much but felt it was necessary as the Town does not have enough cash on
hand to pay expenses for the remainder of the budget year.
Mr. Nance stated that the proposed increase would not grow the Town’s
Utility System but would enable the water and sewer system to continue to
operate. Mr. Nance pointed out that if the Town did join the Western
Virginia Water Authority, it would be a “small fish in a very big pond”
leaving the Town’s citizens with no recourse if they are unhappy about how
things are done.
Mr. Altice stated that the rate increase was not something Council wanted
to do but felt they do not have a choice at this point. Ms. Fidler stated that
they either have to raise the rates or loose Town services. She assured
those in attendance that Council is trying to protect the interests of the
Town’s citizens.
Mayor Grose noted that the Town is working diligently to improve
efficiencies and has made drastic budget cuts in both the General and
Utility Funds. He further noted that it is Council’s obligation to ensure the
delivery of water and sewer services to the citizens of the Town in the
future. It was also their obligation to ensure that employees carry out their
responsibilities as efficiently as possible and to make tough decisions
when necessary. Mayor Grose reported that the proposed 15% increase
would raise the minimum user’s water and sewer bill by just $2.64 per
month. He pointed out that the Town has the lowest utility rates in the
Valley.
Mayor Grose closed the public hearing at 8:46 p.m. Ms. Fidler moved to
adopt proposed Resolution No. 907 approving the request to raise water
and wastewater service rates by 15%. The motion was seconded by Mr.
Altice and passed unanimously on a roll call vote.
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Mr. Thompson reported on a request to set the allocation
percentage for personal property tax relief in the Town for the 2011
tax year. He noted that Council passed an ordinance in December,
2005, implementing amendments adopted in 2004 for the Personal
Property Tax Relief Act of 1998. He further noted that as a part of
that ordinance, the Town is required each year to enact a resolution
that would set that percentage of allocation. Mr. Thompson advised
that based on the pro rata share of $950,000,000 set by the State,
Vinton would receive $203,095.72 for the tax year 2011. He went
on to say that using the state model for allocation of funds, the
Town’s computed tax relief would be68.51%
Mr. Thompson noted that Council had been given an amended copy
of proposed Resolution No. 1907 as there were a couple of errors in
hisoriginal resolution. Mr. Hare moved to adopt the amended
Resolution No. 1907 setting the allocation percentage for Personal
Property Tax Relief. The motion was seconded by Ms. Fidler and
passed unanimously on a roll call vote.
Adopted Resolution No.
1907 setting PPTRA rate
Mr. Lawrence reported on a request forCouncil’s authorizationfor the
Vinton Community Development Block Grant for Downtown
Business District Revitalization. He asked that Council consider
action on proposed Resolution No. 1909 as well as 1908 as staff
became aware that a second resolution was requiredin order to
define the geographical boundary as well as to make qualifying
statements about the downtown area.
Ms. McMillan advised that during the planning grant process, the
Management Team had defined a Central Business District and
then chose six blocks of that district that would fall into a category of
a slum and blight area. She notedthere is no direct definition of a
slum and blight area but that areas with buildings that are under-
utilized and are not generating economic income to the Town, can
be considered as such.
Ms. McMillan requested that Council adopt Resolution No.1908
authorizing staff to apply for a Community Development Block Grant
for Downtown Business District Revitalization. She noted that the
resolution also defines the amount of the total project; the amounts
of local, state or other funds that are a part of the total project costs;
and that citizen participation requirements have been met by holding
at least two public meetings. Ms. McMillan noted that Resolution
1908 includes money the Town and Roanoke County has spent
since 2009 for façade improvements and private investments for
façade improvements since July 1, 2010. Also included in the
proposed resolution are three funding requests submitted to
Adopted Resolution No.
1908 authorizing the
CDBG Downtown Revit-
alization Project and
Resolution No. 1909
defining the project area
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promote the Farmers’ Market events.
Mr. Hare questioned whether the fact that the Town is designating
an area of downtown as blighted would result negatively on the
Town. Ms. McMillan replied that the fact the Town is addressing the
issue should prevent that from happening.
Ms. Fidler moved to adopt proposed Resolution No. 1908. The
motion was seconded by Mr. Altice and passed unanimously on a
roll call vote.
Ms. McMillan asked Council to consider proposed Resolution No.
1909 defining the downtown revitalization project area. Mr. Altice
moved to adopt proposed Resolution No. 1909. Mr. Nance
seconded the motion that passed unanimously on a roll call vote.
Mayor Grose commented on the enormous amount of work put in by
staff and citizens on the Downtown Revitalization Project and
thanked them for their efforts. Mr. Nance and Mr. Altice echoed the
Mayor’s statement.
Mr. Lawrence thanked Council for their support in the process.
Mayor Grose thanked Council for their efforts to make the Town
great, especially when making the hard decisions. He also thanked
staff.
Ms. Fidler thanked staff for their efforts in the Downtown Project.
Mr. Altice commented on the water/wastewater rate increase and
pointed out that they had done the best they could.
Mr. Nance noted that it was important that elected officials be
approachable and held accountable for decisions that are made. He
hoped that both staff and Council keep in mind what was said earlier
in the meeting regarding the proposed rate increase and the
frustration felt by the citizens during this time. He advised that they
need to become more inventive so they have the flexibility to invest
when the need is there and to “put band aids on when needed”. He
felt that for the upcoming budget year, they need to consider what, if
any, services may need to be eliminated to keep the Town
functioning properly.
Mr. Hare echoed Mr. Nance’s comments and looked forward to the
rate study for more dialogue and debate. He challenged Council
and staff to better educate the citizens on the state of the water and
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wastewater system.
Mayor Grose agreed that the citizens do need to be better educated
and that the Town needs to work on the quality of the water.
Mr. Hare noted that the Financial Report would be delayed until the
next meeting.
Mayor Grose adjourned the regular meeting at 9:29 p.m.
WORK SESSION
1. Vinton Business Center and Other Town Economic Development Marketing
Consuella Caudill gave a brief report on economic development in the Town over the past
couple of months. She pointed out a brochure given to Council that she had worked on with
Roanoke County Economic Development to promote the Vinton Business Center. She
stated that she has received a number of prospect inquires and visits for the Business Center.
Ms. Caudill reported that the Vinton Business Covenants will be redone and that a draft has
been drawn up with the proposed changes. She noted that Roanoke County will be working
with the Town to set up a public hearing on the issue. She advised that the property will
have to go through a rezoning since the covenants will be changed in order to attract the best
occupants possible. It was noted that the changes will make the Vinton Business Center
more consistent with other Roanoke County development properties.
Ms. Caudill reported on other economic development issues and advised that she has been
working with the Roanoke Regional Partnership, developers in the local area and with
Roanoke County. She advised that Ms. McMillan and her staff had been working with her
to identify a potential hotel site in Vinton or East Roanoke County. She added that this
would be in conjunction with the business plan for the War Memorial and would increase
the number of business conferences held there. Ms. Caudill advised that there is capacity
and property that could sustain a hotel development but was doubtful if there would be
enough interest at the present time to sustain the development of a hotel. She added that she
would be reaching out to a number of Africans Americans and Latino business owners,
groups and entrepreneurs to give them information about available properties in Vinton as
she believes they would work well with the Town’s strategic plan for developing home-
grown type of businesses.
She presented a slide presentation with what her economic development activities have been
over the past and plans for the future. During Ms. Caudilll’s presentation, she noted that
RVTV will be showing a new Town of Vinton video highlighting the four façade
improvements for this year.
Mayor Grose complimented Ms. Caudill on her work to develop a new process to bring
businesses into the Town.
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2. Non-Governmental Agency Budget Requests
Mr. Lawrence asked Council to let him know if they wish to see presentations from any of
the non-governmental agencies making budget requests for the 2012 budget. Mayor Grose
stated that Todd Bailey who is on the Vinton Dogwood Festival Committee had contacted
him and advised that he had some budget concerns. The Mayor went on to say that he
invited Mr. Bailey to make a presentation to Council regarding his concerns.
Following further discussion, the work session adjourned at 10:35 p.m.
APPROVED:
Bradley E. Grose, Mayor
ATTEST:
Darleen R. Bailey, Town Clerk