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HomeMy WebLinkAbout5/19/2009 - RegularMINUTES OF A REGULAR MEETING OF VINTON TOWN COUNCIL HELD AT 7:00 P.M. ON TUESDAY, MAY 19, 2009 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 William W. Nance MEMBERS ABSENT: William E. Obenchain, Jr. STAFF PRESENT: Chris Lawrence, Town Manager Elizabeth Dillon, Town Attorney Darleen Bailey, Town Clerk Barry Thompson, Finance Director/Treasurer Mary Beth Layman, Special Programs Director A. 7:00 P.M. — Roll Call and Establishment of a Quorum B. INVOCATION — Barney Arthur C. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG D. CONSENT AGENDA 1 Approval of Minutes for Regular Meetings of April 7, April 21 and May 5, 2009 2. Ordinance No. 885 — Proposed Rate Increase for Water and Sewer ACTION: Schedule Public Hearing for June 2, 2009 E. AWARDS, RECOGNITIONS, PRESENTATIONS 1. Public Works Employees Place High in Equipment Rodeo F. PUBLIC HEARING 1 Ordinance No. 882 — Proposed Increase in Meals Tax from 5% to 6% a. Staff Report b. Public Comment c. Council Discussion ACTION SCHEDULED FOR JUNE 2, 2009 2. Ordinance No. 883 - Proposed Implementation of Cigarette Tax at $.30 per Pack a, Staff Report b. Public Comment C. Council Discussion ACTION SCHEDULED FOR JUNE 2, 2009 3. Ordinance No. 884 —Proposed FY 2009-2010 Budget a. Staff Report b. Public Comment C. Council Discussion ACTION SCHEDULED FOR JUNE 2,2009 G. CITIZENS' COMMENTS AND PETITIONS H. TOWN ATTORNEY I. TOWN MANAGER 1. Appropriation of Funding for Veterans Monument — Resolution No. 1824 J. MAYOR K. COUNCIL LADJOURNMENT WORK SESSION 1. Proposed Rate Increase for Water and Sewer Mayor Grose called the regular meeting to order at 7:00 p.m. Roll call, invocation Following roll call, Pastor Barney Arthur gave the invocation and and Pledge of Alle- Council Member Carolyn Fidler led the Pledge of Allegiance to the giance to U.S. Flag U.S. Flag. ITIs. Fidler moved to approve the consent agenda. The motion was Approved Consen—t seconded by Mr. Altice and passed with all in favor. Agenda Mr. Nance read a letter from Police Chief Cooley naming Police Awards and recognit- Officer Todd Bailey as Officer of the Month for the month of April, ions 2009. Mayor Grose recognized several Public Works employees who recently took part and placed in an equipment rodeo sponsored by Roanoke City, He noted that Crew Leader, Fred Sisson finished first place in the snow plow competition- Chief Mechanic, Mike Huffer, placed second in the backhoe competition; and Equipment Operator 11, Barry Custer, finished fourth place in the knuckleboorn truck competition. He also noted that there 25 to 30 people took part in the rodeo. The Mayor reported that the American Public Works Association also held an equipment rodeo and Equipment Operator, Barry Custer finished first in the knuckleboorn truck and Equipment Operator 111, Jeff Thurman, finished second in the street sweeper event. There were approximately 70 people who took part in that event. Tlayor Grose introduced Ali Henderson who had been working as an �ntern with the Vinton Area Chamber of Commerce since March 1 01h ' He thanked her for the work she had done for the Town and the Chamber of Commerce. Tlayor Grose opened the public hearing at 7:10 p.m. to take Held public hearing on 11 comments and questions on proposed Ordinance 882, increasing the proposed meals tax meals tax from 5% to 6% on July 1, 2009. He explained that Council increase would not take action on the proposal until the June 2nd meeting. Mr. Lawrence gave the staff report. He pointed out that the proposed meals tax and the proposed implementation of the cigarette tax was a part of the overall budget picture. The Town Manager estimated that the two tax increases would raise revenues by approximately $140,000 Mr. Kenneth Graybill who lives at 1013 E. Washington Avenu spoke in opposition to the proposed meals tax and the propos cigarette tax. He felt it was unfair to single out a particular group people to tax. He commented that the two taxes would drive peop 3 out of the Town of Vinton and asked the Town to consider a sales t increase instead. a] Mr. Hal Mabe, who is president of the Vinton Area Chamber of Commerce, expressed his concern that both tax increases would hurt Vinton businesses as it would divert customers to other localities. He acknowledged that he realized the Town was having difficulty puffing the budget together and asked that Vinton work with the Chamber in looking at economic development and other things that can be done to increase business in the community rather than raise taxes. He stated that he wanted to go on the record for the Vinton Chamber o Commerce that they opposed the tax increases. Mr, Bob Lewis who owns the Town's McDonald's restaurant, spoke i opposition to the proposed meals tax. He advised that the tax woul affect his business. Mr. Lewis went on to say that, as far as he knew no other locality in southwest Virginia has a meals tax of more tha 5%. He felt the tax was singling out his customers. Mr. Tommy Wood commented that he felt that it is almost impossible to locate a business within the Town due to the change of use regulations. He asked that Council vote no on both tax increases. Mr. Wood stated that if the .30 cigarette tax is imposed, customers could very easily go just outside the Town to the County to purchase cigarettes, He recommended that the town look at additional ways to cut the budget. th Mr. Nance advised that Council did not want to increase taxes in Town and that the current budget had been cut and would probaI have to be further reduced. He pointed out that there would be lift or no paving next year and the fact that after this summer, t swimming pool would close. He also pointed out that To employees would not be getting salary increases this year. 3 Ms. Fidler commented that Town Council makes an honest effort to provide the type of services that people want and need at "rock - bottom prices". She went on to say that the Town has to increase revenues in order to provide those services. Mr. Altice stated that even with the proposed tax increases, he fl they would probably have to make additional cuts to the budget as one knows if the projected revenues will actually be realized. Mayor Grose reiterated that no Council member likes the idea dI having to raise taxes and stressed that the Town was not intentional trying to single out any one group. He went on to say that the re estate tax and sales tax have been carrying the load for years b was no longer enough. He pointed out that the budget has alrea been cut by over $600,000; $100,000 had been taken from t Town's reserve funds and the CIP Program had practically be eliminated. He noted that it is very distressing that Council is unab to make investments in the Town. The Mayor closed the public hearing at 7:27 p.m. Mayor Grose opened the public hearing at 7.27 p.m. to take - comments and questions on proposed Ordinance No. 883 implementing a tobacco tax of $30 per pack. Mr. Lawrence reported that towns and cities are authorized by the State to have a cigarette tax but counties are not. He noted the tax would be a short-term solution to bridge the immediate budget gap but would also have a long term benefit as it provides a new revenue source for the Town. Mr. Lawrence noted that staff looked at similar localities in the state who charged a cigarette tax to determine how they structured the tax. Based on the information from these localities, staff estimated the income from the proposed tax would be approximately $115,000. The Town Manager noted that he had been unable to get any specific information on the number of cigarette packs sold in the Town until the last couple of weeks. He went on to say that after speaking with some of the retailers in town and the cigarette wholesalers, he believes that cigarette sales in the Town are somewhere in the range of $2.5 million to $3.2 million packs. Mr. Nance asked if the Town Manager was comfortable with the sales numbers he had gotten from the representatives with whom he had spoken. Mr. Lawrence replied that he had confidence the numbers are realistic. Mayor Grose introduced Mr. Patel from the Roanoke Valley Asian E Held public hearing on proposed Ordinance No. 883 implementing a cigarette tax American Business Owners Association. Mr. Dharmendra Patadiya gave a Power Point presentation in opposition to the proposed cigarette tax. During the presentation, information was shared on cigarette consumption in the Town of Vinton and it was pointed out that 85% of cigarettes sold in the Town are bought by people who live outside of the town limits. Another fact noted during the presentation was that the $30 tax would bring in revenues in the amount of $900,000, based on the sale of 3,000,000 cigarettes sold. Also noted was the fear that the tax would not only affect cigarette sales but also grocery items, gas and other sales which could result in driving businesses out of the Town. Mr. Patadiya claimed that the Town would face heavy business losses as a result of the tax which would be greater than revenues generated by the tax. He also reported that wholesalers do not want to have to stamp every pack of cigarettes because they are hard to stamp. Ms. Shatel Patel of 478 Trippingharn Drive in Roanoke who owns a store across the street from the bingo Parlor, stated that she would have to close her store if the proposed cigarette tax is implemented. She recommended that the Town impose a tax of no more than a $,05 per pack, She, too, stated that the tax would force the businesses to move out of Vinton. Ms. Lee Ann Woodsell who lives at 5276 Goodview Road in Goodview spoke in opposition to the proposed cigarette tax. Mr. Steve McCarty of 1128 Coolbrook Road in Bedford and is a cigarette wholesaler, stated that if the tax is implemented, the stores that are just outside of Vinton will pick up business. He commented that the number of brands sold at the Vinton stores would go down because of the way cigarettes have to be stamped. Mr. David Hall from Sam's Club spoke in opposition to the proposed tax. He noted that cigarette sales in Salem dropped dramatically when their cigarette tax was adopted which also limited the variety of cigarette brands that were sold. Mike Richards, 524 Ruddell Road spoke in opposition of the cigarette tax. He felt the tax would be unfair. One business owner commented that Rocky Mount is a small town that is also struggling but they are not implementing a cigarette tax. He suggested the Town collect a tax on gross sales or by the carton rather than on individual packs. Mr. Arthur also questioned enforcement of the tax. He pointed out that there is currently an underground tobacco operation and if the tax is charged, it's going to spread to Vinton. I Mayor Grose stated that it is inaccurate to say the Town needs only $115,000 to balance the budget. He further stated that this year. the budget was cut by $600,000 and it had been necessary to take $100,000 from surplus funds to get a balanced budget. He alsitt noted that the Town will be able to spend very little on needed capital improvements. The Mayor explained that the state gives cities and towns the option of implementing a cigarette tax as way to raise needed revenues. He went on to say that the Town does not have a choice in whether or not to consider implementing the tax. He did say that the amount of the tax can be discussed. The owner of a store located across from Southern States, spoke in opposition to the proposed cigarette tax. Ms. Fidler spoke of her concern that needed capital improvements would not be done because there is no money in the budget to do them, She assured the tobacco retailers that Council will determine what revenues are needed before deciding what the cigarette tax should be as Council does not wish to be unfair to anyone. Mr. Altice reiterated that even with the cigarette tax, it's going to be he believed it will be necessary to cut the budget again in six months. He went on to say that he did not feel the Town could continue the services as they are now with the revenues that have been projected in the proposed budget. Ms. Fidler added that from now on, the Town is going to have ensure that revenues equal what expenses really are. In a discussion on what it costs to run the swimming pool, Ms. Fidler noted that she does not like the idea of having to close it next year but the Town can no longer afford to lose approximately 50% of what it costs to run the pool. Mr. Altice pointed out that if the pool is not closed, the Town was going to have to invest at least $70,000 to bring it up to code. Mr, Nance stated that the Town is not supposed be make a profit and that revenues should be close. He noted that when the Town is not growing and the economy is not growing, the Town' s revenues should not be growing but revenues are going to have to grow enough to keep needed services going. Mayor Grose pointed out that the $115,000 cigarette tax revenue that has been projected would not be a windfall. He also pointed out that ON the Town cannot continue to "just get by" every year because sooner or later, staff is going to have to get a salary increase and are going to -• training, new computers, etc. Mr. Patadyia commented that if the town implements any more than $.05, his customers would go outside of the town limits to buy cigarettes. Another cigarette vendor recommended that the Town go with an incremental increase, $.05 now and $,05 next year. The Mayor opened the public hearing at 8:27 p.m. to take comments Public hearing on FY and questions on proposed Ordinance No. 884 adopting the FY 2009-2010 budget 2009/2010 budget for the Town of Vinton. Mr. Lawrence gave the staff reporL He advised that the budget beinI- proposed is a $10.7 million budget that includes the General Fun Utility Fund and the Capital Improvement Fund. He noted that th proposed budget is approximately 7% less than last year's budg He further noted that last year's budget was cut by $300,000 January of this year when it became apparent that the Town revenues were not going to meet last year's projections. M Lawrence stressed that the Town will continue to offer quality servi to its citizens. I The Town .#• briefly discussed the revenue sources used to fund the budget. He advised that with these revenues, the budget cuts that were made and the proposed cigarette tax and the meals tax increase, the budget has been balanced without dipping into the General Fund's surplus. Mr. Lawrence advised that the bulk of the budget is Public Safety and Public Works. He briefly discussed the Administration budget, Special Programs budget and the Economic Development budget and acknowledged that the cuts made in these departments would not affect services but would greatly impact the employees. Mr. Lawrence reported that the proposed General Fund will be decreased by 6.3% from last year and with the $300,000 reduction in February, the difference is less than 3%. He further reported that $200,000 of the $600,000 reduction in the proposed budget came from capital. Another key reduction mentioned was the deferment of the Fire and EMS Chiefs position which will save about $100,000. He reported that there will be a hiring freeze; employees will not be getting raises this year and that the pool will close at the end of this summer, The Town Manager briefly discussed a few of the issues that brought about the decision to close the Town's Pool. 'FJ H*. Mr. Nance asked if the rate study would include costs for upgrades in the system for the areas that would transition from residential to business, and Mr. Lawrence replied that it would. Mr. Nance stressed that he wanted to recognize staff and all town employees for their service to the community and the sacrifices they have made in order to present this budget to Town Council, Ms. Fidler expressed concern with the aging of the Towns water and sewer systems and the need to make improvements to the system. Mayor Grose pointed out that he believes the Town is being operated efficiently with the resources available. Ms. Fidler stated that the Town is doing what is necessary to continue to provide good services to the citizens but that sometimes, being able to do only what is necessary is not enough. Hal Mabe stressed that the Chamber and the Town working together has to make Vinton a very business friendly town so that necessary tax revenues can be generated. He stressed the importance of attracting specialty businesses that will, in turn, attract people to destination places in Vinton. Mr. Altice added "you have to have vision and you have to have goals". Ms. Fidler reported on one of the sessions that took place at the housing symposium regarding a private business/government partnership, Mayor Grose closed the public hearing at 9:20 p.m. Mr. Lawrence reported on proposed Resolution No. 1824 Adopted Resolution appropriating additional funding in the amount of $20,000 for the No. 1824 appropriat- Veterans Monument. He noted that Roanoke County would match ing additional funding the Town's $20,000 for a total of $40,000. Mayor Grose commented for the Veterans Mon - that this $20,000 was an investment in the Town. ument. Mary Beth Layman reported on a meeting of the Vision Committee that had taken place the night before. The Mayor thanked and congratulated the Vision Committee for their success in raising the funds needed to make the monument a reality. Mr. Altice thanked the Mayor for his efforts in the fund raising Ms. Fidler moved to adopt proposed Resolution No. 1824 appropriating $20,000 for the Veterans Monument. The motion was seconded by Mr. Nance and passed unanimously by the members present. The Mayor reported that Mr. Obenchain also supports this III request for funding. Mayor Grose thanked staff for their efforts in putting the proposed budget together. The Town Manager reported on the Police Department's inspection and noted that the second platoon's inspection would take place tht next evening. Following the adjournment of the regular meeting at 9:30 p.m,, Town Council cancelled the work session that had been scheduled, I ATTEST: Darlecn R. Bailey, Town Clerk KII APPROVED: dley E, rose. Mays r r �(� '