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HomeMy WebLinkAbout2/5/2013 - Regular1 Vinton Town Council Regular Meeting Council Chambers 311 South Pollard Street Tuesday, February 5, 2013 AGENDA Consideration of: A. 6:00 p.m. - WORK SESSION 1. Briefing on petition of Williams Mullen, Authorized Agent for Clearview Manor Acquisition, LLC, for Rezoning from GB General Business District to R-3 Residential District and a Special Use Permit (SUP) for Clearview Manor Apartments, 1150 Vinyard Road. B. 6:30 p.m. - ROLL CALL AND ESTABLISHMENT OF A QUORUM C. CLOSED MEETING 1. Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 A (1) of the 1950 Code of Virginia, as amended, for discussion or consideration of personnel matters relating to review of employment agreement for the Chief of Police. D. 7:00 p.m. - RECONVENE AND ADOPT CERTIFICATION OF CLOSED MEETING E. MOMENT OF SILENCE F. PLEDGE OF ALLEGIANCE TO THE U. S. FLAG G. CONSENT AGENDA 1. Consider approval of minutes for the Council in the Neighborhood meeting of January 15, 2013. H. AWARDS, RECOGNITIONS, PRESENTATIONS I. CITIZENS’ COMMENTS AND PETITIONS - This section is reserved for comments and questions for issues not listed on the agenda. Bradley E. Grose, Mayor William “Wes” Nance, Vice Mayor I. Douglas Adams, Jr., Council Member Robert R. Altice, Council Member Matthew S. Hare, Council Member Vinton Municipal Building 311 South Pollard Street Vinton, VA 24179 (540) 983-0607 2 J. PUBLIC HEARING 1. Consideration of public comments regarding a $700,000 Community Development and Block grant to revitalize the downtown business district. a. Report from Staff b. Open Public Hearing • Receive public comments • Close Public Hearing c. Council discussion and questions K. TOWN ATTORNEY L. TOWN MANAGER ITEMS REQUIRING ACTION 1. Consider adoption of an Ordinance amending Chapter 2, Administration, Article V, Finance, Section 2-156 with regard to the fee charged for checks that are returned for insufficient funds or because there is no account. 2. Consider adoption of a Resolution allowing the Town Treasurer/Finance Director to remove outstanding Personal Property delinquent taxes over five years old from the active records to a permanent file. 3. Consider adoption of a Resolution allowing the Town Treasurer/Finance Director to remove outstanding Water and Sewer delinquent bills over five years old from the active records to a permanent file. BRIEFINGS 1. Update on water/sewer bond issuance options for water/sewer infrastructure projects. M. MAYOR N. COUNCIL 1. Financial Report for December 2012 O. ADJOURNMENT NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. Reasonable efforts will be made to provide assistance or special arrangements to qualified individuals with disabilities in order to participate in or attend Town Council meetings. Please call (540) 983-0607 at least 48 hours prior to the meeting date so that proper arrangements may be made. NEXT TOWN COMMITTEE/COUNCIL MEETINGS: • February 4, 2013 – 5:30 p.m. – Finance Committee - Finance Conference Room • February 19, 2013 – 7:00 p.m. – Regular Meeting – Council Chambers 1 Meeting Date February 5, 2013 Department Planning and Zoning Issue Briefing on petition of Williams Mullen, Authorized Agent for Clearview Manor Acquisition, LLC, for Rezoning from GB General Business District to R-3 Residential District and a Special Use Permit (SUP) for Clearview Manor Apartments, 1150 Vinyard Road. Summary Staff was contacted in May 2012 for zoning verification of 1150 Vinyard Road, Clearview Manor Apartments. Rezoning and SUP applications were received on December 4, 2012 from Mr. T. Preston Lloyd, Jr. on behalf of Williams Mullen, an authorized agent for Clearview Manor Acquisition, LLC, the owner of the Property. On July 5, 1977, the property was rezoned from B-2 to R-2, which allowed multi-family dwellings to be constructed. Clearview Manor Apartments were built in 1978. Based on the official zoning map adopted on February 15, 1983, the zoning of the Property as shown on the map was B-G Business General. On December 19, 1995, the Town amended the zoning map and ordinance, and B-G District classification was amended to GB General Business District. Under the current GB zoning district, multi-family dwelling units are not permitted. Multi-family dwellings are only allowed in the R-3 District, and are subject to the approval of a special use permit. The Property is classified as a legal nonconforming use due to its GB zoning. The zoning ordinance states that, “no building or portion of a building devoted to a nonconforming use shall be enlarged, extended, structurally altered, reconstructed or moved, unless such building or portion of a building is thereafter devoted to a use which conforms with the use regulations.” If the apartments were to be damaged or destroyed beyond fifty (50) percent of their assessed value, they could not be rebuilt without a special exception from the Board of Zoning Appeals. Town Council Agenda Summary 2 According to the Petitioner, the nonconformity status of the property is not acceptable to the Lender. The Lender has required that the owner of the Property use its best efforts to bring the Property into legal conformance, so that in the event of casualty, the facility could be rebuilt as a matter of right with the same number of units in order to adequately service the debt. The rezoning and SUP requests will require public hearings of the Planning Commission and Town Council. The Planning Commission will hold its work session and public hearing meetings on February 7, 2013 to receive public comments on the requests and make a recommendation to the Town Council. The Town Council will consider the Planning Commission’s recommendations, receive public comments, and make a final decision to either approve or deny the rezoning and SUP requests on February 19, 2013. Attachments 1. Staff report 2. Current zoning and aerial maps of the Property and the adjoining properties 3. Williams Mullen rezoning and SUP applications with supporting materials 4. Property owners notified for Clearview Manor Apartments rezoning and SUP requests 5. Electronic email received from Walter “Ray” Sandifer, 912 Colbourne Avenue, adjacent property owner regarding the rezoning and SUP requests. Recommendations No action required Meeting Date February 5, 2013 Department Council Issue Request to Convene in Closed Meeting, Pursuant to § 2.2-3711 A (1) of the 1950 Code of Virginia, as amended, for discussion or consideration of personnel matters relating to review of employment agreement for the Chief of Police. Summary Council will review the employment agreement for the Chief of Police. Attachments Certification of Closed Meeting Recommendations Reconvene and adopt Certification of Closed Meeting Town Council Agenda Summary AT A CLOSED MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, FEBRUARY 5, 2013, AT 7:00 P.M. IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILIDNG, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA. CERTIFICATION THAT A CLOSED MEETING WAS HELD IN CONFORMITY WITH THE CODE OF VIRGINIA WHEREAS, the Town Council of the Town of Vinton, Virginia has convened a closed meeting on this date, pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and, WHEREAS, Section 2.2-3712 of the Code of Virginia requires a certification by the Vinton Town Council that such closed meeting was conducted in conformity with Virginia Law. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council hereby certifies that to the best of each member's knowledge: 1. Only public business matters lawfully exempted from opening meeting requirements by Virginia law were discussed in the closed meeting to which this certification applies; and 2. Only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Town Council. Motion made by Council Member ________________ and seconded by Council Member ______________, with all in favor. ___________________________________ Clerk of Council Meeting Date February 5, 2013 Department Town Clerk Issue Consider approval of minutes for the Council in the Neighborhood Meeting of January 15, 2013 Summary None Attachments January 15, 2013 minutes Recommendations Motion to approve minutes Town Council Agenda Summary 1 MINUTES OF A COUNCIL IN THE NEIGHBORHOOD MEETING OF VINTON TOWN COUNCIL HELD AT 6:30 P.M. ON TUESDAY, JANUARY 15, 2013, AT THE CAMPBELL MEMORIAL PRESBYTERIAN CHURCH LOCATED AT 1130 HARDY ROAD, VINTON, VIRGINIA. MEMBERS PRESENT: Bradley E. Grose, Mayor William W. Nance, Vice Mayor I. Douglas Adams, Jr. Robert R. Altice Matthew S. Hare STAFF PRESENT: Christopher S. Lawrence, Town Manager Susan N. Johnson, Executive Assistant/Town Clerk Ryan Spitzer, Assistant to the Town Manager Ben Cook, Police Chief Mark Vaught, Police Lieutenant Robert Eakin, Police Officer Christopher Linkous, Fire/EMS Captain Chad Helms, Fire Lieutenant Barry Thompson, Finance Director/Treasurer Gary Woodson, Public Works Director Joey Hiner, Assistant Public Works Director Anita McMillan, Planning & Zoning Director Mary Beth Layman, Special Programs Director Kevin Kipp, War Memorial Facility Manager The Mayor opened the meeting at 6:40 p.m. Reverend James Smith welcomed everyone in attendance and led in prayer. Lynn Andrews of 208 Minnie Bell Lane asked what is happening with Preston Road. Ben Cook, Police Chief, commented that a proposal will be discussed at the upcoming Highway Safety Commission meeting on January 24th. The proposal is to put a stop sign at the intersection of Fairmont and Preston and to lower the speed limit to 15 mph. Ms. Andrews commented that the stop sign is not the problem and Mr. Cook responded that the speed limit should help a lot and that Public Works had also moved some mailboxes back from the road. The Town Manager commented that one proposal was to actually close Preston, but staff did not recommend that action. Mr. Altice indicated that any recommendation from the Commission will have to be brought to Council. The Mayor called the regular meeting to order at 6:45 p.m. The Town Manager called the roll with Council Member Adams, Council Member Altice, Council Member Hare, Vice Mayor Nance and Mayor Grose present. The Mayor introduced the Moment of Silence and Mr. Hare led the Pledge of Allegiance to the U.S. Flag. 2 Mr. Adams made a motion to approve the consent agenda as presented; the motion was seconded by Vice Mayor Nance and carried by the following vote, with all members voting: Vote 5-0; Yeas (5) – Adams, Altice, Hare, Nance, Grose; Nays (0) - None. Approved minutes of Council meeting of January 2, 2013 Vice Mayor Nance read a letter from Chief Cook naming Master Police Officer Scott Hurt as Police Officer for the month of December 2012. The Town Manager commented on the debt that the town is obligated to for the Glade-Tinker Creek Project and our part of the sewer plant improvements through the Western Virginia Water Authority in an approximate amount of $1.5 million. Staff is in the process of obtaining some proposals from the Virginia Municipal League and the Virginia Resource Authority and those proposals will be brought back to Council at a future meeting for consideration and approval. The Mayor expressed thanks to the Church for hosting the meeting and thanked staff for their attendance. He also commented on the recent award ceremony where Southern States was presented the 2012 Feed Mill of the Year Award by the American Feed Industry Association. Mr. Hare made brief comments on the financial reports for October and November 2013. The Finance Committee met on Monday and reviewed the reports and received an update from Kevin Kipp on the War Memorial. The events at the War Memorial have been steadily increasing and there is almost $30,000 booked for the rest of the fiscal year. Mr. Hare next commented on the November financial report which shows revenues in the General Fund are slightly above the projection at this point. Expenses are below the projection which is due in part to a number of open positions and the timing of some expenses. The Utility Fund is also in line with the projection. Vice Mayor Nance commented that the trends are consistent in comparing where we are now with last year. Mr. Hare moved that Council approve the October and November 2012 financial reports, the motion was seconded by Vice Mayor Nance. Mr. Thompson commented that Council will be asked to approve the write-off of personal property taxes and the delinquent water/sewer bills at their next meeting. He also stated that the implementation on November 1st of the new deposit policy for residential renters has gone well and 20 deposits have been collected. The motion was carried by the following vote, with all members voting: Vote 5-0; Yeas (5) – Adams, Altice, Hare, Nance, Grose; Nays (0) – None. Approved the October and November 2012 financial reports Comments from Council Members: Vice Mayor Nance expressed thanks to the Church for hosting the meeting and for 3 staff that was in attendance. Mr. Altice commented that the rain is an inconvenience, but it does contribute to our water system. Mr. Adams expressed thanks to the Fire and EMS Department for the service they provided to his family recently and commented on the quick response by staff to citizens’ requests. Also, he recently attended the Newly Elected Officials conference, which was very informative and after hearing comments from other officials, it made him very proud of the town and how we do business. Vice Mayor Nance moved that the regular meeting be adjourned, the motion was seconded by Mr. Altice and carried by the following vote, with all members voting: Vote 5-0; Yeas (5) – Adams, Altice, Hare, Nance, Grose; Nays (0) – None. The regular meeting was adjourned at 7:11 p.m. The Town Manager commented that the Planning & Zoning Department renovation has been completed which will improve serving the customers as well as provide a better level of security for staff. The Montgomery village pressure reducing valve replacement has been completed along with the replacement of the HVAC and garage lights at the Public Works facility. The work session began at 7:30 p.m. with an update on the $700,000 CDBG Downtown and Economic Revitalization Grant. Ryan Spitzer, Assistant to the Town Manager, began with comments that the second required Public Hearing will be at the February 5, 2013 Council meeting and later in February or early March, Council will need to approve the actual grant contract. He next began a review of a Power Point presentation that he gave to the Project Management Team on January 10th. The four main items covered were an overview of the project area, the management plan, the budget and the five key areas relating to streetscaping, gateway improvements, the Farmer’s Market, facades and business development. Under the area of streetscaping, discussion was had regarding the value of street lights and the focus area for the lights. Mr. Spitzer commented that the Project Management Team will make a final recommendation to Council in this regard. The Project Management Team will be meeting the second Tuesday of each month at 9:00 am at the War Memorial. The Team’s function will be to decide how the funds are paid, that the Town reaches all of their benchmarks, what the design characteristics will be, the type of landscaping to be used, etc. The draft Plan and Administrative Program Manual furnished with the agenda will be the guidebook for this Team. Also, a group of affected business owners will meet every other month to share their input on the project. 4 The overall budget for the project is $2,161,311. This is made up of $700,000 from the grant; $1,255,000 for the library, which consist of funds from the Town and Roanoke County; and $176,772 in façade funds from the Town, Roanoke County and participating businesses. The grant allows a total of $40,000 in administration costs. In response to a question from Mr. Hare, this amount can be used for engineering services and reimbursement of staff time, but we do not have to use the total allowed. Mr. Spitzer continued with the presentation stating the streetscaping budget is $269,010. The Town has already contributed $20,000 in the demolition of the former Steve’s garage. Discussion was had regarding the value of street lights in a downtown area and what benefit are they to revitalization other than aesthetics. Comments were made that just putting street lights will not be the answer. We will have to look at the whole Main street approach. We will have to involve business owners and will have to plan how we will keep this momentum going after the project is completed. Other parts of the streetscaping will include wayfinding signs, plantings and rehabilitation of the former Steve’s garage site. The gateway improvements budget is $69,136 for the Washington/Pollard and Virginia/Pollard intersections. The Farmer’s Market budget is $119,016 and will consist of landscaping, lighting and parking areas. The façade budget is $208,809 of which $87,838 is from the grant and $101,372 is other funds from the town and the County. The plan is to improve 11 storefronts and three have already been completed. If we do not have businesses interested in the program, we can allocate that money to another project in the downtown area or leave until the end of the project to see if a business owner would like to piggyback on those funds. The basic guidelines that are already in place will be followed with some modifications. The design has to be approved by the Project Team and by Council and the business cannot use their own contractor. It has to be a contractor approved by the Town for this project. If they do choose to use their own contractor, the Town must approve and they must meet the specifications of the grant. In business development, there is a budget of $124,600 which will cover branding, a revolving loan program and a downtown guide. A draft of the Revolving Loan Program was part of the agenda package. There will be a separate Revolving Loan subcommittee with five members and the loan will be administered by the town. For every $25,000 loaned, a business must create one lower to moderate income job for the duration of the grant program. A business has to put down 10% 5 toward any loan amount and the interest rate will be set by the subcommittee according to the prime rate. Mr. Spitzer then commented that as of February 8th, our 90-day deadline, we will have all the requirements complete except for the receipt of the environmental study. However DHCD has indicated that the delay in the study will not be a problem. The work session was adjourned at 8:30 p.m. APPROVED: ________________________________ Bradley E. Grose, Mayor ATTEST: ___________________________________ Susan N. Johnson, Town Clerk Meeting Date February 5, 2013 Department Administration Issue Conduct a Public Hearing to consider public comments regarding a $700,000 Community Development and Block grant to revitalize the downtown business district Summary DHCD requires two Public Hearings to take place for citizens to provide their comments on the project, how it will potentially affect them and its desired outcomes. This is due to the fact that public dollars are being used to fund the project. Council will also be briefed on what actions have been taken to date with the Virginia Department of Housing and Community Development as well as what actions still need to be undertaken. Council will also be able to ask any questions that they have that may have come up about the project since the last Council Meeting. The next Project Management Team Meeting will be February 12th, 2013 at 9am to discuss the Façade Program, Management Team Plan and Revolving Loan Program. Attachments None Recommendations Conduct Public Hearing—no action required Town Council Agenda Summary Meeting Date February 5, 2013 Department Finance/Treasurer Issue Consider adoption of an Ordinance amending Chapter 2, Administration, Article V, Finance, Section 2-156 with regard to the fee charged for checks that are returned for insufficient funds or because there is no account. Summary The NSF check fee has been $35.00 since January 2005. At the November 5, 2012 Finance Committee Meeting, it was discussed by the Treasurer as to the need to raise this fee to the amount allowed in State Code which is $50.00. Currently the Treasurer’s office processes approximately 5-6 of these type transactions per month. The bank charges the Town $35.00 for a transaction when it is returned. Raising this fee to $50.00 will help recover some administrative cost in handling these type of transactions. Attachments Ordinance Recommendations Motion to adopt Ordinance Town Council Agenda Summary ORDINANCE NO. ____ AT A REGULAR COUNCIL MEETING HELD ON TUESDAY, FEBRUARY 5, 2013 at 7:00 P.M. IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA 24179 AN ORDINANCE amending Chapter 2, Administration, Article V, Finance, Section 2- 156 with regard to the fee charged for checks that are returned for insufficient funds or because there is no account. WHEREAS, Section 2.2-614.1 of the Code of Virginia allows the Town to charge a fee of $50.00, or the amount of the costs, whichever is greater, in the event that a check made payable to the Town is returned for insufficient funds; and WHEREAS, Council desires to increase the fee to the full amount allowed by statute to offset the costs incurred by the Town for returned or worthless checks; NOW, THEREFORE, BE IT ORDAINED that Section 2-156 of Article V, Chapter 2 of the Code of the Town of Vinton is hereby amended to read as follows: Sec. 2-156. Fee for returned checks. A fee of $35.00 $50.00 will be assessed for the uttering, publishing or passing of any check or draft for payment of taxes or any other sums due to the town treasurer or any other agent of the town, which is subsequently returned for insufficient funds or because there is no account or the account has been closed. This ordinance adopted on motion made by Councilman ___________and seconded by Councilman __________, with the following votes recorded: AYES: NAYS: APPROVED: __________________________________ Bradley E. Grose, Mayor ATTEST: __________________ Susan N. Johnson, Town Clerk Meeting Date February 5, 2013 Department Finance/Treasurer Issue Consider adoption of a Resolution allowing the Town Treasurer/Finance Director to remove outstanding Personal Property delinquent taxes over five years old from the active records to a permanent file. Summary According to State Code Section 58.1-3940, property taxes over five years old are not collectible. Also, according to State Code, these taxes may not be written off until after December 31st of the year for which such taxes were assessed. All efforts were made to collect the taxes including reporting them to the State Debt Set-Off Program. Attachments Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, FEBRUARY 5, 2013 AT 7:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, the Town of Vinton is maintaining records of outstanding Personal Property delinquent taxes for 2007 in the amount of $2,630.73; and WHEREAS, the personal property taxes are over five years old and not collectible as prescribed by Section 58.1-3940, of the 1950 Code of Virginia as amended; and WHEREAS, the Finance Department has made all efforts to collect on these balances and has turned them over to collections and the State of Virginia Debt Set-Off Program. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby direct the Town Treasurer/Finance Director to have the outstanding accounts removed from the active records and placed in a permanent file where, if the opportunity arises, the accounts may be collected. This Resolution adopted on motion made by Council Member , seconded by Council Member , with the following votes recorded: AYES: NAYS: APPROVED: Bradley E. Grose, Mayor ATTEST: Susan N. Johnson, Town Clerk Meeting Date February 5, 2013 Department Finance/Treasurer Issue Consider adoption of a Resolution allowing the Town Treasurer/Finance Director to remove outstanding Water and Sewer delinquent bills over five years old from the active records to a permanent file. Summary As of June 30, 2012, the water and sewer accounts over five years old and inactive have been deemed uncollectible in the amount of $21,660.97. These accounts and amounts are from the following years as follows: 2002 in the amount of $ 200.95 2003 in the amount of $3,488.58 2004 in the amount of $2,662.18 2005 in the amount of $5,241.64 2006 in the amount of $4,542.68 2007 in the amount of $5,524.94 All efforts have been made to collect the delinquent water and sewer bills. The Delinquent listings are available in the Treasurer’s office and will be maintained in the event that an opportunity should arise to collect one of these outstanding bills. Attachments Resolution Recommendations Motion to adopt Resolution Town Council Agenda Summary RESOLUTION NO. AT A REGULAR MEETING OF THE VINTON TOWN COUNCIL HELD ON TUESDAY, FEBRUARY 5, 2013 AT 7:00 PM IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING, 311 SOUTH POLLARD STREET, VINTON, VIRGINIA WHEREAS, the Town of Vinton is maintaining records of outstanding water and sewer accounts; and WHEREAS, as of June 30, 2012 the water and sewer accounts over five years old and inactive have been deemed uncollectible in the amount of $ 21,660.97; and WHEREAS, these accounts and amounts are from the following years as follows: 2002 in the amount of $200.95, 2003 in the amount of $3,488.58, 2004 in the amount of $2,662.18, 2005 in the amount of $5,241.64, 2006 in the amount of $4,542.68, and 2007 in the amount of $5,524.94; and WHEREAS, the Finance Department has made all possible efforts to collect on these outstanding balances. NOW, THEREFORE, BE IT RESOLVED that the Vinton Town Council does hereby direct the Town Treasurer/Finance Director to have the outstanding amounts removed from the active records and placed in a permanent file where, if the opportunity arises, the accounts may be collected. This Resolution adopted on motion made by Council Member , seconded by Council Member __________________, with the following votes recorded: AYES: NAYS: APPROVED: Bradley E. Grose, Mayor ATTEST: Susan N. Johnson, Town Clerk 1 Meeting Date February 5, 2013 Department Finance/Treasurer Issue The Western Virginia Water Authority has begun its Peak Flow Enhancement Project at the Regional Wastewater Treatment Plant for a project cost of $17,087,000. The Town’s share of this project is 5.5% or $939,785. Additional Cost may occur and the Western Virginia Water Authority has allotted 3% additional money and Botetourt County has allotted 5% additional money for legal services and contingency items. If the Town allows for a 5% contingency ($46,989) this would bring our total project cost to $986,774. The project is expected to begin in February and we will need to make payments beginning in July 2013. The Town also has the $500,000 bridge loan on the Glade-Tinker Creek Wastewater Interceptor Replacement-Phase 2 Project. This financing allowed us to proceed with this project until the Town was ready to go out for long-term financing. The pay-off on this loan was established for 18-months and we have made two interest payments at a cost of $1,266.30 for the two months. The payoff of this loan would be included in this long-term financing. The third component is being analyzed by Gary Woodson, Public Works Director and Chris Lawrence, Town Manager. If we were to allocate another $500,000 for identified projects in the Town, that would give the biggest bang for the money spent. It needs to be determined whether the money needs to be used on Water, Sewer, or Inflow and Infiltration Projects. Over the years there have been projects that have been identified in the Town’s CIP Listing so the question is prioritizing and utilizing the funding on the Water/Sewer system in the best manner. Summary There are two sources of funding-- the Virginia Resources Authority (VRA) and the Virginia Local Finance (VML/VACo). The application process is similar through both organizations. The deadline for application submission with VRA is February 8, 2013 for a Spring Financing. Closing with VRA would be in the later part of May 2013 time frame. VML/VACo does not have a deadline and can close within 60-90 days after application approval. I have discussed our Town Council Agenda Summary 2 needs with both and either organization is willing to work the Town. Our next step in the process would be to submit an application. A $2 million bond issue with VRA and VML/VACo including all estimated issuance cost has an all-in-true interest cost estimated at 2.50 to 2.51% for 20 years. This equates to an average annual debt service of $127,331 on a level debt service schedule or $144,292 maximum to $102,812 lowest on a level principal schedule. Based on audited wastewater service charges of $1,460,204 in FY 2012 to generate an additional $144,292 would require an increase of 9.88% in the wastewater rates. In working through VRA, there is a possible refunding opportunity related to the Town’s Series 2004B VRA loan (Fire & EMS Building) which could be included with the new money loan request. Based on market rates as of January 18, 2013, $550,000 in principal from the Town’s Series 2004B loan (2016-2024) maturities are showing estimated net present value savings of $32,766 (5.958% NPV savings a percentage of refunded par). We would want to put in our resolution to obtain at least 5% in order to make the deal beneficial to the Town. These savings do not include local bond counsel cost but if we were looking to do the transaction anyway, including this refunding should not add substantially to our closing cost. Attachments None Recommendations Authorize Town Manager and Town Treasurer to proceed with Loan Application with Virginia Resource Authority. Meeting Date February 5, 2013 Department Finance/Treasurer Issue Financial Report for December 2012 Summary The Financial Report for the period ending December 31, 2012 has been placed in the Town’s Dropbox. The Finance Committee is meeting on Monday, February 4, 2013 at 5:30 pm to discuss the report and will make a presentation of the report to Council during the Council Comment Section of the Regular Meeting on February 5, 2013. Attachments Report in Financial folder in Dropbox November 5, 2012 - Finance Committee Minutes December 3, 2012 – Finance Committee Minutes Recommendations Motion to approve the Financial Report Town Council Agenda Summary Minutes of the Finance Committee Meeting Monday, November 5, 2012 At 5:35PM., Barry Thompson called the meeting to order in the Finance Office Conference Room. The members present for the meeting were Vice Mayor Wes Nance and Council Member Matt Hare, Town Manager, Chris Lawrence, Accounting Manager, Lijah Robinson and Treasurer/Finance Director, Barry Thompson. The agenda was accepted as presented. Minutes of the Tuesday, October 2, 2012 Finance Committee Meeting were approved as presented. Item One - Financial Report September 30, 2012 – Barry Thompson opened the discussion by explaining that the reporting period ending September 30, 2012 looked very favorable. The revenues for the General Fund adjusted Revenues were $1,302,170 or 90% and the Expenditures were $1,614,192 or 79%. Discussion evolved regarding the accrued revenues which were primarily made up of Sales Tax, Meals Tax, and Consumer Utility Tax. The Utility Fund Revenues reflect a level of $652,927 or 111% with Expenditures of $614,271 or 76%. The unaudited Utility Fund Revenues over/(under) Expenditures was $38,656. The Financial Report for September 30, 2012 was accepted by the Committee and will be placed on the agenda of the regular Town Council Meeting for November 6, 2012 where Council members Nance and Hare will report to Town Council. Item 2: War Memorial Monthly Review: Lijah Robinson presented the committee with a report on the Financials through September on the War Memorial. There was a much discussion and it was decided to invite Kevin Kipp, Facility Manager at the War Memorial to participate in future Finance Committee Meetings to present the War Memorial Financials from an Events Perspective. Item 3: discussion of Reporting from ACS: Mr. Hare indicated that he would like to be able to get the reports in an EXCEL format. He also indicated he would like to see an ACS monthly report. The Finance team will begin working on this request. Item 4: NSF Fee: Mr. Thompson reported to the committee that the Town currently charges $35.00 for a NSF Fee and that in doing research Lijah had determined that this fee could be raised to $50.00. The bank now charges the town $35.00 for returned items and so this is just a pass through for customers that have returned items. The recommendation would be to raise the fee to $50.00. The treasurer’s office receives about 5 to 6 returned items per month. The committee agreed to bring this to Council in their report during the Council Meeting and get a Consensus. Then an Ordinance would be presented to Council for adoption. The meeting was adjourned at 7:05PM. Minutes of the Finance Committee Meeting Monday, December 3, 2012 At 5:30PM., Barry Thompson called the meeting to order in the Finance Office Conference Room. The members present for the meeting were Vice Mayor Wes Nance and Council Member Matt Hare, Accounting Manager, Lijah Robinson and Treasurer/Finance Director, Barry Thompson. Absent was Town Manager, Chris Lawrence. Staff members present were Assistant to the Town Manager, Ryan Spitzer and War Memorial Facility Manager, Kevin Kipp. The agenda was accepted as presented. The Minutes of the November 5, 2012 meeting were not ready for approval. Item III– Reporting from ACS. It was briefly discussed that ACS was working on a monthly report. Mr. Thompson had shown a sample of the report to Mr. Hare before the meeting but it was in a rough state and there was still work to be done. IV(a) CAFR for Fiscal Year Ending June 30, 2012. John Aldridge and Travis Gilmore with Brown Edwards, Inc LLC presented to the Finance Committee an in-depth review of the financial position of the Town at June 30, 2012. Mr. Aldridge covered the Report on Comments and Suggestions and Required Communications. He indicated that there were two areas under segregation of duties that needed to be addressed. One area had already been taken care of regarding Utility Account Adjustments. The other involved input of new employees/benefits by the Human Resources area rather than the Finance Department Staff. Mr. Hare and Mr. Nance agreed that this was an issue and wanted this addressed. Mr. Thompson and Mr. Spitzer indicated that the recommendation would be discussed with the Town Manager and measures would be taken to segregate the duties. The other major area is the need for an accounting procedures manual and this has been noted for several audits. The Finance team has been charged with developing an accounting manual for its accounting system. Ten items from previous audits were cleared. Mr. Aldridge reviewed the Financial Analysis and the CAFR document. For the year ended June 30, 2012, the government’s total unrestricted net assets approximated $2.0 million or 24.5% of annual total revenues. The months in General Fund – Unassigned Fund Balance is 4.48 months up from 2011 of 1.99 months. For the Water and Sewer Fund BTA Self-Sufficiency Percentage of BTA Expenses Covered by BTA Revenues is 100%. The self- sufficiency ratio indicates the level at which business-type activities covered their current costs with current year revenues, without having to rely on subsidies or use of prior year reserves. Sales Tax growth is a measure of the state of the local economy by comparing revenue collected in the prior year to the current year. Sales Tax for 2011 was $1,172,000, 2012 was $1,248,000 which equates to an increase of $75,976 or 6.48%. Discussion regarding the financial report took place with questions from both Mr. Hare and Vice Mayor Nance. Mr. Aldridge addressed those questions. After the discussion, Mr. Hare and Vice Mayor Nance moved that the report be taken to Council for acceptance at the December 4, 2012 Council Meeting. They both thanked staff for their efforts. Mr. Thompson pointed out that Mr. Robinson had been the key liaison with Brown Edwards this year. He had prepared all the work papers for the Town and had prepared the Town’s transmittals to the State. This has resulted in a reduction of our audit cost. IV (b) War Memorial Monthly Review – Kevin Kipp – The War Memorial Facility Manager, Kevin Kipp presented to the Finance Committee a detailed review of the War Memorial as to where it has been and to where it is going. Mr. Kipp explained to the finance committee that he is getting a handle on the software and being able to get better information out as to what kind of events we are having and the revenue generated by the events. There is still work to be done but he will be making a presentation to Council in the near future to explain more of his marketing strategy and what he feels needs to take place in order to make the War Memorial more successful. IV (c) October 2012 Financial Report – Tabled until next meeting The meeting was adjourned at 8:10PM.