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HomeMy WebLinkAbout4/1/2025 - Work Session1 MINUTES OF A TOWN COUNCIL WORK SESSION HELD AT 3:00 P.M. ON TUESDAY, APRIL 1, 2025, IN THE COUNCIL CHAMBERS OF THE VINTON MUNICIPAL BUILDING LOCATED AT 311 SOUTH POLLARD STREET, VINTON, VIRGINIA MEMBERS PRESENT: Bradley E. Grose, Mayor Laurie J. Mullins, Vice Mayor Michael W. Stovall Keith N. Liles Sabrina M. McCarty STAFF PRESENT: Richard Peters, Town Manager Cody Sexton, Deputy Town Manager Antonia Arias-Magallon, Town Clerk/Administrative Manager Andrew Keen, Finance Director/Treasurer Anita McMillan, Planning and Zoning Director Nathan McClung, Assistant Planning and Zoning Director Donna Collins, Human Resources/Risk Management Director Mandy Adkins, Cultural Placemaking and Events Director William Herndon, Public Works Director Jill Acker, Assistant Public Works Director Tim Lawless, Deputy Police Chief Jamie Hurt, Capital Projects Director Jill Loope, Special Project Assistant to the Town Manager Mayor Grose called the work session to order at 3:08 p.m. Town Manager Pete Peters opened the work session by discussing the collaborative process with departments in preparing the proposed budget for adoption. He noted that the Town is currently working on its Comprehensive Plan and will soon begin developing a five-year Strategic Plan. Deputy Town Manager Cody Sexton presented a PowerPoint, which is available in the Town Clerk’s office as part of the permanent record. He began with an overview of revenues, stating that they are stable and currently sustainable. Major revenue streams such as sales and meal taxes have shown consistent growth in recent years, attributed to both new and established restaurants performing well. Continued revenue growth in meals tax is anticipated. Growth in sales tax seems to be leveling off. Mr. Peters added that the Town will begin examining reserves with the goal of increasing fund balances. He also noted that FY25 is the final year for the revenue payments from the Western Virginia Water Authority (WVWA). There was a discussion on real estate taxes, with Mr. Peters and Mr. Sexton noting that Vinton does not rely heavily on this source. Council Member Stovall inquired about ideal revenue targets. A graph showed that total revenues are expected to decrease gradually in FY26 and FY27, largely due to one-time payments ending and the inability of natural revenue growth to keep pace. The proposed revenue for FY26 is $13,435,681. Mr. Sexton reviewed graphs detailing estimated growth in personal property taxes, business license taxes, sales taxes, meals taxes, and pari-mutuel taxes. Council Member Stovall also commented on revenue from pari-mutuel wagering. 2 Mr. Sexton addressed both the General Fund and Capital Fund balances. He explained that General Fund operating cash and investments support daily expenses, while the Capital Fund is used for large, one-time projects. He noted the Town often appropriates money in the middle of the fiscal year as a result of projected surpluses in order to limit growth of the General Fund balances. Mr. Sexton and Mr. Peters provided an overview of expenditures, highlighting that the overall expenditure budget is essentially flat thanks to the prudent management of our department heads and managers. Personnel expenses make up over half of the budget, including a 3% COLA, targeted raises for Public Works and Police, adjustments to Town Council salaries, and no changes to health insurance premiums. Additional expenses of note include annual paving, which continues to increase as part of a 10-year plan to repave all roads, and funding for economic development performance agreements. The payroll budget analysis showed a proposed increase of $383,899 from the adopted FY25 budget. This includes the 3% COLA, a 1.5% raise and class adjustments for Public Works and Police Department, and a Council salary adjustment. Mr. Sexton also reviewed community organization funding requests. Council expressed its opinion on how to distribute the funding. Regarding the Capital Improvement Program, Mr. Peters noted that up to three quarters-of a million dollars is potentially needed in to complete the park, with concrete bids forthcoming. Mr. Sexton concluded with a review of the overall budget balance. Operational revenues are projected at approximately $12 million, with an additional $500,000.00 from the final WVWA payment. Planned use of the fund balance totals $913,350.00, which will appear on the expenditure side as known and anticipated performance agreements. Expenditures include $4 million for operations, $7 million for personnel, $800,000.00 for paving, $913,350.00 for performance agreements, and $500,000.00 for capital projects. There is flexibility in reallocating funds, particularly regarding the WVWA payment. A final graph illustrated that expenditures are beginning to outpace revenues by 2–3%, which may require adjustments moving forward. Following no further discussion, the meeting adjourned at 4:42 p.m. APPROVED: _________________________________ Bradley E. Grose, Mayor ATTEST: _________________________________ Antonia Arias-Magallon, Town Clerk