HomeMy WebLinkAboutCouncil Actions 01-16-99 PnSesRoanoke City Council
Financial Planning Session
January 16, 1999
Airport Conference Room
A.
B.
C.
Opening Comments
Mayor and Members of City Council
City Manager
Director of Finance
II. Capital Improvement Program Update
A. Financial Assumptions
B. Review of Updated CIP by Category
C. Projects with funding needs
1. Jefferson Center
2. Police Building
3. Railside Linear Park
D. Funding Strategy
E. Other Unfunded Projects (Priority II List)
F. Future Debt Capacity
Break
III. Financial Status Information - Operating Budget
A. General Fund Revenues
1. Potential State Revenue Enhancements
2. Potential New Local Revenue Sources
3. Local and State Tax Relief
B. Cost of Home Ownership
C. General Fund Expenditures
D. Financial Benchmarking
E. Current Year Budget Status
F. FY 1999-00 Budget Projections
G. Roanoke City Schools' Budget
(8:30 a.m. - 8:45 a.m.)
(8:45 a.m. - 9:30 a.m.)
(9:30 a.m. - 9:45 a.m.)
(9:45 a.m. - 11:30 a.m.)
IV. Fiscal Issues (11:30 a.m. - 12:30 p.m.)
A. Solid Waste Management Issues (Briefing)
B. Report of City Attorney re: Council Requested Information during January 8, 1999 City
Council Meeting
C. Juvenile Detention Facility / Commission
D. Pay Plan Study
E. Y2K
F. Roanoke Renaissance Recommendations
G. CSA Utilization Management
H. Animal Control Facility
V. Closing Comments (12:30 p.m. - 1:00 p.m.)
FINANCIAL PLANNING SESSION ........... ROANOKE CITY COUNCIL
January 16, 1999
8:30 a.m.
The Council held its Financial Planning Session on Saturday, January 16,
1999, at 8:30 a.m., in the Conference Room at the Roanoke Regional Airport, with
Mayor David A. Bowers presiding.
PRESENT: Council Members C. Nelson Harris, W. Alvin Hudson, Jr., Carroll E.
Swain, James O. Trout, William White, Sr., Linda F. Wyatt and Mayor David A.
Bowers ......................................................................................................... 7.
ABSENT: None ..................................................................................... 0.
OTHERS PRESENT: W. Robert Herbert, City Manager; James D. Ritchie, Sr.,
Assistant City Manager; Wilburn C. Dibling, Jr., City Attorney; James D. Grisso,
Director of Finance; Mary F. Parker, City Clerk; Robert H. Bird, Municipal Auditor;
Willard N. Claytor, Director, Real Estate Valuation; William F. Clark, Director, Public
Works; Kit B. Kiser, Director, Utilities and Operations; George C. Snead, Jr., Director,
Public Safety; Glenn D. Radcliffe, Director, Human Development; George M.
McMillan, City Sheriff; David C. Anderson, City Treasurer; Ann H. Allen, Manager,
Accounting Services; Philip C. Schirmer, Civil Engineer; Sherman M. Stovall,
Budget/Management Analyst; Jesse A. Hall, Deputy Director of Finance; Diane S.
Akers, Budget Administrator; Kenneth S. Cronin, Manager, Personnel Management;
Lori S. Spencer, Budget Analyst; Barry L. Key, Manager, Office of Management and
Budget; and Angelita Y. Plemmer, Public Information Officer.
Mr. William G. Ammen, 4938 Greenlee Road, S. W., requested that Council
reduce the real estate tax rate by two cents in 1999, and that Council make a
commitment to reduce the City's real estate tax rate until it reaches the same level
as the City of Salem, which is $1.18 per $100.00 of assessed value.
For the purpose of clarification, discussion throughout the remainder of the
foregoing minutes relates to pages contained in a notebook entitled, "Budget and
Financial Planning Work Session - January 16, 1999" on file in the City Clerk's
Office.
Ms. Akers reviewed portions of the Capital Improvement Program for Fiscal
Years 1999 - 2003.
(See document on file in the City Clerk's Office.)
Mr. White referred to the growth rate of five per cent in the General Fund local
tax revenues; and interest earnings on bond proceeds will not be appropriated for
projects other than those included in the Capital Improvements Program until the
estimate has been realized to fund the projects. He added that he did not see the
benefit or impact of re-engineering on the capital debt structure, therefor, Council
should engage in further discussion.
Council Member Wyatt advised that items are periodically added to the Capital
Improvements Program, with the current total at approximately $300 million of unmet
needs. She stated that to her knowledge, Council has not established guidelines for
reviewing the list on an annual basis and determining priorities.
The City Manager explained that Council has before it the approved Five Year
Capital Improvements Program, which has been approved by Council and funding
is in place. He stated that ideas continue to surface, but those ideas do not move
into the approved Capital Improvements Program without Council's approval proJect
by project. He explained that those items referred to by Council Member Wyatt are
included under Priority II Unfunded Capital Projects Requests, totaling
$165,302,860.00.
The City Manager advised that Vice-Mayor Harris and Council Member White
have met with their counterparts on the Roanoke City School Board, and the School
Board would like to meet with Council to discuss funding scenarios for high school
renovation.
Mr. White inquired as to City policy on existing projects that require additional
funding, i.e.: if a project is estimated to cost $2 million, but the project actually costs
$4 million, is the City automatically obligated to fund the additional $2 million. The
City Manager advised that projects have been submitted without reliable cost
estimates, and explained that the City has assisted the School system with up front
funds for architectural/engineering services to provide accurate cost estimates for
middle and elementary school renovations. He called attention to the need to
increase estimates on the Jefferson Center Performance Hall renovation, the police
building and the railside linear park, and added that Council may want to lean in the
direction of not entertaining projects unless they are submitted with reliable
engineering estimates.
Mr. Schirmer reviewed projects completed during the last fiscal year and no
longer included in the Capital Improvements Program; viz:
Program expansion of Juvenile Detention Home
Valley-wide Storm Water Management Plan
Hunting Hills Plaza
Water Fund - eight inch line - Statesman/RClT
He reviewed new projects considered by Council and added to the Capital
Improvements Program, viz:
Regional Fire-EMS Training Center
Shenandoah Hotel Partnership
Victory Stadium Renovations
Higher Education Center
School Projects
Franklin Road Water Main Replacement
He reviewed proJects requiring additional funding for completion of the current
phase; i.e.:
Jefferson Center Performance Hall Renovation ($800,000.00)
New Police Building ($1,260,000.00)
Railside Linear Walk ($788,500.00)
Mr. Swain inquired if Roanoke County, Salem, and Vinton have contributed
funds toward the railside linear walk; whereupon, Mr. Schirmer advised that there
is approximately $300,000.00 of ISTEA money from the Virginia Department of
Transportation to support the project, therefore, some regional money is involved.
Ms. Akers reviewed the funding strategy for capital projects requiring
additional funds; viz:
Series 1994 General Obligation Bonds proceeds originally dedicated for
Juvenile Detention Home Expansion - ($1,400,000.00).
Proceeds from Roanoke Valley Detention Commission - ($700,000.00).
Series 1996 General Obligation Bond proceeds dedicated for 1-581
Interchange Project - ($800,000.00).
She advised that these sources of funds could be reallocated to the following
projects: Jefferson Center Performance Hall Renovation - $800,000.00, new police
building - $1,260,000.00, and Railside Linear Walk - $788,500.00. She stated that at
the Council meeting on Tuesday, January 19, 1999, Council will be requested to
approve the Updated Capital Improvements Program for Fiscal Years 1999-2003.
Ms. Akers stated that there is adequate funding available to continue the
Capital Improvements Program, however, there are numerous other capital needs
as contained in Exhibit 3 (Priority II unfunded capital project requests) totaling
$165,302,860.00 that have not been funded; whereupon, Ms. Wyatt and the Mayor
3
advised that there should be further discussion and prioritization. The City Manager
advised that discussion would be premature until the following is known: debt
capacity, revenue projections, and a long range policy as to when Council wishes
to hold the next bond issue.
Ms. Allen reviewed debt service:
Citizens approved by referendum and City Council authorized $39.03
million of General Obligation bonds as approved in the November 1997
Referendum to be issued on or after January 1, 2000.
$13.01 million of the authorized amount was issued in December 1997
with the remaining $26.02 million to be issued in fiscal year 2000 with
the first payment due in fiscal year 2001.
$7.5 million for Roanoke River Flood Reduction Project. Bond issuance
approved through voter referendum in April 1989.
$2.5 million for the Higher Education Center. In adopting the fiscal year
1999 General Fund budget, City Council designated funding in the
amount of $250,000.00 for these bonds.
$9.0 million for Victory Stadium. In adopting the fiscal year 1999
General Fund budget, City Council designated partial funding in the
amount of $300,000.00, with plans to add additional funding over the
next two fiscal years.
The Mayor inquired if the City has approached other Roanoke Valley
jurisdictions with regard to funding assistance for the Higher Education Center;
whereupon, the City Manager advised that Salem, Roanoke County and Botetourt
were approached, but no response was received. The Mayor stated that the point
should be made that the City of Roanoke is the only locality supporting this
important project.
Mr. White advised that sometimes, the issue of regional cooperation is
stressed to the point that it becomes a negative rather than a positive, and if a first
class higher education facility is developed, people from throughout the
Commonwealth of Virginia will spend their money in Roanoke City, therefor, there
will be a positive spin-off to the City.
Mr. Trout advised that the Higher Education Center can be used as an
economic development tool by attracting industry, thus, the City pays the price for
being the leader.
4
Ms. Allen also reviewed debt service for fiscal years 1999-2014 (page 16),
School Debt Service for fiscal year 1999 - 2014 (page 17), and the ratio of debt
service expenditures to General Fund expenditures, per capita bonded debt for
Roanoke City, Alexandria, Danville, Fredericksburg, Lynchburg, Norfolk,
Portsmouth, Richmond, Salem and Roanoke County.
Mr. Hall reviewed Revenue Highlights (pages 20 -43).
As an additional source of revenue, Mr. Hudson suggested a City of Roanoke
vehicle license plate.
Council Member Wyatt inquired about the amount of revenue that would be
generated to the City if the prepared food tax is increased by one per cent from four
to five per cent. She also requested specific figures on the amount of revenue
generated to the City as a result of the annual local option sales tax received by the
City from the sale of food and the amount of revenue as a result of the alcoholic
beverage tax.
Mr. Swain inquired about the amount of revenue that would be generated to
the City by increasing the penalty for failure to display a current vehicle inspection
sticker and failure to display a City decal; whereupon, the City Attorney advised that
the City is currently at the maximum on City decal enforcement. In regard to failure
to display a current vehicle inspection sticker, he called attention to a traffic
infraction under State Code at $200.00, the City is currently at $100.00, and the fine
could be increased to $200.00 which will not result in significant revenue to the City.
The Mayor having previously raised the question as to whether the City can
enforce prosecution and law enforcement fees, the City Attorney advised that the
prosecution fee is addressed in the Code of Virginia, 1950, as amended. He added
that the law enforcement fee is not addressed by State Code, however, all fees are
controlled by the General Assembly pursuant to the Dillon Rule, and he was of the
opinion that the City cannot impose any additional fees in criminal cases.
Following a review of potential revenue initiatives (pages 44 - 45), Mr. Swain
requested that the Director of Finance provide a recommendation with regard to a
fund balance that could be used in emergencies.
Mr. Grisso reviewed Local and State Tax Relief (pages 46 - 47).
Council Member White having previously raised a question with regard to
comparative cost of home ownership in the City of Roanoke with certain other
Virginia jurisdictions, Ms. Allen explained various scenarios in Roanoke City as
compared with Roanoke County, Salem, Alexandria, Lynchburg and Portsmouth.
She reviewed pages 49 and 50 of the CIP notebook, total expenditures per capita and
taxes paid by homeowners in the City of Roanoke.
Mr. Stovall reviewed pages 51 and 52, expenditures per capita regarding
public safety, public works, social services, parks recreational and cultural, and
community development in Roanoke City as compared with Roanoke County, Salem
and all cities average.
Ms. Akers reviewed pages 53 - 60 in connection with the General Fund
expenditures by function and General Fund expenditures by category. She advised
that General Fund expenditures are monitored monthly by both department
managers and the Office of Management and Budget; as of December 31, 1998, 52.78
per cent of the budget had been obligated; most expenditures are on-target for the
fiscal year and a mid-year expenditure review will be conducted on February 2. She
reviewed an analysis of General Fund revenue increase for fiscal year 2000 in the
amount of $3,903,546.00, which is proposed for allocation as follows: City Schools -
$951,944.00, State targeted and local match - $740,800.00, Maintenance of Effort -
$208,180.00, and Priority Items - $2,002,622.00. She also reviewed the following
priority funding items for fiscal year 2000:
Employee Pay and Benefits - For Demonstration Purposes, 3 per cent -
$1,850,000.00
Pay Plan Recommendations - ?
ICMA Match Increase - $125,000.00
Retirement Supplement to Age 65 ($159 per month) - $100,000.00
Health Insurance - $387,795.00
Police Reorganization/Program Enhancements - $200,000.00
Juvenile Detention Center Staffing - $125,000.00
Juvenile Detention Commission Operations -3 months -$100,000.00
Community Planning Staffing/Operations -$75,000.00
Social Services - Foster Care - Local Match - $35,000.00
Cultural/Human Services - $42,000.00
6
Curb, Gutter and Sidewalk - $100,000.00
Fleet Replacement - $75,000.00
Fixed Asset Maintenance - $50,000.00
Victory Stadium Capital Funding - $300,000.00
Additional Debt Service - $100,000.00
Landfill Tipping Fees - $96,700.00
State Tax on Landfills ($1 per ton) - $50,000.00
Landfill Tonnage Increase -$184,705.00
Homeowner's Free Disposal Program -$189,475.00
CIS Operating Costs - $100,000.00
50th Anniversary of Star Celebration - $25,000.00
YWCA Children's Garden - $400,000.00
Northwest Child Development Center - $400,000.00
Public Safety Automation project - Phase II - ?
Tax Rate Reduction ($.02) - $766,000.00
Other Supplemental Items - ?
Council Member Swain inquired if the City can place a cap on the amount of
funds contributed by the City to the International City Manager's Association on
behalf of City employees for the Deferred Compensation Plan.
The Mayor expressed concern in regard to the issue of recycling and since
plastic is no longer acceptable for recycling purposes, he inquired if the amount of
refuse will increase; whereupon, the Director of Public Works advised that an in-
house task force will study the issue and provide a cost benefit analysis.
7
Ms. Akers reviewed an analysis of expenditure increases:
Increase in Total Revenues
City Schools
State Targeted/Local Match
Maintenance of Effort
Balance
Priority Items
Unfunded
$ 3,903,546.00
(951,944.00)
(740,800.00)
(208,180.00)
2,002,622.00
(5,876,675.00)
(3,874,053.00)
Potential new/increased State Revenues in the amount of:
HB 599 - Local Law Enforcement
Increased Funding Deputy Sheriffs
$2,254,701.00
489.812.00
Total $2,744,513.00
Mr. White suggested that the committee which was appointed on August 18,
1996, consisting of John H. Parrott, Carroll E. Swain, James O. Trout, William White,
Sr., William F. Clark, Jesse A. Hall, and James D. Ritchie be reactivated, with the
appropriate substitutions to address solid waste management issues; whereupon,
the Mayor requested that the City Clerk call the matter to his attention at the Council
meeting on Tuesday, January 19, 1999.
The City Manager advised that tentative information from the consultant which
was engaged to study the City's pay and benefits program will be available in early
February.
The City Manager advised that City staff will report to Council on a 60 day
cycle regarding Y2K issues. The Mayor suggested that the City obtain a copy of a
video tape from Lubuck, Texas, regarding Y2K compliance.
The City Manager called attention to the rezoning of properties in Raleigh
Court and stated that one of Council's greatest concerns has been abandoned
vehicles along City curbs in the neighborhoods; therefor, Council appropriated
approximately $300,000.00 to hire rental inspectors to inspect the growing number
of rental units in the City. He advised that in the last ten years, some of Roanoke's
most solid residential neighborhoods were rezoned in mass from single family to
multi-family and the City has been unable to hire enough rental inspectors, or police
officers, or construct enough school classrooms to slow down the number of
children coming into the community unprepared over the next 10 to 20 years in order
to address all of the City's needs if this conversion rate continues to increase. He
added that unless the City is in control of the issue, zoning will become the driving
force.
8
Council Member Wyatt advised that before going forth with neighborhood
plans, the City should be aware of all legal resources so that one neighborhood is
not penalized while a land use study is prepared for another neighborhood.
Vice-Mayor Harris advised that Roanoke Renaissance is vitally needed; and
the leadership of the Raleigh Court community is looking to Council to rezone
properties in that neighborhood in what may be considerable opposition from
landlords and from persons who make their living off of multi family housing units.
Council Member Hudson expressed an interest in knowing how many property
owners actually reside in the houses they have purchased.
Council Member Wyatt inquired if Council can adopt a measure requiring a
landlord who evicts a tenant to be responsible for disposing of the furnishings;
whereupon, the City Attorney advised that the Dillon Rule prohibits adoption of such
a measure by Council.
The Mayor advised that revenue trends are disturbing and if the City is to go
forth with a Capital Improvements Program, it will be necessary to identify new
revenue sources.
There being no further business, the Mayor declared the Financial Planning
Session adjourned at 12:20 p.m.
APPROVED
ATTEST:
Mary F. Parker
City Clerk
David A. Bowers
Mayor
9
JAMES D. GRISSO
Director of Finance
CITY OF ROANOKE
DEPARTMENT OF FINAi~CE
215 Church Avenue, S.W., Room 461
R O. Box 1220 '~
Roanoke, Virginia 24006-1220
Telephone: (540) 853-2821
Fax: (540) 853-2940
JESSE A. HALL
DepuW Director
January 27, 1999
Mr. Carroll E.'Swain
3434 Kershaw Road, S.W.
Roanoke, Virginia 24017
Dear Mr. Swain:
We are writing in response to a question you raised at our recent Financial
Planning Session held at the Airport on January 16, 1999. You asked if the City
should create a fund balance to be used in emergencies or perhaps to take
advantage of certain opportunities. We assume that you are referring to economic
development opportunities whereas the City might offer incentives to entice
companies to locate in our City to expand our tax base.
The GoVernment Finance Officers Association (GFOA) recommends certain "Best
Practices" for budgeting for governments. One of their best practices pertains to
the establishment of stabtltTation funds to protect against revenue shortfalls or
unpredicted one-time expenditures. We believe this is the nature of the type of
fund and situations to which you were referring when you posed the question.
StabiliT~tion funds are most typically created by reserving a portion of the General
Fund Balance at year-end. Currently we reserve the General Fund balance each
year for $250,000 Insurance Reserve funding and Capital Maintenance and
Equipment Replacement (CMERP) per ordinances adopted by City Council. We
believe that if Council wanted to reserve a portion of the General Fund balance
each year for a stabili~,ation fund, we would need to consider that in conjunction
with the Insurance Reserve and CMERP ordinances previously adopted by City
Council.
Attached is an excerpt from the GFOA Best Practices recommendations describing
a stabili=ation fund and examples from a couple of localities that have created one.
Mr. Carroll E. Swain
January 27, 1999
Page 2
We would be pleased to discuss this with you and other members of City Council
in more detail.
Sincerely,
Grisso
Director of Finance
JDG:s
Attachments
C:
Honorable Mayor and Members of City Council
W. Robert Herbert, City Manager
Wllbum C. Dibling, Jr., City Attorney
Mary F. Parker, City Clerk
Practice 4.1 - Develop Policy on Stabilization Funds
· Principlee
· Elements
Budget
Practices
· Practice
Examplee
Practice:
A government should develop policies to guide the creation,
maintenance, and use of resources for financial stabilization purposes.
Rationale:
Governments should maintain a prudent level of financial resources to
protect against reducing service levels or raising taxes and fees because
of temporary revenue shortfalls or unpredicted one-time expenditures.
Outputs:
The policies should establish how and when a government builds up
stabilization funds and should identify the purposes for which they may
be used. Development of a policy on minimum and maximum reserve
levels may be advisable. Policies on stabilization funds should be
publicly available and summarized in materials used in budget
preparation. They also should be identified in other government
documents, including planning and management reports.
Notes:
Stabilization funds are called by many names including rainy day
funds, unreserved, undesignated fund balances, and contingency funds.
These funds may be used at a government's discretion to address
temporary cash flow shortages, emergencies, unanticipated economic
downtums, and one-time opportunities. They provide flexibility to
respond to unexpected opportunities that may help a government
achieve its goals. Policies on the use, of these funds may also be tied to
an adverse change in economic indicators (such as declining
employment or personal income) to ensure that the funds are not
depleted before an emergency arises. The minimum and maximum
amounts to be accumulated may be based on the types of revenue, the
level of uncertainty associated with revenues, the condition of capital
assets, or the government's level of security with its financial position.
Stabilization funds may be constrained by state or locai laws. Legally
required reserves should be distinguished from discretionary reserves.
Examples of Practice 4.1
ExamPle 4.1.1 - City of Corvallis, OR - Financial Plan
Example 4.1.2 - Oty of Fort Worth, TX - Finandal Mgr. Policy S*,Ttemcn-
Example 1
Practice Statement on
DEVELOP POLICY ON STABILIZATION FUNDS
SOURCE: City of Corvallis, Oregon, Ri~htsizing II: Compacting. Volume I: Financial
Plan, 1991, p. XI-4.
FINANCIAL POLICIES
Fiscal Year 1991-92 Annual Budget
REVENUE POLICIES
statements dealing with taxes and the means whereby
the city raises revenue to fund operations
Revenue Policy #1: Fund Balance
· To maintain the City's credit rating and meet seasonal cash flow shortfalls, the budget shall
provide for an anticipated undesignated fund balance between 5% and 8% for general
government and enterprise fund types, of estimated annual revenues. The fund balance shall be
exclusive of all reserves not anticipated to be readily available for use in emergencies and
contingencies.
· Should the fund balance fall below 5% of revenues a plan for expenditure reductions and/or
revenue increases shall be submitted to the City Council via the Administrative Services
Committee.
· In the event the fund balance is above 8%, the difference may be used to fund the following
activities:
one-time capital expenditures which do not increase ongoing City costs;
other one-time costs; and
ongoing or new City programs, provided such action is considered in the
context of a 3-year projection of revenue and expenditures.
· Generally, the fund balance levels are dictated by:
cash flow requirements to support operating expenses;
relative rate stability from year to year for enterprise funds;
susceptibility to emergency or unanticipated expenditure;
credit worthiness and capacity to support debt service requirements;
legal or regulatory requirements affecting revenues, disbursements,
and fund balances; and
reliability of outside revenues.
· If, at the end of a fiscal year, the fund balance falls below 5%, then the City shall rebuild the
balance within one year.
Revenue Policy ~2: Continnencv
· To help maintain services during short periods of economic decline and meet emergency
conditions, in addition to the Fund Balance, the budget shall provide for a contingency equivalent
to 2% of estimated annual operating revenues. All general government and enterprise fund types
shall maintain a contingency. The contingency shall also be exclusive of all reserves not
anticipated to be readily available for use in emergencies. The contingency is established to
provide for nonrecurring unanticipated expenditures, or to meet small increases in service
delivery costs.
· Contingencies should be planned to avoid large rate increases from one year to the next.
Where correction of a fund balance deficit causes the contingency to fall below 2% of operating
revenue, a gradual correction of the problem over a two year period is preferable to a one-time
jump in rates.
Example 2
Practice Statement on
DEVELOP POLICY ON STABILIZATION FUNDS
SOURCE: City of Fort Worth, TX, Financial Management Policy Statements,
FY96-97
CITY OF FORT WORTH
FINANCIAL MANAGEMENT POLICY STATEMENTS
IlL
Fund Balance/Retained Earnings
To main._t_~_ .' the fund balance and retained earnings of the various operating funds at
levels sufficient to protect the City's creditworthiness as well as its financial positions
from unforeseeable emergencies.
A. General Fund Undesignated Fund Balance
The City shall strive to maintain the General Fund undesignated fund balance at 10
percent of current year budget expenditures. After completion of the annual audit, if
the undesignated fund balance exceeds 10 percent, the excess must be specifically
designated for subsequent year expenditures or transferred to the Capital Projects
Reserve Fund. (The use of this Fund shall be guided by the Capital Expenditures and
Improvements Policy Statements.)
B. Retained Earnings of Other Operating Funds
In other enterprise operating funds, the City shall strive to maintain positive retained
earnings positions to provide sufficient reserves for emergencies and revenue
shortfalls. Specifically, in the Water and Sewer Enterprise Fund, an operating reserve
will be established and maintained at 20 percent of the current year's budget
appropriation for operation and maintenance, which is defined as the total budget less
debt service and capital project expenditure.
C. Use of Fund Balance/Retained Earnings
Fund Balance/Retained Earnings shall be used only for emergencies, non-recurring
expenditures, or major capital purchases that can not be accommodated through
current year savings. Should such use reduce the balance below the appropriate level
set as the objective for that fund, restoration recommendations will accompany the
decision to utilize said balance.
D. Retained Earnings of Internal Service Funds
The City shall not regularly maintain positive retained earnings in internal service
funds. When an internal service fund builds up retained earnings, the City shall
transfer it to other operating funds.
E. Debt Service Funds
The City shall maintain sufficient reserves in its debt service funds which shall equal
or exceed the reserve fund balances required by bond ordinances.
Office of the,,~,t, ......... ,
January 14, 1999
Honorable Mayor David A. Bowers and
Members of Council
Roanoke, Virginia
Subject: Financial Planning Session
Dear Mayor and Council Members:
Attached is the agenda for the Financial Planning Session which will be held on
Saturday, January 16 at the Roanoke Regional Airport Conference Room. The session will
start at 8:30 a.m. and conclude at 1:00 p.m. Breakfast v~ill be available beginning at 8:00 a.m.
We look forward to meeting with you on Saturday. Please give me a call if you have any
questions prior to our meeting.
Sincerely,
W. Robert Herbert
City Manager
Attachment
cc: James D. Grisso, Director of Finance
Mary F. Parker, City Clerk
Room 364 Municipal South 215 Church Avenue, S.W Roar~oke, Virginia 24011-!591 (540) 853-2333 F,:~ i:-~'' :; ·
C tyWeb:www ci roanoke.va.us
Roanoke City Council
Financial Planning Session
January 16, 1999
Airport Conference Room
A.
B.
C.
Opening Comments
Mayor and Members of City Council
City Manager
Director of Finance
II. Capital Improvement Program Update
A. Financial Assumptions
B. Review of Updated ClP by Category
C. Projects with funding needs
1. Jefferson Center
2. Police Building
3. Railside Linear Park
D. Funding Strategy
E. Other Unfunded Projects (Priority II List)
F. Future Debt Capacity
Break
III. Financial Status Information - Operating Budget
A. General Fund Revenues
1. Potential State Revenue Enhancements
2. Potential New Local Revenue Sources
3. Local and State Tax Relief
B. Cost of Home Ownership
C. General Fund Expenditures
D. Financial Benchmarking
E. Current Year Budget Status
F. FY 1999-00 Budget Projections
G. Roanoke City Schools' Budget
(8:30 a.m. - 8:45 a.m.)
(8:45 a.m. - 9:30 a.m.)
(9:30 a.m. - 9:45 a.m.)
(9:45 a.m. - 11:30 a.m.)
IV. Fiscal Issues (11:30 a.m. - 12:30 p.m.)
A. Solid Waste Management Issues (Briefing)
B. Report of City Attorney re: Council Requested Information during January 8, 1999 City
Council Meeting
C. Juvenile Detention Facility / Commission
D. Pay Plan Study
E. Y2K
F. Roanoke Renaissance Recommendations
G, CSA Utilization Management
H, Animal Control Facility
V. Closing Comments (12:30 p.m. - 1:00 p.m.)
JAMES D. GRISSO
Director of Finance
January 22, 1999
CITY OF ROANOKE
DEPARTMENT OF FINANCE
215 Church Avenue, S.W., Room 461
P. O. Box 1220
Roanoke, Virginia 24006-1220
Telephone: (540) 853-2821
Fax: (540) 853-2940
:07
JESSE A. HALL
Deputy Director
Honorable Mayor and Members
of City Council
Roanoke, Virginia
Dear Mayor Bowers and Members of Council:
Thank you again for the opportunity to work together Saturday in our Budget and
Financial Planning Session. We appreciate the opportunity to address and discuss some
of the City's financial planning issues and we believe this session initiated a positive
start to the fiscal year 2000 annual budget.
During Saturday's session, Council member Linda Wyatt inquired about the amount of
annual local option sales tax received by the City from the sale of food. In the 1999
Virginia General Assembly, House Bill 1434 proposes a phased-in reduction of the State
sales tax on food purchased for preparation and consumption away from the place of
purchase. Beginning July 1, 1999, the bill proposes to reduce the State portion of the
tax (currently 3.5%) to 1.5%. The bill proposed to further reduce this to 1.0% on July 1,
2000 and to.5% on July 1,2001.. This bill preserves the.5% State portion of this tax
earmarked for transportation. The bill enables localities to continue to collect the 1.0%
local option sales ta~ Each fiscal year, the City receives approximately $1.9 million in
local option tax r~venue on the sale of such food.
We hope this information is beneficial to members of City Council. Please contact me
at 853-2821 should you have any further questions.
Sincerely,
Director of Finance
JDG/aha:s
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W. Robert Herbert, City Manager
Wllburn C. Dibling, Jr., City Attorney
Mary F. Parker, City Clerk