HomeMy WebLinkAboutCouncil Actions 05-06-98 BuStdy Roanoke City Council "- '
Fiscal Year 1998-99 Budget St~y Session ·
Wednesday, May 6, "~'l~9~J8 : ::...'; i '~ "'" · ::.,:~:
8:30 a.m.
Social Services Conference Room, Room 306, Municipal North
Call to Order/Roll Call.
Statement of Purpose and Welcome. Mayor Bowers.
Remarks by the Mayor and Members of Council.
Remarks by the Director of Finance.
Remarks by the City Manager.
Supplemental Budget Requests.
General Fund: ; .,~.:: ,~ .....
a. Curb, Gutter and Sidewalk Program.
b. Neighborhood Cleanup. - . ·
c. Maintenance of Peters Creek Road Extension and Brandon Avenue.
d. Victory Stadium Capital Funding.
e. Roanoke Education Center Capital Funding.
f. Virginia Institute for Social Services Training Activities (VISSTA) Program.
g. Social Services - Full Time Attorney.
h. Police Minority Recruiting Program.
i. Economic Development - Small and MinOrity Business DeVelopment.
j. Judicial Sale of Real Property for Delinquent Taxes.
k. Juvenile Justice Program Nurse.
I. City Jail - Additional Positions.· -~'-~'
m. Auditor- City Schools. :::" ':'~',, ',~':.-: :~' :::"'; ~:'~ '"'::~'~?, ~'~":~"~";:: {:. !~'::'~"~':~'? ?:':;~: ~- .
n. ICMA-RC Deferred Compensation ~pioy~Matdi:;:~i
o. Enhancements to the City of R~anoke'~Pensi~<~m Plan and Health Insurance.
Supplement to Future Retiree~'Until Age 65.' :~" ' ' ' '
Water and Sewa~3e Treatment Funds:
p. Utility Fee Adjustments.
Civic Center Fund:
q. In-House Concessions.
City Information Systems Fund:
r. Additional Positions.
Items Referred by Council to FY 1998-99 Budget Study.
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Increased Compensation for Voting Machine Mechanics.
Pay Raise (COLA) for Retirees.
Fees for Use of Recreational Facilities (City Government/Schools).
School Sports Complex.
Additional Pension Plan Enhancements.
Study of the City Pay Plan and Benefits.
Additional Funding for Convention and Visitors Bureau.
Cultural and Human Services Committees.
8. HUD Budget.
9. Adjournment.
Note: The meeting with the Roanoke City School Board will be held on Thursday,
May 7 at 8:30 a.m.
The Council of the City of Roanoke met in 1998-99 budget study on Wednesday,
May 6, 1998, at 8:30 a.m., in the Social Services Conference Room, Room 309,
Municipal North, with Mayor David A. Bowers presiding.
PRESENT: Council Members C. Nelson Harris, John H. Parrot, Carroll E. Swain,
James O. Trout, William White, Sr., Linda F. Wyatt and Mayor David A. Bowers ...... 7.
ABSENT: None .............................................................................................. 0.
OFFICERS PRESENT: W. Robert Herbert, City Manager, James D. Ritchie, Assistant
City Manager, Wilburn C. Dibling, Jr., City Attorney, James D. Grisso, Director of
Finance, Mary F. Parker, City Clerk, Willard N. Claytor, Director of Real Estate
Valuation, and Robert H. Bird, Municipal Auditor.
OTHERS PRESENT: Kit B. Kiser, Director of Utilities and Operations, George C.
Snead, Director of Public Safety, Glenn D. Radcliffe, Directorof Human Development,
William F. Clark, Director of Public Works, Barry L. Key, Manager of Management
and Budget, Diane S. Akers, Budget Administrator, Sherman M. Stovall,
Budget/Management Analyst, Jesse A. Hall, Deputy Director of Finance, Council
Member-Elect W. Alvin Hudson, Jr.
A summary of the proposed fiscal year 1998-99 budget is as follows:
Two major components of General Fund budget expenditures are Roanoke City
government and the local share of the Roanoke City Schools' budget. The following
are the expenditure levels recommended for fiscal year 1998-99 and related
information:
Recommended $Change from % Change
Sector Budget FY 1997-98 from 97-98
City government
Local Share of
School Budget
$125,997,912 $5,944,699 4.95%
42,539,909 1,366,487 3.32%
Totals $168,537,821 $7,311,186 4.53%
The recommended City budget is anticipated to increase $7,311,186, or 4.53 per
cent, over the current fiscal year and includes funding for the following major
expenditures:
Local Support for Schools ($1,366,487) - Additional funding for Roanoke City
Public Schools.
· Employee Compensation ($2,467,919) - 4.0 per cent average pay raises.
· Social Services Program Expenditures ($853,986) - Funding will increase for
programs such as Foster Care, Subsidized Adoption, General Relief, and
Welfare Reform.
· Highway Maintenance ($347,000) - Increased State funding will be used for
street maintenance, including paving.
· Fixed Asset Maintenance ($50,000) - Increased funding will be used for
maintenance of City facilities.
· Computer Services ($263,421) - Funding will increase for the continued
operation of the City's computer services.
Recommended Supplemental Budget Requests ($1,685,134):
· Curb, Gutter and Sidewalk - $100,000
· Neighborhood Cleanup - $100,000
· Maintenance of Peters Creek Road Extension and Brandon Avenue - $26,000
· Victory Stadium Capital Funding - $300,000
· Roanoke Education Center Capital Funding - $250,000
· Virginia Institute for Social Services Training Activities (VISSTA) Program
$242,948
· Social Services - Full-Time Attorney - $54,990
· Police Department Minority Recruiting - $35,000
· Economic Development - Small and Minority Business Development - $49,500
· Judicial Sale of Real Property for Delinquent Taxes - $95,000
· Juvenile Justice Program Nurse - $42,805
· City Jail - Additional Positions - $338,891
· Auditor - City Schools - $50,000
ICMA-RC Deferred Compensation Employer Match
Retirement Plan Enhancements
All other City budget expenditures have increased $277,239.
Tax dollars are proposed to be spent as follows:
Community Development - $1,175,774
These programs seek to serve the community by encouraging quality development
within the City and strengthening its job and tax base through various economic
development activities, viz: Community Education, Community Planning and
Economic Development.
Education- Local Support - $42,539,909
The importance of quality education for our children is reflected in the Roanoke City
Schools budget. The total school budget of $92,081,915 includes local support of
$42,539,909.
General Government $10,815,649
The City Administration departments exist to ensure that quality of services are
provided for the well-being of our citizens. These departments include City Council,
City Treasurer, Real Estate Valuation, City Manager, City Attorney, and Director of
Finance, etc.
Health and Welfare - $23,420,110
To deliver protective, preventive and supportive services to assist residents in
maintaining economic self-sufficiency; viz: Human Service Committee,
Hospitalization Program, Human Development Support, and Social Services.
Judicial Administration - $4,163,875
To provide for the fair, impartial and efficient administration of justice in all areas of
the law.
Parks, Recreation & Cultural - $5,664,007
The City Market, Libraries and recreational programs provide community
enhancement through recreation and leisure opportunities for the citizens and
visitors to the Roanoke Valley.
Non-Departmental - $19,851,380
Includes expenditures which are not included in other major categories, such as
Contingencies and Transfers to Other Funds.
Public Safety - $38,364,218
Programs such as Fire/Emergency Medical Services, Jail and the Police Department
are operated to provide a safe and secure environment for our citizens and property.
Public Works - $22,542,899
Departments in the Public Works sector include Building Maintenance, Snow
Removal, Streets and Traffic, etc. These departments maintain City facilities,
streets, and parks, as well as provide refuse and recycling collection, and operate
an emergency 911 and communications center.
Mr. Trout moved that Council refer the contracts of the Constitutional Officers, viz:
Commissioner of the Revenue, City Treasurer, City Sheriff, Commonwealths'
Attorney, and Clerk of Circuit Court to the City Manager for study, report and
recommendation to Council prior to July 1, 1998. The motion was seconded by Mr.
Parrott and unanimously adopted.
The Director of Finance presented summary remarks with regard to the proposed
fiscal year 1998-99 budget. He noted that the General Fund budget is $168.5 million
or up 4.53 per cent; sales tax is not performing at the level that was estimated in
1998; the budget is in balance with revenues; and tax rates are recommended to
remain the same with the exception of water and sewer taxes.
Council Member Swain inquired as to the cost of enacting a two cents reduction in
the real estate tax rate; whereupon, the Director of Finance advised that each one
cent reduction equals $368,000.
The City Manager presented a brief description with regard to recommended 1998
budget contents.
(See proposed 1998-99 budget on file in the City Clerk's Office.)
The followin~l Supplemental BudQet items were discussed-
Curb, Gutter, and Sidewalk Program which consists of building new, repairing, or
replacing existing curb and sidewalks. Projects are chosen by a rating and
evaluation system based on certain established criteria. Funding in the amount of
$100,000 will be provided from existing General Fund revenue.
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Mr. White advised that it would be helpful to have a footnote linking funds already
appropriated for curb, gutter and sidewalk with the amount recommended for
appropriation in the Supplemental Budget.
Neiqhborhood Cleanup: Citizens of the City of Roanoke can dispose of trash, limbs,
bulk items and other refuse at the Roanoke Valley Resource Authority Transfer
Station at no cost as part of the Homeowner Disposal program. The actual disposal
cost is underwritten by the City. The purpose of the program is to allow citizens to
transport and dispose of refuse and materials at their convenience and to reduce the
volume of materials that would need to be collected by City refuse collection staff.
The City also provides manpower and financial support for special cleanup
programs undertaken by citizens and neighborhood/community organizations.
Special cleanup programs focus on removing bulk materials, debris, and other
refuse from neighborhoods and public rights of way. The purpose of the special
clean-up programs is to improve the aesthetic appearance and the public health and
safety of the community.
The volume of refuse collected in connection with the Homeowner Disposal program
and special cleanup programs has increased significantly since the inception of
both programs. It is projected that approximately 4,800 tons of refuse will be
disposed of in connection with both programs. Additional funding is needed to
provide for the tipping fee charged by the Roanoke Valley Resource Authority for the
Homeowner Disposal Program and special cleanup programs.
Additional funding, in the amount of $100,000, will be provided from existing General
Fund revenue.
Maintenance of Peters Creek Road Extension and Brandon Avenue: The completion
of the Peters Creek Road Extension and the Brandon Avenue widening projects will
add approximately ten acres of highly visible public property that must be
adequately maintained. The additional acreage consists of steep slopes, wide right-
of-way areas, and deep ditches. Much of the area is heavily landscaped and labor
intensive to maintain.
Additional funding is needed for one full-time position and seasonal manpower to
provide the required level of maintenance on highly traveled and visible pieces of
City property. The current level of available manpower is not sufficient to continue
maintenance of existing property and accommodate the new property. If additional
funding and manpower are not provided, the frequency of maintenance of existing
public areas will be reduced and the new areas will not receive the required
maintenance.
Inadequate maintenance of public areas can lead to health and safety problems such
as improper drainage, mud slides, litter, and sight clearance limitations. The
Commonwealth of Virginia has maintenance standards which must be met to be
eligible for highway maintenance funds.
Additional funding, in the amount of $26,000, is recommended for one full-time
position and seasonal manpower for the maintenance of public property, which
funding will be provided from additional highway maintenance funds received from
the Virginia Department of Transportation and existing General Fund revenue.
There was discussion with regard to Virginia Department of Transportation
maintenance of the 1-581 corridor. Mr. Clark advised that Carilion Health Systems
has committed to fund landscaping and maintenance on the Elm Avenue/I-581
Interchange, and the necessary permits have been acquired; however, he was
unsure as to when Carilion plans to start the project. He stated that the City hopes
to use Carilion's example as a marketing tool to encourage other
persons/businesses to Adopt-A-Highway.
It was stated that the condition of the 1-581 ramps leading into and out of the City
should be called to the attention of the City's representatives to the General
Assembly; whereupon, Mr. White suggested that the matter be referred to the
Legislative Committee for discussion as to inclusion in the City's 1999 Legislative
Program.
Without objection by Council, the Mayor advised that the matter would be referred
to the Legislative Committee.
It was also suggested that the Mayor forward a letter to the City's representatives
to the General Assembly, on behalf of the Members of Council, setting forth the
City's concems over the lack of maintenance by VDOT on 1-581.
The City Manager was also requested to provide Council with a briefing at an
upcoming Council meeting on 1-581 maintenance, plans of Carilion Health System
to participate in the Adopt-A-Highway program, and the Elm Avenue clover-leaf.
Victory Stadium Capital Funding: Victory Stadium is the primary venue in the City
of Roanoke for athletic events and other forms of entertainment. The facility has
been subject to flooding and is in need of general repair and renovation. The
demands of modern events has limited its utilization. Significant physical
improvements are necessary, or at a minimum, the masonry work and concrete
surfaces need to be stabilized to prevent further deterioration.
A recommendation on physical improvements to Victory Stadium will be included
as a part of the Comprehensive Parks and Recreation Master Plan that is being
updated. Funding for improvements to Victory Stadium is not included in the
current Capital Improvement Program.
It is recommended that capital funding be provided for improvements to Victory
Stadium using a phased approach. Annually over the next three to five years,
Council could incrementally add capital funding for the project to support the sale
of bonds. If adopted as a part of a multi-year strategy, with annual funding of an
additional $300,000 each year, Council could support $9.0 million of General
Obligation Bonds after three years which would be issued through the Public
Finance Act.
Roanoke Education Center Capital Fundin.q: The Roanoke Education Center is a
collaborative project that focuses on meeting the educational and workforce training
needs of this region. The Education Center, which will be located in the former
headquarters building of the former Norfolk and Western Railway, will house 12
universities and colleges and two organizations that provide workforce training.
The Roanoke Higher Education Center Authority, established by the 1997 Virginia
General Assembly, will be responsible for managing the Education Center and
providing centralized operational services. The total projected cost of the project
is $22.4 million, with a contribution from the City in the amount of $2.5 million.
Funding for the project is not included in the current Capital Improvement program.
It is recommended that the City provide capital funding of $250,000 which will
support $2.5 million of General Obligation Bonds for the Roanoke Education Center.
General Obligation Bonds would be issued by Council through the Public Finance
Act.
Vir.qinia Institute for Social Services Training Activities (VlSSTA) Pro.qram: The
Virginia Institute for Social Services Training Activities program is a collaborative
effort between the Virginia Department of Social Services and Virginia
Commonwealth University. Currently, there are four regional training centers
located throughout Virginia. The Piedmont Area Training Center, currently located
in Montgomery County, coordinates and provides all training activities for the
Department of Social Services employees in the 30 cities/counties within the
Piedmont Region which includes the City of Roanoke.
The Virginia Department of Social Services has asked the City of Roanoke
Department of Social Services to assume responsibility for the Piedmont Area
Training Center for the VlSSTA Program and relocating the office and staff to the
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City of Roanoke. Relocating the VISSTA program to Roanoke will allow the City to
have more input into the training programs offered in this region, especially in
regard to child protective services, adult services, benefit programs, and the
supervisory/management curriculum. VlSSTA staff will also be available to address
the specific training needs of the City of Roanoke Department of Social Services,
outside of the normal training curriculum.
Operation of the VlSSTA program will include the addition of three staff positions.
The cost of operating VlSSTA is 100 per cent reimbursable from the Virginia
Department of Social Services.
It is recommended that the City accept the administrative responsibility for operating
the VlSSTA Program and authorize the addition of three staff positions. Funding for
operation of the program will be provided by the Commonwealth of Virginia
Departmentof Social Services at a cost of $242,948 ($83,248 personal services and
$159,700 operating expenditures).
Social Services - Full-Time Attorney: In fiscal year 1996-97, Council provided for
specialized legal representation for the Department of Social Services in the areas
of custody disputes, foster care and the termination of parental rights and
jurisdictional disputes. Legal representation has been provided on a contract basis.
The Foster Care Program is subject to stringent Federal, State and judicial oversight.
In the case of jurisdictional disputes, the presence of specialized legal
representation has enabled the Department of Social Services to vigorously defend
against efforts to make the City of Roanoke the responsible party in disputes that
cross jurisdictional boundaries. The need for more intensive legal representation for
the Department of Social Services has grown since Council provided funding for
legal representation on a part-time contract basis.
The impact of the required additional hearings will result in the need for an
increased level of legal representation. There is the need to convert the part-time
contract attorney position to full-time to meet the increased level of legal
representation required. The use of a part-time attorney on a contract basis has
resulted in the cost avoidance of approximately $475,000 and it is projected that
converting the position to full-time will result in additional cost avoidance of
$200,000 to $300,000.
It is recommended that additional funding be provided to convert the part-time
contract attorney position to a full-time position. Funds currently budgeted for the
part-time contract position ($24,630) will be combined with the additional
appropriation of $30,360 to fund the full-time position.
The Mayor advised that because of a potential conflict of interest, he would not vote
on the matter.
Police Department Minority Recruiting Program: The City of Roanoke and the
Roanoke Police Department are committed to establishing a police force that is
ethnically representative of the community. The Police Department has recently
experienced difficulties in recruiting minority police candidates. Current efforts to
recruit minority candidates focus on tangible benefits such as salary, fringe benefits,
and working conditions. The current recruiting program does not address factors
which have been identified as barriers to fulfilling recruiting objectives. These
factors include anti-police attitudes, negative police image, unemployment, a
relatively small pool of viable minority candidates interested in police work, and a
lack of visible minority-community/community support.
An alternative recruiting strategy will be developed to address those factors which
have been identified as barriers to recruiting minority police officers. Additional
funding is needed for the implementation of a new recruiting strategy for minority
police officers.
It is recommended that funding be provided for development and implementation of
a minority recruiting program for the Police Department, in the amount of $35,000.
Upon question as to a projected date for Council to be briefed on the results of the
program, Mr. Snead advised that Chief Gaskins is reviewing the basic concept of the
recruiting plan, and Council will be briefed sometime during early summer prior to
moving forward with the new strategy.
Economic Development - Small and Minority Business Development: There is a
need to provide specialized outreach to small businesses and women and minority-
owned businesses within the City of Roanoke. Small business development is an
integral part of inner-city revitalization efforts. An additional position is needed to
focus efforts to coordinate the development and implementation of strategies to
increase the participation of women and minority-owned businesses in the City's
procurement process.
The additional position will also administer Equal Employment Opportunity Program
investigations. This includes the investigation of employee and applicant
complaints of alleged disparate treatment and working with departmental managers
to resolve complaints.
It is recommended that funding be provided to the Office of Economic Development
for an additional position for small and minority business development and the
administration of the Equal Employment Opportunity Enforcement Program, in the
total amount of $49,500 ($42,443 personal services and $7,057 operating
expenditures).
Vice-Mayor Wyatt spoke to the inappropriateness of having the same employee
address small and minority business development and Equal Employment
Opportunity Enforcement Program investigations. She stated that the person
assigned to address Equal Employment Opportunity matters should be someone
from outside of the City system who is contracted on a case by case basis so that
the City employee feels that he or she is getting a fair hearing. She requested that
the City Manager report to Council with regard to the feasibility of contracting out
the position to a retired judge who is perceived to be fair minded by the community.
Mr. White and Mayor Bowers expressed similar concerns.
Judicial Sale of Real Property for Delinquent Taxes: In October, 1997, Council
approved the judicial sale of certain real property for delinquent taxes and
assessments. Conducting the tax sale not only serves to collect delinquent taxes
and assessments, but more importantly puts the property in the hands of
responsible landowners who will properly maintain the property and pay future real
estate taxes. As a result, neighborhoods benefit by having responsible property
owners.
Outside legal firms will be used to conduct the property sale. Title search fees,
property appraisal fees, auction company fees, and advertising expenses will be
incurred and must be paid prior to the actual property sale. Additional funding is
required for expenses associated with the property sale.
It is recommended that additional funding, in the amount of $95,000, be provided
from existing General Fund revenue generated from delinquent real estate tax
collections.
Juvenile Justice Program Nurse: The residential juvenile justice programs at Youth
Haven, Crisis Intervention, and the Juvenile Detention Center need specialized
assistance with the provision of medical care, specifically as it relates to dispensing
medication to youth housed at the facilities. Currently, counselors at the three
residential facilities dispense medication. The provision of medical services is done
on a contract basis by a private physician. The contract physician does not monitor
the administering of medications and the required documentation that must be
maintained.
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While juvenile justice program counselors attend a medication agent class when
hired, they are not trained in the provision of daily medical care. The extent of
medical interventions, preventive services, and medical treatment is limited due to
the lack of a dedicated medical service position. A nurse is needed to manage the
administration of the medical program at the juvenile justice residential facilities,
specifically as it pertains to medical treatment screening, dispensing medications,
monitoring for drug relations and side effects, and maintaining the required
documentation. The nurse position will also provide in-house medical training to
existing staff and be used as a relief counselor.
It is recommended that additional funds, in the amount of $42,805, be provided for
a nurse position for the residential juvenile justice programs, with funding to be
provided from Virginia Juvenile Community Crime Control Act revenue and partial
funding from existing General Fund revenue.
City Jail - Additional Positions: Since completion of the City Jail Annex, the inmate
population has increased more than the operational capacity of the City Jail.
Additional deputy sheriff positions are needed to ensure the safety and security of
inmates, visitors, and staff. Based on an established staffing formula, the
Commonwealth of Virginia Compensation Board has approved the addition of ten
positions at the City Jail. With an increased workload due to the growing inmate
population, the additional positions will enable City Jail staff to perform their duties
in a more safe and efficient manner.
It is recommended that funding for the addition of ten positions (nine deputy sheriffs
and one secretary) be provided, in the amount of $338,891, with funding to be
provided from the Commonwealth of Virginia Compensation Board and local share
to be provided from existing General Fund revenue.
The City Manager presented a communication advising that on May 4, 1998, Sheriff
McMillan received notification from the State Compensation Board that 11 new
positions had been approved for Roanoke, one position more than was included in
the recommended budget. Mr. Herbert noted that the cost of this additional position
is $31,826, with $24,113 to be provided by the State and a local cost of $7,713. He
recommended that the proposed budget be adjusted to reflect this change in
staffing and funding.
(For full text, see communication on file in the City Clerk's Office.)
Auditor - City Schools: The City of Roanoke School Board has requested the
Municipal Auditor to perform internal auditing services. Currently, the Municipal
Auditor monitors the external audit of the School Board. The provision of internal
audit services for the School Board will require the addition of an auditor position.
It is recommended that additional funding, in the amount of $50,000 ($36,406 for
personal services and $13,594 for operating expenditures), be provided for an
auditor position to provide internal audit services for the Roanoke City School
Board.
ICMA-RC Deferred Compensation Employer Match: With adoption of the 1998
budget, Council authorized a matching contribution of $5.00 per pay period to the
International City Management Association Retirement Corporation Deferred
Compensation Plan on behalf of any non-temporary classified employee of the City
who made a contribution of $5.00 or more per pay period. There is a growing trend
among employers, governments included, to offer incentives to encourage
employees to save for retirement, even if a basic retirement plan is provided.
It is recommended that funding be provided to increase the $5 per pay period
employer match to $10 per pay period to the ICMA-RC Deferred Compensation
Program for classified regular employees, for a total employer match of $260, with
source of funding to be provided by reducing the contribution rate to the Pension
Plan by .25 per cent.
Mr. Trout moved that Council approve the following Supplemental Budget items as
above described: Curb, Gutter and Sidewalk Program, Neighborhood Cleanup,
Maintenance of Peters Creek Road Extension and Brandon Avenue, Victory Stadium
Capital Funding, and Virginia Institute for Social Services Training Activities
Program. The motion was seconded by Mr. Swain and adopted.
Mr. Parrot moved that Council approve the following Supplemental Budget item as
above described: Social Services - Full Time Attorney. The motion was seconded
by Mr. Trout and adopted, Mayor Bowers abstained from voting due to a potential
conflict of interest.
It was the consensus of Council that Supplemental Budget item - Enhancements to
the City of Roanoke Pension Plan and Health Insurance Supplement to Future
Retirees Until Age 65 would be discussed at 10:00 a.m., on Thursday, May 7.
At 10:05 a.m., the Mayor declared the meeting in recess.
At 1:00 p.m., the 1998-99 budget study session reconvened.
There was discussion with regard to the following Supplemental Budget items:
Water Rate Increase: Through periodic review, an adjustment of service charges is
a prudent business practice. Water rate adjustments were last approved in fiscal
year 1991 to pay for a major capital improvement of the water production facilities.
In addition to providing for capital improvements, the rate adjustment provided for
five years of operating expenses, assuming inflation of four per cent annually.
Based on current water rates, operating expenses and debt service will exceed
revenue and retained earnings by fiscal year 2000-2003. This projection includes a
revenue adjustment associated with a reduction in the volume of water purchased
by Roanoke County. A five per cent increase in water rates beginning August 1998,
and an additional five per cent effective July 1999, is needed to provide revenue
sufficient to cover operating expenses and debt service. It is projected that a rate
increase, phased in over two years, will result in additional revenue of $398,750 per
year.
It is recommended that water fees and charges be increased, five per cent effective
August 1, 1998, and five per cent effective July 1, 1999.
Sewer Rate Increase: The periodic review and adjustment of service charges is a
prudent business practice. Water rate adjustments were last approved in fiscal year
1994. Revenue from the rate increase was used to fund the City of Roanoke share
of the sewage facilities expansion program, provide for pipeline maintenance, and
provide for plant operations and maintenance expenses. The estimated cost of the
City share for the project, in fiscal year 1994, was $15.77 million. The sewage
facilities expansion program is on-going and the City share is now estimated to cost
$25.0 million. The cost increase is due to inflation, more capacity at the sewage
treatment plant, and lowering the depth of the interceptor pipelines to avoid siphons
at stream crossings.
Based on current sewer rates, operating expenses and debt service will exceed
revenue and retained earnings by the beginning of fiscal year 1998-99. A five per
cent increase in sewer rates beginning August 1998, and an additional five per cent
effective July 1999, is needed to provide revenue sufficient to cover operating
expenses and debt service. It is projected that a rate increase, phased in over two
years, will result in additional revenue of $335,000 per year. The additional revenue
will be sufficient to cover operating expenses and debt service.
It is recommended that sewer fees and charges be increased by five per cent
effective August 1, 1998, and five per cent effective July 1, 1999.
Civic Center In-House Concessions: The Civic Center is currently under contract
with an outside vendor for the sale of food and beverage products. This contract
terminates on April 1, 1999. Public assembly facilities throughout the country
operate their food service programs via contracted services or by hiring their own
staff. The primary advantage for providing the service with in-house staff is that the
facility retains all profits from the food service operation. The current food service
vendor pays the Civic Center 34 per cent of net concession sales, after taxes.
Concession revenue has increased significantly during the past few years, primarily
due to the addition of hockey games and the high per capita spending by patrons
at hockey games. Concession sales provide the opportunity to positively impact the
General Fund subsidy that is required to operate the Civic Center. It is projected
that in the first full year of operation, in fiscal year 1999-2000, the in-house operation
will increase Civic Center net revenue in the amount of $150,000. The provision of
in-house food and beverage services at the Civic Center will require the addition of
two positions, a food and beverage manager and an assistant food and beverage
manager, to administer implementation of the program.
It is recommended that additional funding be provided in the amount of $140,847
($46,287 for personal services and $94,560 for operating expenditures) for two
positions to implement the provision of in-house food and beverage service at the
Civic Center.
City Information Systems -Additional Positions: Over the past year, City Information
Services has implemented many new technology initiatives including e-mail, Internet
access, and client-server based business application systems. A number of
technology initiatives are planned forfiscal year 1998-99. These projects include an
event management system for the Civic Center, a citizen services tracking system,
a meals tax and business tax system, and a utility billing system.
The implementation of new technology initiatives and business systems requires
additional technical support. Two additional positions are needed to support the
existing and new business application systems. Without adequate technical support
for existing and new business systems, the delivery of services to user departments
will be compromised.
It is recommended that funding, in the amount of $81,639, be provided for two
additional positions in City Information Systems.
The Mayor requested that Council be provided with a status report on the new
Citizens Service Center within 90 - 120 days. He advised that citizens continue to
call his office with complaints and he would prefer that the telephone calls be
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directed to the Citizens Service Center desk rather than to his office and that the
person staffing the Citizens Service Center advise the caller that they represent the
Mayor's Office.
Mr. Swain moved that Council approve the following Supplemental Budget items as
above described: Water and Sewer Rate Increases, In-House Concessions at the
Civic Center, and Additional Positions for the City Information System. The motion
was seconded by Mr. Trout and adopted.
It was the consensus of Council that Additional Pension Enhancements would be
discussed on Thursday, May 7.
The following items were previously referred by Council to 1998-99 budget study:
Increased compensation for voting machine mechanics
Pay raise (COLA) for retirees
Fees for use of recreational facilities (City Government/Schools)
School sports complex
Additional pension plan enhancements
Study of the City pay plan and benefits
Additional funding for the Convention and Visitors Bureau
Cultural and Human Services Committee
On February 17, 1998, the Roanoke City Electoral Board having submitted a request
to Council for an increase in the hourly wage of voting machine mechanics who
serve the City during each election, the City Manager advised that since the request
involved a total appropriation of $350.00, which increased the hourly rate to $7.40,
funds have been incorporated in the 1998-99 fiscal year budget.
On May 4, 1998, Mr. Clarence E. Martin, representing Roanoke City retirees,
requested that Council approve a permanent cost of living raise for City retirees,
and that an annual permanent cost of living adjustment be approved by Council.
In response to the request, the City Manager and the Director of Finance submitted
a joint report advising that eligible members of the City of Roanoke Pension Plan
received a 2.9 per cent permanent cost of living adjustment on July 1, 1997, which
is the same percentage increase that social security recipients received in January
1997; this is the third consecutive year that a permanent cost of living adjustment
has been provided to eligible retirees; and following discussions with retirees, the
Board of Trustees and the City Administration recommend the following:
*Effective July 1, 1998 and payable July 31, 1998, a 2.1 per cent permanent increase
to a member's or surviving spouse's annual retirement allowance. This increase
does not apply to any incentive payments made under the Voluntary Retirement
Incentive Program established by Ordinance No. 30473- 41591, adopted on April 14,
1991. The increase applies to those retirees who retired on or before July 1, 1997,
who meet the following criteria:
1. Any member retired under normal service with at least ten years of creditable
service; or
2. Any member retired on non-occupational disability with at least ten years of
creditable service or any member retired on occupational disability, regardless of
service; or
3. Any member retired under early service retirement, vested service retirement with
at least ten years of creditable service; or
4. Any surviving spouse of a member who was entitled to a benefit, provided the
deceased member would have qualified under (1), (2), or (3) above; or
5. Any member retired under Chapter 22.1, Police and Fire Pensions, prior to
January 1, 1946, or the surviving spouse of any such member.
It was explained that approximately 90 per cent of 1,222 retirees receiving benefits
as of April 30, 1998, will be eligible for this increase; the average annual increase in
retirement allowance is $160, costing the pension fund an additional $175,200
annually; the actuarial cost of a 2.1 per cent permanent cost of living adjustment is
estimated at $1.5 million to be funded over the next 20 years through the annual
contribution rate.
There was discussion with regard to providing an automatic annual permanent cost
of living adjustment for retirees; Mr. White moved that the matter be referred to the
City Manager, City Attorney, and Director of Finance for report to Council within six
months. The motion was seconded by Mr. Swain and adopted.
The Director of Finance recommended that the report be submitted to Council after
the report of the actuarial report is received in September, 1998.
With regard to a request of the Roanoke Valley Convention and Visitors Bureau for
funding in the amount of $525,000 for fiscal year 1998-99, which was before Council
on January 20, 1998, and referred to budget study, the City Manager submitted a
written report advising of meetings with the Executive Director, Roanoke Valley
Convention and Visitors Bureau, over the last 30 days to discuss a strategy on how
to obtain commitment from all participating parties in the Convention and Visitors
Bureau, in order to achieve the Phase I annual budget of $971,890.
Mr. Herbert expressed concem that it has been reported that Roanoke County will
not provide additional funding for the Convention and Visitors Bureau for fiscal year
1998-99 and, further, that the Board of Supervisors has not yet committed to the
proposed fair share formula; and it is critical that there be a regional economic plan
regarding the Roanoke Valley Convention and Visitors Bureau and that there be a
funding commitment by Roanoke City Council, the Roanoke County Board of
Supervisors and others.
The City Manager explained that he has suggested to the Executive Director that if
additional funding is not forthcoming from Roanoke County because of significant
financial constraints in the upcoming budget year, it could still be a major step
forward for the governments to agree on a fair share formula and a commitment to
fund the Phase I budget sometime in the near future, perhaps fiscal year 2000 or
2001, and Mr. Kjolhede has indicated that he will attempt to organize the appropriate
City and County officials to discuss committing to a funding formula and to a time
period in the future in which all of the governments would make a financial
commitment.
Mr. Trout moved that Council concur in a 2.1 per cent permanent cost of living
adjustment for City retirees; additional funding in the amount of $350.00 for voting
machine mechanics, thereby increasing their hourly rate to $7.50; and additional
funding for the Roanoke Valley Convention and Visitors Bureau in the amount of
$25,000 for a total appropriation for fiscal year 1998-99 of $525,000 and approval of
the proposed funding formula for the future. The motion was seconded by Mr.
Swain and adopted.
At 2:05 p.m., the Mayor declared the meeting in recess.
On Thursday, May 7, 1998, the 1998-99 budget study session reconvened in the
Social Services Conference Room, Room 306, Municipal North, for the purpose of
meeting with the Roanoke City School Board and to continue 1998-99 budget study
deliberations, with Mayor David A. Bowers presiding.
PRESENT: C. Nelson Harris, John H. Parrot, Carroll E. Swain, James O. Trout,
William White, Sr., Linda F. Wyatt and Mayor David A. Bowers ........................... 7.
ABSENT: None .............................................................................................. 0.
]7
SCHOOL BOARD TRUSTEES PRESENT: Charles W. Day, F. B. Webster Day,
Sherman P. Lea, Melinda J. Payne, Harry F. Davis and Chairperson Marsha W.
Ellison ...................................................................................................... 6.
SCHOOL BOARD TRUSTEES ABSENT: Brian J. Wishneff ..................................... 1.
OTHERS PRESENT: Dr. E. Wayne Harris, Superintendent of Schools, Richard L.
Kelly, Deputy Clerk, Roanoke City School Board, Cindy H. Ramsuer, Clerk, Roanoke
City School Board, W. Robert Herbert, City Manager, James D. Ritchie, Assistant City
Manager, Wilburn C. Dibling, Jr., City Attorney, James D. Grisso, Director of Finance,
Jesse A. Hall, Deputy Director of Finance, Robert H. Bird, Municipal Auditor, Willard
N. Claytor, Director of Real Estate Valuation, George C. Snead, Director of Public
Safety, Sherman M. Stovall, Budget/Management Analyst, Mary F. Parker, City Clerk,
Council Member-Elect W. Alvin Hudson, Jr.
On behalf of Council and City staff, the Mayor extended a welcome to the School
Board and staff and called upon Chairperson Ellison for an overview of the 1998-99
School budget.
(For full text, see attached remarks of Ms. Ellison.)
Mr. White requested specific information with regard to the pre-school program
conducted jointly by the City and the School Board for three and four year old
children, the feasibility of increasing funds, and the value of the program in terms
of children served and dollars expended; whereupon, the Superintendent advised
that a report will be provided at the joint meeting of Council and the School Board
in August, 1998.
Mr. White spoke in support of a conference registration exchange program between
Council Members and School Board Trustees; for example: School Trustees might
attend the National League of Cities and Council Members might attend education-
related conferences. He requested that the Mayor and the Chair of the School Board
discuss the feasibility of an exchange program.
Vice-Mayor Wyatt spoke to the success of the pre-school program at Westside
Elementary School. She commended the progress of the program which has proven
to be money well spent. She applauded the School Board's efforts in lowering the
pupil-teacher ratios which will pay off in years to come in more than just test scores.
She recognized the work of school attendance counselors and advised that their
efforts have led to better attendance, specifically at Westside Elementary School.
Revised 5/6/98
FY98-99 General Fund Budget
Chairman's Remarks
Overview
Mayor Bowers, Council members, and School Board colleagues, the budget
highlights for FY1998-99 I am presenting t° you today represent the adoption by
the School Board of a budget program to achieve the School Board's seven major
objectives by the 1998-99 school year. The proposed budget totals $92.2 million or
an increase of 6.5% over the current year budget. The Board's objectives to be
accomplished by the end of the 1998-99 school year are:
Slide 1
· Improve student academic performance by 4% annually
· Increase physical fitness scores by 7% annually
· Reduce the dropout rate by 1% annually
· Increase student attendance by 10% annually
· Improve the high school graduation rate to 90%
· Raise teacher salaries to the national average by 1998-99
· And to improve the competitiveness and equity of employee salaries
Indicators of Success
Slide 2
We have made substantial progress in achieving the Board's priorities as evidenced
by the following indicators of student success:
· The percentage of students passing the State Literacy Passport Test increased
by 6% from 58% to 64%.
Six of 26 schools had an improvement of 4% or more in student scores on the
Stanford 9 test of student achievement.
The number of students passing the State physical fitness test increased by 7%
or more at 16 of 26 schools.
· The student dropout rate was lowered at five secondary schools.
The average teacher salary will have increased by over 25% since 1993-94
which will result in Roanoke's average teacher salary exceeding the projected
national average by 1998-99.
£nrollment Trend
Slide 3
Parents continue to view the City Schools as being responsive to their children's
academic and social needs. Enrollment growth during the last four years has
escalated, especially at the primary grade level. Total student enrollment has
increased by over 550 students since 1993-94. It is anticipated that a growth rate
averaging 45 to 50 students per year will continue for at least the next five years
2
with a total enrollment of 13,500 students projected by the 2002 school year.
Enrollment growth will have a significant effect on our future space needs.
School Revenues
The increase in State and City revenue is the critical element in our ability to adopt a
budget that will accomplish the Board's objectives. The School Board thanks City
Council for its continuing support and we appreciate the cooperation provided by
the City Manager and City Finance Director to the Superintendent and his staff
during our budget development. The Board wishes to thank the City Manager for
the $205,000 in City funds that will allow us to continue the preschool program for
150 three-year and four-year old children.
Pause
The Schools' final revenue projection shows that total revenue will increase by $5.6
million over the FY97-98 budgeted figure. The Roanoke City Public Schools'
projected share of State revenue growth is $3.6 million and our share of the City's
revenue growth is $1.35 million. State revenue growth is about $2.0 million more
than last year, while the increase in City revenue is about $500,000 less than the
prior year increase. The total percentage increase in revenues is 6.5%. The
additional revenue will be used to accomplish major State sponsored budget
incentives including: teacher salary raises, further reduction in primary grade class
size, additional preschool classes, enhanced teacher professional development, and
added remedial services for at-risk students. All of these incentives will address our
need to have our students perform and pass the Standards of Accreditation core
tests. If at least 70% of the students at the school do not pass the test, then that
school will lose its accreditation.
Slide 5
Per pupil cost for FY98-99 based on the adopted budget will be $6,965 or an
increase of $393 over the current year budget of $6,572.
Budget Priorities
Slide 6
I am pleased to report to the public and City Council that the School Board will be
able to implement all its budget priorities for the next school year, except for
proposals regarding the expansion of elementary teacher planning time to all schools
and an additional period of contract time for school nurses.
Elementary teacher planning time will be expanded from seven to fifteen schools.
The full implementation of the proposal to all 21 elementary schools will require an
additional $85,000 in City funds. Contract time for school nurses was proposed to
increase by one period. Additional State health incentive funds will allow us to
expand the time by one-half period with an additional one-half period unfunded at a
cost of $35,000.
Maintenance of Services Budget
Slide 7
The Board's first priority is to maintain the exceptional level of educational services
that has resulted in the City Schools retaining students and maintaining long-term
enrollment growth, while most urban areas in the Commonwealth and nation are
4
suffering a significant decline in enrollment. The cost of meeting this priority is
projected to increase for the upcoming budget year based on a number of operating
conditions that are outside the direct control of the School Board. The total increase
in the Maintenance of Services Budget is $1.4 million or 1.6% of the total budget.
The increase is due to requirements outside the immediate control of the School
Board with the increase attributable to:
· Debt service requirements on school renovation projects.
Funding support for the placement of special education pupils in the regional
program.
· A reserve to meet the cost of supporting new student enrollment.
An increase in the State retirement rate in order to prefund retiree cost of living
increases.
The budget also incorporates reductions for personnel lapse and savings in the
elimination of two administrative positions.
Slide 8
Operations Review
As part of the budget process for the past three years, a thorough review has been
made of all support and central office operations of the Schools in accordance with
the Board's priority to operate in an effective and efficient manner. A total cost
savings of $1.35 million has been generated as the result of this review. For
FY98-99 the review of support and central office operations has identified $90,000
in cost savings. The savings will be achieved through consolidation of
central office administrative functions.
certain
Employee Salaries
The second priority for implementation as part of the adopted FY98-99 budget is
employee salary improvements. Expenditures for employee salaries and fringe
benefits account for about 82% of the total budget. The total cost of proposed
employee salary raises is $3.0 million.
Teacher Salaries
Slide 9
The chart compares the average salary ranking in Roanoke City to the projected
national and State averages. In comparison to teacher salaries at the national and
State levels, Roanoke's average teacher salary for FY98-99 will be $82 more than
the national average and $2,835 higher than the State average. The data presented
for FY98-99 is based on a projected average increase of 3% in national and State
average salaries., which is .5% higher than the actual average salary increase for
FY92 to FY97. The teacher salary raise adopted for FY98-99 will enable the Board
to meet its objective for raising teacher salaries to the national average for teachers
employed since FY93-94. Roanoke's average teacher salary will have increased by
over 25% during this time frame.
Slide 10
The teacher salary scale adopted by the School Board for next year will increase
teacher salaries by an average of 5.0% at a cost of $2.1 million. The salary scale
6
includes a 3.9% cost of living raise for all teachers plus tier raises of 2.5% to 19%
for 20% of the teachers eligible for tier raises.
Slide 11
The next chart shows that Roanoke's average teacher salary will exceed the
estimated national average of $40,854 by the 1998-99 school year. Roanoke's
average teacher salary will have increased by $9,157 fi.om 1993-94 to 1998-99.
Employee Salaries
Slide 12
The Board has budgeted a total of $825,000 for improving the competitiveness of
administrative and classified employee salaries. Classified employee salaries will
increase by an average of 4.2% while administrator salaries will rise by an average
of 3.6%. School bus drivers will receive an upgrade in their salary scale in order to
help retain and attract highly qualified bus drivers.
Slide 13
Since 1994 teacher salaries have increased by 25.6%, classified salaries by 21.7%,
and administrators' salaries by 20.4%.
7
Slide 14
State Incentives
The focus of our State incentive programs is to assist schools in the accomplishment
of their three year site-based objectives. The objectives are to improve student
performance, student attendance, physical fitness scores, and dropout and
graduation rates. Indicators of student performance include the State Literacy
Passport Test. The chart shows that Roanoke's Literacy Passport Test scores
improved by 6% on the 1996-97 test. The School Board and Superintendent are
committed to do what is required to ensure students demonstrate continuous
academic progress and perform at high levels of achievement.
Slide 15
The Board will continue to participate in all State incentive programs. Additional
State funds will be received next year to further reduce K-3 class size by one
student in most elementary schools. The City Manager's commitment of funds'
amounting to $205,000 combined with additional State funds will allow us to add
two preschool classes. A total of 10 locally funded preschool classes will be in
place next year serving over 150 children.
Teacher professional development efforts will be expanded using $175,000 in local
funds and $100,000 in State funds to ensure all teachers achieve a mastery of the
new State Standards of Learning. New State funds of $305,000 have been allocated
to remedial services to tutor students failing State SOL tests.
8
Next year is going to be a challenging year for the Schools. SOL & SOA testing
began this Spring. We are in the process of examining the criteria for how we
promote and retain students. Mandatory summer school may be a requirement for
students without passing grades. The Board is going to review how we reward
teachers, students, and administrators using the results of the new standardized tests.
We are redoubling our efforts to ensure every Roanoke City student can read well
by the time they leave the third grade. High school course scheduling is being
evaluated, and it may change dramatically to improve student performance.
Slide 16
While all secondary teachers have scheduled planning time, 14 of 21 elementary
schools have no planning time during the school day in which to develop and
implement strategies for improving the performance of low-achieving children. The
Board was able to increase the number of elementary schools with planning time
fi.om seven to fi~een. The remaining six elementary schools without planning time
is an unfunded Board priority costing about $85,000.
Other site-based programs the Board has funded include middle school football, the
elimination of high school athletic fund deficits, and increases in supply and
equipment allotments for the art and music programs. Middle school football
competition will start during the next school year and the high school athletic fund
deficits will be reduced to zero by the start of the next school year.
The implementation of the new Standards of Leaming also will require significant
investment in new textbooks and learning materials. The Board will be using
9
$496,000 in year-end funds for the purchase of newly adopted textbooks and related
materials.
Slide 17
In supporting site-based programs over the past four years, the Board has reduced
the pupil-teacher ratio to an average of slightly less than 18 to 1. Since the 1991-92
school year, the Board has added 165 teaching positions in its effort to provide more
teacher time per student.
Slide 18
Student absenteeism in excess of 10 days continues to be a critical problem in the
City Schools, particularly among children at risk of failure as measured by free
lunch statistics. The Board will be using local funds of $78,000 to assume the cost
of two attendance counselors formerly funded with a one-time federal grant in order
to continue to address truancy problems.
The Board also has entered into an agreement with the Municipal Auditor to fimd an
auditor position with an equivalent amount of audit work dedicated to the School
Board and School internal audit functions.
10
Capital Planning
Slide 19
The recent approval by the voters of the November bond referendum will provide
$13.623 million to the City's Schools for major facility improvements and additions.
The Board appreciates the efforts of City Council and the City Administration to
secure approval of the bonds and to provide an equitable distribution of bond
proceeds to the Schools.
The Board's proposed Capital Improvement Plan requires an additional $11.5
million in Literary Fund Loans over the next three years in order to fund all major
capital improvement projects proposed in the plan. Unless there is a new City bond
issue within the next three years, we will have to borrow money fi.om the Literary
Loan fund, thereby incurring an average of $330,000 per year in additional debt
service in the Board's operating budgets starting in FY2001. The School Board will
be discussing our Five-Year Capital Improvement Plan next week. In lieu of a new
bond issue, we are asking for the support of City Council and the City
Administration in funding future School operating budget increases that will
provide for the necessary debt service according to the schedule adopted by the
School Board in its capital plan.
11
Slide 20
The completion of the Board's capital plan will result in the following outcomes:
· Ail middle schools constructed prior to 1950 will be renovated.
The pupil to computer ratio will be reduced to five pupils per computer in all
schools.
· 61 permanent elementary classrooms could be added
Two elementary gyms could be added and four elementary library-media
centers could be modernized.
· Ail elementary and middle schools could be centrally air conditioned.
Summary
Your support of the City's public education system has made the Roanoke City
Public Schools a leader in providing academically challenging educational programs
to children fi.om a variety of cultures and economic backgrounds. While other
localities in the region are bemoaning the degradation of their public education
systems because of tight budgets, we have become a model in western Virginia for
quality instructional personnel and programs. We thank you again for your foresight
in providing the best possible financial support both now and into the future for our
public schools. Your approval of the School Board's FY1998-99 General Fund
Budget will continue our progress in the achievement of our comprehensive and
challenging goals as we enter the 21 st century.
12
We are excited by the challenges but we cannot succeed alone. The entire
community must become engaged if we are to be successful in our efforts to institute
far reaching and visionary educational improvements for the benefit of all of
Roanoke's children.
13
Mr. Trout advised that Roanoke County recently hired an outside source to monitor
energy efficiency and inquired if Roanoke City Schools has done anything along
those lines. He also called attention to the additional $600,000 funding for the school
system from the Federal Government; whereupon, the Superintendent advised that
the $600,000 is a small percentage of the overall school budget (three per cent).
Mr. Swain advised that there is a negative perception in the community with regard
to the schools' efforts in minority recruitment; whereupon, the Chairperson advised
that the School Board is making an all-out effort to recruit minorities. The
Superintendent stated that the perception is there, however, he continues to look for
a diverse workforce of qualified individuals. He called attention to a Summer Intern
Program directed at primarily the black colleges which brings senior minority
students to Roanoke who want to become teachers, they are paid an hourly wage,
and their housing is funded along with two meals per day. He advised that
approximately one-third of the students have been hired, four early contracts have
been offered this year to African-American teachers, he has recruited minorities from
New York and hired an African-American administrator, and former school retirees
are sent to minority colleges for recruitment purposes. He explained that every
school division in this country is Roanoke's competition because all school systems
are trying to diversify their workforce.
Mr. Swain expressed concern about the annuities being paid to top school
administrators; and from the standpoint of reducing the pupil-teacher ratio, he
inquired if there is information to determine if test scores have improved.
The Mayor suggested that the Superintendent present his State of the School
Address on RVTV Channel 3, or at a City Council meeting. Mr. Parrot, Chairman of
the Roanoke Valley Regional Cable Television Committee, advised that he would
present the request to the Cable Television Committee.
In regard to the above stated concerns/questions expressed by certain Members of
Council, the Mayor suggested that the Superintendent meet with Council Members
on a one on one basis. He stated that the problem could be a failure to
communicate and the City and the Schools need to continue to get their message
to the community.
There being no further business, the Mayor declared the meeting in recess at 10:05
a.m.
At 10:10 a.m., Council reconvened in 1998-99 budget study.
There was discussion with regard to
enhancements to the City of Roanoke
supplement to future retirees until age 65.
a Supplemental Budget request for
Pension Plan and a health insurance
On August 4, 1997, Council referred to the Board of Trustees of the City of Roanoke
Pension Plan a request to review pension benefits for members of the Pension Plan.
There are 11 individual plans in the Commonwealth of Virginia, which include the
Virginia Retirement System (VRS) and ten local government plans. A comprehensive
study was conducted of these plans to compare the health insurance coverage and
the pension benefits offered by the City of Roanoke and those provided by the ten
other pension plans. On November 17, 1997, the Board of Trustees presented to
Council its recommendations concerning pension benefit enhancements and a
health insurance supplement to future retirees until age 65, and suggested that
Council refer the recommendation to fiscal year 1998-99 budget study for
consideration with other priorities of the City.
The definition of normal retirement age could be "the Rule of 70 with a minimum age
of 45" for firefighters and deputized police officers and "the Rule of 80 with a
minimum age of 50" for all other employees. When the years of service plus age
(minimum of 45) equal 70, a firefighter or deputized police officer could retire with
unreduced benefits. All other employees would use years of service plus age
(minimum of 50) equal to 80 to receive an unreduced benefit.
The City should consider paying a monthly supplement (in an amount equal to that
which the City supplements the health insurance of active employees) to future City
retired employees under the age of 65, with at least 20 years of service to help defray
the cost of health insurance. This supplement would be paid until the month the
retiree reaches age 65. The supplement could be included in the retirees pension
payment, and the appropriate operating fund could reimburse the Pension Plan Trust
Fund.
It is recommended to establish a normal retirement benefit by applying the Rule of
70 for public safety employees with a minimum age of 45 and the Rule of 80 for
general employees with a minimum age of 50; provide funding to pay as a
supplement equal to that which the City supplements the health insurance of active
employees (currently $159 per month) to future retirees with at least 20 years of
service; and the supplement would be paid until the retiree reaches age 65. Funding
is provided in the current estimated contribution rate of 10.50 per cent of the
Pension Plan Trust Fund for establishing the Rule of 70/Rule of 80. Funding will be
provided in the operating fund by reducing the contribution rate to the Pension Plan
by .50 per cent for the supplement to age 65 for future retires, at a cost as follows:
2O
Retirement Enhancements
Health Insurance Supplement
$715,000
250,000
Total $965,000
Also before Council was a request of Charles Wells, a 17 year member of the
Roanoke City Fire/EMS Department, for additional pension enhancements, which
request was previously referred to 1998-99 budget study.
In his statement to Council, Mr. Wells advised that in March, 1996, it was reported
that the approximate value of the pension system was $170 million; the system grew
by 62 per cent to an approximate value of $274.2 million by December 31, 1997.
While the system was established to provide benefits to retirees, it has grown 62 per
cent, not including this years' growth, and improvements have been minimal during
this time period. The system can financially afford increased benefits to the
employees, which leads to a request for improvements in benefits to the retirement
system in the upcoming fiscal year. The proposed changes include:
Increase the multiplier by .3 per cent (from 2.0% to 2.3%) for a maximum of 69
per cent,
A monthly supplement for health insurance as recommended by the Pension
Board,
Unreduced 50 per cent survivor annuity to all City employees,
Rule of 70180 as recommended by the Pension Board,
A period of time of two months be available for members of the ERS to have
the opportunity to transfer to the ESRS (June 15 - August 15, 1998).
There was discussion as to the merits of the Virginia Supplemental Retirement
System versus the City's Pension System.
There was discussion with regard to costs associated with the 2.3 per cent
multiplier, the automatic 50 per cent spousal allowance and the Rule of 70180;
whereupon, the Director of Finance advised that the 2.3 per cent multiplier, up to a
maximum of 69 per cent, would cost $15.6 million, the spousal allowance would cost
$17.5 million, and the Rule of 70~80 would cost $15.3 million.
Mr. White advised that Council should vote on the recommendations of the Pension
Board and be cautious insofar as approving any further pension enhancements,
because additional pension enhancements would change the entire budget.
Mr. Swain advised that taxpayers expect the City to provide a pension system that
is fair, the City has a Pension Board which is composed of experts in their field and
they have submitted recommendations which are fair and equitable and if there is
a windfall in the Pension Fund, Council should consider ways of returning some of
the money to the taxpayers.
Mr. Parrot concurred in the remarks of Mr. White.
Mr. Trout moved that Council concur in the recommendation of the Pension Board
with regard to the Rule 70180 and the $159 per month supplement to be used by the
retiree. The motion was seconded by Mr. Swain and adopted.
At 11:50 a.m., the meeting was declared in recess to be reconvened at 1:30 p.m., in
the Social Services conference Room.
At 1:35 p.m., the meeting reconvened in the Social Services Conference Room, with
Mayor Bowers presiding, and all Council Members in attendance except Council
Member Harris.
The following items which were referred by Council to 1998-99 budget study were
discussed:
*A request of Vice-Mayor Wyatt which was referred to budget study on
November 17, 1997, that the City review the policy whereby the school
system and the City impose rental fees on each other for use of City
and School facilities; and
*Remarks of Mr. Jeff Artis, which were referred to budget study on
November 17, 1997, requesting a change of policy requiting Roanoke
City Schools to pay rent for use of Victory Stadium and the Roanoke
Civic Center for sporting events; a change of policy regarding the
manner in which concessions are operated at Victory Stadium and the
Roanoke Civic Center to allow Roanoke City Schools to operate
concession stands at William Fleming and Patrick Henry High Schools
basketball games and that revenue be used to decrease the athletic
deficit; and a commitment from Council to assist the schools to
increase revenues by either constructing or renovating a sports facility
which will include a football complex comparable to the facility used by
Salem High School and an eight lane track facility which will allow
sports programs to become self-sufficient.
The Mayor introduced a communication from Marsha W. Ellison, Chairperson,
Roanoke City School Board, advising that the School Board strongly supports the
athletic and extracurricular activities offered to students in Roanoke City Schools;
over the past few years, the School Board has allocated additional funds to athletics
and other student activities to meet increasing demands; and the results are
evidenced by accomplishments of students in chess, forensics and OM teams, in
science and social studies fairs, as well as championship athletic teams produced
in both high schools.
Ms. Ellison further advised that the School Board would like to explore with Council
a comprehensive approach to a broad range of topics including facilities, programs,
scheduling of events and joint use agreements; one approach which has been
discussed toward accomplishing this goal would be for two City Council Members
and two School Board Members and respective staffs to meet and discuss this
broad range of related topics; and the purpose of the meeting might be threefold:
(1) a fact-finding effort to educate the group about the current situation, (2) the
development of a process for further exploration of these issues in order to improve
upon them, and (3) a report to a joint meeting of Council and the School Board on
the results of discussions.
The City Manager called attention to meetings which have been held by City and
School representatives. In summary, he advised that representatives of the two
staffs believe that the cost accounting system should be maintained; and the school
system does not pay the central administration fee for use of Victory Stadium or the
Civic Center. He further advised that he would confer with the Superintendent of
Schools to determine if a committee of Council Members and School Board Trustees
is, in fact, the avenue that the School Board would like to pursue.
Mr. Trout moved that the matter be referred back to the City Manager and that the
communication from the Chairperson of the School Board also be referred to the
City Manager for report to Council. The motion was seconded by Mr. Swain and
adopted.
Council Member Harris having been detained with regard to work related activities,
Vice-Mayor Wyatt spoke in support of delaying action on a request of Mr. Charles
Wells for additional pension enhancements, i.e.: to increase the multiplier from 2.0
per cent to 2.3 per cent up to a maximum of 69 per cent, until Council Member Harris
is present to participate in the discussion.
The Mayor pointed out that it appears that some of the necessary information is not
available at the present time and inquired if Council would concur in deferring action
on the request of Mr. Wells until a report of the actuary is received on or about
September 15, 1998.
Vice-Mayor Wyatt advised that Council Member Harris would arrive at the meeting
in approximately 15 - 20 minutes and asked that Council delay any discussion/action
until that time, which request was honored.
With regard to a request of Vice-Mayor Wyatt, which was referred by Council to
budget study at its meeting on March 16, 1998, in connection with hiring a consultant
to study alleged inequities in the City's Pay Plan, the matter was before Council.
Ms. Wyatt moved that the City Manager be requested to prepare a comprehensive
study of the City's pay plan by engaging the services of an outside consultant, with
a recommendation to Council prior to 1999-2000 budget study. The motion was
seconded by Mr Trout.
There was discussion with regard to including salaries of the Mayor and Council
Members in the consultant's study, and following discussion, it was the consensus
of Council not to include salaries of the Mayor and Council Members in the study
due to State Code requirements that set certain limits on salaries.
Thers was discussion with regard to the cost of a consultant to study the City's pay
plan; whereupon, it was the consensus of Council that prior to entering into a
contract, the City Manager will advise Council as to costs involved.
The motion offered by Ms. Wyatt, seconded by Mr. Trout, to engage the services of
a consultant to study the City's pay plan and benefits, was adopted, with the
understanding that Council will be advised as to costs prior to retaining the services
of a consultant.
Council Member Harris having entered the meeting, Council discussed enhanced
pension benefits as requested by Mr. Charles Wells, i.e.: increasing the multiplier
from 2.0 per cent to 2.3 per cent up to a maximum of 69 per cent.
Mr. Trout moved that Council approve enhancements to the pension system by
providing for a 2.3 per cent multiplier with a maximum benefit up to 69 per cent to
be funded from the pension plan. The motion was seconded by Ms. Wyatt.
Mr. White advised that Council appoints members to the Pension Board who have
expertise in financial matters, the Pension Board reviewed the pension plan and
recommended the Rule of 70/80 and the $159 monthly supplement which Council
approved earlier in the budget study session and now Council has been requested
by an employee association to approve additional enhancements. He encouraged
the members of Council to use sound judgement and not approve any additional
pension enhancements until the report of the City's actuary is received in
September, 1998.
The motion offered by Mr. Trout, seconded by Ms. Wyatt, was adopted by the
following vote:
AYES: Council members Harris, Trout, Wyatt and Mayor Bowers ......................... -4.
NAYS: Council members Parrot, Swain and White .............................................. 3.
Council at its meeting on April 20, 1998, having referred the matter of funding for
cultural and human service committees, specifically funding for the continuation of
the Local Colors Program, to 1998-99 budget study, the matter was before the body.
The City Manager called attention to a meeting with representatives of Center in the
Square, Downtown Roanoke, Inc., the Chairman of the Special Events Committee,
and City staff with regard to continuation of the Local Colors Program. He stated
that as a result of the meetings, it would be accurate to say that all persons in
attendance felt that the administrative structure is presently in place to ensure that
Local Colors will take place in 1999. He added that there has been significant
discussion on attempting to build this event into a two-day activity that would
include overnight hotel stays and dining rather than a single event on Sunday; and
Ms. Pearl Fu is a great asset and all persons involved agreed that her services
should be continued in a role as honorary chairperson. The City Manager advised
that a recommendation will be presented to Council in mid year, however, he gave
Council the assurance that the Local Colors Program will continue to grow.
Ms. Wyatt moved that Council concur in the City Manager's oral report. The motion
was seconded by Mr. Trout and adopted.
The City Manager submitted a written report under date of April 20, 1998, with regard
to the proposed fiscal year 1998-99 Annual Update to the HUD Consolidated Plan.
He advised that the U. S. Department of Housing and Urban Development (HUD)
requires that entitlement localities such as the City of Roanoke submit a five-year
Consolidated Plan, with Annual Updates, in order to receive funding under the
Community Development Block Grant and HOME Investment Partnership programs.
It was explained that HUD representatives informed City staff that Roanoke's 1998-
99 new CDBG and HOME entitlement will total $2,723,000, an increase of $2,000 over
1997-98 funding, including the new entitlement; and total funding of $4,086,691 is
estimated to be available from the following sources for 1998-99:
Source CDBG HOME Total
98-99 Entitlement
$2,095,000 $628,000 $2,723,000
98-99 Planned Program
Income
397,728 5,000 $ 402,728
97-98 Transfer/Carry-over
355,964 5,643 $ 361,607
97-98 Excess Program Income 450,000
12,753 $ 462,753
96-97 Excess Program Income 128,340
8,263 $ 136,603
Total Available
$3,427,032 $659,659 $4,086,691
It was noted that these funds will leverage an estimated $4,903,819 in additional
monies from federal, state, local and private sources, for a total program scope of
$8,990,510; the 1998-99 Annual Update to the Consolidated Plan is responsive to the
concerns of the citizens of Roanoke and meets the regulatory requirements of HUD;
and the Annual Update provides for housing improvements, homeless activities,
activities for youth, business development, the creation of new job opportunities,
human services, the strengthening of neighborhood organizations and adequate
administrative oversight for the entire program.
Mr. Trout moved that Council approve the 1998-99 Annual Update to the
Consolidated Plan and that the matter be referred to Council for approval at its
special meeting on Monday, May 11, 1998. The motion was seconded by Mr Swain
and adopted.
Council Members White and Swain advised that they will not vote affirmatively on
the 1998-99 fiscal year budget because of the previous action taken by Council
regarding additional pension plan enhancements which is in conflict with the
recommendation of the Pension Plan Board of Directors and the Director of Finance;
and Mr. Swain further advised of certain concerns with regard to the budget
submitted by the Roanoke City School Board.
Inasmuch as Council had not completed its review of the annual performance
evaluations of Council Appointed Officers, Council agreed to meet with the City
Manager immediately following the 2:00 p.m., special meeting on Monday, May 11,
and that salaries of the Council Appointed Officers would be established prior to
adjournment of the May 11 special meeting.
There being no further business, the 1998-99 budget study session was adjourned
at 2:55 p.m.
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