HomeMy WebLinkAboutCouncil Actions 02-10-93David A. Bowers
Mayor
CITY OF ROANOKE
OFFICE OF THE MAYOR
215 Church Avenue, S.W., Room 452
Roanoke, Virginia 24011-1594
Telephone: (703) 981-2444
February 4, 1993
The Honorable Vice-Mayor and Members
of the Roanoke City Council
Roanoke, Virginia
Dear Mrs. Bowles and Gentlemen:
Pursuant to Section 10, Meetings of Council, of the Roanoke City Charter, I am
calling a special meeting of Council on Wednesday, February 10, 1993, at 8:30 a.m.,
in the United Way Board Room, 325 Campbell Avenue, S. W. The purpose of the
meeting will be to discuss the City's Capital Improvements Program.
Sincerely,
David A. Bowers
Mayor
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Mr. W. Robert Herbert, City Manager
Mr. James D. Ritchie, Sr., Assistant City Manager
Mr. Wilburn C. Dibling, Jr., City Attorney
Mr. James D. Grisso, Acting Director of Finance
Ms. Mary F. Parker, City Clerk
Mr. Willard N. Claytor, Director of Real Estate Valuation
Mr. Robert H. Bird, Municipal Auditor
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OPENIN~ COI'~ENTS
GOOD MORNING. OUR WORK SESSION TODAY CONTINUES THE "ROANOKE
VISION '93" PLANNING PROCESS WITH A DISCUSSION OF CAPITAL
EXPENDITURE NEEDS FACING THE CITY OVER THE NEXT SEVERAL YEARS.
YOU WILL RECALL AT OUR LAST SESSION ON JANUARY 23RD THAT OUR
DISCUSSION FOCUSED MORE ON OPERATING REVENUES AND EXPENDITURES.
AT THAT SESSION, WE DISCUSSED FIRST THE FINANCIAL PERFORMANCE
OF ROANOKE CITY OVER THE PAST FIVE YEARS, AND IDENTIFIED SOME
DISTURBING REVENUE TRENDS INVOLVING A SHIFT OF THE REVENUE
GENERATION BURDEN FROM INTERGOVERNMENTAL, OR FEDERAL AND STATE,
REVENUES ~Q LOCAL REVENUES. THIS SHIFT AMOUNTS TO $4.5 MILLION IN
TODAY'S DOLLARS. DURING THE FIVE YEAR PERIOD, LOCAL REVENUES
INCREASED 5.9% PER YEAR WHILE INTERGOVERNMENTAL REVENUES INCREASED
ONLY 2.8% PER YEAR. TOTAL REVENUE GROWTH WAS 4.8% PER YEAR, ONLY
0.4% ABOVE INFLATION.
ON THE ~ SIDE OF THE BUDGET, WE CONSIDERED THE FACT
THAT EDUCATION, PUBLIC SAFETY, AND HEALTH AND WELFARE EXPENDITURE
INCREASES ACCOUNTED FOR 78% OF ALL N.~W~SPENDING DURING TI~E FIVE
YEAR PERIOD. ~ ~:~ ' ~?~ k ~. a .'
ONE DIST~ING EXPE~DIT~TR~D ID~Tt~IED W~S ~T DEBT
SERVICE EXPeDITe, ~ THE COST OF R~A~IN~ PRINCIPAL ~D
IN~EST ON BONDS'.~ED TO FIN~CE CAPITAL I~ROV~ENT PROJECTS,
INCR~SED ONLY 1~0~ P~Y~ IN ~ ~S D~ING THE PERIOD,
AND IN CONS__~ DOLLARS ACTUALLY ~ 3.2% PER YEAR. I RAVE
SOME ADDITIONAL INFORMATION TO SHARE WITH YOU THIS MORNING
REGARDING DEBT SERVICE EXPENDITURES, AND I'LL REVIEW TRAT WITH YOU
IN JUST A FEW MOMENTS.
AT OUR LAST SESSION, WE ALSO COMPARED ROANOKE CITY TO OTHER
STATE AND REGIONAL LOCAL GOVERNMENTS IN TERMS OF (1) MAJOR REVENUE
SOURCES, (2) LOCAL REVENUE SOURCES, (3) TYPICAL LOCAL TAX BILLS,
(4) EXPENDITURES BY MAJOR CATEGORY AND (5) FISCAL STRESS. AND
FINALLY, WE DISCUSSED BRIEFLY WHAT THE FUTURE MAY HOLD FOR ROANOKE
CITY GOVERNMENT IN TERMS OF (1) GROWTH IN INTERGOVERNMENTAL
REVENUES, (2) GROWTH IN LOCAL REVENUES AND (3) OPERATING
EXPENDITURES. IN THE SHORT TERM, OPERATING D_~ NEEDS FOR
FISCAL YEAR 1993-94, WITH $400,000 IN PLANNED ADDITIONAL DEBT
SERVICE EXPENDITURES ON EXISTING DEBT, EXCEED ESTIMATED OPERATING
REV~, AND IT APPEARS THIS FINANCIAL TREND MAY CONTINUE FOR
SEVERAL YEARS BASED ON CURRENT ECONOMIC CONDITIONS.
LET ME NOW REVIEW WITH YOU THE ADDITIONAL DEBT SERVICE
EXPENDITURE INFORMATION TRAT IS INSERTED IN THE FRONT INSIDE
p0~ET~F YOUR NOTEBOOK IN sUMMARY, ROANOKE CITY'S pER
~' DEBT sERVIcE EXPEI~DITURE~ ($91) ARE LESS THAN THE AVERAGE
OF OTHERURBAN-VIRGINIA CITIES ($123) AND LES~ THAN THE AVERAGE OF
AI~L~RGiN~ ¢iT~,($115). IT WO%H~D ~TOST AN ADDITIONAL $2.3 TO
$3.1~MiLL~ON~RS A~ALLY TO BRING ROANOKE'S PER ~ DEBT
SERVICE EXPENDITURES IN LINE wITH THE AVERAGE PE~.g,A~ DEBT
SERVICE EXPENDITUREs~{)~ OTHER VIRGINIA CITIES. TO PUT THIS IN
Page 2
PERSPECTIVE, SUCH EXPENDITURE INCREASES WOULD CONSUME 55 TO 74% OF
ALL ESTIMATED NEW REVENUES AVAILABLE TO FUND CITY AND SCHOOL
EXPENDITURES FOR FISCAL YEAR 1993-94.
ON THAT POSITIVE NOTE, LET ME TELL YOU THAT THE INTENDED
GOALS OF TODAY'S WORK SESSION ARE TO (1) REVIEW THE STATUS OF
PROJECTS IN THE CURRENT CAPITAL IMPROVEMENT PROGRAM (CIP) WHICH
CITY COUNCIL ADOPTED ON FEBRUARY 5, 1990, (2) REVIEW THE STATUS OF
OTHER CAPITAL PROJECTS WHICH CITY COUNCIL HAS APPROVED SUBSEQUENT
TO THE ADOPTION OF THE CIP, (3) REVIEW OTHER CURRENTLY UNFUNDED
CAPITAL NEEDS, AND (4) DISCUSS SEVERAL FUNDING OPTIONS TO ADDRESS
THESE NEEDS. IT IS NOT OUR INTENTION TODAY TO RECOMMEND TO YOU A
CAPITAL IMPROVEMENT PROGRAM COMPLETE WITH A FUNDING STRATEGY, BUT
RATHER TO HOPEFULLY DISCUSS TOGETHER THE VARIOUS CAPITAL NEEDS OF
THE CITY, THE FUNDING OPTIONS FOR MEETING THOSE NEEDS AND THEN
DEVELOP AND BRING BACK TO YOU A RECOMMENDED CAPITAL IMPROVEMENT
PROGRAM AS PART OF THE BUDGET DEVELOPMENT PROCESS FOR FISCAL YEAR
1993-94.
I'D ALSO LIKE TO REMIND YOU THAT WE ARE SCHEDULED TO MEET
AGAIN ON MARCH llTH FOR AN ALL-DAY WORK SESSIQN. .THE GOALS~O.~
THIS MEETING WILL BE TO (1) .REVIEW BRIEFLY PAST ROA~OKE VISIO~,AND
STRATEGIC PLANNING PROCESSES, (2) TAKE A "FIRST LOOK" AT CURREN~
COMMUNITY AND DEMOGRAPHIC~ATAAND ~TRENDS NOW~ING D~VELOPED BY
STAFF THRU AN ENVIRONMENTAL SCANNING PR(%CESS, .~(3).REVIEW AND ~.
DISCUSS NEXT STEPS IN THE "ROANOKE VISION '93" PLANNING PROCESS~.
AND (4) BEGIN TO DISCUSS FUTURE POSSIBILITIES FOR ROANOKE CITY'S
Page 3
GROWTH AND DEVELOPMENT.
Page 4
Comparison of Debt Service Expenditures for Virginia Localities - Fiscal Year 1990-91
Transfers to
_Locality:. D~ebt Service_ Rank_
, i
IRo~noke C ~
- Alexandria 156.81 1
- Chesapeake 142.24 4
- Danville 114.76 7
88.70 10
- Hampton
- Lynchburg 115.12 6
- Newport News 143,38 3
- Norfolk 75,63 12
- portsmouth 107.06 8
- Richmond 153,16 2
- Virginia Beach 140,45 5
Information Source:
Comparative Repot1 of Local Government Revenues and Expenditures
Year Ended June 30, 1991
Commonwealth of Virginia
Auditor of Public Accounts
SPECIAL MEETING OF CITY COUNCIL
"Development of Roanoke vision '93"
Capital Improvement Program Planning Session
February 10, 1993
I. Call to Order
II. Roll Call
III. Invocation
IV. Opening Comments
Current Status of Capital Improvement Program - Manager of
OMB
A. Projects Included in Previous CIP
B. Projects Approved after CIP Adoption
C. Other Projects
VI. Presentations on Specific Projects
city Manaaer
Hotel Conference Center
Director of Public Safety/City Sheriff
- Jail Annex
Assistant City Manaaer
- Juvenile Detention Home Expansion
Director of Public Works
- Neighborhood Storm Drains
- Bridge Maintenance/Replacement Program
- Curb, Gutter and Sidewalk
- VDOT Highway Projects - City/State
- New Traffic Signals
Director of Utilities and Operations
- Roanoke River Flood Reduction P~ject ~ .....
- Sewershed Infiltration/Inflow Remo~a~ program
- Wastewater Treatment Needs
- Carvins Cove Filter Plant
Chief of Economic Development '.~ ~ ~i~'
- Downtown Project - Atrium and Pedestria~~ Walk~' ~~
- Roanoke Center for Industry and Technology Expansion
Other Needed Pro~ects
VI. Possible Funding Scenarios - Acting Director of Finance
viii.Closing CommeHts and Adjournment
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POSSIBLE FUNDING SCENARIOS FOR NEW DEBT SERVICE
FINANCIAL PLANNING ASSUMPTION FOR NEW DEBT SERVICE:
EACH $1;000,000 IN NEW DEBT COSTS $95;000 PER Y~R TO REPAY
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REDUCTION IN CURRENT DEBT SERVICE:
OTHER ALTERNATIVE FUNDING SOURCES:
- $.01 increase in Real Estate Tax Rate of $1.25
- $.01 increase in Personal Property Tax Rate of $3.45
- Payment in-lieu-of Taxes for Enterprise Funds
- 0.5% increase in Local Option Sales Tax Rate of 1%
- 1% increase in Prepare Food & Beverage Tax Rate of 4%
- 1% increase in Utility Consumers Tax Rate of 12%
- Apply Utility Consumers Tax to Cable Television
- Increase Motor Vehicle License Fee from $15 to $20
for vehicles less than 4,000 pounds
- 1% increase in Transient Occupancy Tax Rate of 5%
- Eliminate Agricultural Deferrals for Real Property
- $.01 increase in Cigarette Tax Rate of $.14
- Increase Utility License Tax for Gas from 0.4% to 0.5%
- 1% Increase in Admissions Tax Rate of 5%
$282,000
43,000
6,250,000
1,150,000
815,000
1,100,000
350,000
201,000
125,000
103,000
87,000
40,000