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HomeMy WebLinkAboutCouncil Actions 01-03-11 BESTPITCH P[EKJ [h~ ROANOKE CITY PUBLIC SCHOOLS StrongSludenlS, StrOl1g 5<:hoo[s. Strong City, ROANOKE CITY COUNCIL ROANOKE CITY SCHOOL BOARD JANUARY 3, 2011 9:00 A.M. RECESSED AND RECONVENED AT 10:00 A.M. DUE TO LACK OF A QUORUM EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order -- Roll Call. City Council - Council Member Rosen was absent. School Board - Trustees Putney and Lewis were absent. 2. Welcome and Opening Remarks: Mayor Bowers Chairman Carson 3. Items for Discussion: · Final Report of the William Fleming Construction Project · Graduation Rate . Accreditation of Schools . School Formula · Status of Recreation Leagues Utilizing School Facilities 4. Comments by Council Members/School Board Trustees. Recessed until 2:00 p.m., in the Council Chamber. ROANOKE CITY COUNCIL REGULAR SESSION JANUARY 3, 2011 2:00 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order--RolI Call. Council Member Lea arrived late and Council Member Rosen was absent. " The Invocation was delivered by The Reverend Timothy P. Harvey, Pastor, Central Church of Brethren. The Pledge of Allegiance to the Flag of the United States of America was led by Mayor David A. Bowers. Welcome. Mayor Bowers. NOTICE: Today's Council meeting will be televised live and replayed on RVTV Channel 3 on Thursday, January 6 at 7:00 p.m., and Saturday, January 8 at 4:00 p.m. Council meetings are offered with closed captioning for the hearing impaired. ANNOUNCEMENTS: , THE PUBLIC IS ADVISED THAT MEMBERS OF COUNCIL RECEIVE THE CITY COUNCIL AGENDA AND RELATED COMMUNICATIONS, REPORTS, ORDINANCES AND RESOLUTIONS, ETC., ON THE THURSDAY PRIOR TO THE COUNCIL MEETING TO PROVIDE SUFFICIENT TIME FOR REVIEW OF INFORMATION. THE CITY CLERK'S OFFICE PROVIDES THE MAJORITY OF THE CITY COUNCIL AGENDA ON THE INTERNET FOR VIEWING AND RESEARCH PURPOSES. TO ACCESS AGENDA MATERIAL, GO TO THE CITY'S HOMEPAGE AT WWW.ROANOKEVA.GOV.CLlCK ON THE GOVERNMENT ICON. NOTICE OF INTENT TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT. SPECIAL ASSISTANCE IS AVAILABLE FOR DISABLED PERSONS ADDRESSING CITY COUNCIL. EFFORTS WILL BE MADE TO PROVIDE ADAPTATIONS OR ACCOMMODATIONS BASED ON INDIVIDUAL NEEDS OF QUALIFIED INDIVIDUALS WITH DISABILITIES, PROVIDED THAT . REASONABLE ADVANCE NOTIFICATION HAS BEEN RECEIVED BY THE CITY CLERK'S OFFICE. PERSONS WISHING TO ADDRESS COUNCIL WILL BE REQUIRED TO CONTACT THE CITY CLERK'S OFFICE PRIOR TO THE MONDAY COUNCIL MEETING, OR REGISTER WITH THE STAFF ASSISTANT AT THE ENTRANCE TO THE COUNCIL CHAMBER PRIOR TO COMMENCEMENT OF THE COUNCIL MEETING. ONCE THE COUNCIL MEETING HAS CONVENED, THERE WILL BE NO FURTHER REGISTRATION OF SPEAKERS,' EXCEPT FOR PUBLIC HEARING MATTERS. ON THE SAME AGENDA ITEM, ONE TO FOUR SPEAKERS WILL BE ALLOTTED FIVE MINUTES EACH; HOWEVER, IF THERE ARE MORE THAN ,FOUR SPEAKERS, EACH SPEAKER WILL BE ALLOTTED THREE MINUTES. ANY PERSON WHO IS INTERESTED IN SERVING ON A CITY COUNCIL APPOINTED AUTHORITY, BOARD, COMMISSION OR COMMITTEE MAY CONTACT THE CITY CLERK'S OFFICE AT 853-2541, OR ACCESS THE CITY'S HOMEPAGE TO OBTAIN AN APPLICATION. THE COUNCIL OF THE CITY OF ROANOKE IS SEEKING APPLICATIONS FOR THE FOLLOWING CURRENT OR UPCOMING VACANCIES: BOARD OF ZONING APPEALS - ONE VACANCY TOWING ADVISORY BOARD - TWO VACANCIES 2. PRESENTATIONS AND ACKNOWLEDGEMENTS: NONE. 3. HEARING OF CITIZENS UPON PUBLIC MATTERS: NONE. ( 4. CONSENT AGENDA (APPROVED 6-0) ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE MEMBERS OF CITY COUNCIL AND WILL BE ENACTED BY ONE MOTION. THERE WILL BE NO SEPARATE DISCUSSION OF THE ITEMS. IF DISCUSSION IS DESIRED, THE ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND CONSIDERED SEPARATELY. C-1 , Minutes of the regular meeting of Council held on Monday, December, 20, 2010. RECOMMENDED ACTION: Dispensed with the reading of the minutes and approved as recorded. C-2 Report of qualification of Angela S. Penn as a member of the City Planning Commission for a term commencing January 1, 2011 and ending December 31,2014. RECOMMENDED ACTION: Received and filed. REGULAR AGENDA 5. PUBLIC HEARINGS: NONE. 6. PETITIONS AND COMMUNICATIONS: NONE. 7. REPORTS OF CITY OFFICERS AND COMMENTS OF CITY MANAGER: a. CITY MANAGER: BRIEFINGS: NONE. ITEMS RECOMMENDED FOR ACTION: NONE. COMMENTS BY CITY MANAGER. The City Manager announced that the Holiday Career and Lifestyle Fair was a success with over 700 job seekers in attendance, exceeding last year's record of 600. He further announced that the City of Roanoke and Citizens for Clean and Green were working on the Green Academy which will be held on Thursdays, January 20 - February 10 from 6:00 p.m. - 8:00 p.m., at Fishburn Park Elementary School. He also expressed appreciation to the Public Safety and Public Works employees for their hard work during the holiday season. b. DIRECTOR OF FINANCE: 1. Presentation with regard to Annual General Reassessment for Fiscal Year 2011-2012. Susan Lower, Director of Real Estate Valuation, gave an overview highlighting the Annual General Reassessment for Fiscal Year 2011-2012. 2. Financial Report for the Month of November 2010. The Director of Finance gave a brief overview highlighting the financial performance of the City through November 2010. 8. REPORTS OF COMMITTEES: NONE. 9. UNFINISHED BUSINESS: NONE. 10. INTRODUCTION AND CONSIDERATION OF , ORDINANCES AND RESOLUTIONS: NONE. 11. MOTIONS AND MISCELLANEOUS BUSINESS: NONE. a. Inquiries and/or comments by the Mayor and Members of City Council. b. Vacancies on certain authorities, boards, commissions and committees appointed by Council. 12. ADJOURNMENT - 3:14 P.M. CITY OF ROANOKE CITY COUNCIL 2 I 5 Church Avenue, S. W. Noel C. Taylor Municipal Building, Suite 456 Roanoke, Virginia 24011-1536 Telephone: (540) 853-2541 Fax: (540) 853-1145 \" DAVID A. BOWERS Mayor Council Members William D, Bestpitch Raphael E. "Ray" Ferris Sherman P. Lea Anita 1. Price Court G. Rosen David B. Trinkle January 3, 2011 The Honorable Mayor and Members of the Roanoke City Council Roanoke, Virginia Dear Mayor Bowers and Members of Council: This is to remind you that I will not be present at the 9:00 a.m. and 2:00 p.m. sessions of Council on Monday, January 3, 2011 inasmuch as I will be out of town visiting family. Best wishes for a successful meeting. Sincerely, Court G. Rosen Council Member /ctw Pm! fhtLl William Fleming Construction Project Building ROANOKE CITY PUBLIC SCHOOLS Budaet ($) , Actual ($) Variance ($) Construction - Building 45,861,000 43,453,078 2,407,922 Owner's Cost - Building 11,139,000 9,724,021 1,414,979 TOTAL BUILDING 57,000,000 53,177,099 3,822,901 ~ fhtLl ROANOKE CITY PUBLIC SCHOOLS William Fleming Construction Project Plan Enhancements William Fleminq Field house 8-lane track with upgraded rubberized surface Irrigation and sod on all playing fields Lawson and Ruffner cafeteria demolition Ruffner playing field Patrick Henry Remediation of lacrosse and soccer practice fields Clear encroaching forest at track Fence around track p(~ fhUA ROANOKE CITY PUBLIC SCHOOLS William Fleming Construction Project Memorandum of Understanding Scope Fleming stadium, field house, upgraded track, and playing fields Lawson and Ruffner demolition Ruffner playing field Remediation of Patrick Henry playing fields and track Anticipated Construction Cost $7,244,515 If Actual Cost is More than Anticipated Construction Cost Excess costs paid by J.M. Turner and Rife+Wood If Actual Cost is Less than Anticipated Construction Cost 500/0 of excess paid to J.M. Turner and Rife+Wood 500/0 of excess retained by RCPS III William Fleming Construction Project MOU Work Program ROANOKE CITY PUBLIC SCHOOlS Budaet . , ($) Actual ($) Variance ($) TOTAL MOU 507,722 655,447 (147,725) Construction - MOU 7,244,515 6,528,296 Owner's Cost - MOU 7,752,237 7,183,743 ~ [(JJLI William Fleming Construction Project Remaining MOU Work ROANOKE CITY PUBLIC SCHOOLS PROJECT STATUS FUNDING Back side trail area 54,898 Tennis area grading : Spring completion. 11,841 Shot put / discus cage and fenci ng 8,066 Move gym scoreboard 2,509 270 Rubber floor in team room 8,063 ~(fJ fh~LI William Fleming Construction Project ,~Total Fleming Project ROANOKE CITY PUBLIC SCHOOLS I * Budget as recast upon entry into MOU I Construction - Building Owner's Cost - Building Construction - MOU Owner's Cost - MOU SUBTOTAL MOU Sharing TOTAL PROJECT Budaet* Actual Variance ($) ($) ($) 43,355,436 43,453,078 (97,642) 9,992,327 9,724,021 268,306 7,244,515 6,528,296 716,219 507,722 655,447 (147,725) 61,100,000 60,360,842 739,158 o 358,109 (358,109) 61,100,000 081.040 60,718,951 III Combined PHHS and WFHS Project ROANOKE CITY Overall Results PUBLIC SCHOOLS Budaet Actual Variance ($) ($) ($) PHHS - Building (Revised) 54,000,000 53,909,219 90,781 PHHS - Stadium 4,100,000 4,059,340 40,660 WFHS - Building 57,000,000 53,177,099 3,822,901 WFHS - Stadium 4,100,000 4,100,000 0 Enhancements 0 3,083,743 (3,083,743) MOU Sharing 0 358,109 (358,109) TOTAL PHHS + WFHS 119,200,000 118,687,510 012.490) ...." Graduation Measurements in Virginia Virginia On-Time Graduation Rate (OGR) The Virginia On-Time Graduation Rate is based on four years of longitudinal student-level data in the commonwealth's Educational Information Management System. Unlike estimates used in the past, the Virginia On-Time Graduation Rate takes into consideration student mobility, changes in student enrollment, policy and instructional practices such as 9th-grade retention. The new formula also recognizes that some students with disabilities and limited English proficient (LEP) students are allowed more than the standard four years to earn a diploma and are still counted as 'on-time' graduates. Simply put, the graduation rate, as defined by the Board of Education, equals [on-time graduates in year x] divided by [(first- time entering 9th graders in year x minus 4) plus (transfers in) minus (transfers out)]. OGR Graduates are defined as students who earn Advanced Studies (includes IB), Standard, Modified Standard, Special and General Achievement Diplomas. On-time graduates are graduates who earn diplomas within four years of the first time they entered the 9th grade. Special education students and limited English students who have plans in place that allow them more time to graduate will be assigned to different cohorts. Deceased students will be counted among transfers out in the denominator, while incarcerated students will be counted as transfers as they leave and re-enter the system. 2008 2009 2010 59;11 % 66.60% 67.69% Federal Graduation Indicator (FGI) - used for A YP determinations In October 2008, the United States Department of Education (USED) issued final regulations governing programs administered under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended (ESEA). Requirements under the new regulations include reporting a four-year cohort graduation rate for all schools, school divisions, and the state for all student subgroups. In January 2010, the Virginia Board of Education submitted to USED proposed changes to its federal accountability workbook to meet the graduation rate requirements of the October 2008 regulations. Specifically, Virginia requested to report a four-, five-, and six-year federal graduation indicator calculated in a manner that is consistent with the federally prescribed methodology. The formula for the Federal Graduation Indicator equals [on-time graduates in year x] divided by [(first-time entering 9th graders in year x minus 4) plus (transfers in) minus (transfers out)]. FGI Graduates are defined as students who earn Advanced Studies, Standard, or IB Diplomas. On-time graduates are graduates who earn one of these three diplomas within four years of the first time they entered the 9th grade. Unlike the OGR, special education students and limited English students who have plans in place that allow them more time to graduate will not be re-assigned to different cohorts. Similarily to OGR, deceased students will be counted among transfers out in the denominator, while incarcerated students will be counted as transfers as they leave and re-enter the system. 2008 2009 2010 50.32% 57.73% 61.59% '" .... s:: C1.I E C1.I '- :J '" fa C1.I ~ s:: o ".P fa :J '"'C fa '- ~ ..... o. ~ fa E E :J V) '- fa C1.I > C1.I C1.I '- ..s:: I- bO c: E CIJ <:t co ...-i u:: 00 ~ E ~ \.0 Lfl Lfl Lfl \.0 ,~ ~ N .... 0 ~ ..... III .!:! c: "0 CIJ M Lfl 00 .E ::J: LI1 ClC! ": .:::t!. c: u \.0 CO 00 0 .L:. <:t Lfl Lfl +:i ..... III III ::l Cl. "0 III .... ~ - III .... CIJ "0 c: " CIJ 0 N m 0'\ u.. 'Vi l'l'!, ,.... Lfl 'S: 0 .....: ...i Ci Lfl In \.0 " " 00 0'\ 0 0 0 ...-i 0 0 0 N N N -0 OJ u c: III > "0 ~ VI III E o 0. "0 "0 '~ OJ o 1a .... .... Q.OJ Q..c cp ..... CIJ bO 1a .;: ..... ..... 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CIJ '0 .c .E ..... bO c: c: 0 .-.p +:i ..!!! III ::J ::J ..!:! '0 III III .... U l!) c: - OJ III .c .... ;: CIJ '0 III CIJ III u.. E CIJ 0 ..c: 0. ~ N CS I~ ELEVATOR SPEECH . ROANOKE (ITV PUBLIC SCHOOLS Strong Students. Strong 5<h00ts. 5trong'Citv. Q: Why does RCPS need increased funding? A: Few will argue with the proposition that lias the schools go, so goes Roanoke," For far too long, RCPS has underachieved - with a graduation rate that was too low and academic performance that was flat at best. Changes began a little more than three years ago when a concerted effort to take on the critical issues facing this school division, no matter how politically challenging or operationally difficult, was initiated, Pathbreaking academic initiatives designed to improve the graduation rate, like the launch of the Forest Park Academy, were implemented, Elementary Spanish, a renewed focus on the arts, targeted after school and summer programs, and enhanced curriculum and materials created a dynamic educational program. Attendance zones dating back to the 1970's were updated. Transportation was outsourced, Two new high schools were built to replace buildings that were no longer suitable, Five schools were closed to drive cost out of the system. Great teachers were hired and mentors supported their professional growth. And now, we have momentum, Today, we're finally at the point where, for the first time in memory, the Roanoke City Public Schools are truly positioned for success. We have a School Board that is willing to make hard decisions when necessary. We have an Administration that is capable of implementing and institutionalizing those decisions, And, most importantly, we're seeing results. The graduation rate is up more than eight percentage points in just three years and is still climbing. Teaching and learning is vastly improved and getting better, You feel it in the classroom, you see it in our performance in high stakes testing, and you read about it in the acknowledgements of progress. Patrick Henry, for example, was named "One ofthe Top High Schools" in the United States by Newsweek magazine, Fallon Park Elementary won the National Excellence in Urban Education Award and Highland Park Elementary was a runner-up for the award. Impressive progress, however, does not equal greatness. We still have a ways to go. Less than 70% of our students graduate. Not all of our schools meet Federal academic standards. 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Thank you for providing this information to them. Enclosures p: 540-853-2381 f: 540-853-2951 P.O. Box 13145 Roanoke, VA 24031 www.rcps.info IJ ROANOKE CITY PUBLIC SCHOOLS Strong Students. Stmng Schools. Shong City. School Board David B, Carson Chairman Jason E, Bingham Vice Chairman Mae G, Huff Annette Lewis Suzanne p, Moore Todd A, Putney Lori E, Vaught Dr, Rita 0, Bishop Superintendent Cindy H, Poulton Clerk of the Board Balanced Scorecard - Fiscal Year 2009-2010 - · This Balanced Scorecard covers the period commencing July 1 , 2009 through June 30, 2010. · When reading the Scorecard, arrows are intended to provide insight into changes from prior periods. An up arrow ( + ) indicates that the value has increased. A down arrow (+ ) indicates that the value has decreased. A sideways line (-) indicates no change. Red generally means an unfavorable change. Green generally means a favorable change. ~!.el 81 ~:~ ~i~ ::::J:;l'n 810 [i;!~ JJ o )> z o ^ m a -f -< "U C 11 OJ -r 00- 00 )>00 ra -<I mo )>0 JJr 1\.)00 o o CD I I\.) o ....L o OJ )> r )> z a m o 00 a o JJ m a )> JJ o GENERAL INFORMATION Unless otherwise noted, all measures are for the period commencing July 1, 2009 and continuing through June 30, 2010 (which is the end of the fiscal year). STUDENT ACHIEVEMENT All data in the Student Achievement area, except FPA enrollment and Classroom Performance, are for the 2000-10 school year. Graduation Rate is as defined by NCLB (Federal Graduation Indicator). On-time Graduation Rate is as defined by VDOE. % under-credited is the percentage of high school students currently repeating their prior grade. % overage is the percentage of 9th grade students older than 15 on September 30, 2010. Source for SAT & AP results is the College Board Student Roster Report Source for CTE credentials is the VDOE School Report Card FPA enrollment is as of the end of the school year. TEACHING & LEARNING School Leadership, Curriculum, and Item 1 of Instructional Technology: Measurement based on a five point scale (1 = rudimentary, 5 = exemplary). This Scorecard was developed using a self-assessment by principals themselves adjusted for observations conducted thr~ugh the Department of Teaching and Learning. BALANCED SCORECARD DEFINITIONS OF MEASURES Teachers: Student Attendance is based on March 31 ADM. Disruptive actions are inappropriate activities for which a discipline report has been filed that typically would take place in the classroom. Period covered is the 2009-10 school year. Co-Curricular Activities: Data for athletics are for the 200- 1 0 school year. GPA improvement compares the GPAs of athletes with the GPA's of non-athletes in the Spring 2010 semester. MANAGING RESOURCES Human ,Resources: Data from this section are for the 2009-1 0 school year. Please note that the line item called "% of exiting employees unfacilitated" shows the percentage of exiting employees who retired or resigned without urging. (For example, this report shows that 81 % of the 12% of employees who exited RCPS retired or resigned without urging.) , Teacher evaluation data is for the 2009-10 school year. The on time measure is the final evaluation being submitted in accordance with the established schedule. Finance: Unrestricted revenue shows the change in actual revenues from 2008-09 to 2009-10. Future year comparison is between actual revenues in 2009-10 and the budget for the 2010-11 fiscal year. Percent of budget spent shows the percentage of the FY2009-10 budget that was been spent at year end compared with the % of 2008- 09 budget that was spent as of year end. Undesignated fund balance shows the portion of the General Fund fund balance which has not been designated for a specific use at year end. Administrative Technology: Connectivity reliability is divided int? our internal network reliability . (CISCO equipment)' and our external network reliability (Norlight and Cox Cable) Facilities: Information in this section includes the non-personnel elements of Policy DAB for elementary, middle, and high schools. ENGAGING THE COMMUNITY Information in this section generally covers the period commenc'ing July 1, 2009 and continuing through the end of th~ fiscal year. Source of all data in this section is a questionnaire that was completed by each RCPS school. ACHIEVING OUR VISION The "Pool" used for comparison is the average of the following school divisions: Roanoke County, Lynchburg City, Hampton City, Norfolk City, and Richmond City. Source of comparative performance data is the VDOE Division School report card, DOE advanced programs participation by school, and division level ' graduation rate cohort 2010. CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Suite 456 Roanoke, Virginia 24011-1536 Telephone: (540) 853-2541 Fax: (540) 853-1145 E-mail: c1erk@roanokeva.gov JONATHAN E. CRAFr Deputy City Clerk CECELIA T. WEBB Assistant Deputy City Clerk STEPHANIE M. MOON, CMC City Clerk January 5,2011 Martha P. Franklin, Secretary City Planning Commission Roanoke, Virginia Dear Ms. Franklin: This is to advise you that Angela S. Penn has qualified as a member of the City Planning Commission commencing January 1,2011 and ending December 31,2014. Sincerely, ~ rh. ~b~ Stephanie M. Moon, CMC City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Angela S. Penn, do solemnly affirm that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the City Planning Commission, commencing January 1, 2011, and ending December 31, 2014, according to the best of my ability (So help me God). ~,j ;;Z. ~ Subscribed and sworn to before me this ~ay of flc:c, 2010. BRENDA S. HAMILTON, CLERK OF THE CIRCUIT COURT BY ~~~i; ~ML '-- LI.I ~ e z <( e ~ LI. e ~ - U LI.I t= z o ~ 0::: .- CI) - c,:) LLI ~ 3: LLI ~ LLI > o Q Z II( ~ >- E Q) ""0 t::: G ~<x: "- c ~Q) :::. ~ 0\..9 c:;, 'Q) ~~ (lJ 0 ~ c o ro t::: 0 C:l~ 0"- "- 0 ~ >- s .'!::: sU .. c Q) 0 C~ .~.~ o~ lJ) Q) .2:: ..... ro ."!:: c c Q) Q) "- \..9 >- .'!::: U . ..c ..... :s: ..... :::l o ""0 Q) u:: ..: Q) >- i:i:: lJ) ..c 0 ..... ..... 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LOWER Director Telephone: (540) 853-2771 Facsimile: (540) 853-2796 January 3, 2011 Honorable David A. Bowers, Mayor Honorable David B. Trinkle, Vice-Mayor Honorable William D. Bestpitch, Council Member Honorable Raphael E. Ferris, Council Member Honorable Sherman P. Lea, Council Member Honorable Anita J. Price, Council Member Honorable Court G. Rosen, Council Member Dear Mayor Bowers and Members of Council: In accordance with the Code of Virginia regarding Ad Valorem taxation, the Office of Real Estate Valuation has completed the Annual General Reassessment for Fiscal Year 2011-2012. Change of Assessment notices are scheduled to be mailed to property owners January 3, 2011. The taxable real estate tax base increased approximately 0.23% due to this year's annual reassessment. The general reassessment change in value was a net decrease of 0.17%, while new construction activity added 0.40%, which increased the overall taxable real estate 0.23%. This increase is subject to appeals and includes new taxable construction. Nearby localities also experienced overall increases in property values. Roanoke County assessments increased approximately .51% this year and City of Salem values increased by 1. 164%. New construction in Roanoke City is expected to total $27.8 million which represents a 0.40% increase to the tax base for fiscal year 2011 - 2012. Taxable residential new construction totals $10.5 million and" taxable commercial new construction totals $17.3 million. Last year's new construction figures were $17 million for residential and $64 million for commercial, for a total of $81 million. Anticipated new construction for FY 12 is down 66% compared to the previous year. A factor in this decrease is the significant activity in the Riverside Corporate area last year. Even though the majority of residential and commercial property owners did not receive an assessment change, the marginal decline in this year's general Honorable Mayor and Members of Council January 3, 2011 Page 2 reassessment represents the first drop in real estate values recorded in the 40- year history of this assessment office. The decline is driven by similar factors affecting the nation's economy: the challenging economic conditions, unemployment concerns, rising foreclosure activity, the reduced volume of valid market sales data, including; single family residential, office, multifamily, industrial and retail properties and a continued slowdown in new construction activity. Assessment appeals to Real Estate Valuation will be conducted from January 3 through January 31, 2011. I would be most happy to respond to inquiries you may receive from our citizens regarding the reassessment. I expect the Board of Equalization to begin hearings in March of 2011. The proposed FY 2011 - 2012 values will be adjusted for appeals, tax freezes, tax abatements and other miscellaneous items. I have attached comparative information for area property assessments; as well as the finance memo and the housing profile data for Roanoke. Should you need additional information or assistance with an assessment matter, please feel free to contact me. Respectfully submitted, Su2ful 0. of (M}e( Susan S. Lower, SRA Director of Real Estate Valuation Attach me nt(s) c: The Honorable Sherman A. Holland, Commissioner of the Revenue The Honorable Evelyn W. Powers, City Treasurer Christopher P. Morrill, City Manager Ann H. Shawver, Director of Finance Stephanie M. Moon, City Clerk William M. Hackworth, City.Attorney Drew Harmon, Municipal Auditor ~. .. INTEROFFICE MEMORANDUM To: Ann H. ShaWver, Director of Finance cc: Sherman A. Holland, C~mmissioner of the Revenue Amelia C, Merchant, Director of Management and Budget From: W Susan S. Lower, Director of Real Estate Valuation Date: January 3, 2011 Subject: 2011- 2012 Real Estate Assessment Projections Listed below and attached hereto is the Real Estate Assessment projection for FY 2011 - 2012. Property values will decrease -0.17% as a result of the general reassessment and new construction will add 0.40%. The total increase in the flTOSS tax base proiected to Julv J. 2011 is 0.23%. Annual Reassessment Gross TaxableValue July 1, 2010 2011 Reassessment Decrease Subtotal . New Construction (Building Permits) New Construction (BP's from July - Dec, 2010) Estimated Additional New Construction (BP's Jan - June, 2011) Total Estimated New Construction (July- June) $6,938,105,500 $-11,682,,000 -.17% $6,926,423,500 $18,507,100 $9,259,500 $27,766,600 0.40% $6,954,190,100 0.23% Total Estimated Gross Taxable Value July 1, 2011 Note that exempt property values are not included in these amounts. I anticipate the Board of Equalization will start hearing appeals in March of next year. The above analysis will be reviewed after appeals are completed and prior to the dates of the required public notification and public hearing on the tax rate. 2011 REASSESSMENT FY 10-11 NEW CONSTRUCTION RESIDENTIAL COMMERCIAL Totals $16,896,200 $63.977.700 $80,873,900 CERTIFIED VALVE (less new construction) 10/11 Beginning Land Book RESIDENTIAL COMMERCIAL Totals $4,691,864,200 $2.246.241.300 $6,938,105,500 FY 11-12 %CHG $10,459,500 $17.307.100 $27,766,600 -38% -73% -66% 11/12 Projected Reassessment , $4,688,135,700 $2.238.287 ~800 $6,926,423,500 -0.008% -0.35% -0.17% Note - This does not include public service corporation properties assessed by the State Corporation Commission, railway properties assessed by the State Department of Taxation, and exempt properties. REDUCTIONS TO GROSS VALVES CATEGORY FY 09-10 FY 10-11 Agricultural Land Use $5,551,300 $5,116,500 Elderly Tax Freeze $44,185,553 $39,748,120 Disabled Tax Freeze $12,226,984 $11,234,975 Leaseholds $21,667,200 $20,419,835 Rehabs $115,607,300 $121,864,300 See the attached letter from the Commissioner of the Revenue to verify reductions. Reductions to FY 11-12 will be posted in July after the Land Book closes. Attachment( s) ---. CITY OF ROANOKE INTERDEPARTMENTAL COMMUNICATION ; TO: Ann Shawver, Director of Finance Vl1I Sherman A. Holland, Commissioner of the Revenue FROM: DATE: August 6, 2009 SUBJECT: 2009-10 Real Estate Assessed Value and Levy The total assessed value and levies for 2009-10 Land Books are as follows: Copy to: Evelyn Powers, Treasurer Real Estate Valuation Office CITY OF ROANOKE INTERDEP ARTlVlENT AL COlVllVlUNICA TION TO: FROlVI: Department of Finance ~ , Sherman A. Holland, Commissioner of the Revenue DATE: July 28, 2010 SUBJECT: 2010-11 Real Estate Land BookLevy The total levies for the 2010-11 Land Book are as follows: City of Roanoke Downtown Williamson Road Service Charge in Lieu of Tax (SCL T) $ 80,232,211.42 $ 368,547.30 $ 92,774.60 $ 237,442.24 Net Charge to the City Treasurer: $ 80,930,975.56 Copy to: Evelyn Powers, City Treasurer . Susan Lower, Real Estate Valuation . \.~. . 2010 Real Estate Tax Revenue Elderly Tax Freeze Market Value Frozen Value Tax Loss Pin Count: 1469 Disabled Tax Freeze Market Value Frozen Value Tax Loss Pin Count: 462 Agricultural Tax Freeze Market Value Taxable Value Deferred Value Pin Count: 11 Leaseholds Market Value Taxable Value . State Formula Reduction Amt Pin Count: 49 Rehabs property Freeze abatement , Market Value Taxable Value Abatement Pin Count: 416 EZRehab property Market Value AbatementlTax Credit Pin Count: 45 Energy Efficient Program Market Value Tax Relief Pin Count: 28 7/28/2010 Computation Gross Value 141,551,500 101,803,380 39,748,120 40,126,700 28,891,725 11,234,975 6,723,300 1,606,800 5,116,500 24,616,000 4,196,165 20,419,835 186,981,900 76,348,500 110,633,400 Levy $1,684,462.85 $1,211,460.22 $473,002.63 $47!,507.73 $343,811.53 $133,696.20 $80,007.27 $19,120.92 $60,886.35 $292,930.40 $49,934.36 $242,996.04 $2,225,084.61 $908,547.15 $1,316,537.46 I..: \" I, ~(g4-,.3 0 D 20,524,600 11,230,900 8,051,000 8,051,000 $244,242.74 $133,647.71 $95,806.90 $9,661.20 "I I I~llt m Cl1 0::0 i'? 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CITY OF ROANOKE DEPARTMENT OF FINANCE 215 Church Avenue, SW, Suite 461 PO Box 1220 Roanoke, Virginia 24011-1220 Telephone: (540) 853-2821 Fax: (540) 853-6142 JOHN W. BINGHAM, CPA Assistant Director of Finance ANN H. SHAWVER, CPA Director of Finance ANDREA F. TRENT Assistant Director of Finance January 3, 2011 Honorable David A. Bowers, Mayor Honorable David B. Trinkle, Vice-Mayor Honorable William D. Bestpitch, Council Member Honorable Raphael E. Ferris, Council Member Honorable Sherman P. Lea, Council Member Honorable AnitaJ. Price, Council Member Honorable Court G. Rosen, Council Member Dear Mayor Bowers and Members of City Council: Subject: November Financial Report - City of Roanoke The following financial report provides commentary on the City's financial results for the first five months of this fiscal year. General Fund revenues through November of FY11 are 1.2% or $974,000 above last year as presented in the accompanying financial statement. Real Estate Tax collections have increased 1.2% over last year as a result of an increase in commercial reassessments and new construction. Sales tax has declined 1.8% in FY11, however this important revenue is finally showing signs of improvement as economic recovery gradually takes place. Other local taxes, such as Utility Consumer, Transient Occupancy, Admissions, and Telecommunications taxes have increased. The most notable impact to the Other Local Tax category is the increase in Prepared Food and Beverage Tax due to the tax rate increase from 5% to 7%. The current expenditure budget for FY11 represents a 1.7% decrease from the budget as of November FY10 due primarily to budget reduction measures in programs and services. As of November, actual expenditures are down 5.8% compared to the first five months of FY1 0, largely driven by decreased costs in Public Works, Health and Welfare, Parks, Recreation and Cultural and Transfers to the Debt Service Fund. Education, the largest expenditure category, increased based on City support to schools in order to offset State funding reductions. Variances are discussed in greater detail in the expenditure section of this narrative. Honorable Mayor and Members of Council January 3, 2011 Page 2 Revenues: The current revenue budget for FY11 represents a 1.4% decline compared to the prior year budget. The largest' decrease is the Intergovernmental category. While some trends in our revenues are emerging, it is important to consider that the due dates for some of our major taxes: business license, the second installment of real estate, and personal property, are due in the second half of the fiscal year. Commentaries on significant variances are shown below. General Property Taxes increased 2.0% or $827,000 compared to FY10 due to growth in real estate assessments, most notably due to new construction. Public Service Corporation real estate tax collections are also contributing to the favorable variance due to timing in payments received from one of the Public Service Corporations in November FY11 versus December FY10. The first installment of the real estate tax, which was due October 5, is exceeding budget expectations with a collection rate of 51.1 % of the FY11 budget. Partially offsetting the increase in this category is a decline in personal property tax revenue due to lower monthly billings. However, the due date for the majority of FY11 personal property taxes is not until the second half of the fiscal year. Other Local Taxes increased 9.1 % or $1,504,000 compared to FY10. The main driver for this large increase is the rate change in the Prepared Food and Beverage Tax. Adjusted for the rate change impact, this category grew 0.1 % or $20,000. Many of our local taxes are trending higher than the prior year. Utility Consumer, Transient Occupancy and Telecommunication taxes have increased by 11.5%, 5.5% and 4.9%, respectively. The increase in Utility Consumer tax is driven by an increase in water and electric consumption when compared to FY1 b where consumption was down. Transient Occupancy tax has shown improvement since March as travel volume has increased. Telecommunications tax increased compared to FY10 due to a refund adjustment in early FY10. Some of our other local taxes have declined in FY11 as a result of continued economic challenges. Sales tax revenues are 1.8% lower this year; however November (which encompasses retail sales of September) marked the first month without a decline since reporting in February 2009. The percentages of declines have steadily decreased over the past six months and sales tax trending indicates stabilization and potential for growth. Cigarette and recordation taxes have also declined compared to last fiscal year by 16.3% and 16.6%, respectively. The cigarette tax continues to decline from citizens traveling to neighboring localities to purchase cigarettes where no cigarette tax is charged. Recordation taxes are following trends in the real estate market where sales continue to be depressed. Honorable Mayor and Members of Council January 3, 2011 Page 3 Permits. Fees. and Licenses increased 13.1 % or $43,000 compared to FY10, however, a refund of $15,000 was paid in the prior fiscal year. Adjusted for the impact of this refund, the category increased 18.5% or 58,000. New construction has increased, resulting in growth in permit revenues. Large permits obtained thus far in FY11 include construction for the City Market Building and Brandon Oaks Apartments. Revenue from the Use of Money and Property fell 34.5% or $110,000 compared to FY10 due in part to the expected loss of rental income from the Commonwealth Building. The relocation of the Health Department from a City- owned building to the Civic Mall location also contributed to the decline in rental income. Charges for Services decreased 16.7% or $468,000 compared to FY10 due in part to lower revenues received for housing federal prisoners and prisoners from other localities. The opening of the regional jail last year continues to impact these revenues. Also contributing to the decline is a decrease in billings for Emergency Medical Services. This reduction is the result of a timing issue, and billings are expected to catch up over the next couple of months. Expenditures: The current fiscal year 2011 General Fund expenditure budget totals $254.0 million and includes funding of approximately $599,000 to cover contracts and purchase orders made during fiscal year 2010 but not paid by the end of that year. The General Fund expenditures and encumbrances through November totaled $108.2 million and represent a decrease of 5.6% or approximately $6.4 million compared to FY1 O. The current fiscal year budget is 1.7% or $4.3 million lower than the FY10 budget as of November. All categories of the FY11 General Fund budget are lower than in FY1 0 with the exception of the Transfer to School Fund category. Based on this, expenditure variances as discussed in the following sections will focus on performance that varies from the budgeted expectation. General Government expenditures are budgeted to decrease 0.7% from the FYl 0 adopted budget. Expenditures increased 7.3% or $384,000 compared to FY10 primarily due to a change in the allocation of technology maintenance contract costs in FYll. Previously, costs were billed monthly through the Department of Technology to the General Fund. Currently, contracts are fully obligated in the General Fund. Adjusted for this change, general government expenditures increased by 2.2% or $11 5,000. The primary drivers of the budget variance are final wage and leave payout for the prior Assistant City Manager and Environmental Management System Institute training. Honorable Mayor and Members of Council January 3, 2011 Page 4 Public Works expenditures are budgeted to decrease 9.6% from the FY10 budget but are currently 13.3% or $1.6 million below actual expenditures through November when compared to the prior year. The expenditure variance is due primarily to a decrease in street paving. In addition to a decreased budget for paving in FY11, this category is impacted by a timing difference in contracting for paving planned for this year. Also contributing to the variance is a decline in Streets and Traffic maintenance costs. Health and Welfare expenditures are budgeted to decrease 1.3% from FY10 budget and decreased 17.9% or $3.1 million compared to FYlO. A timing difference of the health services contract with the Virginia Department of Health partially accounts for this variance. Additionally, expenditures decreased in the Comprehensive Services Act category through November, due to timing and reduction in volume of services provided. Expenditures during the first part of the year were lower than in FY1 0, but are expected to increase in the second half of the year. Transfers to Debt Service Fund declined 14.8% or $2.1 million from prior year as (of November. Series 1999A and 1999B bonds were paid off in FY10. In addition, the issuance of Series 2010A Refunding Bonds decreased the required funding of debt service for the City and Schools. Transfers to Debt Service Fund are expected to end the year on budget. Nondepartmental expenditures increased 25.1% or $282,000, due to increases in transfers to the Capital Projects Fund for the Aviation Drive and Towne Square Intersection Improvement project. Civic Facilities Fund For FY11 year-to-date, the Civic Center has held 96 events with 86,449 attendees. This is 9.4% or 11 less events, but 24.9% or 17,245 more attendees than in the same time period of FY1 O. Event highlights for November included Carrie Underwood (sold out) and Bill Cosby concerts, and the Junior League's "Stocked Market". Ovations, the catering division of Global Spectrum, also had a strong showing in November, capitalizing on these events plus catering for several community events. The net effect has contributed to a decrease in the year-to-date Operating Loss of about 12.9% or $134,000 when compared to FY10. Honorable Mayor and Members of Council January 3, 2011 Page 5 Parkinq Fund The City's Parking Fund operates seven garages and six surface lots with a total FY11 budget of just over $3.0 million. The FY11 year-to-date operating revenues are. up 5.5% or $60,000 compared to FY10. A revitalized Market Garage and a rebounding Church Avenue Garage continue to account for most of the revenue increase. Tower Garage remains significantly behind FY1 O. Vacancies caused by the exit of Carilion and Wachovia have not yet been filled. Meridium's office relocation has further hurt Tower's performance. Gainsboro Garage and Higher Education Center Lot are both significantly behind last year in revenues. The decline at these two locations is due to the elimination of paid parking for employees by the Higher Education Center and increased street parking by students. In all, eight facilities are ahead of FY10, four are behind FY10, and one is even. On the expense side, spending levels are under those of FY1 O. Due to the development of a new contract with Lanier Parking (the previous one expired July 31, 2010), the attached financial statement reflects only one month of management fees, not five. When this is taken into consideration, the bottom line improvement from FY10 to FY11 would be approximately $50,000. The contract with Lanier has now been signed, and the December financial statements will reflect full FY11 management costs. While each facility generates varying levels of income or loss, the Parking Fund as a whole meets all cash flow needs, including debt service, without General Fund subsidy and generates working capital to fund facility improvements and repairs. Market Buildinq Fund The Market Building ceased operations on September 4, 2010, with building renovations starting shortly thereafter. Because of this, comparisons to FY10 are not meaningful. FY11 expenses shown may still increase slightly, as late billings and settle-up invoices are received. Approximately $2,000 of additional expense was recorded in November. City of Roanoke Pension Plan The Pension Trust Fund experienced an investment return of 13.1 % during FY11, led by strong performance in the domestic and international equity allocations, as well as the convertible bond allocation. Investment performance for this period was well ahead of the Policy Portfolio return benchmark of 11.3%. For the five month period ending November 30, 2010, Plan Net Assets increased nearly $27 million. The net increase is a result of $3.5 million in employer Honorable Mayor and Members of Council January 3, 2011 Page 6 contributions and $35 million in net investment gains offset by $12 million in benefit payments and Plan administrative expenses. Benefits payments increased 3.3% due to higher retirement allowances having been earned by more recent retirees, while administrative expenses declined slightly. In closing, the national economy continues to improve at a slow pace. Local tax revenues are stabilizing, giving hope for improvement. The unemployment rate remained a primary challenge to growth. The City management monitors revenues and expenditures throughout the year and is proactive in addressing issues. Please contact me with a'ny questions you have on the City financial statements. Ann H. Shawver Director of Finance Attachments c: Christopher P. Morrill, City Manager William M. Hackworth, City Attorney Drew Harmon, Municipal Auditor Stephanie M. Moon, City Clerk Sherman M. Stovall, Assistant City Manager R. Brian Townsend, Assistant City Manager Al1Ielia C. Merchant, Director of Management and Budget Deborah J. Moses, Parking Facilities Manager Chris M. Connelly, General Manager, Global Spectrum Rita D. Bishop, Superintendent, Roanoke City Public Schools Curtis Baker, Deputy Superintendent of Operations, Roanoke City Public Schools CITY OF ROANOKE, VIRGINIA GENERAL FUND FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2010 STATEMENT OF REVENUE (UNAUDITED) Current Revenue Revenue Budget Revenue Source Budget Variance General Property Taxes $ 101,962,000 $ (60.541,31B) Other Local Taxes 71,628.000 (53,527 ,B91) Permits, Fees and Licenses 1,03B,000 (666,944) Fines and Forfeitures 1,606.000 (975,767) Revenue from Use of Money and Property 173,000 35,3B9 Intergovernmental 66,405,000 (4B,955,677) Charges for Services 7,477,000 (5,142,141) Internal Services 2,547,000 (1,B22,916) Transfers From Other Funds 10,565 Miscellaneous Revenue 537.268 (170,314) Total $ 253,383,B33 $ (171,767,579) Actual July 1 - November 30 2010.2011 $ 41,420,6B2 1B,100,109 371,056 630,233 20B,3B9 17,449,323 2,334,B59 724,084 10,565 366 954 $ 81,616,254 Actual July 1 - November 30 2009 .2010 $ 40,593,BB3 16,595,76B 32B,215 590,496 31B,063 1B,358,281 2,803,2B2 732,961 20,000 301,694 $ 80,642,643 STATEMENT OF EXPENDITURES AND ENCUMBRANCES (UNAUDITED) Current Expenditure Unencumbered Expenditures Budget Balance General Government $ 12,649.341 $ 7,015,241 Judicial Administration 7,564,339 4,670,405 Public Safety 57,034,442 31,109,579 Public Works 23.339,630 12,713,042 Health and Welfare 3B,921,384 24,527,656 Parks, Recreation and Cultural 9,164,472 4,793,558 Community Development 6,092,872 3,556,752 Transfer to Debt Service Fund 20,543,B33 B,644,OB5 Transfer to School Fund 6B,365,461 39,B79,B52 Nondepartmental 10,306,813 B,904,743 Total $ 253,982,5B6 $ 145,814,912 Actual July 1 - November 30 2010 - 2011 $ 5,634,100 2,B93,934 25,924,B63 10,626,5BB 14.393,72B 4,370,914 2,536,120 11,B99,74B 28,485,609 1 402 070 $ 108,167,674 1 Actual July 1 . November 30 2009 - 2010 $ 5,250,400 3.162,993 27,2BO.932 12,263,590 17,530,5B2 4,634,B74 2,744,57B 13,974,4B3 26,603,109 1,120,330 $ 114,565,871 Percent of Budget Received 40,6% 25,3% 35,7% 39,2% 120,5% 26,3% 31,2% 2B.4% 100,0% 6B,3% 32.2% Percent of Budget Obligated 44,5% 3B,3% 45,5% 45,5% 37,0% 47,7% 41,6% 57,9% 41.7% 13,6% 42.6% FY11 vs FY10 Variance 2,0 % 9,1 % 13,1 % 6,7 % -34,5 % -5,0 % -16,7 % -1,2 % -47,2 % 21,6 % 1.2 % FY11 vs FY10 Variance 7,3 % -B,5 % -5,0 % -13.3 % -17,9 % -5.7 % -7,6 % -14,8 % 7,1 % 25,1 % -5.6 % 2 CITY OF ROANOKE, VIRGINIA PARKING FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2010 (UNAUDITED) FY 2011 Operatina Revenues Market Garage Elmwood Park Garage Center in the Square Garage Church Avenue Garage Tower Garage Gainsboro Garage Campbell Garage Williamson Lot Higher Ed Center Lot Market Lot Elmwood Lot Warehouse Row Lot West Church/YMCA Lots Parking Violations (All Locations) $ 161,074 223,448 128,501 276,954 154,261 46,079 16,608 37,861 18,100 10,028 34,647 12,684 10,946 21,988 1,153,179 Total Operating Revenues Operatina Expenses Operating Expenses Depreciation 192,367 (1) 344,805 537,172 Total Operating Expenses Operating Income 616,007 Nonoperatina Revenues/(Expenses) Investment Income Interest Expense 20,521 (294,927) (274,406) Net Nonoperating Expenses Income Before Transfers and Contributions 341,601 Transfers and Contributions Net Transfers and Contributions Change in Net Assets $ 341,601 FY 2010 $ 118,474 215,331 120,746 251,743 166,773 59,750 10,225 37,338 23,769 9,117 34,324 15,130 10,946 19,451 1,093,117 521,071 348,190 869,261 223,856 9,579 (192,818) (183,239) 40,617 $ 40,617 (1) Due to new contract negotiations, this reflects only one month of Lanier Parking management fees for FY11. The new contract has now been finalized and the December financial statement will reflect six months of fees. 3 CITY OF ROANOKE, VIRGINIA MARKET BUILDING FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2010 (UNAUDITED) FY 2011 FY 2010 Operatina Revenues Charges for Services ,$ 10,560 $ 87,192 Total Operating Revenues 10,560 87,192 Operatina Expenses Other Services and Charges Depreciation 50,955 46,330 97,285 91,843 41,520 Total Operating Expenses 133,363 Operating Loss (86,725) (46,171) Nonoperatina Revenues Investment Income 3,611 5,729 Net Nonoperating Revenues 3,611 5,729 Loss Before Transfers & Contributions (83,114) (40,442) Transfers and Contributions Transfer from Capital Projects Fund 2,205,062 Transfer to Capital Projects Fund (4,182) Net Transfers and Contributions (4,182) 2,205,062 Change in Net Assets $ (87,296) $ 2,164,620 4 / CITY OF ROANOKE, VIRGINIA CITY TREASURER'S OFFICE GENERAL STATEMENT OF ACCOUNTABILITY FOR THE MONTH ENDED NOVEMBER 30,2010 TO THE DIRECTOR OF FINANCE: GENERAL STATEMENT OF ACCOUNTABILITY OF THE CITY TREASURER OF THE CITY OF ROANOKE, VIRGINIA FOR THE FUNDS OF SAID CITY FOR THE MONTH ENDED NOVEMBER 30,2010. BALANCE AT OCT 31,2010 CONSOLIDATED FUNDS $69,209,031.75 RECEIPTS $18,929,100,65 BALANCE AT DISBURSEMENTS NOV 30,2010 $26,317,638.12 $61,820,494.28 BALANCE AT NOV 30, 2009 $67,677,814:43 CERTIFICATE I HEREBY CERTIFY THAT THE FOREGOING IS A TRUE STATEMENT OF MY ACCOUNTABILITY TO THE CITY OF ROANOKE, VIRGINIA, FOR THE FUNDS OF THE VARIOUS ACCOUNTS THEREOF FOR THE MONTH ENDINGNOVEMBER 30, 2010. THAT SAID FOREGOING: CASH CASH IN HAND CASH IN WACHOVIA BANK CASH IN HOMETOWN BANK CASH IN VALLEY BANK INVESTMENTS: WACHOVIA OVERNIGHT SWEEP ACCOUNT LOCAL GOVERNMENT INVESTMENT POOL SMITH BARNEY GOVERNMENT MONEY MARKET FUND CERTIFICATES OF DEPOSIT U. S. AGENCIES VIRGINIA AIM PROGRAM (U. S. SECURITIES) VIRGINIA SNAP PROGRAM (U. S. SECURITIES) TOTAL $21,004.60 243,293.62 100.00 2,635.15 60,000.00 12,104,910.03 6,246,966.40 18,052,886.03 4,000,000.00 2,175,613.76 18,913,084.69 $61,820,494.28 DECEMBER 17, 2010 5 CITY OF ROANOKE PENSION PLAN STATEMENT OF CHANGES IN PLAN NET ASSETS FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2010 (UNAUDITED) FY 2011 FY 2010 Additions: Employer Contributions $ 3,459,989 $ 4,267,382 Investment Income Net Appreciation in Fair Value of Investments 33,972,011 36,675,855 Interest and Dividend Income 1,333,629 1,715,692 Total Investment Gain 35,305,640 38,391,547 Less Investment Expense 161,320 139,239 Net Investment Gain 35,144,320 38,252,308 Total Additions $ 38,604,309 $ 42,519,690 Deductions Benefits Paid to Participants Administrative Expenses Total Deductions Net Increase $ 11,866,922 $ 11,486,918 13,915 20,457 11,880,837 11,507,375 26,723,472 31,012,315 Net Assets Held in Trust for Pension Benefits: Fund Balance July 1 Fund Balance November 30 280,476,609 $ 307,200,081 266,428,241 $ 297,440,556 6 CITY OF ROANOKE PENSION PLAN STATEMENT OF PLAN NET ASSETS NOVEMBER 30, 2010 (UNAUDITED) FY 2011 FY 2010 Assets Cash $ $ Investments, at Fair Value 311,223,601 299,816,979 Accounts Receivable 28,238 Due from Other Funds 954 1,294 Total Assets $ 311,252,793 $ 299,818,273 Liabilities and Net Assets Liabilities: Due to Other Funds Accounts Payable $ 4,052,349 363 $ 2,376,727 990 Total Liabilities 4,052,712 2,377,717 Net Assets Held in Trust For Pension Benefits $ 307,200,081 $ 297,440,556 * Negative cash balance of $1,678,360 and $61,140 for FY 2011 and FY 2010, respectively, is reported as Due to Other Funds. Cash balance fluctuates based on the timing of transfers from Investments and is not reflective of a change in cash availability. 7 7b2 City of Roanoke Financial Report .Five Months Ended November 30, 2010 FY11 General Fund Overview · Revenues declined 2% in FY10 · FY11 adopted budget 1.4% lower than FY10 adopted · Revenue through November increased 1.2% from FY10 · Expenditures through November down 5.6% from FY10 · Both represent improvement since the October \ reporting period · Overall, Roanoke is beginning to see mild improvement in key local taxes · Performance is viewed with cautious optimism - unemployment remains high; economic challenges remain Sales Tax Below Estimate but Second Month . of Improvement Following Two Year Decline FY11 Revenue Estimate $17.995M A decline of .6% from FY10 Actual 6.1 6.05 ~ 6 ~ 5.95 ~ 5.9 5.85 5.8 4 Mos Ended 10/31 I_ Prior YTD Actual 0 YTD Budget IiiiI YTD Actual I Revenue down .4% from last year but .2% higher than YTD budget. This tax improved from September to October, the second month of increase after more than twenty months of consecutive decline. Meals Tax Increase is Growing. FY11 Revenue Estimate $15.341 M 6 5 Prior YTD PriorYTD Adjusted YTD Budget YTD Actual (/) 4 c ~ 3 :i 2 1 o 4 mas Ended 10/31 When adjusted for the tax rate change, revenue increased 1.1 % from FY10 and is 4.2% over budget. Telecommunications Tax Exce,eding. Budget and Prior Year Telecommunications Tax Revenue Estimate $7.295 M 1.9 1.8 en II: ~ 1.7 :IE 1.6 1.5 . Prior YTD adj D YTD Budget II YTD Actual 3 Mo Ended 9/30 Telecommunications tax revenue is 3.4% over budget and has increased 11.4% since FY10. A refund in FY10 negatively impacted that year and yields a favorable FY11 performance. Lodging Tax Exceeding BUdget. and Prior Year Transient Occupancy Tax Revenue Estimate $2.521 M 1.5 1.4 en II: 13 o . ~ 1.2 1.1 1 . Prior YTD adj D YTD Budget II YTD Actual 5 Mo Ended 11/30 Lodging tax revenue is 10.5% over budget and has increased 5.5% since FY10. Cigarette Tax Below Budget and Prior Year . 1.2 1.15 ~ 1.1 ~ 1.05 ~ 1 0.95 0.9 Cigarette Tax Revenue Estimate $2.393 M . Prior YTD adj o YTD Budget I!!I YTD Actual 5 Mo Ended 11/30 Cigarette tax revenue has decreased 16.3% since FY10 and is 3.8% under budget. If current trends continue, there may be a shortfall of $250,000 to $300,000. Admissions Tax Above Prior Year but Below Budget . 0.195 III c ~ 0.19 :E 0.185 Admissions Tax Revenue Estimate $0.438 M 0.2 0.18 . Prior YTD adj o YTD Budget II YTD Actual 5 Mo Ended 11/30 Admissions tax revenue has increased 2.5% since FY10 but is 3.1 % below budget. If remaining months of FY11 are at or higher than same months of FY1 0, budget will be met. Local Taxes Due in Spring · Second installment Real Estate (4/5) - Collections following first installment are meeting revenue budget and are slightly ahead of last year's collection rate · Personal Property (5/31) $17.2 M · Business License (3/1) $12.1 M · Motor Vehicle License (5/31) $1.8 M · Bank Stock (6/1) $0.8 M Other Local Taxes $ Change Revenue .. 1$ 639,65611$623:620 I 985,044 594,058 390,986 Delinguent ~eal Estate Public Service :_ Corporation * Penalties and Interest Utility Taxes r 608,889 " 543,058 3,305,993 i 2,965,293 Recordation. Taxes - 306,943: ,368,066 (61,123) I Franchise Taxes I 59,67811- -143,669 'i, - (83,991) /I * - Second installment real estate and personal property components due in second half fiscal year. Funding From the Commonwealth ...J. 260/0 of Budget Budgeted revenues down nearly $3M or 4.2% from FY10 with all categories in decline Revenue 9.110.687 J , ($110.614)1 13.5'Yoj! .1 (339.641)" 31.2% __' 185!598II . 29.9% Ii .1 (644.302) 23.7%: -. ' I Non-categorical Shared I Social ~ervf~I' Other Categorical ' 4.608.911 Other Local Revenues 111I All Other Revenues Comprise 5% Budget and Performing as Expected -- I Permits "1r;$'37Ji05~!I$ 328.2.1511 'Fines,& forfeitures 630.233, 590,496 $ Change ..- Revenue Charges for " Services Inter~al, Se~i,ces ',- 724.08411 , . '.' I . Miscellaneous : 377.519' , ' .1 (8.877}I! 55.825 ,35.7% 11.1 39.2% ."; 120.5'!~ II. ! " 31.2% ~: . 28.4% 100 68.90/0 ""t": Interest & rental 1..208.389 JI. 318.063 JI 2.334.859 2.803,282' Decreased revenues from housing of prisoners and EMS billings negatively impact Charges for Services. FY 2011 Adopted Budget Debt Service 5% All Other 3% Public Safety 23% Parks, Rec.& Cultural 4% Community Dev. 2% Capital Public Works Projects 9% 1% Adopted budget of $253,363,000 reflects reductions of $9.0 million to facilitate balancing Personnel (Salary/Benefit) Lapse. Performing Ahead of Target .. $40 $30 III C ~ $20 :E $10 $0 Target Actual Fiscal Year savings projected to exceed $1.7 million budget by $815,000 Public Safety Overtime and Fire/EMS Part-Time Above Target . lli~1 ~ I- Target Actual Expenses $33,000 above target Workers' Compensation . Expenses Above Target $1,000 $800 ~ $600 lij $400 g: $200 o ~ $0 Target Actual Expenses $149,594 above target Comprehensive Services Act Expenses Below Target $5 $4 III C $3 o == $2 :iE $1 $0 FY 2010 Actual FY 2011 Actual Target Expenses $304,265 below target Residential Juvenile Detention . Expenses Below Target. ~O] $500 . $400 -g $300 ~ $200 ~ $100 ~ $0 . II Target Actual Expenses $165,760 below target Solid Waste Tipping Fees. Below Target $1,000 $800 ~ $600 :; $400 ~ $200 ~ $0 I- Target Actual Expenses $69,130 below target Motor Fuel Expenses . Below Target 41 ~~~o .c 0 I- . -I Target Actual Expenses $30,697 below target Civic Facilities Fund Comparative Statement of Revenues and Expenses For the Five Months Ending Nov 30th -- --~-T---'-- -- -.- --.. ""_.- -"-"---'" .--- ------~.".,."-""-""'-- '.--- I FY 2011 FY 2010 Variance , Total Operating Revenues $ 2,661,408 $ 1,807,888 47% --- ---- ---- Total Operating Expenses 3,565,327 2,846,006 I -25% I l Operating Loss I (903,919) (1,038,118) 13% _ ,__, __L ---".-.-- Net Nonoperatin~ Expenses (219,176) (216,087) -1% I ~ B~fEr~ Tra nBfe rs a nd CC?~~~~"u~i~~~ (1,123,095) (1,254,2(j5) 10% -- Ne t Tra osiers a nd Contributions (42,025) (2,237), 1779% -- - I -(i~165.1zot--h(i;256,44ijl- - '-'----"--..--~-~----,-l--- ($ Change In Net Assets 7% I I I I I i o 9% fewer events in FY11 but 25% more attendees o Operating margin improved 13% vs FY10 - November highlights were Carrie Underwood, Bill Cosby and the Stocked Market as well as strong catering revenues o FY10 net transfers included a non-recurring transfer in for capttal Parking Fund Comparative Statement of Revenues and Expenses For the Five Months Ending Nov 30th I ===~=::-=J-:=--- FY 2011 FY 2010 Variance --------.. -- -,--,--"" Total Operating Revenues $ 1,153,179 $ 1,093,117 5% ~ Total oper~ing-ienses 537,172 869,261 38% I I -- ---,---- ,-- I Operating Income T' 616,007 -r-~ 223,856 175% I Net Nonoperating Expenses I (274,406) I ( 183,239) -50% 1 i- I ______ L _ _____ J ______ I -- I--' Income Before Transfers and Contributions r 341,601 -T 40,617 741% Net Transfers and Contributions I I - 0% ___"____~___ ,I, ---i-- I -34i~6011-+$ --,,-.-""'-.--.- ----~_..._- --....,.--..- Change in Net Jlssets 1$ 40,617 741% I I I I ,~ FY11 management fee has not been paid since July pending contract finalization which occurred in Dec~mber . Adjusted for this, the improvement to the change in net assets would be approximately $50,000 rather than $300,000 . Non-operating expense increase from interest expense on bonds issued in 2010 Pension Plan Trust 400 350 300 250 200 150 Roanoke Performance Period Pension Plan POlicy Month of November -.7% -.6% Fiscal YTD 13,1% 11,3% One Year 10,7% 8,2% Three Years -1,0% -2.1% Five Years 4,0% 3.0% Asset Allocation 11/30/10 Market Value Assets (Millions) ,.........- -~ ~ ~-~ . US Equities I!J Real Estate I!J Convertibles . US Fixed Income ID Cash Equiv o Balanced . International Equities In Short Performance as Expected Viewed with Precaution · Revenues expected to meet budget; most categories performing as expected · Cautious monitoring of local tax performance, especially sales tax, though it continues trend of improvement · Several key revenues with spring due dates- Personal Property and Business License - that require cautious management · Continued risk of cuts in State funding · Expenditures, in the aggregate, are well-positioned to remain within budget · Expenditure savings sufficient to address identified expenditure issues