HomeMy WebLinkAboutCouncil Actions 01-03-12
ROSEN
39284-010312
ROANOKE CITY COUNCIL
INFORMAL SeSSION
JANUARY 3, 2012
9:00 A.M.
CITY COUNCIL CHAMBER
ROOM 450
AGENDA
Call to Order -- Roll Call - Council Members Lea and Rosen and Mayor
Bowers Present.
Meeting was declared in recess due to lack of quorum.
At 9:08 a.m., the meeting reconvened in the Council Chamber.
Call to Order -- Roll Call - All Present.
A communication from Mayor David A. Bowers requesting that Council convene in a
Closed Meeting to discuss vacancies on certain authorities, boards, commissions and
committees appointed by Council, pursuant to Section 2.2-3711 (A)(1), Code of Virginia
(1950), as amended. A list of current vacancies is included with the agenda for this
meeting.
(7-0)
A communication from Council Member Anita J. Price, Chair, Roanoke City Council
Personnel Committee, requesting that Council convene in a Closed Meeting to discuss
the mid-year performances of Council-Appointed Officers, pursuant to Section 2.2-
3711{A)(1), Code of Virginia (1950), as amended.
(7-0)
1
A communication from the Acting City Attorney requesting that Council convene in a
Closed Meeting to consult with legal counsel on a specific legal matter relating to
pending litigation requiring the provision of legal advice, pursuant to Section 2.2-3711
(A)(7), Code of Virginia (1950), as amended.
(7-0)
ITEMS LISTED ON THE 2:00 P.M. COUNCIL DOCKET REQUIRING
DISCUSSION/CLARIFICATION AND ADDITIONS/DELETIONS TO THE 2:00 P.M.
AGENDA. NONE.
TOPICS FOR DISCUSSION BY THE MAYOR AND MEMBERS OF COUNCIL. NONE.
BRIEFINGS:
. Electoral Board Precinct Presentation
60 minutes
At 9:55 a.m., the Council meeting was declared in recess for a Closed Meeting to
discuss the mid-year performances of Council-Appointed Officers.
At 11 :28 a.m., the Mayor reconvened the meeting for continuation of the following
briefings.
. Fiscal Year 2013 Budget/Financial Planning Work Session -
. Parking System Use of Retained Earnings - Capital
Maintenance Projects
60 minutes
30 minutes
At 12:34 p.m., the Council meeting was declared in recess for ~ontinuation of
Closed Meeting to discuss certain vacancies on Council-appointed authorities,
boards, commissions and committees.
At 1 :22 p.m., the Mayor reconvened the meeting for presentation of the following
briefing:
· Comprehensive Annual Financial Report Overview and
Revisions to Financial Policies to align with GASB 54
30 minutes
At 1 :44 p.m., the Council meeting was declared in recess until 2:00 p.m.
2
ROANOKE CITY COUNCIL
REGULAR SESSION
JANUARY 3,2012
2:00 P.M.
CITY COUNCIL CHAMBER
AGENDA
1. Call to Order--RolI Call. All present.
The Invocation will be delivered by The Reverend Edward T. Burton,
Pastor Emeritus, Sweet Union Baptist Church.
The Pledge of Allegiance to the Flag of the United States of America will
be 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 5 at 7:00 p.m., and Saturday, January 7 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.
3
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 - TWO VACANCIES
I (EFFECTIVE JANUARY 1, 2012)
LOCAL BOARD OF BUILDING CODE APPEALS - TWO VACANCIES
(REPRESENTATIVES-A PROPERTY MANAGER AND AN ARCHITECT OR
ENGINEER)
ROANOKE VALLEY-ALLEGHANY REGIONAL COMMISSION - ONE
VACANCY
TOWING ADVISORY BOARD - TWO VACANCIES
(REPRESENTATIVES-A CITIZEN AT LARGE AND A TOWER ENFORCER)
4
2. PRESENTATIONS AND ACKNOWLEDGEMENTS:
A resolution naming The Reverend Dr. William L. Lee as the 2011 Citizen of the
Year.
Adopted Resolution No. 39284-010312.
Ceremonial copy of Resolution No. 39284-010312 was presented to Dr. Lee.
Recognition of Officer R. A. Robinson as the 2011 Officer of the Year.
Mayor Bowers recognized Officer Robinson on his commendation by the
Roanoke Regional Chamber of Commerce as the 2011 Officer of the Year.
3. HEARING OF CITIZENS UPON PUBLIC MATTERS:
NONE.
CONSENT AGENDA
(APPROVED 7-0)
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. The Mayor called attention to three requests of the City
Manager for public hearings on Tuesday, January 17 at 7:00 p.m.
C-1 Minutes of the regular meeting of the Council held on Monday,
November 21,2011.
RECOMMENDED ACTION: Dispensed with the reading thereof and
approved as recorded.
4.
C-2 A communication from the City Manager requesting that Council schedule
a public hearing for Tuesday, January 17, 2012, at 7:00 p.m., or as soon
thereafter as the matter may be heard, to consider a request of James D. and
Jerline S. Riddle to purchase City-owned property adjacent to 3543 Laurel Ridge
Road, N. W.
RECOMMENDED ACTION: Concurred in the request.
5
C-3 A communication from the City Manager requesting that Council schedule
a public hearing for Tuesday, January 17, 2012, at 7:00 p.m., or as soon
thereafter as the matter may be heard, to consider a request of Kenneth L. and
Roseanne C. Saunders to purchase City-owned property adjacent to 2225
Mattaponi Drive, N. W.
RECOMMENDED ACTION: Concurred in the request.
C-4 A communication from the City Manager requesting that Council schedule
a public hearing for Tuesday, January 17, 2012, at 7:00 p.m., or as soon
thereafter as the matter may be heard, to consider of the sale of a vacant City-
owned parcel to the Virginia Department of Transportation (V DOT) for a street
improvement project.
RECOMMENDED ACTION: Concurred in the request.
C-5 Reports of qualification of Timothy R. Spencer as Acting City Attorney of
the City of Roanoke, effective January 1, 2012; and Robert H. Logan as a
member of the Board of Zoning Appeals to replace Joseph F. Miller for a term of
office commencing January 1,2012 and ending December 31,2014.
RECOMMENDED ACTION: Received and filed.
REGULAR AGENDA
5. PUBLIC HEARINGS: NONE.
6. PETITIONS AND COMMUNICATIONS:
a. Request of Total Action Against Poverty for the City's support of TAP and
its partnership with the Department of Housing and Community
Development. Angela Penn, Vice President of Development.
Spokesperson. (Sponsored by Council Members Lea, Price and Rosen)
Adopted Resolution No. 39285-010312. (7-0)
7. REPORTS OF CITY OFFICERS AND COMMENTS OF
CITY MANAGER:
a. CITY MANAGER:
BRIEFINGS: None.
ITEMS RECOMMENDED FOR ACTION:
1. Acceptance and appropriation of funds for the Western Virginia
Workforce Development Board Workforce Investment Act Grant for
Program Year 2011.
Adopted Resolution No. 39286-010312 and Budget Ordinance
No. 39287-010312. (7-0)
6
2. Appropriation and transfer of funds in connection with the HUD
Office of Healthy Homes and Lead Hazard Control Fiscal Year
2008 ARRA Lead-based Paint Hazard Control Grant.
Adopted Budget Ordinance No. 39288-010312. (7-0)
3. Appropriation of funds from the Parking Fund Retained Earnings for
certain capital maintenance projects and repairs to be undertaken
during Fiscal Year 2012.
Adopted Budget Ordinance No. 39289-010312. (7-0)
COMMENTS BY CITY MANAGER.
Christmas Tree Pickup
. There will be an opportunity to recycle Christmas trees with brush
collections the week of Jan. 9.
Roanoke 100 Miler Kick-Off Event
. Saturday, Jan. 7, at 10 a.m. on the Roanoke River Greenway in Wasena
Park.
. Participants are invited to come out for the announcement of the program's
start, and walk across the bridge to Vic Thomas Park where they can log
their first mile on the greenway.
. In the case of inclement weather, the announcement will be held in the
Wasena Park shelter.
. Registration Fee: $19 if you want an official 100 Miler t-shirt, $9 if you skip
the shirt.
. Program starts on Jan. 7 and ends April 15.
. Register online at www.Roanoke100Miler.com
Mountain View Recreation Center
. Parks and Recreation Department is overseeing a major exterior restoration
for Mountain View Recreation Center. During the process, more than 50
gallons of paint chips were removed.
· The entire exterior of the center is being painted.
. All of the damaged windows have been replaced.
. Work is expected to be complete in late January 2012.
Annual Holiday Career & Lifestyle Fair
· The city's Annual Holiday Career and Lifestyle Fair, held last Wednesday,
Dec. 28, and was a great success.
· Approximately 600 people attended to find out about job openings in the
area.
. The city had great media coverage for this event.
· Job Fairs continue to be an effective way for the city to help those who want
to work in the Roanoke area find jobs.
7
. Next event is being planned for the spring.
b. DIRECTOR OF FINANCE:
1. Annual General Reassessment for Fiscal Year 2012-2013.
Received and filed.
2. Amendment to financial policies to align with Governmental
Accounting Standards Board (GASB) Statement 54 - Fund Balance
Reporting.
Adopted Resolution No. 39290-010312. (7-0)
3. Financial Report for the month of November 2011.
Received and filed.
8. REPORTS OF COMMITTEES: NONE.
9. UNFINISHED BUSINESS: NONE.
10. INTRODUCTION AND CONSIDERATION OF
ORDINANCES AND RESOLUTIONS:
a. A Resolution amending Resolution No. 39150-070511 adopted July 5,
2011, which established a meeting schedule for City Council for the Fiscal
Year commencing July 1, 2011, and terminating June 30, 2012.
Adopted Resolution No. 39291-010312. (7-0)
11. MOTIONS AND MISCELLANEOUS BUSINESS:
a. Inquiries and/or comments by the Mayor and Members of City Council.
Council Member Rosen read an excerpt from a letter received from a
General Contractor that had recently completed work in the City of
Roanoke. The contractor was very complimentary of City staff and
the entire permitting and inspection process.
Council Member Rosen commented on a report that had just been
released by Moody Analytics that stated Roanoke had gained jobs,
had a diversified economy and on average had better household
balance sheets. He commented that it was nice to receive such a
report from an agency just prior to that agency reviewing the City's
bond rating.
8
Council Member Lea commended City staff for responding to his
requests for street lights on Cove Road. He commented that it was
now much safer for pedestrians.
b. Vacancies on certain authorities, boards, commissions and committees
appointed by Council. NONE.
At 3:33 p.m., the Council meeting was declared in recess for continuation of a
Closed Meeting to consult with legal counsel on a specific legal matter relating to
pending litigation requiring the provision of legal advice.
At 4:09 p.m., the Mayor reconvened the meeting, with all Members of the Council
in attendance.
CERTIFICATION OF CLOSED MEETING. (7-0)
12. ADJOURN. 4:10 p.m.
9
CITY OF ROANOKE
OFFICE OF THE MAYOR
215 CHURCH AVENUE, S.w., SUITE 452
ROANOKE, VIRGINIA24011-1594
TELEPHONE: (540) 853-2444
FAX: (540) 853-1145
DAVID A. BOWERS
Mayor
January 3, 2011
The Honorable Vice-Mayor and Members
of the Roanoke City Council
Roanoke, Virginia
Dear Members of Council:
This is to request a Closed Meeting to discus,s vacancies on certain authorities, boards,
commissions and committees appointed by Council, pursuant to Section 2.2-3711 (A)(1),
Code of Virginia (1950), as amended. A list of current vacancies is included with the
agenda for this meeting.
Sincerely,
~~~
David A. Bowers
Mayor
DAB:ctw
COMMITTEE V ACANCIES/REAPPOINTMENTS
January 3, 2012
VACANCIES:
,
Five-year term of office of Robert P. Wingfield ending September 30,2011; and unexpired term of
office of Peter Clapsaddle ending September 30, 2013, as members of the Local Board of Building
Code Appeals. Criteria require a representative in property management and an architect or
engineer.
Three-year terms of office ending December 31, 2014 to replace William D. Poe and Diana B.
Shepherd as members of the Board of Zoning Appeals. Inasmuch as the incumbents have served
three consecutive terms of office, they are not eligible for reappointment.
Unexpired term of office of Robert Logan, III, as a City representative of the Roanoke Valley-
Alleghany Regional Commission ending June 30, 2012.
Three-year terms of office of Thomas W. Ruff (citizen at large) and Greg Spangler (towing
enforcement) as members of the Towing Advisory Board ending October 31,2014. Criteria require
a citizen at large representative and a representative in towing enforcement.
REAPPOINTMENTS:
Beth Christopolous as a City representative of the Local Office on Aging Advisory Board for a
one-year term of office ending February 28, 2013.
CITY OF ROANOKE
CITY COUNCIL
215 Church Avenue, S.w.
Noel C. Taylor Municipal Building, Suite 456
Roanoke, Virginia 240 11-1536
Telephone: (540) 853-2541
Fax: (540) 853-1145
Council Members
William D. Bestpitch
Raphael E. "Ray" Ferris
Sherman P. Lea
Anita J. Price
Court G. Rosen
David B. Trinkle
DAVID A. BOWERS
Mayor
January 3, 2012
The Honorable Mayor and Members
of the Roanoke City Council
Roanoke, Virginia
Dear Mayor Bowers and Members of Council:
I wish to r,equest a Closed Meeting to discuss the mid year performance of
Council-Appointed Officers, pursuant to Section 2.2-3711 (A) (1), Code of Virginia (1950),
as amended.
. Sincerely,
~~
Anita J. Price, Chair
City Council Personnel Committee
ANJ:ctw
CITY OF ROANOKE
OFFICE OF THE CITY ATTORNEY
464 MUNICIPAL BUILDING
215 CHURCH AVENUE, SW
ROANOKE, VIRGINIA 24011-1595
Timothy R. Spencer
Acting City Attorney
TELEPHONE 540-853-2431
FAX 540-853-1221
EMAIL: cityatty@roanokeva.gov
Steven J. Talevi
Gary E. Tegenkamp
David L. Collins
Heather P. Ferguson
Assistant City Attorneys
January 3,2012
The Honorable Mayor and Members
of City Council
Roanoke, Virginia
Re: Request for closed meeting
Dear Mayor Bowers and Council Members:
This is to request that City Council convene a closed meeting for consultation with legal counsel,
pursuant to Section 2.2-3711.A.7 of the Code of Virginia (1950), as amended, on a specific legal matter
relating to pending litigation requiring the provision oflegal advice.
With kindest personal regards, I am
Sincerely yours,
~--- -
(. ~~17 ,--'-
- "
----..~ .
}mothy: . pencer
cting City Attorney .
TRS/lsc
c: Christopher P. Morrill, City Manager
Ann Shawver, Director of Finance
Stephanie Moon, City Clerk
2)(1e i Inch, No a
,-- IS;" l nY‘gcif
/�'w•i, kLL 9'
.- ,
I. i
1
_ ..r "�e�e.1� ss
1 ; , SST\ ~` �ft� (,%
1. 0' t s
I It.."4.):elf*, ,„e,1' .y� V --1 ..d
)li; "�.,. - i"�< ��A. �` '�r. '"ice_ ♦ —`: •c ..i ck
, ......�.. e�1,I4,. N N' 1t!f I .* ,..4. ;
■
-tee` P - , d., '� i '� i
1. i7 1. ..;,, 'f' a: s nom ci`, , " , ,
cZ r a _al ,
1 4ft ",' 5 N' yaw .y✓y-gyp, F, 4c�-\" k i■777 `\�.`,' n.
Rts@ XS(4 ;\ R
J
a.".o.... c sit. rt.- 1 i •1 ► •� .ot* i
4
•,,
,, ,_ AP"-,. r''"'t,-L -Ve,.." .". grs y' 1 a� ..1 -, ;.-. 4,-..., °'"" t r `_. ''1.94 4e ,.jam {17.t �i:'/ _;•a'�
t,.,�. 1 J S 0 vml �,. r l ,• j 1 - T t '•!,/,',1,,,,--,` -'S?'..■ ' '-c.*' '' , riZc_.,s.,47,,,,,,c.• ' : ...,4 ,I j'Y_,...c f":-'-;,t' •.?. ‘tt\\15%, Itrott:-- 14P4t ,
- 7 �' ;%,.ce a e¢kc �5 :FS {;, t 4
�'. ']nl e ✓ `w jam, `VM i \ C •'�
N'''''''le II/ - ? 'ft Pt•-•t iv : . ' \.. .., f ilstiFS:.V
,' c i ` ,
-----• ""�' //J___•",/ -.', •'.� ljr > Poi r,Nicn
1. . �I//'lam f, +r i )).aa... -
Hour,of De cgazs DaIrcb
VOTER PRECINCTS &
-- '� = HOUSE OF DELEGATES DISTRICTS ',
c4' CITY OF ROANOKE �,11�
0.55 0.275 0 0 55 . {r 1
s'''' Miles
•
I e ®e
, Darwin*
/..,
�\ -
, t � �` " !
) ' S . —:.. \ - ' Ill•
I NUMBER OF ■ • ':. i- 4el•., J , A
■ PRECINCT VOTERS 1 h+' �. - I[4;t 1 r
•►- P1 2230 - P1 8 / •� ,F• ,� ,� I/ r- , Ie i•P2 2995 ' . ",• r. ! ,* %,. , ' , 7, • ■ . _... . /-\
P3 3773 - � A♦ • e # I DO i v .,Ai P4 2640 �eiecatec.r.-1 Gdt V
P6 2319 ' r. '/ *Ill (Delegates t t
P5 1719 `a-IPiI7l p )\ tl
..sue 1 - .�
P7 4064 J ` . ,^ `•;N 1-•••• I- 1:f n ,, f
P8 2344 I . �.\ P1 6 . A `t I!• .,r\ s' itra �1
P9 3524 `_) . \ a ;L, A il�Ft ` �, _. ��, ..;'., '
P10 3788 -� j
P11 3835 „ .�. ' ► y� I
P12 1277 ��r .1 �.�.7"' R i /
P13 3035 1 _ ~ .: P15: t.: ':� f%' /� ',_ :: % /
P14 3008 _�,�_ ill f, ■ ° " .r......: :. ��e
\v) 1
P15 3920 ,, : _• •P16 3891
P17 2886 "; r' .
P18 2182 ,... f _mac _ -'
P19 3822 /_ - _ �. - ...` •'f V =P5
\,, I , 4 i,
i-- _ P8 1a y
�. br
�_) � — P7 C Fk:r
`\e P12 ,' ' •, • -
t C,�-° i-• ,, i .t:;': . a s ;f2awC407 J
,.,.
n�wapm '( ._:. fir.
N,/ ( -V
i _ "
1% .e
Cvnl PO,Pier.
Propos.VOIa PICK n-
i..
�—,.....z..__'--....7 M / l, Cara V Drecncm
\ ll'�wu.e a o+Nrr.C..
I. .L�
...
\ CITY OF ROANOKE
.\ ) Proposed Voter Precincts
\-\ /
/ .-.\`-!�. 0.5 0.25 0 ..L. .
beitine9 NO I
Iffpr.
Precinct
Realignment
ROANOKE
What is the Background and Schedule?
Fall 2011 A team began reviewing Roanoke's precincts and
developed a proposed realignment map. The team
included all three members of the Electoral Board,
the Voter Registrar, GIS staff, and Planning staff.
January 2012 The Electoral Board briefed City Council on the
proposed Realignment map. City Council direct-
ed the team to roll out the proposed realignment
for citizen review and comment.
August 2012 Conduct public outreach. Five sessions are
scheduled in various locations throughout the city.
September 2012 The Electoral Board will report back to City
Council
December 2012 Target for City Council vote
Winter & Spring U.S. Dept. of Justice review and target to become
2013 effective
.r■
Precinct
Realignment
n ment
ROANOKE
Why are we proposing a change in
the precinct lines?
• Currently have 32 precincts; this map has not changed since
1967.
• Some polling places are too close to each other (for example,
Preston Park, Raleigh Court/ Patrick Henry)
• Some precincts have too few people. The ideal number is 4,000
registered voters.
• The number of voting machines is fixed and cannot be increased.
• Difficulty recruiting enough election officials. Elections in-
volve 16+ hour days from 4:30 a.m. to 8:30 p.m. and later, during
which election officials cannot leave the polling place. Extensive
training is required prior to each election. Each polling place re-
quires at least four election officials; usually 5-7 are required.
,r►
Precinct
Realignment
ROANOKE
What did we consider in developing
the proposed new map?
• Precincts must have between 500 and 5,000 registered voters.
The ideal size is about 4,000 registered voters
• Precincts should follow existing House of Delegates district
lines to avoid the confusion of voters in the same precinct vot-
ing in different House districts.
• Precincts should be "compact and contiguous." Keeping them
compact helps ensure no voters have to travel excessive dis-
tances to get to their polling place.
• Polling places must comply with the Americans With Disabil-
ities Act.
• Precinct boundaries must be readily identifiable, ideally follow-
ing fixed geographic features such as roads, rivers, rail lines,
etc.
• Access to public transit lines.
• Changes to precincts must be reviewed and approved by U.S.
Department of Justice to ensure compliance with the 1964
Voting Rights Act.
►
Precinct
Realignment
ROANOKE
What would the proposal do?
• Reduce 32 precincts to 19 precincts
• Save at least $10,000 per election, probably more.
• Some polling places would change. Many will
remain the same. Some citizens will have to travel
a little farther to the polling place; some will have
a shorter trip.
• Roanoke will maintain the same number of vot-
ing machines, which will result in more voting
machines at the new precincts to ensure efficiency
of the voting process.
Precinct
Realignment
ROANOKE
What are the next steps?
• Complete citizen review phase by end of August
• Make adjustments to the map, if needed
• Present new precinct map to City Council in September
• Identify new polling places
• City Council public hearing vote to approve new pre-
cincts prior to end of 2012
• Review by U.S. Department of Justice
• Implement in spring 2013
• Registered voters will be notified about the location of
their polling places 15 days prior to any election.
iprpr,„
Precinct
.....0mg
Realignment
ROANOKE
How can I comment or ask questions
about the realignment?
Contact the Registrar's Office
Noel C. Taylor Municipal Building, Room 109
215 Church Avenue, SW
Roanoke, VA 24011
Office Hours: 8:00 a.m. - 5:00 p.m., Monday - Friday
By Phone: (540) 853-2281
By Fax: (540) 853-1025
By E-Mail: registrar @roanokeva.gov
Citizens can also address comments to City Council, which
will schedule and hold a public hearing prior to any vote on
the proposed realignment.
Budget/Financial Planning
Work Session
FY 2012-2013
January 3, 2012
Agenda
· FY 2012-2013 Local Tax Projection
· Preliminary Non-Discretionary Cost
Increases
· City Retirement Cost Adjustment
· Citizen Budget Engagement Team
· Next Steps
2
0ricF-/~# 2.
!''' ...~ i.... #' ,.~. ....,.-":, ~.. ..~\.......
....::- . rIo- ';::li 1 ~ ",. :r !\_4
Revenue Budget by Major Category
Fiscal Year 2012 Adopted
Other Local
Tax..
Real Estate Tax $ 79.6 13"
Intergovernmental $ 67.7
Sales $ 18.5
Personal Property $ 18.7 Prepared ReaJEstate
Food
Business License $ 11.9 ." ""
Prepared Food $ 16.5
Charges for Services $ 10.1
Other Local Taxes $ 32.7
Other $ 3.0
TOTAL $ 258.7
3
FY 2013 Projected Local Tax
Compared to Adopted FY12 Budget
FY12 $ Growth % Growth FY13
Category Adopted (Decline) (Decline) Preliminary
Real Estate Tax 79.586.000 $ (1.059.000) -1.3% 78.527.000
Personal Property Tax 18.672.000 17,000 0.1% 18.689.000
Sales Tax 18.515.000 776.000 4.2% 19.291.000
Prepared Food & Beverage 5% 11.782.143 247.857 2.1% 12.030.000
BPOL Tax 11.910.000 149,000 1.3% 12.059.000
Telecommunications Tax 7.682.000 (432.000) -5.6% 7.250.000
Transient Occupancy Tax 2.878.000 146.000 5.1% 3.024.000
Other Local Taxes 22.202.000 249,000 1.1% 22,451.000
Sub Total Local Taxes without the 2%
Prepared Food & Beverage Tax 173.227.143 93,857 0.1% $ 173.321.000
Prepared Food & Beverage 2% to RepS 4,712.857
4
Dates to Watch for
Refinement of Local Tax Estimates
· Jan 31 sl - appeal period ends for real estate
· . Late F eb - real estate esti mate refi ned
· February - NADA data available for 2012 vehicular
values; personal property estimate updated
· March 1 - Business license tax due date
· Mid March - BPOL estimate refined
· Early April - Commissioner of Revenue releases
2012 personal property levy
· Mid April - personal property estimate finalized
5
Revenue Values
Local Tax Revenues Shared 40.0% with Reps
Current Maximum Rate Change
Tax Rate Rate Value
Real Estate $1.19 None $.01 = $649,000
Personal Property 1 $3.45 None $.01 = $51,000
Cigarette (20 per pack) $0.54 None $.01 = $45,000
Transient Occupancy 7% None 1% = $432,000
Admissions (General) 5.5% / None 1 % = $76,000
Prepared Food &
Beverage 5% None 1 % = $2,406,000
Motor Vehicle License $20.00 $33.00 $1 = $100,000
Note 1: The Personal Property irT'4Jact is calculated on the local portion of the tax only; It does not include PPTRA
6
The Governor's Commonwealth Budget
· Increased Street Maintenance funding
· Locality "Aid to the Commonwealth" reduced by
17% (positive impact to the City)
· VJCCCA funding reduced by 11 %
· No change to HB599 Law Enforcement funding
7
Preliminary FY 2012-2013
Non-Discretionary
Cost Increases
Total: $762,478
· Medical - $302,787
- Anticipated increase of 10% in employer share
January 2013
· Dental - $15,972
- Anticipated increase of 5% in employer share January
2013
· VRS - Sheriff - $443,719
- Increase in contribution rate from 17.26% to 22.42%
8
City Retirement Cost Adjustment
· City Retirement Contribution - ($1,500,317)
- Decrease in employer contribution rate from 18.04%
to 15.60%
- Rate reduction considered to be short term
· Upcoming GASB changes, market volatility in
FY12, recommended benefit revisions including
COLA funding policy all expected to impact future
rates
- Based on anticipated future retirement contribution
rate, recommend using to fund one-time expenses
· Facilitates reallocation of funding to City
Retirement when needed
9
Citizen Budget Engagement Team
(CBET)
· First meeting held on Thursday, December
15,2011
· Topics: Budget, Budgeting for Outcomes,
team responsibilities
· Orientation for all team members
completed
· Next meeting scheduled for Tuesday,
January 24, 2012
10
Next Steps
· Budget Offers due Tuesday, January 10,
2012
· DMB Staff and Priority T earn Reviews
· Council Briefing - February 6, 2012
- Offers by Priority
- Price of Government
- Capital Planning
11
Citizen Budget Engagement Team Members
FY 2012-2013 Budget Process
Basil Akers SW
Paul Economy SW
Braden Gandee SW
Brian Gibson SE
Cyndi Hilton NW
Phyllis Johnson NE
Gail Kinzer NE
Ron McCorkle SE
John Reburn SW
James Settle SW
Eltamae Wilson NW
'f ,_
Briefing #4
Roanoke City Council
January 3,2012
Comprehensive Annual Financial Reports
and
Reserve Policy Changes to Align with GASB 54 .
\
. .
I Comprehensive Annual Financial Reports
(CAFRs)
. City of Roanoke
Ii Roanoke Pension Plan
~ Roanoke City Public Schools
!J Other financial reports
o Greater Roanoke Transit Company
o Roanoke Civic Center
o Various Related Organizations
~~~----------_._--~-- ----- ----~~~-~-~-~ ~~--
2
J
D
D
D
D
D
ntroductory Section
o Letter of Transmitta
Financial Section
o Independent Auditors' Report
o MD & A
o Most Financial Statements and Footnotes
Required Supplementary Information
o Budget Schedule
o Funding Progress - Pension Plan, OPEB
Supplementary Info
o Combining Financial Statements
Statistical Section
Compliance Section
o Schedule of Expenditure of Federal Awards
o Additional Reports of Independent Auditors
3
D
Main Sections
of City CAFR
for Elected Officials
City CAFR Highlights
\.
4
. Letter of Transmittal (p 7)
. Go.vernmental Funds Balance Sheet (p 46)
. Governmental Funds Statement of Revenues and
Expenditures (p 48)
. Selected Statistical Tables
t
o Fund Balances (p 132)
o Principal Property Taxpayers (p 138)
o Debt Information (pp 139 - 141)
o Demographic Information (p 142)
o Construction Statistics (p 143)
o Principal Employers (p 143)
o Operating Indicators (pr 144 - 146)
I City Performance Highlights - FYll
o Unqualified (clean) independent audit opinion
o One Management Letter comment recommending
improvements to capital asset procedures
o First year of revenue growth since FY08
o Funding of Roanoke Schools up $6.8M or 11 %
o Strong expenditure control
o Increased reserves
o Capital replacemenUmaintenance
o General Fund balance increased nearly $2M
o City achieved goal of 100k of budget in reserve
o City achieved compliance of debt service not to
exceed 100k expenditures
5
I Roanoke Pension Plan CAFR
':-"
.. Introductory Section
o Letter of Transmittal
II Financial Section
o Independent Auditors' Report
o MD & A
o Financial Statements and Footnotes
o Required Supplementary Information
o Other Supplementary Info
Investment Section
Actuarial Section
Statistical Section
6
- .
Pension CAFR Highlights for Elected Officials
o Letter of Transmittal (p 2)
o Statement of Plan Net Assets (p 20)
o Statement of Changes in Plan Net Assets (p 21 )
o Schedule of Funding Progress (p 33)
o Schedule of Employer Contributions (p 33)
o Investment Policy (p 38 - 39)
o Investment Results (p 41)
o Summary and Details of Investments (pp 42 - 53)
o Summary of Benefits (pp 65 - 71)
7
Roanoke Pension Plan Performance Highlights - FYii
. Unqualified (clean) independent audit opinion
. No Management Letter comments
. Investment growth of 25.20Ib (p 17)
. Growth outpaced policy index of 22.40Ib (p 17)
. Roanoke Pension Plan in top 5th percentile of
similar plans
. Funded ratio of 86.30Ib (p 33)
. City slightly overfunded FY11 ARC (p 33)
8
~ .
GASB 54 Streamlines Fund Balance Reporting
FY10 Fund Balances
Total GASB 54
Category Governmental Class-
Funds ification
Reserved for:
Encumbrances 6,744,841 R,C
Unreserved
Designated for Debt Service 1,213,260 C
Designated for Future Year's 2,424,770 R, C, A
Expend itures
Designated for Self-Insured 250,000 *
Claims
Designated for Econom ic and 3,696,973 C
Community Development
Reserve
Designated for Budget 19,278,522 U
Stabilization
Undesignated 4,833,345 U
Total Fund Balances 38,441,711
FY11 Fund Balances
Total
Category Governmental
Funds
Restricted 3,465,004
Committed 15,975,750
Assigned 3,179,312
Unassigned 25,535,754
Total Fund Balances 48,155,820
Note: The increase in fund balance is caused
by revenues over expenditures in the General
Fund, larger purchase orders outstanding
in FY12 and FY12. bond proceeds not spent.
* Based on the current funding approach
toward reserves, there is no
longer a reserve for self-insured
claims in the Governmental Funds.
9
... ..
I Reserve Policy Changes
to Align with GASB 54
II Language changes to conform to GASB 54
terminology
o Undesignated -> Unassigned
Specify category of reporting of Roanoke
reserves
Ii No changes in funding methodology
II Next step - City Council amend Roanoke
Reserve and Debt Management Policies at
2 pm session
10
~.... ~
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA,
The 3rdday of January, 2012.
No_ 39284-010312.
A RESOLUTION paying tribute to the Rev. Dr. William L. Lee, on being
selected as the City of Roanoke's 2011 Citizen of the Year.
WHEREAS, Dr. Lee, who hails from Nuttsville, Virginia, in Lancaster County,
received his Bachelor of Science degree in Special Education from Virginia State
University c.um laude in 1974, his Master of Divinity from the Duke University Divinity
School in 1978, and later his Doctorate of Ministry degree from Ashland Theological
Seminary in 2009;
WHEREAS, Dr. Lee came to Roanoke in 1974 where he first worked as a teacher
in the City school system, but then joined Loudon Avenue Christian Church, where after
a couple of years he was named senior pastor and has served the congregation in this
capacity ever since;
WHEREAS, inspired by his own father's experience with the challenges of our
nation's health care system, Dr. Lee founded the Kuumba Community Health and
Wellness Center in 2001, the Roanoke Valley's only federally subsidized community
health center, which provides-health services to anyone in need;
WHEREAS, under Dr. Lee's guidance, Kuumba has grown to become New
Horizons Healthcare, which over the past 10 years_ has seen its patient visits increase
from approximately 4,300 to more than 13,000, and recently broke ground for a $10.7
million new facility on Melrose Avenue;
WHEREAS, in November 2009 the New Horizons board recognized Dr. Lee's
dedication by naming The Rev. Dr. William L. Lee Educational Center in his honor;
WHEREAS, with Dr. Lee's dedication to physical and spiritual health, he led
Loudon Avenue Christian Church in being one of the first congregations to participate in
a Congregational Nursing Program through Carilion Clinic, is currently collaborating
with LewisGale Medical Center and CURE - Clergy United to Reclaim the Ecclesial- to
provide health care outreach programs in the African American community, and
participates in an outreach ministry to people with HIV/AIDS;
WHEREAS, in addition to his work for the church, Dr. Lee has lent his talents to
such roles as Resolution Specialist with the V.A. Medical Center in Salem, and
Moderator of the Christian Church (Disciples of Christ) in the United States and Canada
from 2006 to 2008;
WHEREAS, Dr. Lee has served on the boards of Blue Ridge Community
Services, Good Samaritan Hospice, Child Health Investment Partnership (CHIP), United
Way of the Roanoke Valley, Virginia Western Community College Foundation, and the
William Fleming High School Parent Teacher Student Association;
WHEREAS, Dr. Lee also serves on the boards of a number of other organizations
throughout the country, including the Brite Divinity School in Fort Worth, Texas, the
Mission Alignment Coordinating Council of the Christian Church (Disciples of Christ),
and the century-old African American Greenwood Cemetery in Nashville; and
WHEREAS, Dr. Lee has not only served with great pride and joy as pastor of
Loudon Avenue Christian Church for more than 34 years, he has also dedicated himself
to improving the health and wellness of his community, and has made a significant and
positive impact on the citizens of the Roanoke Valley.
THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as
follows:
1. This Council adopts this means of recognizing and commending the Rev. Dr.
William 1. Lee, the City of Roanoke's 2011 Citizen of the Year.
2. The City Clerk is directed to forward an attested copy of this resolution to Dr.
William 1. Lee.
ATTEST: '
.~rn.~
City Clerk'_
Roanoke Regional Chamber of Commerce Recognizes Officer R.A.
Robinson as OffiCer of the Year
On October 14, 2011, Officer R.A. Robinson was on foot patrol in the 500
block of Janette Avenue when he heard a gunshot. He traveled toward
the sound of the gunshot and saw a group of individuals.
Officer Robinson then saw an individual r~nning toward a residence and
pursued that individual on foot. That individual got into a vehicle fled.
Officer Robinson was able to obtain a description of the vehicle and air
the description on the police radio.
Officer Robinson then spoke with the victims and determined that the
incident was a robbery. One victim stated that money and an item were
taken from him. The other victim stated that he was able to flee the
scene, however one of the suspects fired a shot at him which nearly
struck him in the head.
As Officer Robinson was gathering information from the victims, other
officers located a vehicle matching the description of the suspect vehicle.
Through the course of the investigation officers determined that the
three individuals in the vehicle were the suspects. They were arrested
and charged with a total of 1 0 charges.
Officer Robinson ran toward an area when he heard a gunshot,
jeopardizing his safety to protect citizens. His actions enabled other
officers to locate and arrest the suspects in a violent robbery.
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Request Public Hearing for Sale of City-Owned Property, being a
Portion of Tax Map No. 6472302
Backg rou nd:
James D. and Jerline S. Riddle own and reside at the property located at 3543
Laurel Ridge Road, identified by Official Tax Map No. 6490605. By letter of
interest, dated August 3, 2011, Mr. & Mrs. Riddle expressed a desire to purchase
a 6,374 SF portion of the Countryside property (Official Tax Map No. 6472302).
The land is located directly adjacent to their property. (See attached exhibit).
The sale of this portion of property was specifically recommended by the
Countryside Master Plan because it would "square off' Mr. & Mrs. Riddle's rear
yard, thus resulting in a more harmonious relationship to future developm'ent and
use of the Countryside parcel. The proposed action would have no identifiable
adverse impact on future use of the remaining portion of the Countryside
property, and would not enable the Riddle's to further subdivide their property.
The Riddles have agreed to assume all costs related to the property conveyance,
including the boundary survey and preparation of a subdivision plat to combine
the acqu ired land with their existing parcel.
The value of the land is established at $0.30 per square foot, resulting in the
proposed sale price of $1,912.20. The value of the land reflects the current per
square foot assessed value of the former golf course property.
Recommended Action:
Authorize the scheduling of a public hearing to consider the sale of the
aforementioned property, for January 17,2012, at 7:00 p.m.
-~~---------
Christopher P. Morrill
City Manager
Distribution: Council Appointed Officers
R. Brian Townsend, Assistant City Manager for Community Development
Susan S. Lower, Director of Real Estate Valuation
Robert B. Ledger, Manager, Economic Development
Cassandra L. Turner, Economic Development Specialist
t.l
~
o t
o ~I- ~
Z OWW
w"-en
C) 2;2; ~
wo..o..!ti:'
...J ZZO
00:1:
0:::0:::0..
--~
I I ~
.o:j
~
~9::~
llj'l;;:j'"
...."'CO
-"'!::II:)
!le~~~
k~~~~
~~~I:::~
:...~~~
ffi
!Q~ ~
..........l&.IWO
~~~~\5
mZIL
~~woti
W~!Qen:::l ~
~~:s~l= ~
OV 1'l0 co..... .....0
10 10..... .......... co_ 10
'0 C)N 10_ IOItl IOU) N
zO! 101") NItl 10 _ 01
W gig "':0 "":ai IXi
::E ti~
:::l Itlm 01 01 0
en iS~ 0101 mco .....co 01
! .......... .......... .......... .....
Iii C)~ co _ Itll') ~-<'I
v..... Itl<'l 0.....1IJ
:J z~ com vv oo~
-N I'lIO ON mNN
~ ~Ili 0"': ~ui lli"':lli
O~ CON NI'l ~-<'I
COllJ .......... moo
a z..... 1010 1010 10..........
a:::
0
0 ffi
t.l
Z <'II') vI/) IO.....~
o:::~
0
t.l
I-
Z
W
a
~
____....!~"!.O.!..~~d.fL~__
~ :1-v.y
~
...... "9 ;go-
!Z
~?i
::::IlL
t.lo
;0
~~
!!!j!:
~~
I1.t
enW
-0:::
j!:0:::
1-8t..:
$(/l~
~-w
~!ial
-cCO
i5?;ji
t.l~W
~:::l8
w(l)~
0:::9~
!;gw~
_ii:lt:
'"
(j
It'j ~ iiJ~
..... ~ ~ !
O~~'ii.
..... '" a:lll
"
.
~~
Q:i ~ ~~
:-oJ ~~
~ ~ Q;t
lC ~~;]
~"i
.....
.....
-
Z (/l
o 0
~Ui \5 ~
~~ "frlr;:- .
::Ell) 0 O:::(I)Z
"- a::E1') .- t.l ::ENOcC::
O:::WWo wo;:'j Cl. 2<OcC-0
O...J...Jz Q:OI ow ttOOZ<'I
"-OOQ ~l--;;; o~ 1'f0:::8_
I- 00 en ~~ v 10 3:'-'~ (l)we~e;~8b-'
cC -5 ... I') I')W ~",...,"
...J n; c::: - '" Q: 0 It: 3: 01 a::: II: W e LJa: i'i) "-
a....... ljllDo..o..13 go W ~3~~w<'l Uo
Z .:::l...J Q:C)o...JQ:W:I: cC...JolDoo
o .Ulenw...,<ccz[[I....~ellt) WZ~::~~
-0 wt.l:S 0.. cC <I1.Z 1'0 O:::cCt.l~ "1-
~ LaJO:::~o.....J _ Iii _F~m~ooi~l:l
aUlzwl1. ~~ I-I.&..CO~Ili"':-1l1:o t.lVj
. [[ILaJ::iF ZOB gOlt:Q!::Oz~'::!~(I)
m~C:::el Qc;o o..8t.l I I o>-~...,
~ LaJz !!lWal <[[I .eOI-a:::
-;)-;)w ~~o.. ::EI- ;5ll)l=!um
lDacC -cClDcC
mW::l: ...J I-:::l
::::l~ 11. ~9t::
000 t.l en
- Z ~
<3 11.
Q:
~I
C1
~
f;.l.
()
~
~
....
C;
N
."" .
.....
u
w
c
"
"
~ 8
t.)
00
~
ea II
p.::
t:J
..
cl
I~
~1
.....
.
~.
-z.
..
<2..~
~~
~..O
Q'"
~
~
~
~
[[I"
~1
:Z~
a::
O(
~
::E
:J
w
~8
2;~
Eel
~iii
W
we
:J!Q
13>-
8!1i:
~!i
~5
....a1
Vo
~o
o
:::E~
~a:
~~
~~
!tcC
10-
cCO
.\>1
ui ~~
\ui W
\ -: '.\.:~
\ \t> \ -<n-;r.
\(,\0
\
~
to)
.r-~
!3~
i...
....J!~
~g.2~~~
~~S~~~
Uq~~~lIIc;j
~~~~~~~.
~~~~~l'i~
~
~
~
~~
~~
Il:l
.........----..
--------------
~
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Request Public Hearing for Sale of City-Owned Property, being a
portion of Official Tax Map No. 6472302
Kenneth L. and Roseanne C. Saunders currently own and reside at the property
located at 2225 Mattaponi Drive, NW, identified by Official Tax Map No.
6431412. By letter of interest, dated August 30, 2011, Mr. & Mrs. Saunders
expressed a desire to purchase a 10,525 square foot portion of the Countryside
property (Official Tax Map No. 6472302) which is directly adjacent to their
property. (See attached exhibit).
The sale of this portion of property is beneficial to the City because it will result
in less land that will need to be established as a naturalized area and the
Saunders will assume maintenance of it. The proposed action would have no
identifiable adverse impact on future use of the remaining portion of the
Countryside property.
The Saunders have agreed to assu me all costs related to the property
conveyance, including the boundary survey and preparation of a subdivision
plat to combine the acquired land with their existing parcel.
The conveyance of the land would not enable the Saunders to further subdivide
their property. The value of the land is established at $0.30 per square foot,
resulting in a proposed sale price of $3,157.50. The value of land reflects the
per square foot assessed value of the former golf course property.
Recommended Action:
Authorize the scheduling of a public hearing to consider the sale of the
aforementioned property, for January 17,2012, at 7:00 p.m.
Christopher P. Morrill
City Manager
Distribution: Council Appointed Officers
R. Brian Townsend, Assistant City Manager for Community Development
Susan S. Lower, Director of Real Estate Valuation
Robert B. Ledger, Manager, Economic Development
Cassandra L. Turner, Economic Development Specialist
MATTAPONI DRIVE, N.W.
50' WIDE
\ .
(<'
\~~_.
\~U\ .
~"%
-' ~.
\~-y
'<:p~ .
\'O'>~.
'-g,~ .
\'. PROPERTY OF
'0 KENNETH L &: ROSEANNA c;: SAUNDERS
\ . TAX I 6431412 */
. . INST. # 0400057J4 )j(
lOT6B.; 1""933 SQUARE FEET /
FROM PARCEL B2- 10,525 SQUARE FEET /
LOT 68-1- 25,458 SQUARE FEET
, .,( /
\ / cto ~",'\ 0/
\ ~ / ~.#
\ / .,~
\ \ ~"
~~
\ @ r:,~
/ 112" PIN
/ ~ro'\ @FOUND
~"'.
/ @~
/
/ &t~ ~")\
/ S<v~ 'Xc" '/
PROPERTY OF I ;-I. /
THE CITY OF ROANOKE. VIRGINIA ~ ~.
TAX # 6472J02 / .p~'X <9/'
INST. I 0500185J8 / S'f :\ \.:
PARCEL B2A - ff5.9875ACRES / ,~(:l/'
TOlOT6B-D.24f6ACRE ~
PARCEL B2A1-115.7459ACRES <v~ /
SEEPAGE 2 FOR ENnRE PARCEL
\ .--'-"
2-..
,.... '"
'"
\ ~~
.- "" '
-.:)'"0 '?0' ,....~.
~'...",:,,~ \ ~ .
('"') Ji"'" -. ("'l\..:)
.- -".'-"
'? 0'> 'e> \ ~~
~~ c:... '0\...0\_
...,,0 -y .
.,:)~ \
-'0
C> -<\
.- -<\ ~
~~~
'\~
~
~
~
~~
~
L.OT6A
PROPERTYOF
SHADRACK BROWN, JR. &
SHIRLEY G. BROWN
TAX#6431406
/NST. # 030020720
"'""'-
'--.
a PIN WITH
\!.; CAP FOUND
C3
"' l>.1'"
:\
~V 'Xc,.
/ '0 ~,
/ vCJ (Q
. /'X'0(Q ~"/
/'\.:i'/ /
/ <v.f/ /
~
/0
PIN FOUND
/ IN CONCRETE
6' TELEPHONE & ElEe TRIC
EASEMENT (P.8. 6, PG. 93)
CITY COUNCil AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Request a Public Hearing to Sell a City-Owned Vacant Property
Also Known as Tax Map No. 4111601 to Virginia Department of
Transportation (VDOT) for a Street Improvement Project
Background:
The Virginia Department of Transportation (VDOT), is in the process of acquiring
rights of way for the construction, maintenance and/or operation of a public.
transportation facility, specifically, the 13th Street/Hollins Road Improvement
Project, State Highways Project UOOO-128-113, RW - 202. The final project plans
show that the above mentioned vacant City-owned property is needed for this
project.
VDOT seeks to acquire the property to use for the construction, maintenance
and/or operation of the referenced public transportation facility including any
components thereof such as, but not limited to, storm water management systems,
drainage systems, traffic control equipment, curbs, gutters, sidewalks and bike
trails. Where it is necessary to the construction, maintenance and/or operation of
the referenced transportation facility, the property may be used for the relocation,
installation, improvement or maintenance of a utility service provided by a public
utility provider, or for the relocation, installation, improvement or maintenance of
railroad facilities.
VDOT had the property appraised on June 14, 2011, and has concluded the market
value of the property is $6,275. This value is reasonable given the City's
assessment of the property.
Recommended Action:
'Authorize the scheduling of a public hearing to consider the sale of the
aforementioned property, on January 17, 2012, at 7:00pm.
ristopher P. Morrill
City Manager
Distribution: Council Appointed Officers
R. Brian Townsend, Assistant City Manager for Community Development
Bob Bengtson, Director of Public Works
Mark'Jamison, Manager of Transportation
Robert Ledger, Manager, Economic Development
Cassandra Turner, Economic Development Specialist
Oath or Affirmation of Office
Commonwealth of Virginia, City of Roanoke, to-wit:
I, Timothy R. Spencer, do solemnly swear 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 Acting City Attorney of the City of Roanoke, effective January 1, 2012, until such
time as a successor Acting City Attorney or City Attorney is elected or appointed by City
Council, according to the best of my ability. So help me God.
~~
TIM;<<HY . SPENCER
The foregoing oath of office was taken, sworn to, and subscribed before me by
Timothy R. Spencer thisj:?IllD day of 2011.
Brenda S. Hamilton, Clerk of the Circuit Court
, Clerk
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. CRAFT
Deputy City Clerk
CECELIA T. WEBB
Assistant Deputy City Clerk
STEPHANIE M. MOON, MMC
City Clerk
January 4,2012
Rebecca J. Cockram, Secretary
Board of Zoning Appeals
Roanoke, Virginia
Dear Ms. Cokcram:
This is to advise you that Robert H. Logan has qualified as a member of the Board of
Zoning Appeals to replace Joseph F. Miller for a term of office commencing January 1,
2012 and ending December 31,2014.
Sincerely,
nathan E. Craft
Deputy City Clerk
~<,
Oath or Affirmation of Office
Commonwealth of Virginia, City of Roanoke, to-wit:
I, Robert H. Logan, do solemnly swear 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 Board of Zoning Appeals to replace Joseph F. Miller for a term
of office commencing January 1,2012 and ending December 31,2014, according to the
best of my ability. So help me God.
fIA~
ROBERT H. LOGAN
The foregoing oath of office was taken, sworn to, and subscribed before me by
Robert H. Logan this (cr~ay of Dpe- 2011.
e Circuit Court
.
\
"
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: clerk@roanokeva.gov
JONATHAN E. CRAFT
Deputy City Clerk
STEPHANIE M. MOON, MMC
City Clerk
CECELIA T. WEBB
Assistant Deputy City Clerk
January 4, 2012.
Angela S. Penn
Vice President of Real Estate Development
Total Action Against Poverty (TAP)
P.O. Box 2868
Roanoke, Virginia 24001
Dear Ms. Penn:
I am enclosing a copy of Resolution No. 39285-010312 expressing the support
of the Council of the City of Roanoke for Total Action Against Poverty ("TAP")
and its partnership with the Virginia Department of Housing and Community
Development ("VDHCD").
The abovereferenced measure was adopted by the Council of the City of
Roanoke at a regular meeting held on Tuesday, January 3, 2012.
"
"
J
Enclosure
t/({ \ \'
'-Y \","'- ~ .;- .
\1/\, -\,':l ~
\\'
IN THE COUNCIL FOR THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012.
No. 39285-010312.
A RESOLUTION expressing the support of the Council of the City of Roanoke for Total
Action Against Poverty ("TAP") and its partnership with the Virginia Department of Housing and
Community Development ("VDHCD").
WHEREAS, numerous families in the City of Roanoke have benefited from the VDHCD and
TAP partnership;
WHEREAS, extremely high utility costs, substandard housing, neighborhood blight, and
homelessness continue to affect many low-income neighborhoods in the City of Roanoke;
WHEREAS, through the VDHCD and TAP partnership, numerous elderly and low-income
families have received weatherization services, indoor plumbing services, homelessness prevention
services, and housing construction and rehabilitation services;
WHEREAS, these services have helped stabilize, rebuild, and strengthen neighborhoods and
prevent homelessness;
WHEREAS, without the support and funding ofthe VDHCD, TAP would not have been able
to provide weatherization services to 253 families, 105 of whom live in the City of Roanoke, during
the fiscal year July 1, 2010, to June 30, 2011; and
WHEREAS, each home weatherized will save the family an average of$45 to $75 per month
on the utility bills, and depending upon the size ofthe home, will reduce carbon emissions by up to
two and one-half (212) tons annually.
THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that:
1. The City of Roanoke hereby supports and endorses the work of TAP in the areas of
K:\Talevi\measures\city council measures\Res-honoring Va dpt ofhousg for resources to TAP.doc
1
weatherization services, indoor plumbing services, homelessness prevention services, and housing
construction and rehabilitation services.
2. The City of Roanoke appreciates the partnership between TAP and the VDHCD and
the benefits of that partnership to the citizens of the City of Roanoke.
ATTEST:
~.tlJ.~
City:Cletk.
- '-~
'::J
K:\Talevi\measures\city council measures\Res-honoring Va dpt ofhousg for resources to TAP.doc
2
CITY OF ROANOKE
CITY COUNCIL
215 Church Avenue, S.W
Noel C. Taylor Municipal Building, Suite 456
Roanoke, Virginia 24011-1536
Telephone: (540) 853-2541
Fax: (540) 853-1145
Council Members
William D. Bestpitch
Raphael E. "Ray" Ferris
Sherman P. Lea
Anita J. Price
Court G. Rosen
David B. Trinkle
DAVID A. BOWERS
Mayor
January 3,2012
The Honorable Members
of Roanoke City Council
Roanoke, Virginia
Dear Members of Council:
We jointly sponsor a request of Total Action Against Poverty, for the City's
support of TAP and its partnership with the Virginia Department of Housing and
Community Development, at the regular meeting of City Council to be held on
Tuesday, January 3, 2012, at 2:00 p.m.
Sincerely,
~
Court G. Rosen
Council Member
~ ;fi~
Sherman P. Lea
Council Member
Anita J. P 'ce
Council Member
CGR/SPUANJ:ctw
~tgRe
Families in Transition + Head Start + Housing & Community Development
TAP Financial Services + This Valley 'Works
December 22,2011
Stephanie M. Moon, MMC
City Clerk
City of Roanoke
215 Church Avenue S. W.
Noel C. Taylor Municipal Building
Suite 456 .
Roanoke, VA 24011-1536
Dear Ms. Moon:
Total Action Against Poverty (TAP) respectfully requests to be on the January 3,2012 City of
Roanoke Council Agenda.
The purpose of addressing Council is to request a resolution to honor and thank the Virginia
Department and Housing Community Development for the resources that they have provided in
support of housing and rehabilitation services. Without their support and funding TAP would
not have been able to provide weatherization services to 253 families during the fiscal year July
1,2010 to June 30,2011. 105 homes or 42% of the weatherization services were provided to
families within the City of Roanoke. Each home weatherized will save the family an average of
$45 to $75 a month on the utility bills. Further, each home weatherized, depending on size and
measures averages between 1 and 2 Yz tons of carbon reduction annually.
Theodore 1. Edlich, President/CEO, Rick Sheets, Director of Energy Conservation and Housing
Rehabilitation and I will be traveling to Richmond on January 10, 2012 to meet with Bill
Shelton, DHCD Director and other senior staff members to make a presentation on the impact of
support in the lives of families in the 5th planning district. At that time we will be presenting
resolutions from participating jurisdictions.
Thank you for your consideration. Please feel free to contact me at 283-4844.
Sincerely,
~fL-
Angela S. Penn
Vice President of Real Estate Development
P.O. Box 2868
Roanoke, VA 24001
(540) 345-6781
www.taproanoke.org
b.a.
Comments by Angela S. Penn, Vice President of Real Estate Development, Total
Action Against Poverty (TAP) on 1/3/2012.
GOOD AFTERNOON MAYOR BOWERS, MEMBERS OF COUNCIL AND
CITIZENS OF ROANOKE. THANK YOU FOR THIS OPPORTUNITY TO
SHARE WITH YOU ABOUT THE PARTNERSHIP BETWEEN TOTAL
ACTION AGAINGST POVERTY AND THE VIRGINA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT. THIS PARTNERSHIP HAS
EXSISTED FOR THE PAST FOUR DECADES. THE DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENMT HAS PROVIDED THE
RESOURCES FOR TAP TO PROVIDE WEATEHERIZATION SERVICES,
INDOOR PLUMBING AND HOUSING REHABILTAION SERVICES,
DOWNPAYMENT ASSISTANCE FOR HOMEBUYERS AND HOMELESS
PREVENTION SERVICES. THE PARTNERSHIP WITH DHCD HAS
RESULTED IN $2.8 MILLION DOLLARS THAT HAVE ALLOWED OUR
AGENCY TO SERVE FAMILIES IN THE 5TH PLANNING DISTRICT
DURNING FISCAL YEAR 2010-2011.
DURING THE PAST FISCAL YEAR, TAP HAS PROVIDED
WEATHERIZATION SERVICES TO 253 FAMILIES IN THE FIFTH
PLANNING DISTRICT, 105 OF THOSE FAMILIES RESIDE IN THE CITY OF
ROANOKE. EACH HOME WEATHERIZED SAVES A FAMILY AN
AVERAGE OF $45-$75 PER MONTH IN UTIILTY BILLS. THIS ALSO
PROVIDES A CARBON REDUCTION BETWEEN 1 AND 2 ~ TONS
ANNUALLY DEPENDING ON THE SIZE OF THE HOME.
IN ADDITION WE HAVE PARTNERED WITH THEM TO PROVIDE
HOMELESS PREVENTION SERVICES OVER A 20 YEAR PERIOD.
THROUGH THE USE OF AMERICAN RECOVERY AND REINVESTMENT
ACT (ARRA) FUNDS IN THE AMOUNT OF $716,657 OVER TWO YEARS,
WE HAVE ASSISTED 695 INDIVDUALS REMAIN IN HOUSING OR
ESTABLISH NEW RESIDENCES.
THROUGH THEIR SUPPORT FOR HOMEOWNERS HIP, DURING THE PAST
FISCAL YEAR, TAP HAS ASSISTED 17 NEW HOMEOWNERS, 12 OF
WHICH PURCHASED HOMES IN THE CITY OF ROANOKE WITH
DOWNPAYMENT ASSSISTANCE.
CURRENTLY, WE ARE WORKING WITH DHCD TO PROVIDE
REHABILATATION TO 19 HOMES IN THE PINEHURST HEIGHTS
COMMUNITY IN BATH COUNTY. FUNDING IN THE AMOUNT OF
$996,838 WILL ALLOW US TO RENOVATE 11 ONWER-COCCUPIED
HOMES, RENOVATE 4 INVESTOR OW3NED HOMES, SUST AINALL Y
RECONSTRUCT 4 OWNER-OCCUPIED HOMES AND PROVIDE NEEDED
SEWER AND STORM WATER IMPROVEMENTS.
ON JANUARY 10,2012, TED EDLICH PRESIDENT/CEO OF TAP, RICK
SHEETS, DIRECTOR OF ENERGY CONSERVATION AND HOUSING
REHABILITATION WILL BE TRAVELING TO MEET WITH BILLSHEL TON,
DIRECTOR OF DHCD AND SENIOR STAFF TO THANK THEM FOR THEIR
MANY YEARS OF PARTNERSHIP AND TO SHARE WITH THEM THE
IMPACT THAT THESE RESOURCES HAVE MADE IN THE LIVES OF
FAMILIES THROUGHOUT OUR SERVICE AREA. WE ARE PRIVELDGE
TO TAKE WITH US A RESOLUTION FROM THE CITY OF ROANOKE
THAT HONORS THAT PARTNERSHIP AND THE SERVICE PROVIDED TO
ITS CITIZENS.
o~(
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012.
No. 39286-010312.
A RESOLUTION. accepting the Western Virginia Workforce Development Board Workforce
Investment Act grant in the amount of$1,606,629 for Program Year 2011, and authorizing the City
Manager to execute the requisite documents necessary to accept the funding.
BE IT RESOLVED by the Council of the City of Roanoke as follows:
1. The Western Virginia Workforce Development Board Workforce Investment Act
grant in the amount of$1,606,629 for Program Year 2011, with no local match from the City, to be
used during the period ofJu1y 1, 2011, through June 30,2013, for the purpose of administering the
Workforce Investment Act (WIA) Programs for certain WIA client populations, as more particularly
set out in the City Manager's report dated January 3,2012, to City Council, is hereby ACCEPTED.
2. The City Manager is authorized to execute and file, on behalf of the City, any
documents required to accept such grant, in a form approved by the City Attorney.
3. The City Manager is further directed to furnish such additional information as may be
required in connection with the acceptance ofthe foregoing grant.
ATTEST:
I?tL rn.~OvV
City Clerk. - . i '_
~~
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012;
No. 39287-010312.
AN ORDINANCE to appropriate funding from the Commonwealth of Virginia for
the FY12 Workforce Investment Act Grant, amending and reordaining certain sections of
the 2011-2012 Grant Fund Appropriations, and dispensing with the second reading by title
of this ordinance.
BE IT ORDAINED by the Council of the City of Roanoke that the following
sections of the 2011-2012 Grant Fund Appropriations be, and the same are hereby,
amended and reordained to read and provide as follows:
Appropriations
Administrative - Regular Employee Wages
Administrative - Temporary Employee Wages
Administrative - City Retirement
Administrative - FICA
Administrative - Medical Insurance
Administrative - Dental Insurance
Administrative - Life Insurance
Administrative - Disability Insurance
Administrative - Professional Services
Administrative - Dues and Memberships
Administrative - Training and Development
Administrative - Local Mileage
Administrative - Food
Administrative - Business M.eals and Travel
Administrative - Equipment Rental
Administrative - Other Rental
Administrative - Marketing
Administrative - Supplies
Administrative - Insurance
Administrative - Contract Services
Administrative - Leases
Administrative - Equipment
Administrative - Miscellaneous
Administrative - Telephone
Adult - Regular Employee Wages
Adult - Temporary Employee Wages
Adult - City Retirement
Adult - FICA
35-633-2380-1002
35-633-2380-1004
35-633-2380-1105
35-633-2380-1120
35-633-2380-1125
35-633-2380-1126
35-633-2380-1130
35-633-2380-1131
35-633-2380-2010
35-633-2380-2042
35-633-2380-2044
35-633-2380-2046
35-633-2380-2060
35-633-2380-2144
35-633-2380-3070
35-633-2380-3075
35-633-2380-8053
35-633-2380-8055
35-633-2380-8056
35-633-2380-8057
35-633-2380-8058
35-633-2380-8059
35-633-2380-8060
35-633-2380-8090
35-633-2381-1002
35-633-2381-1004
35-633-2381-1105
35-633-2381-1120
$ 54,402
24,012
9,816
5,998
4,168
257
152
182
15,000
2,200
1,650
1,000
1,238
5,187
1,238
577
4,124
4,125
2,500
8,071
10,203
1,650
413
2,500
4,464
639
805
391
Adult - Medical Insurance
Adult - Dental Insurance
Adult - Life Insurance
Adult - Disability Insurance
Adult - Training and Development
Adult - Local Mileage
Adult - Food
Adult - Business Meals and Travel
Adult - Equipment Rental
Adult - Other Rental
Adult - Marketing
Adult - Supplies
Adult - Contract Services
Adult - Leases
Adult - Equipment
Adult - Miscellaneous
Adult - Telephone
Dislocated Worker - Regular Employee Wages
Dislocated Worker - Temporary Employee Wages
Dislocated Worker - City Retirement
Dislocated Worker - FICA
Dislocated Worker - Medical Insurance
Dislocated Worker - Dental Insurance
Dislocated Worker - Life Insurance
Dislocated Worker - Disability Insurance
Dislocated Worker - Training and Development
Dislocated Worker - Local Mileage
Dislocated Worker - Food
Dislocated Worker - Business Meals and Travel
Dislocated Worker - Equipment Rental
Dislocated Worker - Other Rental
Dislocated Worker - Marketing
Dislocated Worker - Supplies
Dislocated Worker - Contract Services
Dislocated Worker - Leases
Dislocated Worker - Equipment
Dislocated Worker - Miscellaneous
Dislocated Worker - Telephone
Youth in School - Regular Employee Wages
Youth in School- Temporary Employee Wages
Youth in School- City Retirement
Youth in School - FICA
Youth in School- Medical Insurance
Youth in School- Dental Insurance
Youth in School- Life Insurance
Youth in School - Disability Insurance
Youth in School- Training & Development
35-633-2381-1125
35-633-2381-1126
35-633-2381-1130
35-633-2381-1131
35-633-2381-2044
35-633-2381-2046
35-633-2381-2060
35-633-2381-2144
35-633-2381-3070
35-633-2381-3075
35-633-2381-8053
35-633-2381-8055
35-633-2381-8057
35-633-2381-8058
35-633-2381-8059
35-633-2381-8060
35-633-2381-8090
35-633-2382-1002
35-633-2382-1004
35-633-2382-1105
35-633-2382-1120
35-633-2382-1125
35-633-2382-1126
35-633-2382-1130
35-633-2382"' 1131
35-633-2382-2044
35-633-2382-2046
35-633-2382-2060
35-633-2382-2144
35-633-2382-3070
35-633-2382-3075
35-633-2382-8053
35-633-2382-8055
35-633-2382-8057
35-633-2382-8058
35-633-2382-8059
35-633-2382-8060
35-633-2382-8090
35-633-2383-1002
35-633-2383-1004
35-633-2383-1105
35-633-2383-1120
35-633-2383-1125
35-633-2383-1126
35-633-2383-1130
35-633-2383-1131
35-633-2383-2044
$ 315
20
13
15
78
91
58
200
58
27
194
194
417,952
480
78
19
118
9,867
1,597
1,780
877
680
42
28
33
180
100
135
575
135
63
450
450
553,970
1,113
180
45
273
3,532
639
637
320
252
16
10
12
65
Youth in School- Local Mileage
Youth in School- Food
Youth in School- Business Meals and Travel
Youth in School - Equipment Rental
Youth in School - Other Rental
Youth in School- Marketing
Youth in School - Supplies
Youth in School - Contractual Services
Youth in School - Leases
Youth in School - Equipment
Youth in School- Miscellaneous
Youth in School- Telephone
Youth out of School- Regular Employee Wages
Youth out of School- Temporary Employee Wages
Youth out of School- City Retirement
Youth out of School- FICA
Youth out of School- Medical Insurance
Youth out of School- Dental Insurance
Youth out of School - Life Insurance
Youth out of School - Disability Insurance
Youth out of School- Training & Development
Youth out of School- Local Mileage
Youth out of School- Food
Youth out of School- Business Meals and Travel
Youth out of School - Equipment Rental
Youth out of School - Other Rental
Youth out of School- Marketing
Youth out of School - Supplies
Youth out of School - Contractual Services
Youth out of School - Leases
Youth out of School- Equipment
Youth out of School - Miscellaneous
Youth out of School- Telephone
Revenues
Workforce Investment Act Grant FY12
35-633~2383-2046
35-633-2383-2060
35-633-2383-2144
35-633-2383-3070
35-633-2383-3075
35-633-2383-8053
35-633-2383-8055
35-633-2383-8057
35-633-2383-8058
35-633-2383-8059
35-633-2383-8060
35-633-2383-8090
35-633-2384-1002
35-633-2384-1004
35-633-2384-1105
35-633-2384-1120
35-633-2384-1125
35-633-2384-1126
35-633-2384-1130
35-633-2384-1131
35-633-2384-2044
35-633-2384-2046
35-633-2384-2060
35-633-2384-2144
35-633-2384-3070
35-633-2384-3075
35-633-2384-8053
35-633-2384-8055
35-633-2384-8057
35-633-2384-8058
35-633-2384-8059
35-633-2384-8060
35-633-2384-8090
35-633-2380-2380
$ 50
49
194
49
23
163
163
306,273
402
65
16
99
1 ,483
319
267
138
113
7
4
5
28
30
21
74
21
10
69
69
131,249
171
28
7
42
1,606,629
Pursuant to the provisions of Section 12 of the City Charter, the second reading
of this ordinance by title is hereby dispensed with.
ATTEST:
~ rn:.?1Ml
City Clerk. ...
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Su bject:
Honorable Mayor and Members of City Council
January 3, 2012
Funding for Western Virginia Workforce Development Board
Workforce Investment Act (WIA) Programs
Backg rou nd:
The City of Roanoke is the grant recipient of Workforce Investment Act (WIA)
funding, thus, City Council must appropriate the funding for all grants and
other monies received in order for the Western Virginia Workforce Development
Board to administer WIA programs. The Western Virginia Workforce
Development Board administers the federally funded Workforce Investment Act
(WIA) for Area 3, which encompasses the counties of Alleghany, Botetourt,
Craig, Franklin, and Roanoke, and the cities of Covington, Roanoke, and Salem.
WIA funding is for four primary client populations:
. Dislocated workers who have been laid off from employment through no
fault of their own. Services provided these individuals include intensive
job search assistance and employment counseling, additional training to
upgrade skills or obtain initial certification or degree, on the job training
and supportive services.
· Economically disadvantaged individuals as determined by household
income guidelines defined by the U.S. Department of Labor. Services
provided these individuals include intensive job search assistance and
employment counseling, additional training to upgrade skills or obtain
initial certification or degree, on the job training, and supportive services.
· Youth who are economically disadvantaged, or who have other barriers to
becoming successfully employed adults. Services provided these
individuals include career counseling and exploration, incentives to
remain in school, work readiness classes, summer work program,
mentoring, tutoring and post secondary education/training.
· Businesses in need of employment and job training services.
The Western Virginia Workforce Development Board has received a Notice of
Obligation (NOO), from the Virginia Community College System, allocating
$1,606,629 (to programs as follows: Adult $473,566, Youth $496,871,
Dislocated Worker $636,192) for Program Year 2011 Uuly 1, 2011 - June 30,
2013). Ten percent of funds are to be allocated to the administrative function
of the board.
Considerations:
. Program Operations - Existing activities will continue and planned
programs will be implemented.
. Funding - Funds are available from the Grantor agency and other sources
as indicated, at no additional cost to the City.
Recommended Action:
Authorize the City Manager to execute the necessary documents to accept the
Western Virginia Workforce Development Board Workforce Investment Act grant
for Program Year 2011, subject to approval .as to form by the City Attorney.
Adopt the attached budget ordinance to establish a revenue estimate, and
appropriate funding in the amount of $1,606,629, in accounts to be
established.
Attached to this letter is a listing of the accounts and amounts for the above
Program Year 2011 appropriations.
Christopher P. Morrill
City Manager
Distribution: Council Appointed Officers
R. Brian Townsend, Assistant City Manager for Community Development
Jane R. Conlin, Director of Human/Social Services
2
Western Virginia Workforce Development Board 2011-2013 Budget Allocation
Unit
Name
Adm ininstrative
Fund/Department/
Unit
35-633-2380
Total
Unit
Name
Fund/Department/
Unit
35-633-2381
Adutt
Total
Object Account
Code Name
1002 Regular Employee Salaries
1004 Temporary Employee Wages
1120 Fica
1105 City Retirement
1125 Medical Insurance
1130 Life Insurance
1131 Disability Insurance
1126 Dental Insurance
2010 Fees For Professional Service
8053 Marketing
8055 Supplies
8090 Telephone
8058 Leases
8059 Equipment
2144 Business Meals & Travel
2044 Training & Development
2046 Local Mileage
2060 Food
8056 Insurance
8057 Contract Services
8060 Miscellaneous
3070 Equipment RentaVLease
3075 Other Rental
2042 Dues & Memberships
Object Account
Code Name
1002 Regular Employee Salaries
1004 Temporary Employee Wages
1120 Fica
1105 City Retirement
1125 Medical Insurance
1130 Life Insurance
1131 Disability Insurance
1126 Dental Insurance
8053 Marketing
8055 Supplies
8090 Telephone
8058 Leases
8059 Equipment
2144 Business Meals & Travel
2044 Training & Development
2046 Local Mileage
2060 Food
8057 Contract Services
8060 Miscellaneous
3070 Equipment RentaVLease
3075 Other Rental
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Allocation
54,402
24,012
5,998
9,816
4,168
152
182
257
15,000
4,124
4,125
2,500
10,203
1,650
5,187
1,650
1,000
1,238
2,500
8,071
413
1,238
577
2,200
160,663
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Allocation
4,464
639
391
805
315
13
15
20
194
194
118
480
78
200
78
91
58
417,952
19
58
27
426,209
Unit
Name
Dislocated Worker
Total
Fund/Department/
Unit
35-633-2382
Object Account
Code Name
1002 Regular Employee Salaries
1004 Temporary Employee Wages
1120 Fica
1105 City Retirement
1125 Medical Insurance
1130 Life Insurance
1131 Disability Insurance
1126 Dental Insurance
8053 Marketing
8055 Supplies
8090 Telephone
8058 Leases
8059 Equipment
2144 Business Meals & Travel
2044 Training & Development
2046 Local Mileage
2060 Food
8057 Contract Services
8060 Miscellaneous
3070 Equipment RentaVLease
3075 Other Rental
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Allocation
9,867
1,597
877
1,780
680
28
33
42
450
450
273
1,113
180
575
180
100
135
553,970
45
135
63
572,573
Unit
Name
Younger Youth
Total
Unit
Name
Older Youth
Total
Total Units
Fund/Department/
Unit
35-633-2383
Fund/Department!
Unit
35-633-2384
Object Account
Code Name
1002 Regular Employee Salaries
1004 Temporary Employee Wages
1120 Fica
1105 City Retirement
1125 Medical Insurance
1130 Life Insurance
1131 Disability Insurance
1126 Dental Insurance
8053 Marketing
8055 Supplies
8090 Telephone
8058 Leases
8059 Equipment
2144 Business Meals & Travel
2044 Training & Development
2046 Local Mileage
2060 Food
8057 Contract Services
8060 Miscellaneous
3070 Equipment Rental/Lease
3075 Other Rental
Object Account
Code Name
1002 Regular Employee Salaries
1004 Temporary Employee Wages
1120 Fica
1105 City Retirement
1125 Medical Insurance
1130 Life Insurance
1131 Disability Insurance
1126 Dental Insurance
8053 Marketing
8055 Supplies
8090 Telephone
8058 Leases
8059 Equipment
2144 Business Meals & Travel
2044 Training & Development
2046 Local Mileage
2060 Food
8057 Contract Services
8060 Miscellaneous
3070 Equipment Rental/Lease
307~ Other Rental
I
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Allocation
3,532
639
320
637
252
10
12
16
163
163
99
402
65
194
65
50
49
306,273
16
49
23
313,029
Allocation
1 ,483
319
138
267
113
4
5
7
69
69
42
171
28
74
28
30
21
131,249
7
21
10
134,155
$
1,606,629
~~
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012.
No. 39288-010312.
AN ORDINANCE to appropriate additional local match funding for the Lead
Hazard Control Grant, amending and reordaining certain sections of the 2011-2012 Grant
Fund Appropriations, and dispensing with the second reading by title of this ordinance.
BE IT ORDAINED by the Council of the City of Roanoke that the following
sections of the 2011-2012 Grant Fund Appropriations be, and the same are hereby,
amended and reordained to read and provide as follows:
Appropriations
LHC Single Family Units
. LHC Rental Units
Revenues
Lead Hazard Control Grant FY09 - Local
35-615-8151-8256
35-615-8151-8257
$ 10,000
20,000
35-615-8151-8152
30,000
Pursuant to the provisions of Section 12 of the City Charter, the second reading
of this ordinance by title is hereby dispensed with.
ATTEST:
~c~'rrr~
/
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Match to HUD Office of Healthy Homes and Lead Hazard Control's
FY2008 ARRA Lead-based Paint Hazard Control Grant
Background:
In October, 2003, HUD awarded the City of Roanoke (City) a 36-month, $1.5
million dollar grant to prevent lead poisoning in children under the age of 6 by
testing them for lead poisoning; educating the community on the hazards
associated with lead-based paint; and identifying, assessing, and performing
lead hazard control activities in eligible privately-owned rental and owner-
occupied housing units within targeted areas of the City. During the grant
period, a total of $486,405 was provided in the form of in-kind, local and
federal matching funds. Partnerships were immediately formed among various
City departments, the Roanoke City Health Department (RCHD), and nonprofit
organizations to create the Lead-Safe Roanoke program. Two hundred forty-
nine (249) property owners requested information to participate in the initial
program. Financial assistance in the form of interim lead-hazard control
activities was provided to 104 out of 146 eligible owner-occupied and/or rental
properties, providing lead safe housing for families with children under the age
of 6 years. The program ended successfully in December, 2008.
On February 25, 2009, the Department of Housing and Urban Development
awarded $1,406,633 (as part of the funds provided by the American Recovery
and Reinvestment Act of 2009) to continue building upon the accomplishments
of the initial Lead-Safe Roanoke program. This program is scheduled to
conclude in April, 2012 and required that the City of Roanoke provide a
minimum local match of 10% in the form of cash and in-kind services. Financial
assistance in the form of interim lead-hazard control activities has been
provided to 74 eligible owner-occupied and/or rental properties, providing lead
safe housing for families with children under the age of 6 years. The current
program's goal is 75. Overall, 120 applications have been received to
participate in the LSR II Program.
Considerations:
The required City match of $181 ,589 for this 36-month program was to be met
from various sources. City funds in the amount of $100,000 were to be
provided, of which $90,832 or 90.832% has been expended to date. These
funds are presently being provided from the Local Match Funding for Grant
account (35-300-9700-541 5). Sources of the in-kind services match include: in-
kind City staff time match valued at $64,049 of which $45,507 or 71% has been
contributed to date; in-kind storage match valued at $5,040 to be provided by
W.E.L., Inc. to allow for the storage of Lead-Safe Roanoke /I-related cleaning
supplies used in cleaning kits provided to program participants, of which
$4,200 or 83% has been expended to date; and in-kind match valued at
$12,500 to be provided by the Roanoke City Health Department to send a team
comprised of a public health nurse and environmental health specialist to the
home to perform an initial assessment of the premises. None of the Health
Department in-kind match has been expended to date as the Department was
unable to participate in the program shortly aher the grant was awarded,
leaving the City with an immediate $12,500 shortfall in required match effort.
In addition, a match shortfall of $17,500 of in-kind City staff time is anticipated
as staff has not been required to provide assistance with the administration of
the program as originally estimated when the application was submitted in
June, 2008. In order to successfully complete the program, these shortfalls in
in-kind services have to be replaced with another source of financial local
match, which is recommended to be an additional appropriation of funds from
the City's Local Match Funding for Grant account.
Recommended Action:
Adopt the accompanying budget ordinance to increase the revenue estimate
and appropriate funding in the amount of $30,000 to the Lead Safe Roanoke
program in the Grant Fund in accounts as established by the Director of
Finance. The increase in the revenue estimate will be fulfilled by the transfer of
$30,000 from the Local Match Funding for Grants account.
Christopher P. Morrill
City Manager
Distribution: Council Appointed Officers
Brian Townsend, Assistant City Manager for Community Development
Tom Carr, Director, Planning Building and Development
2
~~
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012.
No. 39289-010312.
AN ORDINANCE to appropriate funding from the Parking Fund Retained
Earnings for maintenance projects at various Park Roanoke facilities, amending and
reordaining certain sections of the 2011-2012 Parking Fund Appropriations, and
dispensing with the second reading by title of this ordinance.
BE IT ORDAINED by the Council of the City of Roanoke that the following
sections of the 2011-2012 Parking Fund Appropriations be, and the same are hereby,
amended and reordained to read and provide as follows:
Fund Balance
Retained Earnings - Available
Appropriations
Maintenance-Buildings - Market Garage
Maintenance-Buildings -'- Elmwood Park Garage
Maintenance-Buildings - Campbell Garage
Maintenance-Buildings - Center in the Sq Garage
Vehicular Equipment - Center in the Sq Garage
Maintenance-Buildings - Church Av~nue Garage
Maintenance-Buildings - Tower Garage
Maintenance-Buildings - Gainsboro Garage
Maintenance-Buildings - Tower Garage
07-3348
07 -540-8200-2050
07 -540-8205-2050
07 -540-8213-2050
07 -540-8215-2050
07 -510-8215-9010
07 -540-8220-2050
07 -540-8225-2050
07 -540-8235-2050
07 -540-827 4-2050
$ (617,000)
13,330
14,000
10,4 75
13,590
17,500
108,243
20,000
108,948
310,914
Pursuant to the provisions of Section 12 of the City Charter, the second reading
of this ordinance by title is hereby dispensed with.
ATTEST:
Q:-r- , 0 _ - -.-.'
~~ hi. rrc
City c';rk. ..
~ '.
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Appropriation of Retained Earnings for Parking Fund Projects
Background:
The Parking Fund operates and maintains the City's off-street parking facilities
consisting of seven garages and five surface lots and also administers on-street
parking enforcement primarily in the downtown area. As part of the FY12
budget development process, management identified certain capital
maintenance projects and repairs which should be undertaken during FY2012.
The projects identified for this fiscal year are detailed in Attachment A to this
report.
Considerations:
In order to provide funding for these various projects, an appropriation from
the Parking Fund's Retained Earnings should be made in the amount of
$617,000. This amount is available in the Fund's Working Capital (a component
of Retained Earnings) for this purpose. The projects to be funded range from
lighting improvements, elevator repairs, life safety system upgrades, scrubbing
equipment and roof repairs.
Recommended Action:
Adopt the accompanying budget ordinance to appropriate funds in the amount
of $61 7,000 from Parking Fund Retained Earnings to accounts as established by
the Director of Finance and identified in Attachment A to this report.
~~-M;r~ill------
City Manager
Distribution: Council Appointed Officers
Debbie Moses, Parking Administrator
Attachment A
CM11-00037
-- Project Type Description Amount
-
Capital Swee'per- all $17,500
Equipment locations
Capital Equipment! Fire Panel 43,730
Life Safety replacement-
Church Ave
Garage
Capital Gainsboro 42,618
Maintenance/Repairs Garage elevators
reconditioning
and repair
Gainsboro 54,000
'Garage-twin
elevator towers-
roof repairs
Life /Safety Fire Campbell 49,213
System Compliance Gainsboro
and Testing Market
Center in the
Square
Elmwood
Church Avenue
Tower
Electrical Lighting, Campbell 99,025
Repairs, Elmwood
Replacements Market
Center in the
Square
Church Avenue
Gainsboro
Tower
Sprinkler System Tower Garage 310,914
Replacement
TOTAL $617,000
CM11-00037 Attachment A
'--
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
2012-2013 Real Estate Assessment Projections
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 2012-
2013. Change of Assessment notices are scheduled to be mailed to property owners
january 3, 2012.
The taxable real estate tax base decreased approximately 1.19% due to this year's annual
reassessment. The general reassessment change in value was a net decrease of 1.60% but
the new construction estimates added 0.41 %. Comparatively, Roanoke County
assessments decreased approximately 0.93% this year; however, in the City of Salem,
values increased by 0.25%.
New construction in Roanoke is expected to total $28.4 million, which represents a 0.41 %
increase to the tax base for fiscal year 2012 - 2013. Taxable residential new
construction totals $8.2 million and taxable commercial new construction totals $20.2
million. Last year's projections for new construction were $10.5 million for residential
and $17.3 million for commercial, for a total of $27.8 million.
The 2012-2013 fiscal year marks the first time in Roanoke's history that a majority
decrease in residential assessments has occurred. Residential assessments decreased
2.7% in the aggregate. Commercial property increased slightly (.7%), with a few
exceptions to include reductions in industrial land. The reassessment activity is driven by
the same factors affecting the rest of the country: the slow economy, unemployment,
foreclosures, the low volume of valid market sales data (including residential properties),
office, retail space, and continued weakness in new construction.
Assessment appeals to Real Estate Valuation will be conducted from january 3 through
january 31, 2012. Real Estate staff would be most happy to respond to inquiries you may
receive from our citizens regarding the reassessment. We expect the Board of
Equalization to begin hearings in March of 2012. The proposed FY 2012 - 2013 values
will be adjusted for appeals, tax freezes, tax abatements and other miscellaneous items.
Please contact me or Susan Lower (853-1812) with any questions you may have.
Respectfully submitted,
.~
Ann H. Shawver
Director of Finance
Mayor and Members of City Council
January 3,2012
Page 2
Distribution: Honorable Sherman A. Holland, Commissioner of the Revenue
Honorable Evelyn W. Powers, Treasurer
Christopher P. Morrill, City Manager
Timothy R. Spencer, Acting City Attorney
Stephanie M. Moon, City Clerk
Amelia C. Merchant, Director of Management and Budget
Susan S. Lower, Director of Real Estate Valuation
.,. .Y
Roanoke City Council
201i2 -,2013
(3relfJeral R;eJCJ/sseJssme1nt
January 3, 2012
i;.
~::$k.
"l"''w-
"-
'" <. \-t'lf~~~
.' . J.!,~~
. !I~.~J
'O, :~~',.
r", C",,"I>fOUr.l. ,
~
-'"
.
.1
{t'
r'1"iev" ,,<e'
7.b.1.
,J,
..._..:....\f
~t~;"~;r
~
State Law
II The Code of Virginia requires that all real property be
assessed for taxation at 1000/0 of market value. Our
City Code requires that all property be assessed on
an annual- basis (every year). We notify property
owners each January of any changes in the assessed
values which will become effective July 1.
ill Only property owners that received a change in
assessment were mailed a notice. This year's
notices were mailed on January 3rd.
2
'~~
(;^~f
Real Estate Assessment Projections
~:;1~,-i;%"t[d~5t:.0\u.c::"~~Jf[]i:~'"-"'~wi=;c-~if;i:r;:z:=~~;J1?zrJ":1=?-.;.:;;;.....2 0 1.3
o Reassessments will decrease existing
properties -1.60%
FY 2011 ... 2012 =O.230~
Fiscal year 2011 - 2012 based on Finance letter dated February 25,2011
3
Sales Ratio .
ilif,~_:L~;'x . .~~.~, . : ; ~=i~:L~z::"i~~.: ,~~2~,;-'77~n;~~-:~~Z~3~:~r"~::1~:i(~.~~ ~,~":1~.,. ~
E] The ratio of an appraised value or assessed
value to the sale price of a property.
For Example:
[] Assessed Value
[) Sale Price
= $180,000 .
= $200,000
[]I Sales Ratio
= $180,000 = 90o~
$200,000
Source: International Association of Assessing Officers Property Appraisal and Assessing Handbook
4
>v,QQ,~~SJtlfl$~J:!flliQ, Study
f~,__Jt";,;~"~""""""~~__-^-"""-"~..,~;:1_,~",",,,",,,,,-,--;..1;;.:.~'..............~{.~,,....;.q;,,..,,......,.;.;__M.,"'-..:.c:-'.....;l.,"'"'.;/-,.<._..'",.;;;.-_'".~,;c.",~ _""""~'~-i-;,,..:",<-'_..~-__" _.._~ .,,,...'....',;.c'; ,
tf':: ~yc .'",:, :: i~ ;';. 2'~5 :-"""i i;~j,'J {, ,~iS1I~ "',~ ,,, . ",";;"", ~,~,'~;~ ,;'l~ ':,i;lt.~, ; , ", 'fi'
, ,;/
'<,;:. ' .....:;~ >X;-i,}' r,.,' ~;:~! '" u ;:""'. e; ~;; t;;::".">', '. :;.~ 4', r\. , [W ~t:; ..~ '." it.';'"
.":: i<:,..:r"i,,::,.:'
Roanoke 45,912 92%
Roanoke County 45,222 92%
Charlottesville 14,794 103%
Fairfax City 8,653 100%
Hampton 50,378 100%
Lynchburg 31,599 88% (Biennial)
Newport News 53,287 99%
N orfo lk 73,475 95%
Portsmouth 35,030 93%
Richmond 73,012 98%
Salem 10,443 89%
Virginia Beach 151,539 100%
Source: 2009 Sales Ratio Study dated July 2011 Department of Taxation
Parcel Count from 2011 VAAO Salary Survey and includes taxable, exempt, and public service.
5
105
100
95
90
85
80
75
Sales Ratio Bar Graph
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
I ~ Preliminary Ratio fIj Posted Ratio I
Department of Taxation for Roanoke City 6
r-:,;:~: -)-:
r/l';
r ,'"
t, "!>'<~, ,'~4J.:l'
t" '-':"~;~~:~:~~:~'.;:
'~I~~~I~~~ERTIES
~"~~', :,."' . "~~.-;" .;j.:~~ ":~;",~~~,~.-~~^ " ~<"
',} .' , ,; !f~,~tf,~-: -"-:0';;)< \'"
"." ,,~':'~~::
; .1~"-~~;:"...:.. '"":',,,~, ,1;;'~..''L:'1::~;)'';~'l;~&:':::~' _._~"_k.L~~.~~~"-"-,.h,.:.:::;~~~_~""-.""_..~;.:~____"_ .. ..._ '.,~_ ~_ __ _-"'.
7
~gl~eli9-f!~~:gt Hf~~using
i ' . "," r ;';{ ...,' ': :,> ,~,:},.,~,..';j'h";:, ""k{~;~Jf; .;-, .; :;Jf{
, ":~r f ", -';' ~,"(~}'."' <' -';- ,"
;'\,
~ . '. .... . ..: ,', -'."
:'~';2(f11;u '
''j,,\'. ;2'''':''O'-t:;O'' '
, ~(~",;~ ,C,' .~,;\,: "
.~e;Ji~t.;~~f!J~~k
Number of Sales
381
252
$133,300
$184,189
538
319
$133,000
$153,505
-29%
Number of Foreclosures
-27%
Median Sales Price
No change
+20%
Average Sales Price
Represents activity from January 1 to October 1 of each year
Other than foreclosures, data includes only valid sales
Source: Proval database
8
/2011 Sales and ForeClosuresl
N
A
2011 Sales and Foreclosures
. Foreclooures_2011
o Sales_2011
Source: Proval residential database
9
2012 Residential
Reassessment Changes
~~
.....,~
ROANOI<E
Real Estate
Source: Proval residential database
N
A
Created: '13 DEC 201'1
10
r~T:~
~~~"
f"" ',"'"
I.~
-'-"'~-' - ", ,', .
L' ',j;j,;,',
-~'-fki~ ~;,._
-->kqJ~;"'~~.~:I~i~f ':b~[3~~c
~~"~ 'I:Vi:II;~V"1 C~>~\ZI ~~~ '-r~;:>rx\J;,J P:, I::
;.;;A j,,'t~ ' ;:,~,'~';i:'';;c",:::,''., 'd: '"<,," > '" ,.;,' ';,;",:p ';"p: '''", "j
~"? ""'':''i>'~'"4'i: ,,;,)'/!; J'O'~ "~~'~' ,. '"," "'.',;;,. "."'i'",., ~.<;)'\,.(.' :,);'
, '< .,' , ~~:c~,L_:i;~~.-.ti', :')\:-~:~ ~~. ~~_:~;:,~~~,.f';~~~>; ','''.' ~~,~,:-";,,,:~:,"'-~_~l,~~,>-"~ji;;~~;> ,':,:' "~~'~~~::"...~_,,"_:,.::r:~_;:_::: ,.._ _ ,.~
RTIES
11
~-?<cQ1JJ;QmlJJ~(cJal~ales Summary
L~~_~,~_~.J.~:..L:..~::t;t,,,,,--,_""":'~'..::..,....:..........':"b:..~...:,--~.':-..,-L-.:::"':'~.>-:;:,,":""~"~_ :;.,........R... _:___:i~_'..~~ ,.".. _,;.":,,.~.. "" .f, ,~
.,.YI;AR
yti;::):' .;;,:,;>
:~t,' ,~~( -,',:; i!"::;~''"' ,\',~<..
~,l ' . . ' ..
'Ok Q;hij'n, 0., e/
.. :.. </ .... ,/f. '. ,. :'. ,; ,:~ <;:
f....;';.... "".'.:; '....'~o' '0....9...'..';.-
,r;on":~ ,', ,"
.. -,- -, ..
o' '~-i ,~: ':~~;t;:" ","",~:>"~, ': - .,'
~: <.'\ ,'i' ~";',.. 't, . "\" '; ~ .
Volume
of Sales
26
28
-7.10/0
29
-3.40k
Using valid sales from Jan 1 to Oct 31
Source: Proval database
12
mercial
2012 co~ Reductions
Industrial Lan
~~
~ w.:lii~
ROANOI<f-
Real Estate
N
A
DEC 2011
Created: 16
I commercial database
Source: Prova
13
2012-2013 Reassessment Summary
"'."''',,'
o Commercial Real Estate
o Industrial land values along portions of Cleveland Ave, Shenandoah Ave, Tazewell
Ave, and Roanoke Center for Industry and Technology were reduced
o A minimal number of improvement values were increased or decreased as a result
of field reviews/equalization based on discovery or uniformity and sector analysis
G Residential Real Estate
o Various reductions in most neighborhoods citywide, except: Grandin Court, Raleigh
Court, Wasena, South Roanoke, Windsor Hills, Old Southwest, and Jefferson Hills
o No residential increase except field inspections where appraisers obtained new
information and updated our database
o Reductions in condo units: The Glen, Glen Ivy, Starview, Southeby, and Windsor
Place
[] New Construction Projects
o Kohls, American Tire Warehouse, Health Department relocation to Williamson Rd.,
Longhorn Steakhouse at Valley View, Popeye's Chicken on Melrose, Trane/
Newbern Warehouse, Dollar General, United Heath Care Renovations, and CVS on
Plantation
o New Rehabs - River House, Lofts at West Station, Lofts at Sixteen West and
Fitness Center, Community High School, and Chemsolve renovations
14
"
'What does all this mean?
o Majority of the City's residential neighborhoods declined
this year especially in areas where foreclosures had a
measurable impact on the valid sales.
[j Portions of commercial industrial land decreased as a
result of local trends.
o Multi-Family properties remained stable.
o 225 new apartment units were added to the Central Business District this year
[] New construction activity remains stable from last year.
@] Overall, aggregate sales ratios remain in line with State
standards.
15
~c
~.
How Can I Appeal My Assessment?
./ A property owner can file an appeal directly with the Office of Real
Estate Valuation. Appeals are due in our office by February 1st.
./ If a property owner does not agree with our appeal decision, they
can file an appeal with the Board of Equalization. The Board is a
three member citizen panel that is appointed by the Circuit Court
each March 1 st.
./ If a property owner does not agree with the Board of Equalization's
decision, they can then file suit in Circuit Court.
16
~L!'t~Q~~2tions ?
jr
Susan S. Lower, SRA
Director of Real Estate Valuation
Suite 250 Noel C. Taylor Building
215 W. Church Ave. S.W.
Roanoke, VA 24011
(540) 853-2771
rea lestate@roanokeva. 9.QY
17
APPENDIX
~ Timeline of Assessment Process
~ History of Projected Assessments
G] History of the Appeals to REV and BOE
g 2010 and 2011 Field Reviews
~ Tax Relief Programs
\~
18
Timeline of Assessment Process
;:(', ";~TdSf!2:2Z~is,.~'^', ~,;!;it :_';:' ~;~;i&;.L~~:~~2:1;L:-:":~11:~,~'.~=]c~';~E:;F=~'=:=:;1~~t~~~_:J~,~:L,,=::-_'?,",~,:;,-':.;."';.:~'_"',~:, ' ,.~ ,'- : . .. .
Ejj January: Notices mailed and hearings begin for citizens to
appeal
[] February: Hearings end, mail decisions
8 March: Board of Equalization (BGE) begins
EJ March: Begin re-assessment process and appraisers field
reviewing property data, sales and building
permits
o April 5th: Second payment of tax bill due (previous
assessment)
o June 30!h: BGE complete
[] July 1st: Begin new fiscal year
(] October 5th: First payment of tax bill due (new January
assessed value)
D October to December: Appraiser team finalizing re-
assessment
Gl December: Post and certify the new assessment values
[Jl December to January 1st: Proofing final values
19
"
History of Roanoke's Assessment
~ c::Z',,=~ ,1JJ-=~[flp=~~(([?:ecrea se )
I" CALE~DA~,YEA~ /. ,',; ;:";~'~,,,.. .~:~AfI;' .,J~o,OF~,~~~SESSME~'r ".,,:,:~o J~9R,E..l\SE:F,~()M ,:. 1,,:"~'::,fqJ:~tP~R;C~N;i !:c:;~:\
1.< ,:;,; )/, ,,' ,;:< ".J" ,,!r.I,CRE:ASE:(DE9.RE:A~,E, J. ';, ',<: '"N,EV\i.,:" ..,\:; I"~JNG~.EA~E(P.ECREASE:)><
I;'. ;>,';'~')';;;',:j'"",,,,,,, ,'< "".',, ;;,:"CONSTRUC'FION, ",:h ,,;", ",.,.,:,',i'I'
I,'" ,c <,):;, f.H> , , ,;,'" '.~' ""')''1::., """",,' ',;:i.;; "i',;,';~.:" <';/' ,iJ:;';i'1~~; : 31 "::i\,';,i(,; ),~':,~:.~, ?': J;?" ,/:,(',;,,;', ::,'~'/,~;::;\:
2012 2013 -1.62 0.41 -1.22
2011 2012 -0.17 0.40 0.23
2010 2011 18 1 18 1.36
2009 2010 .68 1.08 1.76
2008 2009 3.04 1,50 4.54
2007 2008 5.23 1.07 6.30
2006 2007 7.88 0.82 8.70
2005 2006 7.32 1.03 8.35
2004 2005 5.98 1.23 7,21
2003 2004 5.85 1.86 7.71
2002 2003 3.22 2.06 5.28
2001 2002 3.48 1.88 5.36
2000 2001 2.81 1.63 4.44
.:.
ARQJ1-aj$~~"~~~-~-,
~;,,:,,<".q";;--'''' .,'-': t", ;",27 - -~ " '::ff.~Q"_:~~;~-,~.:2':;:;;,~.44"-;~;\~~'t>::;c::,.";-'.\...~~,,,.y~L~~.,,:_,~>.,,,~-:.._... ":;;t,;, ::_.",,' :'
'{'i\ >?~;",' ':'}!,"A~5J. ".~;::' ,':>" ,I ?"., . '"t'!"';; .::iR:'" ';!+ , "":1.'; , C:/' . ,t:,' , 't" ,'. ,;;:"ii'l. ;:};:..~. .;:: \' ;!'~:!!:",;{~,.,'. '~)(
!~~ ~T-?f~"~!s~Plle~> ~~~!'J~~.' .~a~",!~;~,a","~7';",.~' '~~,~I.~,n.:.;,4"~';t'!f:~
:-::, ',,: ,:;:;>~ ,'::; ;"-;,-, ,<'~;"i~'",_:' >- ~-'" -', <; :'>~ y"5',;,},,:,r.;, ;~/!> ;10';;;"- ..,::~-: ~-'''. <t..: ~ '~,J.,,>_1~ :::','f .:'.','_ "":,: '''',. ';~Y :.'i;', ':>,"r>;;. - - ~~ ',7,,: ".J>;:;'
Year 2011 2010 2009 2008
Parcel Count 74 72 87 230
.Ap1RElal~.~.~....'~~~,~d~()'~q,u~Ji3~!i.~h?~'
.> ',::,i., '.;' :,"7'~': " " "..,;.., . ";,'" :',,' ,~>:~ ' "';", ,""'t. ~':~/"':' '$':" ',,~ ~\~,'i .~" ,;><
Year 2011 2010 2009 2008
Parcel Count 63 34 57 43
21
Field Review
2010 & 2011
~~
~~
.. ";Y~'-:;~~
ROANOKE
REAL ESTATE
"
I: ~:;~ I
22
,., '. f
~l~l:'f:!>,""Il)~'f:t/~lJy",.rlj,X"B elief Prog ra ms?
:...:.,.""_..:J..,.:.._~J......)j-,_~,.Jt:"'_";;'~,~l__,"~...~."","-.-c-..;-,..",,...~~~~.,,__~..~:..__'-".o<.;;_,...,.-,-~,~__,.....",-__.,..;",~_..._,_,!,.....".,_.._'__ ".J..._ .~...:. .-...,.; ~"'-'" ,
~ Elderly Tax Freeze
[J Disability Tax Relief Program
[j Rehabilitated Tax Abatement
C] Land' Use Program
o Solar Energy Abatement
~ Energy Efficient - Reduced Tax
Rate
~ Veterans Tax Relief Program
23
&
!i<' '4,
~)
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA
The 3rd day of January, 2012.
No. 39290-010312.
A RESOLUTION amending the Reserve and Debt Management Policies for the
City to conform to the Governmental Accounting Standards Board Statement No. 54.
WHEREAS, on November 1, 2010, Council, by the adoption of resolution 39000-
110110 approved and adopted Reserve and Debt Management Policies for the City; and
WHEREAS, Council desires to amend the Debt Management Policies of the City
to conform with recent changes made by the Governmental Accounting Standards Board.
THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that the
Reserve and Debt Management Policies adopted by Council on November 1, 2010, are
amended to reflect the recent changes made by the Governmental Accounting Standards
Board, as attached to the Director of Finance's letter to Council of January 3,2012.
ATTEST:
~Yrl.~
City Clerk
CITY COUNCIL AGENDA REPORT
To:
Meeting:
Subject:
Honorable Mayor and Members of City Council
January 3, 2012
Revisions to Financial Policies to Align with GASB Statement 54 - Fund
Balance Reporting
Background:
The Governmental Accounting Standards Board (GASB) issued Statement No. 54 to
standardize fund balance reporting. New categories were developed based on the level
of restrictions placed upon fund balances. In the process to standardize the reporting,
new fund balance classifications were devised and prior terminology retired to avoid
confusion. As a result of the GASB changes, two specific areas in the City's financial
policies are in need of revision to incorporate the new fund balance terminology.
The Reserve and Debt Management Policies adopted on November 1, 2010, included the
description of Undesignated General Fund Reserve. The Undesignated General Fund
Reserve will be renamed to the Unassigned General Fund Balance Reserve to avoid any
confusion with the prior fund balance reporting terminology. The new name aligns the
reserve title with the GASB Statement No. 54 terminology.
Staff recommends updating the policy to specifically define the fund balance category the
City will use for financial reporting in the governmental funds. The Unassigned General
Fund Reserve will be reported in the Unassigned category. The Economic and Community
Development Reserve will be> reported in the Committed category. The Economic
Downturn Reserve will be reported in the Assigned category. Please note the Economic
Downturn Reserve has not been established as of this date due to the funding priorities
of other higher priority reserves. And lastly, the Risk Management Reserve remains as the
fund balance in the Risk Management Fund, an Internal Service Fund of the City, and does
not require a financial category notation.
The revisions above do not change the financial management policies of the City but
simply conform the current policy to include language consistent with the GASB Statement
No. 54. .
The recommended Reserve and Debt Management Policies document is attached.
Recommended Action:
City Council adopt the accompanying resolution to amend the Reserve and Debt
Management Policies, dated January 3, 2012, attached to this report.
Mayor and Members of City Council
January 3, 2012
Page 2
ANN~~~
Director of Finance
Distribution: Council Appointed Officers
2
City of Roanoke, Virginia
Reserve and Debt Management Policies
~~
ROANOKE
Revised January 3. 2012
..._-{ Deleted: November 1, 2010
Table of Contents
Goals and Objectives........... ..... ........... .................... ........... ..... 2
Reserve Policies.................. ........................ ........................... 3
Debt Management Policies...... .................................................. 7
Glossary.. .. .. . . .. . . . . .. .. . . . . . . .. .. .. .. . .. . . .... . .. .. . . . . .. .. . . .. . . . ... .. .. . . . . . . .. . . . .13
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
Goals and Objectives
. These policies are designed to help protect the City's financial resources necessary to
meet short-term and long-term operating and capital needs by:
. Promoting sound financial management;
. Protecting and maintaining the City's credit ratings;
. Ensuring the legal and prudent use of the City's debt issuance authority; and
. Guiding the City and its managers in policy and debt issuance decisions.
While adherence to this policy is expected in applicable circumstances, the City
understands that changes in the capital markets, City programs, or other unforeseen
circumstances may from time to time produce situations that are not covered by this
policy and will require modifications or exceptions to achieve the policy goals. In these
cases, the City's management may act, provided specific authorization from the Director
of Finance or City Council is obtained. Failure to comply in any manner with this policy
shall not result in any liability on the part of the City to any party.
These policies will be reviewed at least every two years by the Director of Finance.
~~ The City of Roanoke Reserve and Debt Mana~ement Policies
ROANOKE
2
Reserve Policies
Unassianed General Fund Reserve
....-{ Deleted: Undesianated
. Reserve Floor-Roanoke will target an unreserved, ':,unassigned G~!':!~r?lLf\J.I].~____..-.-'-{ Deleted: Undesignated
Reserve" equal to 10% of General Fund Expenditures. This level of reserves is
intended to provide the City with sufficient working capital and margin of financial
safety to address unforeseen, one-time expenditure emergencies or significant
unforeseen declines in revenues in a specific fiscal year, for which there is no
other current budgetary resource available, or other .&ategories QU~I]_~__~~!?lr!9_~_m__""-"{ Deleted: designations
available to satisfy the funding needed. The Unassianed General Fund Reserve
will be reported in the Unassianed cateaorv on the City's Governmental Funds
Balance Sheet in the General Fund.
. Reserve Drawdown-Drawdown of the JJnassianed ~_~_I]_~!(~LE!.m~LB-_E?~~ry.~___________..-,-'{ Deleted: Undesignated
shall occur only by authorization of City Council. Funds may only be used for the
purposes described above, which cannot be covered from contingencies or other
sources. The Jdnassigned Q.~I]_~!?_I_ELJ_~~_B-_~_~~~~__rl)_?Y_r!Q!J?_~__LJ~~~LfQr_~?_I~!!~[I]_gm.'-----{ Deleted: Undesignated
the annual budget due to recurring declines in revenue sources or recurring
expenditure increases.
. Reserve Replenishment-In the event the Unassigned Q.~I]_~_~?_IXLJ!!~LB-_~_~~rx~m_'-'-"-{ Deleted: Undesignated
is used, it will be restored to its minimum level within three fiscal years. The
Director of Finance will subm it a plan in writing to City Council that will restore the
JJ. nassig ned G~ r!~ r?l! _~~_I]_~. _~~~_~!_y~ _!Q)_t~_!n !r.1}_rl) _LJ!n _! ~Y_~!_~J!b!I]__t~ !~_~_!!~9_~! _ ~~?_~~_'_ _ __ ..- _.- { Deleted: Undesignated
Risk Manaaement Reserve
The City will maintain a Risk Management Reserve to cover some of the risk exposure
the City has due to its self-insurance program. The City is currently self-insured for
Health Workers' compensation, General Liability, and Automobile claims. The Risk
Manaaement Reserve will remain in the Risk Mana<;)ement Fund. an internal service
fund of the City. as fund balance.
. Reserve Floor-The minimum funding level for the Risk Management Reserve
is:
o 25% of the three year average of self-insured claims costs,
o plus 10% of the three year average of fully insured premiums,
o plus a $1 million catastrophic reserve.
. Reserve Drawdown-Use of the Risk Management Reserve will be used to fund
unanticipated risk management expenses.
. Reserve Replenishment-In the event the Risk Management Reserve declines
below its target level, it will be restored to its minimum within three fiscal years.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
3
The Director of Finance will submit a plan in writing to the City Council that will
restore the Risk Management Reserve to its minimum level within three fiscal
years.
I . ......{ Deleted: .------Page Break------.]
t________________________________________________________________________________________________________~_____________________________~
Economic Downturn Reserve
~Reserve Floor- In addition to the 10%Unassigned ~~~~r9-L~~.I]_~U~~~E?!.y~!n______~....-..
Roanoke will target an "Economic Downturn Reserve" to smooth its financial .......
operations in the event of an economic downturn. The Economic Downturn
Reserve will be maintained in an amount up to 5% of the General Fund
Expenditure budget for the current year. The Econom ic Downturn Reserve will
be reported in the Assiqned cateqorv on the City's Governmental Funds Balance
Sheet in the General Fund.
. 't_____________________________________________________________________________________________________________________________---
o Reserve Drawdown- Drawdown of the Economic Downturn Reserve
shall occur only by authorization of City Council. Drawdowns will be
limited to less than one-half of the fund balance in any fiscal year.
Drawdowns must be made in combination with spending cuts or other
measures. The Econom ic Downturn Reserve may only be used in the
event that revenues decline by more than 1.5% of the current year
estimate.
. Reserve Replenishment-In the event the Economic Downturn Reserve is
used, it will be restored to its minimum level within three fiscal years. The
Director of Finance will subm it a plan in writing to City Council that will restore the
Economic Downturn Reserve.to its minimum level within three fiscal years.
Economic and Community Development Reserve
The following Economic and Community Development and Reserve Policy ("E&CD
Reserve") is intended to demonstrate a commitment to financial planning for economic
and community development projects which may provide future growth opportunities
and expansion of the tax base in Roanoke. The E&CD Reserve will be maintained
using the following guidelines:
Fonnatted: Bullets and Numbering
Deleted: Undesignated
Deleted: The Economic Downturn
Reserve will be held as a designated
portion of the City's General Fund
Balance
. Reserve Floor-The E&CD Reserve will be maintained at or above a target level
of $1.0 million. The E&CD Reserve will be . reported in the Committed cateqorv ____...-..- Deleted: a designation within
on the City's Governmental Funds Balance Sheet in ~hE?J~~R~~~U~!.C?j~~!~f_':l_I}~~n.__-<:.. Deleted:
. Reserve Drawdown-Use of the E&CD Reserve shall occur only by
appropriation of City Council for economic or community development projects.
Examples of qualifying uses include, but are not limited to, the purchase of
property for economic development, economic development incentives,
greenway development, and development of infrastructure to support other
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
4
Deleted: City's
economic and/or community development projects. The E&CD Reserve may not
be used for operating or recurring expenditures.
. Reserve Growth and Replenishment-The E&CD Reserve will be maintained
at a level at or above its target by allocating interest earnings of the Capital
Projects Fund and proceeds from the sale of surplus general government real
property. In the event the E&CD Reserve declines below the target level of $1.0
million, it will be restored to its minimum within three fiscal years. E&CD Reserve
replenishment maybe accomplished by allowing E&CD Reserve growth without
appropriation of the E&CD Reserve or by transferring additional funds to the
E&CD Reserve.
Reserve Fundina Plan
With the exception of the Economic and Community Development Reserve, the reserve
policies as outlined herein are higher reserve levels than the City currently maintains. In
order to meet the various reserve levels, the City will add to its reserves using the
funding sources described below and will fill each reserve according to the funding
priorities, also described below. This funding method will continue until each reserve is
fully funded.
Funding Sources
. The City will add at least $250,000 to $500,000 (based on funding availability) to
the existing reserves, according to the funding priority described below. The City
Manager and Director of Finance shall recommend a reserve funding level of at
least $250,000 to $500,000 along with each annual budget submission.
Additional funds may be directed toward the reserves based on year end
surpluses.
. Once General Fund estimated revenues for an upcoming budget year return to a +.....u{ Fonnatted: Left
level equal to the City's FY2009 revenues, as adjusted for changes to the
Consumer Price Index1 ("CPI") and any permanent tax rate increases relative to
the FY2009 tax rate, the City will add an amount equal to.1~%..c?Uh~.r~Y.~.IJ.lJ~umm..-----1 Deleted: 0
growth to the reserves. For example, if revenue growth (as adjusted for changes
in CPI and permanent tax increases) is 2%, then the City will add 0.2% of
revenues to its reserves. Funding of the reserves in any given year will be
limited to the greater of $500,000 or ,1~O(~_.c?r!~~.?J.~~X~Il.t,J.~..9~_()>>'!~.Ji.IJ..t.~~.~y.~.Il.L.m'---..-{ Deleted: .
revenues return to their peak level as adjusted) and may be adjusted based on
actual revenue growth during the fiscal year. By following this funding
methodology, the City will increase its reserves during years of strong financial
growth, with the ability to draw on the reserves during challenging years, in
accordance with the parameters set forth in this policy.
1 For purposes of this calculation, the City will use the yearly average of the Consumer Price Index -
Urban for the South region.
~s The City of Roanoke Reserve and Debt Management Policies
ROANOKE
5
Funding Priorities
1. First, the City will fund the Unassigned G~!"!~r~Lf..t,J.Il.~..~~~.~~.\I~:__Ih~.g!!y"pJ~!"!~____..--'-'- Deleted: Undesignated
to meet the 10% minimum Unassigned Q.~.Il.~F-?J.f~!"!9.~.~~~~~..~.?J~!"!Q~J?.Y___...._____.__.."- Deleted: Undesignated
FY2016.
2. Second, after the JJnassigned G~!"!~r~LEt,J.IJ.~..~~~~0{~.l~Jl!!lyJl!D9~9,.!/:1.~..Qlty.>>,i!L_-.--'-{ Deleted: Undesignated
fund the Risk Management Reserve. The City plans to meet the minimum Risk
Management Reserve balance by FY2016.
3. Third, after the Unassianed_~~D~~~!.f:~Q~uR~~~.r:\I~.~!"!9.B!~~uM~D~9~1l:l.~Il.L..u.m___"/ Deleted: designat
Reserves are fully funded, the City will fund the Economic Downturn Reserve. --..... Deleted: ed
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
6
Debt Management Policy
Introduction
One of the keys to sound financial management is the development of a debt policy.
This need is recognized by bond rating agencies, and development of a debt policy is a
recommended practice by the Government Finance Officers Association. A debt policy
establishes the parameters for issuing debt and managing the debt portfolio. It provides
guidance to the administration regarding purposes for which debt may be issued,types
and amounts of permissible debt and method of sale that may be used. The following
debt policy is intended to demonstrate a commitment to long-term financial planning. It
will be used in conjunction with the Capital Improvement Programs for both the City and
School Board. Adherence to this policy will help assure maintenance of the City's
double-A credit ratings.
Guidelines for Debt Issuance
. The City will prepare and update annually a five-year Capital improvement
Program (CIP) to be approved by City Council. The CIP will be developed with
an analysis of the City's infrastructure and other capital needs, and the financial
impacfof the debt service required to meet the recommended financing plan.
The City will strive to fund at least 10% of the CIP projects' aggregate cost on a
cash basis.
. As part of the annual Capital Improvement Program, the Schools shall furnish the
City a schedule of funding needs for any school projects for which the issuance
of long-term debt is planned.
. Each project proposed for financing through debt issuance will have an analysis
performed for review of tax impact and future operating costs associated with the
project and related debt issuance costs.
. All proceeds from debt issuance for the City of Roanoke and the City of Roanoke
School Board shall be appropriated by City Council.
. Proceeds from the issuance of debt shall be monitored by the investment
custodian with regard to arbitrage. Compliance with all applicable federal tax
requirements shall be made. The City will coordinate with its investment
managers with regard to expected project funds payout so as to maximize
investment earnings in light of federal arbitrage requirements.
. Long-term debt will be issued to purchase or construct capital improvements or
equipment with a minimum expected life of five years. The City will not use long-
term borrowing to finance annual operating needs. The term of any bond issue
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
7
will not exceed the useful life of the capital project /facility or equipment for which
the borrowing is intended.
. The City will attempt to avoid short-term debt to provide cash flow for annual
operations. Debt issued for operating purposes will be limited to cases where
there is reasonable certainty that a known source of revenue will be received in
the current fiscal year sufficient to repay the debt or where there is a clear
financial emergency.
. The City will comply with al.l applicable U.S. Internal Revenue Service and U.S.
Treasury arbitrage requirements for bonded indebtedness in order to preserve
the tax-exempt status of such bonds. .
. Bond issues should be planned to minimize the frequency of issuance, thereby
ensuring the lowest possible costs of issuance. When determining the size of a
bond issue, consideration should be given to the need for construction, debt
service and capitalized interest funds. Construction fund draw schedules shall
be prepared, and projection of conservative earning on unspent bond funds
should be made in conjunction with planning ofthe City's Capital Improvement
Program.
. The decision to use bond proceeds to pay interest during construction for
revenue-producing projects shall be made on a case by case basis and shall be
based on an evaluation of the opportunity cost of funds and the availability of
other sources of funds to pay interest costs.
. General obligation bonds will be amortized on a level principal basis to the extent
practical, and revenue bonds will be amortized on a level debt service basis to
the extent practical considering the forecasted available pledged revenues.
. The City shall not endorse the obligation of any entity other than the City of
Roanoke or Roanoke School Board. However, the City may enter into contracts
with other regional or local public entities with respect to public purpose projects,
which provide for certain payments when project or entity revenues prove
insufficient to cover debt service on obligation issued to finance such project(s).
The City will enter into these type agreements only when there is long-term
public and financial interest in the regional or local project. The obligation could
be structured as Moral Obligation Bonds, or with an underlying support
agreement or other contractual arrangement. These obligations do not affect the
legal debt limit of the City and any payments are subject to annual appropriation.
However, if such payments were made, the obligatio,ns would be considered tax-
supported debt.
. The City's preferred method of sale of bonds is via competitive sale to
underwriters. If deemed advantageous, the City may sell bonds via a negotiated
sale, private placement, or other method. Coordination will be made with the
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
8
City's financial advisor in arriving at a recommendation to issue bonds through a
method other than competitive sale.
Underwriter Selection
. Senior Manager Selection-The City shall select a senior manager for any
proposed negotiated sale. The selection criteria shall include, but not be limited
to, the following:
o Ability and experience in managing transactions similar to that contemplated
by the City;
o Prior knowledge and experience with the City;
o Ability and willingness to risk capital and demonstration of such risk and
capital availability; .
o Quality and experience of personnel assigned to the City's engagement;
o Financing plan; and
o Underwriting fees.
. Co-Manager Selection-Co-managers may be selected on the same basis as
the senior manager. In addition to their qualifications, co-managers appointed to
specific transactions will be a function of transaction size and the necessity to
ensure maximum distribution of the City's bonds.
. Underwriter's Counsel-In any negotiated sale of City debt in which legal
counsel is required to represent the underwriter, the appointment will be made by
the Senior Manager with final approval from the City.
. Underwriter's Discount-The City will evaluate the proposed underwriter's
discount against comparable issues in the market. If there are multiple
underwriters in the transaction, the City will determine the allocation of
underwriting liability and management fees, if any.
The allocation of fees will be determined prior to the sale date; a cap on
management fees, expenses and underwriter's counsel fee will be established
and communicated to all parties by the City. The senior manager shall submit an
itemized list of expenses charged to members of the underwriting group. Any
additional expenses must be substantiated.
. Evaluation of Underwriter Performance-In conjunction with its financial
advisor, the City will evaluate each bond sale after completion to assess the
following: costs of issuance including underwriters' compensation, pricing of the
bonds in terms of the overall interest cost and on a maturity-by-maturity basis,
and the distribution of bonds and sales credits.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
9
. Designation Policies-To encourage the pre-marketing efforts of each member
of the underwriting team, orders for the City's bonds will be net designated,
unless otherwise expressly stated. The City shall require the senior manager to:
o Fairly allocate bonds to other managers and the selling group;
o Comply with Municipal Securities Rulemaking Board (MSRB) regulations
governing the priority of orders and allocations; and
o Within 10 working days after the sale date, submit to the City a detail of
orders, allocations and other relevant information pertaining to the City's sale.
Limitations on level of Debt to be Issued and Outstandina
Constitutional and Statutory Limitations:
. Article VII, Section 10 of the Constitution of Virginia, the Public Finance Act and
the City Charter established the City's Legal Debt Margin at 10% if the assessed.
value of real estate within the City shown by the last preceding assessment for
taxes.
. The Public Finance Act and the City Charter also establish other limits as to the
amounts and types of debt the City may issue.
Self-Imposed Debt Targets:
. Net tax-supported debt as a percentage of the total taxable assessed value in the
City (including real, personal property, and public service corporations) will not
exceed 4%. For all of the City's self-imposed debt targets, the City may exclude
all or a portion of any bonds or leases that are self-supporting.
· Net tax-supported general obligation debt service shall not exceed 10% of
General Fund expenditures.
. Net tax-supported debt will be structured in a manner such that not less than
60% of the aggregate outstanding tax-supported debt will be retired within ten
years.
Types of Debt Issuance
. The City may issue general obligation debt for capital or other properly approved
projects
. The School Board may use the Virginia Public School Authority (VPSA),
Qualified Zone Academy Bonds (QZAB), Qualified School Construction Bonds
(QSCBs), or State Literary Fund loans to finance school capital projects. Such
debt issued on behalf of the School Board constitutes general obligation debt of
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
10
the City. The City Manager and the Director of Finance shall approve any
application to the Commonwealth of Virginia for such debt. City Council shall
approve the issuance of the bonds as required by the Public Finance Act. The
School Board shall approve such financings before requesting City Council
approval.
. The City may issue revenue bonds to fund proprietary activities such as water
and water pollution control utilities, or for other capital projects that generate
adequate revenues from user fees to support operations and debt service
requirements. The bonds will include written legal covenants which require that
revenue sources are adequate to fund annual operating expenses and annual
debt service requirements.
. Capital leases may be used to purchase buildings, equipment, furniture and
fixtures. The term of any capital lease shall not exceed the useful life of the
asset leased. Revenue bonds may be issued by the City or other entity that are
secured by a City capital lease.
. Short-term borrowing may be utilized for interim financing or for other purposes
as described below. The City will determine and utilize the least costly method
for short-term borrowing subject to the following policies:
o Bond Anticipation Notes (BANs) may be issued for capital related cash
purposes to reduce the debt service during the construction period of a
project or to provide interim financing for a project. The BANs shall not
mature more than 5 years from the date of issuance.
o Lines of Credit shall be considered as an alternative to other short-term
borrowing options.
o Other Short-Term Debt may be used when such instruments provide an
interest rate advantage or as interim financing.
. Lease financing and master lease obligations, including lease revenue bonds,
may be considered as alternative financing structures.
Refundina of Debt
The City will refund debt when it is in the best financial interest of the City to do so.
. Debt Service Savings-When a refunding is undertaken to generate interest
rate cost savings, the minimum aggregate present value savings will be 3% of
the refunded bond principal amount. The present value savings will be net of all
costs related to the financing. If present value savings is less than 3%, the City
may consider the refunding efficiency as measured by option value. If the
refunding efficiency of a refunding candidate exceeds 70% (on a maturity-by-
maturity basis) and present value savings is less that 3%, the City may opt to
increase the universe of refunded bonds.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
11
. Restructuring-Refundings for restructuring purposes will be limited to
restructuring to alleviate debt service during difficult budgetary years, achieve
cost savings, mitigate irregular debt service payments, release reserve funds or
remove unduly restrictive bond covenants.
. Term of Refunding Issues-The City will refund bonds within the term of the
originally issued debt. However, the City may consider maturity extension, when
necessary to achieve a desired outcome, provided that such extension is legally
permissible. The City also may consider shortening the term of the originally
issued debt to realize greater savings. The remaining useful life of the financed
facility and the concept of inter-generational equity should guide this decision.
. Escrow Structuring-The City shall utilize the least costly securities available in
structuring refunding escrows. A certificate will be provided by ~ third party ag~nt
stating that the securities were procured through an arms-length, competitive bid
process (in the case of open market securities), and that the price paid for the
securities was reasonable within Federal guidelines. Under no circumstances
shall an underwriter, agent or financial advisor sell escrow securities to the City
from its own account.
. Arbitrage-The City shall take all necessary steps to optimize escrows and to
avoid negative arbitrage in its refundings. Any resulting positive arbitrage will be
rebated as necessary according to Federal guidelines.
Investor Relations. Disclosure and Communication
. The debt ratios outlined above will be computed annually and reported in the
Comprehensive Annual Financial Report, along with a computation of net tax-
supported debt per capita.
. The City will maintain communication with bond rating agencies to keep them
abreast of its financial condition by providing them the City's Comprehensive
Annual Financial Report, Annual budget, and Capital Improvement Program.
. The City will comply with all of its undertakings in accordance with Securities and
Exchange Commission Rule 15c2-21.
Debt Service Fund Balance
· The fund balance of the Debt Service Fund shall be reserved for the future
payment of !:lnnual principal and interest payments, which includes general
obligation qonds of the City, including school debt.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
12
Glossary
Advance Refunding. A refinancing transaction in which new (refunding) bonds are
issued to repay (refund) outstanding bonds prior to the first call date. The proceeds of
the refunding bonds are deposited in an escrow account, invested in government
securities, and used to pay debt service (interest, principal and premium, if any) on the
refunded bonds through the applicable call date. For accounting purposes, refunding
obligations are not considered a part of an issuer's debt.
Arbitrage. The difference between the interest paid on the tax-exempt securities and
the interest earned by investing the security proceeds in higher-yielding taxable
securities. IRS regulations govern arbitrage on the proceeds from issuance of
municipal securities.
Bond Anticipation Notes (BANs). Notes which are paid from the proceeds of the
issuance of long-term bonds. Typically issued for capital projects.
Call Provisions. The terms of the bond giving the issuer the right to redeem all or a
portion of a bond prior to its stated date of maturity at a specific price, usually at or
above par.
Capitalized Interest. A portion of the proceeds of a bond issue which is set aside to
pay interest on the same bond issue for a specific period of time. Interest is commonly
capitalized for the construction period of the project.
Capital Lease. A lease obligation that has met the criteria to be categorized as a
capital lease as opposed to an operating lease under generally accepted accounting
principles. Capital leases are common in certain types of financing transactions
involving the use of revenue bonds as opposed to general obligation bonds.
Competitive Sale. A sale/auction of securities by an issuer in which underwriters or
syndicates of underwriters submit sealed bids to purchase the securities. Contrast to a
negotiated sale.
Continuing Disclosure. The principle that accurate and complete information material
to the transaction which potential investors would be likely to consider material in
making investment decisions with respect to the securities be made available on an
ongoing basis.
Debt. Any obligations of the City for the payment of money issued pursuant to the
Public Finance Act of Virginia.
Debt Service Reserve Fund. The fund in which moneys are placed which may be
used to pay debt service if pledged revenues are insufficient to satisfy the debt service
requirements.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
13
Designation Policies. OuUine how an investor's order is filled when a maturity is
oversubscribed when there is an underwriting syndicate. The senior managing
underwriter and issuer decide how the bonds will be allocated among the syndicate.
There are three primary classifications of orders which form the designation policy:
Group Net orders; Net Designated orders and Member orders.
Escrow. A fund established to hold moneys pledged and to be used to pay debt
service on an outstanding issue.
Expenses. Compensates senior managers for out-of-pocket expenses including: -
underwriter's counsel, DTC charges, travel, syndicate expenses, dealer fees, overtime
expenses, communication expenses, computer time and postage.
General Obligations. Bonds issued by the City secured by the City's pledge of its full
faith and credit and unlimited taxing power.
Intergenerational Equity. Equity or fairness principal that those that benefit from a
capital improvement should pay for it.
Legal Debt Margin. The amount of federal obligation bonds and certain other interest
bearing obligations (other than revenue bonds) that the City may have outstanding
expressed as a percentage of the assessed value of real estate in the City as shown on
the last preceding assessment for taxes.
Negotiated Sale. A method of sale in which the issuer chooses one underwriter to
negotiate terms pursuant to which such underwriter will purchase and market the bonds.
Option Value. Option valuation is a methodology for evaluating the efficiency of a
refunding. Option valuation calculates the maximum theoretical value of refunding a
bond, then expresses the current refunding savings as a percentage of the maximum
theoretical savings.
Pay-As-You-Go. An issuer elects to finance a project with existing cash flow as
opposed to issuing debt obligations.
Present Value. The current value of a future cash flow.
Private Placement. The original placement of an issue with one or more investors as
opposed to being publicly offered or sold.
Rebate. A requirement imposed by Tax Reform Act of 1986 whereby the issuer of tax-
exempt bonds must pay the IRS an amount equal to its profit earned from investment of
tax-exempt bond proceeds at rates exceeding the tax-exempt borrowing rate. The tax-
exempt borrowing rate (or "bond yield") is calculated pursuant to the IRS code together
with all income earned on the accumulated profit pending payment.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
14
Refunding. A transaction in which the City refinances an outstanding issue by issuing
new (refunding) bonds .and using the proceeds to immediately retire the old (refunded)
bonds.
Revenue Bonds. Bonds issued by the City secured by a specific revenue pledge of
rates, rents or fees.
Tax -Supported Debt. Debt that is expected to be repaid from the general fund tax
revenues of the City. This includes general obligation bonds, appropriation-supported
bonds, capital leases and in certain circumstances moral obligation bonds. For the
purpose of this Debt Policy, net tax"supported debt includes general obligation debt for
the City and School Board, certain bonded capital leases, and any moral obligation
bonds for which the City has deposited funds to a debt service reserve fund as
requested to replenish such reserve fund.
Underwriter. A dealer that purchases new issues of municipal securities from the
Issuer and resells them to investors.
Underwriter's Discount. The difference between the price at which bonds are bought
by the Underwriter from the Issuer and the price at which they are reoffered to investors.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
15
City of Roanoke, Virginia
Reserve and Debt Management Policies
~;;.
--"'. ~
ROANOKE
Revised January 3, 2012
Table of Contents
Goals and Objectives............................................................... 2
Reserve Policies..................................................................... 3
Debt Management Policies.............. . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . ... 7
Glossary............................................................................. ...13
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
1
Goals and Objectives
These policies are designed to help protect the City's financial resources necessary to
meet short-term and long-term operating and capital needs by:
. Promoting sound financial management;
. Protecting and maintaining the City's credit ratings;
. Ensuring the legal and prudent use of the City's debt issuance authority; and
. Guiding the City and its managers in policy and debt issuance decisions.
While adherence to this policy is expected in applicable circumstances, the City
understands that changes in the capital markets, City programs, or other unforeseen
circumstances may from time to time produce situations that are not covered by this
policy and will require modifications or exceptions to achieve the policy goals. In these
cases, the City's management may act,. provided specific authorization from the Director
of Finance or City Council is obtained. Failure to comply in any manner with this policy
shall not result in any liability on the part of the City to any party.
These policies will be reviewed at least every two years by the Director of Finance.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
2
Reserve Policies
Unassianed General Fund Reserve
. Reserve Floor-Roanok"e will target an unreserved, "Unassigned General Fund
Reserve" equal to 10% of General Fund Expenditures. This level of reserves is
intended to provide the City with sufficient working capital and margin of financial
safety to address unforeseen, one-time expenditure emergencies or significant
unforeseen declines in revenues in a specific fiscal year, for which there is no
other current budgetary resource available, or other categories of fund balance
available to satisfy the funding needed. The Unassigned General Fund Reserve
will be reported in the Unassigned category on the City's Governmental Funds
Balance Sheet in the General Fund.
. Reserve Drawdown-Drawdown of the Unassigned General Fund Reserve
shall occur only by authorization of City Council. Funds may only be used for the
purposes described above, which cannot be covered from contingencies or other
sources. The Unassigned General Fund Reserve may not be used for balancing
the annual budget due to recurring declines in revenue sources or recurring
expenditure increases.
. Reserve Replenishment-In the event the Unassigned General Fund Reserve
is used, it will be restored to its minimum level within three fiscal years. The
Director of Finance will submit a plan in writing to City Council that will restore the
Unassigned General Fund Reserve to its minimum level within three fiscal years.
Risk Manaaement Reserve
The City will maintain a Risk Management Reserve to cover some of the risk exposure
the City has due to its self-insurance program. The City is currently self-insured for
Health Workers' compensation, General Liability, and Automobile claims. The Risk
Management Reserve will remain in the Risk Management Fund, an internal service
fund of the City, as fund balance. I,
. Reserve Floor-The minimum funding level for the Risk Management Reserve
is:
o 25% of the three year average of self-insured claims costs,
o plus 10% of the three year average of fully insured premiums,
o plus a $1 million catastrophic reserve.
. Reserve Drawdown-Use of the Risk Management Reserve will be used to fund
unanticipated risk management expenses.
. Reserve Replenishment-In the event the Risk Management Reserve declines
below its target level, it will be restored to its minimum within three fiscal years.
~1i1 The City of Roanoke Reserve and Debt Management Policies
ROANOKE
3
"fihe Director of Finance will submit a plan in writing to the City Council that will
restore the Risk Management Reserve to its minimum level within three fiscal
years.
Economic Downturn Reserve
. Reserve Floor- In addition to the 10% Unassigned General Fund Reserve,
Roanoke will target an "Economic Downturn Reserve" to smooth its financial
operations in the event of an economic downturn. The Economic Downturn
Reserve will be maintained in an amount up to 5% of the General Fund
Expenditure budget for the current year. The Economic Downturn Reserve will
be reported in the Assigned category on the City's Governmental Funds Balance
Sheet in the General Fund.
.
o Reserve Drawdown- Drawdown of the Economic Downturn Reserve
shall occur only by authorization of City Council. Drawdowns will be
limited to less than one-half of the fund balance in any fiscal year.
Drawdowns must be made in combination with spending cuts or other
measures. The Economic Downturn Reserve may only be used in the
event that revenues decline by more than 1.5% of the current year
estimate.
. Reserve Replenishment-In the event the Economic Downturn Reserve is
used, it will be restored to its minimum level within three fiscal years. The
Director of Finance will submit a plan in writing to City Council that will restore the
Economic Downturn Reserve t6 its minimum level within three fiscal years.
Economic and Community Development Reserve
The following Economic and Community Development and Reserve Policy ("E&CD
Reserve") is intended to demonstrate a commitment to financial planning for economic
and community development projects which may provide future growth opportunities
and expansion of the tax base in RQanoke. The E&CD Reserve will be maintained
using the following guidelines:
· Reserve Floor-The E&CD Reserve will be maintained at or above a target level
of $1.0 million. The E&CD Reserve will be reported in'the Committed category
on the City's Governmental Funds Balance Sheet in the Capital Projects Fund.
· Reserve Drawdown-Use of the E&CD Reserve shall occur only by
appropriation of City Council for economic or community development projects.
Examples of qualifying uses include, but are not limited to, the purchase of
property for economic development, economic development incentives,
greenway development, and development of infrastructure to support other
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
4
economic and/or community development projects. The E&CD Reserve may not
be used for operating or recurring expenditures.
. Reserve Growth and Replenishment-The E&CD Reserve will be maintained
at a level at or above its target by allocating interest earnings of the Capital
Projects Fund and proceeds from the sale of surplus general government real
property. In the event the E&CD Reserve declines below the target level of $1.0
million, it will be restored to its minimum within three fiscal years. E&CD Reserve
replenishment may be accomplished by allowing E&CD Reserve growth without
appropriation of the E&CD Reserve or by transferring additional funds to the
E&CD Reserve.
Reserve Fundina Plan
With the exception of the Economic and Community Development Reserve, the reserve
policies as outlined herein are higher reserve levels than the City currently maintains. In
order to meet the various reserve levels, the City will add to its reserves using the
funding sources described below and will fill each reserve according to the funding
priorities, also described below. This funding method will continue until each reserve is
fully funded.
Funding Sources
. The City will add at least $250,000 to $500,000 (based on funding availability) to
the existing reserves, according to the funding priority described below. The City
Manager and Director of Finance shall recommend a reserve funding level of at
least $250,000 to $500,000 along with each annual budget submission.
Additional funds may be directed toward the reserves based on year end
surpluses.
. Once General Fund estimated revenues for an upcoming budget year return to a
level equal to the City's FY2009 revenues, as adjusted for changes to the
Consumer Price Index1 ("CPI") and any permanent tax rate increases relative to
the FY2009 tax rate, the City will add an amount equal to 10% of the revenue
growth to the ,reserves. For example, if revenue growth (as adjusted for changes
in CPI and permanent tax increases) is 2%, then the City will add 0.2% of
revenues to its reserves. Funding of the reserves in any given year will be
limited to the greater of $500,000 or 10% of local revenue growth (in the event
revenues return to their peak level as adjusted) and may be adjusted based on
actual revenue growth during the fiscal year. By following this funding
methodology, the City will increase its reserves during years of strong financial
growth, with the ability to draw on the reserves during challenging years, in
accordance with the parameters set forth in this policy.
1 For purposes of this calculation, the City will use the yearly average of the Consumer Price Index -
Urban for the South region.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
5
Funding Priorities
1. First, the City will fund the Unassigned General Fund Reserve. The City plans
to meet the 10% minimum Unassigned General Fund Reserve balance by
FY2016.
2. Second, after the Unassigned General Fund Reserve is fully funded, the City will
fund the Risk Management Reserve. The City plans to meet the minimum Risk
Management Reserve balance by FY2016.
3. Third, after the Unassigned General Fund Reserve and Risk Management
Reserves are fully funded, the City will fund the Economic Downturn Reserve.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
6
Debt Management Policy
Introduction
One of the keys to sound financial management is the development of a debt policy.
This need is recognized by bond rating agencies, and development of a debt policy is a
recommended practice by the Government Finance Officers Association. A debt policy
establishes the parameters for issuing debt and managing the debt portfolio. It provides
guidance to the administration regarding purposes for which debt may be issued, types
and amounts of permissible debt and method of sale that may be used. The following
debt policy is intended to demonstrate a commitment to long-term financial planning. It
will be used in conjunction with the Capital Improvement Programs for both the City and
School Board. Adherence to this policy will help assure maintenance of the City's
double-A credit ratings.
Guidelines for Debt Issuance
. The City will prepare and update annually a five-year Capital improvement
Program (CIP) to be approved by City Council. The CIP will be developed with
an analysis of the City's infrastructure and other capital needs, and the financial
impact of the debt service required to meet the recommended financing plan.
The City will strive to fund at least 10% of the CI P projects' aggregate cost on a
cash basis.
. As part of the annual Capital Improvement Program, the Schools shall furnish the
City a schedule of funding needs for any school projects for which the issuance
of long-term debt is planned.
. Each project proposed for financing through debt issuance will have an analysis
performed for review of tax impact and future operating costs associated with the
project and related debt issuance costs.
. All proceeds from debt issuance for the City of Roanoke and the City of Roanoke
School Board shall be appropriated by City Council.
. Proceeds from the issuance of debt shall be monitored by the investment
custodian with regard to arbitrage. Compliance with all applicable federal tax
requirements shall be made. The City will coordinate with its investment
managers with regard to expected project funds payout so as to maximize
investment earnings in light of federal arbitrage requirements.
. Long-term debt will be issued to purchase or construct capital improvements or
equipment with a minimum expected life of five years. The City will not use long-
term borr.owing to finance annual operating needs. The term of any bond issue
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
7
will not exceed the useful life. of the capital project /facility or equipment for which
the borrowing is intended.
. The City will attempt to avoid short-term debt to provide cash flow for annual
operations. Debt issued for operating purposes will be limited to cases where
there is reasonable certainty that a known source of revenue will be received in
the current fiscal year sufficient to repay the debt or where there is a clear
financial emergency.
. The City will comply with all applicable U.S. Internal Revenue Service and U.S.
Treasury arbitrage requirements for bonded indebtedness in order to preserve
the tax-exempt status of such bonds. .
. Bond issues should be planned to minimize the frequency of issuance, thereby
ensuring the lowest possible costs of issuance. When determining the size of a
bond issue, consideration should be given to the need for construction, debt
service and capitalized interest funds. Construction fund draw schedules shall
be prepared, and projection of conservative earning on unspent bond funds
should be made in conjunction with planning of the City's Capital Improvement
Program.
. The decision to use bond proceeds to pay interest during construction for
revenue-producing projects shall be made on a case by case basis and shall be
based on an evaluation of the opportunity cost of funds and the availability of
other sources of funds to pay interest costs.
. General obligation bonds will be amortized on a level principal basis to the extent
practical, and revenue bonds will be amortized on a level debt service basis to
the extent practical considering the forecasted available pledged revenues.
. The City shall not endorse the obligation of any entity other than the City of
Roanoke or Roanoke School Board. However, the City may enter into contracts
with other regional or local public entities with respect to public purpose projects,
which provide for certain payments when project or entity rever:lUes prove
insufficient to cover debt service on obligation issued to finance such project(s).
The City will enter into these type agreements only when there is long-term
public and financial interest in the regional or local project. The obligation could
be structured as Moral Obligation Bonds, or with an underlying support
agreement or other contractual arrangement. These obligations do not affect the
legal debt limit of the City and any payments are subject to annual appropriation.
However, if such payments were made, the obligations would be considered tax-
supported debt.
· The City's preferred method of sale of bonds is via competitive sale to
underwriters. If deemed advantageous, the City may sell bonds via a negotiated
sale, private placement, or other method. Coordination will be made with the
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
8
City's financial advisor in arriving at a recommendation to issue bonds through a
method other than competitive sale.
Underwriter Selection
. Senior Manager Selection-The City shall select a senior manager for any
proposed negotiated sale. The selection criteria shall include, but not be limited
to, the following:
o Ability and experience in managing transactions similar to that contemplated
by the City;
o Prior knowledge and experience with the City;
o Ability and willingness to risk capital and demonstration of such risk and
capital availability;
o Quality and experience of personnel assigned to the' City's engagement;
o Financing plan; and
o Underwriting fees.
. Co-Manager Selection-Co-managers may be selected on the same basis as
the senior manager. In addition to their qualifications, co-managers appointed to
specific transactions will be a function of transaction size and the necessity to
ensure maximum distribution of the City's bonds.
. Underwriter's Counsel-In any negotiated sale of City debt in which legal
counsel is required to represent the underwriter, the appointment will be made by
the Senior Manager with final approval from the City.
. Underwriter's Discount-The City will evaluate the proposed underwriter's
discount against comparable issues in the market. If there are multiple
underwriters in the transaction, the City will determine the allocation of
underwriting liability and management fees, if any.
The allocation of fees will be determined prior to the sale date; a cap on
management fees, expenses and underwriter's counsel fee will be established
and communicated to all parties by the City. The senior manager shall submit an
itemized list of expenses charged to members of the underwriting group. Any
additional expenses must be substantiated.
. Evaluation of Underwriter Performance-In conjunction with its financial
advisor, the City will evaluate each bond sale after completion to assess the
following: costs of issuance including underwriters' compensation, pricing of the
bonds in terms of the overall interest cost and on a maturity-by-maturity basis,
and the distribution of bonds and sales credits.
~. The City of Roanoke Reserve and Debt Management Policies
ROANOKE
9
. Designation Policies-To encourage the pre-marketing efforts of each member
of the underwriting team, orders for the City's bonds will be net designated,
unless otherwise expressly stated. The City shall require the senior manager to:
o Fairly allocate bonds to other managers and the selling group;
o Comply with Municipal Securities Rulemaking Board (MSRB) regulations
governing the priority of orders and allocations; and
o Within 10 working days after the sale date, submit to the City a detail of
orders, allocations and other relevant information pertaining to the City's sale.
Limitations on level of Debt to be Issued and Outstandina
Constitutional and Statutory Limitations:
. Article VII, Section 10 of the Constitution of Virginia, the Public Finance Act and
the City Charter established the City's Legal Debt Margin at 10% if the assessed
value of real estate within the City shown by the last preceding assessment for
taxes.
. The Public Finance Act and the City Charter also establish other limits as to the
amounts and types of debt the City may issue.
Self-Imposed Debt Targets:
. Net tax-supported debt as a percentage of the total taxable assessed value in the
City (including real, personal property, and public service corporations) will not
exceed 4%. For all of the City's self-imposed debt targets, the City may exclude
all or a portion of any bonds or leases that are self-supporting.
· Net tax-supported general obligation debt service shall not exceed 10% of
General Fund expenditures.
· Net tax-supported debt will be structured in a manner such that not less than
60% of the aggregate outstanding tax-supported debt will be retired within ten
years.
Tvpes of Debt Issuance
. The City may issue general obligation debt for capital or other properly approved
projects
. The School Board may use the Virginia Public School Authority (VPSA),
Qualified Zone Academy Bonds (QZAB), Qualified School Construction Bonds
(QSCBs), or State Literary Fund loans to finance school capital projects. Such
debt issued on behalf of the School Board constitutes general obligation debt of
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
10
the City. The City Manager and the Director of Finance shall approve any
application to the Commonwealth of Virginia for such debt. City Council shall
approve the issuance of the bonds as required by the Public Finance Act. The
School Board shall approve such financings before requesting City Council
approval.
. The City may issue revenue bonds to fund proprietary activities such as water
and water pollution control utilities, or for other capital projects that generate
adequate revenues from user fees to support operations and debt service
requirements. The bonds will include written legal covenants which require that
revenue sources are adequate to fund annual operating expenses and annual
debt service requirements.
. Capital leases may be used to purchase buildings, equipment, furniture and
fixtures. The term of any capital lease shall not exceed the useful life of the
asset leased. Revenue bonds may be issued by the City or other entity that are
secured by a City capital lease.
. Short-term borrowing may be utilized for interim financing or for other purposes
as described below. The City will determine and utilize the least costly method
for short-term borrowing subject to the following policies:
o Bond Anticipation Notes (BANs) may be issued for capital related cash
purposes to reduce the debt service during the construction period of a
project or to provide interim financing for a project. The BANs shall not
mature more than 5 years from the date of issuance.
o Lines of Credit shall be considered as an alternative to other short-term
borrowing options.
o Other Short-Term Debt may be used when such instruments provide an
interest rate advantage or as interim financing.
. Lease financing and master lease obligations, including lease revenue bonds,
may be considered as alternative financing structures.
Refundina of Debt
The City will refund debt when it is in the best financial interest of the City to do so.
. Debt Service Savings-When a refunding is undertaken to generate interest
rate cost savings, the minimum aggregate present value savings will be 3% of
. the refunded bond principal amount. The present value savings will be net of all
costs related to the financing. If present value savings is less than 3%, the City
may consider the refunding efficiency as measured by option value. If the
refunding efficiency of a refunding candidate exceeds 70% (on a maturity-by-
maturity basis) and present value savings is less that 3%, the City may opt to
increase the universe of refunded bonds.
~-
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
11
. Restructuring-Refundings for restructuring purposes will be limited to
restructuring to alleviate debt service during difficult budgetary years, achieve
cost savings, mitigate irregular debt service payments, release reserve funds or
remove unduly restrictive bond covenants.
. Term of Refunding Issues-The City will refund bonds within the term of the
originally issued debt. However,'the City may consider maturity extension, when
necessary to achieve a desired outcome, provided that such extension is legally
permissible. The City also may consider shortening the term of the originally
issued debt to realize greater savings. The remaining useful life of the financed
facility and the concept of inter-generational equity should guide this decision.
. Escrow Structuring-The City shall utilize the least costly securities available in
structuring refunding escrows. A certificate will be provided by a third party agent
stating that the securities were procured through an arms-length, competitive bid
process (in the case of open market securities), and that the price paid for the
securities was reasonable within Federal guidelines. Under no circumstances
shall an underwriter, agent or financial advisor sell escrow securities to the City
from its own account.
. Arbitrage-The City shall take all necessary steps to optimize escrows and to
avoid negative arbitrage in its refundings. Any resulting positive arbitrage will be
rebated as necessary according to Federal guidelines. .
Investor Relations, Disclosure and Communication
. The debt ratios outlined above will be computed annually and reported in the
Comprehensive Annual Financial Report, along with a computation of net tax-
supported debt per capita.
. The City will maintain communication with bond rating agencies to keep them
abreast of its financial condition by providing them the City's Comprehensive
Annual Financial Report, Annual budget, and Capital Improvement Program.
· The City will comply with all of its undertakings in accordance with Securities and
Exchange Commission Rule 15c2-21.
Debt Service Fund Balance
· The fund balance of the Debt Service Fund shall be reserved for the future
payment of annual principal and interest payments, which includes general
obligation bonds of the City, including school debt.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
12
Glossary
Advance Refunding. A refinancing transaction in which new (refunding) bonds are
issued to repay (refund) outstanding bonds prior to the first call date. The proceeds of
the refunding bonds are deposited in an escrow account, invested in government
securities, and used to pay debt service (interest, principal and premium, if any) on the
refunded bonds through the applicable call date. For accounting purposes, refunding
obligations are not considered a part of an issuer's debt.
Arbitrage. The difference between the interest paid on the tax-exempt securities and
the interest earned by investing the security proceeds in higher-yielding taxable
securities. IRS regulations govern arbitrage on the proceeds from issuance of
municipal securities.
Bond Anticipation Notes (BANs). Notes which are paid from the proceeds of the
issuance of long-term bonds. Typically issued for capital projects. .
Call Provisions. The terms of the bond giving the issuer the right to redeem all or a
portion of a bond prior to its stated date of maturity at a specific price, usually at or
above par.
Capitalized Interest. A portion of the proceeds of a bond issue which is set aside to
pay interest on the same bond issue for a specific period of time. Interest is commonly
capitalized for the construction period of the project.
Capital Lease. A lease obligation that has met the criteria to be categorized as a
capital lease as opposed to an operating lease under generally accepted accounting
principles. Capital leases are common in certain types offinancing transactions
involving the use of revenue bonds as opposed to general obligation bonds.
Competitive Sale. A sale/auction of securities by an issuer in which underwriters or
syndicates of underwriters submit sealed bids to purchase the securities. Contrast to a
negotiated sale.
Continuing Disclosure. The principle that accurate and complete information material
to the transaction which potential investors would be likely to consider material in
making investment decisions with respect to the securities be made available on an
ongoing basjs.
Debt. Any obligations of the City for the payment of money issued pursuant to the
Public Finance Act of Virginia.
Debt Service Reserve Fund. The fund in which moneys are placed which may be
used to pay debt service if pledged revenues are insufficient to satisfy the debt service
requirements.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
13
Designation Policies. Outline how an investor's order is filled when a maturity is
oversubscribed when there is an underwriting syndicate. The senior managing
underwriter and issuer decide how the bonds will be allocated among the syndicate.
There are three primary classifications of orders which form the designation policy:
Group Net orders; Net Designated orders and Member orders.
Escrow. A fund established to hold moneys pledged and to be used to pay debt
service on an outstanding issue.
Expenses. Compensates senior managers for out-of-pocket expenses including:
underwriter's counsel, DTC charges, travel, syndicate expenses, dealer fees, overtime
expenses, communication expenses, computer time and postage.
General O~ligations. Bonds issued by the City secured by the City's pledge of its full
faith and credit and unlimited taxing power.
Intergenerational Equity. Equity or fairness principal that those that benefit from a
capital improvement should pay for it.
Legal Debt Margin. The amount of federal obligation bonds and certain other interest
bearing obligations (other than revenue bonds) that the City may have outstanding
expressed as a percentage of the assessed value of real estate in the City as shown on
the last preceding assessment for taxes.
Negotiated Sale. A method of sale in which the issuer chooses one underwriter to
negotiate terms pursuant to which such underwriter will purchase and market the bonds.
Option Value. Option valuation is a methodology for evaluating the efficiency of a
refunding. Option valuation calculates the maximum theoretical value of refunding a
bond, then expresses the current refunding savings as a percentage of the maximum
theoretical savings.
Pay-As-You-Go. An issuer elects to finance a project with existing cash flow as
opposed to issuing debt obligations.
Present Value. The current value of a future cash flow.
Private Placement. The original placement of an issue with one or more investors as
opposed to being publicly offered or sold.
Rebate. A requirement imposed by Tax Reform Act of 1986 whereby the issuer of tax-
exempt bonds must pay the IRS an amount equal to its profit earned from investment of
tax-exempt bond proceeds at rates exceeding the tax-exempt borrowing rate. The tax-
exempt borrowing rate (or "bond yield") is calculated pursuant to the IRS code together
with all income earned on the accumulated profit pending payment.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
14
Refunding. A transaction in which the City refinances an outstanding issue by issuing
new (refunding) bonds and using the proceeds to immediately retire th~ old (refunded)
bonds.
Revenue Bonds. Bonds issued by the City secured by a specific revenue pledge of
rates, rents or fees.
Tax -Supported Debt. Debt that is expected to be repaid from the general fund tax
revenues of the City. This includes general obligation bonds, appropriation-supported
bonds, capital leases and in certain circumstances moral obligation bonds. For the
purpose of this Debt Policy, net tax-supported debt includes general obligation debt for
the City and School Board, certain bonded capital leases, and any moral obligation
bonds for which the City has deposited funds to a debt service reserve fund as
requested to replenish such reserve fund.
Underwriter. A dealer that purchases new issues of municipal securities from the
Issuer and resells them to investors.
Underwriter's Discount. The difference between the price at which bonds are bought
by the Underwriter from the Issuer and the price at which they are reoffered to investors.
~~ The City of Roanoke Reserve and Debt Management Policies
ROANOKE
15
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, 2012
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
five months ended November 30. .
The current year revenue budget for FY12 represents a 2.1 % increase from the adopted
budget of FY11. Primary areas with year-over-year budget increases included General
Property Taxes (Personal Property), Local Taxes (Sales and Meals Taxes) and
Intergovernmental Services (Foster Care).
General Fund revenues through November FY12 increased 0.3% or $273,000 from last
year as presented in the accompanying financial statement. This overall growth is mainly
due to increased local tax revenues and charges for services. The current year over year
lag in growth of 0.3% compared to the FY12 projected growth of 2.1 % is related to the
growth in significant taxes such as Personal Property, BPOL and Bank Stock which will be
collected in March through,May and, to a lesser extent, the timing of receipt of
reimbursements. Considering these factors, it is anticipated that the FY12 projected
growth will be achieved. Significant year over year variances will be explained in further
detail in this report.
The current expenditures for FY12 represent a 6.0% increase from the prior year as of
November. The current year expenditures are running ahead of FY11 primarily related to
increases in Public Safety, Public Works, Health and Welfare and Debt Service. Increases
in Police and Fire personnel and overtime, street paving costs and the timing of an
encumbrance for the health department in the current year were the main drivers of
these increases. Also contributing to the increase were higher debt service payments as
some 2010 series and refunding bonds initial payments began in the current year. The
expenditure budget for FY12 was 2.4% higher than FY11. The gap between the 6.0%
year-over year increase compared to the budgeted increase is related primarily to timing
of expenditures, with the exception of Police and Fire personnel costs, which will have a
diminishing effect as the year progresses. The City continues to manage to budget and
is expected to make the necessary expenditure reductions to recover these exceptional
Honorable Mayor and Members of Council
January 3, 2012
Page 2
personnel costs and remain within budget for the year. These, along with other
variances, are described in further detail in the expenditure section of the narrative.
Revenues:
Commentaries on significant revenue variances are discussed as follows:
General Property Taxes decreased by 0.1 % or $42,000. Delinquent tax collections were
higher in FY11 due to several unusually large collections. Overall, Real Estate Tax
revenues for FY12 are projected to remain stable.
Local Tax revenues increased by 2.6% or $479,000 compared to the same period in
FY11. Sales tax revenues year to date increased by 2.5%, strong growth despite the
impact of the Walmart relocation to Roanoke County. The Transient Occupancy and the
Food and Beverage taxes performed well with growth of 5.6% and 6.4%, respectively, as
a result of improved travel into the City and citizens and visitors continuing to dine out.
Cigarette taxes, which increased by 13.9% or $133,000, and to a lesser extent,
recordation taxes, up by 26%, also contributed to the increase. Partially offsetting the
increase was a 10.4% reduction of $197,000 in the Telecommunications Tax caused by
a reduction of household land lines.
Fines and Forfeitures revenues decreased by 21.5% as compared to FY11 as shown in
the accompanying financial statement. Effective FY12, Parking Ticket revenues,
including the collection fee, were moved to the Parking Fund. Adjusting for this
change, revenues in this category increased 0.6% or $2,700.
Revenue from the Use of Money and Property declined by 60.5% compared to the same
period in FY11 , due to the loss in rental income from the Commonwealth Building
which is now privately owned. Adjusted for this $115,000 change, revenues decreased
12.2% as a result of lower interest earnings.
Charges for Services increased 16.7% or $391,000 related to an increase in emergency
medical service (EMS) billings, which were delayed in FY11. This will continue to impact
FY12 revenues throughout the year. Also contributing to this variance is an increase in
the number of federal prisoners housed in the City Jail. This trend is expected to
continue throughout FY12.
Miscellaneous Revenues declined 48.6% or $178,000 as a result of a decrease in tax
sale proceeds and in' payment in lieu of tax by non-profit organizations granted
exemption from the real estate tax. The process and timeline from sale to the receipt
of proceeds varies significantly based on the final approvals by the court of the sales
terms. Tax sales are typically held twice a year, and the first sale in FY12 was held on
November 7.
Honorable Mayor and Members of Council
January 3, 2012
Page 3
Expenditures:
The fiscal year 2012 General Fund expenditure .budget totals $260.1 million and
includes funding of approximately $1.4 million to cover contracts and purchase orders
made during fiscal year 2011 but not paid by the end of that year. The current
expenditure budget is 2.4% higher than FY11. General Fund expenditures and
encumbrances through November were $114.7 million. Compared to the prior year,
expenditures increased 6.0% or approximately $6.5 million. Significant categorical
variances are discussed as follows:
Public Works increased 12.6% or $1.3 million primarily related to an increase in Street
Paving costs. Paving expenditures increased $ 595,000 compared FY11 due to an _
increase in the number street miles to be paved in FY12. Also contributing to the
variance were increases in Building Maintenance and Streets and Traffic. Building
Maintenance increased for expenditures related to the Municipal Building and
expenditures related to a new flooring system in the pedestrian walkway downtown.
Streets and Traffic increased due to higher expenditures for concrete, sidewalks and
curb maintenance.
Transfers to Debt Service Fund decreased by 13.4% or $1.6 million compared to FY11.
This variance was due to a change in the handling of school debt under the new school
funding policy which resulted in a $3.1 million decrease. The school debt transfer
decrease was offset byan increase in the school funding transfer. The total reduction in
the debt service transfer was partially offset by payments of $1.5 million which began
FY12 for 201 OC, 20100 and 201 OE series bonds which were issued in August 2010.
Transfers to School Fund increased by 12.4% or $3.5 million. Effective with FY12, the
School funding formula changed. The funding under the formula is higher, but the City
no longer pays any debt service on behalf of Roanoke Schools. The School Board pays
debt service using funds provided through the formula. This change in handling of
debt service payments did not, in-and-of-itself, increase overall funding available to
schools. However, Roanoke Schools will receive more net funding from the City in FY12
as a result of local tax growth. This was an increase of approximately 2%.
Nondepartmental expenditures decreased 13.3% or $186,000. This decrease was
primarily related to a transfer to the Capital Projects Fund in FY11 for $425,000 for the
Aviation Drive and Towne Square Project. Additional funding for this project was
required to address storm drain issues as well as land acquisition. Additionally, there
was a reduction in transfers to the Grant Fund which can fluctuate from year to year
based on grant activity requiring a local match. Partially offsetting these decreases was
an increase in transfers to the Greater Roanoke Transit Company (GRTC) and
Miscellaneous expense. The GRTC transfer increased 40.6% when compared to FY11.
City Council approved a higher GRTC subsidy in FY12, resulting from higher fuel and
medical insurance costs, in order to continue peak hours of service. One-half of the
Honorable Mayor and Members of Council
January 3, 2012
Page 4
FY12 budgeted subsidy has been provided as of this reporting period. Miscellaneous
expenses increased related to Xerox service contract charges and the timing of an
allocation of these costs to other departments.
Civic Facilities Fund
In November, the Civic Center held 20 events with 19,190 attendees. This was 2 events
more, but 2,893 attendees less than in November 2010. November 2011 results were
one event and 1,328 attendees less than budgeted. Event highlights for November
included sold-out performances by the Roanoke Symphony and Mannheim Steamroller,
two Broadway shows, and the "Stocked Market" Christmas Bazaar. For FY12 year-to-
date, there have been 91 events with 54,901 attendees. This was a decrease of 5.2% or
5 less events, and a decrease of 36.5% or 31,548 less attendees for the same period in
FY11. The programming at the Civic Center covers a wide variety of entertainment
events which causes comparisons between years to vary significantly. The FY12 year-
to-date Operating Loss for the Civic Center was $1,001,000, a decline of 10.8% or
$97,000, from FY11. Revenues declined by $886,000, and expenses declined by
$789,000. The year-to-date Change in Net Assets for FY12 was a decrease of
$1,196,000, compared to an FY11 decrease of $1,165,000, a decline of 2.7%or
$31,000. The Civic Center Fund financial performance was consistent year to year
despite the different mix of programming events and lower attendance in the current
year.
December programming is filled with national acts and is projected to do well. The
winter season programming line-up is viewed as strong and should keep the Civic
Center on track financially for the year.
Parking Fund
The City's Parking Fund operates seven garages and five surface lots with a total FY12
budget of just under $3.2 million. 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 a General Fund subsidy and generates sufficient working capital to
fund facility improvements and repairs.
The November FY12 year-to-date operating revenues increased 21.5% or $248,000
compared to FY11. Parking facility revenues increased about 6.2% or $71,000, with the
remaining revenue increase due to the inclusion of $177,000 in on-street parking ticket
fines and fees. In previous fiscal years, these revenues were reported in'the General
Fund. A revitalized Market Garage accounted for $59,000 of the $71,000 facility
revenue increase, while the net of the other twelve facilities accounted for the
remaining $12,000 revenue increase. Market Garage has a strong demand for short
Honorable Mayor and Members of Council
January 3, 2012
Page 5
term parking and a waiting list for long term spaces. Gainsboro Garage and Higher
Education Center Lot continue to benefit from the temporary relocation of Poff Building
offices and residential parking demand. The Tower Garage revenue decline continues,
but should not worsen, as it was the fall of 2010 when Meridium moved to their
Williamson Road location. Center in the Square ~arage continues to experience
declines from the ongoing building renovation.
On the expense side, spending levels for FY12 are up 185.7%, or $358,000, compared
to FY11. This is due to $56,000 of on-street parking administrative expense which was
reported in the General Fund in prior years. Also, in FY11 , Lancor was four months in
arrears receiving payment for their management fees. In FY12, they are current. These
two items account for approximately $348,000 of the additional FY12 operating
expense. The remaining $10,000 is the result of increased Risk Management
assessments and fluctuations in utilities and maintenance projects from FY11 to FY12.
The Parking Fund's net assets declined 32% primarily related to the timing of the
payments of the Lancor management fees which were not paid up to date until
December in FY 11. Adjusting for these fees of approximately $73,000 per month, the
'Fund's net assets actually increased approximately.$183,000 due to the inclusion of
on-street parking. .
City of Roanoke Pension Plan
The Pension Trust Fund experienced a total investment loss of 4.8% for the fiscal year-
to-date through November 2011, due to losses in the international equity, domestic
equity, and convertible bond categories of investments. Investment performance for
this period fell below the Policy Portfolio benchmark performance of (3.1 %), due to
underperformance in the convertible bond and domestic equity investment allocations.
For the five month period ending November 30, 2011, Plan Net Assets decreased $23.8
million. This was a result of $4.7 million in employer contributions offset by $16.4
million in net investment loss and $12.1 million in benefit payments and Plan
administrative expenses. Benefits paid to Participants increased 2.2% due to higher
retirement allowances earned by more recent retirees, while Administrative expenses
declined due to the timing of expenditures.
Closing
In closing, the City continues to view the economywith caution largely a result of the
volatility of the stock market and global concerns in financial markets. Unemployment
continues at a heightened rate with inflation in check although the City showed a
decline of 0.3% in unemployment for the month of October. The Federal Reserve
continues its policy to hold interest rates at all-time lows and predicts this to continue
Honorable Mayor and Members of Council
January 3, 2012
Page 6
through 2012. Concerns of a double-dip recession persist, and uncertainty seems to
be the prevailing theme of financial markets.
Locally, City taxes remain on a path of fairly strong growth thus far in FY12. Sales tax
shows continued growth, and the City continues to benefit from consumer spending on
dining through the meals tax. However, the real estate market remains depressed with
deteriorating assessed values. The current month financial results indicate revenues
were performing well with slight growth compared with last year at this point.
Expenditures, while up year to date, are expected to remain within budget.
Please contact me with any questions you have on these financial statements.
Sincerely,
&!J SRows~
Ann H. Shawver
Director of Finance
Attachments
c: Christopher P. Morrill, City Manager
Timothy R. Spencer, Acting City Attorney
Drew Harmon, Municipal Auditor
Stephanie M. Moon, City Clerk
Sherman M. Stovall, Assistant City Manager
R. Brian Townsend, Assistant City Manager
Amelia C. Merchant, Director of Management and Budget
Deborah J. Moses, Parking Facilities Manager
Robyn L. Schon, 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, 2011
STATEMENT OF REVENUE
(UNAUDITED)
Current Revenue
Revenue Budget
Revenue Source Budget Variance
General Property Taxes $ 103,575,000 $ (62,195,894)
Other Local Taxes 74,365,000 (55,785,805)
Permits, Fees and Licenses 1,057,000 (702,779)
Fines and Forfeitures 1,171,000 (676,327)
Revenue from Use of Money and Property 172,000 (89,602)
Intergovernmental 67,722,000 (50,332,620)
Charges for Services 7,345,000 (4,619,671)
Internal Services 2,731,000 (2,034,985)
Transfers From Other Funds
Miscellaneous Revenue 559,000 (370,219)
Total $ 258,697,000 $ (176,807,902)
Actual
July 1 - November 30
2011 - 2012
$ 41,379,106
18,579,195
354,221
494,673
82,398
17,389,380
2,725,329
696,015
-
188781
$ 81,889,098
Actual
July 1 - November 30
2010 - 2011
$ 41,420,682
18,100,109
371,056
630,233
208,389
17,449,323
2,334,859
724,084
10,565
366,954
$ 81,616,254
STATEMENT OF EXPENDITURES AND ENCUMBRANCES
(UNAUDITED)
Current
Expenditure Unencumbered
Expenditures Budget Balance
General Government $ 12,903,807 $ 7,207,711
Judicial Administration 7,914,970 4,806,522
Public Safety 58,255,625 30,620,964
Public Works 25,016,130 13,054,115
Health and Welfare 40,821,350 25,009,454
Parks, Recreation and Cultural 9,311,452 4,922,127
Community Development 5,912,679 3,362,901
Transfer to Debt Service Fund 14,191,207 3,880,971
Transfer to School Fund 76,770,914 44,762,175
Nondepartmental 8,977,942 7,762,311
Total $ 260,076,076 $ 145,389,251
Actual
July 1 - November 30
2011 - 2012
$ 5,696,096
3,108,448
27,634,661
11,962,015
15,811,896
4,389,325
2,549,778
10,310,236
32,008,739
1215,631
$ 114,686,825
1
Actual
July 1 - November 30
2010 - 2011
$ 5,634,100
2,893,934
25,925,062
10,626,588
14,393,728
4,370,914
2,536,120
11,899,748
28,485,609
1,402,070
$ 108,167,873
Percent of
Budget
Received
40.0%
25.0%
33.5%
42.2%
47.9%
25.7%
37.1%
25.5%
0.0%
33.8%
31.7%
Percent of
Budget
Obligated
44.1%
39.3%
474%
47.8%
38.7%
47.1%
43.1%
72.7%
41.7%
13.5%
44.1%
FY12 vs FY11
Variance
(0.1%)
26%
. (4.5%)
(21.5%)
(60.5%)
(0.3%)
16.7%
(3.9%)
(100.0%)
(48.6%)
0.3%
FY12 vs FY11
Variance
1.1%
74%
6.6%
,12.6%
9.9%
0.4%
0.5%
(134%)
124%
(13.3%)
6.0%
CITY OF ROANOKE, VIRGINIA
CIVIC FACILITIES FUND
COMPARATIVE STATEMENT OF REVENUES AND EXPENSES
FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2011
(UNAUDITED)
FY 2012 FY 2011
Operating Revenues
Rentals $ 971,717 $ 1,198,987
Event Expenses 406,183 944,018
Advertising 81,087 66,391
Admissions Tax 108,930 188,798
Facility Surcharge/Ticket Rebate 120,697 161,327
Commissions 16,849
Ancillary 28,372 39,441
Miscellaneous 58,512 45,597
Total Operating Revenues 1,775,498 2,661,408
Operatinq Expenses
Personal Services 509,713 502,292
Operating Expenses 1,728,388 2,543,285
Management Fees 147,500 138,685
Depreciation 391,025 381,065
Total Operating Expenses 2,776,626 3,565,327
Operating Loss (1,001,128) (903,919)
Nonoperating Revenues/(Expenses)
Investment Income 23,518 22,873
Interest Expense (243,785) (242,049)
Net Nonoperating Expenses (220,267) (219,176)
Loss Before Transfers and Contributions, (1,221,395) (1,123,095)
Transfers and Contributions
Transfer from Capital Projects Fund 25,000
Transfer to Debt Service Fund (42,025)
Net Transfers and Contributions 25,000 (42,025)
Change in Net Assets $ (1,196,395) $ (1,165,120)
2
(1) On Street Parking activities transferred from the General Fund to the Parking Fund effective
July 1, 2011. Activities include revenue collection and enforcement expenses.
(2) In FY12, Lancor management fees are current but were four months in arrears in FY11.
3
~..
CITY OF ROANOKE, VIRGINIA
CITY TREASURER'S OFFICE
GENERAL STATEMENT OF ACCOUNTABILITY
FOR THE MONTH ENDED NOVEMBER 30, 2011
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, 2011.
BALANCE AT BALANCE AT
OCT 31,2011 RECEIPTS DISBURSEMENTS NOV 30, 2011
CONSOLIDATED FUNDS $63,884,420.92 $15,327,056.25 $25,919,547.85 $53,291,929.32
BALANCE AT
NOV 30,2010
$61,820,494.28
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 ENDING NOVEMBER 30,2011. THAT SAID FOREGOING:
CASH
CASH IN HAND
CASH IN WELLS FARGO BANK
CASH IN HOMETOWN BANK
CASH IN VALLEY BANK
INVESTMENTS:
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 .
$11,466.84
1,289,760.27
100.00
2,717.68
7,746,278.60
4,280,372.55
29,054,855.60
6,000,000.00
92,807.82
4,813,569.96
$53,291,929.32
DECEMBER 16, 2011
^~
4
CITY OF ROANOKE PENSION PLAN
STATEMENT OF CHANGES IN PLAN NET ASSETS
FOR THE FIVE MONTHS ENDED NOVEMBER 30, 2011
(UNAUDITED)
FY 2012 FY 2011
Additions:
Employer Contributions $ 4,707,072 $ 3,459,989
Investment Income
Net Appreciation/(Depreciation) in Fair Value of Investments (17,744,536) 33,972,011
Interest and Dividend Income 1,546,806 1,333,629
Total Investment Gain/(Loss) (16,197,730) 35,305,640
Less Investment Expense 180,551 161,320
Net Investment Gain/(Loss) (16,378,281) 35,144,320
Total Additions/(Deductions) $ (11,671,209) $ 38,604,309
Deductions
Benefits Paid to Participants
Administrative Expenses
Total Deductions
Net lncrease/(Decrease)
$ 12,122,188 $ 11,866,922
5,554 13,915
12,127,742 11,880,837
(23,798,951 ) 26,723,472
Net Assets Held in Trust for Pension Benefits:
Fund Balance July 1
Fund Balance November 30
330,416,109
$ 306,617,158
280,476,609
$ 307,200,081
5
Assets,
Cash
Investments, at Fair Value
Accounts Receivable
Due from Other Funds
Total Assets
Liabilities and Net Assets
Liabilities:
Due to Other Funds
Accounts Payable
Total Liabilities
CITY OF ROANOKE PENSION PLAN
STATEMENT OF PLAN NET ASSETS
NOVEMBER 30, 2011
(UNAUDITED)
Net Assets Held in Trust For Pension Benefits
FY 2012
$ 1,842,622
307,203,757
477
$ 309,046,856
$ 2,429,588
110
2,429,698
$ 306,617,158
FY 2011
$ - (1)
311,223,601
28,238
954
$ 311,252,793
$ 4,052,349 (1)
363
4,052,712
$ 307,200,081
(1) A negative cash balance of $1 ,678,360 in FY 2011 is reported as Due to Other Funds. Cash
balances fluctuate based on the timing of transfers from Investments and is not reflective of a change in
cash availability.
6
. .
7.b.3.
'"
City of Roanoke
Financial Report
Five Months Ended
November 30, 2011
FY12 General Fund Overview
· FY12 adopted budget 2.1 % over FY11 adopted.
· Revenues YTD increased 0.30/0 in FY12 compared to FY11 primarily in
areas of local taxes and charges for services. The current year performance
lag compared to budget relates to significant taxes such as Personal
Property, BPOl, and Bank Stock which will be collected March through May
and the timing of reimbursements. Considering these factors, General Fund
revenues are on track to achieve budget.
· Other local taxes increased 2.60/0 led by the Food & Beverage tax and Sales
tax.
· Expenditures YTD increased 60/0 compared to FY11 in the areas of Public
Safety (Police and Fire personnel costs), Public Works (street paving costs)
and Health and Welfare (health services contract). The majority of these
increases are related to timing with the exception of Police and Fire
personnel costs. With use of contingencies to cover exceptional costs and
careful management of expenses, expenditures are expected to remain
within budget for the year.
2
7
6
fA 5
g 4
.-
== 3
:E 2
1
o
Sales Tax Growth Strongest in
Several Years
FY12 Revenue Estimate $18.5 M
4 Months Ended 10/31
I- Prior YTD Actual 0 YTD Budget ~YTD Actual I
Revenue is 2.50/0 higher than last year despite
Walmart's relocation to the Cou,nty. Nationally, the
retail trend is up and growth is expected to continue as
the holiday shopping season progresses.
3
Meals Tax Leads Local Tax Growth'
lI)
r:::
.2 4
::!:
FY12 Revenue Estimate $16.5 M
6
5
3
2
4 months Ended 10/31
Revenue increased 6.40/0 year over year and is 30/0 higher
than FY 12 budget. General economic improvement and
increased delinquent collections related to payment
arrangements continue to contribute to the variance.
. Prior YTD
o YTD
Bu dget
III YTD
Actual
4
Lodging Tax Exceeding
Budget and Prior Year
Transient Occupancy Tax Revenue Estimate $2.9 M
2
~ 1.5
o
--
-
--
:E 1
0.5
. Prior YTD
o YTD Budget
. YTD Actual
5 months Ended 11/30
Lodging tax revenue increased 5.6% compared to FY11
and improved 2.50/0 compared to budget as a result of
improved travel activity.
5
Cigarette Tax Significantly Improve
Cigarette Tax Revenue Estimate $2.393 M
1.25
tn 1
c
o
.-
-
-
.-
:E 0.75
0.5
. Prior YTD
D YTD Budget
. YTD Actual
5 Mo Ended 11/30
Cigarette tax revenue has increased 13.90/0 since FY11 and is
90/0 over budget. Revenue trend continues to increase.
6
Funding From -the Commonwealth
26010 of Budget
Budgeted revenues up $1.3 M or 2010 from FY11
Revenue
FY12
Nov YTD
SOci?1 .l"
Services
.
- . .
. Other
Categorical
.
$ 1,288,000 $ 1,059,000 ,I $ 229,000 II 21.7% I 16.2% I~I
- .. - .-,. -. *1 !;
2,709,000 2,671,000 . 38,000 1.4% 31.4% · ~ .
8,502,00011 . 9,111,000 II( 609,000) II (6~7%)I._... _26'~o/~I_~J
4,891,000 4,609,000' 282,000 6.1%. 25,6% 11__;
, \ " _~ I - ' - i
11 '\
FY11
Nov YTD
I
$ Change
FY12 0/0
Change
FY120/0
Collected
t Non-
. categ~ri?al
Shared
· Non-Categorical increase related to Recordation and Rental Car
taxes expected to continue outpacing current year revenue
budget
· Social Services decrease related to reduction in Foster Care
reimbursements
7
Other Local Revenues
All Other Revenues Comprise 5010 Budget
Charges 'for
,services
2,335,000 '.
.
,~~~i17'~~~0Y]l;S4,~~o) .1[.......i.33,~r:JI.. .,.1
630,000 ,i ( 135,000) . (21,5%) . 42.2%.___
.' 47,9% [___.j
37,1% ""t'-
o . _ _
72.!fiGlOO ( 28;.000)(:i9~)T." ~. 25,$%Jr_1
,. . 'L!J
378,000' (189,000) (50,0%). 33,8% . ..-.
$ Change ,
FY12 0/0
Change
FY12 0/0
Collected
Revenue
FY12
Nov YTD
FY11
Nov YTD
[
0.... .. . .~..
.. . .82;0001
2,7,?5,OOO
208,000 ( 1 26,000) (60.5%)'
.'
390,000. 16.70/0
. /~96;?091
189~000
Miscellaneous .
.
Internal Services expected to be on target for FY12 due to Employee Health
Services annual billing
Miscellaneous decline related to decreased tax sales proceeds and payments in 8
lieu of tax by non-profit organizations granted exemption from real estate tax
.
Personnel (Salary/Benefit) Lapse
Performing Ahead of Target
$40
$30
tn
c:
~ $20
-
--
~
$10
$0
Target
Actua I
Fiscal Year savings currently projected at $900,000
9
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Public Safety Overtime
and Fire/EMS Part-Time
Above Target .
Target
Actual
Expenses $90,300 above target
Fire/EMS Power Unit expenses included which will be
covered through salary lapse 10
$1,000
$750
tn
-g $500
co
tn
::s $250
o
.J:
I- $0
Workers' Compensation
Expenses Above Target
Target
Actual
Expenses $265,200 above target
11
Comprehensive Services Act
Expenses Below Target
$3.5
$3.0
t/) $2.5
5$2.0
=$1.5
=$1.0
:E $0.5
$0.0
FY 2011 Actual
FY 2012 Actual
Target
November year-ta-date expenses are $72,300 belaw
target.
Year-to-date target = $3,028,540
12
Residential Juvenile Detention
Expenses Below Target
$600
$500
In $400
-g $300
~ $200
In $100
5 $0
.t:
~
Target
Actual
Expenses $217,850 below target
13
$1,000
tn $750
-g $500
m $250
g $0
.J:
~
Solid Waste Tipping Fees
Below Target.
Target
Actual
Expenses $73,300 below target
14
(/) $1,000
-g $750
m $500
~ $250
o $0
.t:
I-
Motor Fuel Expenses
Below Target
Target
Actual
Expenses $40,300 below target
15
Civic Facilities Fund
Comparative Statement of Revenues and Expenses
For the Five Months Ending November 30, 2011
(Unaudited)
FY 2012 FY 2011 Variance
Total Operating Revenues $ 1,775,498 $ 2,661,408 (33.0%)
Total Operating Expenses 2,776,626 3,565,327 (22.0%)
Operating Loss (1,001,128) (903,919) (11.0%)
Net Nonoperating Expenses (220,267) (219,176) (1.0%)
Loss Before Transfers and Contributions (1,221,395) (1,123,095) (9.0%)
Net Transfers and Contributions 25,000 (42,025) 160.0%
Change in Net Assets $ (1,196,395) $ (1,165,120) (3.0%)
.
91 events FY12 YTO which is a decrease of 5 events over one year ago
November 2011 had 1 event and 1,328 attendees less than budgeted
November events included the Roanoke Symphony,-Mannheim Steamroller, two
Broadway shows and the Stocked Market Christmas Bazaar
Lower operating expenses, but even lower operating revenues contributed to an
operating loss deterioration of 10.8010 or $97,000 16
.
.
.
Parking Fund
Comparative Statement of Revenues and Expenses
For the Five Months Ending November 30, 2011
(Unaudited)
FY 2012 FY 2011 Variance
Total Operating Revenues $ 1,400,842 $ 1,153,179 21%
Total Operating Expenses 892,425 537,172 66%
Operating Income 508,417 616,007 (17% )
Net Nonoperating Expenses (275,691) (274,406) 0%
Change in Net Assets $ 232,726 $ 341,601 (32%)
.
Operating Revenues increased $177 K due to transfer of parking enforcement to
Parking Fund in FY12
Parking Fund operating expenses increased $355 K and includes parking
enforcement costs previously charged to the General Fund
In FY12, Lancor management fees are current but were four months in arrears
in FY11
Adjusting for these items, expenses increased slightly year to year
.
.
.
17
Pension Plan Trust
Roanoke
Performance Period Pension Plan Policy
Fiscal YTO (4.8%) (3.1 %)
One Year 5.6% 6.5%
Three Years 13.2% 11.5%
Five Years 2.4% 1.7%
400
350
300
250
200
150
100
Market Value Assets
(Millions)
. Low (2/28/09)
. 6/30/08
D 6/30/09
11/ 6/30/10
.6/30/11
D 10/31/11
.11/30/11
IjI High (10/31/07)
Asset Allocation 11/30/11
~~-~~ -~
...~~
~..~
. us Equities
~ Cash Equiv
ij] Real Estate
o Balanced
iii Convertibles
. International Equities
II] US Fixed Income
o International Emerging Equities
Pension Plan assumed rate of return is
7.75%
18
Unemployment Trends
10.00/0
9.00/0
8.00/0
7.00/0
6.0%
5.0%
4.0%
3.0% -
Roanoke
VA
us
. Apr 11
. May 11
. Jun 11
. Jul 11
. Aug 11
.Sep 11
D Oct 11
Roanoke unemployment is below the national average but
higher than the VA average. Roanoke MSA rate has
. declined to 6.20/0 as of October.
19
City Performance Stable Through
November
· Revenue growth of 0.30/0 is below target due
to the timing of collection of significant taxes
with projected growth and timing of
reimbursements
· Local taxes with strength include sales, food,
lodging, cigarette and recordation taxes
· Expenditures are expected to remain within
budget for the year but are currently
outpacing budget YTD due to timing and
increased public safety personnel costs.
· Uncertainty in global financial markets,
continued unemployment strains and federal
budget challenges continue.
.." .."
20
~
IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA,
The 3rd day of January, 2012.
NO. 39291-010312.
A RESOLUTION amending Resolution No. 39150-070511 adopted July 5, 2011, which
established a meeting schedule for City Council for the Fiscal Year commencing July 1, 2011, and
terminating June 30, 2012.
WHEREAS, Council wishes to begin televising and recording the 9:00 a.m. session of the
regular meeting on the first Monday in each month and is not able to televise and record the meeting
in the EOC conference room;
WHEREAS, Council wishes to conduct its 9:00 a.m. sessions in the Council Chambers,
Room 450, ofthe Municipal Building; and
WHEREAS, the remainder of Resolution No. 39150-070511 shall remain in full force and
effect.
THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows:
1. The 9:00 a.m. session of the regular meeting on the first Monday in each month shall
be held in Council Chambers, Room 450, of the Municipal Building, unless otherwise provided by
resolution of CounciL City Council may prescribe a meeting place other than that established by
this resolution by adoption of a resolution establishing a meeting place. City Council shall cause a
copy of such resolution to be posted adjacent to the door of the Council Chambers and inserted in a
newspaper having general circulation in the City at least seven days prior to the date ofthe meeting
at such amended place.
K:\MEAStlRES\YEARLY MEAStlRES\AMENDED COUNCXL MEETXNG SCHEDULE 2011-2012 '1'0 CHANGE LOCATION.DOC
2. . This Resolution shall have no application to special meetings of City Council called
pursuant to S 10 of the City Charter.
ATTEST:
K: \MEASURES\ YEARLY MEASURES\AMENDED COUNcrL MEETING SCHEDULE 2011-2012 TO CHANGE LOCATrON. OOC
· }n. ~
City Clerk
Miscellaneous - City Council - 12/20/2011
THOMAS J. GERDY
(3){ .845 .1111
<
FAX 434.845.0078
~..~..~, 1~,
General Contractor
1022 Commerce Street
Suite 2A
Lynchburg, VA 24504
License # 2701 021255A
December 16,2011
REceIVED
lEe 2 0 2011
MAYOR'S OFFICE
Mayor David Bowers, City Manager Morrill, and City Council
215 Church Ave SW
Room 452
Roanoke, VA 24011-1594
Dear Mayor Bowers, City Manager Morrill, and members of council,
As elected officials of the city of Roanoke, I understand that a great deal of your
contact with the public involves challenges, complaints, and problems. You can
all relax because I don't have any challenges, complaints, or problems that I
need you to handle. This is a letter of thanks and congratulations.
I am the general contractor from Lynchburg who handled the "blitz style"
renovations of Shakers Restraurant at Valley View Mall. Gutting and renovating
Shakers in 9 days was quite a challenge. For it to work everyone involved has to
be on board and flexible. I always tell subcontractors and vendors that have
never worked on a project like this that you have to be so flexible that you can
touch your left elbow with your left hand.
From the very early stages of planning this project, I was extremely impressed by
the entire planning and building inspection department. Every step along the
way I found people who were not only extremely competent, but also wonderfully
pleasant to deal with. I need to specifically mention and thank a few of the
people that I had direct contact with. Valerie Staten, Steven Swain, and Don
Richardson were always very helpful and pleasent. Jeff Shawver made the plan
review and approval process painless. Out in the field, AI Crespo understood the
complex nature of the project and made every effort to work with us and grinned
while he did so. .
The bottom line is that I was very impressed from start to finish by the way
everyone in planning and inspections handled their jobs. I have always
preached that inspections, planning, and the trades people are in this thing
together. These city employees fully understand that concept.
I again thank all involved for helping us succede at a fairly challenging task.
Please pass my thanks on to those involved and my congratulations Jor creating
a business friendly and cooperative work environment.
Respectt~o)J
ThO~~erdY
Report from Moody's Analytics referenced by Council Member Rosen on 1/3/2012.
RELATIVE EMPLOYMENT PERFORMANCE (1996=100)
. .
EMPLOYMENT
GROWTH RANK
."
. .
. . -
.' , RELATIV.E.....~OSTS
.....
. :; I '. I
. . ..... I ;,' I
Best=l. Worst=392 U.S.;100"/,
VITALI
-,
Eai
U.S.;l()(Jo" 'Best=l Worst---384
LIFE CYCLE PHASE
Mature
2004 2005 2006 2007 2008 2009 2010 INDICATORS 2011 2012 2013 2014 2015
125
120
115
110
105
100
95
Data Buffet" MSA code: MROA
..... U.S.
96979899000102030405060708091011F12F13F14F15F
..... ROA
13.7 14.2 14.4 14.6 14.7 14.4 14.7 Gross metro product (C$B) 15.0 15.6 16.1 16.5 16.9
-1.7 3.7 1.7 1.4 0.3 -1.6 1.8 % change 1.9 3.7 3.5 2.8 2.2
156.9 159.2 162.4 163.3 162.2 155.6 154.3 Total employment (000) 154.8 157.4 160.5 164.7 167.7
-0.5 1.5 2.0 0.5 -0.6 -4.1 -0.9 % change 0.3 1.7 1.9 2.7 1.8
3.8 3.5 3.1 3.1 4.0 7.3 7.4 Unemployment rate 6.4 5.7 5.4 4.6 4.2
5.6 3.9 6.0 7.1 3.8 -0.8 0.7 Personal income growth 2.8 4.2 5.8 6.6 5.1
293.7 296.2 299.6 302.7 305.5 307.7 308.8 Population (000) 310.0 311.5 313.0 314.6 316.2
1,577 1,410 1,189 981 774 447 404 Single-family permits 527 817 1,107 1,330 1,263
181 194 39 25 84 2 32 Multifamily permits 65 128 136 132 116
141.7 148.0 153.2 151.6 149.3 143.1 140.1 Existing-home price ($ths) 139.1 139.1 142.4 152.8 160.7
1,862 1,933 2,063 2,000 1,162 871 953 Mortgage originations ($mil) 727 872 1,060 1,288 1,570
1.6 2.6 3.5 2.6 2.4 1.8 0.8 Net migration (000) 0.9 1.2 1.3 1.3 1.3
2,204 2,650 888 1,036 1,272 1,574 1,350 Personal bankruptcies 1,247 1,217 1,334 1,433 1,239
STRENGTHS & WEAKNESSES
STRENGTHS
. Diverse employment base.
. Excellent transportation infrastructure.
. Low business and living costs.
WEAKNESSES
. Aging population, as young, educated
residents leave the area.
. Exposure to secularly declining durable
goods manufacturing.
. Few growth drivers.
CURRENT EMPLOYMENT TRENDS
JUNE 2011
% change yr ago, 3-mo MA
Total
Construction -3.4
Manufacturing
Trade
Trans/Utilities
Information
Financial Activities
Prof & Business Svcs.
Edu & Health Svcs.
Leisure & Hospitality -2.8
Other Services
Government
UPSIDE
. A stronger than anticipated rebound in the
housing market spurs demand for locally
produced furniture.
. Metro area expands as a healthcare hub.
DOWNSIDE
. House price declines continue longer than
expected.
. ROA's auto parts suppliers do not benefit as
expected from rebounding sales.
Recent Performance. Roanoke's recovery re-
mains fragile. Labor market data are mixed, with
the unemployment rate dropping and household
employment rising, but establishment employ-
ment remains below its year-ago level. The unem-
ployment rate is above the state average, but sig-
nificantly below the u.s. rare. Consumer finances
are healthy, as house price declines have been far
smaller than average and credit quality is much bet-
ter than average. Nevertheless, the weak national
performance is weighing on the local economy.
City performance. Recent improvement in the
Roanoke City economy will help the metro area's
short-term prospects. The municipality added a
significant number of jobs only twice in the past
12 years. But activity is starting to improve-three
new construction projects are now under way. The
Market building and Center in the Square are un-
dergoing major renovations and Roanoke Gas is
replacing piping downtown.
Increased business formation adds to the posi-
tive outlook. City records show that 21 businesses
opened rhere in the first quarter, compared with 12
in rhe first quarter oflast year and 15 in 2009. City
finances are also recovering. No layoffs are planned
for rhe just-started fiscal year, in sharp contrast with
staff reductions that totaled 10% over the last thee
years. While city revenues are up more than 2%,
workers will go a fourth year without pay increases,
although a onetime bonus is possible.
Manufacturing. Manufacturing gains will help
push ROA's short-rerm recovery. The metro area
has an above-average exposure to manufacturing,
which was a negative for the economy through
much of the last decade. However, manufacturing
hit its low in April 2009 and has since added about
1,100 jobs, representing 7% growth. By contrast,
manufacturing employment nationally did not
stop falling until the end of 2009, and job growth
ANALYSIS
since the ttough has been only about 2%. Demand
for products manufactured in ROA is rising as the
national and international economies expand. One
example is the lone steel mill in the metro area, the
Roanoke Bar Division of Steel Dynamics. The re-
cently modernized plant operated at 90% capacity
in rhe first quarter, up from 75% a year earlier and
60% in the first three months of 2009. A major
customer base for the plant is commercial construc-
tion, in which the recovery has been weak so far.
Household credit. Better household balance
sheets will also help push the recovery. Credit
conditions in ROA are on average better than in
the state or nation. Deleveraging has moved at the
same pace as the state, although total credit bal-
ances seem to be closer to leveling off in recent
months. This is plausible, as default rates remain
below the state and national averages. ROA had a
very small housing cycle, which meant its credit
cycle was muted, leaving fewer consumers with
credit problems. This better situation has until re-
cently been offset by the lack of job growth. The
sluggish labor market reduced income and spend-
ing growth. As a result, retail employment is grow-
ing near the national pace, rather than exceeding
it as the state is doing, or lagging, as the weak job
growth would suggest.
The Roanoke economy is recovering. However,
even after recovery is complete, the metro area
will remain a modest underperformer. Slow pop-
ulation growth constrains the outlook. Help will
come from ROA's modest success in diversifying
away &om manufacturing. The metro area will
capitalize on its growing role as a medical and
retail hub for southern Virginia, with its medi-
cal services industry benefiting &om changing
demographics.
Scott Hoyt
July 2011
MOODY'S ANAL YTICS I Precis U.S. Metro I South / July 2011
f,,', , < "E1vfeD!e;vMEKft&:fINoll.isTRy:!i ~r,', :;,l':"I;'!1iT~-" " MIGRATION FLOWS ,q
..., ,;:} _ . ......,_f =~"";t;~ =;&,,.. ""~:t '" ~" ,,_ {""= ~:t>. '" ~ , it,.,,;' , * *',,~ ~ '" ~ , '" coO , _" ~_ '"
TOP EMPLOYERS
Carilion Health System
Wells Fargo & Company
General Electric Company
Lewis-Gale Medical Center
lIT-Electro-Optical Products Division
James A. Haley Veterans Hospital
Allstate Insurance Company
Norfolk Southern Corporation
Manpower, Inc.
Goodwill Industries
Wa~Mart Stores, Inc.
Roanoke Memorial Community Hospital
Courtland Health Care Center
Yokohama Tire Corporation
MW Manufacturing
Medical Facilities of America, Inc.
The Branch Group
Advance Auto Parts
Blue Cross and Blue Shield Association
Rowe Manufacturing Inc.
INDUSTRIAL DIVERSITY
Most Diverse (U.S,)
1,00
9,724
1,835
1,500
1,498
1,467
1,460
1,400
1,396
1,225
1,200
> 1000
> 1000
> 1000
1,000
987
950
936
900
900
900
0.80 0.76
0.60
0.40
0.20
0.00
Least Diverse
EMPLOYMENT VOLATILITY
Due to U,S. fluctuations Relative to U.S.
100%
~
80%
Sources: Roanoke County Economic Development, 2010. Roanoke Regional
Chamber of Commerce & Virginia Industry Directory, 2009
60%
'iJ(!@
'iJ(iXi)
40%
PUBLIC
Federal 4,076 20%
State 3,236
Local 14,303 0%
o Not due to U.S. 0 Due to U.S. o ROA o U.s.
2010
COMPARATIVE EMPLOYMENT AND INCOME
Sector % of Total Employment Aver~ge Annual Earnings
ROA VA U,S. ROA VA U.S.
Mining 0.1% 0.2% 0.5% nd $77 347 $91 ,842
Construction 5.1% 5.0% 4.3% nd $48478 $50,268
Manufacturing 10.5% 6.4% 8.9% $67 763 $64 568 $72,640
Durable 68.1% 57.5% 61.3% nd $65814 $73,745
Nondurable 319% 42.5% 38.7% nd $62 893 $70876
Transportation/Uti Iities 5.6% 3.1% 3.6% nd $57 958 $60 284
Wholesale Trade 4.9% 3.0% 4.2% nd $75,050 $72,785
Retail Trade 11.7% 11.0% 11.1% $25,736 $28.481 $29,664
Information 1.3% 2.1% 2.1% $56.522 $90,933 $89,270
Financial Activities 5.0% 4.9% 5.9% $35,020 $45,207 $44,809
Prof. and Bus. Services 13.1% 17.9% 12.8% $45,511 $74,779 $59,659
Educ. and Health Services 15.5% 12.6% 15.1% nd $48,173 $49,003
Leisure and Hosp. Services 8.6% 9.3% 10.0% $16,666 $19,963 $22.683
Other Services 4.5% 5.1% 4.1% $28,318 $38,473 $32,385
Government 14.0% 19.4% 17.3% $59,885 $78,060 $65,178
Sources: Percent of total employment - Moody's Analytics & BLS, 2010; Average annual earnings - BEA, 2008
INTO ROANOKE, VA
NUMBER
OF MIGRANTS
1,068
6361
204
2031
157
801
79
651
54
461
9,717
Lxnchburg, VA
rBlacksburg, VA
Virginia Beach, VA
rRichmOnd, VA
Washington, DC
rGreenSboro, NC
Danville, VA
ICharlotte, NC
Tam[Ja, FL
I Winston , NC
Tota/ln-migration
FROM ROANOKE, VA
Lynchburg, VA
[Blacksburg, VA
Richmond, VA
ICharlotte, NC
Greensboro, NC
~g.!!!NC
Virginia Beach, VA
[iSinville, VA
Washington, DC
[M}'rtle Beach, SC
Total Out-migration
Net Migration
1,023
5251
248
1331
121
941
92
691
68
411
8,906
811
Net Migration, ROA
3,000
2,500 -
2,000 -I
1,500 -
1':~l
o ~
I
10
07
08
09
Domestic
Foreign
Total
2007
2,233
332
2,565
2010
583
183
766
2008
2,091
341
2,432
2009
1,590
211
1,801
Sources: IRS (top), 2008; Census Bureau, 2010
200 NArCS INDUSTRY EMPLOYEES (000)
GVS L State & Local Government 17.5
180 6221 General Medical and Surgical Hospitals 7.1
7221 Full-Service Restaurants 5.0
160 7222 Limited-Service Eating Places 4.6
5511 Management ot Companies and Enterprises 4.6
140 GVF Federal Govemment 4.1
5613 Employment Services 3.7
120 6211 Offices of Physicians 3.1
100 5241 Insurance Carriers 2.9 ~ ~
4451 Grocery Stores 2.9
80 6231 Nursing Care Facilities 2.8
96 99 02 05 08 11 5415 Computer Systems Design and Related SIVCS. 2,5
2382 Building Equipment Contractors 2.5
=ROA = U.S. FR Farms 2.3
Source:FHFA,1996Q1=100,NSA 4521 Department Stores 1,8
High-tech employment
As % of total employment
Sources: BLS, Moody'sAnalytics, 2010
MOODY'SANALYTICS I PrecisU.S.Metro / South / July2011
6.1
3.9
o ROA . VA
o U.S.
Source: Bureau of Economic Analysis, 2008
ROANOKE
Labor Market Signals Mixed in Roanoke
1.0
0.5
0.0
-0.5
-1.0
-1.5
08
Source: BLS
Employment change
3-mo MA, ths (L)
09
10 11
Credit Quality Good in Roanoke
Delinquency rate, % of balances, 3-mo MA, May 2011
Lynchburg
Roanoke
Virginia
Rest of Virginia
Richmond
Virginia Beach
Washington metro div.
U.S.
Sources: Equifax, Moody's Analytics
3.5
4.0
4.5
5.0
5.5
6.0
Costs Are Low in Roanoke...
U.S.=100, 2009
Oanville
Lynchburg
Blacksburg
Roanoke
Harrisonburg
Winchester
Virginia Beach
Charlottesville
Richmond
Washington metro div.
Source: Moody's Analytics
. Cost of living
o Cost of doing business
70
90
110
6.5
130
Manufacturing Is a Support
% change yr ago
10
8
6
4
2
o
-2
-4
-6
-8
-10
-12
10
9
8
7
6
5
4
3
2
1
o
08 09
Sources: BLS, Moody's Analytics
5
o
-5
-10
-15
-20
10
11
More Deleveraging Than in Rest of Virginia
Household liabilities, % change yr ago, Jun 2011
U.S.
-3
-2
-1
o
Roanoke
Richmond
Rest of Virginia
Virginia
Washington metro div.
Virginia Beach
Lynchburg
Sources: Equifax, Moody's Analytics
.. .And Diversity Is High
Diversity, U.S.=1.0, 2010
Harrisonburg
Virginia Beach
Blacksburg
Washington metro div.
Oanville
Charlottesville
Winchester
Lynchburg
Richmond
Roanoke
Virginia
Source: Moody's Analytics
0.2
0.4
0.6
0.8
MOODY'SANALYTlCS / Precis U.S. Metro / South / July2011
About Moody's Analyties
Economic & Consumer Credit Analytics
Moody's Analytics helps capital markets and credit risk management professionals
worldwide respond to an evolving marketplace with confidence. Through its team of
economists, Moody's Analytics is a leading independent provider of data, analysis,
modeling and forecasts on national and regional economies, financial markets, and
credit risk.
Moody's Analytics tracks and analyzes trends in consumer credit and spending, output and income, mortgage activity, popu-
lation, central bank behavior, and prices. Our customized models, concise and timely reports, and one of the largest assembled
financial, economic and demographic databases support firms and policymakers in strategic planning, product and sales fore-
casting, credit risk and sensitivity management, and investment research. Our customers include multinational corporations,
governments at all levels, central banks and financial regulators, retailers, mutual funds, financial institutions, utilities, residen-
tial and commercial real estate firms, insurance companies, and professional investors.
Our web and print periodicals and special publications cover every U.S. state and metropolitan area; countries throughout Eu-
rope, Asia and the Americas; and the world's major cities, plus the U.S. housing market and other industries. From our offices in the
U.S., the United Kingdom, and Australia, we provide up-to-the-minute reporting and analysis on the world's major economies.
Moody's Analytics added Economy.com to its portfolio in 2005. Its economics and consumer credit analytics arm is based in
West Chester PA, a suburb of Philadelphia, with offices in London and Sydney. More information is available at www.economy.com.
If) 2011, Moody's Analytics, Inc. and/or its licensors and affiliates (together, "Moody's"). All rights reserved ALL INFORMATION CONTAINED HEREIN IS
PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER
TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY PURPOSE, IN WHOLE
OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT
All information contained herein is obtained by Moody's from sources believed by it to be accurate and reliable. Because of the possibility of human
and mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. Under no
circumstances shall Moody's have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or
relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of Moody's or any of its directors,
officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or
delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without
limitation, lost profits), even if Moody's is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such
information The financial reporting, analysis, projections, observations, and other information contained herein are, and must be construed solely as,
statements of opinion and not statements of fact or recommendations to purchase, sell, or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED,
ASTOTHE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH OPINION OR
INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each opinion must be weighed solely as one factor
in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own
study and evaluation prior to investing.