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HomeMy WebLinkAboutCouncil Actions 01-04-21ROANOKE CITY COUNCIL ORGANIZATIONAL MEETING JANUARY 4, 2021 2:00 P.M. CITY COUNCIL CHAMBER 215 CHURCH AVENUE, S. W. AGENDA BESTPITCH 41961- 010421 The City of Roanoke is a safe, caring and economically vibrant community in which to live, learn, work, play and prosper A vibrant urban center with strong neighborhoods set amongst the spectacular beauty of Virginia's Blue Ridge 1. Call to Order. 2. Roll Call. All Present. (Council Member Bestpitch participated by electronic means). NOTICE This morning's meeting will be televised live and replayed on RVTV Channel 3 following the 2:00 p.m. session on Thursday, January 7 at 7:00 p.m., and Saturday, January 9 at 4:00 p.m.; and video streamed through Facebook Live at facebook.com /RoanokeVa. Council meetings are offered with closed captioning for the hearing impaired. 3. Statement of Purpose. Mayor Sherman P. Lea, Sr. 4. A report from the City Clerk advising of the qualification of the Honorable Sherman P. Lea, Sr., as Mayor, and the Honorable Patricia White -Boyd, Stephanie Moon Reynolds and Robert L. Jeffrey, Jr., as Members of the Roanoke City Council for terms of four years, each, commencing January 1, 2021, and ending December 31, 2024. Received and filed. 1 5. A Resolution recognizing the Honorable Sherman P. Lea, Sr., to be Mayor of the City of Roanoke. Adopted Resolution No. 41961- 010421. (7 -0) 6. A Resolution recognizing the Honorable Patricia White -Boyd as a member of the City Council and Vice -Mayor of the City of Roanoke. Adopted Resolution No. 41962- 010421. (7 -0) 7. A Resolution recognizing the services of the Honorable Joseph L. Cobb as the Vice -Mayor of the City of Roanoke. Adopted Resolution No. 41963- 010421. (7 -0) 8. A communication from Mayor Sherman P. Lea, Sr., recommending certain committee assignments for the Members of City Council. Concurred in recommendation. 9. A Resolution establishing a meeting schedule for City Council commencing January 1, 2021, and terminating December 31, 2021. Adopted Resolution No. 41964- 010421. (7 -0) 10. Presentation of 2020 Investiture Ceremonies Compilation Video. Received and filed. 11. Adjournment - 2:32 p.m. 2 ROANOKE CITY COUNCIL REGULAR SESSION JANUARY 4, 2021 IMMEDIATELY FOLLOWING ORGANIZATIONAL MEETING CITY COUNCIL CHAMBER 215 CHURCH AVENUE, S. W. AGENDA The City of Roanoke is a safe, caring and economically vibrant community in which to live, learn, work, play and prosper A vibrant urban center with strong neighborhoods set amongst the spectacular beauty of Virginia's Blue Ridge 1. Call to Order - -Roll Call. All Present. (Council Member Bestpitch participated by electronic means). The Invocation was delivered by Mayor Sherman P. Lea, Sr. The Pledge of Allegiance to the Flag of the United States of America was led by Mayor Lea. Welcome. Mayor Lea. NOTICE: This afternoon's Council meeting will be televised live and replayed on RVTV Channel 3 on Thursday, January 7 at 7:00 p.m., and Saturday, January 9 at 4:00 p.m.; and video streamed through Facebook Live at facebook.com /RoanokeVa. Council meetings are offered with closed captioning for the hearing impaired. 3 ANNOUNCEMENTS: The Council of the City of Roanoke is seeking applications for the following current vacancies and /or upcoming expirations of terms of office: Fair Housing Board — one vacancy Board of Zoning Appeals — one vacancy Towing Advisory Board — one vacancy (Citizen at- large) Access the City's homepage to complete an online application for the abovementioned vacancies. Expiration of the three -year terms of office of Laura Day Rottenborn, Mark K. Cathey and Richard M. Willis, Jr. (not eligible for reappointment), as Trustees of the Roanoke City School Board ending June 30, 2021. Inasmuch as Mr. Willis will have served three consecutive terms of office, he is ineligible for reappointment. Information pertaining to the School Board duties and copies of application for appointment are available on the City's website www.roanokeva.goy and in the City Clerk's Office. Deadline for receipt of applications is Wednesday, March 10, 2021, at 5:00 p.m., in the City Clerk's Office. For questions and /or additional information, contact the City Clerk's Office at (540) 853 - 2541, or by email at clerk(&-roanokva.gov. 2. PRESENTATIONS AND ACKNOWLEDGEMENTS: Recognition of City employees with 30, 35 and 40 years of service. Mayor Lea recognized the service of employees with 30 - 40 years of service with the City of Roanoke. 3. HEARING OF CITIZENS UPON PUBLIC MATTERS: City Council sets this time as a priority for citizens to be heard. If deemed appropriate, matters will be referred to the City Manager for response, recommendation or report to the Council. None. Due to the recent increase and severity in COVID -19 cases in the City of Roanoke, out of an abundance of caution, the Roanoke City Council has determined that temporary changes are necessary. Roanoke City Council Members will continue to meet in person in City Council Chamber, M observing all recommended safety protocols while members of the community wishing to address the City Council during Hearing of Citizens Upon Public Matters are required to participate virtually or via email by contacting the City Clerk's Office at clerk( -)roanokeva.gov and (540) 853- 2541, by 12:00 p.m., on January 4. The Council Chamber will not be accessible to the general public during the meeting. The meeting will continue to be broadcast via RVTV -3 and on the City's Facebook account. 4. 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. C -1 A communication from Mayor Sherman P. Lea, Sr., 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. RECOMMENDED ACTION: Concurred in the request. C -2 A communication from the City Manager requesting that Council schedule a public hearing to be held on Tuesday, January 19, 2021, at 7:00 p.m., or as soon thereafter as the matter may be heard, or such later date and time as the City Manager shall determine, in his discretion, for renewal of lease of space to the Orvis Company, Inc. RECOMMENDED ACTION: Concurred in the request. C -3 A communication from the City Manager requesting that Council schedule a public hearing to be held on Tuesday, January 19, 2021, at 7:00 p.m., or as soon thereafter as the matter may be heard, or such later date and time as the City Manager shall determine, in his discretion, to consider the vacation of the two existing 15 foot public utility easements to Freedom First Credit Union. RECOMMENDED ACTION: Concurred in the request. C -4 A communication from the City Attorney requesting that Council schedule a public hearing to be held on Tuesday, January 19, 2021, at 7:00 p.m., or as soon thereafter as the matter may be heard, or such later date and time as the City Manager shall determine, in his discretion, to receive citizen comment with regard to restrictions on firearms in municipal facilities. RECOMMENDED ACTION: Concurred in the request. C -5 Comprehensive Annual Financial Report (CAFR) of the Western Virginia Water Authority for Fiscal Year 2020. RECOMMENDED ACTION: Received and filed. C -6 Reports of qualification of Rosheta Chase as a member of the Roanoke Neighborhood Advocates to fill the unexpired term of office of Katelynn Lewis ending September 30, 2021; and Pamela Smith as a member (Citizen -at- Large /Medical) of the Youth Services Citizen Board for a term of office ending June 30, 2023. RECOMMENDED ACTION: Received and filed. 5. PUBLIC HEARINGS: NONE. 6. PETITIONS AND COMMUNICATIONS: NONE. 7. REPORTS OF CITY OFFICERS AND COMMENTS OF THE CITY MANAGER: a. CITY MANAGER: BRIEFINGS: • Budget/Financial Planning FY 22/ - 30 minutes General Real Estate Reassessment Received and filed. ITEMS RECOMMENDED FOR ACTION: 1. Acceptance of the Fiscal Year 2020 Coronavirus Aid, Relief, and Economic Security Act — Provider Relief Funds allocated for eligible providers who bill for Medicare fee - for - service. Adopted Resolution No. 41965- 010421 and Budget Ordinance No. 41966-010421. (7 -0) C:1 2. Acceptance of "pass through" funds from the Virginia Department of Emergency Management to reimburse the Hazardous Materials Response Team. Adopted Resolution No. 41967- 010421 and Budget Ordinance No. 41968-010421. (7 -0) 3. Execution of Amendment No. 2 to the Agreement for Purchase and Sale of Real Property located at 23 Centre Avenue, N. W. Adopted Ordinance No. 41969- 010421. (7 -0) COMMENTS OF THE CITY MANAGER. The City Manager offered the following comments: COVID -19 Vaccine Information • The Community Engagement Office has created a new page on the City's website, emphasizing the "Vaccinate Roanoke" message. • The page includes information from local and state health partners about the COVID -19 vaccine, including its development process, vaccination efforts, answers to questions about the vaccine, and more. • Citizens may check out this page at roanokeva.gov /VaccinateRoanoke. 2021 Solid Waste Collection Guide • In early January, residents will receive the "2021 Solid Waste Collection and Hazardous Weather Preparation Guide" in their mailbox. • This guide is a great resource for understanding what is collected for solid waste, recycling, bulk, and brush. • It also contains information about the City's snow removal process, flood preparedness, and the 2021 recycling calendar. • In addition to printed copies, the guide is posted on the City's website homepage — roanokeva.gov, under "Important Resources" — and on the Solid Waste Management Division's website — roanokeva.gov /SolidWaste. 7 Roanoke 100 Miler • There is still time to sign up for this year's Roanoke 100 Miler challenge. • The challenge runs from Jan. 19, 2021 to April 19, 2021. Participants must commit to complete 100 miles in 100 days. • This is one of Roanoke's favorite fitness traditions, and a great way to learn more about the parks, trails, and greenways in our area. • Go to PLAYRoanoke.com /Roanoke- 100 -Miler to register for this event. 8. REPORTS OF COMMITTEES: NONE. 9. UNFINISHED BUSINESS: NONE. 10. INTRODUCTION AND CONSIDERATION OF ORDINANCES AND RESOLUTIONS: a. Repeal and replace Ordinance No. 41946- 122120 adopted December 21, 2020, authorizing and approving a one -time payment in appreciation to certain full -time and part -time City employees. Adopted Ordinance No. 41970 - 010421. (7 -0) 11. MOTIONS AND MISCELLANEOUS BUSINESS: a. Inquiries and /or comments by the Mayor and Members of City Council. Council Member Moon - Reynolds recommended that Council honor the late Dr. Wendell H. Butler, a former Vice -Mayor and City Council Member and first African American Council Member appointed to serve as Chairman of Roanoke City School Board, who passed on November 5, 2020, with a Memorial Resolution from the Mayor and City Council at the January 19, 2021 Council Meeting. b. Vacancies on certain authorities, boards, commissions and committees appointed by Council. See below. At 3:50 p.m., Mayor Lea declared the Council Meeting in recess for a Closed Meeting in the Council's Conference Room, Room 450, fourth floor, Noel C. Taylor Municipal Building. At 4:35 p.m., the Council Meeting reconvened with Mayor Lea presiding and all Members of the Council in attendance, with Council Member Bestpitch participating by electronic means. CERTIFICATION OF CLOSED MEETING. (7 -0) Appointed Betty Jean Wolfe to fill the unexpired term of office of Marcus Huffman as a member of the Board of Zoning Appeals ending December 31, 2021. Appointed Laura Carini to replace Kenneth Cronin as a Citizen member of the City of Roanoke Finance Board for a term of office ending June 30, 2022. Reappointed Cindy McFall as a member of the Local Office on Aging Advisory Board for a one -year term of office, commencing March 1, 2021, and ending February 28, 2022. Reappointed John R. Clements as a City representative of the Roanoke Regional Airport Commission for a four -year term of office, commencing March 10, 2021 and ending March 9, 2025. 12. ADJOURNED - 4:38 P.M. 0 CECELIA F. MCCOV, CMC City 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: clerk@roanokeva.gov January 4, 2021 The Honorable Mayor and Members of the Roanoke City Council Roanoke, Virginia Dear Mayor Lea and Members of Council: CECELIA T. WEBB, CMC Deputy City Clerk I am attaching copy of the Roanoke City Electoral Board Abstract of votes cast in the General Election held in the City of Roanoke on Tuesday, November 3, 2020, certifying that Sherman P. Lea, Sr., Patricia White -Boyd, Stephanie Moon Reynolds and Robert L. Jeffrey, Jr., received the largest number of votes for Members of City Council. Oaths of Office were administered on Thursday, December 3, 2020 and Friday, December 4, 2020, by the Honorable Judges of the Twenty -Third Judicial Circuit, as follows: Sherman P. Lea, Sr., as Mayor for a term commencing January 1, 2021 and ending December 31, 2024; Patricia White -Boyd as a Member of Council for a term commencing January 1, 2021 and ending December 31, 2024; and as Vice -Mayor for a term commencing January 1, 2021 and ending December 31, 2022; Stephanie Moon Reynolds as a Member of Council for a term commencing January 1, 2021 and ending December 31, 2024; and Robert L. Jeffrey, Jr., as a Member of Council for a term commencing January 1, 2021 and ending December 31, 2024. Sincerely, Cecelia F. McCoy, CMC City Clerk Attachment ABSTRACT of VOTES Cast in ROANOKE CITY, VIRGINIA at the 2020 November General Election held on November 03, 2020 for, Mayor NAMES OF CANDIDATES ON THE BALLOT Sherman P. Lea Sr. David A. Bowers Total Write -In votes [From Write -Ins Certifications] [Valid Write -Ins + Invalid Write—ins = Total Write In Votes] Total Number of Overvotes for Office TOTAL VOTES RECEIVED (IN FIGURES) 21552 19247 379 rel We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 03, 2020, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Mayor. Given under our hands this Sherman P. Lea Sr. day of 11�►1 ��`" , Chairman , Vice Chairman , Secretary , Acting Secretary ABSTRACT of VOTES Cast in ROANOKE CITY, VIRGINIA at the 2020 November General Election held on November 03, 2020 for, Member City Council NAMES OF CANDIDATES ON THE BALLOT Trish A. White -Boyd Robert L. Jeffrey Jr. Stephanie M. Moon M. E. "Peg" McGuire Peter J. Volosin Kiesha N. Preston Maynard L. Keller Jr. Cesar J. Alberto Total Write -In votes [From Write -Ins Certifications] [Valid Write -ins + Invalid Write—ins = Total Write In Votes] Total Number of Overvotes for Office TOTAL VOTES RECEIVED (IN FIGURES) 21892 13188 12857 11268 10547 9953 9127 3900 458 L] We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 03, 2020, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member City Council. Given under our hands 1. Trish A. White -Boyd 2. Robert L. Jeffrey Jr. 3. Stephanie M. Moon JA , Chairman , Vice Chairman , Secretary , Acting Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Sherman P. Lea, Sr., 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 Mayor of the City of Roanoke, Virginia, for a term of four years commencing January 1, 2021 and ending December 31, 2024, according to the best of my ability (So help me God). SHERMAN P. LEA, SR. The foregoing oath of office was taken, sworn to, and subscribed before me by Sherman P. Lea, Sr., this third day of December 2020. e of the T enty -Third Judicial Circuit Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Patricia White -Boyd, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a Member of the Council of the City of Roanoke, Virginia, for a term of four years commencing January 1, 2021 and ending December 31, 2024; and as Vice -Mayor of the City of Roanoke, Virginia, for a term of two years commencing January 1, 2021 and ending December 31, 2022, according to the best of my ability (So help me God). PATRICIA WHITE -BOYD The foregoing oath of office was taken, sworn to, and subscribed before me by Patricia White -Boyd this fourth day of December 2020. of the Ajwenty -Third Judicial Circuit Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Stephanie Miranda Moon (also known as Stephanie Moon Reynolds), 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 Council of the City of Roanoke, Virginia, for a term of four years commencing January 1, 2021 and ending December 31, 2024, according to the best of my ability (So help me God). STEPHANIE MIRANDA MO N The foregoing oath of office was taken, sworn to, and subscribed before me by Stephanie Miranda Moon this third day of December 2020. udge of th Twenty -Third Judicial Circuit Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Robert L. Jeffrey, Jr., do solemnly swearthat 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 Council of the City of Roanoke, Virginia, for a term of four years commencing January 1, 2021 and ending December 31, 2024, according to the best of my ability (So help me God). i �/ • : /, ' 4V The foregoing oath of office was taken, sworn to, and subscribed before me by Robert L. Jeffrey, Jr., this fourth day of December 2020. ge of the enty -Third Ju icial Circuit SHERMAN P. LEA, SR. Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE, S.W., SUITE 452 ROANOKE, VIRGINIA 24011-1594 TELEPHONE: (540) 853 -2444 FAX: (540) 853 -1145 EMAIL: MAYOR ruROANOKEVA.GOV January 4, 2021 The Honorable Patricia White -Boyd, Vice -Mayor The Honorable William D. Bestpitch, Council Member The Honorable Joseph L. Cobb, Council Member The Honorable Robert L. Jeffrey, Jr., Council Member The Honorable Stephanie Moon Reynolds, Council Member The Honorable Vivian Sanchez - Jones, Council Member Subject: Council Committee Assignments Ladies and Gentlemen: I ask that Council concur in the appointments /reappointments as set forth below: • Personnel Committee: Composed of the seven Members of Council. Vice -Mayor Trish White -Boyd as Chair and Council Member Joe Cobb as Vice - Chair. • Greater Roanoke Transit Company: Board of Directors — Composed of two Members of Council -- Council Member Joe Cobb as Director and Council Member Vivian Sanchez -Jones as Director. • Audit Committee: Composed of at least three Members of the Council -- Council Member Joe Cobb as Chair, Vice -Mayor Trish White -Boyd as Vice - Chair, and Council Member Bestpitch as third member. • Equity and Empowerment Advisory Board: Two Council Representatives -- Vice -Mayor Trish White -Boyd and Council Member Bill Bestpitch. • Roanoke Redevelopment and Housing Authority: Board of Commissioners Council Liaisons -- Liaison Council Member Stephanie Moon Reynolds and Council Member Vivian Sanchez - Jones, as Alternate Liaison. The Honorable Vice -Mayor Patricia White -Boyd and Members of Roanoke City Council January 4, 2021 Page 2 • Roanoke Valley - Alleghany Regional Commission: Three Elected Official representatives are Council Members Stephanie Moon Reynolds, Robert Jeffrey and Bill Bestpitch. • Total Action for Progress Board of Directors: Council Representative -- Council Member Vivian Sanchez - Jones. • Roanoke Valley Regional Cable Television Committee: Council Representative -- Council Member Robert Jeffrey. • Legislative Committee: Composed of all Members of Council: Council Member Bill Bestpitch as Chairman and Council Member Stephanie Moon Reynolds as Vice - Chair. • Virginia's First Regional Industrial Facilities Authority: Elected Official Representative -- Council Member Stephanie Moon Reynolds and Alternate Representative Council Member Robert Jeffrey. • Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee: Two Elected Official Representatives -- Council Member Vivian Sanchez -Jones and Council Member Joe Cobb. • Roanoke Valley Area Transportation Planning Organization: Two Elected Official Representatives -- Council Member Robert Jeffrey and Council Member Stephanie Moon Reynolds. • Hotel Roanoke Conference Center Commission: Council Representative -- Mayor Sherman Lea. • Virginia Municipal League Environmental Quality Policy Committee: Council Member Robert Jeffrey and Christopher Blakeman, Environmental Manager as the Staff Representative. • Virginia Municipal League Human Development and Education Policy Committee: Council Member Joe Cobb and Council Member Stephanie Moon Reynolds as the Elected Official representatives. • Virginia Municipal League General Laws Committee: Council Member Bill Bestpitch as the Elected Official representative and Timothy Spencer, City Attorney, as Staff Representative. The Honorable Vice -Mayor Patricia White -Boyd and Members of Roanoke City Council January 4, 2021 Page 3 • Virginia Municipal League Transportation Policy Committee: Council Member Vivian Sanchez -Jones and Dwayne D'Ardenne, Transportation Manager, as the Staff Representative. • Virginia Municipal League Community and Economic Development Policy Committee: Council Member Stephanie Moon Reynolds. • Virginia Municipal League Finance Policy Committee: Vice -Mayor Trish White - Boyd as the Elected Official Representative and Amelia Merchant, Director of Finance, as the Staff Representative. • National Civic League Board of Directors: (NCL will make recommendation.) • Virginia Municipal League Legislative Committee: Mayor Sherman P. Lea, Sr. as the Elected Official Representative. Sincerely, Sherman P. Lea, Sr. Mayor SPL:cfm CECELIA F. NICCOY, CHIC City 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 -1145E -mail: clerk C;roanokeva.gov January 5, 2021 The Honorable Patricia White -Boyd Vice -Mayor Roanoke, Virginia Dear Vice -Mayor White -Boyd: CECELIA T. WEBB, CNIC Deputy CitN Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Chair of the Roanoke City Council Personnel Committee for a two -year term of office ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Si V�dj Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, PATRICIA WHITE -BOYD was appointed as the Chair of the Roanoke City Council Personnel Committee for a two -year term of office ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January 1��_e.� .�- V�&dj City Clerk CECELIA F. 67CCOY, CHIC City 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- 1145E -mail• clerk( roanokeva.gov January 5, 2021 The Honorable Joseph L. Cobb Council Member Roanoke, Virginia Dear Council Member Cobb: CECELIA T. WEBB, ChIC Deput} City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Vice -Chair of the Roanoke City Council Personnel Committee for a two -year term of office ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) CITY OF ROANOKE ) To -wit: I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, JOSEPH L. COBB was appointed as the Vice -Chair of the Roanoke City Council Personnel Committee for a two -year term of office ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOY, CMC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Joseph L. Cobb Council Member Roanoke, Virginia Dear Council Member Cobb: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as Director of the Greater Roanoke Transit Company, Board of Directors, to fill the unexpired term of Anita J. Price for a term ending June 30, 2021. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as Director of the Greater Roanoke Transit Company, Board of Directors. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures COMMONWEALTH OF VIRGINIA ) CITY OF ROANOKE ) To -wit: I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a organizational meeting of Council which was held on the fourth day of January 2021, JOSEPH L. COBB was appointed to serve as Director of the Greater Roanoke Transit Company, Board of Directors, to fill the unexpired term of Anita J. Price for a term ending June 30, 2021. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. 6'4.e� 11.�. lou&�t City Clerk CECELIA F. MCCOY, CMC City 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- 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Vivian Sanchez -Jones Council Member Roanoke, Virginia Dear Council Member Sanchez - Jones: CECELIA T_ WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as Director of the Greater Roanoke Transit Company, Board of Directors, to fill the unexpired term of Michelle L. Davis for a term ending June 30, 2021. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as Director of the Greater Roanoke Transit Company, Board of Directors. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a organizational meeting of Council which was held on the fourth day of January 2021, VIVIAN SANCHEZ -JONES was appointed to serve as Director of the Greater Roanoke Transit Company, Board of Directors, to fill the unexpired term of Michelle L. Davis for a term ending June 30, 2021. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. NICCOY, CHIC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Suite 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fat: (540) 853 -1145E -mail: clerkCxoanokeva.gov January 5, 2021 The Honorable Joseph L. Cobb Council Member Roanoke, Virginia Dear Council Member Cobb: CECELIA T. WEBB, CHIC Deputy Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Chair of the Roanoke City Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Si erely, Cecelia F. McCoy, CIVIC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, JOSEPH L. COBB was appointed as the Chair of the Roanoke City Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January ��444" V�&dj City Clerk CECELIA F. MCCOY, CMC City 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- 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Patricia White -Boyd Vice -Mayor Roanoke, Virginia Dear Vice -Mayor White -Boyd: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Vice -Chair of the Roanoke City Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, 6X"e,� :0&, t-. " Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, PATRICIA WHITE -BOYD was appointed as the Vice -Chair of the Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOti, CNIC City 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 -1145E -mail: clerkCroanokeva.gov January 5, 2021 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: CECELIA T. NVEBB, CMC Depute Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as a member of the Roanoke City Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." C_e. � J7 WU&I Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) } To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, WILLIAM D. BESTPITCH was appointed as a member of the Roanoke City Audit Committee for a two -year term of office commencing January 1, 2021 and ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January 4�444&� J-. V?&&l City Clerk CECELIA F. NICCOY, CHIC Cite 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 -1145E -mail: clerkCa roanokeva.gov January 5, 2021 The Honorable Patricia White -Boyd Vice -Mayor Roanoke, Virginia Dear Vice -Mayor White -Boyd: CECELIA T. wEBB, CHIC Depute Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as a member of the Equity and Empowerment Advisory Board for a term ending December 31, 2024. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, _uz� J- V?U&j Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, PATRICIA WHITE -BOYD was appointed to serve as a member of the Equity and Empowerment Advisory Board for a term ending December 31, 2024. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. NICCOY, CRIC CUN 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 -1145E -mail: clerkCroanokeva.gov January 5, 2021 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: CECELIA T. NN EBB, ChIC Deputy Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as a member of the Equity and Empowerment Advisory Board for a term ending December 31, 2022. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincere J-. V?U&l Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, WILLIAM D. BESTPITCH was appointed to serve as a member of the Equity and Empowerment Advisory Board for a term ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOY, CMC City 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 - 1145E -mail: clerkCa roanokeva.gov January 5, 2021 David Bustamante, Executive Director Roanoke Redevelopment and Housing Authority 2624 Salem Turnpike, N. W. Roanoke, Virginia 24017 Dear Mr. Bustamante: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, Council Member Stephanie Moon Reynolds was appointed as the Council Liaison, and Council Member Vivian Sanchez -Jones as the Alternate to the Roanoke Redevelopment and Housing Authority Board of Commissioners. Sincerely, Cecelia F. McCoy, CMC City Clerk pc: The Honorable Stephanie M. Moon Reynolds, Council Member The Honorable Vivian Sanchez - Jones, Council Member CECELIA F. MCCOY, CMC City 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- 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Stephanie M. Moon Reynolds Council Member Roanoke, Virginia Dear Council Member Moon Reynolds: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as an Elected Official representative to the Roanoke Valley - Alleghany Regional Commission to fill the unexpired term of Djuna L. Osborne for a term of office ending June 30, 2021; and for a three -year term commencing July 1, 2021 and ending June 30, 2024. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a City Council representative to the Roanoke Valley - Alleghany Regional Commission. Sincerely, V) Kit, Cecelia F. McCoy, CMC City Clerk Enclosures c: Wayne G. Strickland, Executive Director, Roanoke Valley Alleghany Regional Commission, P. O. Box 2569, Roanoke, Virginia 24010 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at the organizational meeting of Council which was held on the fourth day of January 2021, STEPHANIE M. MOON REYNOLDS was appointed to serve as an Elected Official representative to the Roanoke Valley - Alleghany Regional Commission to fill the unexpired term of Djuna L. Osborne for a term of office ending June 30, 2021; and for a three -year term commencing July 1, 2021 and ending June 30, 2024. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. MCCOY, CMC City 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- 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Robert L Council Member Roanoke, Virginia Jeffrey, Jr. Dear Council Member Jeffrey: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as an Elected Official representative to the Roanoke Valley - Alleghany Regional Commission to replace Joseph L. Cobb for a term of office ending June 30, 2023. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a City Council representative to the Roanoke Valley - Alleghany Regional Commission. Sincerely, e.e.,e.z� ,-. V,►Udj Cecelia F. McCoy, CMC City Clerk Enclosures c: Wayne G. Strickland, Executive Director, Roanoke Valley Alleghany Regional Commission, P. O. Box 2569, Roanoke, Virginia 24010 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at the organizational meeting of Council which was held on the fourth day of January 2021, ROBERT L. JEFFREY, JR., was appointed to serve as an Elected Official representative to the Roanoke Valley- Alleghany Regional Commission to replace Joseph L. Cobb for a term of office ending June 30, 2023. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. NICCOY, CHIC City Clerk Vivian Sanchez -Jones Council Member Roanoke, Virginia 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 -1145E -mail: elerkC roanokeva.gov January 5, 2021 Dear Council Member Sanchez - Jones: CECELIA T. NVEBB, CNIC Deputy CUN Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, Vivian Sanchez -Jones was appointed to replace Joseph L. Cobb as the City Council representative of the Total Action for Progress, Board of Directors for a term of office commencing January 1, 2021 and ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sipcerely, 4f.e,� Yid j Cecelia F. McCoy, CMC City Clerk Attachment pc: Annette Lewis, President and CEO, Total Action for Progress, 302 Second Street, S. W., Roanoke, Virginia 24011 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, VIVIAN SANCHEZ -JONES was appointed as the City Council representative of the Total Action for Progress, Board of Directors for a term of office commencing January 1, 2021 and ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOY, CMC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Robert L. Jeffrey, Jr. Council Member Roanoke, Virginia Dear Council Member Jeffrey: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to replace Djuna L. Osborne as the City Council representative to the Roanoke Valley Regional Cable Television Committee, commencing January 1, 2021. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as the City Council representative to the Roanoke Valley Regional Cable Television Committee. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures c: Amy Whittaker, Chair, Roanoke Valley Regional Cable Television, 541 Luck Avenue, S. W., Suite 145, Roanoke, Virginia 24016 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, ROBERT L. JEFFREY, JR., was appointed to replace Djuna L. Osborne as the City Council representative to the Roanoke Valley Regional Cable Television Committee commencing January 1, 2021. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. �4'64" '.�. (oU&I City Clerk CECELIA F. hICCOY, CHIC City 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 -1145E -mail: clerkCa roanokeva.goy January 5, 2021 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: CECELIA T. NVEBB, CHIC Deputy Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Chairman of the Roanoke City Legislative Committee for a two -year term of office ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." � cerely, • Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, WILLIAM D. BESTPITCH was appointed as the Chairman of the Legislative Committee for a two -year term of office ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. h9CCOY, CHIC City 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 -1145E -mail: clerkCroanokeva.goN January 5, 2021 The Honorable Stephanie M. Moon Reynolds Council Member Roanoke, Virginia Dear Council Member Moon Reynolds: CECELIA T. NVEBB, ChIC Deputy GO, Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as the Vice -Chair of the Roanoke City Legislative Committee for a two -year term of office ending December 31, 2022. Attached you will find a copy of a Certificate regarding your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I also am attaching copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Cecelia F. McCoy, CMC City Clerk Attachment COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, STEPHANIE M. MOON REYNOLDS was appointed as the Vice -Chair of the Roanoke City Legislative Committee for a two -year term of office ending December 31, 2022. 2021. Give under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOY, CMC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Stephanie M. Moon Reynolds Council Member Roanoke, Virginia Dear Council Member Moon Reynolds: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as an Elected Official representative to the Virginia's First Regional Industrial Facilities Authority to fill the unexpired term of former Djuna L. Osborne for a term of office ending June 30, 2024. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as an Elected Official representative to the Virginia's First Regional Industrial Facilities Authority. Sincerely, e444e� WU&I Cecelia F. McCoy, CMC City Clerk Enclosures c: Christy Straight, Regional Planner II. Virginia's First Regional Industrial Facility Authority, 6580 Valley Center Drive, Suite 124, Radford, Virginia 24141 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a organizational meeting of Council which was held on the fourth day of January 2021, STEPHANIE M. MOON REYNOLDS was appointed to serve as an Elected Official representative to the Virginia's First Regional Industrial Facilities Authority to fill the unexpired term of Djuna L. Osborne for a term of office ending June 30, 2024. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. MCCOY, CMC City 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- 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Robert L. Jeffrey, Jr. Council Member Roanoke, Virginia Dear Council Member Jeffrey: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as an Elected Official representative (Alternate) to the Virginia's First Regional Industrial Facilities Authority to replace Anita J. Price for a term of office ending June 30, 2024. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as an Elected Official representative (Alternate) to the Virginia's First Regional Industrial Facilities Authority. Sincerely, �zeze ire .� V �&&j Cecelia F. McCoy, CMC City Clerk Enclosures c: Christy Straight, Regional Planner II. Virginia's First Regional Industrial Facility Authority, 6580 Valley Center Drive, Suite 124, Radford, Virginia 24141 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a organizational meeting of Council which was held on the fourth day of January 2021, ROBERT L. JEFFREY, JR., was appointed to serve as an Elected Official representative (Alternate) to the Virginia's First Regional Industrial Facilities Authority to replace Anita J. Price for a term of office ending June 30, 2024. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. MCCOY, CMC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Vivian Sanchez -Jones Council Member Roanoke, Virginia Dear Council Member Sanchez - Jones: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve as an Elected Official representative to the Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee to fill the unexpired term of office of Patricia White -Boyd ending March 31, 2023. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as an Elected Official representative to the Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures c: Wayne G. Strickland, Executive Director, Roanoke Valley Alleghany Regional Commission, P. O. Box 2569, Roanoke, Virginia 24010 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, VIVIAN SANCHEZ -JONES was appointed to serve as an Elected Official representative to the Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee to fill the unexpired term of office of Patricia White -Boyd ending March 31, 2023. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. City Clerk CECELIA F. MCCOY, CIVIC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Robert L. Jeffrey, Jr. Council Member Roanoke, Virginia Dear Council Member Jeffrey: CECELIA T. WEBB, CIVIC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization to replace William D. Bestpitch for a term ending June 30, 2023. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization. Sincerely, 0 . e — V?U&l Cecelia F. McCoy, CMC City Clerk Enclosures c: Wayne G. Strickland, Executive Director, Roanoke Valley Alleghany Regional Commission, P. O. Box 2569, Roanoke, Virginia 24010 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, ROBERT L. JEFFREY, JR., was appointed as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization to replace William D. Bestpitch for a term ending June 30, 2023. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. ez";t' "�. "'e'dj City Clerk CECELIA F. MCCOY, CIVIC City 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 - 1145E -mail: clerk @roanokeva.gov January 5, 2021 The Honorable Stephanie Moon Reynolds Council Member Roanoke, Virginia Dear Council Member Moon Reynolds: CECELIA T. WEBB, CIVIC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization to replace Joseph L. Cobb for a term ending June 30, 2023. Inasmuch as an Oath or Affirmation of Office was administered to you as an Elected Official, it is not necessary for another Oath to be administered. Please find enclosed a Certificate of your appointment. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures c: Wayne G. Strickland, Executive Director, Roanoke Valley Alleghany Regional Commission, P. O. Box 2569, Roanoke, Virginia 24010 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at an organizational meeting of Council which was held on the fourth day of January 2021, STEPHANIE MOON REYNOLDS was appointed as an Elected Official representative to the Roanoke Valley Area Transportation Planning Organization to replace Joseph L. Cobb for a term ending June 30, 2023. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. 644&'�' J.- City Clerk CECELIA F. MCCOY, CMC City 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 -1145E -mail: clerkCroanokeva.go% January 5, 2021 Janet Areson, Director of Policy Development Virginia Municipal League 13 East Franklin Street Richmond, Virginia 23219 Dear Ms. Areson: CECELIA T. WEBB, CMC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, the following appointments were made to the VML Policy Committees for one -year terms of office, respectively, commencing July 1, 2021: • Virginia Municipal League Environmental Quality Policy Committee: (Council Member Robert L. Jeffrey, Jr., Elected Official representative; and Christopher Blakeman, Environmental Manager as the Staff Representative). • Virginia Municipal League Human Development and Education Policy Committee: (Council Member Joseph L. Cobb and Council Member Stephanie M. Moon Reynolds as Elected Official representatives, respectively). • Virginia Municipal League General Laws Committee: (Council Member William D. Bestpitch as the Elected Official representative; and Timothy Spencer, City Attorney as Staff Representative). • Virginia Municipal League Transportation Policy Committee: (Council Member Vivian Sanchez -Jones as the Elected Official representative; and Dwayne D'Ardenne, Transportation Manager as the Staff Representative). • Virginia Municipal League Community and Economic Development Policy Committee: (Council Member Stephanie M. Moon Reynolds as the Elected Official representative). Virginia Municipal League Finance Policy Committee: (Vice -Mayor Patricia White -Boyd as the Elected Official Representative; and Amelia C. Merchant, Director of Finance as the Staff Representative). Virginia Municipal League Legislative Committee: Appointments made by the Executive Director, pursuant to Legislative Committee policy. Let me know if you should have questions or desire additional information. Sincerely, Cecelia F. McCoy, CMC City Clerk pc: The Honorable Sherman P. Lea, Sr., Mayor The Honorable Patricia White -Boyd, Vice -Mayor The Honorable William D. Bestpitch, Council Member The Honorable Joseph L. Cobb, Council Member The Honorable Robert L. Jeffrey, Jr., Council Member The Honorable Stephanie M. Moon Reynolds, Council Member The Honorable Vivian Sanchez - Jones, Council Member IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41961- 010421. A RESOLUTION recognizing the Honorable Sherman P. Lea, Sr., as Mayor of the City of Roanoke. WHEREAS, the Honorable Sherman P. Lea, Sr., was elected Mayor for a four -year term, which will commenced January 1, 2021, at the regular Councilmanic election held on the first Tuesday in November, 2020. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that the Honorable Sherman P. Lea, Sr., be, and he is, hereby recognized to be a duly elected Mayor of the City of Roanoke for a term commencing on the 1St day of January, 2021, and continuing for a period of four years, and until his successor shall have been elected and qualified. ATTEST: City Clerk. 61� IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41962 - 010421. A RESOLUTION recognizing the Honorable Patricia White -Boyd to be a member of the City Council and Vice -Mayor of the City of Roanoke. WHEREAS, the Honorable Patricia White -Boyd received the largest number of votes of any candidate running for City Council in the regular Councilmanic election held on the first Tuesday in November, 2020, and was, therefore, elected Vice -Mayor of the City for a two -year term, which commenced as of January 1, 2021, as provided by §4 of the Charter of the City of Roanoke. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke that the Honorable Patricia White -Boyd be, and is, hereby recognized to be a duly elected member of the Council of said City for a term commencing on the 1St day of January, 2021, and continuing for a period of four years, and until her successor shall have been elected and qualified, and to be the duly elected Vice -Mayor of the City for a term commencing January 1, 2021, and continuing for a period of two years and until her successor shall have been elected and qualified. ATTEST: City Clerk. IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41963- 010421. A RESOLUTION paying tribute to the Honorable Joseph L. Cobb and expressing to him the appreciation of the City and its people for his exemplary public service as the Vice -Mayor of the City of Roanoke. WHEREAS, Joseph L. Cobb was elected as Vice -Mayor in May 2018; and WHEREAS, Joseph L. Cobb has worked diligently for the citizens of the City of Roanoke during the past two -years as Vice - Mayor. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1 Council adopts this Resolution as a means of recognizing and commending the many services rendered to the City of Roanoke and its people by the Honorable Joseph L. Cobb, as Vice -Mayor 2. The City Clerk is directed to forward an attested copy of this Resolution to the Honorable Joseph L. Cobb. ATTEST: (2 0 City Clerk. CECELIA F. h1CCOY, ChIC City 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- 1145E -mail: clerkC roanokeva.gov January 6, 2021 The Honorable Sherman P. Lea, Sr. Mayor Roanoke, Virginia Dear Mr. Lea: CECELIA T. WEBB, Ch1C Deputy Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Hotel Roanoke Conference Center Commission: Council Representative Mayor Sherman Lea. Virginia Municipal League Legislative Committee: Mayor Sherman Lea as the Elected Official Representative. Let me know if you should have additional questions or desire additional information. Sincerely, Cecelia F. McCoy, CMC City Clerk CECELIA F. NICCOY, CHIC Citv 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 -1145E -mail: clerkCaroanokeva.gov January 6, 2021 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Mr. Bestpitch: CECELIA T. WEBB, CHIC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Audit Committee: Composed of at least three Members of the Council - Council Member Joe Cobb as Chair, Vice -Mayor Trish White -Boyd as Vice - Chair, and Council Member Bestpitch as third member. Equity and Empowerment Advisory Board: Two Council Representatives - Vice -Mayor Trish White -Boyd and Council Member Bill Bestpitch. Roanoke Valley - Alleghany Regional Commission: Three Elected Official representatives are Council Members Stephanie Moon Reynolds, Robert Jeffrey and Bill Bestpitch. Legislative Committee: Composed of all Members of Council: Council Member Bill Bestpitch as Chairman and Council Member Stephanie Moon Reynolds as Vice - Chair. Virginia Municipal League General Laws Committee: Council Member Bill Bestpitch as the Elected Official representative and Timothy Spencer, City Attorney, as Staff Representative. Let me know if you should have additional questions or desire additional information. Sincerely, '4% YN4 041- Cecelia F. McCoy, CMC City Clerk CECELIA F. hICCOY, CNIC CitN 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 -1145E -mail: clerkCaroanokeva.gov January 6, 2021 The Honorable Joseph L. Cobb Council Member Roanoke, Virginia Dear Mr. Cobb: CECELIA T. WEBB, Ch1C Deputy Cite Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Personnel Committee: Composed Vice -Mayor Trish White -Boyd as Cobb as Vice - Chair. of the seven Members of Council. Chair and Council Member Joe Greater Roanoke Transit Company: Board of Directors — Composed of two Members of Council - Council Member Joe Cobb as Director and Council Member Vivian Sanchez -Jones as Director. Audit Committee: Composed of at least three Members of the Council - Council Member Joe Cobb as Chair, Vice -Mayor Trish White -Boyd as Vice - Chair, and Council Member Bestpitch as third member. Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee: Two Elected Official Representatives - Council Member Vivian Sanchez -Jones and Council Member Joe Cobb. Virginia Municipal League Human Development and Education Policy Committee: Council Member Joe Cobb and Council Member Stephanie Moon Reynolds as the Elected Official representatives. Let me know if you should have additional questions or desire additional information. Sincerely, Cam_. Pte. 67 Cecelia F. McCoy, CMC City Clerk CECELIA F. IVICCOY, CMC City 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 -1145E -mail: clerkC roanokeya.gov January 6, 2021 The Honorable Robert L. Jeffrey, Jr. Council Member Roanoke, Virginia Dear Mr. Jeffrey: CECELIA T. WEBB, ChIC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Roanoke Valley - Alleghany Regional Commission: Three Elected Official representatives are Council Members Stephanie Moon Reynolds, Robert Jeffrey and Bill Bestpitch. Roanoke Valley Regional Cable Television Committee: Council Representative -- Council Member Robert Jeffrey. Virginia's First Regional Industrial Facilities Authority: Elected Official Representative -- Council Member Stephanie Moon Reynolds and Alternate Representative Council Member Robert Jeffrey. Roanoke Valley Area Transportation Planning Organization: Two Elected Official Representatives -- Council Member Robert Jeffrey and Council Member Stephanie Moon Reynolds. Virginia Municipal League Environmental Quality Policy Committee: Council Member Robert Jeffrey and Christopher Blakeman, Environmental Manager as the Staff Representative. Let me know if you should have additional questions or desire additional information. Sincerely, 0.,,C4 �177 YA4 COY Cecelia F. McCoy, CMC City Clerk C'ECELIA F. MCCOY, ChIC Go 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 -1145E -mail: clerkCroanokeva.gov January 6, 2021 The Honorable Stephanie Moon Reynolds Council Member Roanoke, Virginia Dear Ms. Moon Reynolds: CECELIA T. WEBB, ChIC Depute City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Roanoke Redevelopment and Housing Authority: Board of Commissioners Council Liaisons -- Liaison Council Member Stephanie Moon Reynolds and Council Member Vivian Sanchez - Jones, as Alternate Liaison. Roanoke Valley - Alleghany Regional Commission: Three Elected Official representatives are Council Members Stephanie Moon Reynolds, Robert Jeffrey and Bill Bestpitch. Legislative Committee: Composed of all Members of Council: Council Member Bill Bestpitch as Chairman and Council Member Stephanie Moon Reynolds as Vice - Chair. Virginia's First Regional Industrial Facilities Authority: Elected Official Representative -- Council Member Stephanie Moon Reynolds and Alternate Representative Council Member Robert Jeffrey. Roanoke Valley Area Transportation Planning Organization: Two Elected Official Representatives -- Council Member Robert Jeffrey and Council Member Stephanie Moon Reynolds. Virginia Municipal League Human Development and Education Policy Committee: Council Member Joe Cobb and Council Member Stephanie Moon Reynolds as the Elected Official representatives. The Honorable Stephanie Moon Reynolds Council Member January 6, 2021 Page 2 Virginia Municipal League Community and Economic Development Policy Committee: Council Member Stephanie Moon Reynolds. Let me know if you should have additional questions or desire additional information. Sincerely, (244 0 Cecelia F. McCoy, CMC City Clerk CECELIA F. NICCOY, CHIC City 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- 1145E -mail: clerkCa roanokeva.gov January 6, 2021 The Honorable Vivian Sanchez -Jones Council Member Roanoke, Virginia Dear Ms. Sanchez - Jones: CECELIA T. NN EBB, CNIC Deputy City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Greater Roanoke Transit Company: Board of Directors — Composed of two Members of Council -- Council Member Joe Cobb as Director and Council Member Vivian Sanchez -Jones as Director. Roanoke Redevelopment and Housing Authority: Board of Commissioners Council Liaisons -- Liaison Council Member Stephanie Moon Reynolds and Council Member Vivian Sanchez - Jones, as Alternate Liaison. Total Action for Progress Board of Directors: Council Representative - Council Member Vivian Sanchez - Jones. Roanoke Valley - Alleghany Regional Comprehensive Economic Development Strategy Committee: Two Elected Official Representatives - Council Member Vivian Sanchez -Jones and Council Member Joe Cobb. Virginia Municipal League Transportation Policy Committee: Council Member Vivian Sanchez -Jones and Dwayne D'Ardenne, Transportation Manager, as the Staff Representative. Let me know if you should have additional questions or desire additional information. Sincerely, G Cecelia F. McCoy, CMC City Clerk CECELIA F. NICCOY, Cb1C City 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- 1145E -mail: clerkCa roanokeva.gov January 6, 2021 The Honorable Patricia White -Boyd Vice -Mayor Roanoke, Virginia Dear Ms. White -Boyd: CECELIA T. NVEBB, CMC Depute City Clerk At the organizational meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to serve on the following Committees, Boards and Authorities: Personnel Committee: Composed Vice -Mayor Trish White -Boyd aE Cobb as Vice - Chair. of the seven Members of Council. Chair and Council Member Joe Audit Committee: Composed of at least three Members of the Council - Council Member Joe Cobb as Chair, Vice -Mayor Trish White -Boyd as Vice - Chair, and Council Member Bestpitch as third member. Equity and Empowerment Advisory Board: Two Council Representatives Vice -Mayor Trish White -Boyd and Council Member Bill Bestpitch. Virginia Municipal League Finance Policy Committee: Vice -Mayor Trish White -Boyd as the Elected Official Representative and Amelia Merchant, Director of Finance, as the Staff Representative. Let me know if you should have additional questions or desire additional information. Sincerely, J-� Cecelia F. McCoy, CMC City Clerk IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41964- 010421. A RESOLUTION establishing a meeting schedule for City Council for January 1, 2021, and terminating December 31, 2021. BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. This resolution establishes a schedule of regular meetings for City Council commencing January 1, 2021 and terminating December 31, 2021. 2. As a result of the COVID -19 pandemic disaster and the declarations of emergency by the President of the United States, the Governor of the Commonwealth of Virginia, and the City of Roanoke, City Council adopted Ordinance No. 41703 - 032720, at a special session of City Council on March 27, 2020, to effectuate temporary changes in certain deadlines, modifying public meetings and public hearing practices and procedures to address the continuity of operations. Council Meetings and public hearings of City Council may be conducted by electronic communication means until the expiration of Amended Executive Order 51 issued by the Governor of the Commonwealth of Virginia on August 17, 2020. 3. City Council shall hold regular meetings on the first and third Mondays of each month, at the following times of commencement: (a) Unless otherwise provided by resolution of Council, each regular meeting on the first Monday in each month shall commence at 9:00 a.m. for the conduct of informal meetings, work sessions, or closed meetings. Thereafter, Council shall take up the regular agenda at 2:00 p.m. Council may recess between the 9:00 a.m. session and the 2:00 p.m. session. (b) Unless otherwise provided by resolution of Council, each regular meeting on the third Monday in each month shall commence at 2:00 p.m. for the conduct of regular business. The second meeting of each month shall be recessed upon the completion of all business except the conduct of public hearings, and such meeting shall be reconvened at 7:00 p.m. on the same day for the conduct of public hearings. 4. When any regularly scheduled Monday meeting shall fall on a holiday of the City, such meeting shall be held on Tuesday next following. 5. City Council may prescribe a day or time other than that established by this resolution or a meeting place other than that established by this resolution by adoption of a resolution establishing a new meeting day, place or time. City Council shall cause a copy of such resolution to be posted adjacent to the door of the Council Chamber and inserted in a newspaper having general circulation in the City at least seven days prior to the date of the meeting at such amended day, time or place. 6. This Resolution shall have no application to special meetings of City Council called pursuant to Section 10 of the City Charter. ATTEST: City Clerk. SHERMAN P. LEA, SR. Mayor CITY OF ROANOKE OFFICE OF THE MAYOR 215 CHURCH AVENUE, S.W., SUITE 452 ROANOKE, VIRGINIA 24011 -1594 TELEPHONE: (540) 853 -2444 FAX: (540) 853 -1145 EMAIL: MAYOROROANOKEVA.GOV January 4, 2021 The Honorable Vice -Mayor Patricia White -Boyd and Members of the Roanoke City Council Roanoke, Virginia Dear Vice -Mayor White -Boyd and Members of Council: This is to request 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. Sincerely, Fool' Q UP Sherman P. Lea, Sr. Mayor SPL:ctw COMMITTEE VACANCIES /REAPPOINTMENTS January 4, 2021 Public VACANCIES: Unexpired term of office on the Board of Zoning Appeals ending December 31, 2021. Term of office (Citizen at Large) on the Towing Advisory Board ending October 31, 2023. CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 4, 2021 Subject: Request Public Hearing to Renew Lease for the Orvis Company, Inc., a Vermont Corporation Background: The Orvis Company, Inc., a Vermont Corporation ( Orvis) currently leases approximately 3,000 square feet of retail space from the City of Roanoke (Leased Premises) pursuant to the terms of a five -year lease agreement with the City. The Leased Premises is located on Campbell Avenue, S.E. in a portion of the building commonly known as the Center in The Square Parking Garage. Orvis' current lease expires January 31, 2021. Orvis has expressed an interest to renew the current lease for one year due to the current pandemic situation. The City desires to continue leasing the Leased Premises to Orvis. Under the terms of a proposed e new lease, the initial term would commence February 1 , 2021 and expire January 31, 2022 (New Lease). Orvis will have the option to renew the New Lease upon the expiration of the initial term for four additional one -year terms, upon the mutual agreement of Orvis and City. The rent due under the initial term of the New Lease will begin at a monthly base rent of $1,245.23, together with one and one - quarter percent (1.25 %) of the gross revenue from sales generated from the Leased Premises for the previous year. Should the parties exercise the renewal terms of the New Lease, the rent amount will increase three percent (3%) each year from the prior year. A public hearing is required under state law before City Council may consider the lease of publically owned property. Recommended Action: Authorize the City Manager and the City Clerk to schedule and advertise this matter for a public hearing to be held at City Council Chamber, 4`h Floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S.W., Roanoke, Virginia on Tuesday, January 19, 2021, at 7:00 pm, or at some time thereafter as the matter may be reached, or at such later date and time as the City Manager may determine. !�: ---- ----- ------------- Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers W. Brent Robertson, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance Robert Ledger, Director Economic Development Cassandra L. Turner, Economic Development Specialist LEASE AGREEMENT THIS LEASE AGREEMENT ( "Lease "), made and entered in duplicate on this day of, 2021, by and between the CITY OF ROANOKE, VIRGINIA, a municipal corporation organized under the laws of the Commonwealth of Virginia, hereinafter referred to as "Lessor ", and THE ORVIS COMPANY, INC., a Vermont Corporation, hereinafter referred to as "Lessee ". RECITALS: WHEREAS, the Lessor owns certain property in Roanoke, Virginia, commonly referred to as the Market Square Parking Garage, "hereinafter referred to as the "Garage" located at 11 Campbell Ave SE, Roanoke, VA 24011 in the downtown area of the City, WHEREAS, the Lessee desires to lease approximately 3,000 square feet of retail space located in the Garage for the purpose of selling clothing and other items and products to the public; and WHEREAS, after a public hearing was held on January 19, 2021, pursuant to Section 15.2 -1800 of the Code of Virginia (1950) as amended, Roanoke City Council authorized the execution of this lease agreement pursuant to Ordinance No. , adopted by Roanoke City Council on January 19, 2021. NOW, THEREFORE, IN CONSIDERATION of the recitals and mutual covenants contained herein, the above recitals which are incorporated herein by reference, and other good and valuable consideration, the parties hereto agree as follows: 1 1. Leased Premises. Lessor hereby leases to Lessee, and Lessee leases from Lessor, subject to and upon the terms and conditions hereinafter set forth, those certain premises in the Garage consisting of approximately 3,000 square feet of retail space and the separate storage space described as follows: Hereinafter referred to as "Leased Premises" and identified as such on the drawing labeled Center in the Square 1 which is attached to and made a part of this Lease Agreement as Exhibit "A ". The Lessor agrees to hold in reserve three (3) parking spaces during the term of this Lease in the Garage, the cost of which is to be paid by the Lessee at the annual market rate. Such parking permits, however, are not a part of this Lease. 2. Lessor's Warranties. Lessor represents and warrants that: A. Lessor is the sole owner in fee simple of the Leased Premises and has full right and power to grant the estate demised and to execute and perform this Lease; B. The Leased Premises is now and will remain free and clear of all encumbrances created by Lessor which could adversely affect Lessee's leasehold estate; C. As of the date of execution of this Lease Agreement, the intended use of the Leased Premises for the purposes stated herein is permitted by all applicable zoning laws and regulations; and, D. As of the date of execution of the Lease Agreement, to the best of Lessor's knowledge, the Leased Premises complies with all applicable ordinances, regulations and zoning and other laws, and the use of the Leased Premises for the retail sale of merchandise is a permitted use. E 3. Term of Lease. Lessee shall have and hold the Leased Premises for an initial term of one (1) year, commencing at 12:01 a.m., February 1, 2021, and ending January 31, 2022. Upon expiration of the initial term, this Lease may be extended for up to four (4) additional renewal terms of one (1) year each, on the same terms and conditions, upon the mutual agreement of the Lessor and Lessee in writing. For any renewal term to be exercised, Lessee must provide written notice to Lessor no later than sixty days prior to the expiration of the initial term, or a renewal term. Lessor shall then have a period of time not to exceed thirty (30) days to either reject or accept Lessee's request for such renewal term. If a written response to Lessee's request for such renewal is not made by Lessor within such time, Lessee's request for a renewal term of the Lease shall be deemed to be rejected. 4. Rent. For the first year of the initial five -year term of this Lease, Lessee shall pay to the Lessor, as rent, for the use of the Leased Premises the sum of $1,245.23 per month ($14,942.76) for the first year of the term of the lease), payable monthly in advance, and due no later than the 5th of each month. The parties agree that rent shall further consist of one and one - quarter percent (1.25 %) of the gross revenue from sales made from the Leased Premises during the prior calendar year, which sum shall be payable within sixty (60) days of the end of each calendar year. The monthly rental payment will be adjusted each subsequent year (every twelve (12) months) during the term of the lease, in the event the term of the Lease is extended pursuant to the provisions of Section 3, by an increase of three percent (3 %) of the amount of the monthly rental for the previous year. Provided, however, although 1.25% of Lessee's 3 gross revenue from sales shall continue to be due and owing during any renewal term, such amount shall not be used in calculating the 3% annual increase of rent. Rent payments must be submitted to the Roanoke City Treasurer's Office, located in Room 254, Noel C. Taylor Municipal Building, 215 Church Avenue, Roanoke, VA 24011, or to P.O. Box 1451, Roanoke, VA 24011. Payments by check shall be made payable to Roanoke City Treasurer. There shall be excluded from gross revenue any sales tax or other similar tax, uncollected funds, credit card fees and charges, credits or similar items due to merchandise returns or exchanges, sales of trade fixtures, gift certificate sales (until redeemed), layaway sales (until completed), charges for alterations, gift wrapping or other service done on a non - profit basis, insurance recoveries, sales to employees, and any catalog sales. Lessor shall have the reasonable right to inspect Lessee's financial records to the extent necessary to verify the amount of Lessee's yearly gross receipts from sales on the Leased Premises. 5. Use of Premises. Lessee hereby agrees that the Leased Premises will be used for the retail sale of clothing and other items and products and for operations in conjunction with its catalogue sales operation, and that the Leased Premises shall not be put to any other use without the prior written consent of Lessor. 6. Maintenance. Lessor, at its sole cost and expense, will service and maintain, repair, or replace the structural foundation of the walls, (excluding the awnings), utility and service lines, and roof of the Leased Premises, and shall repair or 4 replace any HVAC equipment which requires replacement. Lessor shall have no further obligation with respect to maintenance of the Property. Lessee, at its sole cost and expense, will service and maintain the Leased Premises in good repair, condition and appearance during the term of this Lease, ordinary wear and tear excepted, and Lessee will make all non - structural changes of every kind or nature which may be required to be made for any reason in connection with Lessee's use of the Leased Premises, and in order to keep the Lease Premises in good repair and condition, including maintenance of the Leased Premises that is cosmetic in nature (e.g. painting, janitorial, flooring, etc.) Lessee shall keep in good running order electric wiring, toilets, water pipes, water, gas and electric fixtures; replace all locks, trimmings, glass and plate glass broken during the tenancy, and unstop all water fixtures that may become choked. If there be any elevators, escalators, lifts, machinery or appliances (herein called "equipment ") on the Leased Premises, Lessee shall care for, maintain, and repair same, and shall indemnify and save harmless Lessor from any liability or claims for damages for injuries to persons and property arising therefrom, except to the extent due to Lessor's sole negligence. Lessee shall not make any alterations of, additions to or changes in the Leased Premises or equipment without the prior written consent of Lessor, which consent shall not be unreasonably withheld, with the exception of replacement of the awnings, discussed below. Lessee further covenants and agrees that all signage and the general appearance of the Leased Premises shall be subject to the prior approval of the Lessor, which approval shall not be unreasonably withheld. Lessee shall remove any signage or other materials which negatively affect the general appearance of the Leased Premises, in the sole and exclusive discretion of Lessor. All permanent alterations, changes, and improvements, by whosoever made, shall be the property of Lessor. Nothing contained in this paragraph shall be construed as requiring Lessor to make any repairs, except repairs of a structural nature, and as specified earlier in this paragraph. 7. Replacement and Maintenance of Awnings. The parties agree that Lessee may replace and thereafter maintain and replace the existing awnings that are attached to the Leased Premises, at Lessee's sole expense. The parties agree that any such awnings attached to the Leased Premises shall be considered a fixture to the property, and property owned by the Lessor in accordance with Virginia law. Lessee shall have the sole responsibility to maintain and keep the awnings in good repair and condition at Lessee's expense. The Lessee agrees that it shall obtain Lessor's consent in writing as to the design and wording of the awnings before such awnings are attached to the Leased Premises, which consent shall not unreasonably be withheld. The Lessor agrees that the Lessee shall receive a rent credit for the actual cost of the awning upgrades, such rent credit not to exceed the amount of five thousand five hundred and no /dollars ($5,500), to be applied in even installments to the rent that will be due Lessor by Lessee each month over the next twelve (12) months of the term of this Lease from the date of the installment of such awnings. Lessee shall provide Lessor upon demand such documentation (e.g. receipts, invoices, etc.) that shows the costs of such awnings. 8. Inspection. Lessee shall permit Lessor or its authorized agents to enter the Leased Premises for the purpose of inspection of any reasonable time or times and upon reasonable notice during the term of this Lease provided, however, that such inspections shall not unreasonably interfere with Lessee's use and occupancy of the Leased Premises. 9. Utilities. Lessee shall promptly pay all fuel, water, gas, sewage, electricity, lighting, and other bills as the same may become due, it being understood and agreed that the Lessee shall promptly make all required deposits for meters and utility services. The Lessor agrees to install separate meters for all utilities which are Lessee's responsibility. 10. Insurance and Indemnification. (A) Lessee agrees to pay and to protect, indemnify and save harmless Lessor from any and all liabilities, damages, costs, expenses, including, without limitation, reasonable attorneys' fees, causes of action, suits, claims, demands, or judgments of any nature whatsoever arising from injury to or death of persons or damages to property resulting from Lessee, its agents, employees, or assign's use of the Leased Premises caused by any act or omission of Lessee, its agents, employees, or assigns. B. Lessee shall, at its sole expense, obtain and maintain during the life of this Lease Agreement, the insurance policies required by this Section. Any required insurance policies shall be effective prior to the beginning date of this Lease Agreement. The following policies and coverages are required: (1) Commercial General Liability. Commercial General Liability insurance, written on an occurrence basis, shall insure against all claims, loss, cost, damage, expense or liability from loss of life or damage or injury to person or property arising out of the Lessee's actions under this Lease Agreement. The minimum limits of liability for this coverage shall be $1,000,000 combined single limit for any one occurrence. (2) Contractual Liability. Broad form Contractual Liability insurance shall include the indemnification obligation set forth herein. (3) Lessee's Insurance. Lessee shall, at its sole cost and expense, obtain and maintain during the life of this Lease Agreement a property insurance policy written on an "all risk" basis insuring all of Lessee's personal property, including, but not limited to, equipment, furniture, fixtures, furnishings, and leasehold improvements which are Lessee's responsibility, for not less than full replacement cost of such property. All proceeds of such insurance shall be used to repair or replace Lessee's property. (4) Workers' Compensation. Workers' Compensation insurance covering Lessee's statutory obligation under the laws of the Commonwealth of Virginia and Employer's Liability insurance shall be maintained for all its employees engaged in work on the Leased Premises. Minimum limits of liability for Employer's Liability shall be $100,000 bodily injury by accident each occurrence; $500,000 bodily injury by disease (policy limit); and $100,000 bodily injury by disease (each employee). With respect to Workers' Compensation coverage, the Lessee's insurance company shall waive rights of subrogation against the City, its officers, employees, agents, volunteers and representatives. (5) Fire and Extended Coverage for Structures. Lessee shall obtain and maintain fire and extended coverage insurance insuring the improvements on the Leased Premises, Lessee's personal property, equipment, and trade fixture, for direct and indirect loss or damage by fire and any other casualty covered under a broad perils, "all risks" typical fire and extended coverage property insurance policy, in an amount equal to the current fair value of the improvements. This coverage shall include the cost R of demolition and removal of the improvements, or any portions thereof, damaged by fire or other casualty. The proceeds of the fire and extended coverage insurance shall be payable to Lessor. Lessor shall have the sole right to use the proceeds to repair the improvements and continue this Agreement or retain the proceeds of insurance and terminate this Agreement. The insurance coverages and amounts set forth in subsections (1), (2), (3) (4) and (5) of this Section may be met by an umbrella liability policy following the form of the underlying primary coverage in a minimum amount of $1,000,000. Should an umbrella liability insurance coverage policy be used, such coverage shall be accompanied by a certificate of endorsement stating that it applies to the specific policy numbers indicated for the insurance providing the coverages required by subsections (1), (2), (3) (4) and (5) and it is further agreed that such statement shall be made a part of the certificate of insurance furnished by Lessee to Lessor. C. All insurance shall meet the following requirements: (1) Lessee shall furnish Lessor a certificate or certificates of insurance showing the type, amount, effective dates and date of expiration of the policies. Certificates of insurance shall include any insurance deductibles. (2) The required certificate or certificates of insurance shall include substantially the following statement: "The insurance covered by this certificate shall not be canceled or materially altered, except after thirty (30) days written notice has been received by City of Roanoke, Virginia." Shall follow notification procedures in policy. (3) The required certificate or certificates of insurance shall name the City of Roanoke, its officers, employees, agents, volunteers and representatives as additional insured. Additional insured coverage must be primary and Lessor's insurance is non- contributory. The Fire and extended coverage insurance shall insure the Lessor and the Lessee in the Building, as their interests may appear. (4) Where waiver of subrogation is required with respect to any policy of insurance required under this Section, such waiver shall be specified on the certificate of insurance. (5) Insurance coverage shall be in a form and with an insurance company approved by Lessee which approval shall not be unreasonably withheld. Any insurance company providing coverage under this Lease Agreement shall be authorized to do business in the Commonwealth of Virginia. 11. Destruction of Premises. Lessee shall be responsible for insuring all personal property, equipment, and trade fixtures, and Lessee shall hold Lessor harmless for said items, if destroyed or damaged by fire or otherwise, unless caused by Lessor's negligence. Lessor shall be responsible for and shall maintain fire and extended coverage insurance on the Garage and the structural portions of the Leased Premises paid for by the City at replacement cost in reputable insurance companies. If the Leased Premises are damaged or destroyed in whole or in part by fire or other casualty and the same can be repaired or restored within one hundred twenty (120) days from the date of the damage, Lessor shall repair the Leased Premises within such period and, in that event, there shall be a proportional abatement of rent to the extent Lessee is unable to conduct its business in a normal manner while Lessor repairs the Leased Premises. 10 In the event the Leased Premises are damaged and destroyed and cannot be repaired or restored within one hundred twenty (120) days from the date of the damage, either Lessor or Lessee may terminate this Lease by giving written notice to the other within thirty (30) days after the damage occurs, in which event this Lease shall terminate, and rent shall abate in total from the date of such damage or destruction. If neither party elects to terminate this Lease, Lessor shall proceed with due diligence to repair and restore the Leased Premises and the rent shall abate in proportion to the extent Lessee is unable to conduct its business in a normal manner from the date of such damage or destruction. 12. Eminent Domain. Eminent domain proceedings resulting in the condemnation of part of the Leased Premises that leave the rest usable by Lessee for the purposes of the business for which the Leased Premises are leased will not terminate this Lease, unless Lessee at its option terminates it by giving written notice of termination to the other party. The effect of such condemnation, should such option not be exercised, will be to terminate the Lease as to the portion of the Leased Premises condemned and leave it in effect as to the remainder of the Leased Premises, and the rent and utilities and charges fee provided for herein shall be adjusted accordingly. Compensation awarded as a result of such condemnation shall be that of Lessor, except to the extent that part of the award is allocated and specifically identified as damages for the value of Lessee's leasehold estate, its trade fixtures or to relocation costs. Lessor agrees not to use its power of eminent domain to take all or any portion of the Leased Premises. 11 13. Assignment. Lessee shall not assign or transfer this Lease in whole or in part, sublet or license the Leased Premises or any part thereof without the prior written consent of Lessor, which consent shall not be unreasonably withheld, except that that Lessee shall have the right without Lessor's consent to sublease or assign the Leased Premises or any part thereof to a parent, subsidiary, or affiliate of Lessee to be used for the purposes set out in Paragraph 5 above. If consent to assign or sublease is given, no such assignment or sublease shall in any way release or relieve Lessee from any of its covenants or undertakings contained in this Lease, and Lessee shall remain liable on this Lease during the term thereof. 14. Force Maieure. The obligations of the parties hereunder shall be subject to force majeure (which shall include lawful strikes, riots, floods, accidents, Acts of God, and other causes or circumstances beyond the control of the party claiming such force majeure as an excuse) for nonperformance of such obligations. 15. Default. It is understood and agreed by and between the Lessor and the Lessee that if default be made in timely payment of rent set out in Paragraph 4, above, or any part thereof, or in the event of breach by Lessor or Lessee of any of the covenants and agreements herein contained, the aggrieved party may serve a written sixty (60) day notice of default, specifying such default, on the breaching party. If such default is not remedied within sixty (60) days, this Lease Agreement shall automatically end and expire and the Leased Premises shall automatically revert to Lessor, provided however, if the default involves the failure of Lessor to perform its maintenance obligations under Paragraph 6 and the failure impairs Lessee's business operations, Lessor shall have a reasonable period of time to cure, not to exceed seven (7) days. 12 16. Taxes and Assessments. Lessee agrees that it will be responsible for the payment of any leasehold taxes or other legal taxes, charges or assessments imposed by virtue of its occupancy of the Leased Premises. 17. Compliance with Laws. Lessee agrees to conform to and not to violate laws, ordinances, rules, regulations, and requirements of federal, state, municipal, or other governmental authorities and the various departments thereof now existing or hereinafter created affecting Lessee's use and occupancy of the Leased Premises. 18. Lessee's Obligation to Quit Premises. Lessee shall, upon the expiration or termination of this Lease, peaceably quit and deliver to Lessor possession of the Leased Premises in the same condition as of the date of commencement, normal wear and tear and damage caused by fire or natural disaster excepted, and shall promptly clean up and remove all personal property and non - fixture items on the Leased Premises. If Lessee fails to vacate the Premises at the end of the term, Lessee shall become a tenant from month -to -month at the monthly rent payable for the last month of the expiring term. 19. Fixtures. All fixtures, equipment, improvements, and appurtenances permanently vacated to or built into the Leased Premises, whether or not by or at the expense of Lessee, and any personal property of the Lessor or installed by Lessor in the Leased Premises shall be and remain a part of the Leased Premises and shall be deemed property of the Lessor and shall not be removed by Lessee. All movable partitions, other business and trade fixtures, furnishings, furniture, machinery and equipment, communications equipment, and other personal property located in the Leased Premises and acquired by or for the account of Lessee without 13 expenses to Lessor may be removed by Lessee at any time during the term hereof, provided that Lessee shall repair any damage to the Leased Premises resulting from such removal to the reasonable satisfaction of Lessor. 20. Peaceful Enjoyment. Lessor covenants and agrees that if and so long as Lessee shall pay the rent called for under this Lease as the same shall become due and shall keep all the covenants and agreements required by it to be kept during the Lease and shall perform all its other obligations hereunder. Lessee shall have the peaceful and quiet occupation and enjoyment of the Leased Premises. 21. Notices. Notices given under the terms of this Lease shall be deemed properly served if such notice is mailed by Certified United States Mail, Return Receipt Requested; if to Lessor addressed to City Manager, City of Roanoke, Room 364, Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia 24011; and if to Lessee addressed to The Orvis Company, Inc., 178 Conservation Way, Sunderland, Vermont 05250. Notice mailed in accordance with the provisions hereof shall be deemed to have been given as of the date of receipt or the third business day following the date of such mailing, whichever date is earlier. 22. Covenants and Conditions. Each provision of this Lease shall be deemed to be both a covenant and a condition running with the land unless otherwise provided. 23. Conveyances. If Lessor sells, conveys or passes title to the Leased Premises, the Lessee shall be bound by the terms and conditions herein to the new owner of the Leased Premises and the new owner shall take title subject to this leasehold interest. 14 24. Severability. If any clause or provision of this Lease is or becomes illegal or unenforceable because of present or future laws or rules or regulations of any governmental body or entity, effective during the term of this Lease, the intention of the parties hereto is that the remaining parts of this Lease shall not be affected thereby unless such clause or provision is, in the reasonable determination of both Lessee and Lessor, essential and material to their respective rights, in which event either party shall have the right to terminate this Lease upon thirty (30) days' written notice to the other party. 25. Completeness of Agreement. This document, together with Exhibit "A" constitutes the entire agreement between the parties and supersedes any prior understanding or written or oral agreements between the parties respecting the within subject matter, including the license agreement between the parties governing Lessee use of the Leased Premises for the month of January 2016. No changes or modifications of any of the covenants, terms or conditions hereof shall be valid unless in writing and signed by authorized officers of the parties hereto. 26. Successors and Assigns. This Lease shall be binding upon the parties and their successors and assigns. 27. Non discrimination. During the performance of this contract, the Lessee agrees as follows: Lessee will not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, sex, or national origin, except where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. Lessee agrees to post in 15 conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. Lessee, in all solicitations or advertisements for employees placed by or on behalf of the Lessee, will state such Lessee is an equal employment opportunity employer. Notices. advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section. Lessee will include the provisions of this Paragraph 27 in every subcontract or purchase order for construction at the Leased Premises of over ten thousand dollars ($10,000.00), so that the provisions will be binding upon each subcontractor or vendor. Any inadvertent failure by the Lessee to comply with the terms of this Paragraph shall not be grounds for terminating this Lease. 28. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to its choice of law principles. Venue shall be a court of competent jurisdiction in the City of Roanoke, Virginia. Lessee acknowledges that it and the City have both participated in the drafting of this agreement, and agrees that if there is any ambiguity, such ambiguity will not be construed against either of the parties. 29. No Broker. The parties covenant that this Lease was directly negotiated between them and no broker was involved in bringing about this Agreement. No claim of a broker's fee shall be made against either party. 30. Memorandum of Lease — Recording. The parties agree that in the event either party hereto shall desire to file this Lease of record, the parties hereto shall 16 forthwith cause to be prepared, and shall thereafter execute, a memorandum of this Lease in the form prescribed by statute, which memorandum, and not this Lease, shall then be so filed for record. 31. Subordination. This Lease and rights of the Lessee hereunder are and shall be subject to the lien of any and all mortgages which may now or hereafter affect the Leased Premises or the Garage, provided that such mortgagee agrees not to disturb the tenancy of Lessee under this Lease so long as Lessee is not in default hereunder. 32. Waiver of Subrogation. Each of the parties to this Lease hereby waives all causes of action and rights of recovery against the other party, and their respective heirs, administrators, successors, officers, employees, agents and assigns for any loss or damage occurring to the Leased Premises, or the improvements, fixtures, merchandise and personal property of every kind located in and about the Leased Premises resulting from any perils covered by insurance, or would have been covered by insurance had the parties obtained the insurance required by this lease, regardless of cause or origin, including the negligence of either party, their respective heirs, administrators, successors, officers, employees, agents and assigns to the extent of any recovery under a policy or policies of insurance. To the extent necessary to effect the foregoing waiver of subrogation, each of the parties agree to obtain from their respective insurance carriers endorsements to such policies of insurance waiving the right of subrogation of the insurance carrier. IN WITNESS WHEREOF, the parties hereto have affixed their signatures the day and year first above written. 17 ATTEST: Stephanie M. Moon, City Clerk ATTEST: Approved as to Form: Assistant City Attorney CITY OF ROANOKE, VIRGINIA By Robert S. Cowell„ City Manager THE ORVIS COMPANY, INC. By (title) Printed Name: Title: Approved as to Execution: Assistant City Attorney 18 CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 4, 2021 Subject: Request a Public Hearing for the Vacation of an Existing 15' P.U.E. Associated with Vacated Alleys on Tax Map Nos. 4012008 and 4012009 and a Second 15' P.U.E Associated with Tax Map Nos. 4012013 and 4012016 Background: Freedom First Federal Credit Union (Freedom First) purchased several parcels along 3'd Street, SE, including the parcels cited in this request and will utilize the parcels for their headquarters. There currently exist two 15' Public Utility Easements ( "P.U.E.s ") that need to be vacated without any further encumbrances. The location of one of the easements extends between Tax Map No. 4012008 and 4012009 and used to be an alley which when vacated was retained as a P.U.E. The location of the second P.U.E. exists between Tax Map No. 4012013 and 4012016 currently parking lots for the former owner which also used to be an alley. Vacating these two P.U.E.'s alleviates any further encumbrances. Recommended Action: Authorize the scheduling and advertising of a public hearing for the vacation of the two existing 15' P.U.E. to Freedom First for January 19, 2021, at 7:00 pm, or such later date and time as the City Manager may determine. - - - -- --------------- - - -- Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers Sherman M. Stovall, Deputy City Manager Amelia C. Merchant, Director of Finance Mark Jamison, P.E., Director of Public Works Luke Pugh, P.E., City Engineer Cassandra L. Turner, Economic Development Specialist y a a a R Y i ro. Rrwl�.. dr:..�wl lriw+R°•.w�.w m�ir i � r'DV �.iwrn r aY wY.rilp F wQl.rrr rlr nlwr awwr w nla. rR Ora T slim r owr ^.11 rraali wwrrrr�lN Pr OQ.Rf rrN r, Yn lar ac i Y�1N i WaNI{rRrMrisN r/irlrs•anrrrer)rNr 11L. 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SNOl1rC -O ALTA/NSPS LAND TI7ZE SURVEY•• of 1.4508 ACRES WJU. rN""M R? #DIDMQZ AND !NSWUNWr 107001!148 MKPARCD RM .REEDOM FIRST FEDERAL CREDIT UNION RNA 20 AIOMG AD S!. SC. AM S"fT AVE.. S[ Cm' Dl ROANOAZ t[RGMU Q�4�3 vil a � 4 � s e aj .o to � h l a 1.•+ t \a1 CITY OF ROANOKE OFFICE OF THE CITY ATTORNEY 464 MUNICIPAL, BUILDING 215 CHURCH AVENUE, SW ROANOKE, VIRGINIA 24011-1595 Timothy R. Spencer TELEPHONE 540- 853.2431 City Attorney FAX 540 -853 -1221 EMAIL: ciryarry @roanokc<<i. ,,o%, January 4, 2021 The Honorable Shennan P. Lea, Sr., Mayor and Members of City Council Roanoke, Virginia David L. Collins Heather P. Ferguson Laura M. Carini Douglas P. Barber, Jr. Assistant City Attorneys Re: Request a Public Hearing for public comment regarding adding a new Section 24 -2.1 Prohibition of Firearms on City Property Mayor Lea and Members of Council: Effective July 1, 2020, Section 15.2 -915 of the Code of Virginia was amended to allow localities to adopt an ordinance prohibiting firearms on City property. The law does not require a public hearing prior to adoption of an ordinance that would prohibit fireanns on City property. However, in an effort to promote transparency and to allow residents of the City to participate in their government, City Council has indicated that it would like to hold a public hearing prior to consideration of an ordinance prohibiting firearms on certain City property. Therefore, I ask that Council formally authorize the City Clerk to schedule and advertise a public hearing to be held Tuesday, January 19, 2021, to receive citizens input regarding the consideration by City Council of a new Section 24 -2.1 Prohibition of Firearms on City Property. This new code section would prohibit the possession, carrying or transportation of firearms in certain municipal facilities. Sincerely, Til ►th . Spencer C' Attorney LSGI c: Robert S. Cowell, Jr., City Manager Sherman M. Stovall, Deputy City Manager Amelia Merchant, Director of Finance Troy D. l larnon, City Auditor Cecelia F. McCoy, City Clerk Comprehensive Annual Financial Report FOR YEAR ENDED JUNE 30, 2020 ¢m Serving the customers of the City of Roanoke and the Counties of Roanoke, Franklin and Botetourt WESTERN VIRGINIA WATER AUTHORITY ROANOKE, VIRGINIA Comprehensive Annual Financial Report Year Ended June 30, 2020 Prepared by: Tammy Lawfield Director of Finance Jennifer Meeks Senior Accountant WESTERN VIRGINIA WATER AUTHORITY Comprehensive Annual Financial Report Year Ended June 30, 2020 Table of Contents Page Introductory Section Authority Officials 1 Letter of Transmittal 2-18 Organizational Chart 19 Certificate of Achievement 20 Financial Section Independent Auditors' Report 21 -23 Management's Discussion and Analysis 24 -31 Basic Financial Statements 80 Exhibit 1 Statement of Net Position 32 Exhibit 2 Statement of Revenues, Expenses and Changes in Net Position 33 Exhibit 3 Statement of Cash Flows 34 Notes to Financial Statements 35 -79 Required Supplementary Information Pension Plan - VRS: Schedule of the Authority's Proportionate Share of the Net Pension Liability (Asset) 80 Schedule of Employer Contributions 81 Notes to Required Supplementary Information 82 Pension Plan - Roanoke City Pension Plan: Schedule of the Authority's Proportionate Share of the Net Pension Liability (Asset) 83 Schedule of Employer Contributions 84 Notes to Required Supplementary Information 85 Other Postemployment Benefits Plan - Health Insurance: Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios 86 Notes to Required Supplementary Information 87 Other Postemployment Benefits Plan - Group Life Insurance (GLI) Plan: Schedule of Authority's Share of Net OPEB Liability 88 Schedule of Employer Contributions 89 Notes to Required Supplementary Information 90 WESTERN VIRGINIA WATER AUTHORITY Comprehensive Annual Financial Report Year Ended June 30, 2020 Table of Contents (Continued) Compliance Section Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 111 -112 Page Other Supplementary Information Supporting Schedules Schedule 1 Schedule of Revenues, Expenses and Changes in Net Position 91 - Budget and Actual - Water Fund Schedule 2 Schedule of Revenues, Expenses and Changes in Net Position 92 - Budget and Actual - Water Pollution Control Fund Statistical Section Table 1 Net Position by Component —Last Ten Fiscal Years 93 Table 2 Changes in Net Position —Last Ten Fiscal Years 94 Table 3 Operating Revenues by Source —Last Ten Fiscal Years 95 Table 4 Operating Expenses —Last Ten Fiscal Years 96 Table 5 Nonoperating Revenues and Expenses —Last Ten Fiscal Years 97 Table 6 Annual Capital Contributions by Source —Last Ten Fiscal Years 98 Table 7 Water Produced, Consumed and Wastewater Treated —Last Ten Fiscal Years 99 Table 8 Number of Customers —Last Ten Fiscal Years 100 Table 9 Schedule of User Rates —Last Ten Fiscal Years 101 Table 10 Principal Customers 102 Table 11 Ratios of Outstanding Debt by Type —Last Ten Fiscal Years 103 Table 12 Schedule of Debt Service Et Coverage —Last Ten Fiscal Years 104 Table 13 Demographic Statistics —Last Ten Fiscal Years 105 Table 14 Principal Area Employers 106 Table 15 Number of Employees by Identifiable Activity —Last Ten Fiscal Years 107 Table 16 Operating Statistics —Last Ten Fiscal Years 108 Table 17 Schedule of New Connections —Last Ten Fiscal Years 109 Table 18 Water Consumption and Wastewater Flow by Customer Group —Last Ten Fiscal Years 110 Compliance Section Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 111 -112 WESTERN VIRGINIA WATER AUTHORITY (A Governmental organization established March 2, 2004 under the Water and Wastewater Authorities Act, Chapter 51, Title 15.2, 1950 Code of Virginia, As Amended) MEMBERS Hunter Young, Chair John Bradshaw Donald Davis Shirley Holland OFFICIALS Executive Director Secretary Assistant Secretary Treasurer Bob Cowell, Vice Chair Harvey Brookins Randall Hancock Daniel O'Donnell Mike T. McEvoy Gayle Shrewsbury Sarah Baumgardner Tammy Lawfield VII E S T E R N V I R G I N I A ® WATER AUTHORITY FINANCE & ADMINISTRATION October 23, 2020 To the Honorable Chairman, Members of the Board of Directors, Customers and Interested Parties: We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the Western Virginia Water Authority (Authority) for the fiscal year ended June 30, 2020. The CAFR was prepared by the Authority in conformity with U.S. Generally Accepted Accounting Principles (GAAP) and with emphasis on disclosure of the financial activities of the Authority. Responsibility for both the completeness and reliability of the information, including all disclosures, rest with the Authority, and is based upon a comprehensive framework of internal control that has been established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed financial data is accurate in all material respects and fairly presents the financial position, results of operations and cash flows of the Authority. All disclosures necessary to enable the reader to gain an understanding of the Authority's financial activities have been included. The basic financial statements have been audited by our independent auditors, Robinson, Farmer, Cox Associates, who have issued an unmodified ( "clean ") opinion on the financial statements of the Authority as of and for the year ended June 30, 2020. The audit was conducted in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Specifications for Audits of Authorities, Boards and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. The annual audit is planned and performed to obtain reasonable, rather than absolute, assurance that the basic financial statements of the Western Virginia Water Authority are free of any material misstatement. The independent auditors' report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD&tA) immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read with it. Profile The Authority was formed by the Council of the City of Roanoke and the Board of Supervisors of the County of Roanoke on July 1, 2004 as a regional water authority to establish and operate a water and sewer disposal system and related facilities. The Authority was chartered in 2004 pursuant to the Virginia Water and Waste Authorities Act, Chapter 51 title 15.2 of the Code of Virginia 1950 as amended. The Authority is authorized to acquire, finance, construct, manage and maintain a fully integrated water, -2- wastewater, septage disposal and related facilities pursuant to the Act. Additional information on the formation of the Authority is covered under Note 1 of the Notes to Financial Statements. On November 5, 2009 Franklin County joined as a member of the Authority when the involved parties reorganized under amended and restated Articles of Incorporation. Botetourt County joined as a member in the Authority on July 1, 2015. The Authority's Board of Directors consists of eight members; three of which are appointed by the City Council of Roanoke, three appointed by the Board of Supervisors of the County of Roanoke, one member is appointed by the Board of Supervisors of the County of Franklin and one member is selected by the Board of Supervisors of the County of Botetourt. Board terms are four years. Regular meetings of the Board of Directors are normally held monthly. The Authority is administered by an Executive Director, who serve at the pleasure of the Board. The Executive Director has the direct supervision of all employees of the Authority, are responsible for the operation of the Authority, and the establishment of guidelines for efficient and sound fiscal management. The Authority provides citizens in the Roanoke area and portions of Franklin and Botetourt Counties with a dependable supply of water. The Authority treats and delivers 18 million gallons of drinking water per day for 63,462 customer accounts. Major water sources include the Spring Hollow reservoir, Carvins Cove reservoir, Falling Creek / Beaver Dam Creek reservoirs and Crystal Spring. Other sources include various groundwater wells and water purchased from the Bedford County Public Service Authority for a portion of the Authority's customers in Franklin County. Current rated system treatment capacity is approximately 58 million gallons per day (MGD). The Spring Hollow reservoir was constructed in 1993 and consists of a 243 foot high by 990 foot long roller - compacted concrete dam with a working volume of 3.2 billion gallons. Water is pumped from the Roanoke River for storage, and the safe yield of this reservoir is 19.4 MGD. The treatment facility was constructed in 1996 and has a capacity of 18 MGD. The Carvins Cove reservoir was completed in the late 1940s and includes an 80 foot high dam with a 6.47 billion gallon impoundment. Tinker Creek tunnel, constructed in 1966 and the Catawba Creek tunnel, constructed in 1974 enable additional source water to be impounded. The reservoir has a safe yield of between 14 and 18 MGD. The reservoir is also used for limited recreation purposes. The treatment facility capacity is 28 MGD. Falling Creek / Beaver Dam Creek reservoirs have a combined storage volume of 520 million gallons. The Falling Creek reservoir was constructed in 1900 and the Beaver Dam Creek reservoir was completed in 1926. Both are clay core, rock filled dams and have a combined safe yield of 1.45 MGD. Treatment facility capacity is comparable to the yield. Construction was completed on the Falling Creek dam and spillway in 2011. Crystal Spring has a safe yield of 3.5 MGD and uses membrane filtration with a capacity of 4.84 MGD. Crystal Spring is located on the north side of Mill Mountain in the City of Roanoke. -3- The Authority also maintains 1,237 miles of water mains, 57 pumping stations, and 5,723 fire hydrants and 62 well facilities in the service area. The Authority began operations in Franklin County during fiscal year 2009. The Authority purchased several private water systems in the Smith Mountain Lake area and began operations in January 2009. In May 2009, the County of Franklin and the Authority entered into a water system transfer agreement where the County conveyed the ownership of the transmission and distribution system along State Route 122 from the Franklin - Bedford County line to Westlake Town Center to the Authority. The plan also authorizes the Authority to proceed to develop line extensions in the area which will interconnect some of the private systems purchased by the Authority. The Scruggs Road water line extension was completed in 2010. This water line interconnects the customers in the Westlake Town Center with several of the water systems in the Smith Mountain Lake area. The Authority authorized the acquisition of the Petrus Water Systems and the Lake Watch Wastewater System in November 2015. At that time, the Authority assumed operation of the Land's End water system, and that system was interconnected to the existing Contentment Island and Lakeside system in June 2016. Botetourt County officially joined the Authority on July 1, 2015. A new pump station on Roanoke Boulevard was constructed and put it into service on December 12, 2015 enabling water from Carvins Cove to serve the Greenfield area. After an interconnection was installed, the Tinkerview Gardens community began receiving Carvins Cove water on January 20th. The Botetourt service area expanded as the Authority authorized the acquisition of the Eagle Rock Water Company in January 2016, a water system serving 84 accounts with two additional locations that are vacant. The Eagle Rock wastewater facility was previously acquired by the Authority when Botetourt County joined the Authority. The Roanoke Regional Water Pollution Control Facility serves the City of Roanoke, Roanoke County, the City of Salem, the Town of Vinton and portions of Botetourt County. The Water Authority treats 38 million gallons of wastewater a day from throughout the valley for its 56,741 sewer customers (more than 186,000 residents including bulk contracts described below). The facility's permitted capacity was increased to 55 MGD with the completion of a three year construction project. The original plant was constructed in 1951, and major upgrades were made in 1959, 1977, 1998, 2004, 2007 and in 2016. The most recent upgrade, the Peak Flow Enhancement Project, allows the Roanoke Regional Water Pollution Control Plant to treat and discharge more flow to the Roanoke River during high river stage events. The project involved construction of a new chlorine contact basin, new effluent screw pumps and modifications to the Biological Aerated Filter (BAF). The Authority's collection system consists of 987 miles of sewer gravity mains, over 25,961 manholes, 27 lift stations. The Authority has bulk wastewater treatment agreements with the City of Salem and the Town of Vinton. These jurisdictions share in the Regional Wastewater Treatment Plant 10 capacity and plant upkeep. The agreements include the cost of treatment and the capital maintenance on the regional facility. In December 2008, Franklin County and the Authority entered into an operating agreement for the Westlake Village Central Sewer System covering the Westlake Overlay area of Franklin County. Under the agreement, the Authority contracted to purchase and to operate the wastewater system which is being financed by the County. Additional collection system lines were constructed in 2010 to provide service to more customers. At the formation of the Authority in 2004, a six - year rate equalization plan was developed to achieve equal user rates for customers in the City of Roanoke and Roanoke County by 2010. This has been completed with the Authority's customers in the City of Roanoke and Roanoke County now having the same user rates. Customers in Franklin County are under a separate user rate schedule. Botetourt County customers follow the same sewer rate schedule as the customers in the City of Roanoke and Roanoke County and Botetourt water customers are under a separate user rate schedule. Reorganization With the August 2019 retirement of Gary Robertson, Executive Director of Water Operations, the Authority's primary operating divisions were reorganized. The Water Pollution Control (WPC) Division and the majority of the Water Division were combined into a new group, Water Quality Operations. The remaining portion of the Water Division joined Field Operations along will Billing and Customer Service, into a Customer Operations Group. The Customer Operations Division (CO) handles customer service, billing, collections, information technology, meter services and construction and maintenance of the Authority's water distribution and wastewater collection system. This new division is responsible for providing customers with a seamless service experience. The Water Quality Operations Division (WQ) is responsible for producing the highest quality drinking water for customers and for returning the highest quality treated wastewater back to our environment. This new division will consist primarily of physical assets of the old water operations and water pollution control divisions including treatment plants, storage tanks, pump station and lift stations. The new division is also responsible for non - revenue water reductions. Administrative Services is responsible for executive management to provide vision for the organization as well as other internal services of engineering, public relations, finance and human resources. Economic Condition and Outlook The Western Virginia Water Authority is located in the Roanoke Valley in South Western Virginia. The valley is located between the Blue Ridge Mountains on the east and the Alleghany Mountains to the west, with Interstate 81 running north and south. The -5- Authority's service area is contained in the Roanoke Metropolitan Statistical Area (RMSA). Area attractions include Smith Mountain Lake to the east and the Blue Ridge Parkway runs through the service area. The Roanoke area is the region's rail center and is the largest metropolitan area in western Virginia. The RMSA has a 2020 estimated population of 324,882 which includes the Cities of Roanoke and Salem and the Counties of Roanoke, Botetourt, Franklin and Craig. For 2020, the City of Roanoke's estimated population was 99,348, Roanoke County's population was estimated to be 93,805 Franklin County's population was estimated to be 55,782 and Botetourt County's population was estimated to be 33,494. The Authority serves approximately 87% of the RMSA. The principal employers of the area are the industries of manufacturing, retail trade, health care and government. Both the City and Counties of Roanoke and Franklin are proactive in attracting and developing new businesses which will lead to economic growth. Unemployment as of June 30, 2020 was estimated to be 7.9% for the City of Roanoke, 7.0% for the County of Roanoke, 3.4% for the County of Franklin and 3.7% for the County of Botetourt. During the period the Virginia average was 8.5% and the national average was 11.1 %. The Executive Director would like to note a number of accomplishments and achievements completed through the dedication and determination of the employees of the Western Virginia Water Authority (Authority). Major improvements, enhancements and expansions have been made to the water distribution and wastewater collection systems, as well as the treatment plants, to the benefit of all customers. Awards The Virginia section of the American Water Works Association (AWWA) and the Virginia Water Environment Association (VWEA), recognized Scott Shirley, Chief Operating Officer - Water Quality, with the Sonny Roden Meritorious Service Award for outstanding service to the VWEA and the wastewater industry. The award, which is not given annually, has only been awarded ten times in the last thirty -five years. Chris Carey, Field Operations Superintendent, was also recognized at the VA -AWWA meeting with the Sherry Williams Leadership Award for his work chairing the section's Distribution Committee. Chris was also elected to the Virginia section Board of Trustees. The Virginia section also recognized the Authority with its Employer Support Award for promoting continuing education and professional development of employees. The Finance Team was once again awarded the Certificate of Excellence in Financial Reporting by the Government Finance Officers Association for the FY 19 audit. The Authority's Operations Challenge Team competed in the National Operations Challenge completion in September, 2019 and came in 7th place overall with 44 teams competing. The Authority received the Neighborhood Arts Award at the 2019 City of Roanoke Neighborhood Awards Celebration. This award was for the installation of the Love SE sign -6- that is located next to the Greenway at the Regional Water Pollution Control Plant. The Authority was also nominated in the Neighborhood Community Partnership category. The Virginia Department of Health Office of Drinking Water (ODW) awarded the Spring Hollow Water Treatment Facility with the 2019 Excellence in Waterworks Operations/ Performance Award. Regional Initiatives Staff worked closely with Carilion and Whitman Requardt Ft Associates (WRA), LLP on relocating the Crystal Spring Pump Station. Once pumps are installed and operational in the portion of the Crystal Spring Water Treatment Facility that was formerly office space, the 1957 pumps and building can be decommissioned. This project was initiated as part of the overall site plan for the Carilion hospital expansion. The Roanoke Valley Broadband Authority extend fiber to Spring Hollow and the Western Regional Jail. Staff hosted the eighth Annual Regional Chainsaw and Cut -off Safety class taught by City of Virginia Beach employees in November, 2019 at the Cabin at Carvins Cove. Regional organizations sent employees to the training showcasing regional participation led by the Water Authority. This training prepares the region for emergency clean -up after storms and saves many limbs and lives. Staff participated in the Regional Apprenticeship Showcase at Green Ridge Recreation Center in January. The Registered High School Apprenticeship Program, started by the Authority in 2017, is now supported by more than ten other businesses in the valley. Thirty of the 160 students who attended the event signed -up to receive more information about the Authority's apprenticeship program, and eight students were later interviewed. -7- The CIP crews from Field Operations realigned a sewer line with compromised structural integrity along a stream bank for the Town of Boones Mill. The crew successfully abandoned the existing sewer line and installed 500 LF of new 8 -inch sewer main, two new manholes and performed stream bank restoration. The Town received funding to replace this main from the Federal Emergency Management Agency (FEMA) as it was damaged during the flooding associated with Hurricane Michael. Water Quality Division For the Fiscal Year ending June 30, 2020, the WPC Plant treated 13.77 billion gallons of wastewater, one of the highest years on record. 5,763 dry tons of Biosolids was land applied, and 3,609 septage loads were received. Average daily water production was 18.36 million gallons. Construction of the Muse Spring Treatment Facility was completed in April 2020. The plant has an average a production rate of 1.5 MGD. The Carvins Cove Filter Upgrade Project was completed that included the rehabilitation of six filters and underdrains that were originally installed in 1954. The new filters have a designed filtration rate of 4 gpm /ft2 which equates to 24 million gallons per day (MGD), and increase of the previous daily demand of 15 MGD. An operating agreement was finalized for Stripers Landing and Bluewater Bay water systems in Franklin County. The Authority began operating the two systems in October, 2019. Staff worked with representatives of the Uttermost Company, located in Franklin County, on the Grassy Hill Road water main extension. The $1.8M project was funded in equal parts by Franklin County, the Authority and Uttermost. This extension will increase fire protection at the Uttermost facility and bring water to several neighborhoods in the area that have been requesting service. Work continued on the Electrical Improvements at the Water Pollution Control (WPC) Plant with an underground conduit system installed around the WPC Plant to replace most of the current pole- mounted distribution system owned by AEP. Bids were received for the 138kv transformers that were placed on a utility lot at the facility. A cooperative purchasing agreement with the City of Salem was also finalized. Staff provided a status update on the Electrical Improvements capital project at the annual meeting with Partner Jurisdictions, the Town of Vinton and the City of Salem. Additionally, bulk sewer rates for FY 21 were reviewed with the Partner Jurisdictions. After two years of declines, rates increased approximately 17 %. Staff submitted an application to the Virginia Department of Environmental Quality (DEQ)'s Wastewater Revolving Loan Program for digester improvements at the WPC Plant. This $12.7M project includes rehabilitation of select digesters and purification of the 12 methane produced to pipeline quality that can then be sold to Roanoke Gas. A drone inspection of digesters #3 Et #5 was able to capture high resolution video allowing the contractor to assess the interior condition without entering the digesters. The digesters were found to be in relatively good condition given their age and amount of use. As expected, most damage appears to be in the roof structure. WPC Plant staff replaced the last two ferric storage tanks at the WPC Plant. The Staroverlake community entered into an agreement with the Authority to assume operation and ownership of their private water system in Franklin County. A new septage receiving station at the WPC Plant was completed. Crews from Field Operations assisted with the first phase of the project by installing a holding tank and wet well. WPC Plant staff then installed the screening equipment and pumps. The project allows septage to be sent directly to the biosolids digesters instead of the liquid treatment process. A new picnic shelter and mini amphitheater at Carvins Cove was completed. This cooperative project between Water Quality and Customer Operations will provide improved facilities and capacity for visitors and school groups. The newly created WPC Plant SCADA section created a unified system that will include best in class security. Staff worked with Verizon to create a Private LTE cellular network covering the Water Authority's operational area. Implementation of the network resulted in a more secure communication portal between remote sites. As part of this effort, the SCADA section has also completed an assessment of facilities and equipment and has developed a standard equipment and communication protocol which will be applied to new installations and as equipment in the SCADA network is replaced. Emergency Action Plans (EAPs) for all of the dams were updated and distributed to local Emergency Response Coordinators. A concrete deterioration survey, the two year P.E. inspection, and the PMP analysis / dam breach inundation study were completed for the Carvins Cove Dam. AECOM completed the dam break analysis and inundation zone study for the Clifford D. Craig Memorial Dam at Spring Hollow. Water Quality staff worked with GEI Consultants on specifications for a bid package to drill out the drain holes in the base of the Craig Dam as well as a Dam Safety Surveillance and Monitoring Plan (DSSMP). The Americas Water Infrastructure Act (AWIA) requires community water systems that serve more than 3,300 people to complete a risk and resilience (REtR) assessment and develop an emergency response plan. Items to be considered include preparations for natural disasters, accidents, etc. Using software developed specifically for REtR assessments, staff completed the task in- house, and submitted assessments for both the &02 Roanoke system, which includes portions of Botetourt County, and the Westlake system in Franklin County to the U.S. EPA on March 20. Water Quality personnel, with the assistance of a crew from the Bedford Regional Water Authority (BRWA), installed the piping and equipment to begin providing fluoridated water to customers of the SML Water Treatment Plant in July 2020. Hazen and Sawyer was selected as the consulting engineer for the Spring Hollow Treatment Facility - Long Term Facility Plan. The region experienced a second flooding event in as many months May 18th to 21st. The USGS Walnut Street gage recorded a crest on the Roanoke River of 15.89 feet on May 21st, a crest that ranked 8th highest for this gage, which has a data set going back more than 100 years. This wide spread rain event exceeded nine inches and covered the Authority's entire service area lasting four days. The storm frequency was estimated as a 50 -year event. The rains also caused the Carvins Cove Reservoir to exceed full pond with flow being diverted through the dam spillway. When flow in the spillway exceeds two -feet in depth, notification requirements are triggered which were made. The Cove's emergency action plan had just been reviewed and updated in December, 2019 so staff was prepared. This is the first time since the flood of 1985 that anyone could recall notifications being needed. Eventually spillway depth crested at 2.9 feet before receding. On June 17th, Carvins Cove reservoir once again reached Stage II flood conditions. The reservoir crested that afternoon at 2.5 feet above the spillway. By the next morning, it was down to 1.7 feet above the spillway. The Emergency Action Plan once again worked as it was designed. May flows at the Regional Water Pollution Control (WPC) Plant were also up substantially, averaging 63.96 mgd, with a peak of 136.58 mgd. For six consecutive days the plant received flows exceeding 100 mgd, and ten consecutive days with the flow exceeding 80 mgd. During the Authority's almost sixteen year history, only three months have had rainfall exceeding 10- inches. Monthly rainfall in Roanoke is typically moderate with most months averaging 3 to 3.5 inches. However, the Authority's capital improvements at the WPC Plant and the sewer collection system have resulted in fewer overflows, as shown in the chart below, and significant increases in flow captured and treated to permit conditions. Month Rainfall (in) Overflows Avg Flow (mgd) Peak Day Flow (mgd) Sep -04 11.72 90 39.72 49.57 Jul -13 12.73 114 64.04 125.9 May -20 11.44 50 63.96 136.6 -10- Customer Operations Field Operations completed the directional drilling portion of the Azalea Road project in Botetourt County, a project that took longer than expected due to the large amount of rock in the area. Staff pulled pipe to replace a problematic 8 -inch sewer main. CIP crews completed a directional drill as part of the Youngwood Drive Sewer Replacement Project by drilling and installing 510 LF of DR17 PVC main. The crew then mobilized to the Valley View Mall area to ream the interior of a 10 -inch sanitary sewer line that had lost capacity due to a buildup of tuberculation inside of the pipe, constricting the flow through over 300 LF of sewer line. Customer Operations implemented a Blue Hard Hat Program in October. The purpose of the program is r to maximize staff development in a condensed period of time with a focus on safety. The program relies on veteran employees guiding and mentoring those wearing blue hard hats in developing the skills and experience needed to successfully and safely grow in their positions. The blue hard hats create awareness amongst staff when there are employees with less } than three months experience with the Authority on a Y . jobsite and allows them to pay special attention to safety practices for these employees. Every employee in the program must complete a detailed checklist of tasks in order to demonstrate proper understanding and competence during the first three months of service. After successful completion of all required training tasks and signoff from their supervisors, the employees will graduate to a conventional white hardhat. December marked the two -year anniversary for the Authority Cares program. This program has been utilized to help customers financially impacted during the COVID -19 pandemic. Staff performed a cost comparison analysis between using trenchless technology for sewer pipe repairs versus the conventional "open cut" method. The results showed significant savings in time and cost when using trenchless technology for pipe repairs making it the preferred method to use whenever feasible. The pipe patch repair can be completed by three Technicians in approximately three hours compared to a typical ten -hour conventional pipe repair requiring four Technicians. In addition, approximately three pipe patch repairs can be performed for less than the time and cost to perform one conventional "open cut" pipe repair. In January, 2020, Customer Service staff had the best call statistics for the last 12 months with an answer rate of 96.5% and an average wait time of 29 seconds. The last time calls were answered at this rate was in December, 2017. By the end of the fiscal year, the number of customers registered on the CustomerWeb online portal increased to 32,796 registrations, and the number of customers registered for paperless billing increased to 13,769. The Sanitary Sewer Preventative Maintenance (SSPM) group utilized acoustic survey technology to assess the free space in a sewer pipe by sending sound waves through the pipe which mimics water flowing through the pipe. The data gathered from the survey and resulting score indicates the likelihood of a blockage in each segment. This provides a quick and efficient assessment of sewer mains so cleaning resources can be directed appropriately. It also helps to locate blockages in portions of the wastewater collection system without prior history. Additionally, it allows an opportunity for the SSPM crews to conduct manhole inspections as they setup the acoustic equipment at each manhole. With the creation of Customer Operations, the opportunity for cross - training arose as part of the inclusion of the Water Distribution section with Field Operations during the reorganization last fall. Throughout January, a team of Water Distribution operators cross - trained Utility Construction supervisors to turn off /on water valves when water breaks and repairs take place. With the Utility Construction supervisors already on -site during water main breaks, educating and empowering them to operate the water valves allows for improved efficiencies. Construction of the new water tank at the Summit View Business Park in Franklin County kicked off in January and was substantially completed in October, 2020. The tank was designed, and the project managed, by Field Operations. As part of the tank project, Field Operations CIP crews installed approximately 800 LF of new 12 -inch waterline to connect the on -site piping to the existing waterline along U.S. Route 220 that will feed the new tank. Franklin County and Visit Virginia's Blue Ridge logos were painted on the tank. An analysis was performed on the cost of emergency repairs performed by Field Operations. Over the past 12 months the highest number of emergency incidents were for sewer blockages at 459, but the total cost to resolve these blockages was only $148,027.50 compared to $326,093.60 for emergency repairs on 70 sewer mains over the same period. The average cost to repair a sewer main was $4,658.48. The average cost for an emergency repair on a water main varied from $2,218.49 for a 2 -inch main to $4,838.34 for a 12 -inch main. Over the past 12 months, 2 -inch water mains had the highest number of breaks with 70 while 4 -inch and 12 -inch water mains tied for the lowest number of breaks at 24. The average cost for a 12 -inch water main emergency repair consists of $1,168.34 for materials, $1,550.00 for paving/ restoration, $960 for labor and $480 in overtime pay, $480 for equipment cost and, on average over the 12 month period, $200.00 for traffic control. Due to the pandemic, disconnections for non - payment was put on hold on March 13th. With the time that staff would normally be working on non - payment water cut -offs, staff focused their efforts on performing visual inspections of water meters to assess their condition and verify service line material. -12- In March, Field Operations crews assisted the Water Quality Division in removing a 36 -inch water valve near the Boxley Pump Station in order to replace a failed seal. The crew was given a 24 -hour window during which the water could be turned off without significantly impacting water pressure in the service area. Crews began the project at 3 AM and continued non -stop until work was completed at 7 PM the same day with time to spare! The Water Distribution Group at Field Operations implemented a new system to better track the pressure reducing valves (PRVs) in the water distribution system. The Link2Valves software package is utilized to track parts and maintenance records for all of the PRVs in the system. A mobile app allows staff to use cell phones to instantly upload location data, model /serial numbers and pictures. Monthly reports from this program make it much easier to keep track of which valves are due for maintenance. Implementation of the program will consist of three phases with the ultimate goal of interfacing the data into the Authority's asset management system. Administrative Services The Authority was awarded a $5,000 grant from VRSA, the Virginia Risk Sharing Association (formerly VML Insurance) towards the purchase a safety notification and education system. The digital signage system will broadcast safety education materials, messages, training notices, etc. to staff from monitors placed in break rooms across divisions. Staff represented the Authority at the Virginia Career Works - Blue Ridge to career explore with 5,000 7th graders from the greater Roanoke Valley in September 2019. Staff occupied two booths with multiple hands -on activities for students to explore careers at the Authority involving GIS, lab work, meter installation, water treatment, wastewater treatment and field activities. The Career Quest was a success for the area and expected to continue annually with the hope of interested students being employees in the future. Also in September, staff hosted and presented at the 3rd annual Operations and Maintenance Distribution Systems (OMDS) "Short School ". This week -long course, presented by Virginia Department of Health and Virginia Tech, was devoted to all aspects of the operation and maintenance (O&M) of water distribution systems. Authority staff presented on a variety of professional subjects (water main breaks, safety, meters) for other localities attending the event at multiple Authority properties. FY20 Capital Improvement projects included a focused effort by staff on enhanced coordination with Roanoke City Transportation and paving schedules. Design and construction continued to progress in city- identified neighborhood blitz areas, and staff initiated planning for projects for the next fiscal year. Engineering Services staff worked with Authority Counsel to develop an agreement and related documents to address the disposition of existing water system infrastructure serving the Roanoke Industrial Center on 9th Street in Southeast Roanoke. This includes delineation of infrastructure ownership and new water line easements needed to complete a water distribution loop to serve the Industrial Center. The work is in support -13- of the Industrial Development Et Investment Company's redevelopment efforts for the facility and will greatly improve reliability and fire protection for the site. Staff helped organize and attend a new annual Utility Worker Honor Walk on October 26th with other local underground utilities to promote awareness of employees lost during the past year. Staff provided heavy equipment, vehicles and demonstration of safe work practices at the Water Authority. Also on October 26, staff participated in the National Drug Take -Back Day. Residents turned in 2,542.8 pounds of unwanted or expired medications at 14 collection sites around the valley. Since 2010 when this program started, 37,645 pounds of medication have been collected for safe disposal at these semi - annual events. The April event was cancelled due to the pandemic. In an effort to improve water service, fire protection, and water quality for this portion of the service area, the Hollymeade -Glebe Road Extension in Botetourt County consisting of approximately 6,000 LF of 12 -inch water main was installed to interconnect the existing main at The Glebe to a main from the Greenfield Water Tank. The new line also positions the Auithority for additional service improvements in other nearby neighborhoods and main extensions to support future economic development needs. Staff installed pipe to interconnect the Lakewood Forest Et Weatherwood systems in the SML area of Franklin County to the main along Scruggs Road. An additional 2,600 LF of 4- inch main is being installed within the subdivision. During the month of March, 2020, the Authority moved from preparation to implementation of its pandemic plan including dispersing staff through staggered shifts and telework options, reducing in- person customer interactions by closing the payment lobby and suspending fees at Carvins Cove, enhanced cleaning of workspaces, deploying updated leave policies for employees, and issuance of personal protective equipment. Five Customer Service representatives answered calls from home through the At -Home Agent software tool that was implemented in 2016. Due to the lobby closing, the percentage of payments processed manually dropped to the lowest percentage in the Authority's history. An analysis of the number of customers visiting the office to make a payment showed that, on average, 2,706 customers visited the office each month between July 2019 and February 2020, prior to the COVID -19 impact. During March, 1,762 customers visited the office, paying either in- person or depositing their payments in the cash drop box inside the building. With the payment lobby closed in April and May, 577 customers in April and 553 in May visited the office and used the cash drop box inside the building to deposit their payments. Disconnection of service for non - payment was put on hold on March 13th. Fifty -one employees were set up with Cisco WebEx conferencing software allowing work teams throughout the Authority to continue meeting while working remotely. Although Carvins Cove Natural Reserve remained open, fee collection at Carvins Cove was temporarily suspended to minimize the public's interaction with staff until an online payment option could be established. Boat rentals were also suspended for the season. -14- The Authority's Public Outreach team has run a number of social media campaigns to recognize staff and the role they play in managing the valley's water resources and to remind customers not to flush disposable wipes. HR staff developed procedures in April to have a virtual benefit open enrollment process in May. Because classroom visits and field trips were suspended due to the COVID19 social distancing requirements, the Public Relations staff developed videos of our in -class presentations and facility tours so that the outreach to our community can continue. These videos are publically available on the Western Virginia Water Authority YouTube channel. On -line benefit open enrollment was completed during the month with 100% participation of full -time and part time staff. Employees completed benefit updates within eight days which is less time than previous years. Health Insurance was provided as a self - funded option this year. Wastewater samples from the WPC Plant and the Town of Fincastle were submitted as part of a national study to detect virus particles in wastewater. Staff advertised a Request for Proposals (RFP) for professional engineering services to assist with development of Comprehensive Water and Sewer Infrastructure Master Plans. The water and sewer infrastructure master planning project will advance implementation of several strategies and objectives included in the Authority's 2020 Strategic Plan Update related to Sustainable Practices and Resource Management. The planning includes all of the Authority's service area with an initial detailed focus on system assets, service opportunities and expansion in Botetourt County and Franklin County. Staff continues to make progress implementing several other strategic initiatives outlined in the recently completed Asset Management and GIS Needs Assessment. Working with IT staff, completion of the initial upgrade of GIS software is complete. Further upgrades and enhancements to the GIS will continue as we also begin focus on the Asset Management components of the initiative. Staff is taking a fresh look at our asset management program and software upgrades with an emphasis on leveraging asset and condition assessment data, enhanced risk -based decision making, criticality analyses, planning tools, geospatial visualization, and improved modeling capabilities. Human Resources reported that there were no terminations, retirements or voluntary resignations during April. This is believed to be a first. A total of 37,732 Miss Utility location tickets were processed by Field Operations staff during the Fiscal Year. In April, 4,001 tickets were marked which is the highest for Fiscal Year 2020. Four apprentices were hired to full time status, bringing the total to five since the program started three years ago. Two of the apprentices are high school graduates this year. Full time positions filled have been with Water Treatment, Wastewater Treatment, Field Operations and Meter Operations. The program is exceeding expectations. -15- Relevant Financial Policies Accounting System Ft Budget Control The Authority's accounting records are maintained on an accrual basis under which revenues are recognized when earned and expenses are recognized when incurred. Accounting functions are separated to the extent possible for a small sized staff. The County of Roanoke, under the Operating Agreement between the City of Roanoke and County of Roanoke provides fleet and fuel management services to the Authority. Under the Water and Waste Authorities Act, the Authority is not required to adopt a legal budget, but its bylaws and bond covenants states the Authority's Board of Directors must adopt an annual budget before the first day of each fiscal year. The budget is prepared by the finance and administration divisions and serves as a framework for the Authority's financial planning for the year. The Executive Directors have authorization from the Board to move funds within the line item budget without additional Board approval. A report of revenues and expenses is presented to the Board each month at the public meeting. The annual budget process includes use of rate modeling to prepare a five year plan which is used to assure that short and long term financial objectives are being met. A five year Operational and Maintenance forecast and a five year Capital Improvement Plan are prepared annually in the budget process. The Authority's finances are organized into two funds, Water and Water Pollution Control. The Water fund fully supports debt incurred for water facilities and the water capital improvement plan, as well as fully funding the water operations division and 50% of the operation of field operation, engineering services, finance and administration, and utility internal services. The WPC Fund supports debt incurred for wastewater facilities, the wastewater and water pollution control plant capital improvement plans, the operations of the water pollution control division, and 50% of the operations of field operations, engineering services, finance and administration, and utility internal services. The Authority has in place a fiscal policy as a component of its financial strategic plan that will preserve and improve the sound financial condition of the Authority. The policy outlines the targeted levels and timeframe to fund several reserve funds including contingency reserve and emergency operating reserve funds. These funds will accumulate to reach an appropriate level over a 10 to 15 year period. Risk Management The Authority relies on several techniques to minimize risk: safety training for employees, proper maintenance of equipment and facilities, continued observation for potential hazards, and prompt response upon discovery of a problem. Not only do these actions reduce potential risks to the Water Authority, they are also sound business practices that -16- improve customer service and overall organizational performance. Worker's compensation, property, vehicle, equipment and liability insurance services are carried by Virginia Municipal League. Note 10 of the Notes to Financial Statements provides additional information on risk management. Cash Management Cash and investments are maintained by the Authority. An investment policy acts to guide the investment of Authority funds in accordance with the terms of the Virginia Water and Waste Authorities Act. The policy's primary objectives are safety of principal, liquidity of funds and yield on investment. Note 2 of the Notes to Financial Statements will provide the reader with additional information. Debt Administration Total long -term debt obligations outstanding for the Authority as of June 30, 2020 were $143,630,601. Of this amount, $74,640,697 is for the Water fund and $68,989,904 for the WPC fund. A debt policy is in place which sets forth comprehensive guidelines for the financing of capital expenditures. Objectives of the policy are to assure the credit rating of the Authority stays strong and that the Authority conforms to the applicable state and federal laws and existing indenture covenants. Annual review of specific debt ratios is required. Note 4 of the Notes to Financial Statements will provide additional information to the reader. Asset Management The Authority is committed to a best practices approach to managing its infrastructure capital assets that provides a means to protect, maintain, or improve the asset value of our water distribution system and wastewater collection systems with planned maintenance and repair based on predicted deterioration of the systems. Major parts of the asset management program are the five - year capital plan, the geographical information system (GIS), the financial rate model, the work order system and the SCADA system. Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded for a fifteenth straight year the Certificate of Achievement for Excellence in Financial Reporting to the Western Virginia Water Authority for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2019. In order to be awarded a Certificate of Achievement, the Authority had to publish an easily readable and efficiently organized CAFR that satisfies both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. -17- We would like to express our appreciation to the members of the finance department who have worked with dedication to prepare this report. We also wish to thank the Board of Directors of the Authority for their commitment to financial excellence and their support. Michael T. McEvoy Executive Director -18- Tammy Lawfield Director of Finance m )/\ \{/ E 4 §) < k ) }){ k \a j) � 0 ®_± {/ ) \�: u IL \ � m O�/ )) \� \0 ) m )/\ \{/ E 4 ) #§ k )) +05 k \a } )\ C) L )\ « \�: u IL \ 20NEZ5 *A\7 it\ 3 °0 * \° _] f \ § 2 � � \� � � - « ` ■ § \ jE ) 3 \ c = = o E 4 ) #§ : §/ )) +05 k \a } )\ C) L )\ « \/ \ � � ) )} \� \ ! _] f \ § 2 � � \� � � - « ` ■ § \ jE ) 3 \ c = = o m CL /ƒ < 2 /E E 4 ) #§ : §/ )) +05 k \a } )\ C) L )\ \/ \ m CL /ƒ < 2 /E E ) #§ : §/ §_ 3i ! __ k ({ k\ \) w CL \\/ \/ \ } ) )} \� m CL /ƒ < 2 /E E ) � � k \ } kk Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Western Virginia Water Authority For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 Executive Director /CEO -20- ROBINSON, FARMER, COX ASSOCIATES, PLLC CPAs I CONSULTANTS Certified Public Accountants Indeuendent Auditors' Report To the Board of Directors Western Virginia Water Authority Roanoke, Virginia Report on the Financial Statements We have audited the accompanying financial statements of the business -type activities of the Western Virginia Water Authority, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Authorities, Boards, and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. -21- Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business -type activities of the Western Virginia Water Authority, as of June 30, 2020, and the changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and schedules related to pension and OPEB funding on pages 24 -31 and 80 -90 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Western Virginia Water Authority's basic financial statements. The introductory section, supporting schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supporting schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supporting schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. -22- Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 23, 2020, on our consideration of the Western Virginia Water Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Western Virginia Water Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Western Virginia Water Authority's internal control over financial reporting and compliance. Blacksburg, Virginia October 23, 2020 IM Western Virginia Water Authority Management's Discussion and Analysis For the Year Ended June 30, 2020 As management of the Western Virginia Water Authority, (the "Authority "), we offer readers of our financial statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended June 30, 2020. We encourage readers to consider information presented here in conjunction with our letter of transmittal, which can be found on page 2 through 18. Financial Highlights • The assets and deferred outflows of resources of the Authority exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $341,305,885 for the Water fund and $253,777,268 for the WPC fund. Of this amount $26,565,703 for the Water fund and $13,519,382 for the WPC fund are unrestricted net position and may be used to meet the Authority's ongoing obligations to customers and creditors. • Operating revenues for the Water fund increased $882,781 over 2019 levels due primarily to an increase in customer charges. Operating revenues for the WPC fund decreased $85,706 over 2019 due primarily to decrease in bulk sales and other revenue and partially offset with increase in customer charges and fire services. • Operating expenses for the Water fund increased $898,432 from 2019 due to increases in field operations, internal services and depreciation. Expenses increased $2,326,643 for the WPC fund from 2019 due to increases in field operations. • Total long -term debt for the Authority decreased $8,518,683 in 2020 due to retirements of long term debt on both the Water and WPC Funds. Water fund debt decreased $6,959,144, which was attributed to retirements, while the WPC fund debt decreased for the year by $1,559,539 for both issuances and retirements. Overview of the Financial Statements: This discussion and analysis is intended to serve as an introduction to the Authority's basic financial statements. Since the Authority is engaged only in business - type activities, its basic financial statements are comprised of two components: 1) enterprise fund financial statements and 2) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Enterprise fund financial statements. The enterprise fund financial statements are designed to provide readers with a broad overview of the Authority's finances, in a manner similar to a private sector business. The statement of net position presents information on the Authority's 1) assets and deferred outflows of resources and 2) liabilities and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The statement of revenues, expenses and changes in net position presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. earned but unused vacation leave). The basic enterprise fund financial statements can be found on pages 32 through 34 of this report. Notes to financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes to financial statements can be found on pages 35 through 79. -24- Overview of the Financial Statements (Continued) Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Authority's progress in funding its obligation to provide pension and OPEB benefits to its employees. Financial Analysis As noted earlier, net position may serve over time as a useful indicator of an Authority's financial position. In the case of the Authority, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $595,083,153 and $572,894,088, at June 30, 2020 and 2019, respectively. In the Water fund, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $341,305,885 and $328,211,245, at June 30, 2020 and 2019, respectively. For the WPC fund, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $253,777,268 and $244,682,843, at June 30, 2020 and 2019, respectively. By far the largest portion of the Water and WPC fund's net position reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. For the Water fund, 92.2% is invested in capital assets net of related debt. For the WPC fund, the percentage is 94.7 %. The Authority uses these capital assets to provide services to its customers; consequently, these assets are not available for future spending. Although the Authority's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Table A presents the Condensed Statement of Net Position for the years ended June 30, 2020 and 2019 by fund. At June 30, 2020, and 2019, unrestricted net position was $26,565,703 and $26,236,924, respectively, for the Water Fund. Of total net position for the Water fund, unrestricted net position represented 7.8% and 8.0% at June 30, 2020 and 2019, respectively. At June 30, 2020 and 2019, unrestricted net position was $13,519,382 and $16,628,357, respectively, for the WPC Fund. Of total net position for the WPC fund, unrestricted net position represented 5.3% and 6.8% for fiscal year 2020 and 2019, respectively. Table A Condensed Statement of Net Position Years ended June 30, 2020 and 2019 -25- Water Fund Water Pollution Control Fund Total 2020 2019 2020 2019 2020 2019 Assets: Current and other assets $ 35,558,749 $ 38,712,185 $ 25,523,256 $ 24,060,777 $ 61,082,005 $ 62,772,962 Capital assets, net 384,806,361 377,093,318 301,068,358 295,001,320 685,874,719 672,094,638 Totalassets $ 420,365,110 $ 415,805,503 $ 326,591,614 $ 319,062,097 $ 746,956,724 $ 734,867,600 Deferred outflows of resources: $ 1,534,864 $ 1,323,294 $ 1,270,729 $ 961,397 $ 2,805,593 $ 2,284,691 Liabilities: Long -term debt outstanding $ 69,520,163 $ 76,479,307 $ 63,486,981 $ 65,046,520 $ 133,007,144 $ 141,525,827 Other liabilities 10,485,505 11,595,531 9,894,005 9,267,249 20,379,510 20,862,780 Total liabilities $ 80,005,668 $ 88,074,838 $ 73,380,986 $ 74,313,769 $ 153,386,654 $ 162,388,607 Deferred inflows of resources: $ 588,421 $ 842,714 $ 704,089 $ 1,026,882 $ 1,292,510$ 1,869,596 Net Position: Net investment in capital assets $ 314,740,182 $ 301,974,321 $ 240,257,886 $ 228,054,486 $ 554,998,068 $ 530,028,807 Unrestricted 26,565,703 26,236,924 13,519,382 16,628,357 40,085,085 42,865,281 Total net position $ 341,305,885 $ 328,211,245 $ 253,777,268 $ 244,682,843 $ 595,083,153 $ 572,894,088 -25- Financial Analysis (Continued) The total long -term debt outstanding to net capital assets are 18.1% for the Water fund and 21.1% for the WPC fund at June 30, 2020. The percentage decreased slightly from 2019 for both the Water and WPC funds. This ratio shows the existing debt leverage of capital assets and indicates that the Authority is not heavily leveraged relative to the size of its net capital assets. The total long -term outstanding liabilities to net capital assets were 20.3% for the Water fund and 22.0% for the WPC fund at June 30, 2019. The current ratio for the Water fund for the years ended June 30, 2020 and 2019 was 2.50 and 2.37 respectively. The current ratio for the WPC fund for the years ended June 30, 2020 and 2019 was 1.53 and 1.91, respectively. The combined funds have a current ratio for the years ended June 30, 2020 and 2019 was 2.04 and 2.17, respectively. The current ratio compares current assets to current liabilities. This ratio is a liquidity ratio and shows the ability of the company to pay its current liabilities with its current assets. Table B presents the Condensed Statement of Revenues, Expenses and Changes in Net Position for the years ended June 30, 2020 and 2019 by each fund. -26- Table B Condensed Statement of Revenues, Expenses and Changes in Net Position Years ended June 30, 2020 and 2019 Water Fund Water Pollution Control Fund Total 2020 2019 2020 2019 2020 2019 Operating Revenues: Customer charges $ 30,787,729 $ 30,055,104 $ 29,806,176 $ 29,275,296 $ 60,593,905 $ 59,330,400 Connection fees 261,673 168,350 156,750 86,400 418,423 254,750 Bulk sales 207,235 158,745 1,750,580 2,299,175 1,957,815 2,457,920 Fire services 1,499,946 1,454,906 483,658 - 1,983,604 1,454,906 Otherrevenues 1,150,339 1,187,036 881,472 1,503,471 2,031,811 2,690,507 Total operating revenues $ 33,906,922 $ 33,024,141 $ 33,078,636 $ 33,164,342 $ 66,985,558 $ 66,188,483 Operating Expenses: Operating expenses $ 9,175,903 $ 9,135,318 $ 10,933,064 $ 10,666,794 $ 20,108,967 $ 19,802,112 Field operations 4,222,290 3,980,138 5,047,836 3,351,904 9,270,126 7,332,042 Internal Services 3,805,630 3,552,951 3,805,630 3,552,951 7,6115260 7,105,902 Depreciation expense 8,306,697 7,943,681 7,969,119 7,857,357 16,275,816 15,801,038 Total operating expenses $ 25,510,520 $ 24,612,088 $ 27,755,649 $ 25,429,006 $ 53,266,169 $ 50,041,094 Operating income $ 8,396,402 $ 8,412,053 $ 5,322,987 $ 7,7355336 $ 13,719,389 $ 16,147,389 Nonoperating Revenues (Expenses): Interest earned $ 341,835 $ 465,200 $ 486,946 $ 501,009 $ 828,781 $ 9665209 Rental income 730,152 757,539 69,295 96,213 799,447 853,752 Gain (loss) on disposal of assets 20,842 28,127 18,204 11,970 39,046 40,097 Nonoperating contributions 543,954 724,174 - - 543,954 724,174 Rental expense (103,217) (120,599) (103,217) (120,599) (206,434) (241,198 Interest expense (2,084,038) (2,329,826) (1,518,540) (1,580,171) (3,602,578) (3,909,997) Total nonoperating revenues (expenses) $ (550,472) $ (475,385) $ (1,047,312) $ (1,091,578) $ (1,597,784) $ (1,566,963) Income (loss) before contributions $ 7,845,930 $ 7,936,668 $ 4,275,675 $ 6,643,758 $ 12,121,605 $ 14,580,426 Capital contributions 5,248,710 3,205,149 4,818,750 2,589,799 10,067,460 5,794,948 Changes in net position $ 13,094,640 $ 11,141,817 $ 9,094,425 $ 9,233,557 $ 22,189,065 $ 20,375,374 Total net position, beginning of year 328,211,245 317,069,428 244,682,843 235,449,286 572,894,088 552,518,714 Total net position, end of year $ 341,305,885 $ 328,211,245 $ 253,777,268 $ 2445682,843 $ 595,083,153 $ 572,894,088 -26- Review of Operations Operating revenues for the Water fund increased $882,781 from the year ended June 30, 2019 to the year ended June 30, 2020. Customer charges increased 2% due to a rate increase in January 2020. Bulk sales increased $48,490 from 2019 revenues due to increased quantities sold. Income from connection fees increased by $93,323. Fire service revenues increased $45,040 over last year while other revenues decreased from last year by $36,697. Operating revenues for the WPC fund decreased $85,706 from the year ended June 30, 2019 to year ended June 30, 2020. Customer charges increased $530,880 or 2% over 2019. Revenue from other charges decreased $621,999 from the year ended June 30, 2019 to the year ended June 30, 2020. The operating margins for the Water and WPC funds were 49% and 40 %, 50% and 47 %, respectively, for the years ended June 30, 2020 and 2019. The operating margin indicates the financial margin by comparing operating expenses (less depreciation) with operating revenues. A healthy operating margin indicates that the organization has adequate funds to cover interest and capital requirements. Median operating margins typically range from 30% to 40% for water and sewer utilities. Capital Asset and Debt Administration Capital Assets. The Authority's investment in capital assets (net of accumulated depreciation) totaled $685,874,719 and $672,094,638, at June 30, 2020 and 2019. Tables C and D present the Net Capital Assets by fund for the years ended June 30, 2020 and 2019. The Water funds' net capital assets increased $7,713,043 or 2.0% from June 30, 2019 to June 30, 2020. Capital assets increased $15,891,413 during the year while depreciation expense totaled $8,306,697. Capital projects closed for the year were primarily waterline replacement projects. Construction in progress balances decreased $22,222 from June 30, 2019 to June 30, 2020. Net capital assets for the WPC fund increased $6,067,038 from June 30, 2019 to June 30, 2020. Capital assets increased $13,948,548 as new projects were started at the Regional Water Pollution Control Plant. Depreciation expense totaled $7,969,119. Capital projects closed and assets placed in service for the WPC fund included various sewer line projects. Additional information regarding the Authority's capital assets is located in Note 3 of the Notes to Financial Statements. -27- Capital Assets - Water Fund Net of Accumulated Depreciation Years Ended June 30, 2020 and 2019 Water supply Treatment Transmission and distribution lines Pumping and storage Services General equipment and transportation Less accumulated depreciation Table C Fiscal Year 2020 2019 $ 73,820,335 $ 73,820,335 68,088,959 63,765,809 209,611,298 201,198,550 19,754,148 19,239,582 88,342,674 86,321,980 15,608,900 15,003,623 (128,812,783) (120,634,413) Net depreciable assets $ 346,413,531 $ 338,715,466 Construction in progress $ 19,034,530 $ 19,056,752 Land 19,358,300 19,321,100 Net capital assets $ 384,806,361 $ 377,093,318 Capital Assets - Water Pollution Control Fund Net of Accumulated Depreciation Years Ended June 30, 2020 and 2019 Collection facilities General Plant Treatment Pumping and metering Services General equipment and transportation Other Plant Power generation equipment Less accumulated depreciation Net depreciable assets Construction in progress Land Table D Fiscal Year 2020 2019 $ 262,560,625 $ 256,070,647 62,472 62,472 137,450,571 137,413,838 5,470,779 5,470,779 29,180,810 28,846,005 15, 215, 268 14, 915, 681 319,693 319,693 385,272 385,272 (175,986,531) (168,105,021) $ 274,658,959 $ 275,379,366 23,581,978 2,827,421 16,794,533 2,827,421 Net capital assets $ 301,068,358 $ 295,001,320 -28- Capital Asset and Debt Administration: (Continued) Major capital asset events during the fiscal year ended June 30, 2020 included the following: • Upgrades to the Carvins Cove Filter continued in fiscal year 2020 totaling $4,245,198. • Waterline replacement and paving projects on Route 220 to Rocky Mount totaling $7,189,358 and Hersh berger /Williamson Road totaling $4,910,583. • An interconnection project between the Lakewood Forest and Weatherwood water systems at Smith Mountain Lake totaling $1,471,832. • Purchases of capital equipment and vehicles totaled $578,751 for the Water fund and $247,287 for the WPC fund. • A sewer line improvement project on Salem Turnpike totaling $1,787,867. • A system -wide manhole rehabilitation project continued in fiscal year 2020 totaling $357,741. Major capital asset events during the fiscal year ended June 30, 2019 included the following: • Waterline replacement projects on Melrose Avenue /Peters Creek Road, Hollins Road, Hamilton Terrace, Westside Boulevard, Raleigh Court Area, Amber Way Circle, Edgewood Street /Windsor Avenue and Syracuse Avenue totaling $8,540,974.18. • Water Storage Tank improvements totaling $625,531.82. • Continuation of an interconnection project to Royal Estates at Smith Mountain Lake totaling $594,252.40. • Rutrough Road Improvements for Phase 2 totaled $1,351,336.98 for the Water Fund and $1,465,959.02 for the WPC fund. • Purchases of capital equipment and vehicles totaled $865,616.56 for the Water fund and $1,275,539.12 for the WPC fund. • Sewer line replacement and improvement projects on Harvest Lane, Patterson Avenue, Epperley Avenue and Greenbrier Avenue totaled $3,223,755.52 Debt Administration. Table E presents the long -term debt outstanding of the Authority at June 30, 2020 and 2019. Note 4 of the Notes to Financial Statements provides additional information about the activity during the fiscal year and balances at June 30, 2020. During the fiscal year ended June 30, 2020, the Water Fund issued debt totaling $845,516 and retired debt of $6,944,041. The WPC fund issued debt totaling $5,095,840 (including premiums) and retired debt of $6,445,236. During the fiscal year ended June 30, 2019, the Water Fund issued debt totaling $6,065,517 (including premiums) and retired debt of $5,712,933. There was no new debt issued during the fiscal year ending June 30, 2019 on the WPC Fund and $6,966,030 of debt was retired. -29- Capital Asset and Debt Administration: (Continued) Table E Long -Term Debt Outstanding Years Ended June 30, 2020 and 2019 Water Fund Revenue bonds Locality compensation payments Premiums on issuances Long -term debt Water Pollution Control Fund Revenue bonds Locality compensation payments Premiums on issuances Long -term debt Fiscal Year 2020 2019 64,269,521 $ 69,988,762 845,516 1,224,800 4,405,126 5,265,745 69,520,163 $ 76,479,307 55,433,696 $ 56,743,932 5,785,000 6,760,000 2,268,285 1,542,588 63,486,981 $ 65,046,520 In fiscal year 2020, the Authority submitted final draws related to the 2018C VRA debt totaling $2,786,696. In fiscal year 2019, the Authority submitted final draws related to the 2017C VRA debt totaling $8,083,286.15. Additionally, the Authority submitted the first draws related to the 2018C VRA debt totaling $3,325,003.08, which is related to revenue bonds of $5,490,000 issued in fiscal year 2019 by the Water Fund for water replacement and improvement projects. The Authority has a debt policy which sets forth comprehensive guidelines for the financing of capital expenditures. The policy details a number of ratios to be monitored throughout the year and in the five year budget plan to ensure that the debt level and creditworthiness of the Authority remain sound. The Authority's debt service coverage for the year ended June 30, 2020 was 1.96 times for the Water fund. The Water fund's debt service coverage for the year ended June 30, 2019 was 2.19 times. The debt service coverage for the WPC fund was 1.81 times for the year ended June 30, 2020. The debt service coverage for the WPC fund was 1.95 times for the year ended June 30, 2019. The Authority's bond issues require a minimum coverage of 1.15 times for its water and wastewater revenue bonds. Locality compensation debt of the Water and WPC funds require only 1.0 times. The Authority has met its debt service coverage for the fiscal year. Net take down is a ratio to measure the share of revenues remaining after payment of operating expenses. The net take down for the Water fund for the year ended June 30, 2020 is 53% and 43% for the WPC fund. The ratio for the combined funds is 48 %. The net take down for the Water fund for the year ended June 30, 2019 was 53% and 49% for the WPC fund. The ratio for the combined funds was 51% for fiscal year 2019. -30- Capital Asset and Debt Administration: (Continued) Total outstanding long -term debt per customer is a measurement that indicates the existing debt burden attributable to each customer. The total outstanding long -term debt at year ended June 30, 2020 per customer is $1,133 for the water fund and $1,125 for the WPC fund. The total outstanding long -term debt at year ended June 30, 2019 per customer was $1,252 for the water fund and $1,158 for the WPC fund. This information is presented in Table 11. Requests for Information This financial report is designed to provide a general overview of the Authority's finances for the reader. Questions concerning information provided in this report or requests for additional financial information should be addressed to the Western Virginia Water Authority, Finance Department, 601 South Jefferson St., Suite 210, Roanoke, VA 24011. -31- Basic Financial Statements WESTERN VIRGINIA WATER AUTHORITY 6,169,513 Current liabilities: 2,454,711 Exhibit 1 Statement of Net Position Customers' deposits 2,442,534 Accrued interest payable 681,617 At June 30, 2020 650,317 Revenue bonds payable- current portion 6,724,992 Locality compensation payments payable- current portion 424,901 Total current liabilities $ 13,165,181 $ Noncurrent liabilities: Compensated absences -net of current portion $ 388,275 $ Revenue bonds payable -net of current portion Water Locality compensation payments payable -net of current portion 420,615 Net pension liability Water Pollution 2,367,843 Total noncurrent liabilities $ 66,840,487 $ Fund Control Fund Total ASSETS Pension related items $ 509,813 $ OPEB related items 78,608 Current Assets: $ 588,421 $ NET POSITION Net investment in capital assets Cash and cash equivalents $ 26,354,024 $ 9,217,129 $ 35,571,153 Investments statement. 2,112,869 2,112,869 4,225,738 Accounts receivable (net of allowance for uncollectibles) 3,702,766 4,131,486 7,834,252 Inventory of materials and supplies, at cost 331,887 1,965,244 2,297,131 Prepaid items 6,250 6,250 12,500 Notes receivable - current portion 84,904 104,736 189,640 Other receivables 350,542 228,346 578,888 Total current assets $ 32,943,242 $ 17,766,060 $ 50,709,302 Noncurrent Assets: Restricted Assets: Cash and cash equivalents $ - $ 5,014,457 $ 5,014,457 Total restricted assets $ - $ 5,014,457 $ 5,014,457 Other Assets: Net pension asset $ 219,908 $ 228,307 $ 448,215 Notes receivable - net of current portion 2,395,599 2,514,432 4,910,031 Total other assets $ 2,615,507 $ 2,742,739 $ 5,358,246 Capital Assets: Land $ 19,358,300 $ 2,827,421 $ 22,185,721 Construction work in progress 19,034,530 23,581,978 42,616,508 Buildings and system 475,226,314 450,645,490 925,871,804 Accumulated depreciation (128,812,783) (175,986,531) (304,799,314) Sub -total depreciable assets $ 346,413,531 $ 274,658,959 $ 621,072,490 Total capital assets, net $ 384,806,361 $ 301,068,358 $ 685,874,719 Total noncurrent assets $ 387,421,868 $ 308,825,554 $ 696,247,422 Total assets $ 420,365,110 $ 326,591,614 $ 746,956,724 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding $ 651,422 $ 328,801 $ Pension related items 708,669 754,313 OPEB related items 174,773 187,615 Total deferred outflows of resources $ 1,534,864 $ 1,270,729 $ LIABILITIES 6,169,513 Current liabilities: 2,454,711 Accounts payable and accrued expenses $ 2,240,820 $ Customers' deposits 2,442,534 Accrued interest payable 681,617 Compensated absences - current portion 650,317 Revenue bonds payable- current portion 6,724,992 Locality compensation payments payable- current portion 424,901 Total current liabilities $ 13,165,181 $ Noncurrent liabilities: Compensated absences -net of current portion $ 388,275 $ Revenue bonds payable -net of current portion 61,949,655 Locality compensation payments payable -net of current portion 420,615 Net pension liability 1,714,099 Net OPEB liabilities 2,367,843 Total noncurrent liabilities $ 66,840,487 $ Total liabilities $ 80,005,668 $ DEFERRED INFLOWS OF RESOURCES Pension related items $ 509,813 $ OPEB related items 78,608 Total deferred inflows of resources $ 588,421 $ NET POSITION Net investment in capital assets $ 314,740,182 $ Unrestricted 26,565,703 Total net position $ 341,305,885 $ The accompanying notes to financial statements are an integral part of this statement. -32- 980,223 1,462,982 2,805,593 3,928,693 $ 6,169,513 12,177 2,454,711 450,212 1,131,829 735,676 1,385,993 5,500,050 12,225,042 1,021,817 1,446,718 11,648,625 $ 24,813,806 350,282 $ 738,557 51,963,775 113,913,430 5,001,339 5,421,954 1,786,706 3,500,805 61,732,361 $ 128,572,848 73,380,986 $ 153,386,654 618,424 $ 1,128,237 85,665 164,273 704,089 $ 1,292,510 240,257,886 $ 554,998,068 13,519,382 40,085,085 253,777,268 $ 595,083,153 WESTERN VIRGINIA WATER AUTHORITY Statement of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2020 Exhibit 2 Water Water Pollution Fund Control Fund Total Operating revenues: Customer charges $ 30,787,729 $ 29,806,176 $ 60,593,905 Connection fees 261,673 156,750 418,423 Bulk sales 207,235 1,750,580 1,957,815 Fire service 1,499,946 483,658 1,983,604 Otherrevenues 1,150,339 881,472 2,031,811 Total operating revenues $ 33,906,922 $ 33,078,636 $ 66,985,558 Operating expenses: Operating expenses $ 9,175,903 $ 10,933,064 $ 20,108,967 Field operations 4,222,290 5,047,836 9,270,126 Internal services 3,805,630 3,805,630 7,611,260 Depreciation 8,306,697 7,969,119 16,275,816 Total operating expenses $ 25,510,520 $ 27,755,649 $ 53,266,169 Operating income (loss) $ 8,396,402 $ 5,322,987 $ 13,719,389 Nonoperating income (expenses): Interest earned $ 341,835 $ 486,946 $ 828,781 Rental income 730,152 69,295 799,447 Gain (loss) on disposal of assets 20,842 18,204 39,046 Nonoperating contribution 543,954 543,954 Rental expenses (103,217) (103,217) (206,434) Interest expense (2,084,038) (1,518,540) (3,602,578) Total nonoperating income (expenses) $ (550,472) $ (1,047,312) $ (1,597,784) Income before contributions $ 7,845,930 $ 4,275,675 $ 12,121,605 Capital contributions $ 5,248,710 $ 4,818,750 $ 10,067,460 Total capital contributions $ 5,248,710 $ 4,818,750 $ 10,067,460 Change in net position $ 13,094,640 $ 9,094,425 $ 22,189,065 Net position, beginning of year 328,211,245 244,682,843 572,894,088 Net position, end of year $ 341,305,885 $ 253,777,268 $ 595,083,153 The accompanying notes to financial statements are an integral part of this statement. -33- WESTERN VIRGINIA WATER AUTHORITY Statement of Cash Flows Year Ended June 30, 2020 Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Subsidy from local governments Net cash provided by (used for) noncapital financing activities Cash flows from capital and related financing activities: Additions to utility plant Proceeds from the sale of assets Principal payments on bonds Principal payments on locality compensation payments Contributions in aid of construction Proceeds from indebtedness Interest payments Rental income Rental expenses Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest income Net cash provided by (used for) investing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year (including $2,748,732 and $0, respectively reported in restricted accounts) Cash and cash equivalents at end of year (including $0 and $5,014,547, respectively reported in restricted accounts) Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Depreciation Changes in operating assets, liabilities, and deferred outflows and inflows of resources: (Increase) decrease in receivables (Increase) decrease in inventories (Increase) decrease in prepaid items (Increase) decrease in net pension asset (Increase) decrease in pension related deferred outflows (Increase) decrease in OPEB related deferred outflows Increase (decrease) in operating payables and accrued expenses Increase (decrease) in customer deposits Increase (decrease) in compensated absences Increase (decrease) in net pension liability Increase (decrease) in net OPEB liabilities Increase (decrease) in pension related deferred inflows Increase (decrease) in OPEB related deferred inflows Net cash provided by (used for) operating activities Noncash investing, capital and financing activities: Contributions of capital assets Capital asset additions included in accounts payable at end of year Construction contributions receivable at year end The accompanying notes to financial statements are an integral part of this statement. -34- Exhibit 3 $ (15,764,797) $ Water (28,707,201) Water Pollution 39,046 Fund Control Fund Total $ 34,167,255 $ 33,210,186 $ 67,377,441 (6,687,776) (8,719,057) (15,406,833) (10,599,241) (10,929,991) (21,529,232) $ 16,880,238 $ 13,561,138 $ 30,441,376 $ 543,954 $ - $ 543,954 $ 543,954 $ - $ 543,954 $ (15,764,797) $ (12,942,404) $ (28,707,201) 20,842 18,204 39,046 (5,719,241) (5,470,236) (11,189,477) (1,224,800) (975,000) (2,199,800) 1,488,081 1,509,312 2,997,393 845,516 5,095,840 5,941,356 (2,948,491) (1,716,649) (4,665,140) 730,152 69,295 799,447 (103,217) (103,217) (206,434) $ (22,675,955) $ (14,514,855) $ (37,190,810) $ 293,844 $ 438,955 $ 732,799 $ 293,844 $ 438,955 $ 732,799 $ (4,957,919) $ (514,762) $ (5,472,681) 31,311,943 14,746,348 46,058,291 $ 26,354,024 $ 14,231,586 $ 40,585,610 $ 8,396,402 $ 5,322,987 $ 13,719,389 8,306,697 7,969,119 16,275,816 227,679 132,493 360,172 167,867 155,997 323,864 42,772 43,881 86,653 364,294 357,547 721,841 (250,671) (269,183) (519,854) (65,075) (74,300) (139,375) (23,202) 131,338 108,136 32,654 (943) 31,711 (33,784) 49,355 15,571 54,641 57,460 112,101 (85,743) 8,180 (77,563) (251,892) (324,072) (575,964) (2,401) 1,279 (1,122) $ 16,880,238 $ 13,561,138 $ 30,441,376 $ 1,201,525 $ 690,270 $ 1,891,795 1,197,438 2,666,749 3,864,187 2,559,104 2,619,168 5,178,272 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 Note 1— Summary of Significant Accounting Policies: Western Virginia Water Authority was formed in early 2004 by the Board of Supervisors of Roanoke County, Virginia and the Council of the City of Roanoke, Virginia pursuant to the Virginia Water and Waste Water Authorities Act (Chapter 51, Title 15.2 of the 1950 Code of Virginia, as amended) ( "Act "). On November 5, 2009 Franklin County joined as a member and on July 1, 2015 Botetourt County joined as a member of the Authority when the involved parties reorganized under amended and restated Articles of Incorporation. The purposes for which the Authority was formed are to exercise all powers granted to the Authority to acquire, finance, construct, operate, manage and maintain a water, wastewater, sewage disposal and storm water control system and related facilities pursuant to the Act. The Authority shall have all of the rights, powers, and duties of an authority under the Act. The Authority services the County of Roanoke, the City of Roanoke, the County of Franklin and to the extent permitted by the Act and by the terms of the Articles of Incorporation and the Western Virginia Water Authority Operating Agreement, such other public or private entities as the Authority may determine upon the terms and conditions established pursuant to such contracts. The Authority began operations on July 1, 2004. The financial statements of the Western Virginia Water Authority have been prepared in conformity with the accounting principles generally accepted in the United States as specified by the Governmental Accounting Standards Board and the specifications promulgated by the Auditor of Public Accounts (APA) of the Commonwealth of Virginia. The following is a summary of the more significant policies. A. Financial Reporting Entity The Authority's governing body is comprised of three members appointed by Roanoke County, three members appointed by the City of Roanoke, one member appointed by Franklin County and one member appointed by Botetourt County. Therefore, none of the participants appoints a voting majority of board members. The Authority is formed for a term of fifty years. No participating government has access to its resources or surpluses, nor is any participant liable for the Authority's debts or deficits with the exception of the participants' continuing obligations under their water and sewer general obligation bonds. The Authority also has the ability to finance its capital projects through user charges or the sale of revenue bonds. The Governmental Accounting Standards Board (GASB) has determined that, under certain circumstances, related organizations should be considered component units of a primary entity and, as such, reported as part of the primary entity. In so doing, GASB established criteria for determining whether a related entity should be reported as a component unit and, under different circumstances, how component units must be presented. In defining the Authority as a primary reporting entity, related organizations were evaluated for possible inclusion, using the criteria established by the GASB. The criteria would require the reporting entity to include entities that hold resources entirely or almost entirety for the direct benefit of the Authority where the Authority has the ability to access a majority of those resources and those resources are significant to the Authority. Based on these criteria, the Authority does not have any component units, nor is the Authority considered a component unit of any of the participating jurisdictions. Therefore, these financial statements are for the primary entity only. -35- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 1— Summary of Significant Accounting Policies: (Continued A. Financial Reporting Entity (Continued) Western Virginia Water Authority has been determined to be a joint venture of the City of Roanoke and the Counties of Roanoke, Franklin and Botetourt. B. Basis of Presentation The financial statements have been prepared in accordance with pronouncements issued by the Governmental Accounting Standards Board (GASB). The Authority follows the business -type activities requirements of GASB, which provides that the following sections be included in the annual financial report: 1. Management's discussion and analysis 2. Basic financial statements including a statement of net position, statement of revenues, expenses and changes in net position, and a statement of cash flows 3. Notes to financial statements 4. Required supplementary information including schedules related to pension and other postemployment benefits funding C. Basis of Accounting For financial reporting purposes, the Western Virginia Water Authority is considered a special - purpose government, engaged only in business -type activities. Accordingly, the Authority's financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra - agency transactions have been eliminated. Proprietary Funds Proprietary Funds account for operations that are financed in a manner similar to those found in private business enterprises. The measurement focus is upon determination of net income, financial position, and changes in financial position. Proprietary Funds consist of Enterprise Funds. Enterprise Funds Enterprise Funds account for the financing of services to the general public where all or most of the operating expenses involved are recorded in the form of charges to users of such services. The Authority prepares its financial reports utilizing two enterprise funds. The Water Fund is used to account for water services and the Water Pollution Control (WPC) Fund is used to account for wastewater treatment services. IXI01 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 1— Summary of Significant Accounting Policies: (Continued) D. Proprietary Fund Revenue and Expense Classifications The Authority distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the Authority's principal ongoing operations. The principal operating revenues of the Authority are charges to customers for services. Nonoperating revenues include activities that have the characteristics of nonexchange transactions, including gifts, and other revenue sources that are defined as nonoperating revenues, such as government appropriations, rental income, and interest and other investment income. Nonoperating expenses include interest on debt related to the purchase of capital assets, losses on the disposal of capital assets, and rental expenses. All other expenses are classified as operating expenses. E. Deferred Outflows /Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The Authority has multiple items that qualify for reporting in this category. One item is the deferred charge on refunding which results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other item is comprised of certain items related to the measurement of the net pension asset /liability and net OPEB liabilities and contributions to the pension and OPEB plans made during the current year and subsequent to the net pension asset /liability and net OPEB liabilities measurement date. For more detailed information on these items, reference the related notes. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority has one type of item that qualifies for reporting in this category. Certain items related to the measurement of the net pension asset /liability and net OPEB liabilities are reported as deferred inflows of resources. For more detailed information on these items, reference the related notes. F. Net Position The difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. -37- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 (Continued) Note 1— Summary of Significant Accounting Policies: (Continued) F. Net Position (Continued) Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. Unrestricted net position liabilities, and deferred preceding categories. G. Net Position Flow Assumption is the net amount of the assets, deferred outflows of resources, inflows of resources that does not meet the definition of the two Sometimes the Authority will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted —net position and unrestricted —net position in the financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Authority's policy to consider restricted —net position to have been depleted before unrestricted —net position is applied. H. Restricted Assets Certain proceeds of the Authority's revenue bonds and funds held in escrow are classified as restricted assets on the statement of net position because they are maintained in separate bank accounts, and their use is limited by applicable bond covenants or escrow agreements. The bond proceeds account receives proceeds from Authority debt issuances and hold the proceeds until project costs are incurred. These assets are held by a trustee financial institution in separate accounts and consist of cash and cash equivalents. At year end, restricted assets consisted of unspent bond proceeds of $5,014,457. I. Budgets and Budgetary Accounting A budget is prepared for information, fiscal planning purposes, and to provide the basis for setting user rates. None of the participating entities are required to approve the budget. The budget is adopted as a planning document and is not a legal control on expenses. J. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts in demand deposits investments with a maturity date within three months of the date acquired by purposes of the statement of cash flows, demand deposits and all highly liqui d original maturity of three months or less when purchased are considered equivalents. -38- as well as short -term the government. For investments with an to be cash and cash WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 1— Summary of Significant Accounting Policies: (Continued) K. Investments Investments with a maturity of less than one year when purchased, non - negotiable certificates of deposit, and other nonparticipating investments (external investment pools) are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased are stated at fair value. Fair value is the price that would be received to sell an investment in an orderly transaction at yearend. L. Inventory Inventories of material and supplies are recorded at cost, using the first -in, first -out method of valuation. M. Prepaid Items Certain payments to vendors represent costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. The cost of prepaid items is recorded as an expense when consumed rather than when purchased. N. Allowance for Uncollectible Accounts Accounts receivable are stated at book value net of the allowance for uncollectible accounts. The allowance for uncollectible accounts amounted to $248,169 and $248,169 at June 30, 2020 for water and water pollution control, respectively. 0. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., pipes, hydrants, pumps, and similar items), are reported in the financial statements. Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The capital assets donated to the Authority by the organizing localities were valued by a consulting engineer. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, and equipment are depreciated using the straight line method over the following estimated useful lives: Assets Years Structures, lines and accessories 10 to 105 Machinery and equipment 5 to 15 -39- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 (Continued) Note 1— Summary of Significant Accounting Policies: (Continued) P. Interest on Indebtedness Interest costs of the Authority are treated as nonoperating expenses. Q. Compensated Absences The liability for compensated absences reported in the financial statements consists of unpaid accumulated leave balances. The liability is based on the leave accumulated at June 30. Limited leave may be accumulated until retirement or termination. Accumulated leave is paid at the employee's current wage upon retirement or termination. R. Pensions For purposes of measuring the net pension asset/ liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority's Retirement Plans and the additions to /deductions from the Authority's Retirement Plans' net fiduciary position have been determined on the same basis as they were reported by the Virginia Retirement System (VRS) and the City of Roanoke Pension Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. S. Other Postemployment Benefits (OPEB) For purposes of measuring the net GLI Plan OPEB liability, deferred outflows of resources and deferred inflows of resources related to the GLI OPEB, and GLI OPEB expense, information about the fiduciary net position of the VRS GLI Plan OPEB and the additions to /deductions from the VRS GLI OPEB's net fiduciary position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T. Long -Term Obligations The Authority assumed existing revenue bond obligations of both Roanoke County and the City of Roanoke upon the formation of the Authority. The obligations of the County and the City which could not be assumed by the Authority are reported as locality compensation payments. These amounts are paid to the locality in accordance with the locality's existing debt service requirements. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. -40- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 1— Summary of Significant Accounti U. Use of Estimates Policies: (Continued The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from these amounts. Note 2— Deposits and Investments: Deposits Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and collateralized in accordance with the Virginia Security for Public Deposits Act (the "Act "), Section 2.2 -4400 et. Seq. of the Code of Virginia. Under the Act, banks and savings institutions holding public deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth of Virginia Treasury Board. Financial Institutions may choose between two collateralization methodologies and depending upon that choice, will pledge collateral that ranges in the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized. Investments Statutes authorize the Authority to invest in obligations of the United States or agencies thereof, obligations of the Commonwealth of Virginia or political subdivisions thereof, obligations of the International Bank for Reconstruction and Development (World Bank), the Asian Development Bank, the African Development Bank, "prime quality" commercial paper that has received at least two of the following ratings: P -1 by Moody's Investors Service, Inc.; A -1 by Standard and Poor's; or F1 by Fitch Ratings, Inc. (Section 2.2- 4502), banker's acceptances, repurchase agreements, and the State Treasurer's Local Government Investment Pool (LGIP). A summary of the Authority's deposits and investments at June 30, 2020 is as follows: -41- Water Pollution Water Control Total Petty cash $ 2,950 $ 2,950 $ 5,900 VML /VACO Virginia Investment Pool 1,080,421 1,080,421 2,160,842 Local Government Investment Pool 1,131,343 1,131,343 2,262,686 SNAP - 5,014,457 5,014,457 Bank Deposits 24,139,310 7,002,415 31,141,725 Certificate of Deposit 2,112,869 2,112,869 4,225,738 Totals $ 28,466,893 $ 16,344,455 $ 44,811,348 -41- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 2— Deposits and Investments: (Continued) Credit Risk The Authority's investment policy provides that securities purchased for the Authority shall be held by the Authority Treasurer or by the Treasurer's custodian. If held by a custodian, the securities must be in the Authority's name or in the custodian's nominee name and identifiable on the custodian's books as belonging to the Authority. Further, if held by a custodian, the custodian must be a third party, not a counterparty (buyer or seller) to the transaction. At June 30, 2020, all of the Authority's investments were held in accordance with this policy. The following investment types and quality levels are approved for use by the Treasurer in the investment of its public funds: 1. U.S. Treasury Bills, Notes, Bonds, and other direct obligations of the United States Government. 2. Obligations of Agencies of the Federal Government including but not limited to the Federal Farm Credit Bank, Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, and Student Loan Marketing Association. 3. Obligations of the Commonwealth of Virginia and of its local governments and public bodies, including the Local Government Investment Pool, provided such obligations have a debt rating of at least "AA" or equivalent by Moody's and /or Standard Et Poor's. 4. Repurchase Agreements executed through Federal Reserve Member Banks or Primary Dealers in U. S. Government securities, and collateralized by Treasury or Agency obligations the fair value of which is at least 102% of the purchase price of the repo. 5. Certificates of deposit or other deposits of national banks located within the Commonwealth and state - chartered banks under Commonwealth supervision provided such deposits are insured or collateralized as provided by the Virginia Security for Public Deposits Act. 6. U. S. dollar denominated Bankers' Acceptances issued by a domestic bank or a foreign bank with an agency domiciled in the U. S., and rated by Thomson Bankwatch at least B/C (issuing bank) and I (country of origin). Not more than 40% of the total funds available for investment may be invested in Bankers' acceptances. 7. U. S. dollar denominated Commercial Paper issued by an entity incorporated in the U. S. and rated by at least two of the following: Moody's Investors Service, Inc., within its NCO / Moody's rating of prime 1, by Standard Et Poor's Inc., within its rating of A -1, by Fitch Investor Services, Inc., within its rating of F -1, by Duff and Phelps, Inc., within its rating of D -1, or by their corporate successors. Not more that 35% of the total funds available for investment may be invested in commercial paper, and not more that 5% in the obligations of any one issuer. 8. U. S. dollar denominated high quality corporate notes and bonds with a duration of no more than five years and a rating of at least A by two rating agencies, one of which must be either Moody's Investor Services, Inc., or Standard and Poor's, Inc. EIRA WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 (Continued) Note 2— Deposits and Investments: (Continued) Credit Risk (Continued) 9. Money Market Mutual Funds which trade on a constant net asset value and which invest solely in securities otherwise eligible for investment under these guidelines. 10. Asset - backed securities with a duration of no more than 5 years and a rating of no less than AAA by two rating agencies, one of which must be either Moody's Investor Services, Inc., or Standard and Poor's, Inc. The Authority's rated debt investments as of June 30, 2020 were rated by Standard Et Poor's and the ratings are presented below using the Standard It Poor's rating scale. Authority's Rated Debt Investments' Values VML /VACO Virginia Investment Pool Local Government Investment Pool SNAP Total Concentration of Credit Risk Fair Quality Ratings AAAm 2,262,686 5,014,457 AA +f /S 1 2,160,842 $ 7,277,143 $ 2,160,842 The Authority's investment policy limits the investment in bankers' acceptances to 40% of total funds available for investment. Not more than 35% of the Authority's total investments may be in commercial paper and not more than 5% of commercial paper investments in the obligations of any one issuing corporation. -43- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 2 —Cash and Cash Equivalents: (Continue Interest Rate Risk All Authority investments must be in securities maturing within five years to reduce the volatility associated with interest rate risk. Investments subject to interest rate risk are presented below along with their corresponding maturities. Investment Maturities (in years) External Investment Pools The value of the positions in the external investment pools (Local Government Investment Pool and State Non - Arbitrage Pool) is the same as the value of the pool shares. As LGIP and SNAP are not SEC registered, regulatory oversight of the pool rests with the Virginia State Treasury. LGIP and SNAP are amortized cost basis portfolios. There are no withdrawal limitations or restrictions imposed on participants. Redemption Restrictions VML /VACO Virginia Investment Pool allows the Authority to have the option to have access to withdrawal funds twice a month, with a five day period notice. Additionally, fund are available to meet unexpected needs such as fluctuations in revenue sources, one -time outlays (disasters, immediate capital needs, state budget cuts, and etc.). Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority has measured fair value of the above VML /VACO Investment Pool investment at the net asset value (NAV). -44- Fair Less than Investment Type Value 1 Year Local Government Investment Pool $ 2,262,686 $ 2,262,686 VML /VAC0 Virginia Investment Pool 2,160,842 2,160,842 SNAP 5,014,457 5,014,457 Certificate of Deposit 4,225,738 4,225,738 Total $ 13,663,723 $ 13,663,723 External Investment Pools The value of the positions in the external investment pools (Local Government Investment Pool and State Non - Arbitrage Pool) is the same as the value of the pool shares. As LGIP and SNAP are not SEC registered, regulatory oversight of the pool rests with the Virginia State Treasury. LGIP and SNAP are amortized cost basis portfolios. There are no withdrawal limitations or restrictions imposed on participants. Redemption Restrictions VML /VACO Virginia Investment Pool allows the Authority to have the option to have access to withdrawal funds twice a month, with a five day period notice. Additionally, fund are available to meet unexpected needs such as fluctuations in revenue sources, one -time outlays (disasters, immediate capital needs, state budget cuts, and etc.). Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority has measured fair value of the above VML /VACO Investment Pool investment at the net asset value (NAV). -44- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 3— CaDital Assets: Capital asset activity for the year ended June 30, 2020 was as follows: Capital assets, being depreciated: Structures, lines and accessories Beginning 449,431,210 $ Ending Water Fund: Balance Increases Decreases Balance Capital assets, not being depreciated: 573,870 (128,327) 10,364,212 Land $ 19,321,100 $ 37,200 $ - $ 19,358,300 Construction in progress 19,056,752 14,818,216 (14,840,438) 19,034,530 Total capital assets, not being depreciated $ 38,377,852 $ 14,855,416 $ (14,840,438) $ 38,392,830 Capital assets, being depreciated: Structures, lines and accessories $ 449,431,210 $ 15,430,892 $ - $ 464,862,102 Machinery and equipment 9,918,669 573,870 (128,327) 10,364,212 Total capital assets, being depreciated $ 459,349,879 $ 16,004,762 $ (128,327) $ 475,226,314 Accumulated depreciation: Structures, lines and accessories $ (113,421,134) $ (7,496,223) $ - $ (120,917,357) Machinery and equipment (7,213,279) (810,474) 128,327 (7,895,426) Total accumulated depreciation $ (120,634,413) $ (8,306,697) $ 128,327 $ (128,812,783) Total capital assets, being depreciated, net $ 338,715,466 $ 7,698,065 $ - $ 346,413,531 Total Water Fund $ 377,093,318 $ 22553,481 $ (14,840,438) $ 384,806,361 Water Pollution Control Fund: Capital assets, not being depreciated: Land $ 2,827,421 $ - $ $ 2,827,421 Construction in progress 16,794,533 11,705,553 (4,918,108) 23,581,978 Total capital assets, not being depreciated $ 19,621,954 $ 11,705,553 $ (4,918,108) $ 26,409,399 Capital assets, being depreciated: Structures, lines and accessories $ 433,598,053 $ 7,003,654 $ - $ 440,601,707 Machinery and equipment 9,886,334 245,058 (87,609) 10,043,783 Total capital assets, being depreciated $ 443,484,387 $ 7,248,712 $ (87,609) $ 450,645,490 Accumulated depreciation: Structures, lines and accessories $ (161,064,306) $ (7,199,670) $ - $ (168,263,976) Machinery and equipment (7,040,715) (769,449) 87,609 (7,722,555) Total accumulated depreciation $ (168,105,021) $ (7,969,119) $ 87,609 $ (175,986,531) Total capital assets, being depreciated, net $ 275,379,366 $ (720,407) $ - $ 274,658,959 Total Water Pollution Control Fund $ 295,001,320 $ 10,985,146 $ (4,918,108) $ 301,068,358 Total Authority Capital Assets $ 672,094,638 $ 33,538,627 $ (19,758,546) $ 685,874,719 -45- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 3— Capital Assets: (Continued) Construction Commitments: The Authority has active construction projects as of June 30, 2020 detailed below: Water Fund Contract Spent- Remaining Project Description Amount to -Date Commitment Crystal Spring Pump Station $ 4,931,027 $ 266,971 $ 4,664,056 Brick Church Road 566,548 6,533 560,015 Water Pollution Control Fund Project Description Old Roanoke River Interceptor Phase 3 904,929 - 904,929 Systemwide Manhole Rehabilitation 814,091 119,686 694,405 Regional Water Pollution Control Plant - Substation Electrical Equipment i3 Cable 509,618 - 509,618 Regional Water Pollution Control Plant - Substation Electrical Equipment 8 Cable 830,400 830,400 Regional Water Pollution Control Plant - Planning and Design Digester Improvements 1,456,314 - 1,456,314 Total $ 10,012,927 $ 393,190 $ 9,619,737 The above projects are to be funded from the proceeds of revenue bonds and funds generated from operations. The Authority has entered into an agreement with Carilion Medical Center, Inc. (Carilion) for the relocation of the Crystal Springs Pump Station. In accordance with terms of the agreement, Carilion will reimburse the Authority for 100% of all costs associated with the project. Elot WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 4 —Long -Term Obligations: Business -type Activities Indebtedness: The following is a summary of long -term obligation transactions of the Authority for the year ended June 30, 2020: Due Beginning Issuances/ Retirement/ Ending Within Balance Additions Reductions Balance One Year Water Fund: Direct borrowings and placements: Revenue bonds $ 69,988,762 $ - $ (5,719,241) $ 64,269,521 $ 5,930,323 Locality compensation Locality compensation payments 1,224,800 845,516 (1,224,800) 845,516 424,901 Unamortized bond 5,785,000 990,000 Unamortized bond premium 5,265,745 - (860,619) 4,405,126 794,669 Total direct borrowings and placements $ 76,479,307 $ 845,516 $ (7,804,660) $ 69,520,163 $ 7,149,893 Compensated absences 1,072,376 770,498 (804,282) 1,038,592 650,317 Net pension liability - City of 1,036,603 826,807 (777,452) 1,085,958 Roanoke 1,659,458 601,495 (546,854) 1,714,099 - Net OPEB liabilities 2,453,586 280,199 (365,942) 2,367,843 - Total Water Fund $ 81,664,727 $ 2,497,708 $ (9,521,738) $ 74,6402697 $ 7,800,210 Water Pollution Control Fund: Direct borrowings and placements: Revenue bonds $ 56,743,932 $ 4,160,000 $ (5,470,236) $ 55,433,696 $ 5,230,836 Locality compensation payments 6,760,000 - (975,000) 5,785,000 990,000 Unamortized bond premium 1,542,588 935,840 (210,143) 2,268,285 301,031 Total direct borrowings and placements $ 65,046,520 $ 5,095,840 $ (6,655,379) $ 63,486,981 $ 6,521,867 Compensated absences 1,036,603 826,807 (777,452) 1,085,958 735,676 Net pension liability - City of Roanoke 1,729,246 626,968 (569,508) 1,786,706 Net OPEB liabilities 2,622,079 356,758 (348,578) 2,630,259 - Total Water Pollution Control Fund $ 70,434,448 $ 6,906,373 $ (8,350,917) $ 68,989,904 $ 7,257,543 Total business -type activities $ 152,099,175 $ 9,404,081 $ (17,872,655) $ 143,630,601 $ 15,057,753 -47- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 4— Long -Term Obligations: (Continued) Annual requirements to amortize long -term obligations and the related interest are as follows: Direct Borrowings and Placements: Revenue Bonds Water Pollution Year Ending Water Fund Control Fund June 30 Principal Interest Principal Interest 2021 $ 5,930,323 $ 2,617,675 $ 5,230,836 $ 1,471,850 2022 6,160,963 2,350,053 5,493,669 1,344,236 2023 6,381,691 2,065,922 5,618,764 1,189,688 2024 6,658,421 1,781,518 5,786,173 1,030,519 2025 6,582,721 1,497,290 5,945,953 865,905 2026 -2030 21,955,957 3,641,048 18,684,835 2,198,706 2031 -2035 6,969,187 1,234,358 7,008,468 726,672 2036 -2040 3,603,465 225,119 1,355,000 208,621 2041 26,793 - 309,998 6,394 Total $ 64,269,521 $ 15,412,983 $ 55,433,696 $ 9,042,591 Direct Borrowings and Placements: Locality Compensation Payments Year Ending 2021 2022 2023 2024 2025 2026 -2030 2031 -2035 Total Water Fund Principal $ 424,901 $ 420,615 $ 845,516 $ Water Pollution Control Fund Interest Principal 10,516 $ 990,000 $ 3,494 1,015,000 - 1,035,000 1,060,000 120,000 705,000 - 860,000 14,010 $ 5,785,000 $ 151.111 Interest 172,945 146,087 116,496 83,961 64,119 233,734 79,994 897,336 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 4- Long -Term Obligations: (Continued) Details of the Authority's outstanding long -term indebtedness at June 30, 2020 are as follows: Water Fund I Final Amount of Balance Amount Interest Installment Maturity Original Enterprise Due Within Type Rates Amounts Date Issue Activities One Year Direct Borrowings and Placements - Locality Compensation Payments: City of Roanoke, VA -2019 Refunding 1.67% $420,615- $424,901 (a +) 10/1/2021 $ 845,516 $ 845,516 $ 424,901 Total Direct Borrowings and Placements - Locality Compensation Payments $ 845,516 $ 424,901 Direct Borrowings and Placements - Revenue Bonds: VRA Water Revolving Loan Series 20008 3.00% $22,962 (sa) 9/1/2020 $ 674,269 $ 22,623 $ 22,623 VRA Water Revolving Loan Series 2000A 4.00% $6,629 (sa) 9/1/2020 178,340 6,499 6,499 VRA Water Revolving Loan Series 2008 3.05% $13,523(sa) 11/1/2028 389,557 193,100 21,319 VRA Water Revolving Loan Series 2010 0.00% $13,397 (sa +) 1/1/2041 803,823 562,676 26,794 VRA Water Revolving Loan Series 2011 2.64% $18,746 (sa) 3/1/2032 564,401 378,380 27,684 ARRA - VRA Water Revolving Loan Series 2009 0.00% $597 (sa +) 6/1/2040 35,919 23,861 1,193 ARRA- VRA Water Revolving Loan Series 2009 0.00% $353 (sa-) 6/1/2040 21,242 14,117 705 VRA Water Revolving Loan Series 2011 2.83% $7,273 (sa) 6/1/2031 216,850 136,436 10,761 VRA Pool Bond Water Series 2011B 4.67 -5.13% $830,000 - $1,550,000 (a +) 10/1/2021 17,035,000 2,250,000 1,100,000 VRA Water Revolving Loan Series 2012 1.45% $26,811 (sa) 4/1/2033 907,965 632,462 44,613 VRA VPFP Refunding Bond Series 2013B 3.435- 4.826% $2,090,000- $3,510,000(a +) 10/1/2026 35,855,000 21,590,000 2,685,000 VRA Pool Bond Water Series 2014B Refunding 2.00 -5.25% $505,000- $765,000(a,) 10/1/2028 6,355,000 5,780,000 525,000 2016A VRA Refunding of2011B 4.80 -5.13% $1,150,000- $1,475,000(a +) 10/1/2027 7,870,000 7,870,000 - VRA 2011 Bond Series 2011A 2.125 - 5.125% $20,000 - $40,000 (a +) 10/1/2031 510,000 365,000 25,000 2017C VRA Bond 2.827 - 5.125% $285,000- $635,000(a +) 4/1/2038 10,000,000 8,455,000 310,000 2018C VRA Bond 4.125 - 5.125% $165,000- $415,000(a +) 10/30/2018 5,490,000 5,325,000 170,000 BBBT Revenue Bond Series 2009 3.91% $177,496 (sa) 5/15/2024 4,000,000 1,302,773 307,027 Carter Bank and Trust Series 2013A 2.75% $51,857(sa +) 10/1/2029 1,556,000 985,463 103,734 Carter Bank and Trust - Series 2015 3.80% $389,855 (sa) 4/1/2033 10,000,000 8,376,131 542,371 Add: Premiumon issuance 4,405,126 794,669 Total Direct Borrowings and Placements - Revenue Bonds $ 68,674,647 $ 6,724,992 Other Long -Term Obligations: Compensated absences $ 1,038,592 $ 650,317 Net pension liability -City of Roanoke 1,714,099 - Net OPEB liabilities 2,367,843 Total Other Long -Term Obligations $ 5,120,534 $ 650,317 Total Long -Term Obligations Payable from the Water Fund $ 74,640,697 $ 7,800,210 (a +)- annual principal installments shown, does not include semi - annual interest installments (sa)- semi - annual installments, includes interest as applcable (sa +) -semi- annual principal installments shown, does not include semi - annual interest installments -49- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 4 -Long -Term Obligations: (Continued) Details of the Authority's outstanding long -term indebtedness at June 30, 2020 are as follows: (Continued) Water Pollution Control Fund Final Amount of Balance Amount Interest Installment Maturity Original Enterprise Due Within Type Rates Amounts Date Issue Activities One Year Direct Borrowings and Placements - Locality Compensation Payments: City of Roanoke, VA -20128 Refunding 1.15 -2.96% $845,000- $945,000(a +) 10/1/2023 $ 7,105,000 $ 3,670,000 $ 890,000 VRA Bond Series 2016B 2.125-5.125% $5,000- $185,000(a +) 10/1/2034 2,155,000 2,115,000 100,000 Add: Premiumon issuance 238,156 31,817 Total Direct Borrowings and Placements - Locality Compensation Payments $ 6,023,156 $ 1,021,817 Direct Borrowings - Revenue Bonds: VRA Wastewater Revolving Loan Series 2003 2.30% $306,492 (sa) 10/l/2026 $ 9,000,000 $ 3,565,216 $ 514,601 VRA Wastewater Revolving Loan Series 2003 2.30% $1,051,566 (sa) 10/1/2026 31,665,134 12,232,190 1,765,583 VRA Wastewater Revolving Loan Series 2007 2.50% $343,375 (sa) 8/1/2028 9,993,612 5,058,123 541,143 VRA Clean Water Revolving Loan Series 2011 2.35% $48,166 (sa) 3/1/2032 1,500,000 999,096 73,282 VRA Pool Bond Sewer Series 2011B 4.82 -5.13% $545,000- $1,035,000 (a +) 10/1/2021 11,285,000 1,485,000 725,000 VRA Wastewater Revolving Loan Series 2011 2.35% $149,659 (sa) 9/1/2033 4,660,693 3,424,853 220,120 VRA Wastewater Revolving Loan Series 2011 2.35% $191,135 (sa) 9/1/2032 5,952,344 4,058,027 288,593 VRA Wastewater Revolving Loan Series 2012 1.45% $363,739 (sa) 4/1/2035 12,318,074 9,416,480 588,250 VRA Pool Bond Sewer Series 20148 Refunding 1.18 -5.13% $20,000 - $235,000 (a +) 10/1/2028 1,930,000 1,760,000 160,000 VRA Refunding Bond Series 2016A 4.80 -5.13% $770,000- $990,000(a +) 10/1/2027 5,270,000 5,270,000 VRA Bond Series 2012 2.40% $86,700 (sa) 3/1/2033 2,700,000 1,931,602 128,732 VRA Bond Series 2004 3.10% $102,801 (sa) 9/1/2026 4,032,975 1,201,954 169,664 VRA Bond Series 2013 1.45% $34,543 (sa) 4/1/2035 1,169,808 871,155 55,868 VRA Bond Series 2020 3.00% $125,000- $310,000(a +) 10/1/2040 4,160,000 4,160,000 - Add: Premiumon issuance 2,030,129 269,214 Total Direct Borrowings and Placements - Revenue Bonds $ 57,463,825 $ 5,500,050 Other Long -Term Obligations: Compensated absences $ 1,085,958 $ 735,676 Net pension liability -City of Roanoke 1,786,706 Net OPEB liabilities 2,630,259 Total Other Long -Term Obligations $ 5,502,923 $ 735,676 Total Long -Term Obligations Payable from the Water Pollution Control Fund $ 68,989,904 $ 7,257,543 Grand Total $143,630,601 $15,057,753 (a +)- annual principal installments shown, does not include semi - annual interest installments (sa)- semi- annualinstaUments, includes interest as applicable Loans from the Virginia Resources Authority (VRA) are governed by rate covenants with which the Authority has been in compliance through June 30, 2020. Revenue bonds and locality compensation payments are secured by the Authority's revenues. If an event of default occurs with VRA, BBEtT, or Carter Bank and Trust bonds, the principal of the bond(s) may be declared immediately due and payable to the registered owner of the bond(s) by written notice to the Authority. -50- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 5— Capital Contributions: The Authority received capital contributions from the following sources during the year: Year Ended June 30, 2020: Water Water Pollution liabilities (assets), and Fund Control Fund Total Availability fees $ 1,135,500 $ 1,043,000 $ 2,178,500 Developer contributions 1,201,525 690,270 1,891,795 Contributions from other governments 2,711,685 3,085,480 5,797,165 Other capital contributions 200,000 - 200,000 Deferred Total Capital Contributions $ 5,248,710 $ 4,818,750 $ 10,067,460 Note 6— Pension Plans: Ags7re,ate Pension Information The following is a summary of deferred outflows, deferred inflows, net pension liabilities (assets), and pension expense for the year ended June 30, 2020. Water Fund Water Pollution Control Fund Net Pension Net Pension Deferred Deferred Liability Pension Deferred Deferred Liability Pension Outflows Inflows (Asset) Expense Outflows Inflows (Asset) Expense Pension Plans: Virginia Retirement System Plan $ 531,028 $ 222,002 $ (219,908) $ 199,810 $ 551,489 $ 236,607 $ (228,307) $ 209,492 City of Roanoke Pension Plan 177,641 287,811 1,714,099 49,815 202,824 381,817 1,786,706 (17,474) Totals $ 708,669 $ 509,813 $ 1,494,191 $ 249,625 $ 754,313 $ 618,424 $ 1,558,399 $ 192,018 Virginia Retirement System Plan Plan Description All full -time, salaried permanent employees of the Authority (that are not covered under the Roanoke City Pension Plan) are automatically covered by VRS Retirement Plan upon employment. This is an agent multiple- employer plan administered by the Virginia Retirement System (the System) along with plans for other employer groups in the Commonwealth of Virginia. However, one entity's whose financial information is not included in the primary government's report participates in the VRS plan through the Authority and the participating entity reports its proportionate information on the basis of a cost - sharing plan. Members earn one month of service credit for each month they are employed and for which they and their employer pay contributions to VRS. Members are eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended. Eligible prior service that may be purchased includes prior public service, active military service, certain periods of leave, and previously refunded service. -51- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued Virginia Retirement System Plan (Continued) Benefit Structures The System administers three different benefit structures for covered employees - Plan 1, Plan 2 and Hybrid. Each of these benefit structures has different eligibility criteria, as detailed below. a. Employees hired before July 1, 2010, vested as of January 1, 2013, and have not taken a refund, are covered under Plan 1, a defined benefit plan. Non - hazardous duty employees are eligible for an unreduced retirement benefit beginning at age 65 with at least 5 years of service credit or age 50 with at least 30 years of service credit. Non - hazardous duty employees may retire with a reduced benefit as early as age 55 with at least 5 years of service credit or age 50 with at least 10 years of service credit. b. Employees hired on or after July 1, 2010, or their membership date is before July 1, 2010, and they were not vested as of January 1, 2013 are covered under Plan 2, a defined benefit plan. Non - hazardous duty employees are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit or when the sum of their age plus service credit equals 90. Non- hazardous duty employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. c. Non - hazardous duty employees hired on or after January 1, 2014 are covered by the Hybrid Plan combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan 2 members also had the option of opting into this plan during the election window held January 1 - April 30, 2014 with an effective date of July 1, 2014. Employees covered by this plan are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of service credit, or when the sum of their age plus service credit equals 90. Employees may retire with a reduced benefit as early as age 60 with at least 5 years of service credit. For the defined contribution component, members are eligible to receive distributions upon leaving employment, subject to restrictions. Average Final Compensation and Service Retirement Multiplier The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the employee's average final compensation multiplied by the employee's total service credit. Under Plan 1, average final compensation is the average of the employee's 36 consecutive months of highest compensation and the multiplier is 1.70% for non - hazardous duty employees and 1.85% for sheriffs and regional jail superintendents. Under Plan 2, average final compensation is the average of the employee's 60 consecutive months of highest compensation and the retirement multiplier is 1.65% for non - hazardous duty employees and 1.85% for sheriffs and regional jail superintendents. Under the Hybrid Plan, average final compensation is the average of the employee's 60 consecutive months of highest compensation and the multiplier is 1.00 %. For members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for those plans will be used to calculate the retirement benefit for service credited in those plans. -52- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) Virginia Retirement System Plan (Continued) Cost -of- Living Adjustment (COLA) in Retirement and Death and Disability Benefits Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of service credit are eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date. Retirees with a reduced benefit and who have less than 20 years of service credit are eligible for an annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility date. Under Plan 1, the COLA cannot exceed 5.00 %. Under Plan 2 and the Hybrid Plan, the COLA cannot exceed 3.00 %. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia, as amended, assigns the authority to establish and amend benefit provisions to the General Assembly of Virginia. Contributions The contribution requirement for active employees is governed by 851.1 -145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement. The Authority's contractually required employer contribution rate for the year ended June 30, 2020 was 4.60% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2017. This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Authority were $411,061 and $412,555 for the years ended June 30, 2020 and June 30, 2019, respectively. Net Pension Asset At June 30, 2020, the Authority reported an asset of $448,215 for its proportionate share of the net pension asset. The Authority's net pension asset was measured as of June 30, 2019. The total pension liability used to calculate the net pension asset was determined by an actuarial valuation performed as of June 30, 2018 and rolled forward to the measurement date of June 30, 2019. In order to allocate the net pension asset to all employers included in the plan, the Authority is required to determine its proportionate share of the net pension asset. Contributions as of June 30, 2019 and 2018 were used as a basis for allocation to determine the Authority's proportionate share of the net pension asset. At June 30, 2019 and 2018, the Authority's proportion was 99.2288% and 98.6714 %, respectively. -53- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued Virginia Retirement System Plan (Continued) Actuarial Assumptions - General Employees The total pension liability for General Employees in the Authority's Retirement Plan was based on an actuarial valuation as of June 30, 2018, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019. Inflation 2.50% Salary increases, including inflation 3.50% - 5.35% Investment rate of return 6.75 %, net of pension plan investment expenses, including inflation* * Administrative expenses as a percent of the fair value of assets for the last experience study were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment return rate for GASB purposes of slightly more than the assumed 6.75 %. However, since the difference was minimal, and a more conservative 6.75% investment return assumption provided a projected plan net position that exceeded the projected benefit payments, the long -term expected rate of return on investments was assumed to be 6.75% to simplify preparation of pension liabilities. Mortality rates: All Others (Non -10 Largest) - Non - Hazardous Duty: 15% of deaths are assumed to be service related Pre - Retirement: RP -2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates. Post - Retirement: RP -2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to 90. Post - Disablement: RP -2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years; 110% of rates; females 125% of rates. 5 *11 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) Virginia Retirement System Plan (Continued) Actuarial Assumptions - General Employees (Continued) The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows: All Others (Non -10 Largest) - Non - Hazardous Duty: Mortality Rates (pre- retirement, post- Updated to a more current mortality table - RP -2014 retirement healthy, and disabled) projected to 2020 Retirement Rates Lowered rates at older ages and changed final retirement from 70 to 75 Withdrawal Rates Adjusted rates to better fit experience at each year age and service through 9 years of service Disability Rates Lowered rates Salary Scale No change Line of Duty Disability Increased rate from 14.00% to 15.00% Discount Rate Decreased rate from 7.00% to 6.75% ��� WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) Vireinia Retirement System Plan (Continued) Long -Term Expected Rate of Return The long -term expected rate of return on pension System investments was determined using a log- normal distribution analysis in which best - estimate ranges of expected future real rates of return (expected returns, net of pension System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long -term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class (Strategy) Public Equity Weighted Arithmetic Average Long -term Long -term Target Expected Expected Allocation Rate of Return Rate of Return* 5.13% Public Equity 34.00% 5.61% 1.91% Fixed Income 15.00% 0.88% 0.13% Credit Strategies 14.00% 5.13% 0.72% Real Assets 14.00% 5.27% 0.74% Private Equity 14.00% 8.77% 1.23% MAPS - Multi -Asset Public Strategies 6.00% 3.52% 0.21% PIP - Private Investment Partnership 3.00% 6.29% 0.19% Total 100.00% Inflation Expected arithmetic nominal return* 5.13% 2.50% 7.63% * The above allocation provides a one -year return of 7.63 %. However, one -year returns do not take into account the volatility present in each of the asset classes. In setting the long -term expected return for the system, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 7.11 %, including expected inflation of 2.50 %. The VRS Board elected a long -term rate of 6.75% which is roughly at the 401h percentile of expected long -term results of the VRS fund asset allocation. -56- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) Virginia Retirement System Plan (Continued) Discount Rate The discount rate used to measure the total pension liability was 6.75 %. The projection of cash flows used to determine the discount rate assumed that System member contributions will be made per the VRS Statutes and the employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Consistent with the phased -in funding provided by the General Assembly for state and teacher employer contributions; the Authority was also provided with an opportunity to use an alternative employer contribution rate. For the year ended June 30, 2019, the alternate rate was the employer contribution rate used in FY 2012 or 100% of the actuarially determined employer contribution rate from the June 30, 2017 actuarial valuations, whichever was greater. From July 1, 2019 on, participating employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore the long -term expected rate of return was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Authority's Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the Authority's proportionate share of the net pension liability (asset) using the discount rate of 6.75 %, as well as what the Authority's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point lower (5.75 %) or one percentage point higher (7.75 %) than the current rate: Rate 1% Decrease Current Discount 1% Increase (5.75 %) (6.75 %) (7.75 %) Authority's proportionate share of the Authority Retirement Plan Net Pension Liability (Asset) $ 2,019,555 $ (448,215) $ (2,389,274) -57- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued Virginia Retirement System Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2020, the Authority recognized pension expense of $409,302. Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from difference between employee contributions and the proportionate share of employer contributions. At June 30, 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes in assumptions Change in proportionate shares Net difference between projected and actual earnings on pension plan investments Employer contributions subsequent to the measurement date Total -58- Deferred Outflows Deferred Inflows of Resources of Resources $ 232,207 $ 139,040 439,249 173,186 5,456 140,927 411.061 $ 1,082,517 $ 458,609 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 (Continued) Note 6— Pension Plans: (Continued Virginia Retirement System Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) $411,601 reported as deferred outflows of resources related to pensions resulting from the Authority's contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows: Year ended June 30 2021 $ 17,851 2022 (79,717) 2023 179,656 2024 95,057 Thereafter - Pension Plan Data Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued VRS 2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAFR may be downloaded from the VRS website at http• / /www varetire.orp,/Pdf/ Publications /2019 - annual - report -pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218 -2500. City of Roanoke Pension Plan Employees of the Authority who transferred their employment from the City of Roanoke are eligible to continue their participation in the City's Pension Plan. General Information about the Pension Plan The Pension Plan is a cost - sharing multiple- employer defined benefit plan established by City Council and is included in the City's basic financial statements as a Pension Trust Fund. The Pension Plan was established by City Ordinance No. 8559 dated May 27, 1946, effective July 1, 1946. The Pension Plan covers substantially all employees of the City, all employees of the Roanoke Regional Airport Commission, and the Roanoke Valley Juvenile Detention Center, as well as certain employees of the City of Roanoke School Board, the Roanoke Valley Resource Authority, and the Western Virginia Water Authority. The City is the major contributor of employer contributions to the Pension Plan. City Council appoints members of the Pension Plan Board of Trustees to administer the Pension Plan. The Pension Plan is not subject to the provisions of the Employee Retirement Income Security Act (ERISA) of 1974. -59- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6- Pension Plans: (Continued) City of Roanoke Pension Plan (Continued) General Information about the Pension Plan (Continued) Effective July 1, 1984, the Pension Plan changed its name from the Employees' Retirement System of the City of Roanoke, Virginia (ERS) to City of Roanoke Pension Plan and incorporated a provision for an Employees' Supplemental Retirement System (ESRS) which modified certain benefits as defined by the ERS. All employees covered under the provisions of the ERS at June 30, 1984, could elect to remain with the ERS or be covered under the provisions of the ESRS. Coverage under the ESRS was mandatory for all employees hired or rehired on or after July 1, 1984. On November 28, 1994, June 1, 1998, November 2, 1998, and June 5, 2000, City Council authorized the Pension Plan to offer members of the ERS an opportunity to transfer to the ESRS. The option was available from February 1, 1995 to May 16, 1995, July 1, 1998 through August 31, 1998, December 1, 1998 through December 31, 1998, and July 1, 2000 through July 31, 2000. Both the ERS and the ESRS share a common trust fund from which all benefits are paid without distinction as to the source of funds and are administered by the Board of Trustees. The Pension Plan provides retirement benefits as well as death and disability benefits. Effective July 16, 2012, City Council adopted a restatement of the chapter of the City Code governing the Pension Plan. The restated Chapter 22.3, Pensions and Retirement, provides for the introduction of an Internal Revenue Code Section 401(h) health savings account, established as a component of the Pension Plan effective July 1, 2013, and established new benefit tiers effective July 1, 2014. The restated Chapter 22.3 also provides for a defined cost of living adjustment effective July 1, 2013. Employees who are members of the ERS with 30 years of service and age 60 (normal retirement age) are entitled to an annual retirement benefit equal to 1/70 (1.429%) of their average final compensation (highest consecutive 12 months), excluding overtime, for each year of service. Employees may retire with 20 years of service and receive a reduced retirement benefit. For employees who are married at their retirement date, a joint and survivor annuity is payable monthly. There is no mandatory retirement age. Employees who are members of the ESRS, hired prior to July 1, 2014, with 5 years or more of credited service and age 65 or over, general employees who have attained age 50 with age plus service equal to 80, and deputized police officers and firefighters who have attained age 45 with age plus service equal to 70, are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 2.1% of their final average compensation for each year of credited service up to a maximum of 63 %. Final average compensation is the employee's average salary, excluding overtime, over the highest 36 consecutive months of credited service. Employees with 5 years of credited service may retire at age 55 and receive a reduced retirement benefit. Employees may elect to receive their retirement benefits in the form of a single life annuity or a joint and survivor annuity payable monthly from retirement. If employees terminate before rendering five years of service, they forfeit the right to receive any Pension Plan benefits. There is no mandatory retirement age. WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) City of Roanoke Pension Plan (Continued) General Information about the Pension Plan (Continued) Employees hired after June 30, 2014 become members of ESRS and choose between participation as a traditional defined benefit ESRS member or as a Hybrid member. Employees hired after June 30, 2014 were required to contribute 5% of earnable compensation to the plan. Effective July 1, 2015, the required contribution of 5% of earnable compensation was extended to employees hired prior to July 1, 2015. Employees have 60 days from their date of hire to make an irrevocable election to participate as either a traditional defined benefit ESRS member or a Hybrid member. Employees electing Hybrid membership participate in ESRS and accrue a lesser defined benefit than traditional defined benefit ESRS members and also participate in a defined contribution plan established under Section 401(a) of the Internal Revenue Code. Employees who make no election participate as traditional defined benefit ESRS members. ESRS members hired after June 30, 2014, choosing participation as a traditional defined benefit member may retire with 5 years or more of credited service and age 65 or over, general employees who have attained age 55 with age plus service equal to 85, and deputized police officers and firefighters who have attained age 50 with age plus service equal to 75, are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 2.0% of their final average compensation for each year of credited service up to a maximum of 63 %. Final average compensation is the employee's average salary, excluding overtime, over the highest 60 consecutive months of credited service. Employees with 15 years of credited service may retire at age 55 (age 50 for deputized police officers and firefighters) and receive a reduced retirement benefit. Employees may elect to receive their retirement benefits in the form of a single life annuity or a joint and survivor annuity payable monthly from retirement. If employees terminate before rendering five years of service, they forfeit the right to receive any Pension Plan benefits. There is no mandatory retirement age. Member contributions for traditional defined benefit participants are invested in the pension trust fund. Employees choosing participation as Hybrid members participate in ESRS for the defined benefit component of their retirement benefit, subject to the same eligibility criteria as outlined for the traditional defined benefit participants. Hybrid members' defined benefit component is payable monthly for life in an amount equal to 1.0% of their final average compensation for each year of credited service up to a maximum of 63 %. Final average compensation is the employee's average salary, excluding overtime, over the highest 60 consecutive months of credited service. Hybrid member contributions are deposited in a defined contribution plan established under Section 401(a) of the Internal Revenue Code. Hybrid members are responsible for the investment of funds in their defined contribution plan account. Effective July 1, 2000, an additional monthly supplement equal to the greater of (a) $159 or (b) 75% of the amount the City contributes toward the cost of a single active employee's health insurance shall be paid for eligible retirees terminating the month in which the retiree attains age 65. Any member of the Pension Plan who was an employee of one of the participating employers of the Pension Plan (not including employees of the School Board) and who retired after earning 20 or more years of creditable service but prior to attaining the age of 65 is eligible for this supplement. This supplement is not available to retirees receiving the early retiree incentive plan supplement granted in 1991. Employees hired after June 30, 2013 are not eligible for this supplement. -61- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30. 2020 (Continued) Note 6— Pension Plans: (Continued) City of Roanoke Pension Plan (Continued) General Information about the Pension Plan (Continued) The Internal Revenue Code Section 401(h) health savings account operates similarly to a defined contribution plan. Employees eligible to participate in the Pension Plan are required to contribute 1% of earnable compensation in their health savings account. Employees hired after June 30, 2013 and employees hired prior to July 1, 2014, who made an irrevocable election to forego eligibility for the monthly supplemental benefit enacted effective July 1, 2000, receive an employer paid matching contribution equal to 1% of their earnable compensation. Employees vest in the employer paid matching contribution upon the attainment of 5 years of creditable service in the Pension Plan. The Board of Trustees has delegated authority for the oversight of the 401(h) health savings account to the Defined Contribution Board established under the Chapter 22.3 of the City Code. The Defined Contribution Board has contracted with an independent financial services organization for the custody and administration of the 401(h) accounts. Assets accumulated in the individual accounts are available for use upon separation from service for reimbursement of qualified medical expenses, as defined in section 213(d) of the Internal Revenue Code, as a tax -free distribution. Non - vested employer contributions, including earnings thereon, are forfeited upon separation from service. Any balance remaining in the account is forfeited upon death or attainment of maximum age of the last eligible recipient. Contributions Effective July 1, 2015, employees contribute 5.00% of earnable compensation into the pension trust. Employees hired on or after July 1, 2014, electing participation as a Hybrid plan member contribute 5% of earnable compensation into a defined contribution plan member account. Employer contributions to the Pension Plan are based on a percentage of the earnable compensation of the active members. The City's contribution rate for the fiscal year ended June 30, 2020 was 16.60 %, which, when combined with the required employee contribution of 5.00 %, totaled 21.60 %. For fiscal year 2020, the total contribution rate of 21.60% of earnable compensation, actuarially determined as an amount that is expected to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Authority were $290,124 for fiscal year ended June 30, 2020. Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the Authority reported a liability of $3,500,805 for its' proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Authority's proportion of the net pension liability was based on a projection of the Authority's long -term share of contributions to the pension plan relative to projected contributions of all participates, as actuarially determined. At June 30, 2019 and 2018, the Authority's proportion was 2.5193% and 2.6667 %, respectively. -62- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued City of Roanoke Pension Plan (Continued) Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) For the year ended June 30, 2020, the Authority recognized pension expense of $32,341. Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions. At June 30, 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to this pension from the following sources: Differences between expected and actual experience Changes in assumptions Changes in proportion and differences between employer contributions and proportionate share of contributions Net difference between projected and actual earnings on pension plan investments Contributions subsequent to the measurement date Totals Deferred Deferred Outflows Inflows of Resources of Resources .) J- t,:J // .? JJ,YJO 35,764 423,341 - 212,829 290,124 - S 380,465 S 669,628 $290,124 reported as deferred outflows of resources related to the pension resulting from the Authority's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows and deferred inflows of resources will be recognized in pension expense in future reporting periods as follows: Year Ended June 30 2021 $ (224,310) 2022 (333,714) 2023 (71,141) 2024 49,878 Total - -63- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued) City of Roanoke Pension Plan (Continued) Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2018, updated to June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.25% Salary Increases 3.50 %, average, including inflation Investment Rate of Return 7.25 %, net of investment expenses Cost of Living Adjustments 1.50 % for eligible participants, based on 2/3 of assumed 2.25% inflation Mortality rates or pre- retirement and healthy annuitants were based on 125% of RP -2000 Combined Healthy Mortality for males and females with generation mortality projection using Scale AA. For Disabled, mortality rates were based on Society of Actuaries RP -2014 Adjusted to 2006 Disabled Retiree Mortality Table. Actuarial assumptions are based on the last experience study performed as of June 30, 2016 for the period July 1, 2011 through June 30, 2016. City Code requires that the Plan have an experience study performed every 5 years. The experience study covers a 5 year period. Long -term Expected Rate of Return The long -term expected rate of return on Pension Plan investments was determined using projected long- term rates of returns developed for each asset class. The expected long -term rate of return for each asset class as weighted by the Investment Policy target asset allocation was used, to derive the overall expected rate of return for the portfolio. The following table reflected the long -term expected arithmetic real rate of return based upon the defined target allocation for each asset class as defined in the Statement of Investment Policy: Weighted Average Long -Term Target Expected Asset Class (Strategy) Allocation Rate of Return Equity US Equity 52.00% International Equity 22.00% Real Estate 6.00% Fixed Income US Fixed Income 20.00% Total 100.00% -64- 5.20% 2.42% 0.42% 1.00% 9.04% WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 6— Pension Plans: (Continued City of Roanoke Pension Plan (Continued) Discount Rate The discount rate used to measure the total pension liability was 7.25 %. The projection of cash flows used to determine the discount rate assumed that contributions will be made at the actuarially determined contribution rates. Based on those assumptions, the Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long -term expected rate of return on Pension Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Authority's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Authority's proportionate share of the net pension liability calculated using the discount rate of 7.25 %, as well as what the Authority's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate: Rate 1% Decrease Current Rate 1% Increase (6.25%) (7.25%) (8.25%) Authority's proportionate share of the net pension liability $ 5,068,793 $ 3,500,805 $ 2,177, 380 Pension Plan Data The Roanoke City Pension Plan issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information. A copy of the most recent report may be obtained by writing to the City of Roanoke Retirement Office, Attention: Retirement Administrator, P.O. Box 1220, Roanoke, Virginia, 24006. -65- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 7— Aggregate OPEB Information: The following is a summary of deferred outflows, deferred inflows, net OPEB liabilities, and OPEB expense for the year ended June 30, 2020. Water Fund Water Pollution Control Fund Note 8 —Other Postemployment Benefits - Health Insurance: Plan Description In addition to the pension benefits described in Note 6, the Authority administers a single- employer defined benefit healthcare plan, Western Virginia Water Authority OPEB Plan. The plan provides for participation by eligible retirees of the Authority and their dependents in the health insurance programs available to Authority employees. The plan does not issue a publicly available financial report. Benefits Provided The plan will provide retiring employees the option to continue health insurance offered by the Authority. An eligible Authority retiree may receive this benefit until the retiree is eligible to receive Medicare. To be eligible for this benefit a retiree must meet the following criteria: • The retiree must be a full time employee retiring on or after July 1, 2004. • The employee must be eligible to retire with the Virginia Retirement System (VRS) or the current City of Roanoke retirement plan. • Active employees must have at least 10 years of service with combined VRS or City of Roanoke and /or the Water Authority, with a minimum of five continuous years of service with the Water Authority and must be hired before July 1, 2010. • Disabled employees are eligible after they meet retirement eligibilities The benefits, employee contributions and the employer contributions are governed by the Board of Directors of the Western Virginia Water Authority and can be amended through Board action. Plan Membership At January 1, 2020 (valuation date), the following employees were covered by the benefit terms: Total active members 101 Total retirees and spouses 35 Total -66- 136 Deferred Deferred Net OPEB OPEB Deferred Deferred Net OPEB OPEB Outflows Inflows Liability Expense Outflows Inflows Liability Expense Health Insurance OPEB Plan $ 60,552 $ 43,685 $ 1,864,357 $ 104,721 $ 68,441 $ 49,375 $ 2,107,228 $ 118,363 VRS OPEB Plans - Group Life Insurance (GLI) Plan: Western Virginia Water Authority GLI Plan 100,163 27,276 428,438 14,395 103,988 28,319 444,801 14,945 City of Roanoke GLI Plan 14,058 7,647 75,048 1,093 15,186 7,971 78,230 1,139 Totals $ 174,773 $ 78,608 $ 2,367,843 $ 120,209 $ 187,615 $ 85,665 $ 2,630,259 $ 134,447 Note 8 —Other Postemployment Benefits - Health Insurance: Plan Description In addition to the pension benefits described in Note 6, the Authority administers a single- employer defined benefit healthcare plan, Western Virginia Water Authority OPEB Plan. The plan provides for participation by eligible retirees of the Authority and their dependents in the health insurance programs available to Authority employees. The plan does not issue a publicly available financial report. Benefits Provided The plan will provide retiring employees the option to continue health insurance offered by the Authority. An eligible Authority retiree may receive this benefit until the retiree is eligible to receive Medicare. To be eligible for this benefit a retiree must meet the following criteria: • The retiree must be a full time employee retiring on or after July 1, 2004. • The employee must be eligible to retire with the Virginia Retirement System (VRS) or the current City of Roanoke retirement plan. • Active employees must have at least 10 years of service with combined VRS or City of Roanoke and /or the Water Authority, with a minimum of five continuous years of service with the Water Authority and must be hired before July 1, 2010. • Disabled employees are eligible after they meet retirement eligibilities The benefits, employee contributions and the employer contributions are governed by the Board of Directors of the Western Virginia Water Authority and can be amended through Board action. Plan Membership At January 1, 2020 (valuation date), the following employees were covered by the benefit terms: Total active members 101 Total retirees and spouses 35 Total -66- 136 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 8 —Other Postemplovment Benefits - Health Insurance: (Continued) Contributions The board does not pre -fund benefits; therefore, no assets are accumulated in a trust fund. The current funding policy is to pay benefits directly from general assets on a pay -as- you -go basis. The funding requirements are established and may be amended by the Authority's Board. The amount paid by the Authority for OPEB as the benefits came due during the year ended June 30, 2020 was $401,867. Total OPEB Liability The Authority's total OPEB liability was measured as of June 30, 2020. The total OPEB liability was determined by an actuarial valuation performed as of January 1, 2020. Actuarial Assumptions The total OPEB liability in the January 1, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 12.50% Salary Increases 12.50% to 5.00% !Discount Rate 12.21% as of June 30, 2020; ` 13.50% as of June 30, 2019 Mortality rates for pre- retirement and post- retirement employees were 125% of RP -2000 Combined Healthy mortality rates for males and females with generational mortality projections using Scale AA. Mortality rates for post- disabled employees were based on RP -2014 adjusted to 2006 Disabled Retiree mortality rates for males and females. The healthcare trend rate assumption starts at (4.30)% in 2020 increasing to 5.60% in 2021 and gradually grading to 4.00% by the year 2073. The date of the most recent actuarial experience study for which significant assumptions was based was from January 1, 2012 through December 31, 2017. Discount Rate The discount rate (as the entity has not established a trust for this OPEB) is based on the Bond Buyer 20- Year Bond GO Index as of the respective measurement dates. The final equivalent single discount rate used for this year's valuation is 2.21% as of the end of the fiscal year with the expectation that the Authority will continue to fund the program on a pay -as- you -go basis. -67- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 8 —Other Postemployment Benefits - Health Insurance: (Continued Changes in Total OPEB Liability Balances at June 30, 2019 Changes for the year: Service cost Interest Effect of economic/ demographic gains or losses Effect of assumptions changes or inputs Benefit payments Net changes Balances at June 30, 2020 Total OPEB Liability $ 4,119,598 77,347 139,921 (38,803) 75,389 (401,867) $ (148,013) $ 3,971,585 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following amounts present the total OPEB liability of the Authority, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.21%) or one percentage point higher (3.21%) than the current discount rate: Rate 1% Decrease Current Discount (1.21%) Rate (2.21%) $ 4,182,716 $ 3,971,585 1% Increase (3.21%) $ 3,770,358 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the Authority, as well as what the total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower ((5.30)% in 2020, increasing to 4.60% in 2021 and gradually decreasing to an ultimate rate of 3.00 %) or one percentage point higher ((3.30% in 2020, increasing to 6.60% in 2021 and gradually decreasing to an ultimate rate of 5.00 %) than the current healthcare cost trend rates: Rates Healthcare Cost 1% Decrease Trend Rates 1% Increase ((5.30)% increasing ((4.30)% increasing ((3.30)% increasing to 3.00 %) to 4.00 %) to 5.00 %) $ 3,749,408 $ 3,971,585 $ 4,222,996 -68- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 8 —Other Postemployment Benefits - Health Insurance: (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2020, the Authority recognized OPEB expense in the amount of $223,084. At June 30, 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Differences between expected and actual experience Effect of assumption changes or inputs Total Deferred Outflows of Deferred Inflows of Resouces Resources 128, 993 33,338 59.722 128,993 $ 93,060 Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in OPEB expense in future reporting periods as follows: Year Ended June 30 2021 $ 5,816 2022 5,816 2023 5,816 2024 5,816 2025 7,000 Thereafter 5,669 Additional disclosures on changes in the total OPEB liability, related ratios, and employer contributions can be found in the required supplementary information following the notes to the financial statements. Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan The Authority participates in two Group Life Insurance (GLI) Plans through the Virginia Retirement System (VRS). Employees of the Authority who transferred their employment from the City of Roanoke are eligible to continue their participation in the City's VRS plan. All other employees who participate in VRS through Western Virginia Water Authority are part of the Authority's VRS Plan. Plan Description The GLI Plan was established pursuant to 551.1 -500 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full -time, salaried permanent employees of the state agencies, teachers, and employees of participating political subdivisions are automatically covered by the VRS GLI Plan upon employment. This is a cost - sharing multiple- employer plan administered by the Virginia Retirement System (the System), along with pensions and other OPEB plans, for public employer groups in the Commonwealth of Virginia. -69- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Continued) Plan Description (Continued) In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves as well as a spouse or dependent children through the Optional GLI Plan. For members who elect the optional group life insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums from members' paychecks and pay the premiums to the insurer. Since this is a separate and fully insured plan, it is not included as part of the GLI Plan OPEB. The specific information for GLI OPEB, including eligibility, coverage and benefits is described below: Eligible Employees The GLI Plan was established July 1, 1960, for state employees, teachers, and employees of political subdivisions that elect the plan. Basic GLI coverage is automatic upon employment. Coverage ends for employees who leave their position before retirement eligibility or who take a refund of their accumulated retirement member contributions and accrued interest. Benefit Amounts The GLI Plan is a defined benefit plan with several components. The natural death benefit is equal to the employee's covered compensation rounded to the next highest thousand and then doubled. The accidental death benefit is double the natural death benefit. In addition to basic natural and accidental death benefits, the plan provides additional benefits provided under specific circumstances that include the following: accidental dismemberment benefit, safety belt benefit, repatriation benefit, felonious assault benefit, and accelerated death benefit option. The benefit amounts are subject to a reduction factor. The benefit amount reduces by 25% on January 1 following one calendar year of separation. The benefit amount reduces by an additional 25% on each subsequent January 1 until it reaches 25% of its original value. For covered members with at least 30 years of service credit, the minimum benefit payable was set at $8,000 by statute in 2015. This will be increased annually based on the VRS Plan 2 cost -of- living adjustment calculation. The minimum benefit adjusted for the COLA was $8,643 as of June 30, 2020. Contributions The contribution requirements for the GLI Plan are governed by §51.1 -506 and 551.1 -508 of the Code of Vir inia, as amended, but may be impacted as a result of funding provided to state agencies and school divisions by the Virginia General Assembly. The total rate for the GLI Plan was 1.31% of covered employee compensation. This was allocated into an employee and an employer component using a 60/40 split. The employee component was 0.79% (1.31% x 60 %) and the employer component was 0.52% (1.31% x 40 %). Employers may elect to pay all or part of the employee contribution; however, the employer must pay all of the employer contribution. Each employer's contractually required employer contribution rate for the year ended June 30, 2020 was 0.52% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2017. The actuarially determined rate, when combined with employee contributions, was expected to finance the costs of benefits payable during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the Western Virginia Water Authority GLI Plan from the entity were $57,002 and $54,313 for the years ended June 30, 2020 and June 30, 2019, respectively. Contributions to the City of Roanoke GLI Plan from the entity were $9,373 and $9,849 for the years ended June 30, 2020 and June 30, 2019, respectively. -70- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Continued) GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI Plan OPEB Western Virginia Water Authority GLI Plan At June 30, 2020, the entity reported a liability of $873,239 for its proportionate share of the Net GLI OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2019 and the total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation performed as of June 30, 2018, and rolled forward to the measurement date of June 30, 2019. The covered employer's proportion of the Net GLI OPEB Liability was based on the covered employer's actuarially determined employer contributions to the GLI Plan for the year ended June 30, 2019 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2019, the participating employer's proportion was 0.0536% as compared to 0.0528% at June 30, 2018. For the year ended June 30, 2020, the participating employer recognized GLI OPEB expense of $29,340. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion. City of Roanoke GLI Plan At June 30, 2020, the entity reported a liability of $153,278 for its proportionate share of the Net GLI OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2019 and the total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation performed as of June 30, 2018, and rolled forward to the measurement date of June 30, 2019. The covered employer's proportion of the Net GLI OPEB Liability was based on the covered employer's actuarially determined employer contributions to the GLI Plan for the year ended June 30, 2019 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2019, the participating employer's proportion was 0.0094% as compared to 0.0101% at June 30, 2018. For the year ended June 30, 2020, the participating employer recognized GLI OPEB expense of $2,232. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion. -71- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Continued) GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the GLI Plan OPEB (Continued) At June 30, 2020, the employer reported deferred outflows of resources and deferred inflows of resources related to the GLI OPEB from the following sources: Differences between expected and actual experience $ Net difference between projected and actual earnings on GLI OPEB plan investments Change in assumptions Changes in proportion Employer contributions subsequent to the measurement date Total Western Virginia Water Authority GLI Plan City of Roanoke GLI Plan Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources 58,076 $ 11,327 $ 10,194 $ 1,988 55,131 33,942 57,002 c Ana isl c 17,936 - 3,149 26,332 9,677 4,622 - - 5,859 9,373 - 55,595 $ 29,244 $ 15,618 $57,002 and $9,373 reported as deferred outflows of resources related to the GLI OPEB resulting from the employer's contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI OPEB Liability in the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB expense in future reporting periods as follows: Western Virginia Water City of Roanoke GLI Year Ended June 30 Authority GLI Plan Plan 2021 $ 12,250 $ (768) 2022 12,250 (768) 2023 19,846 566 2024 22,489 1,944 2025 19,284 2,529 Thereafter 5,435 750 -72- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Contin Actuarial Assumptions The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2018, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019. The assumptions include several employer groups as noted below. Salary increase and mortality rates included herein are for relevant employer groups. Information for other groups can be referenced in the VRS CAFR. Inflation 2.50% Salary increases, including inflation: Locality - General employees 3.50 % -5.35% Investment rate of return 6.75 %, net of investment expenses, including inflation* *Administrative expenses as a percent of the fair value of assets for the last experience study were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment return rate for GASB purposes of slightly more than the assumed 6.75 %. However, since the difference was minimal, and a more conservative 6.75% investment return assumption provided a projected plan net position that exceeded the projected benefit payments, the long -term expected rate of return on investments was assumed to be 6.75% to simplify preparation of OPEB liabilities. Mortality Rates - Non - Largest Ten Locality Employers - General Employees Pre - Retirement: RP -2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates. Post - Retirement: RP -2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with scale BB to 2020; males set forward 3 years; females 1.0% increase compounded from ages 70 to 90. Post - Disablement: RP -2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years, 110% of rates; females 125% of rates. -73- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Continued) Actuarial Assumptions (Continued) Mortality Rates - Non - Largest Ten Locality Employers - General Employees (Continued) The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows: Mortality Rates (pre- retirement, post- retirement healthy, and Retirement Rates Withdrawal Rates Disability Rates Salary Scale Line of Duty Disability Discount Rate NET GLI OPEB Liability Updated to a more current mortality table - RP- 2014 projected to 2020 Lowered retirement rates at older ages and extended final retirement age from 70 to 75 Adjusted termination rates to better fit experience at each age and service year Lowered disability rates No change Increased rate from 14.00% to 15.00% Decreased rate from 7.00% to 6.75% The net OPEB liability (NOL) for the GLI Plan represents the plan's total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30, 2019, NOL amounts for the GLI Plan are as follows (amounts expressed in thousands): GLI OPEB Plan Total GLI OPEB Liability $ 3,390,238 Plan Fiduciary Net Position 1,762,972 GLI Net OPEB Liability (Asset) $ 1,627,266 Plan Fiduciary Net Position as a Percentage of the Total GLI OPEB Liability 52.00% The total GLI OPEB liability is calculated by the System's actuary, and each plan's fiduciary net position is reported in the System's financial statements. The net GLI OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System's notes to the financial statements and required supplementary information. -74- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan Long -Term Expected Rate of Return EB Plan): (Continued The long -term expected rate of return on the System's investments was determined using a log- normal distribution analysis in which best - estimate ranges of expected future real rates of return (expected returns, net of System's investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long -term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table: *The above allocation provides a one -year return of 7.63 %. However, one -year returns do not take into account the volatility present in each of the asset classes. In setting the long -term expected return for the system, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 7.11%, including expected inflation of 2.50 %. The VRS Board elected a long -term rate of 6.75% which is roughly at the 401h percentile of expected long -term results of the VRS fund asset allocation. -75- Weighted Arithmetic Average Long -term Long -term Target Expected Expected Asset Class (Strategy) Allocation Rate of Return Rate of Return* Public Equity 34.00% 5.61% 1.91 Fixed Income 15.00% 0.88% 0.13% Credit Strategies 14.00% 5.13% 0.72% Real Assets 14.00% 5.27% 0.74% Private Equity 14.00% 8.77% 1.23% MAPS - Multi -Asset Public Strategies 6.00% 3.52% 0.21 PIP - Private Investment Partnership 3.00% 6.29% 0.19% Total 100.00% 5.13% Inflation 2.50% Expected arithmetic nominal return* 7.63% *The above allocation provides a one -year return of 7.63 %. However, one -year returns do not take into account the volatility present in each of the asset classes. In setting the long -term expected return for the system, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 7.11%, including expected inflation of 2.50 %. The VRS Board elected a long -term rate of 6.75% which is roughly at the 401h percentile of expected long -term results of the VRS fund asset allocation. -75- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 9 —Group Life Insurance (GLI) Plan (OPEB Plan): (Continued Discount Rate The discount rate used to measure the total GLI OPEB liability was 6.75 %. The projection of cash flows used to determine the discount rate assumed that member contributions will be made per the VRS guidance and the employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Through the fiscal year ended June 30, 2019, the rate contributed by the entity for the GLI OPEB will be subject to the portion of the VRS Board - certified rates that are funded by the Virginia General Assembly which was 100% of the actuarially determined contribution rate. From July 1, 2019 on, employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the GLI OPEB's fiduciary net position was projected to be available to make all projected future benefit payments of eligible employees. Therefore the long -term expected rate of return was applied to all periods of projected benefit payments to determine the total GLI OPEB liability. Sensitivity of the Employer's Proportionate Share of the Net GLI OPEB Liability to Changes in the Discount Rate The following presents the employer's proportionate share of the net GLI OPEB liability using the discount rate of 6.75 %, as well as what the employer's proportionate share of the net GLI OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate: 1% Decrease (5.75%) Western Virginia Water Authority's proportionate share of the GLI Plan Net OPEB Liability $ 1,147,194 City of Roanoke's proportionate share of the GLI Plan Net OPEB Liability $ 201,366 GLI Plan Fiduciary Net Position Rate Current Discount (6.75%) $ 873,239 $ 153,278 1% Increase (7.75%) $ 651,069 $ 114,282 Detailed information about the GLI Plan's Fiduciary Net Position is available in the separately issued VRS 2019 Comprehensive Annual Financial Report (CAFR). A copy of the 2019 VRS CAM may be downloaded from the VRS website at http: / /www.varetire.org /Pdf /Publications /2019 - annual - report.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218 -2500. -76- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 10 —Risk Management: The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority joined together with other local governments in the Commonwealth to form the Virginia Municipal League Self Insurance Risk Pool, a public entity risk pool currently operating as a common risk management and insurance program for member governments. The Authority pays an annual premium to the pool for its workers compensation, general liability, automobile liability, property, crime and public official's insurance coverages. The Agreement for Formation of the pool provides that the pool will be self - sustaining through member premiums. Settled claims have not exceeded pool coverage in any of the past three fiscal years. Note 11— Contingencies: The Authority is operating under the terms of a Consent Special Order dated March 18, 2005 issued by the Virginia State Water Control Board requiring certain improvements to the Authority's water pollution control plant. The Authority intends to comply with the provisions of this consent order through projects already started or future improvements. Note 12— Arbitrage Rebate Compliance: As of June 30, 2020 and for the year then ended, the Authority was not liable for any amounts due under current rules governing arbitrage earnings. Note 13— Litieation: As of June 30, 2020, the Authority was involved in three disputes with claims totaling approximately 1.5 million dollars. The Authority carries insurance, which may cover a portion of these claims, and has a counter claim in one of the disputes. At the present time, the Authority's liability (if any) is not subject to reasonable estimation and therefore no adjustment has been made to the financial statements for these claims. Note 14 —Joint Use Facility: The Authority entered into a cooperative agreement with the Bedford Regional Water Authority for the operation of the Smith Mountain Lake Water Facility. Under terms of the agreement, the participants jointly operate the facility and are responsible for their prorated share of operating cost based on usage. The Authority reports its' undivided interest (the assets owned and liabilities for which it is responsible) related to this agreement in these financial statements. Note 15— Current Refundine: On November 22, 2019, the Authority's refunded $836,600 of their locality compensation payments by issuing bonds totaling $845,516. In addition to the principal due, the proceeds were used to cover issuance cost of $4,476 and accrued interest of $4,440. The refunding reduced future debt service of $13,915 over the remaining life of the bonds (2 years). The present value savings at a discount rate of 1.67% was approximately $13,675. 1519 WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 16 —Notes Receivable: Notes receivable at year end consist of capital contributions financed by participating localities. Each note bears interest at 3% and principal and interest payments are due annually on October 1st and April 151 throughout the 20 year terms. A summary of notes receivable follows: Note 17— Subsequent Event: On January 30, 2020, the World Health Organization ( "WHO ") announced a global health emergency because of a new strain of coronavirus (the "COVID -19 outbreak ") and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID -19 outbreak as a pandemic based on the rapid increase in exposure globally. The full impact of the COVID -19 outbreak continues to evolve as of the release date of this report. As such, the full magnitude that the pandemic will have on the Authority's financial condition, liquidity, and future results of operations is uncertain. Management is monitoring the global situation and impact that it may have on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID -19 outbreak and global responses to curb its spread, the Authority is not able to estimate the effects of the COVID -19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2021. Note 18— Upcoming Pronouncements: Statement No. 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and local governments for accounting and financial reporting purposes and how those activities should be reported. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 87, Leases, requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 90, Majority Equity Interests - An Amendment of GASB Statements No, 14 and No. 61, provides guidance for reporting a government's majority equity interest in a legally separate organization and for reporting financial statement information for certain component units. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. -78- Issuance Initial Payment Amount Due in Locality Date Amount Amounts Oustanding One Year Franklin County 4/1/2019 $ 4,164,666 128,309 $ 4,043,386 $ 146,832 Town of Rocky Mount 4/1/2019 1,119,082 37,408 1,056,285 42,808 Totals $ 5,283,748 $ 5,099,671 $ 189,640 Note 17— Subsequent Event: On January 30, 2020, the World Health Organization ( "WHO ") announced a global health emergency because of a new strain of coronavirus (the "COVID -19 outbreak ") and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID -19 outbreak as a pandemic based on the rapid increase in exposure globally. The full impact of the COVID -19 outbreak continues to evolve as of the release date of this report. As such, the full magnitude that the pandemic will have on the Authority's financial condition, liquidity, and future results of operations is uncertain. Management is monitoring the global situation and impact that it may have on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID -19 outbreak and global responses to curb its spread, the Authority is not able to estimate the effects of the COVID -19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2021. Note 18— Upcoming Pronouncements: Statement No. 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and local governments for accounting and financial reporting purposes and how those activities should be reported. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 87, Leases, requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 90, Majority Equity Interests - An Amendment of GASB Statements No, 14 and No. 61, provides guidance for reporting a government's majority equity interest in a legally separate organization and for reporting financial statement information for certain component units. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. -78- WESTERN VIRGINIA WATER AUTHORITY Notes to Financial Statements At June 30, 2020 (Continued) Note 18— Upcoming Pronouncements: (Continued) Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. Statement No. 92, Omnibus 2020, addresses practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics such as leases, assets related to pension and postemployment benefits, and reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature. The effective dates differ by topic, ranging from January 2020 to periods beginning after June 15, 2021. Statement No. 93, Replacement of Interbank Offered Rates, establishes accounting and financial reporting requirements related to the replacement of Interbank Offered Rates (IBORs) in hedging derivative instruments and leases. It also identifies appropriate benchmark interest rates for hedging derivative instruments. The requirements of this Statement, except for removal of London Interbank Offered Rate (LIBOR) as an appropriate benchmark interest rate and the requirements related to lease modifications, are effective for reporting periods beginning after June 15, 2020. The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All requirements related to lease modifications in this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 94, Public- Private and Public - Public Partnerships and Availability of Payment Arrangements, addresses issues related to public - private and public - public partnership arrangements. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 96, Subscription -Based Information Technology Arrangements (SBITAs), (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code (IRC) Section 457 Deferred Compensation Plans - an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement. No 32, (1) increases consistency and comparability related to reporting of fiduciary component units in certain circumstances; (2) mitigates costs associated with the reporting of certain plans as fiduciary component units in fiduciary fund financial statements; and (3) enhances the relevance, consistency, and comparability of the accounting and financial reporting for Section 457 plans that meet the definition of a pension plan and for benefits provided through those plans. The effective dates differ based on the requirements of the Statement, ranging from June 2020 to reporting periods beginning after June 15, 2021. Management is currently evaluating the impact these standards will have on the financial statements when adopted. 7LI] Required Supplementary Information Western Virginia Water Authority Schedule of Authority's Proportionate Share of the Net Pension Liability (Asset) VRS Pension Plan For the Measurement Dates of June 30, 2014 through June 30, 2019 Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available. ON Proportionate Pension Plan's Proportion of Share of the NPLA Fiduciary Net the Net Pension as a Percentage of Position as a Liability (Asset) Proportionate Covered Covered Payroll Percentage of Total Date (NPLA) Share of the NPLA Payroll (3)/(4) Pension Liability (Asset) (1) (2) (3) (4) (5) (6) Virginia Retirement System Plan 2019 99.2288% $ (448,215) $ 10,303,051 -4.35% 97.38% 2018 98.6714% (1,170,056) 9,901,457 - 11.82% 108.13% 2017 98.5944% (954,863) 9,644,034 -9.90% 107.42% 2016 98.7264% 375,007 8,976,762 4.18% 96.87% 2015 100.0000% 139,166 8,650,612 1.61% 98.74% 2014 100.0000% (399,624) 8,243,754 -4.85% 104.34% Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available. ON Western Virginia Water Authority Schedule of Employer Contributions VRS Pension Plan For the Years Ended June 30, 2011 through June 30, 2020 Current year and prior year contributions are from the Authority's records. M Contributions in Relation to Contributions Contractually Contractually Contribution Employer's as a % of Required Required Deficiency Covered Covered Contribution Contribution (Excess) Payroll Payroll Date (1) (2) (3) (4) (5) 2020 $ 411,061 $ 411,061 $ $ 10,794,174 3.81% 2019 412,555 412,555 10,303,051 4.00% 2018 558,333 558,333 9,901,457 5.64% 2017 532,816 532,816 9,644,034 5.52% 2016 577,393 577,393 8,976,762 6.43% 2015 563,177 563,177 8,650,612 6.51% 2014 746,059 746,059 8,243,754 9.05% 2013 699,973 699,973 7,734,509 9.05% 2012 603,821 603,821 7,004,889 8.62% 2011 559,636 559,636 6,492,302 8.62% Current year and prior year contributions are from the Authority's records. M Western Virginia Water Authority Notes to Required Supplementary Information VRS Pension Plan Year Ended June 30, 2020 Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation. Changes of assumptions - The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows: All Others (Non 10 Largest) - Non - Hazardous Duty: *ortality Rates (pre- retirement, post- retirement jhealthy, and disabled) Updated to a more current mortality table - RP -2014 projected to 2020 Retirement Rates Increased age 50 rates, and lowered rates at older ages Withdrawal Rates Adjusted rates to better fit experience at each year age and service through 9 years of service Disability Rates Adjusted rates to better fit experience Salary Scale No change Line of Duty Disability Increased rate from 14.00% to 15.00% Discount Rate Decreased rate from 7.00% to 6.75% -82- Western Virginia Water Authority Schedule of Authority's Proportionate Share of the Net Pension Liability (Asset) Roanoke City Pension Plan For the Measurement Dates of June 30, 2014 through June 30, 2019 Proportion of the Net Pension Liability (Asset) Date (NPLA) (1) (2) Roanoke City Pension Plan 2019 2018 2017 2016 2015 2014 Proportionate Pension Plan's Share of the NPLA Fiduciary Net as a Percentage of Position as a Proportionate Covered Covered Payroll Percentage of Total Share of the NPLA Payroll (3)/(4) Pension Liability (Asset) (3) (4) (5) (6) 2.5193% $ 3,500,805 $ 1,895,201 184.72% 132.25% 2.6667% 3,388,704 1,997,207 169.67% 77.32% 2.9178% 4,191,261 2,169,469 193.19% 73.96% 3.1591% 5,359,429 2,449,994 218.75% 68.70% 3.4588% 4,847,558 2,354,112 205.92% 73.81% 3.5119% 4,122,465 2,505,800 164.52% 77.23% Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will be included as they become available. -83- Western Virginia Water Authority Schedule of Employer Contributions Roanoke City Pension Plan For the Years Ended June 30, 2011 through June 30, 2020 Current year and prior year contributions are from the Authority's records. lf:L! Employer's Covered Payroll (4) Contributions as a % of Covered Payroll (5) Contributions in 16.60% 1,895,201 16.63% Relation to 17.04% 2,169,469 Contractually Contractually Contribution 2,354,112 Required Required Deficiency 2,682,526 Contribution Contribution (Excess) Date (1) (2) (3) 2020 $ 290,124 $ 290,124 $ 2019 315,172 315,172 2018 340,324 340,324 2017 342,993 342,993 2016 383,179 383,179 2015 523,319 523,319 2014 452,798 452,798 2013 418,474 418,474 2012 514,909 514,909 2011 466,306 466,306 Current year and prior year contributions are from the Authority's records. lf:L! Employer's Covered Payroll (4) Contributions as a % of Covered Payroll (5) $ 1,747,735 16.60% 1,895,201 16.63% 1,997,207 17.04% 2,169,469 15.81% 2,449,994 15.64% 2,354,112 22.23% 2,505,800 18.07% 2,682,526 15.60% 2,854,263 18.04% 2,955,044 15.78% Western Virginia Water Authority Notes to Required Supplementary Information Roanoke City Pension Plan For the Year Ended June 30, 2020 Changes in benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation. Changes in assumptions - For the Roanoke City Retirement Plan, the following changes in actuarial assumptions were made effective June 30, 2016 based on the most recent experience study for the System for the five years period ending June 30, 2016. Interest Rate 7.25% as of June 30, 2019 Inflation 2.25% as of June 30, 2019 Mortality Rates Mortality rates of pre- retirement and healthy annuitants were based on 125% of RP -2000. Combined Healthy Mortality for males and females with generation mortality projection using Scale AA. For Disabled, mortality rates were based on Society of Actuaries RP -2014 adjusted to 2006 Disabled Retiree Mortality table. COLA Supplement 1.50% as of June 30, 2019 -85- WESTERN VIRGINIA WATER AUTHORITY Schedule of Changes in Total OPEB Liability (Asset) and Related Ratios Health Insurance For the Measurement Dates of June 30, 2018 through June 30, 2020 Total OPEB liability Service cost Interest Effect of economic /demographic gains or losses Effect of assumption changes or inputs Benefit payments Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending Covered payroll Authority's total OPEB liability (asset) as a percentage of covered payroll 2020 2019 $ 77,347 $ 71,887 $ 74,108 139,921 156,844 149,623 (38,803) - - 75,389 90,434 (97,052) (401,867) (357,613) (336,000) $ (148,013) $ (38,448) $ (209,321) 4,119,598 4,158,046 4,367,367 $ 3,971,585 $ 4,119,598 $ 4,158,046 $ 12,888,482 $ 12,160,246 $ 12,160,246 30.81% 33.88% 34.19% Schedule is intended to show information for 10 years. Additional years will be included as they become available. i• WESTERN VIRGINIA WATER AUTHORITY Notes to Required Supplementary Information Health Insurance For the Year Ended June 30, 2020 Valuation Date: 1/1/2020 Measurement Date: 6/30/2020 No assets are accumulated in a trust that meets the criteria in GASB 75 to pay related benefits. Methods and assumptions used to determine OPEB liability: Actuarial Cost Method Discount Rate Entry age normal level % of salary 2.21% as of June 30, 2020; 3.50% as of June 30, 2019 Inflation 2.50% per year as of June 30, 2020; 2.50% per year as of June 30, 2019 Healthcare Trend Rate The healthcare trend rate assumption starts at 1(4.30)% in 2020 increasing to 5.60% in 2021 and gradually grading to 4.00% by the year 2073. Salary Increase Rates Salary increase rates range from 2.50% to 5.00% Retirement Age The average age at retirement is 62.5 Mortality Rates Mortality rates for pre- retirement and post- retirement employees were 125% of RP -2000 ,Combined Healthy mortality rates for males and females with generational mortality projections using Scale AA. Mortality rates for post- disabled employees were based on RP -2014 adjusted to 2006 Disabled Retiree mortality rates for males and females. i -87- WESTERN VIRGINIA WATER AUTHORITY Schedule of Authority's Share of Net OPEB Liability Group Life Insurance (GLI) Plan For the Measurement Dates of June 30, 2017 through June 30, 2019 Employer's Proportion of the Net GLI OPEB Date Liability (Asset) (1) (2) Western Virginia Water Authority Group Life Insurance Program 2019 0.0536% $ 2018 0.0528% 2017 0.0523% of Roanoke Group Life Insurance Program 2019 0.0094% $ 2018 0.0101% 2017 0.0113% Plan Fiduciary Net Position as a Percentage of Total GLI OPEB Liability (6) 873,239 $ 10,444,808 8.36% 52.00% 802,199 9,901,457 8.10% 51.22% 787,116 9,644,034 8.16% 48.86% 153,278 $ 1,894,038 8.09% 52.00% 153,868 1,997,207 7.70% 51.22% 170,613 2,169,469 7.86% 48.86% Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available. :: Employer's Proportionate Share Employer's of the Net GLI OPEB Proportionate Liability (Asset) Share of the Employer's as a Percentage of Net GLI OPEB Covered Covered Payroll Liability (Asset) Payroll (3)/(4) (3) (4) (5) Western Virginia Water Authority Group Life Insurance Program 2019 0.0536% $ 2018 0.0528% 2017 0.0523% of Roanoke Group Life Insurance Program 2019 0.0094% $ 2018 0.0101% 2017 0.0113% Plan Fiduciary Net Position as a Percentage of Total GLI OPEB Liability (6) 873,239 $ 10,444,808 8.36% 52.00% 802,199 9,901,457 8.10% 51.22% 787,116 9,644,034 8.16% 48.86% 153,278 $ 1,894,038 8.09% 52.00% 153,868 1,997,207 7.70% 51.22% 170,613 2,169,469 7.86% 48.86% Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will be included as they become available. :: WESTERN VIRGINIA WATER AUTHORITY Schedule of Employer Contributions Group Life Insurance (GLI) Plan For the Years Ended June 30, 2015 through June 30, 2020 2020 $ Contributions in 57,002 $ $ 10,961,923 0.52% 2019 Relation to 54,313 10,444,808 Contributions Contractually Contractually Contribution Employer's as a % of Required Required Deficiency Covered Covered Contribution Contribution (Excess) Payroll Payroll Date (1) (2) (3) (4) (5) Western Virginia Water Authority Group Life Insurance Program 2020 $ 57,002 $ 57,002 $ $ 10,961,923 0.52% 2019 54,313 54,313 10,444,808 0.52% 2018 51,611 51,611 9,901,457 0.52% 2017 50,175 50,175 9,644,034 0.52% 2016 43,575 43,575 8,976,762 0.49% 2015 41,523 41,523 8,650,612 0.48% of Roanoke Group Life Insurance Program 2020 $ 9,373 $ 9,373 $ $ 1,802,500 0.52% 2019 9,849 9,849 1,894,038 0.52% 2018 10,854 10,854 1,997,207 0.54% 2017 9,888 9,888 2,169,469 0.46% 2016 11,893 11,893 2,449,994 0.49% 2015 11,300 11,300 2,354,112 0.48% Schedule is intended to show information for 10 years. Information prior to 2015 is not available. However, additional years will be included as they become available. M-11'3 WESTERN VIRGINIA WATER AUTHORITY Notes to Required Supplementary Information Group Life Insurance (GLI) Plan For the Year Ended June 30, 2020 Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation. Changes of assumptions - The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016, except the change in the discount rate, which was based on VRS Board action effective as of July 1, 2019. Changes to the actuarial assumptions as a result of the experience study and VRS Board action are as follows: Non - Largest Ten Localitv Emaloyers - General Emplovees Mortality Rates (pre- retirement, post - retirement healthy, and disabled) Updated to a more current mortality table - RP -2014 projected to 2020 Retirement Rates Lowered retirement rates at older ages and extended final retirement age from 70 to 75 Withdrawal Rates Adjusted termination rates to better fit experience at each age and service year Disability Rates Lowered disability rates Salary Scale No change Line of Duty Disability Increased rate from 14.00% to 15.00% Discount Rate Decreased rate from 7.00% to 6.75% 0 Other Supplementary Information WESTERN VIRGINIA WATER AUTHORITY Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Water Fund Year Ended June 30, 2020 Schedule 1 Variance Final Favorable Budget Actual (Unfavorable) Operating Revenues: Water sales $ 32,297,357 $ 30,787,729 $ (1,509,628) Water connection charges 210,000 261,673 51,673 Bulk sales 150,000 207,235 57,235 Fire service 1,468,920 1,499,946 31,026 Other fees 1,005,809 1,150,339 144,530 Total operating revenues $ 35,132,086 $ 33,906,922 $ (1,225,164) Operating Expenses: Water treatment administration $ 1,356,384 $ 1,010,240 $ 346,144 Water treatment plants /systems: Carvin's Cove 1,730,004 1,502,749 227,255 Spring Hollow 1,848,073 1,672,901 175,172 Crystal Spring 405,254 349,133 56,121 Falling Creek 96,800 79,215 17,585 Smith Mountain Lake systems 437,800 393,502 44,298 Westlake operations 188,000 165,067 22,933 Laboratory services 389,313 317,638 71,675 Water purchases 10,000 2,162 7,838 Contract operations 8,614 - 8,614 Pump and storage operations 1,268,628 1,137,013 131,615 Well operations 464,650 307,641 157,009 Distribution operations 739,713 673,354 66,359 Meter operations 1,335,834 1,220,736 115,098 Reservoir operations 444,045 318,184 125,861 Internal services 4,054,180 3,805,630 248,550 Field operations 4,293,885 4,222,290 71,595 Occupancy costs 26,782 26,368 414 Depreciation 8,306,697 8,306,697 - Total operating expenses $ 275404,656 $ 255510,520 $ 1,894,136 Income from operations $ 7,727,430 $ 8,3965402 $ 668,972 Nonoperating Income (Expenses): Interest earned $ 155,000 $ 341,835 $ 186,835 Tower site rental 638,015 660,857 22,842 Office building lease income 81,295 69,295 (12,000) Non operating contribution 706,669 543,954 (162,715) Gain (loss) on disposal of assets - 20,842 20,842 Office building maintenance expense (81,295) (103,217) (21,922) Interest expense (2,921,130) (2,084,038) 837,092 Total nonoperating income (expenses) $ (1,421,446) $ (550,472) $ 8705974 Income (loss) before contributions $ 6,305,984 $ 7,845,930 $ 1,539,946 Capital contributions $ 5,246,737 $ 5,248,710 $ 1,973 Change in net position $ 11,552,721 $ 13,094,640 $ 1,541,919 -91- WESTERN VIRGINIA WATER AUTHORITY Schedule 2 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Water Pollution Control Fund Year Ended June 30, 2020 -92- Variance Final Favorable Budget Actual (Unfavorable) Operating Revenues: Water pollution control charges $ 31,334,439 $ 29,806,176 $ (1,528,263) Sewer connection charges 90,500 156,750 66,250 Bulk sales 1,910,000 1,750,580 (159,420) Septic disposal fees 350,000 483,658 133,658 Otherfees 712,537 881,472 168,935 Total operating revenues $ 34,397,476 $ 33,078,636 $ (1,318,840) Operating Expenses: Water pollution control: Administration $ 1,011,982 $ 792,861 $ 219,121 Operations 4,713,124 4,662,896 50,228 Biosolids handling 1,540,500 1,301,614 238,886 Maintenance 2,048,328 2,054,275 (5,947) Contract operations 113,279 113,151 128 Collection system metering 428,080 346,832 81,248 Metering and lift stations 214,000 204,223 9,777 Pretreatment 1,020,679 859,155 161,524 Internal services 4,054,180 3,805,630 248,550 Occupancy costs 26,782 26,368 414 Field operations 5,198,751 5,047,836 150,915 Westlake system 105,900 84,238 21,662 Botetourt system 474,293 487,451 (13,158) Depreciation 7,969,119 7,969,119 - Total operating expenses $ 28,918,997 $ 27,755,649 $ 1,163,348 Income from Operations $ 5,478,479 $ 5,322,987 $ (155,492) Nonoperating Income (Expenses): Interest earned $ 190,000 $ 486,946 $ 296,946 Office building lease income 81,295 69,295 (12,000) Gain (loss) on sale of assets - 18,204 18,204 Office building maintenance expense (81,295) (103,217) (21,922) Interest expense (1,633,244) (1,518,540) 114,704 Total nonoperating income (expenses) $ (1,443,244) $ (1,047,312) $ 395,932 Income (loss) before contributions $ 4,035,235 $ 4,275,675 $ 240,440 Capital contributions $ 4,858,955 $ 4,818,750 $ (40,205) Change in net position $ 8,894,190 $ 9,094,425 $ 200,235 -92- Statistical Section This part of Western Virginia Water Authority's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Authority's overall financial health. Contents Financial Trends - Tables 1 -6 These schedules contain trend information to help the reader understand how the Authority's financial performance and well -being have changed over time as well as show how the revenue and expenses are split between the water and sewer departments. Revenue Trends and Capacity - Tables 7 -10 These schedules contain trend information to help the reader assess the Authority's most significant revenue sources, user rates, and the growth in water and sewer connections. Debt Service Trends and Capacity - Tables 11 -12 These schedules present trend information to help the reader assess the Authority's current levels of outstanding debt and the capacity to acquire additional debt with appropriate revenue coverage. Demographic and Economic Information - Tables 13 -14 These schedules offer demographic and economic indicators for the participating localities to help the reader understand the environment within which the Authority's financial activities take place. Operating Information - Tables 15 -18 These schedules contain service and infrastructure data to help the reader understand how the information in the Authority's financial report relates to the services the Authority provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the audited financial reports for the relevant year. WESTERN VIRGINIA WATER AUTHORITY Net Position By Component Last Ten Fiscal Years Water Fund Table 1 Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net investment in capital assets $ 314,740,182 $ 301,974,321 $ 287,890,542 $ 282,942,997 $ 275,106,163 $ 270,599,041 $ 268,294,240 $ 264,621,275 $ 272,005,860 5 271,389,037 Unrestricted 26,565,703 26,236,924 29,178,886 23,204,697 24,852,838 19,563,477 19,221,234 17,907,153 12,803,116 10,224,881 Total water fund net position $ 341,305,885 $ 328,211,245 $ 317,069,428 $ 306,147,694 $ 299,959,001 $ 290,162,518 $ 287,515,474 $ 282,528,428 $ 284,808,976 $ 281,613,918 Water Pollution Control Fund W Western Virginia Water Authority (Total all funds) 2020 2019 Net investment in capital assets $ 554,998,068 $ 530,028,807 Unrestricted 40,085,085 42,865,281 Total Western Virginia Water Authority $ 595,083,153 $ 572,894,088 Restatements have been applied retroactively to the extent possible with avz 2018 2017 2016 2015 2014 2013 2012 2011 $ 498,134,373 $ 484,634,713 $ 472,501,267 $ 524,425,307 $ 517,974,747 $ 509,742,484 $ 516,626,626 $ 508,823,556 54,384,341 49,219,528 51,402,336 44,356,138 44,101,526 42,844,622 33,565,281 32,177,923 $ 552,518,714 $ 533,854,241 $ 523,903,603 $ 568,781,445 $ 562,076,273 $ 552,587,106 $ 550,191,907 $ 541,001,479 ilable data. 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net investment in capital assets $ 240,257,886 $ 228,054,486 $ 210,243,831 $ 201,691,716 $ 197,395,104 $ 253,826,266 $ 249,680,507 $ 245,121,209 $ 244,620,766 $ 237,434,519 Unrestricted 13,519,382 16,628,357 25,205,455 26,014,831 26,549,498 24,792,661 24,880,292 24,937,469 20,762,165 21,953,042 Total water pollution control fund net position $ 253,777,268 $ 244,682,843 $ 235,449,286 $ 227,706,547 $ 223,944,602 $ 278,618,927 $ 274,560,799 $ 270,058,678 $ 265,382,931 $ 259,387,561 W Western Virginia Water Authority (Total all funds) 2020 2019 Net investment in capital assets $ 554,998,068 $ 530,028,807 Unrestricted 40,085,085 42,865,281 Total Western Virginia Water Authority $ 595,083,153 $ 572,894,088 Restatements have been applied retroactively to the extent possible with avz 2018 2017 2016 2015 2014 2013 2012 2011 $ 498,134,373 $ 484,634,713 $ 472,501,267 $ 524,425,307 $ 517,974,747 $ 509,742,484 $ 516,626,626 $ 508,823,556 54,384,341 49,219,528 51,402,336 44,356,138 44,101,526 42,844,622 33,565,281 32,177,923 $ 552,518,714 $ 533,854,241 $ 523,903,603 $ 568,781,445 $ 562,076,273 $ 552,587,106 $ 550,191,907 $ 541,001,479 ilable data. WESTERN VIRGINIA WATER AUTHORITY Table 2 Changes in Net Position Last Ten Fiscal Years Water Fund Total Nonoperating Income /(Loss) Change in Fiscal Operating Operating Operating Revenues/ before Capital Capital Net Year Revenues Expenses Income (Loss) (Expenses) Contributions Contributions Position 2011 $ 25,593,681 $ 21,474,008 $ 4,119,673 $ (2,034,901) $ 2,084,772 $ 1,942,203 $ 4,026,975 2012 26,495,481 23,802,637 2,692,844 (2,231,520) 461,324 2,733,734 3,195,058 2013 27,062,236 23,710,753 3,351,483 (6,633,646) (3,282,163) 1,001,615 (2,280,548) 2014 28,597,148 24,725,547 3,871,601 (1,479,084) 2,392,517 2,594,529 4,987,046 2015 28,344,557 24,106,927 4,237,630 (571,705) 3,665,925 1,412,193 5,078,118 2016 30,594,647 22,493,540 8,101,107 33,364 8,134,471 10,425,679 18,560,150 2017 31,692,276 23,146,458 8,545,818 (800,091) 7,745,727 987,935 8,733,662 2018 32,535,962 23,850,906 8,685,056 (623,955) 8,061,101 2,860,633 10,921,734 2019 33,024,141 24,612,088 8,412,053 (475,385) 7,936,668 3,205,149 11,141,817 2020 33,906,922 25,510,520 8,396,402 (550,472) 7,845,930 5,248,710 13,094,640 Water Pollution Control Fund Total Nonoperating Income /(Loss) Change in Fiscal Operating Operating Operating Revenues/ before Capital Capital Net Year Revenues Expenses Income (Loss) (Expenses) Contributions Contributions Position 2011 $ 27,690,477 $ 23,201,862 $ 4,488,615 $ (2,044,259) $ 2,444,356 $ 1,478,042 $ 3,922,398 2012 28,548,004 22,850,559 5,697,445 (2,234,852) 3,462,593 2,532,777 5,995,370 2013 29,003,472 23,727,560 5,275,912 (2,0113990) 3,263,922 1,411,825 4,675,747 2014 30,486,279 24,604,677 5,881,602 (4,565,530) 1,316,072 3,186,049 4,502,121 2015 28,8503165 23,734,208 5,115,957 (1,713,406) 3,402,551 3,674,333 7,076,884 2016 31,427,048 23,976,771 7,450,277 (2,368,015) 5,082,262 3,776,313 8,858,575 2017 31,414,514 24,904,557 6,509,957 (2,107,103) 4,402,854 2,081,666 6,484,520 2018 31,773,686 25,668,356 6,105,330 (1,440,239) 4,665,091 3,077,648 7,742,739 2019 33,164,342 25,429,006 7,735,336 (1,091,578) 6,643,758 2,589,799 9,233,557 2020 33,078,636 27,755,649 5,322,987 (1,047,312) 4,275,675 4,818,750 9,0943425 Western Virginia Water Authority (Total all funds) Total Nonoperating Income /(Loss) Change in Fiscal Operating Operating Operating Revenues/ before Capital Capital Net Year Revenues Expenses Income (Loss) (Expenses) Contributions Contributions Position 2011 $ 53,284,158 $ 44,675,870 $ 8,608,288 $ (4,079,160) $ 4,529,128 $ 3,420,245 $ 7,949,373 2012 55,043,485 46,653,196 8,390,289 (4,466,372) 3,923,917 5,266,511 9,190,428 2013 56,065,708 47,438,313 8,627,395 (8,645,636) (18,241) 2,413,440 2,395,199 2014 59,083,427 49,330,224 9,753,203 (6,044,614) 3,708,589 5,780,578 9,489,167 2015 57,194,722 47,841,135 9,353,587 (2,285,111) 7,068,476 5,086,526 12,155,002 2016 62,021,695 46,470,311 15,551,384 (2,334,651) 13,216,733 14,201,992 27,418,725 2017 63,106,790 48,051,015 15,055,775 (2,907,194) 12,148,581 3,069,601 15,218,182 2018 64,309,648 49,519,262 14,790,386 (2,064,194) 12,726,192 5,938,281 18,664,473 2019 66,188,483 50,041,094 16,147,389 (1,566,963) 14,580,426 5,794,948 20,375,374 2020 66,985,558 53,266,169 133719,389 (1,597,784) 12,121,605 10,067,460 22,189,065 Restatements have been applied retroactively to the extent possible with available data -94- WESTERN VIRGINIA WATER AUTHORITY Operating Revenues By Source Last Ten Fiscal Years Table 3 Water Fund Customer Connection Bulk Fire Other Fiscal Customer Connection Bulk Fire Other Total Year Charges Fees Sales Service Revenues Total 2011 $ 22,679,166 $ 340,800 $ 388,756 $ 1,256,060 $ 928,899 $ 25,593,681 2012 23,718,542 244,009 415,012 1,257,747 860,171 26,495,481 2013 24,292,043 137,376 424,648 1,255,954 952,215 27,062,236 2014 26,046,352 163,304 547,897 1,282,672 556,923 28,597,148 2015 25,460,809 268,972 413,312 1,293,822 907,642 28,344,557 2016 28,039,511 199,344 145,539 1,390,143 820,110 30,594,647 2017 28,650,637 208,811 134,933 1,383,328 1,314,567 31,692,276 2018 29,488,341 202,362 141,951 1,408,434 1,294,874 32,535,962 2019 30,055,104 168,350 158,745 1,454,906 1,187,036 33,024,141 2020 30,787,729 261,673 207,235 1,499,946 1,150,339 33,906,922 Water Pollution Control Fund Fiscal Customer Connection Bulk Fire Other Year Charges Fees Sales Service Revenues Total 2011 $ 24,245,313 $ 56,750 $ 2,180,514 $ $ 1,207,900 $ 27,690,477 2012 25,252,650 73,495 2,059,003 1,162,856 28,548,004 2013 25,604,607 56,375 2,057,766 1,284,724 29,003,472 2014 27,374,347 88,070 2,655,458 368,404 30,486,279 2015 25,864,309 73,050 2,257,530 655,276 28,850,165 2016 28,190,896 73,625 2,550,203 612,324 31,427,048 2017 28,122,335 122,380 1,836,774 1,333,025 31,414,514 2018 28,620,774 95,750 1,645,759 1,411,403 31,773,686 2019 29,275,296 86,400 2,299,175 1,503,471 33,164,342 2020 29,806,176 156,750 1,750,580 483,658 881,472 33,078,636 Western Virginia Water Authority (Total all funds) Fiscal Customer Connection Bulk Fire Other Year Charges Fees Sales Service Revenues Total 2011 $ 46,924,479 $ 397,550 $ 2,569,270 $ 1,256,060 $ 2,136,799 $ 53,284,158 2012 48,971,192 317,504 2,474,015 1,257,747 2,023,027 55,043,485 2013 49,896,650 193,751 2,482,414 1,255,954 2,236,939 56,065,708 2014 53,420,699 251,374 3,203,355 1,282,672 925,327 59,083,427 2015 51,325,118 342,022 2,670,842 1,293,822 1,562,918 57,194,722 2016 56,230,407 272,969 2,695,742 1,390,143 1,432,434 62,021,695 2017 56,772,972 331,191 1,971,707 1,383,328 2,647,592 63,106,790 2018 58,109,115 298,112 1,787,710 1,408,434 2,706,277 64,309,648 2019 59,330,400 254,750 2,457,920 1,454,906 2,690,507 66,188,483 2020 60,593,905 418,423 1,957,815 1,983,604 2,031,811 66,985,558 -95- WESTERN VIRGINIA WATER AUTHORITY Table 4 Operating Expenses Last Ten Fiscal Years Water Fund (Total all funds) Fiscal Year 2020 2019 2018 2017 Fiscal Year 2014 2013 2012 2011 WPC Utility Administration $ 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Water Purchases $ 2,162 $ 7,165 $ 1,955 $ 1,727 $ 1,659 $ 1,826 $ 1,823 $ 13,614 $ 45,304 $ 73,369 Water Treatment 4,931,876 4,637,924 3,844,175 3,960,397 3,788,986 3,771,537 4,223,470 4,222,046 4,189,001 3,936,928 Contract Operations - 18,298 21,286 17,651 21,556 14,264 13,510 13,075 12,495 11,793 Pump ft Storage Operations 1,137,013 1,644,778 1,506,112 1,396,956 1,008,631 1,031,549 1,006,816 999,177 995,066 850,161 Reservoir & Well Operations 625,825 696,280 729,604 502,054 459,828 464,107 498,223 622,854 695,203 542,610 Meter Operations 1,894,090 1,532,228 1,842,268 1,805,187 1,677,561 1,603,979 1,687,302 1,523,192 1,417,095 1,630,937 Water Distribution 4,780,859 4,553,201 4,098,177 4,419,301 4,277,866 4,087,283 4,127,444 3,785,169 3,594,510 3,602,627 Internal Services 3,805,630 3,552,951 4,294,457 4,084,798 4,068,471 3,804,364 3,868,453 3,772,612 3,597,429 3,556,784 Occupancy Cost 26,368 25,582 24,505 24,433 20,926 22,120 20,660 24,292 24,862 24,986 Depreciation and amortization 8,306,697 7,943,681 7,488,367 6,933,954 7,168,056 9,305,898 9,277,846 8,734,722 9,231,672 7,243,813 Total Operating Expenses $ 25,510,520 $ 24,612,088 $ 23,850,906 $ 23,146,458 $ 22,493,540 $ 24,106,927 $ 24,725,547 $ 23,710,753 $ 23,802,637 $ 21,474,008 Water Pollution Control Fund Total Operating Expenses $ 27,755,649 $ 25,429,006 $ 25,668,356 $ 24,904,557 $ 23,976,771 $ 23,734,208 $ 24,604,677 $ 23,727,560 $ 22,850,559 $ 23,201,862 Western Virginia Water Authority (Total all funds) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 WPC Utility Administration $ 5,457,646 $ 4,695,251 $ 4,879,362 $ 4,284,332 $ 4,391,189 $ 4,244,370 $ 4,358,513 $ 4,221,649 $ 3,926,939 $ 3,693,750 WPC Operations 4,662,896 4,740,064 3,925,718 4,219,644 4,276,047 4,172,866 4,124,422 3,871,990 3,914,759 3,989,367 WPC Maintenance 2,054,275 1,887,451 1,887,471 1,806,221 1,947,470 1,817,113 1,931,336 1,884,127 1,862,114 1,917,953 Contract Operations 197,389 217,115 299,555 180,510 149,539 115,032 99,507 115,437 81,724 113,676 Biosolids Handling 1,301,614 936,103 1,337,939 1,258,615 1,217,458 1,097,311 1,544,215 2,178,595 1,881,558 1,685,592 WPC Distribution 5,535,287 3,800,125 3,815,666 3,840,369 3,550,305 3,322,875 3,610,335 3,298,953 3,026,784 2,766,775 Inflow & Infiltration Control 936,103 911,061 1,225,231 1,086,491 1,134,758 1,293,613 1,263,527 1,200,428 1,155,950 1,057,237 Metering & Lift Stations 551,055 358,897 394,873 431,223 436,005 348,152 332,568 257,820 417,690 424,257 Occupancy Cost 26,368 25,582 24,505 22,639 20,926 22,120 20,660 24,292 24,862 24,986 Depreciation and amortization 7,969,119 7,857,357 7,878,036 7,774,513 6,853,074 7,300,756 7,319,594 6,674,269 6,558,179 7,528,269 Total Operating Expenses $ 27,755,649 $ 25,429,006 $ 25,668,356 $ 24,904,557 $ 23,976,771 $ 23,734,208 $ 24,604,677 $ 23,727,560 $ 22,850,559 $ 23,201,862 Western Virginia Water Authority (Total all funds) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Utility Administration $ 9,263,276 $ 8,248,202 $ 9,173,819 $ 8,369,130 $ 8,459,660 $ 8,048,734 $ 8,226,966 $ 7,994,261 $ 7,524,368 $ 7,250,534 Operations and Maintenance 10,571,488 10,736,214 10,212,014 9,928,223 9,540,632 9,218,910 9,361,116 9,029,852 8,978,456 9,056,497 Distribution 10,316,146 8,353,326 7,913,843 8,259,670 7,828,171 7,410,158 7,737,779 7,084,122 6,621,294 6,369,402 Water Purchases 2,162 7,165 1,955 1,727 1,659 1,826 1,823 13,614 45,304 73,369 Water Treatment 4,931,876 4,637,924 3,844,175 3,960,397 3,788,986 3,771,537 4,223,470 4,222,046 4,189,001 3,936,928 Biosolids Handling 1,301,614 936,103 1,337,939 1,258,615 1,217,458 1,097,311 1,544,215 2,178,595 1,881,558 1,685,592 Inflow & Infiltration Control - 911,061 1,225,231 1,086,491 1,134,758 1,293,613 1,263,527 1,200,428 1,155,950 1,057,237 Metering & Lift Stations 551,055 358,897 394,873 431,223 436,005 348,152 332,568 257,820 417,690 424,257 Occupancy Cost 52,736 51,164 49,010 47,072 41,852 44,240 41,320 48,584 49,724 49,972 Depreciation and amortization 16,275,816 15,801,038 15,366,403 14,708,467 14,021,130 16,606,654 16,597,440 15,408,991 15,789,851 14,772,082 Total Operating Expenses $ 53,266,169 $ 50,041,094 $ 49,519,262 $ 48,051,015 $ 46,470,311 $ 47,841,135 $ 49,330,224 $ 47,438,313 $ 46,653,196 $ 44,675,870 -96- WESTERN VIRGINIA WATER AUTHORITY Nonoperating Revenues and Expenses Last Ten Fiscal Years Table 5 Water Fund Total Gain (Loss) Nonoperating Fiscal Interest Rental on Disposal Insurance Rental Total Nonoperating Income/ Year Gain (Loss) Income of Assets Recoveries Expense Nonoperating Fiscal Interest Rental on Disposal Insurance Rental Interest Nonoperating Income/ Year Earned Income of Assets Recoveries Expense Expense Contributions (Expenses) 2011 $ 76,813 $ 489,614 $ (193,647) $ 30,493 $ (138,346) $ (2,920,965) $ 621,137 $ (2,034,901) 2012 82,402 472,312 (96,364) 23,209 (120,203) (3,214,585) 621,709 (2,231,520) 2013 51,110 509,273 (4,653,555) 46,675 (121,334) (3,081,726) 615,911 (6,633,646) 2014 25,095 546,830 15,630 92,660 (117,418) (2,657,611) 615,730 (1,479,084) 2015 17,230 587,917 45,144 30,887 (125,829) (1,817,881) 690,827 (571,705) 2016 25,459 617,475 1,114,048 - (122,976) (2,202,770) 602,128 33,364 2017 72,331 633,115 (173,635) 96,213 (141,648) (1,929,990) 739,736 (800,091) 2018 347,712 719,081 3,408 69,295 (128,439) (2,298,009) 732,292 (623,955) 2019 465,200 757,539 28,127 (120,599) (2,329,826) 724,174 (475,385) 2020 341,835 730,152 20,842 (103,217) (2,084,038) 543,954 (550,472) Water Pollution Control Fund -97- Total Gain (Loss) Nonoperating Fiscal Interest Rental on Disposal Insurance Rental Interest Nonoperating Income/ Year Earned Income of Assets Recoveries Expense Expense Contributions (Expenses) 2011 $ 204,887 $ 127,618 $ 12,554 $ 1,194 $ (138,346) $ (2,252,166) $ $ (2,044,259) 2012 155,208 93,878 51,187 4,620 (120,203) (2,419,542) (2,234,852) 2013 100,354 92,675 63,796 29,963 (121,334) (2,177,444) (2,011,990) 2014 56,651 93,322 38,377 1,493 (117,418) (1,883,627) (2,754,328) (4,565,530) 2015 44,840 97,195 23,650 241 (125,829) (1,753,503) (1,713,406) 2016 62,754 97,471 32,566 - (122,976) (2,437,830) (2,368,015) 2017 115,549 100,326 5,004 (141,648) (2,186,334) (2,107,103) 2018 351,586 104,635 6,990 (128,439) (1,775,011) (1,440,239) 2019 501,009 96,213 11,970 (120,599) (1,580,171) (1,091,578) 2020 486,946 69,295 18,204 (103,217) (1,518,540) (1,047,312) Western Virginia Water Authority (Total all funds) Total Gain (Loss) Nonoperating Fiscal Interest Rental on Disposal Insurance Rental Interest Nonoperating Income/ Year Earned Income of Assets Recoveries Expense Expense Contributions (Expenses) 2011 $ 281,700 $ 617,232 $ (181,093) $ 31,687 $ (276,692) $ (5,173,131) $ 621,137 $ (4,079,160) 2012 237,610 566,190 (45,177) 27,829 (240,406) (5,634,127) 621,709 (4,466,372) 2013 151,464 601,948 (4,589,759) 76,638 (242,668) (5,259,170) 615,911 (8,645,636) 2014 81,746 640,152 54,007 94,153 (234,836) (4,541,238) (2,138,598) (6,044,614) 2015 62,070 685,112 68,794 31,128 (251,658) (3,571,384) 690,827 (2,285,111) 2016 88,213 714,946 1,146,614 - (245,952) (4,640,600) 602,128 (2,334,651) 2017 187,880 733,441 (168,631) (283,296) (4,116,324) 739,736 (2,907,194) 2018 699,298 823,716 10,398 (256,878) (4,073,020) 732,292 (2,064,194) 2019 966,209 853,752 40,097 (241,198) (3,909,997) 724,174 (1,566,963) 2020 828,781 799,447 39,046 (206,434) (3,602,578) 543,954 (1,597,784) -97- WESTERN VIRGINIA WATER AUTHORITY Annual Capital Contributions by Source Last Ten Fiscal Years Table 6 Water Fund Water Fiscal Availability Developer Year Fees Contributions Governments Other Total 2011 $ 649,300 $ 786,520 $ 506,383 $ $ 1,942,203 2012 549,073 1,156,080 1,028,581 2,733,734 2013 510,665 440,450 50,500 1,001,615 2014 593,843 1,197,186 803,500 2,594,529 2015 890,376 316,900 204,917 1,412,193 2016 815,750 3,322,487 832,744 4,970,981 2017 771,828 181,220 34,887 987,935 2018 1,322,250 807,785 730,598 2,860,633 2019 963,250 1,295,170 946,729 3,205,149 2020 1,135,500 1,201,525 2,711,685 200,000 5,248,710 Water Pollution Control Fund Sewer Fiscal Availability Developer Year Fees Contributions Governments Other Total 2011 $ 625,500 $ 490,942 $ 361,600 $ $ 1,478,042 2012 515,125 1,159,360 858,292 2,532,777 2013 524,225 148,665 738,935 1,411,825 2014 490,375 759,510 1,936,164 3,186,049 2015 726,500 347,910 2,599,923 3,674,333 2016 842,500 1,574,298 809,475 3,226,273 2017 825,500 220,450 1,035,716 2,081,666 2018 1,274,400 710,295 1,092,953 3,077,648 2019 1,053,350 632,950 903,499 2,589,799 2020 1,043,000 690,270 3,085,480 4,818,750 Western Virginia Water Authority (Total all funds) Fiscal Availability Developer Year Fees Contributions Governments Other Total 2011 $ 1,274,800 $ 1,277,462 $ 867,983 $ $ 3,420,245 2012 1,064,198 2,315,440 1,886,873 5,266,511 2013 1,034,890 589,115 789,435 2,413,440 2014 1,084,218 1,956,696 2,739,664 5,780,578 2015 1,616,876 664,810 2,804,840 5,086,526 2016 1,658,250 4,896,785 1,642,219 8,197,254 2017 1,597,328 401,670 1,070,603 3,069,601 2018 2,596,650 1,518,080 1,823,551 5,938,281 2019 2,016,600 1,928,120 1,850,228 5,794,948 2020 2,178,500 1,891,795 5,797,165 200,000 10,067,460 M WESTERN VIRGINIA WATER AUTHORITY Water Produced, Consumed and Wastewater Treated Gallons In Thousands Last Ten Fiscal Years Table 7 Gallons of Gallons of Gallons of Average Gallons of Fiscal Water Water Water Percent Wastewater Year Produced Consumed Unbilled Unbilled Treated (1) 2011 7,487,117 5,188,055 2,299,062 31% 13,550,000 2012 6,961,800 5,183,625 1,778,175 26% 13,468,900 2013 7,038,139 5,148,885 1,889,254 27% 12,951,500 2014 7,196,846 5,289,324 1,907,522 27% 14,594,100 2015 6,971,725 5,074,953 1,896,772 27% 13,351,400 2016 7,178,773 5,272,062 1,906,711 27% 16,324,800 2017 7,459,384 5,133,048 2,326,336 31% 13,714,900 2018 7,362,390 5,224,934 2,137,456 29% 11,490,800 2019 6,861,308 5,127,958 1,733,350 25% 16,591,900 2020 6,645,576 5,055,073 1,590,503 24% 13,772,300 (1) Regional flow Data provided by Western Virginia Water Authority Billing Et Customer Service. .. WESTERN VIRGINIA WATER AUTHORITY Number of Customers Last Ten Fiscal Years Table 8 Fiscal Water Sewer Total Year Residential Commercial Industrial Residential Commercial Industrial Bulk Water Sewer 2011 53,266 4,440 35 47,317 4,082 29 3 57,741 51,431 2012 53,642 4,465 33 47,438 4,094 27 3 581140 51,562 2013 53,910 4,536 23 47,644 4,139 18 3 58,469 51,804 2014 52,374 5,123 25 47,659 4,190 14 3 571522 51,866 2015 52,560 5,157 27 47,872 4,086 12 3 57,744 51,973 2016 53,831 5,257 34 49,704 4,491 22 2 59,122 54,219 2017 56,551 5,578 35 51,292 4,572 23 2 62,163 55,889 2018 57,037 5,615 33 51,567 4,502 19 2 62,685 56,090 2019 57,342 5,597 34 51,876 4,611 23 2 62,973 56,512 2020 57,729 5,699 34 52,115 4,601 23 2 63,462 56,741 Data provided by Western Virginia Water Authority Billing li Customer Service. 11 WESTERN VIRGINIA WATER AUTHORITY Schedule of User Rates (1) Last Ten Fiscal Years Table 9 -101- Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Water Rates: City of Roanoke Residents (4) Water Fixed Rate $12.75 $12.25 $11.75 $11.25 $10.75 $10.25 $9.50 $8.65 $8.65 $7.75 Water Variable Rate 3.20 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Average monthly residential bill 28.75 27.25 26.75 26.25 25.75 25.25 24.50 23.65 23.65 22.75 County of Roanoke Residents (4) Water Fixed Rate $12.75 $12.25 $11.75 $11.25 $10.75 $10.25 $9.50 $8.65 $8.65 $7.75 Water Variable Rate 3.20 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Average monthly residential bill 28.75 27.25 26.75 26.25 25.75 25.25 24.50 23.65 23.65 22.75 County of Franklin Residents (2) Water Fixed Rate $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $32.00 $32.00 Water Variable Rate 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 8.00 8.00 Average monthly residential bill 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 32.00 32.00 County of Botetourt Residents (3) Water Fixed Rate $12.25 $12.25 $12.25 $12.25 $12.25 na na na na na Water Variable Rate 4.75 4.75 4.75 4.75 4.75 na na na na na Average monthly residential bill 36.00 36.00 36.00 36.00 36.00 na na na na na Sewer Rates: City of Roanoke Residents (4) Sewer Fixed Rate $16.50 $15.50 $14.75 $14.25 $13.75 $13.00 $12.75 $12.25 $12.10 $11.20 Sewer Variable Rate 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.50 3.50 3.50 Average monthly residential bill 35.25 34.25 33.50 33.00 32.50 31.75 31.50 29.75 29.60 28.70 County of Roanoke Residents (4) Sewer Fixed Rate $16.50 $15.50 $14.75 $14.25 $13.75 $13.00 $12.25 $12.25 $12.10 $11.20 Sewer Variable Rate 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.50 3.50 3.50 Average monthly residential bill 35.25 34.25 33.50 33.00 32.50 31.75 31.00 29.75 29.60 28.70 County of Franklin Residents (2) Sewer Fixed Rate $16.50 $15.50 $14.75 $14.25 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 Sewer Variable Rate 4.20 6.00 6.35 6.75 7.60 7.60 7.60 7.60 7.60 7.60 Average monthly residential bill 37.50 45.50 46.50 48.00 49.00 49.00 49.00 49.00 49.00 49.00 County of Botetourt Residents (3) Sewer Fixed Rate $16.50 $15.50 $14.75 $14.25 $14.00 na na na na na Sewer Variable Rate 3.75 3.75 3.75 3.75 3.75 na na na na na Average monthly residential bill 35.25 34.25 33.50 33.00 32.75 na na na na na Residential bill based on 5/8 inch meter using 5,000 gallons (1) Rates effective January 1 of each year (2) County of Franklin joined the Authority in fiscal year 2010, rates are not applicable for years before fiscal year 2010 (3) County of Botetourt joined the Authority in fiscal year 2016, rates are not applicable for years before fiscal year 2016 (4) Rates approved by the Western Virginia Water Authority Board of Directors. Data provided by Western Virginia Water Authority Billing & Customer Service. -101- WESTERN VIRGINIA WATER AUTHORITY Table 10 Principal Customers Comparison of June 30, 2020 and 2011 Data provided by Western Virginia Water Authority Billing Et Customer Service. NOW Fiscal Year 2020 Water Consumption Sewer Flow Customer in 000 /gals % of System in 000 /gals % of System Norfolk Southern Corporation 160,748 3.2% 187,421 4.7% Coca Cola 118,099 2.3% 22,507 0.6% Carilion 98,323 1.9% 78,258 2.0% Roanoke Redevelopment and Housing Authority 83,212 1.6% 82,382 2.0% Steel Dynamics Roanoke 50,897 1.0% 37,475 0.9% Dynax America Corporation 44,024 0.9% 44,024 1.1% Hollins University 38,621 0.8% 29,311 0.7% Ardagh Metal Packaging USA Inc. 33,174 0.7% 33,174 0.8% ITT Exelis 29,036 0.6% 21,006 0.5% City of Roanoke Schools 28,648 0.5% 28,587 0.7% Total consumption (principal customers) 684,782 13.5% 564,145 14.0% Balance from other customers 4,370,291 86.5% 3,469,079 86.0% Total system annual consumption 5,055,073 100.0% 4,033,224 100.0% Fiscal Year 2011 Water Consumption Sewer Flow Customer in 000 /gals % of System in 000 /gals % of System Wometco Coca Cola 129,111 2.5% 46,790 1.1% Carilion Hospitals 115,811 2.2% 94,294 2.2% Norfolk Southern Corporation 90,291 1.7% 38,143 0.9% Roanoke Redevelopment and Housing Authority 87,165 1.7% 87,165 2.0% ITT 65,914 1.3% 57,598 1.4% Steel Dynamics 62,159 1.2% 22,047 0.5% Snyder Hunt Corporation 58,844 1.1% 58,844 1.4% Pepsi Bottling Group 38,996 0.8% - 0.0% Hollins University 35,597 0.7% 25,911 0.6% Maple Leaf Bakery 25,781 0.5% 25,781 0.6% Total consumption (principal customers) 709,669 13.7% 456,573 10.7% Balance from other customers 4,478,386 86.3% 3,828,373 89.3% Total system annual consumption 5,188,055 100.0% 4,284,946 100.0% Data provided by Western Virginia Water Authority Billing Et Customer Service. NOW WESTERN VIRGINIA WATER AUTHORITY Ratios of Outstanding Debt by Type Last Ten Fiscal Years Locality Table 11 Water Fund Fiscal Revenue Compensation Per Year Locality Payments Total Fiscal Revenue Compensation 55,664,136 Per Year Bonds Payments Total Connection 2011 $ 61,645,717 $ 8,284,866 $ 69,930,583 $ 1,200 2012 79,352,270 6,560,446 85,912,716 1,472 2013 76,461,851 4,914,900 81,376,751 1,391 2014 74,404,938 3,184,900 77,589,838 1,322 2015 70,843,099 2,863,500 73,706,599 1,250 2016 67,976,059 2,300,800 70,276,859 1,165 2017 65,094,505 1,953,900 67,048,405 1,108 2018 75,426,147 1,598,200 77,024,347 1,267 2019 75,254,507 1,224,800 76,479,307 1,252 2020 68,674,647 845,516 69,520,163 1,133 Water Pollution Control Fund Western Virginia Water Authority (Total all funds) Locality Fiscal Revenue Compensation Per Year Bonds Payments Total Connection 2011 $ 55,664,136 $ 11,475,000 $ 67,139,136 $ 1,301 2012 66,025,906 10,901,817 76,927,723 1,489 2013 68,224,251 8,475,000 76,699,251 1,481 2014 72,117,929 10,554,359 82,672,288 1,591 2015 73,806,707 9,774,390 83,581,097 1,603 2016 76,034,133 9,694,420 85,728,553 1,543 2017 70,724,505 8,990,778 79,715,283 1,430 2018 64,216,604 8,013,990 72,230,594 1,291 2019 58,015,111 7,031,409 65,046,520 1,158 2020 57,463,825 6,023,156 63,486,981 1,125 Western Virginia Water Authority (Total all funds) M1110 Locality Fiscal Revenue Compensation Per Year Bonds Payments Total Connection 2011 $ 117,309,853 $ 19,759,866 $ 137,069,719 $ 1,249 2012 145,378,176 17,462,263 162,840,439 1,480 2013 144,686,102 13,389,900 158,076,002 1,434 2014 146,522,867 13,739,259 160,262,126 1,448 2015 144,649,806 12,637,890 157,287,696 1,416 2016 144,010,192 11,995,220 156,005,412 1,346 2017 135,819,010 10,944,678 146,763,688 1,262 2018 139,642,751 9,612,190 149,254,941 1,279 2019 133,269,618 8,256,209 141,525,827 1,207 2020 126,138,472 6,868,672 133,007,144 1,129 M1110 WESTERN VIRGINIA WATER AUTHORITY Schedule of Debt Service Ft Coverage I act Ten Fiscal Years Water Fund Fiscal Operating Year Revenues 2011 $ 25,593,681 $ 2012 26,495,481 2013 27,062,236 2014 28,597,148 2015 28,344,557 2016 30,594,647 2017 31,692,276 2018 32,535,962 2019 33,024,141 2020 33,906,922 Availability Interest Fees Earnings 649,300 $ 76,813 $ 549,073 82,402 510,665 51,110 593,843 25,095 890,376 17,230 815,750 25,459 771,828 72,331 1,322,250 347,712 963,250 465,200 1,135,500 341,835 Water Pollution Control Fund Fiscal Operating Year Revenues 2011 $ 27,690,477 $ 2012 28,548,004 2013 29,003,472 2014 30,486,279 2015 28,850,165 2016 31,427,048 2017 31,414,514 2018 31,773,686 2019 33,164,342 2020 33,078,636 Availability Interest Fees Earnings 625,500 $ 204,887 $ 515,125 155,208 524,225 100,354 490,375 56,651 726,500 44,840 842,500 62,754 825,500 115,549 1,274,400 351,586 1,053,350 501,009 1,043,000 486,946 Western Virginia Water Authority (Total all funds) Fiscal Operating Year Revenues 2011 $ 53,284,158 $ 2012 55,043,485 2013 56,065,708 2014 59,083,427 2015 57,194,722 2016 62,021,695 2017 63,106,790 2018 64,309,648 2019 66,188,483 2020 66,985,558 Availability Interest Fees Earnings 1,274,800 $ 281,700 $ 1,064,198 237,610 1,034,890 151,464 1,084,218 81,746 1,616,876 62,070 1,658,250 88,213 1,597,328 187,880 2,596,650 699,298 2,016,600 966,209 2,178,500 828,781 Table 12 Non- Net Operating operating Gross (excluding Non- Non- Expenses Expenses Non- Net Debt Gross operating Gross (excluding operating Available Service Coverage Revenues Revenues depreciation) Expenses Revenues Requirements Ratio 1,141,244 $ 27,461,038 $ 14,230,195 $ 138,346 $ 13,092,497 $ 7,594,064 1.72 1,117,230 28,244,186 14,570,965 120,203 13,553,018 8,120,261 1.67 1,171,859 28,795,870 14,976,031 121,334 13,698,505 8,468,400 1.62 1,270,850 30,486,936 15,447,701 117,418 14,921,817 8,871,666 1.68 1,354,775 30,606,938 14,801,029 125,829 15,680,080 7,463,889 2.10 2,333,651 33,769,507 15,325,484 122,976 18,321,047 8,399,023 2.18 1,372,851 33,909,286 16,212,504 141,648 17,555,134 7,245,574 2.42 1,453,781 35,659,705 16,362,539 128,439 19,168,727 7,245,574 2.65 1,509,840 35,962,431 16,668,407 120,599 19,173,425 8,745,177 2.19 1,294,948 36,679,205 17,203,823 103,217 19,372,165 9,892,532 1.96 Non- Net Operating operating Gross (excluding Non- Revenues Expenses Non- Net Debt operating Gross (excluding operating Available Service Revenues Revenues depreciation) Expenses Revenues Requirements 2,463,688 128,812 $ 28,649,676 $ 15,673,593 $ 138,346 $ 12,837,737 $ 6,345,274 98,498 29,316,835 16,292,380 120,203 12,904,252 6,601,266 122,638 29,750,689 17,053,291 121,334 12,576,064 8,484,702 133,192 31,166,497 17,285,083 117,418 13,763,996 7,466,653 121,086 29,742,591 16,433,452 125,829 13,183,310 7,965,573 130,037 32,462,339 17,123,697 122,976 15,215,666 11,391,519 105,330 32,460,893 17,130,044 141,648 15,189,201 9,318,081 111,625 33,511,297 17,790,320 128,439 15,592,538 9,276,408 108,183 34,826,884 17,571,649 120,599 17,134,636 8,776,476 87,499 34,696,081 19,786,530 103,217 14,806,334 8,161,885 Non- Net Expenses operating Gross (excluding Revenues Revenues depreciation) 1,270,056 $ 56,110,714 $ 29,903,788 $ 1,215,728 57,561,021 30,863,345 1,294,497 58,546,559 32,029,322 1,404,042 61,653,433 32,732,784 1,475,861 60,349,529 31,234,481 2,463,688 66,231,846 32,449,181 1,478,181 66,370,179 33,342,548 1,565,406 69,171,002 34,152,859 1,618,023 70,789,315 34,240,056 1,382,447 71,375,286 36,990,353 -104- Non- Net Debt operating Available Service Expenses Revenues Requirements 276,692 $ 25,930,234 $ 13,939,338 240,406 26,457,270 14,721,527 242,668 26,274,569 16,953,102 234,836 28,685,813 16,338,319 251,658 28,863,390 15,429,462 245,952 33,536,713 19,790,542 283,296 32,744,335 16,563,655 256,878 34,761,265 16,521,982 241,198 36,308,061 17,521,653 206,434 34,178,499 18,054,417 Coverage Ratio 2.02 1.95 1.48 1.84 1.66 1.34 1.63 1.68 1.95 1.81 Coverage Ratio 1.86 1.80 1.55 1.76 1.87 1.69 1.98 2.10 2.07 1.89 WESTERN VIRGINIA WATER AUTHORITY Demographic Statistics Last Ten Fiscal Years Table 13 (1) Estimate from City of Roanoke (2) Estimate from County of Roanoke can (3) Estimate from County of Franklin ' (4) Estimate from County of Botetourt (5) Source: Bureau of Labor Statistics County of County of County of County of County of County of City of City County of Roanoke County of Franklin County of Botetourt City of Roanoke Roanoke Franklin Botetourt National Fiscal Roanoke Per Capita Roanoke Per Capita Franklin Per Capita Botetourt Per Capita Unemployment Unemployment Unemployment Unemployment Unemployment Year Population (1) Income (1) Population (2) Income (2) Population (3) Income (3) Population (4) Income (4) Rate (1) Rate (2) Rate (3) Rate (4) Rate (5) 2011 97,061 $ 36,948 92,376 $ 40,688 56,225 $ 30,254 33,209 $ 40,796 6.9% 5.7% 6.4% 5.8% 9.1% 2012 97,206 39,100 92,687 42,288 56,419 30,244 33,399 43,721 6.5% 5.6% 6.2% 5.6% 8.2% 2013 98,641 38,453 93,256 42,288 56,616 32,193 33,293 45,320 6.4% 5.5% 4.9% 5.2% 7.5% 2014 98,913 39,385 92,703 45,577 56,616 33,314 33,423 45,320 5.7% 5.2% 5.2% 5.1% 6.1% 2015 99,320 39,385 93,569 48,047 56,793 33,356 33,521 46,664 5.6% 4.5% 5.2% 4.6% 5.3% 2016 99,681 39,385 93,775 48,384 56,373 34,586 33,486 45,055 4.1% 3.5% 4.2% 3.7% 4.9% 2017 99,644 40,947 93,924 49,860 56,205 37,035 33,176 46,811 4.5% 3.6% 4.1% 3.6% 4.4% 2018 99,837 42,263 93,735 52,248 56,427 37,300 33,350 46,748 3.4% 3.1% 3.9% 3.2% 4.0% 2019 99,920 41,946 93,672 52,248 56,127 38,707 33,288 48,013 2.8% 2.7% 3.1% 2.6% 3.7% 2020 99,348 43,451 93,805 52,248 55,782 40,781 33,494 49,948 7.9% 7.0% 3.2% 3.7% 11.1% (1) Estimate from City of Roanoke (2) Estimate from County of Roanoke can (3) Estimate from County of Franklin ' (4) Estimate from County of Botetourt (5) Source: Bureau of Labor Statistics WESTERN VIRGINIA WATER AUTHORITY Table 14 Principal Area Employers Comparison of June 30, 2020 and 2011 Carilion Hospitals Fiscal Year 2020 Employer Employees (1,2) Rank Roanoke County Schools 2000+ 1 Wells Fargo Operations Center 2000+ 2 County of Roanoke 1000+ 3 Carilion Hospitals 1000+ 4 Roanoke City Public Schools 1000+ 5 City of Roanoke 1000+ 6 Franklin County Public Schools 1000+ 7 Ply Gem Windows (MW Manufacturers) 1000+ 8 Altec Industries Inc 1000+ 9 Botetourt County School Board 500 -999 10 Fiscal Year 2011 Employer Employees Rank Carilion Hospitals 1,000+ 1 Roanoke City Public Schools 1,000+ 2 Roanoke County Schools 1,000+ 3 Franklin County Public Schools 1,000+ 4 City of Roanoke 1,000+ 5 Wells Fargo Bank 1,000+ 6 Allstate Insurance Company 1,000+ 7 MW Manufacturers, Inc 1,000+ 8 Carilion Services 1,000+ 9 County of Roanoke 1,000+ 10 (1) Per current Virginia Employment Guidelines, actual number of employees for each employer are no longer available for publication. (2) Data provided by City of Roanoke, County of Roanoke, Franklin and Botetourt. -106- WESTERN VIRGINIA WATER AUTHORITY Number of Employees by Identifiable Activity Last Ten Fiscal Years Table 15 Total Employees 294 292 287 287 287 274 272 268 268 264 Data provided by Western Virginia Water Authority Payroll Et Human Resources. Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Water Operations Water Administration 7 7 7 7 7 8 4 4 4 4 Carvins Cove 10 10 10 10 10 11 14 14 14 12 Spring Hollow 11 11 11 11 11 13 14 14 14 15 Crystal Springs 2 2 2 2 2 2 1 1 1 1 Falling Creek 2 2 2 2 2 2 2 2 2 2 Pump & Storage 11 11 11 12 12 5 4 4 4 5 Well Operation 3 3 3 3 2 2 3 3 3 3 Meter 8 Distribution Operations 27 27 27 26 26 26 22 22 22 22 Watershed Maintenance/ Security 2 2 2 2 2 2 3 3 3 4 Field Operations Field Operations Administration 6 6 6 6 6 6 6 6 6 8 Field Operations Water 36 36 31 31 31 31 31 31 31 32 p Field Operations Sewer Maintenance 19 19 19 19 19 19 18 14 14 13 Field Operations Sewer Construction 28 28 28 28 28 24 22 22 22 17 Water Pollution Control Operation WPC Administration 4 4 4 4 4 5 5 5 5 3 WPC Operations 28 28 28 28 28 28 31 31 31 33 WPC Maintenance 23 23 23 23 19 19 20 20 20 20 WPC Inflow 8 Infiltration Control 14 14 14 14 14 14 14 14 14 14 Water Pollution Pretreatment 7 7 7 7 7 6 2 2 2 2 Administration General Administration 3 3 3 3 3 3 4 4 4 4 Finance, Payroll @ Human Resources 10 10 10 10 9 9 12 12 12 10 Billing 8t Customer Service 14 14 14 15 21 15 15 15 15 15 Information Technology 4 4 4 3 3 3 3 3 3 3 Engineering 23 21 21 21 21 21 22 22 22 22 Total Employees 294 292 287 287 287 274 272 268 268 264 Data provided by Western Virginia Water Authority Payroll Et Human Resources. WESTERN VIRGINIA WATER AUTHORITY Operating Statistics Last Ten Fiscal Years Water System Number of service connections Number of treatment plants Treatment capacity (MGD) Average production (MGD) Number of storage tanks Number of pump stations Miles of water mains 0 w Wastewater System Table 16 2014 2013 2012 2011 Fiscal Year 2020 2019 2018 2017 2016 2015 61,354 61,080 60,772 60,530 60,315 58,951 13 13 13 12 4 4 58 58 58 58 56 56 18 19 20 20 19 19 102 101 104 116 116 123 57 57 58 76 75 88 1,237 1,222 1,217 1,202 1,174 1,123 Table 16 2014 2013 2012 2011 58,708 58,488 58,382 58,295 4 4 4 4 56 56 56 56 19 19 19 21 123 123 123 121 88 87 86 85 1,107 1,098 1,093 1,087 Data provided by Western Virginia Water Authority Engineering Services. Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Number of service connections 56,418 56,161 55,955 55,750 55,572 52,147 51,959 51,774 51,681 51,607 Number of treatment plants 6 6 6 6 5 3 2 2 2 2 WPC plant permit (MGD) 55 55 55 55 55 55 55 55 55 55 Average annual daily flow (MGD) 38 46 38 38 45 36 36 36 37 37 Number of lift stations 27 27 27 30 30 25 25 25 25 24 Miles of sewer mains 987 977 978 974 973 891 873 873 874 873 Data provided by Western Virginia Water Authority Engineering Services. WESTERN VIRGINIA WATER AUTHORITY Schedule of New Connections Last Ten Fiscal Years Table 17 Fiscal Water Cumulative % Water Sewer Cumulative % Sewer Total Year Connections Connections Growth Connections Connections Growth Services 2011 76 58,295 0.13% 47 51,607 0.09% 109,902 2012 87 58,382 0.15% 74 51,681 0.14% 110,063 2013 106 58,488 0.18% 93 51,774 0.18% 110,262 2014 220 58,708 0.38% 185 51,959 0.36% 110,667 2015 243 58,951 0.41% 188 52,147 0.36% 111,098 CD 2016 1,364 60,315 2.31% 3,425 55,572 6.57% 115,887 2017 215 60,530 0.36% 178 55,750 0.32% 116,280 2018 242 60,772 0.40% 205 55,955 0.37% 116,727 2019 308 61,080 0.51% 206 56,161 0.37% 117,241 2020 274 61,354 0.45% 257 56,418 0.46% 117,772 Data provided by Western Virginia Water Authority Billing &t Customer Service. WESTERN VIRGINIA WATER AUTHORITY Water Consumption and Wastewater Flow by Customer Group Gallons In Thousands Last Ten Fiscal Years Water Fund Type of Customer: Residential consumption Commercial consumption Industrial consumption Total Water Pollution Control Fund 0 Type of Customer: Residential flow Commercial flow Industrial flow Total 2020 2019 Fiscal Year 2018 2017 2016 2015 2014 2013 2012 Table 18 2011 2,590,863 2,506,164 2,566,209 2,537,563 2,251,472 2,461,620 2,694,799 2,736,616 2,769,791 2,808,711 2,097,566 2,215,386 2,240,255 2,135,409 2,565,490 2,255,711 2,131,720 2,001,987 1,980,964 1,987,898 366,644 406,408 418,470 460,076 455,100 357,622 462,860 410,281 432,870 391,445 5,055,073 5,127,958 5,224,934 5,133,048 5,272,062 5,074,953 5,289,379 5,148,884 5,183,625 5,188,054 Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 1,838,581 1,822,976 2,074,861 1,825,595 1,882,257 1,815,311 2,147,812 2,255,115 2,284,818 2,328,346 1,918,938 2,059,914 1,839,535 2,021,710 2,075,862 1,958,585 1,999,867 1,865,559 1,846,436 1,860,807 275,705 291,541 318,980 372,085 353,663 265,991 332,776 172,945 110,032 95,793 4,033,224 4,174,431 4,233,376 4,219,390 4,311,782 4,039,887 4,480,455 4,293,619 4,241,286 4,284,946 Data provided by Western Virginia Water Authority Billing It Customer Service. ROBINSON, FARMER, COX ASSOCIATES, PLLC Certified Public Accountants CPAs CONSULTANTS Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Board of Directors Western Virginia Water Authority Roanoke, Virginia We have audited, in accordance with the auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Authorities, Boards, and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the business -type activities of the Western Virginia Water Authority as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Western Virginia Water Authority's basic financial statements and have issued our report thereon dated October 23, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Western Virginia Water Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Western Virginia Water Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Western Virginia Water Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Western Virginia Water Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Blacksburg, Virginia October 23, 2020 -112- CECELIA F. NICCOY, ChIC Cih Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E-mail: clerkCa roanokeva.Vv January 5, 2021 Alicha Grubb Roanoke Neighborhood Advocates Roanoke, Virginia Dear Ms. Grubb: CECELIA T. WEBB, CDIC Deputy CRY Clerk This is to advise you that Rosheta Chase has qualified as a member of the Roanoke Neighborhood Advocates to fill the unexpired term of office of Katelynn Lewis ending September 30, 2021. Sincerely, Cecelia F. McCoy, CMC City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Rosheta Chase, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Roanoke Neighborhood Advocates to fill the unexpired term of office of Katelynn Lewis ending September 30, 2021, according to the best of my ability. (So help me God.) n OSHETA CHASE The foregoing oath of office was taken, sworn to, and subscribed before me by Rosheta Chase this2,L__ day of 2020. Brenda S. Hamilton, Clerk of the Circuit Court CECELIA F. NICCOY, CMC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E-mail: clerkCa roanokeva.gov January 5, 2021 Angela O'Brien Assistant to the City Manager Roanoke, Virginia Dear Ms. O'Brien: CECELIA T. NVE1313, CDIC Deputy CitY Clerk This is to advise you that Pamela Smith has qualified as a member (Citizen -at- Large /Medical) of the Youth Services Citizen Board for a term of office ending June 30, 2023. Sincerely, O- 1411 Cecelia F. McCoy, CMC City Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Pamela Smith, do solemnly swear (or affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a (Citizen -at -large /Medical) representative of the Youth Services Citizen Board for a term of office ending June 30, 2023, according to the best of my ability. (So help me God.) AMIN The foregoing oath of office was taken, sworn to, and subscribed before me by Pamela Smith, this 2 9 day of&_Qn- 3LQI-rM20. Brenda S. Hamilton, Clerk of the Circuit Court By 4C , Clerk 4-�� b��X,-5 Roanoke City Council General Reassessment Briefing FY 2021 - 2022 January 4 2021 FY 2022 Real Estate Assessment Projections Reassessment New Construction Total Increase $165,438,000 2.08% $48,604,700 0.61% $214,042,700 2.69% Single Family Multi - Family Commercial Total $4,268,938,500 $727,718,600 $2,965,458,500 $7,962,115,600 $4,460,838,900 4.50% $734,917,100 0.99% $2,980,402,300 0.50% $8,176,158,300 2.69% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% -2.00% -2.50% 3.00% FY 2012 -2013 Assessment History by Fiscal Year 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017.2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Source: PROVAL Database Includes new construction FY 2020 — 2021 projects permits complete through Jun 30, 2021 FY 2021 -2022 is a projection Residential includes Multi- family —- Residential Commercial Total Assessment New Construction History by Fiscal Year $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40, 000,000 S20,000,000 FY 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2015 — 2020 Actual certified permit values FY 2020 - 2021 Based on Projections through June 30, 2021 FY 2020 — 2021 Includes multi -fam units in District Vue Apts Residential New Construction Value Commercial New Construction Value Total New Construction Value Chart Area M W 3 O pr00 Ki dC•DO 1000 5 CC History of Residential Sales and Foreclosures 2011 2012 2013 2456 2 2014 2015 2016 2017 2018 2011 2020* Calendar Year QForeelosures ■Valid Sales 13 Total *2020 — Sales from January through October - annualized Median Residential Sales Price 2010 to 2020 $184,000 5165,000 S160,000 S150,w S140,000 $139,900 5141,000 5134,200 5134,475 5134,50D 5136,004 $131,000 $131,000 5130,S130,900 5120,000 u � 5100,000 e %ff sw 000 $60,000 $40,000 $24,000 SO 2010 2011 2012 <G ' 2014 2015 2- 2017 2018 ;.Q 2020 Calendar Year `2020 sales data from January to October 6 In Summary • The City's residential assessed values show an overall increase of 4.50% • Multi- Family assessed values increased by 0.99% • Commercial properties were relatively flat with an overall increase in assessed values of 0.50% • The total assessment change is projected at 2.69% • Sales ratios remain in line with State standards �i rti c cc w bW 4A W Projected Real Estate Fiscal Impact 94.0 S9 S9 .0 $91.0 $90.o $89.0 S88.0 s8;.0 S86.0 $90.7 FY 2020 FY 2021* FY 2022* Actual Adopted Budget Projected *93% of Total Revenue Potential Appealing an Assessment ✓ Appeal to the Office of Real Estate Valuation by February 1st ✓ If a property owner does not agree with our appeal decision, they can file an appeal with the Board of Equalization. ✓ If a property owner does not agree with the Board of Equalization's decision, they can then file suit in Circuit Court. Real Estate Appeals History 250 220 200 ,84 ,74 ,e8 156 150 — 17 „e 100 99 - -- 79 50 26 27 29 70 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Appeals to Real Estate Valuation I Appeals to Board of Equalization fl Tax Relief Programs Property Owner's Status: • Elderly Tax Freeze • Disability Tax Relief Program • Veterans Tax Relief Program Real Estate Status: • Rehabilitated Tax Abatement • Land Use Program • Solar Energy Abatement • Energy Efficient — Reduced Tax Rate All programs require an application 10 Questions &Comments 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 susan.lower(a-)roanokeva.gov KC Bratton Supervising Appraiser Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 kelvin.bratton(a-),roanokeva.gov Steve Staker Deputy Director of Real Estate Valuation Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 steve.staker(a-roanokeva.gov Cookie Hazen Supervising Appraiser Suite 250 Noel C. Taylor Building 215 W. Church Ave. S.W. Roanoke, VA 24011 (540) 853 -2771 cookie.wal I(a) roanokeva.gov 11 APPENDIX • Timeline of Assessment Process • History of Projected Assessments • Tax Relief and Abatement Programs • History of Sales Ratios • History of Assessment Changes 12 Timeline of Assessment Process • January: Notices mailed and hearings begin for citizens to appeal • February: Hearings end, mail decisions • March: Board of Equalization (BOE) begins • March: Begin re- assessment process and appraisers field reviewing property data, sales and building permits • April 5th : Second payment of tax bill due (previous assessment) • June 30th : BOE complete • July 1st : Begin new fiscal year • October 5th : First payment of tax bill due (new January assessed value) • October to December: Appraiser team finalizing re- assessment • December: Post and certify the new assessment values • December to January 1st : Proofing final values 13 Tax Relief and Abatement Programs (by Assessed Values Rehabs $102,628,300 Leaseholds $24,851,902 Veterans $24,205,600 Elderly Tax Freeze $8,325,614 Energy Efficient $0 Disabled Tax Freeze $5,019,744 Agricultural Land Use $3,580,600 Solar $309,818 $124,681,900 $2410891738 $2714021700 $9,476,417 $157,000 $5,557,796 $3,577,700 $243,485 104 102 100 98 96 94 92.41 92 90 88 86 2009 6116% PAIR, History of Sales Ratio 97.22 2011 Source: Virginia Department of Taxation 97.55 2012 96.63 2013 95.9 2014 94.9 2015 93.3 2016 93 2017 96 2018 In History of Roanoke's Assessment Changes 2021 2022 2.08 0.61 2020 2021 3.59 1.04 4.63 2019 2020 2.70 0.55 3.25 2018 2019 2.29 0.64 2.93 2017 2018 1.58 0.60 2.18 2016 2017 -0.12 0.67 0.55 2015 2016 -0.29 0.69 0.40 2014 2015 -0.57 0.36 -0.21 2013 2014 -1.21 0.42 -0.79 2012 2013 -1.64 0.41 -1.23 2011 2012 -0.23 0.40 0.17 2010 2011 0.11 1.18 1.29 2009 2010 0.68 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 *Does not include appeal decisions IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41965 - 010421. A RESOLUTION authorizing the acceptance of Coronavirus Aid, Relief, and Economic Security Act (CARES) funding in the amount of $199,646.00 by the City of Roanoke from the United States Department of Health and Human Services as part of the CARES Act Provider Relief Fund, which provides reimbursement of fees to eligible providers who bill for Medicare fee -for- service in connection with the COVID -19 Coronavirus Pandemic, and authorizing the acceptance, execution, and filing of appropriate documents to obtain such funds. BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. The City of Roanoke hereby accepts the CARES funding in the amount of $199,646.00 from the United States Department of Health and Human Services, with no local match required from the City, as part of the CARES Act Provider Relief Fund which provides reimbursement of fees to eligible providers who bill for Medicare fee - for - service in connection with the COVID -19 Coronavirus Pandemic, as more particularly described in the City Council Agenda Report dated January 4, 2021. 2. The City Manager is hereby authorized to accept, execute, and file on behalf of the City of Roanoke any and all documents required to obtain such funding. All such documents are to be approved as to form by the City Attorney. 3. The City Manager is further directed to furnish such additional information as maybe required in connection with the acceptance of the foregoing funding. ATTEST: City Clerk. R- accept FY20 CARES funding (7.6.20) IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41966- 010421. AN ORDINANCE to appropriate funding from the United States Treasury for the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) — Provider Relief Fund, amending and reordaining certain sections of the 2020 -2021 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 2020 -2021 Grant Fund Appropriations be, and the same are hereby, amended and reordained to read and provide as follows: Appropriations Coronavirus Expenses Revenues CARES Act FY21 — EMS Provider Relief 35- 250 - 5239 -3081 $ 199,646 35 -250- 5239 -5239 199,646 Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. ATTEST: City Clerk. `~ CITY COUNCIL AGENDA REPORT .q To: Honorable Mayor and Members of City Council Meeting: January 4, 2021 Subject: FY20 Coronavirus Aid, Relief, and Economic Security Act - Provider Relief Fund Background: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a Provider Relief Fund (PRF) for allocations to eligible providers who bill for Medicare fee - for - service. The City of Roanoke received an allocation of $199,646 in PRF funds. These funds were awarded as a revenue supplement for EMS calls. The funds will be used to cover the increased cost associated with EMS delivery to include staffing, medical supplies, and equipment. Recommended Action: Accept the CARES Act - Provider Relief Fund allocation described above, and authorize the City to Manager to execute the allocated funding, and all related documents to be approved as to form by the City Attorney. Adopt the accompanying budget ordinance to establish a revenue estimate in the amount of $199,646, and to appropriate funding in the same amount into an account to be established by the Director of Finance in the Grant Fund. - - - - -- - -------- - - - - -- Robert S. Cowell, Jr. City Manager Distribution: Honorable Sherman A. Holland, Commissioner of the Revenue Honorable Evelyn W. Powers, Treasurer Sherman M. Stovall, Deputy City Manager W. Brent Robertson, Assistant City Manager for Community Development Amelia C. Merchant, Director of Finance 1 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 4th day of January, 2021. No. 41967- 010421. A RESOLUTION authorizing the City Manager to accept, on behalf of the City of Roanoke, "pass- through" funding from the Commonwealth of Virginia, Department of Emergency Management to support Roanoke Fire -EMS in its service as the region's Level III Hazardous Materials Response Team. BE IT RESOLVED by the Council of the City of Roanoke that the City Manager is hereby authorized, on behalf of the City, to accept, execute, and file any and all documents required to obtain the $15,000.00 in "pass- through" funding from the Commonwealth of Virginia, Department of Emergency Management, to support Roanoke Fire -EMS in its service as the region's Level III Hazardous Materials Response Team, as is more particularly set forth in the City Council Agenda Report dated January 4, 2021. ATTEST: j-, City Clerk. IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41968- 010421. AN ORDINANCE appropriating funding from the United States Department of Transportation through the Commonwealth of Virginia Department of Emergency Management (VDEM) for hazardous materials emergency responses and training and development, amending and reordaining certain sections of the 2019 -2020 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 2019 -2020 Grant Fund Appropriations be, and the same are hereby, amended and reordained to read and provide as follows: Appropriations Expendable Equipment ( <$5,000) Training and Development Revenues Haz -Mat Response Grant FY21 35- 520 - 3247 -2035 $ 10,000 35- 520 - 3247 -2044 5,000 35- 520 - 3247 -3247 15,000 Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. ATTEST: City Clerk. CITY COUNCIL AGENDA REPORT To: Honorable Mayor and Members of City Council Meeting: January 4, 2021 Subject: Virginia Department of Emergency Management Hazardous Materials Funds Acceptance for Roanoke Fire -EMS Department Background: Roanoke Fire -EMS serves as the Regional Level III Hazardous Materials Response Team. The Roanoke Fire -EMS Department receives funds from the Virginia Department of Emergency Management (VDEM) to assist the Hazardous Materials Response Team with the purchase of equipment and training. This funding is called "Pass -Thru Funds." Considerations: City Council approval is needed to formally accept $15,000 for the Hazardous Materials Response Team. Recommended Action: Adopt the accompanying resolution accepting the funds from VDEM as described above and authorize the City Manager to execute any required agreements or documents, such to be approved as to form by the City Attorney. Adopt the accompanying budget ordinance to establish a revenue estimate in the Grant Fund for State grant funds of $15,000 and appropriate funds in the same amount in an account to be established by the Director of Finance. (-: - - - - -- - --------------- Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers Sherman M. Stovall, Deputy City Manager Amelia Merchant, Director of Finance IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41969- 010421. AN ORDINANCE authorizing the City Manager to execute Amendment No. 2 to the Contract for Purchase and Sale of Real Property dated January 22, 2020 (the "Contract ") between the City of Roanoke, Virginia (the "City "), and Roanoke Higher Education Authority ( "RHEA "); authorizing the City Manager to execute all documents necessary to perform, effectuate, administer, and enforce the proposed Amendment No. 2 and Contract; and dispensing with the second reading of this Ordinance by title. WHEREAS, the Council of the City of Roanoke adopted Ordinance No. 41657- 012120, adopted on January 21, 2020, in which Council approved the terms of the Contract between the City and RHEA; WHEREAS, the Council of the City of Roanoke adopted Ordinance No. 41856- 090820 approving Amendment No. 1 to the Contract to extend the Approval Period to December 22, 2020, to complete the Parties due diligence review of the Property, and extend the Closing Date to January 29, 2021; and 2021. WHEREAS, RHEA has requested an extension of time for the Closing Date to March 22, THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke as follows: 1. City Council hereby approves the terms of Amendment No. 2 to the Contract as set forth in the City Council Agenda Report dated January 4, 2021, which Amendment No. 2 amends the Contract approved by City Council by Ordinance No. 41657- 012120, adopted on January 21, 2020. 2. The City Manager is hereby authorized on behalf of the City to execute Amendment No. 2 to the Contract, to amend certain terms of the Contract to extend the Closing Date to March 22, 2021, as set forth in the aforementioned City Council Agenda Report. Amendment No. 2 to the Agreement is to be substantially similar to the Amendment No. 2 attached to the Agenda Report. 3. The City Manager is further authorized on behalf of the City to negotiate and execute such further documents and take such further actions related to this matter and as may be necessary to implement, administer, and enforce the conditions and obligations pursuant to the Contract and Amendment No. 2. 4. The form of the documents referred to above and in the Agenda Report are to be approved by the City Attorney. 5. Pursuant to the provisions of Section 12 of the City Charter, the second reading of this Ordinance by title is hereby dispensed with. ATTEST: Ll"&�" '-)-. YX4,117 City Clerk. 2 CITY COUNCIL AGENDA . . O . To: Honorable Mayor and Members of City Council Meeting: January 4, 2021 Subject: Request Amendment No. 2 For Sale of a Portion of City -Owned Property Located at 23 Centre Avenue, N.W. Background: The Roanoke Higher Education Authority (Buyer) had requested that the City of Roanoke convey an approximately 0.2684 acres, more or less of a property (Property) located at 23 Centre Avenue, N.W., (Official Tax Map No. 2013016) to the Buyer for the development of a landscaped pedestrian plaza /courtyard and related improvements on the Property for use by the Buyer (Project). Park Roanoke currently uses the Property as a paid short -term public parking lot. The City and RHEA entered into the Contract for Purchase and Sale of Real Property dated January 22, 2020 (the "Contract ") under which Contract, the City agrees to sell, and RHEA agrees to purchase, the Property, all as in accordance with the terms and conditions of the Contract. The City and RHEA entered into Amendment No. 1 dated September 14, 2020, to extend the Approval Period and Closing Date. Due to additional time to proceed to Closing required by RHEA, the parties desire to extend the Closing Date to March 22, 2021. Recommended Action: Adopt the attached ordinance authorizing the City Manager to execute an Amendment No. 2 to the Agreement between the City of Roanoke and the Roanoke Higher Education Authority (Buyer), substantially similar to the Amendment No. 2 attached to this Report, with an extended closing period to March 22, 2021, and make such other amendments to the Agreement that are set forth in the proposed Amendment No. 2. All documents are subject to approval as to form by the City Attorney. -- - - - - -- T -- - - - - -- Robert S. Cowell, Jr. City Manager Distribution: Council Appointed Officers W. Brent Robertson, Assistant City Manager for Community Development Robert Ledger, Director, Economic Development Cassandra L. Turner, Economic Development Specialist AMENDMENT NO. 2 TO CONTRACT FOR THE PURCHASE AND SALE OF REAL PROPERTY DATED JANUARY 22, 2020 BETWEEN CITY OF ROANOKE, VIRGINIA AND ROANOKE HIGHER EDUCATION AUTHORITY This Amendment No. 2 to the Contract for the Purchase and Sale of Real Property dated January 22, 2020, between the City of Roanoke Virginia, a Virginia municipal corporation (the "City "), and Roanoke Higher Education Authority, a political subdivision of the Commonwealth of Virginia ( "RHEA ") ( "Amendment No. 1 ") is dated this day of January, 2021. RECITALS A. The City and RHEA entered into the Contract For Purchase and Sale of Real Property dated January 22, 2020 (the "Contract ") under which Contract, the City agrees to sell, and RHEA agrees to purchase, the Property, all as in accordance with the terms and conditions of the Contract. B. The City and RHEA entered into Amendment No. 1 dated September 14, 2020, to extend the Approval Period and Closing Date. C. Due to additional time to proceed to Closing required by RHEA, the parties desire to extend the Closing Date to March 22, 2021. Based on the foregoing, for good and valuable consideration and the representations set forth in the Recitals which are a material part of this Amendment No. 2 and are incorporated herein, the parties agree as follows: 1. Section I LC of the Contract is amended by deleting the first sentence in its entirety and inserting the following sentence in its place: Buyer and Seller shall consummate and complete the closing of this transaction on or before March 22, 2021, with the specific Closing date being designated by Buyer in writing to Seller at least ten (10) business days in advance thereof (the "Closing Date "). 2. Except as amended herein, the Contract remains in full force and effect in accordance with its terms. The parties acknowledge and agree that the Contract, as amended by 1 Amendment No. 1 and this Amendment No. 2, constitutes the entire agreement between the parties with respect to the purchase and sale of the Property. 3. Capitalized terms not defined in this Amendment No. 2 shall have the meaning ascribed to such terms as set forth in the Contract. Dated as of the day and date first above written. SIGNATURES APPEAR ON FOLLOWING PAGES 2 IN WITNESS WHEREOF, the parties have executed this Amendment No. 2 by their authorized representatives as of the date of this Amendment No. 2. WITNESS: Print name and title COMMONWEALTH OF VIRGINIA CITY OF ROANOKE CITY OF ROANOKE, VIRGINIA Robert S. Cowell, Jr. City Manager The foregoing Amendment No. 1 was acknowledged before me this day of January, 2021, by Robert S. Cowell, Jr., the duly authorized City Manager of the City of Roanoke, Virginia, a Virginia Municipal Corporation, on behalf of the City of Roanoke, Virginia. My Commission expires: Approved as to form: Notary Public Approved as to execution: SEAL 3 WITNESS /ATTEST: ROANOKE HIGHER EDUCATION AUTHORITY By: Name: Title: COMMONWEALTH OF VIRGINIA CITY OF ROANOKE, to -wit: The foregoing instrument was acknowledged before me this day of January, 2021, by , the of Roanoke Higher Education Authority, a political subdivision of the Commonwealth of Virginia, for and on behalf of such entity. My commission expires: Notary Public SEAL 4 Roanoke, Virginia Strategic Plan — Star City Strong 2021 -2022 DRAFT January 4, 2021 ROANOKE INSERT GROUP PHOTO OF NEW COUNCIL Roanoke City Council Mayor Sherman Lea, Vice -Mayor Trish White -Boyd, Joe Cobb, Bill Bestpitch, Robert Jeffrey, Stephanie Moon - Reynolds, Vivian Sanchez -Jones Seven -time All- America City Winner! 1952 11979 11982 11988 11996 12012 12017 1 Mayor Sherman P. Lea, Sr. City Manager Bob Cowell, Jr. As Mayor of the first city inducted into the All-America City Hall of Fame and a seven time All-America City it is my pleasure to serve alongside a Council and City Administration that recognizes the importance of thinking strategically and acting on priorities. This plan captures the Council's strategic priorities and defines the outcomes we seek to achieve on behalf of the citizens. The Strategic Plan, our City's comprehensive plan, related specific purpose or place -based plans, and our annual budget represent what it is we as a City do and why we do it. It is through these efforts we work to ensure we continue to have a City offering the best opportunity for the most people — in short, that it remains a great day in Roanoke! I encourage you to read this document to better understand our Vision for the community, how we plan on getting there, and how you can measure our progress. It is my honor to serve the Mayor and Council and on their behalf, the community, to lead an organization that works every day to deliver the services demanded and to offer opportunity to each and every resident and business of Roanoke. This plan provides the Vision established by Council and the steps necessary to realize that Vision. This plan also provides how we as an organization will conduct our business and sets the stage for the annual budget and capital improvements program. With the assistance of the Mayor and Council, we continue to make progress as a City - routinely recognized as one of the best places in America to live, operate a business, secure an education, or visit. I encourage you to review what follows and join us in keeping Roanoke a wonderful place for all that call it home. 4 TABLE OF CONTENTS Purposeof Strategic Planning .................................................................................... ..............................5 Strategic Planning Process .......................................................................................... ..............................5 CommunityProfile ....................................................................................................... ..............................7 Vision and Strategic Areas of Importance ................................................................ ..............................8 Education....................................................................................................................... .............................10 Overview Path to Results Targeted Actions Performance Measures CommunitySafety ........................................................................................................ .............................12 Overview Path to Results Targeted Actions Performance Measures HumanServices ............................................................................................................ .............................14 Overview Path to Results Targeted Actions Performance Measures Infrastructure................................................................................................................ .............................16 Overview Path to Results Targeted Actions Performance Measures GoodGovernment ........................................................................................................ .............................18 Overview Path to Results 3 Targeted Actions Performance Measures Livability........................................................................................................................ .............................20 Overview Path to Results Targeted Actions Performance Measures Economy........................................................................................................................ .............................22 Overview Path to Results Targeted Actions Performance Measures OrganizationalResponse ............................................................................................. .............................24 r st mmmml op of a* rf 4 Purpose of Strategic Planning A strategic plan should serve as the physical product of strategic thinking — that is, delineation of a community vision and the strategies and actions that will be necessary to progress toward that vision. The Council, City Government and community should ideally evaluate every opportunity or challenge that presents itself against this vision and its associated strategies to best determine how to allocate their time, money, and other resources —all of which are limited. The Strategic Plan is a companion to the City's Comprehensive Plan which represents how the City will physically change over time. Together, the Strategic Plan and the Comprehensive Plan provide a firm foundation upon which to build more detailed neighborhood and special purpose plans, the annual budget, the multi -year capital improvements program, regulations and ordnances, and other associated public policy and implementation documents and initiatives. ...ideally evaluate every opportunity or challenge that presents itself against this vision and its associated strategies to best determine how to allocate their time, money and other Ideally one should be able to review this document and gain a firm resources... understanding of where the City intends to go, and generally how it proposes to get there, as well as gain insight into how progress along the way is intended to be measured. Strategic Planning Process This document represents an update to the previously adopted Strategic Plan (2019) — prompted by the need to address recovery from COVID -19 and the intentional advancement of equity and well -being within the communitiy. The City has engaged in strategic thinking for many years. Much of what is included in this plan has for a number of years, been included in the annual budget and other policy documents. The process used in the development of this plan was an enhancement to that used in crafting the previous versions. This update was built upon the framework of: • Listen • Learn • Discuss • Present • Act The first step in this process was listening to the community regarding the City's seven priorities, the strategies used to progress on those priorities and the outcomes that are sought. This was achieved through virtual conversations involving focus groups led by Council with attendees around each of the seven priorities. These focus groups complemented the earlier COVID -19 recovery virtual conversations led by Council. The virtual conversations were accompanied by key stakeholder interviews. Interviews were conducted with key stakeholders in each of the priority areas regarding the priorities and the strategies currently used to advance on the priorities. Finally, these were accompanied by a dedicated 5 phone line and email, enabling any Roanoke resident or business owner to leave a brief message about the priorities and strategies. The second step was learning from the community and the staff about each of the seven priorities, the strategies used to progress on those priorities and the outcomes that have been achieved. This occurred during the most recent Council Strategic Plan retreat. This step included presentation of information, studies, briefings, etc. by senior City staff and other content experts. The third step in this process was the Council discussing what they heard and learned regarding each of the seven priorities, the strategies used to progress on the priorities and the outcomes that have been achieved and /or are sought. This was done at the most recent Council Strategic Plan retreat. The fourth step proposed in this process was presenting the draft strategic plan and items that warrant further development. For example, it was determined through the first three steps, that a change in strategy related to Youth Sports was warranted and thus a working group was established that is addressing this initiative directly, working with various parties necessary to further the development of a revised strategy. As the work on these types of revisions progresses they will be incorporated into further discussions with Council and where appropriate into the development of annual budgets. The final step proposed in this process is acting upon any revisions in priorities and strategies. Some of this action may come about as a result of a working group's efforts along the way, while the majority will come about via formal adoption of a revised Strategic Plan and the proposal and adoption of the FY22 budget. Much of the groundwork for this step was set at the most recent Council Budget Planning Retreat held prior to the kick -off of the annual budget process and will be concluded upon adoption of the FY22 and FY23 budgets. This process has been designed to be responsive to the discussion held by Council in the adoption of the FY21 budget; timely and meaningful - bridging the political call for action and the necessary bureaucratic work of devising legislation and formulating budgets. This intentional process is necessary both to better the chances that quality and sustainable strategies are the result and also in response to the continued economic uncertainty associated with COVID -19. The Council will review the Strategic Plan on an annual basis, making adjustments as appropriate, following a process similar to that used in the creation of previous plans. Additionally, City Management will provide the Council with semi - annual progress reports on the Plan and a performance measure report annually. Community Profile The City of Roanoke is a mid -size independent city with a population of approximately 100,000 located within a region with a population of approximately 350,000. The Roanoke region is located within the south - western portion of the Commonwealth of Virginia with the City of Roanoke as the largest city west of the State Capitol of Richmond. Roanoke serves as the region's education, medical, shopping, and cultural hub anchoring Virginia's Blue Ridge. Built upon success of the growth in the rail industry, Roanoke grew very rapidly in the 19' and early 20th centuries. After a period of economic challenges Roanoke is experiencing a rennaisance built upon the strengths of medical research and care, technology, and advanced manufacturing. Recent economic growth, a vibrant downtown, unparalleled outdoor amenities and numeorus arts and cultural offerings have led Roanoke to national recognition. Population Estimate (2019) — 99,143 Median Age — 38 with 7% under 5 years of age and 16% age 65 and older Race — 62% of the current population is White alone, 29% Black or African descent alone, and 6.3% Hispanic or Latino Households and Income —There are 41,740 households in Roanoke with 47,011 housing units with a median value of $135,100. 52% of the homes in Roanoke are owner - occupied. 2019 Median income is $44,230with 21% of the population living in poverty. 86% of the adults in Roanoke are high school graduates or higher Industry & Business - there are 3,132 business establsihments in Roanoke employing 68,842 with a total annual payroll of $3 billion. Health care and social assistance is the lagest employment sector in Roanoke accounting for more than 12,000 jobs. There are currently more than 100,000 students pursuing degrees at 25 colleges and universities located wihtin the Roanoke region Roanoke Community Vision The City of Roanoke is a safe, caring and economically vibrant community in which all have equitable opportunities to live, learn, work, play and prosper A vibrant urban center with strong neighborhoods set amongst the spectacular beauty of Virginia's Blue Ridge Strategic Areas of Importance This vision is pursued by focusing on seven areas of strategic importance Education Community Safety Human Services Infrastructure Good Government Livability Economy The City Council expects that as a City we will act on each of the strategic priorities grounded in the following: Equity — All, regardless of location, race, sexual orientation, gender identity, or ability will have access to equal opportunity for successful outcomes Community Engagement & Inclusion — Intentional involvement of citizenry in the direction and actions of their government Well -Being — Physical and social environment that promotes healthy outcomes for all residents regardless of their location Creativity — innovation in programming and addressing opportunities and confronting challenges 'C 1 J Education Foster an environment for lifelong learning which encompasses cradle to career and beyond through shared services and community involvement Path to Results We will join our community in ensuring access to educational opportunities through the course of each individual's life. We seek to help develop successful students and productive and educated adults, prepared to succeed to full extent of their abilities. Early Learning and School Readiness — we will invest time, money and resources in preparing children to read proficiently by the end of the third grade. Preparation for Post High - School Success — we will work with the community to identify and support programs and initiatives that equip students to succeed beyond high school, whether their path leads them to college, a trade or vocation, or community service. Support of K -12 Educational Program — we will invest time, money, and resources in ensuring Roanoke City Public Schools are able to provide the facilities, curriculum, and teachers, necessary to deliver quality educational programs. Adult Learning —we will invest time, money, and resources in opportunities for adults to continue to learn to enhance skills, broaden their general knowledge or further their creativity. Targeted Actions Continue support of the Virtual Learning Centers and the restoration of RCPS operations Libraries reopening and restoration of services Enhanced youth career exploration and skills development 10 Indicators We will determine success by: Improving PALS Scores; Securing and Maintaining Accreditation for all public schools; Improving Graduation Rates; Improving Student Learning Outcomes; Increased Adult Learning Opportunities; Workforce Participation Rate, Percentage of residents with post- High - School Education /Certification. f -,A EA1,R -EA1. 11 Community Safety Foster a community where citizens feel safe and they and their property are safe in their homes, businesses and neighborhoods Path to Results We will ensure that our community comes together to plan for and to the extent practical, prevent harm from man -made and natural risks. We will take steps to ensure our homes, businesses, public places, streets, and neighborhoods are safe and desirable places to live, work and play. Together we will ensure that when a response is necessary it is done in as efficient, fair, and appropriate manner as practical. Prevention — We will invest the time, money and resources necessary to ensure that to the extent practical harm to property or persons is prevented through the use of programs, education, and code and law enforcement and addressing underlying causes including poverty, trauma, and inequity. Responsiveness — We will maintain the equipment and personnel necessary to meet or exceed established national standards related to response time for public safety and that our resources and services will be delivered in an equitable and just manner. Communication & Engagement — We will invest the time, money and resources necessary to ensure the ability to reliably communicate to and engage with the general public, between staff locally and throughout the region during routine business operations and times of emergency response. 12 Quality of Standards and Laws — We will ensure that our codes, practices and policies are consistent with recognized best practices and are legally sound Targeted Actions Public Safety Reforms — MARCUS Alert, Use of Force Policies, etc. Continued response to gun violence Enhanced response to substance use disorder Indicators We will determine success by: Accreditation by recognized national or regional organizations will be secured and maintained by departments /divisions engaged in delivery of public safety services; ISO ratings of the highest level will be secured and maintained by the departments /divisions engaged in delivery of public safety services; Public Safety services will consistently be evaluated as "good" or better by customer surveys conducted by the City on a periodic basis, Crime statistics will be actively monitored and reported and demonstrable improvements in all areas over time will be secured. Mgr 13 Human Services Foster a caring community that uses an equitable, regional and collaborative approach to encourage preventative measures, intervention services, and self - sufficiency while providing a social safety net for citizens Path to Results We will unite public and private institutions as a caring and compassionate community assisting individuals and families to achieve self- sufficiency and live healthy lives. We maintain a commitment of focusing on prevention and the provision of information and where necessary and when appropriate in the delivery of compassionate services grounded in fairness, equity, and accountability Prevention — We will invest the time, money and resources necessary to prevent poverty, promote self- sufficiency, promote positive youth development, and promote healthy and safe neighborhoods. Intervention — When appropriate and necessary we will intervene in situations through early identification of need, using a holistic approach that involves the family, support the deinstitutionalization of individuals — integrating citizens back into society. Caring Community — Through direct involvement with those impacted we will foster positive relationships and empower them to succeed to the best of their abilities and circumstances. 14 Accessibility to Services — We will ensure those who live in our community are aware of the resources available to them and will ensure our services are delivered in an efficient and effective manner. Targeted Actions Support COVID recovery for individuals, households, and non - profit social service providers Enhanced focus on addressing social determinants associated with disparities in health outcomes Expanded mental health services Indicators We will determine success by: Demonstrated compliance with all applicable laws and regulations that govern the delivery of health and human services; Human services will consistently be evaluated as "good" or better by customer surveys conducted by the City on a periodic basis, Improved demographic and socio- economic trends such as rates of poverty, number of homeless, service recipients, health outcomes, deaths due to overdose, etc. ., . - Habitat for Humanity in t11a ROInoj 15 Infrastructure Maintain and build quality infrastructure that supports healthy residential neighborhoods, successful commercial areas, and accessible public facilities and amenities Path to Results We will work to ensure the facilities, equipment, materials, and services that are necessary to meet the communication, mobility, life- safety, recreation, and basic needs of our individuals, families, businesses, and visitors are provided and maintained in a manner that contributes positively to safety, livability, and economic advancement Environment — We will work locally and regionally to ensure the quality and sustainability of our natural resources and features with a particular emphasis on clean air and clean water. Buildings, Parks and Greenways — We will work locally and regionally to deliver buildings, parks and greenways that are functional, accessible, and sustainable, and that can be operated in an efficient manner. Transportation — We will ensure our transportation network enables a full -range of mobility options that are delivered, maintained and operated in an efficient manner. Equipment and Vehicles — We will ensure that the equipment and vehicles we use to deliver our services are safe and well- maintained and procured and operated in an efficient manner. III Technology — We will ensure that the technology we use to deliver services and to communicate to and engage with our community is functional and reliable, and is procured and operated in an efficient manner supporting businesses processes and community needs. Targeted Actions Complete key capital projects — Transit Transfer Station, Roanoke River Greenway, etc. Design and community engagement in preparation for Wasena /Main Street Bridge replacement Increased investment in street and sidewalk maintenance Indicators We will determine success by: Demonstrated compliance with all applicable laws and regulations that govern infrastructure assets and natural features; Infrastructure - related items /services will consistently be evaluated as "good" or better by customer surveys conducted by the City on a periodic basis, Accreditation by recognized national or regional organizations will be secured and maintained by departments /divisions engaged in delivery of infrastructure services, In Virginia, EVERY CORNER IS A CROSSWALK Jr I whether it's painted or not. _ ..MA 416 -.001A --' Drivers: STOP at the corner. Pedestrians: CROSS ��r at hhs r�rner 17 Good Government Provide exceptional and competitive government services that are collaborative, transparent, responsive, and innovative Path to Results We will, on behalf of our citizens, provide top - quality services and programs that are cost - competitive and responsive, efficient, collaborative, and transparent. We will build a culture around honesty, respect, responsibility, teamwork, diversity and inclusion that address the challenges and opportunities of the 21St Century Effective Leadership — Through collaborative and visionary leadership we will set clear direction and high expectations for Roanoke based upon Council priorities. We will emphasize strategic vision, responsiveness, results, accountability, and adherence to clear values in the delivery of our services. High- Performing Employees — Our employees understand how their actions contribute to the City's vision and strategies and are committed emotionally and intellectually, and motivated to provide the best service they are able. Our organization provides the clear direction, resources, and opportunities for our employees to excel in what they do. Efficient and Effective Operations — We acknowledge we are stewards of the public's resources and therefore seek to deliver community services in a cost - competitive manner requiring the least amount of time and effort necessary. We will seek partnerships, relentlessly and continuously 18 pursue service improvements and efficiencies, and strive to implement best practices on behalf of our community. Responsible Financial Management — We will ensure sound management of revenues, expenditures, assets, in a strategic, coordinated and deliberate manner aligned with generally accepted and best practices, Council priorities, and the needs of the community. Valued, Engaged & Informed Community — We believe a successful City values an active and engaged citizenry in the conduct of its government. We will ensure community members are informed and offered opportunities for engagement as policies and actions are formulated and services are delivered. Targeted Actions Enhanced Employee Compensation Restoration of public services impacted by COVID -19 Adapt Budgeting for Outcomes to Budgeting for Equitable and Empowering Outcomes Advance efforts of Equity and Empowerment Advisory Board We will determine success by: Demonstrated compliance with all applicable laws, regulations, and policies that govern financial management; Overall City governance will consistently be evaluated as "good" or better by customer surveys conducted by the City on a periodic basis; Recognition by national or regional organizations secured and maintained for application of innovative approaches and best practices; Improved employee satisfaction and retention /advancement, Increased utilization of engagement opportunities by residents and businesses. 19 Livability Enhance Roanoke's exceptional vitality as an attractive, diverse, culturally inclusive, vibrant and active city in which to live, learn, work and play Path to Results We will collaborate with others in our region to ensure Roanoke retains a quality social, built and natural environment making it a vibrant place to live, learn, work, play and visit. We will ensure Roanoke remains a desirable place to invest in, whether as a homeowner, business owner, client, or tourist Attractive Community — Together with the community, we will work to foster pride in home and business ownership working to ensure our neighborhoods, business corridors, and districts remain safe, clean, diverse, and attractive, and encourage continued pride and investment. Accessible and Inclusive Community - We will ensure that public transportation, bicycle facilities, and pedestrian ways are convenient and safe, and provide mobility options and ease of connection between our neighborhoods, with our public spaces and throughout the region. Quality Amenities — We will collaborate with others to provide activities, facilities, and exhibits that encourage active living and foster cultural awareness. We will ensure the protection of unique community assets and natural resources found within our City. Targeted Actions Implementation of Comprehensive Plan 20 Implementation of Parks and Recreation Master Plan Refresh Youth Recreation Sports Advancement on various initiatives — Compassionate City, Human Rights Diversity Index, Age - Friendly Community, Youth Services, etc. Support Recovery of Arts & Culture Organizations and Venues Indicators We will determine success by: City's desirability as a place to live, operate a business, or visit will consistently be evaluated as "good" or better by customer surveys conducted by the City on a periodic basis; Recognition by national or regional organizations, secured and maintained for application of innovative approaches and best practices, Increases in population, number of visitors, home ownership, home value, and participation in events. -J' -\°\11\ 21 Economy Cultivate a thriving business environment and innovative workforce opportunities to ensure the prosperity of our community, recognizing our role in both the regional and global economies Path to Results We will collaborate with others in the region and State to ensure the continued economic vitality of Roanoke and its place as the region's center of economic activity. We will emphasize the development of individual's skills and abilities, development of unique economic assets, the promotion of economic assets that afford us a competitive advantage and the development of business opportunities Workforce Development— Together with others in the community, we will ensure our workforce is prepared to productively contribute to the local economy and better the lives of themselves and their families. We will seek to attract and retain talent, expand employment opportunities, raise awareness of job and business opportunities, and attract higher -wage opportunities to Roanoke. Asset Development — Together with others in the community, we will build upon existing natural, cultural, structural, and leadership strengths creating an economic environment that capitalizes upon our uniqueness and creates opportunity for the generation of wealth — personal, business, and community. Business Development —We will collaborate with others throughout the region to make Roanoke as attractive as possible for investment by individuals and business by ensuring regulatory and 22 business processes are responsive, regional partnerships are fully embraced, strategic use of business incentives, and maintenance of a responsible tax structure. We will continue to ensure Roanoke remains a vibrant and attractive portion of Virginia's Blue Ridge for visitors and guests. Asset Promotion —We will collaborate with others throughout the region to curate and nurture an authentic and representative brand for Roanoke and the region, and will ensure access to trusted and reliable information about the benefits of living, visiting, and doing business in Roanoke. Economic Inclusion — We will remove barriers and pursue opportunities to ensure every individual, family and business in our community have equitable opportunities for economic success. Targeted Actions Support COVID - related economic recovery Enhanced branding and support of Roanoke Innovates initiatives Advance on Target Neighborhood initiatives Advance on Gainsboro: A New Way Forward initiatives Advance on economic inclusion initiatives Enhance regional outdoor assets Indicators We will determine success by: Increases in tax revenue, number of jobs, occupancy rates, number of visitors, and decreases in poverty and unemployment rates. 23 Organizational Response The City Government will respond to each of the priorities, take action and deliver services aligned with the following core values: Integrity and Honesty Diversity and Inclusion Respect for Others Listening and Communication Continuous Improvement Accountability Organizational Framework Pursue long -term high- impact regional change — make the Roanoke region the premier place to locate, stay and visit Build strength from within — enable the success of residents, families, and businesses regardless of their physical location within the City Strategies Prioritize —time, money, and attention Take Strategic Action — everything should progress toward objectives Seek and Enhance Collaborative Partnerships —we cannot and should not do this alone Innovate — new ideas, new approaches, new partners Empower Organization —free up talent, time, money, and resources As an organization, we will do this within a culture where all employees are leaders oriented toward results and positive outcomes, where organization and community assets meet or exceed recognized standards and where the services provided are recognized as "best in class ". As departments, we take action and deliver our services guided by our Departmental Service Plans and secure the necessary resources by budgeting for the intended outcomes. As individuals, we perform in accordance with our personal development and operational goals established annually. 24 ROANOKE 25 �5 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 4th day of January, 2021. No. 41970- 010421. AN ORDINANCE repealing Ordinance No. 41946 - 122120, adopted December 21, 2020; adopting a new Ordinance restating the content with the change of the date which employees were in the employ of the City of Roanoke; deletion of the Deputy City Manager and the Assistant City Manager as persons who were "not" to receive payment; and dispensing with the second reading of this ordinance by title. WHEREAS, it was the intent of the City Manager that the Deputy City Manager and the Assistant City Manager be included in the employees who were to receive a one- time payment in appreciation in the amount of $1,000, in Ordinance No. 41946 - 122120, they were listed as "not" receiving any payment, and WHEREAS, in Ordinance No. 41946 - 122120, the date of employment with the City was listed as October 1, 2020, and the correct date should have been December 14, 2020. THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke that: 1. Ordinance No. 41946- 122120, adopted December 21, 2020, for the reasons stated herein, is hereby REPEALED. 2. All full -time employees who worked for the City as of December 14, 2020, including all department directors, the City's Constitutional officers and their employees, Court Clerks and personnel, as well as Council- appointed officers, shall receive a payment in appreciation of their service during the COVID -19 pandemic in the amount of $1,000 each on the City's January 6, 2021 pay date, such payment to be subject to all applicable tax withholdings. 1 3. All part-time employees who worked for the City as of December 14, 2020, including all employees of the City's Constitutional officers, shall receive a payment in appreciation of their service during the COVID -19 pandemic in the amount of $500 each on the City's January 6, 2021 pay date, such payment to be subject to all applicable tax withholdings. 4. Employees who work under a prorated work agreement will receive a prorated payment. 5. City Council, the City Manager, members of any Boards or Commissions, poll workers, Berglund Center event staff, temporary staffing agency employees, and any separated or furloughed employees at the time this payment is made, shall not receive any payment authorized by this Ordinance. 6. Pursuant to the provisions of Section 12 of the City Charter, the second reading of this ordinance by title is hereby dispensed with. ATTEST: City Clerk. 2 CECELIA F. MCCOV, CHIC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerkCroanokeva.gov January 5, 2021 Betty Jean Wolfe 206 Rutherford Court, N. W. Roanoke, Virginia 24016 Dear Ms. Wolfe: CECELIA T. WEBB, CMC Depute- City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to fill the unexpired term of office of Marcus Huffman as a member of the Board of Zoning Appeals ending December 31, 2021. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which must be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. After the Oath has been administered, please return one copy to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Sections 2.2 -3114 and 2.2 -3115, Code of Virginia (1950), as amended, I am required to furnish members of the Board of Zoning Appeals with a Real Estate Disclosure Form. State Code provisions require that all disclosures must be filed and maintained as a matter of public record for a period of five years in the Office of the Clerk of the governing body. Please complete and return the enclosed form and Oath of Office to the undersigned prior to assuming the duties of your office. Furthermore, Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve the City of Roanoke as a member of the Board of Zoning Appeals. Sincerely, 0,0 "� �� Cecelia F. McCoy, CMC City Clerk Enclosures PC: Tina Carr, Secretary, Board of Zoning Appeals COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the fourth day of January 2021, BETTY JEAN WOLFE was appointed to fill the unexpired term of office of Marcus Huffman as a member of the Board of Zoning Appeals ending December 31, 2021. Given under my hand and the Seal of the City of Roanoke this firth day of January 2021. City Clerk CECELIA F. NICCOV, CN1C City Clerk Laura Carini Assistant City Attorney Roanoke, Virginia Dear Ms. Carini: CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk @roanokeva.gov January 5, 2021 CECELIA T. WEBB, CN1C Deputy City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were appointed to replace Kenneth Cronin as the Citizen member of the City of Roanoke Finance Board for a term of office ending June 30, 2022. Enclosed you will find a certificate of your appointment and an Oath or Affirmation of Office which must be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. After the Oath has been administered, please return one copy to the Office of the City Clerk, Room 456, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Furthermore, pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to serve as the Citizen member of the City of Roanoke Finance Board. Sincerely, Cecelia F. McCoy, CMC City Clerk Enclosures pc: Amelia C. Merchant, Director, of Finance COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the fourth day of January 2021, LAURA CARINI was appointed to replace Kenneth Cronin as the Citizen member of the City of Roanoke Finance Board for a term of office ending June 30, 2022. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. cfk City Clerk CECELIA F. NICCOY, CHIC City Clerk CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerk Ca roanokeva.gov January 5, 2021 Cindy L. McFall 1224 Franklin Road, S. W. Apartment 4 Roanoke, Virginia 24016 Dear Ms. McFall: CECELIA T. WEBB, CMC Deputy City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were reappointed as the City representative to the Local Office on Aging Advisory Board for a one -year term of office, commencing March 1, 2021 and ending February 28, 2022. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. After the Oath has been administered, please return one copy to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to continue serving as the City representative to the Local Office on Aging Advisory Board. Sincerely, J- X61 Cecelia F. McCoy, CMC City Clerk Enclosures PC: Ron Boyd, Chief Executive Officer, Local Office on Aging, P. O. Box 14205, Roanoke, Virginia 24038 COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the fourth day of January 2021, CINDY L. MCFALL was reappointed as the City representative to the Local Office on Aging Advisory Board for a one -year term of office, commencing March 1, 2021 and ending February 28, 2022. 2021. Given under my hand and the Seal of the City of Roanoke this fifth day of January City Clerk CECELIA F. MCCOY City Clerk John R. Clements 3244 Allendale, S. W. Roanoke, Virginia 24014 Dear Mr. Clements: CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 Church Avenue, S. W., Room 456 Roanoke, Virginia 24011 -1536 Telephone: (540) 853 -2541 Fax: (540) 853 -1145 E -mail: clerkCaroanokeva.gov January 5, 2021 CECELIA T. WEBB, CHIC Deputy City Clerk At a regular meeting of the Council of the City of Roanoke which was held on Monday, January 4, 2021, you were reappointed as a City representative of the Roanoke Regional Airport Commission for a four -year term of office, commencing March 10, 2021 and ending March 9, 2025. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2 -3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." On behalf of the Mayor and Members of City Council, I would like to express appreciation for your willingness to continue serving the City of Roanoke as a City representative of the Roanoke Regional Airport Commission. Sincerely, „-. V'110�7 Cecelia F. McCoy, CMC City Clerk Enclosures c: Cathy Bowman, Secretary, Roanoke Regional Airport Commission COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, City Clerk, and as such City Clerk of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council which was held on the fourth day of January 2021, JOHN R. CLEMENTS was reappointed as a City representative of the Roanoke Regional Airport Commission for a four -year term of office, commencing March 10, 2021 and ending March 9, 2025. Given under my hand and the Seal of the City of Roanoke this fifth day of January 2021. 0,".,,4.VX,e,d67 City Clerk