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Home My WebLink AboutCouncil Actions 03-04-00 PlnSesMarch 3, 2000 The Honorable David ^. Bowers, Mayor The Honorable C. Nelson Harris, Vice Mayor The Honorable VV. Alvin Hudson The Honorable Carroll E. Swain The Honorable James O. Trout The Honorable William White, Sr. The Honorable Linda F. Wyatt Dear Mayor Bowers and Members of City Council: SUBJECT: Financial Planning Session - March 4, 2000 Attached is an agenda for the Financial Planning Session which will be held on Saturday, March 4, 2000 from 8:30 a.m. to 2:15 p.m. in the Conference Room at the Roanoke Regional Airport. During this meeting we will present information on financial and operating budget issues. We also want to solicit Council's input, collectively and individually, regarding budget priorities. As you will see on the agenda, time is allocated for your individual comments and input at the conclusion of the work session. We look forward to meeting with you. If you have any questions prior to the meeting, please give me a call. Sincerely, City Manager Attachment cc: Mary F. Parker, City Clerk II. III. Roanoke City Council Budget and Financial Planning Session March 4, 2000 Opening Comments A. Mayor and Members of City Council B. City Manager C. Director of Finance Capital Improvement Program (ClP) Update A. Review of Updated ClP B. Additional Funding Needs Projects Which Require Funding in FY 2000-2004 Other Proposed Projects Alternative Funding Sources - Lease Purchase Financial Status Information - Operating Budget A. (8:30 a.m. - 8:45 a.m.) (8:45 a.m. - 10:15 a.m.) 2. 3. 4. Unfunded Projects - FY 2005 and Beyond Future Debt Capacity (t0:15 a.m. - 12:15 p.m.) General Fund Revenue and Expenditure Projections for FY 2000-01 1. Budget Calendar Current Year's Operating Budget Status HUD Budget (CDBG and HOME) Roanoke City Schools' Budget IV. Lunch (12:15 p.m. - 12:45 p.m.) Items Referred to Financial Planning Session / Budget Study (12:45 p.m. -1:30 p.m.) Financial Planning Session Referrals: Review of the annual service charge imposed on certain tax exempt property to determine if the service charge is sufficient to cover the cost of providing City services. Roanoke City Council Budget and Financial Planning Session Page 2 Budpet Study Referrals: Consideration of excluding those employees who retired under the 2-for-1 pension plan currently earning $50,000 or more per year from any future pay increases. C. Recommendations of Mayor's 1999 State of City Address. Report on short-term measures to address expansion needs of the Virginia Room in the Roanoke City Public Library; and on a matter of identifying funds for a future bond issue to renovate the main library facility; a review of the entire library system, cost of the project and a recommendation as to a systematic funding approach. E. Contribution from the City for Camp Virginia Jaycee. Question of placing a cap on the amount of the city contribution to ICMA-RC on behalf of non-temporary City employees. G. Funding for a new SPCA Adoption and Education Center. H. Comprehensive Analysis of the highest and best use of the City Market Building. Report of cost estimate to improve the appearance of the area around the recycling center on Roy L. Webber Expressway. J. Report on issue of implementing a dental program in Roanoke. Ko Review of drainage problems, associated costs based on the most critical needs and proposed source of funding. Recommendation concerning equitable wages and benefits for employees based on the recent study of benefits, pay and classification. VI. Progress report on fleet utilization review :30 p.m. - 1:45 p.m.) VII. Closing Comments (1:45 p.m. - 2:15 p.m.) A. Council's Budget Priorities JAMES D. GRISSO Director of Finance CITY OF ROANOKE DEPARTMENT OF FINANCE 215 Church Avenue, S.W., Room 461 P. O. Box 1220 Roanoke, Virginia 24006-1220 Telephone: (540) 853-2821 Fax: (540) 853-2940 '00 ~1~-7 P4:53 JESSE A. HALL Deputy Director March 7, 2000 Honorable David A. Bowers, Mayor Honorable C. Nelson Harris, Vice Mayor Honorable W. Alvin Hudson, Jr., Council Member Honorable Carroll E. Swain, Council Member Honorable James O. Trout, Council Member Honorable William White, Sr., Council Member Honorable Linda F. Wyatt, Council Member Dear Mayor and Members of Council: Subject: Ratio of Debt Servic6 to General Fund Expenditures At Saturday's Budget and Financial Planning Work Session, Mayor Bowers inquired What the ratio of debt service to general fund expenditures would become should the City issue approximately $31.4 million of general obligation bonds in 2003 and approximately $17.5 million of general obligation bonds in 2005 for the General Fund contribution towards the renovation of Patrick Henry High School. The City's Debt Policy, adopted by Council on September 7, 1999, states that this ratio will remain within 10%. The following chart portrays the anticipated ratio assuming these debt issuances. The assumption is also made that General Fund expenditures continue to grow in upcoming years at the average rate they have grown over the past five years; 5.43%. Anticipated Ratio of Debt Service Year to General Fund Expenditures 2000 5.83% 2001 6.63% 2002 5.95% 2003 5.71% 2004 6.28% 2005 6.20% 2006 6.25% Honorable Mayor and Members of City Council March 7, 2000 Page 2 As the chart portrays, the City should remain well within the 10% limit established in our debt policy, should these general obligation bonds be issued in 2003 and 2005. We again thank Council for the opportunity to meet together Saturday for a very productive Budget and Financial Planning Work Session. Please contact me should you have any additional questions following Saturday's session. Sincerely, Director of Finance JDG/AHA:s c: D. Dju'lene L. Burcham, City Manager /Mary F. Parker, City Clerk '00 1~ 20 P4:32 March 17, 2000 The Honorable David A. Bowers, Mayor The Honorable C. Nelson Harris, Vice Mayor The Honorable W. Alvin Hudson The Honorable Carroll E. Swain The Honorable James O. Trout The Honorable William White, Sr. The Honorable Linda F. Wyatt Subject: Additional Information regarding Financial Planning Session Dear Mayor Bowers and Members of City Council: At the Financial Planning meeting on March 4, 2000, City Council raised questions on the following issues: City Council requested information from the school administration on the improvement plans for the two high schools and the approximate cost. The School administration has completed the renovations of the middle schools and is nearing completion of renovations to the elementary schools. Air conditioning will be added to 7 elementary schools within the next 3 years. Both high schools were built in the years 1960 to 1961 and are in need of facility improvements. Total estimated cost for improvements to both high schools is $75 to $78 million, of which $38 million will be used for Patrick Henry and $40 million will be used for William Fleming. Improvements to Patrick Henry will begin in the summer of 2004 and the project is scheduled to be completed in 2006. Improvements to William Fleming will begin in the summer of 2006 and the project will be completed in 2008. The School Board is setting aside 50% of the debt service costs for these two projects over the next 7 years as part of the operating budget process. $600,000 will be included in the FY 2000-01 school budget for future debt service. To obtain more detailed cost estimates and identify options, the school board plans to hire an architect to complete a facility study for the improvements for the two high schools. The study is expected to be completed during FY 2001-02. City Council requested information regarding the impact of increasing real estate tax rates to the elderly. In order to qualify for an elderly or handicapped real estate tax freeze, the maximum household income limit is $30,000 and net worth limit is · $100,000, excluding the value of the house and land. The City's current limits are $27,000 and $80,000 respectively. Based on current limits, the tax loss for FY 2001 is projected to be $421,900. It is difficult to project the incremental tax loss as the limits are increased because there is no data to help identify the increase in the number of potentially eligible citizens as the limits are raised. Historically, the increase in tax loss has fluctuated $5,000 to $10,000 per year, even in the years that the limits were increased. Based on this historical trend, we would expect similar increases as the limits are incrementally increased. It was reported to you at the Financial Planning session on March 4, 2000, that there will be a significant increase in the tax loss amount related to the tax freeze program for fiscal year 2001. We regret that there was an error in the data obtained from the Commissioner of Revenue's office. Based on further review by that office, it was determined that the increase will be negligible. City Council requested information regarding the impact of a possible trade-off on increasing either the cigarette tax, decal fee, or other taxes to reduce the real estate tax rate another I cent. The current real estate tax rate is $1.21 per one hundred dollars of assessed value. Based on our revenue projection for FY 2001, each one cent of the rate equates to $397,000. We have attached a chart presented at the financial planning session that shows the amount of incremental revenue generated as various taxes are increased. We would be pleased to provide more information related to any of the taxes shown on this chart should Council desire. City Council asked for a list of revenues not shared with the schools. This list represents current year revenues which are dedicated for specific uses: Utility Taxes for Roanoke River Flood Reduction Project ($8O8,O0O); Telephone Surcharges (E911) Taxes ($1,080,000); Service District Taxes for Downtown and VVilliamson Road ($294,041); Cable Television Franchise Taxes for Local Government Access Channel ($170,000); Cigarette Taxes for Bond Issue on Jail/Juvenile Detention Home ($305,000), as well as COPE Team and Convention and Visitor's Bureau ($501,429); Motor Vehicle License Taxes for Bond Issue on Jail/Juvenile Detention Home ($325,000); Transient Lodging Taxes for Convention and Visitors Bureau ($200,00O); Increased Delinquent Real Estate Taxes to pay for Delinquent Tax Sale ($50,000); Telecommunications Right of Way Use Fee Dedicated to Paving ($213,681). We hope this information is responsive to your request. Please let me know if you would like additional information. Attachment CC: ,~Mary F. Parker, City Clerk James D. Grisso, Director of Finance Diane S. Akers, Budget Administrator Sincerely, - Darlene L. Burol~m City Manager Potential Revenue Initiatives current M~imum ~te change ~ R~te ~e impact :::: Uti h:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :.: ~Ofl~~::~::~::~::~::~:~::~:::~::~:: ~:~::::~:~ :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :~:~.~:~.:~:~::~:?~:::: ~ ::: ~:.:.~ ::~:~:::.:::.~:.~:~.?-:~'~:~:~:~::~:::::~:.::':: ~..:.:'.~a. ::::~:20 %~::::~:~:?~:~:~::~::::::::::::::::::::::::::::::::::: :~:::~.~.:. ~:~ ~ ~ ~ :~ :::~: ~ · ~.:~/?~::~$947~000 ::¥: ~::~:.~:::~ · ~:::.~. ~.:~:::~::~ ~:~:~: ':':-~:::: ~:~:.~:~?':: ..: · .-,~' ~ :~?~::-..:.: ~ ~ ProPOSed M~r VehiCle oec~! $20 $~50 $1,00 = Cable::Televls~lon' : :.:~.,: 7'~::::~':~:::~:~:~::. :I~'~:i:~:':i:~ $172.400::" u i,i -. *Based on FY 2001 estimates