OFFICIAL MINUTES OF THE FINANCE COMMITTEE HELD ON TUESDAY, JANUARY 14, 2003 AT 7:00 PM AT CITY HALL, ONE PARK CENTER COURT, MANASSAS PARK, VIRGINIA
PRESENT: William J. Treuting, Jr., Mayor
Kevin P. Brendel, Vice Mayor
William R. Wren
Vonna L. Privett
I. Allen Correll
Michael Bunner
Noreen C. Slater
ABSENT: None
ALSO PRESENT: Lana A. Conner, City Clerk
David W. Reynal, City Manager
Eric Edmonson, Director of Fiscal Services
DISCUSSION ITEMS/BRIEFINGS/REPORTS
A. FY03 Amended Budget:
Real Property: Calendar year billing: $9,211,922 plus second half supplemental ($28,566) for a total of $9,680,100. Councilmember Brendel stated when he calculated the numbers based on the notes: it is $9,680,070. Why is there a decrease in second half from $5,045,583 down to $4,605,966) when there are on going projects? There might be $30,000/$40,000 additional funds. Real estate growth last year was about 8.5%. Is the new percentage built into this budget? You have one half of projected growth for first half-year calendar ($10,091,076) based on assessor estimates.
*Utility Taxes: Dollars in total did not change. The Director tried to allocate more closely and not lump all taxes into one category.
*Cell Phone: City has not collected any taxes. Consensus leave in budget but request Treasurer to make it a priority to find out where our taxes are going and get them collected. Governing Body could ask the Treasurer for a monthly report on collection of cell phone taxes.
Councilmember Bunner wanted to know if the Treasurer had transferred the money over to the other bank account in the amount of three million dollars. Last month, the Treasurer had stated it was deposited in the wrong account. Councilmember Brendel stated it had to do with a lower interest rate instead of higher rate. City Manager will get Governing Body an answer. The City Manager will invite the Treasurer and Commissioner of the Revenue to these meetings. More collections have increased the interest by $19,000.
Councilmember Wren asked the City Manager to look into taxes on new vehicles that City of Manassas and Prince William County collects.
*Cable Franchise: They increased their rates effective January 1, 2003 so the city should increase the budget to reflect their increase. Increased to $103,000.
Grant Revenue: This budget reflects all the city grants broken down by amount and project.
ABC profits increased based on actual projections. Schools went up to reflect revenue sharing by $3,000.
Councilmember Slater asked Staff to find out why the budget for Commissioner of Revenue was so much more than the Treasurer. These numbers were from the state based on percentage. Councilmember Brendel stated that HB701 would delete the constitutional requirements for Commissioner of the Revenue and Treasurers. The City or County would pay the cost for such offices. You may see all funding dry up on this one. There are bills introduced that would have dramatic effects on the city. These are HB 1519, which limits property tax revenue growth by not allowing assessments to grow more than 5% increase in total real estate levy. HB 2035 limits property tax revenue growth by providing that real property assessments may not result in more than 5%
increase in total real estate tax levy.
*Personal Property Tax Relief: Why did this number go down $197,817 when personal property taxes jumped so much. The top number reflects what citizens pay and the bottom number is what is coming from the state as reimbursement.
Add both together that should be 100% of assessments minus delinquents. Staff will check this out and give Governing Body a report.
*Cigarette Tax: Councilmember Wren stated the title should be changed to tobacco tax, which would be inclusive of all tobacco products. Councilmember Slater stated she has no problem with raising tax on cigarettes but if you do that you should do something with wine and ABC taxes. Wine tax: city has no say because this is entirely state controlled. Councilmember Privett stated the state was looking at increasing taxes on tobacco. Manassas and Prince William County are both looking at increasing the tax on tobacco products. There is a bill prohibiting jurisdictions from raising taxes at all. Staff will bring back information on what other localities are doing with this tax at next Tuesday night meeting.
*Tobacco tax and meals tax remain the same. City Manager stated the budget did not reflect anything that would require they be raised or lowered. The meals tax was raised to reflect a new restaurant coming into the city. Meals tax was $106,000 for six months.
*Transfer from Emergency Fund: 100% of cost for Grants Coordinator. The City Manager stated it was to come out of emergency fund. Councilmember Bunner stated this was a position that he thought would help the city bring in additional grant revenue and it was to come out of the emergency fund. Coordinator should be on board by March 2003 and budget reflect salary from March to end of fiscal year. City is taking applications at this time. Senior Director should be on board first because the coordinator will work under this Director.
Lane Miles: State doesn’t give city figures on payment for lane mileage is until after approval of budget. City Manager will get a definite figure on amount of reimbursement.
*Transfer from Capital Projects: Legal: Reduce by $8,000: This was legal cost associated with sale of property in Blooms Crossing which is winding down. The City Attorney reviews all deeds, etc. associated with sale of property. All the legal fees across the board are going up. Capital projects fund is basically transfers in and out.
*General Fund Expenditures: Governing Body would like a total cost of savings on premium holiday for VRS life payments for FY03 and FY04. At some point, the city will have to start paying this again so it is not really excess funds.
Schools funds were recalculated. Additional funding from FY02 ($278,069) and school operating budget of $96,362 needed to be appropriated so Governing Body could see the impact. City and schools are comfortable with these numbers. Total is $7,634,812.
The City Attorney gave an opinion that Governing Body cannot give itself a raise. They can raise the salary for future Governing Body members.
*The emergency fund has $1,100,000. Does not include the $37,200, which is sale of property. There needs to be $20,000 transferred out for Grants Coordinator.
*Councilmember Bunner would like to see the city to look into a new phone system that might save the city money. Councilmember Brendel stated he thought the schools were looking at using a part of the MAN network for their between buildings communications.
*Educational Reimbursements: The Mayor would like to see an account established for educational reimbursement and it could be under the control of the City Manager. At present they are taken out of departmental budget. Councilmember Bunner would like funds available for employees that are going to school taking course in their related fields. He would like to make sure our policy is in line with surrounding jurisdictions. The City Manager stated they do not get a lot of request for reimbursements. City Manager stated the funds he has budgeted are not sufficient funds in all accounts to pay for request of all employees seeking reimbursement. This is big employment recruitment for police officers. City Manager will
give Governing Body a breakdown on funds expended for education reimbursement. City Manager will get UOSA Personnel Policy, which deals with educational reimbursement extensively.
Consensus of Governing Body: Place $10,000 in City Manager budget for education. If someone followed the process and was turned down because of lack of funds, they are eligible to be reimbursed under these funds.
Consensus of Governing Body: Have Personnel Committee look at personnel policy on strict guidelines for educational reimbursements for city employees.
This issue will also be addressed in FY04 budget.
*City Management: budget shows $133,169 and it should be $133,069.
5810-5500 Dues & Memberships: $7,000: Grants Coordinator: Automated System search membership. Salaries: 6 months of two salaries. Five months of one salary and 4 months of the other.
*Additional Positions in FY03 Budget:
Director Govt. Services, Grants Coordinator, Account Clerks (one for Treasurer and one for Commissioner of the Revenue), Inspections Code Enforcement Officer, two police officers for a total of $207,687 for FY03 remainder and $373,818 for FY04 including fringe benefits.
Legal Services: Take out $14,000 for prosecuting attorney and put elsewhere in budget. $326,000 is revised estimate. Expenditures have decreased. Councilmember Bunner would like to find a way to better utilize City Attorney time for remainder of the year. Governing Body might want to put out an RFP to see if fees can be lowered. The City Attorney would like to talk with Governing Body about the issue of legal services and get some direction. He only works in response to request from city. Councilmember Brendel stated this is a concern because we are looking at two cents on tax rate for legal fees.
The Mayor stated the Governing Body needs to schedule a Worksession on legal fees and have Governing Body come up with ideas of how the city can help reduce this number.
Councilmember Brendel wanted to know if city had right fee structure for reviewing site plans, etc. City might want to review rate structure.
The developers are putting a lot of wear and tear on Manassas Drive during development. Can the see ask the developers for some reimbursements for the streets.
City Engineer is involved in all site plan reviews, etc. His time should be included in any fee structure.
Councilmember Slater would like more disclosure on all city projects.
Regional Services Budget will remain the same. Councilmember Slater stated they would change in FY03. They will change with FY04. All regional services have taken a cut from state budget cuts. Councilmember Slater stated that VJCCA is not correct. Prince William County is going to bill the City the same percentage as state cuts. The Mayor stated Chairperson Connaughton stated they were going reduce their expenditures based on amount of state reductions. The city will not know this cost for several months. City Manager stated city received e-mail from county stating they did not intend to change the billing to the city for that.
*Does Commissioner of the Revenue and Treasurer get a COLA when their employees get one? The City Manager will get that information. Staff gets supplements in those two offices.
Hispanic Workforce: Supplement: The City added $10,000 in funds for supplements for Hispanic speaking personnel. Job Description will be sent to Personnel Committee for review and recommendation on implementation in FY04.
In the Commissioner of the Revenue office, businesses are expanding and number of requirements to be met. The Mayor is asking if the workload is going up or is it how to do the workload. He believes they need help but city needs to fix the system. Is there technology the city can get to help with the process? Treasurer has additional request for part-time funds. Both departments are requested to justify their new positions next Tuesday night. Will new positions remove need for part-time positions?
*Finance: Linda Hedden has assumed the responsibilities of Cyd Ball who is out on maternity leave. The water & sewer clerk is being cross-trained for this position.
Fire Department: Repairs & maintenance increased $7,100 for repairs to Engine 9. The fire department grants have been detailed out.
Inspections: Salary for new code enforcer and purchase of a computer for his office. There is a state bid list that city could look at for purchase of computers.
Street Maintenance: Capital Outlay: increased for dump struck and storm water pond authorized in FY03 and paid for in FY03.
Buildings & Grounds: increased by $30,000 to reflect renovations to City Hall ($20,000) due to the two additional positions (Senior director and Grants Administrator) and ADA compliance ($10,000) which is a handicap restroom.
Parks and Recreation: Capital Outlay: increased by $10,000 to $20,000 to reflect the cost of ADA compliance (bathroom). Capital Outlay Vehicles: added $20,000 for new pickup truck.
*Part-time Personnel: What do other jurisdictions do as far as benefits for part-time personnel?
Laptops for Governing Body and Staff: Need approximately 10+ laptops. You would need a high-speed duplex scanner. The Director of Fiscal Services stated there are other things you would need also. You need to make it wireless or pay someone to run cabling off of a hub in backroom. There is about $10,000 left in Technology Initiative.
Director of Fiscal Services stated as we are adding load to our network we have Windows NT Service Pack One which is a 1994 version of service network operating system. City needs to bring it up to Windows 2000 server.
The Mayor and Councilmember Correll will get further information on laptops and the systems and address it as part of the FY04 budget.
The City Manager stated at the Finance Committee meeting next month, Governing Body will have alternatives to look at in term of development of Park Center. How far the Governing Body wants to Governing Body from where we are today. Councilmember Slater stated the city has appropriated no funds for this project. We don’t know the cost.
*Economic Development: Dues and memberships: That was $10,000 that was transferred from Planning Commission for the Flory Center. Councilmember Slater stated it was more a donation that dues or membership.
The Governing Body will review the rest of the budget at their next regular meeting.
MOTION: Councilmember Privett moved to adjourn at 10:15 PM.
SECOND: Councilmember Slater
VOTE: Unanimously passed
Approved February 2003
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