City Council

CITY OF FREDERICKSBURG, VIRGINIA HON. MARY KATHERINE GREENLAW, MAYOR HON. WILLIAM C. WITHERS, JR. VICE-MAYOR, WARD TWO CITY COUNCIL HON. KERRY P. DEVINE, AT-LARGE HON. MATTHEW J. KELLY, AT-LARGE HON. BRADFORD C. ELLIS, WARD ONE HON., TIMOTHY P. DUFFY, PH.D., WARD THREE Council Chambers, 715 Princess Anne Street HON., CHARLIE L. FRYE, JR., WARD FOUR Fredericksburg, Virginia 22401 Council Work Session March 30, 2015 Joint City Council and School Board Work Session Review and Discussion of Topics for the Fiscal 2016 Budget The Council of the City of Fredericksburg, Virginia met in work session on Monday, March 30 beginning at 5:37 p.m. following a Special Called Meeting held immediately prior, in City Hall Council Chambers. Council Present. Mayor Mary Katherine Greenlaw, Presiding. Vice-Mayor William C. Withers, Jr. Councilors Kerry P. Devine, Dr. Timothy P. Duffy, Bradford C. Ellis, Charlie L. Frye, Jr. and Matthew J. Kelly. School Board Present. Chairperson Jannan W. Holmes, Malvina Rollins Kay, Barbara Miller-Richards, and Elizabeth R. Rehm. School Board Absent. Rev. Jarvis E. Bailey and Patricia Green. City Staff Present. City Manager Beverly R. Cameron, Assistant City Manager Mark Whitley, City Attorney Kathleen Dooley, Budget Manager Amanda Lickey, and Deputy Clerk of Council Brenda T. Martin. School Staff Present. Division Superintendent Dr. David G. Melton, Deputy Superintendent Marceline Catlett, Chief Financial Officer G. David Baker, Director of Administrative Services Dr. John B. Gordon III, Director of Human Resources Jonathan D. Russ, and Clerk of the Board Deborah B. Wright. Conflict of Interest Act Declaration. Councilors Duffy and Devine declared they are employees of the City Schools but can rule objectively, fairly and in the public interest. Councilor Frye declared his wife is an employee of the City Schools but he can rule fairly, objectively and in the public interest. 1  Presentation of School Enrollment and Facility Assessment Study. Doug Westmoreland of Moseley Architects began the presentation (see attachment) reminding the boards that the original facility study was conducted in 2012. The presentation of the evening would focus on reviewing updated enrollment projections, the original program capacity analysis and the Capital Improvement Planning for a five-year and a ten-year horizon. Mr. Westmoreland introduced Dr. Carl Chafin who reviewed the enrollment projections. Dr. Chafin began by explaining the methodology which was used in the original study to determine enrollment projections. Updated projections were determined by comparing projections in 2012 to actual enrollments through 2014 and the projections through 2024 were based on updated numbers and trends. It was noted that the number of live births has risen in recent years. Dr. Chafin looked at trends and kindergarten growth from 2010-2013. With that growth, the size of elementary classes is expected to grow. Additional factors that could affect future enrollment trends are the implementation of the International Baccalaureate Program (IB) which may increase the number of tuition students and new residential development which could bring additional students. Mr. Westmoreland then reviewed the enrollment projections for the five year planning horizon and the ten year planning horizon. Hugh Mercer Elementary School is expected to exceed its building capacity by FY 2018. The capacity can be accommodated within the building for the five year planning horizon if the spaces currently used for a STEM classroom and an ESL class were made available, and those programs relocated. The school could accommodate the capacity for the ten year planning horizon by using the four existing trailers. District personnel which occupy space at Hugh Mercer could be moved to another location to free some space for instruction. The interim capacity can be increased through use of four existing trailers. For the long term, projections indicate a need for more capacity at another site or re-aligning the grade structure. No further additions are recommended for Hugh Mercer, since the core areas of the building are at capacity. 2  Lafayette Upper Elementary School can handle its capacity throughout the five and ten year planning horizon. The building’s program capacity is greater with a larger pupil teacher ratio for fourth and fifth grades than when originally planned. District functions should be moved off-site to free additional office and resource areas. This building has been designed for a classroom addition, should it be required by future enrollment. Walker-Grant Middle School is projected to accommodate capacity through the five year horizon but to be above capacity by FY 2023-24. The building design has a lack of space for ancillary resource programs currently being offered. Technology Education space and the old Home Economics space can be renovated to create additional instructional areas. This building was designed for a classroom addition, should it be required by future enrollment. James Monroe High School is projected to be significantly over capacity by the ten year planning horizon. The current program capacity of 1,164 will be exceeded in FY 2021. Capacity can be accommodated for the ten year planning horizon with the addition of eight classrooms as planned. Teacher work spaces allow for maximum utilization of classroom spaces up to 90%. Review of Proposed Renovation of Original Walker-Grant School. Mr. Westmoreland outlined proposed renovations to Original Walker-Grant. The renovations would include eight classrooms for Head Start, five classrooms for Early Childhood Special Education, School Board Offices to consolidate all central office personnel and services, and a School Board and Community Meeting and Conference Center. The high school alternative education classes would remain in the 1935 building. Mr. Westmoreland shared an early concept or design layout for the building. In response to a question about expanding the cafeteria, Mr. Westmoreland stated that the cafeteria is not widely used for that building. Councilor Frye asked about plans for usage of the 1935 building. Mr. Westmoreland responded that the building is in the flood plain and it would not be financially feasible to renovate that building as a school. The building could continue to be used for current programs. The Superintendent responded to questions concerning the number of tuition students. Currently there are approximately 45 full tuition students. Dr. Melton noted that Spotsylvania County is planning to implement an IB program at the same time as Fredericksburg so the 3 number of tuition students should not increase due to the implementation of that program as originally thought. Mr. Westmoreland explained a new grade structure that would be possible if a new school for grades 2-3 were built. Hugh Mercer could become a K-1 school, the new elementary would house grades 2-3, Lafayette could house grades 4-5 and Walker-Grant would become a grades 6-8 middle school. James Monroe would continue to house grades 9-12. Councilor Devine commented that as a teacher she would oppose a grade structure in which students change schools every two years due to feeling that would be too many changes for the young students. There was further brief discussion about the potential need for new buildings. Ms. Kay and Councilor Frye noted the unique structure in Fredericksburg with one school serving an entire grade level. Mr. Westmoreland reviewed the recommendations from the 2012 facilities study when the top priority was the construction of an eight classroom addition to Hugh Mercer Elementary School. With that completed, the new priority is the renovation of Original Walker-Grant in order to provided updated pre-K facilities and to consolidate School Board operations in one location. It will be important to continue to monitor enrollment on a yearly basis. Mr. Kelly asked when the School Board and administrators would like to see the renovation of Original Walker-Grant started. The Superintendent stated that each year over a million dollars is requested in the capital budget to begin the renovation, but the funding is removed for various reasons. Mr. Kelly asked about the cost to maintain the building. Dr. Melton stated that a great deal of time is spent maintaining the building and its systems, but school staff has done an exceptional job. Ameresco provides energy management services and estimates a significant energy savings could be seen for the building. A renovation could result in operational savings and space savings. Councilor Ellis stated in his opinion, that it is time to spend the money and start moving forward with the renovation program. The requested $1.2 million will start the process with architectural and engineering costs. The total cost of the renovation is estimated at $12 million. Councilor Duffy noted that critical services are provided currently in the building and it would be helpful to consolidate the school administration services. He also commented that renovation would be a great investment. Councilor Frye concurred and stated it would be better to renovate the building than to allow it to deteriorate. Councilor Kelly stated that it will come down to priorities and stressed the need 4 to look at the holistic approach with the realization that the city is facing heavy financial needs. Councilor Devine agreed that it is time to take a hard look at the project and noted the need to determine as a community what would be best. Mrs. Miller-Richards expressed appreciation to City Council members who took the time to visit and evaluate the Original Walker-Grant building. Ms. Holmes stressed that the renovation is the top priority of the school system. The building is used for many community functions and can continue to be a community asset. Ms. Holmes also noted the amazing work of Head Start and early childhood special education programs which are located in the building. Ms. Kay reminded Council that relocating the Central Office has been delayed many times over the years and she feels it is time to act on the facility. Vice-Mayor Withers asked where the present operations would go during the renovation process. Dr. Melton responded that it would take planning and working with Moseley on that part of the process. There could be some movement of administration services for the interim period. Presentation of City Schools FY 2016 Budget Request. Dr. Melton presented a brief overview of the proposed school operating budget for FY 2016. He stated that the biggest challenge is to remain compliant with the state Standards of Quality in terms of pupil/teacher ratios. The school division is close to maximum class size in many cases. Original requests from school administrators included thirteen more teachers for the coming year but after discussions and some changes, school officials have been able to reduce the request for additional teachers to five which will include three at Lafayette, one for Hugh Mercer, and one for James Monroe. Dr. Melton stated that the increasing enrollment will eventually be affecting the high school and there will be some additional class periods needed as soon as next year. All increases in the proposed budget request are personnel related. These include payroll/benefits, additional instructional staff for regular teaching positions and summer programs, and an increase in health insurance. The total increase in budgeted expenditures is $1,243,923. State funding is expected to increase by $65,464 and plans are to use $100,000 of the fund balance for operations. These items along with a decrease in federal/other funds for operations leaves a request for increased funding from the City in the amount of $1,100,000. Councilor Kelly asked about potential state funding for the school division. Dr. Melton stated that all communications indicate that the state funding outlook is bleak. Mr. Baker explained that Fredericksburg is more fortunate than many localities in terms of state revenue 5 due to the local composite index. Councilor Kelly then asked about the planned use of the fund balance. Mr. Baker responded that the school division has a good fund balance partially due to the need to maintain a fund balance for use in out years for projects that may be underway such as the recent replacement of the outdated telephone system. Mr. Baker stated that he is comfortable with using the $100,000 from the fund balance for the upcoming fiscal year. Vice-Mayor Withers stated that it appears the school budget has increased by 40% over the last few years. Mr. Baker noted that the enrollment growth has impacted the budget increase. The distribution of additional students throughout the grades sometimes requires the addition of another class. Special needs classes have also affected the budget increase. Mr. Baker stated that the additional funding needed would have been much worse had the City not gotten a reduction in the local composite index. It was also noted that the state requires 1½% salary increase for Standards of Quality positions plus the 1% employee contribution to the Virginia Retirement System. Vice-Mayor Withers questioned the proposed salary increases for administrators which he had heard were to average 5½%. Dr. Melton responded by explaining that an average 5½% was not correct. Last year the Board boosted teacher salaries in order to make them more competitive with the surrounding area and plans were to address administrators and support staff in the coming years. This year the Board instructed the Superintendent to look at administrative salaries based on a variety of items such as education, responsibility, and experience. Using an average range of 2½% to 5½%, the average increase for administrators as proposed is 3.9%. Vice-Mayor Withers mentioned a comparison of administrative salaries around the surrounding area. He stated that the feedback he is hearing is that it sets a bad precedent to give administrators a higher salary increase than teachers. Dr. Melton explained that efforts were made to compare administrative salaries in the area but based on differences in job responsibilities it was difficult to make actual comparisons. Dr. Melton noted that all administrators have at least 15 years of educational experience. He added that the average salary increase last year for lower levels on the teacher salary scale was 10.49% and for step 15 and above, the average was 16.73%. Ms. Kay shared comments regarding salaries and past history. She stated that over the years she has seen Fredericksburg administrators receive additional training, then leave for better salaries in other localities. She has seen the impact on student test scores of keeping poor administrators and teachers due to lack of funding. Over the years the system has now 6 grown to have an excellent staff of teachers and administrators and great accomplishments have been made. Funding was split last year and the focus was on investing in the teachers’ salaries. This year the School Board hopes to do the same for its administrative salaries. Ms. Kay commented that she believes students in Fredericksburg are getting an A+ education and that the school system is 100%. Vice-Mayor Withers reiterated that his feedback in the community has been concern about larger raises for administrators. Councilor Ellis stated that he does not care what teachers and administrators in neighboring localities make and he believes that if Fredericksburg’s salaries are better, that is a good thing and a good investment for the community. Ms. Holmes stated that over the last five years teacher salary increases have averaged 4% while support staff increases have averaged 2.52% and administrative salaries have increased an average of 2.0%. Councilor Kelly commented that he wanted to make it clear that many other city departments including police and emergency services are not getting increases, only a bonus. Councilor Devine agreed that it is hard to tell City staff they are not getting a raise. She agreed that there was a commitment to improve teacher salaries last year to make Fredericksburg more competitive within the region. She expressed concern about the impact on morale of giving higher increases to administrators. Councilor Frye asked how much the City is investing in service workers. These staff members are often overlooked. Mr. Baker responded that the schools have no analysis of City staff salaries but school division support staff increases averaged 2.5% over the last five years. At a recent School Board meeting, Rev. Bailey had mentioned that support staff could not be overlooked. The School Board has structured increases over the years. Councilor Frye commented that eventually there may be staff who can’t afford to live in Fredericksburg. He feels that funding should be invested in the staff we have. Ms. Holmes stated that she has received some calls and responds with the following comments: • Fredericksburg has good administrators who are able to manage student growth and maintain the quality of education. They have developed innovative programs such as 7  the new 8-day rotation at Hugh Mercer to effectively handle the number of students there. • Administrators are responsible for establishing the Food Truck to provide meals for students during the summer. • Administrators are grant writers and in this way receive funding for programs such as Title I, special education and STEM. • Administrators are meticulous in attention to detail to ensure compliance with laws and program requirements. • Administrators work evenings and weekends to support students in a variety of programs and ways. • Administrators are committed to student success and providing a safe and supportive education. Councilor Devine agreed that administrators work hard and should get a raise, but felt that equalizing the amount of the raise for teachers and administrators would go a long way in helping the community support the school budget. Ms. Kay stated that the School Board has not wished to micro-manage by providing specific details for the amount of raises but deferred to the administrative staff on details. The School Board wanted to ensure that funding was available for the increases. Ms. Holmes and Ms. Kay noted that administrative salaries were frozen at various points. Councilor Devine commented that administrative salary increases are a relatively small amount of the budget request, but she does not wish to have community negativity on the larger raises, carry over into the schools. She supports the school system. She further stated that Council can adjust funding levels. Councilor Duffy expressed appreciation to the School Board and staff for the work which has been done on the budget and for the excellent information which has been provided. Mayor Greenlaw thanked the School Board for their comments and concerns. She also thanked the Superintendent and City Manager for their efforts to work together and provide a reasonable and feasible budget for Council’s consideration. She stated the Council had a few other budget topics to discuss in this work session, so there would be a brief recess to allow the School Board and staff to leave. This portion of the work session ended at 7:20 p.m. Presentation of the City’s 5-Year Budget Forecast. Assistant City Manager Mark Whitley reviewed a summary of the 5 year budget forecast. See attachment. He 8 reviewed the use of fund balance, salaries and benefits costs, schools and jail costs, base debt service, R-Board Landfill, and revenue notes. Councilor Kelly asked about why the water and sewer debt fund wasn’t included. Mr. Whitley explained that report this is based on the analysis of the General Fund only. Discussion of Partner Agency Funding Requests. Budget Manager Amanda Lickey stated she had one update to discuss from the last work session regarding the Brisben Center which has asked for additional funds for their capital improvements needs. She has discussed with Stafford their plans for funding and the recommendation is to leave Brisben’s current funding flat and provide for their capital needs. They are still obtaining the cost estimates. She stated a few adjustments were made to some of the agencies to make the numbers rounded. Councilor Ellis stated he was at a Fredericksburg Regional Alliance meeting last week and he is pleased with the new leadership in place. He is looking for a discussion and/or recommendation on their request of an increase in funding. Ms. Lickey stated they do receive an additional $11,000 from the Economic Development Authority. Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the work session officially adjourned at 7:50 p.m. ____Brenda T. Martin ____ Brenda T. Martin Deputy Clerk of Council City of Fredericksburg 9