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. JASON N. GRAHAM, WARD ONE HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street HON. CHARLIE L. FRYE, JR., WARD FOUR Fredericksburg, Virginia 22401 Council Work Session March 26, 2019 Fiscal Year 2020 Budget The Council of the City of Fredericksburg, Virginia held a work session on Tuesday, March 26, 2019, beginning at 5:30 p.m. in the City Hall Conference Room. Council Present. Mayor Mary Katherine Greenlaw, Presiding. Councilors Kerry P. Devine, Timothy P. Duffy, Charlie L. Frye, Jr. and Jason N. Graham. Council Absent. Vice-Mayor William C. Withers, out of town and Matthew J. Kelly, out of town. Also Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager Doug Fawcett, City Attorney Kathleen A. Dooley, Economic Development Director Bill Freehling, Business Development Manager Angela Freeman, Budget Manager Deidre Jett and Clerk of Council Tonya B. Lacey. Fiscal Year 2020 Budget. Budget Manager Jett introduced the budget by informing the Council that this was the first year the budget is over $100 million which is a 4.6% increase over FY2019. There are three new positions proposed in the budget (Commonwealth Attorney, Fire and Public Works). She said there was a 2.5% cost of living adjustment, there were funding increases for schools, library, jail, CSA and debt service. The partner agencies stayed level for the most part. Ms. Jett reported that the revenues were increasing by 4.4%. The City Manager was proposing a 4% tax increase 3 cent going toward the General government and 1 cent for Stormwater. Staff also proposed an increase in refuse collection fees, a new data center proposal property tax rate and adjustments in the Planning and Building fees. Ms. Jett listed the 6 main revenue generators as the real estate property tax, sales tax, meals tax, lodging tax, personal property tax, and business license tax. Mr. Whitley explained that the meal tax has been a significant grower of revenues over the past 5 years and it had slowed this year, but 1 year over year it has had increases. The personal property second half has been coming in pretty well. Ms. Jett reviewed the general fund - fund balance and the budget supporting the schools. The school operating budget increases to $46.8 million a $2.2 million or 5% increase. Councilor Duffy disclosed that he was an Assistant Principal at James Monroe High School but he was able to participate objectively, fairly and in the public interest. Councilor Frye disclosed that his spouse is an employee for the Fredericksburg City Public Schools but he was able to participate objectively, fairly and in the public interest. Ms. Jett gave a brief overview of capital projects $2.2 for James Monroe’s HVAC, athletic Track and library, Walker-Grant Annex, school expansion design, technology, buses and equipment. Other projects included transportation projects equaling $6.2 million, pedestrian bridge replacement plan, new ambulance, water and sewer – the preliminary design of Motts Water Treatment facility expansion, and preliminary design of sewer consolidation projects. Ms. Jett discussed in her PowerPoint other funds such as Stormwater, Children’s Services Act, Water and Sewer and debt service. Other changes in the budget will be with R-Board and additional increase in revenue related to the Comp Board. She also showed the impact on property tax bill with a $0.04 tax increase. The Council had a brief discussion on the advertised tax rate. Mayor reminded the Council that historically they have given themselves some room to play with when advertising a tax increase. She said she heard from Vice-Mayor Withers that he would be comfortable with advertising $0.05- 0.07 and Councilor Kelly mentioned at a previous meeting he would go as high as $0.10. Councilor Duffy, Devine and Frye also agreed with $0.05-0.07. Mayor Greenlaw said she would be comfortable advertising $0.06. Councilor Frye said he would like to get a penny for African American History. The Council agreed on a $0.06 advertised rate. Adjournment. There being no further business to come before the Council at this time. Mayor Greenlaw declared the session officially adjourned at 6:32 p.m. _Tonya B. Lacey _______ Tonya B. Lacey Clerk of Council City of Fredericksburg 2