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 April 2, 2019 Capital Improvements Plan Overview Debt Financing The Council of the City of Fredericksburg, Virginia held a work session on Tuesday, April 2, 2019, beginning at 6:00 p.m. in the Council Chamber. Council Present. Mayor Mary Katherine Greenlaw, Presiding. Vice-Mayor William C. Withers, Jr., Councilors Kerry P. Devine, Charlie L. Frye, Jr, Jason N. Graham and Matthew J. Kelly. Council Absent. Councilor Timothy P. Duffy, surgery. 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, Budget Manager Deidre Jett, Finance Director Robyn Shugart and Clerk of Council Tonya B. Lacey. Others Present. Kevin Rotty, PFM Financial Advisors. Capital Improvements Plan Overview. Budget Manager Jett presented a PowerPoint presentation on the Fiscal Year 2020 Capital Improvement Plan debt. The presentation covered the projects and funding overview. She highlighted the following projects: Schools capital ($5,266,000); Schools Bond-Funded Capital ($11,912,000); Public Works ($73,491,350), Public Works – Solid Waste ($3,025,000) and Stormwater Management ($13,554,000); Pond D (($10,500,000); Trails and Parks (($3,290,550); Transportation ($51,093,000); Public Works – Gateway Boulevard; Public Facilities ($13,507,200); Public Facilities – Old Town Hall ($1,050,000); Public Safety and Courts – Police ($1,005,000), Fire ($21,490,000), Courts ($519,000). Ms. Jett reviewed the water project which is 66% debt financed, Wastewater which is 83% debt financed and waste water treatment plant consolidation. (See Attachment I for more information). There was considerable discussion on the Stormwater funding and whether the City could get a 50/50 match from Department of Environmental Quality (DEQ). Ms. Jett informed the 1 Council that the SALF funds had been cut. It was stated that smaller projects was the best opportunity to get funding. Council also had lengthy discussion of the wastewater sewer project and they wanted to know how firm the cost numbers were for this project. Staff informed the Council that the numbers presented were the best numbers available. Discussion turned to Gateway Boulevard and Mr. Baroody was asked what the worst case scenario costs were and he said the number presented in the budget was the worst case scenario. Mr. Baroody also said he was working with the property owners regarding a TIF arrangement and that they could advance the project if the TIF works and the VA Clinic locates here. Debt Financing. Mr. Kevin Rotty presented a PowerPoint presentation reviewing first the City’s debts: the debt considerations, the types of city indebtness, overview of the existing debt; proposed fiscal year 2020 Capital Improvements Plan (CIP): proposed CIP needs and timing, debt service impact of proposed CIP; Proposed FY 2020 Enterprise CIP: proposed enterprise CIP needs and timing, impact of enterprise CIP (affordability), enterprise CIP impact on debt policy (capacity); Impacts of Modifications to CIP: modified City CIP with a new elementary school, modified CIP impact on debt policy with new elementary school, CIP impact on financial guidelines with new elementary school and gateway and Conclusion. (See Attachment II for more information). Council ensued in discussions on fund balances, water sewer issues, positions that were requested in the budget as well as bond ratings and what more debt would do to the City’s bond rating. Propositions. Councilor Graham propositioned that the ramp from the VCR Trail to Alum Spring Road could be sped up to 2020. Councilor Frye propositioned $250,000 to tell the African American history in the City. Councilor Kelly propositioned the elimination of Commonwealth Attorney position. Adjournment. There being no further business to come before the Council at this time. Mayor Greenlaw declared the session officially adjourned at 7:40 p.m. _Tonya B. Lacey _______ Tonya B. Lacey Clerk of Council City of Fredericksburg 2