City Council

Public Hearing 12/12/23 HON. MARY KATHERINE GREENLAW, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR HON. KERRY P. DEVINE, AT-LARGE CITY COUNCIL HON. MATTHEW J. KELLY, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 December 12, 2023 The Council of the City of Fredericksburg, Virginia, held a public hearing on Tuesday, December 12, 2023, beginning at 7:54 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw. Vice-Mayor Charlie L. Frye, Jr. Council members Kerry P. Devine, Dr. Timothy P. Duffy, Jonathan A. Gerlach, Jason N. Graham and Matthew J. Kelly. Others Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Assistant City Attorney Dori Martin, Economic Director Bill Freehling, Assistant Tourism Director Margaret Morris, Planning and Building Services Director Charles Johnston, Principle Planner Michael Craig, Historic Resources Planner Kate Schwartz, Stormwater Manager Brian Cooke, Development Administrator Marne Sherman, Finance Director Robyn Shugart, Director of Finance Robyn Shugart, Budget Analyst Donna Leahy, Fire Chief Mike Jones, Battalion Chief Jack McGovern, Director of Transit Jamie Jackson, Assistant Director of Public Works Edwin Reagan, Emergency Communications Director Michelle Lambert, Human Resources Director Lesley Moore and Clerk of Council Tonya B. Lacey. 21999 Public Hearing 12/12/23 Notice of Public Hearings (D23-564 thru D23-571). The Clerk read the notice of the public hearings as it appeared in the local newspaper, the purpose being to solicit citizen input. Ordinance 23-20, Second Read Approved, Rezoning 63 Acres in Celebrate Virginia South from Planned Development Commercial (PD-C) to Planned Development Mixed Use (PD-MU) and Planned Development Residential (PD-R) for the “Neon” Project (D23-564 thru D23-565). Councilor Gerlach disclosed that he was abstaining because he represents or provide services to the American Canoe Association, a business which may realize a reasonably foreseeable direct or indirect benefit or detriment as a result of the action of the Fredericksburg City Council considering the Neon rezoning application. Staff provided a brief overview of the Neon Project and Attorney Charlie Payne, representative for the applicant stated he was available for questions. Councilor Kelly made a motion to approved Ordinance 23-20, on second read, rezoning 63 acres in Celebrate Virginia South from Planned Development Commercial (PD-C) to Planned Development Mixed Use (PD-MU) and Planned Development Residential (PD-R) for the “Neon” project; motion was seconded by Vice-Mayor Frye and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Graham and Kelly. Nays (0). Abstain (1). Councilor Gerlach. Ordinance 23-21, First Read, Amending Fredericksburg City Code Chapter 10, Article II, Division 19, “Wetlands Board,” and §72-34.4 22000 Public Hearing 12/12/23 “Wetlands Overlay District,” to Conform to the Code of Virginia (D23-566 thru D23-567). No speakers. Stormwater Manager Cooke presented a brief PowerPoint and Councilor Kelly moved to approve Ordinance 23-21, on first read, amending Fredericksburg City Code Chapter 10, Article II, Division 19, “Wetlands Board,” and §72-34.4 “Wetlands Overlay District,” to conform to the Code of Virginia: motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Suspend the Rules. In order to place Ordinance 23-21 on for second read Councilor Kelly moved to suspend the rules; motion was second by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 23-21, Second Read, Amending Fredericksburg City Code Chapter 10, Article II, Division 19, “Wetlands Board,” and §72-34.4 “Wetlands Overlay District,” to Conform to the Code of Virginia (D23-566 thru D23-567). Councilor Kelly moved to approve Ordinance 23-21, on second read, amending Fredericksburg City Code Chapter 10, Article II, Division 19, “Wetlands Board,” and §72-34.4 “Wetlands Overlay District,” to conform to the Code of Virginia: motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 23-22, First Read, Amending the Residential Use and Density Regulations of the Unified Development Ordinance (D23-568 thru 22001 Public Hearing 12/12/23 D23-570). 3 speakers. Staff presented a PowerPoint presentation and in the presentation he discussed the June 9 Council approved PD-R amendments, May 9 Council Initiated additional text amendments, Single-Family Attached (townhouse) Design/Unit Flexibility & Choice, he showed examples of Two Units Stacked, Multi-family and Single-Family Attached Units Fractional Density Credit, How Proposed Density Credit Would have Impacted Recent Projects, Environmental Protection Changes, Current sensitive areas with minutes on use of density and Environmentally Sensitive Areas. Mo Deadman, 214 Princess Anne Street, stated that she opposed all items listed in the Residential Use and Density Regulations proposed amendments. She stated that the changes could have major impacts on the affected neighborhoods without regards to pressures placed on infrastructure, neighborhood character or damage to tourism. The changes to §72-41.1 creates multifamily in single family neighborhoods. Section 51.3 appears to open the door to almost anything, Section 72.51.1 was alarming to Ms. Deadman and she wanted to know how many multi-family units would it take to make a unit. She encouraged the Council to vote against the proposed amendments. Denise Malczewski, 220 Princess Anne Street, spoke in objection to the amendment to the ordinance. She stated that these amendments should be dealt with during the review of the Comprehensive Plan because the changes affect much of the City. She wanted to know who was driving the amendments. Ms. Malczewski also stated that the notices were unintelligible. She asked the Council to toss this out until the review of the Comprehensive Plan or to toss it out and direct the Planning 22002 Public Hearing 12/12/23 Commission to start the process over with better public communication and clearer notices and more justification and separate the downtown. Hamilton Palmer, 1500 Caroline Street, stated that there was a lot to be concerned with in the proposed amendment. He said all the changes that were happening with the Unified Development Ordinance was making it hard for citizens to keep up. He was concerned with the proposed changes because of ownership issues that the units cause because there is more than one unit on a lot. He was concerned with the additional costs to schools in the future. One of the bigger issues with the ordinance is how it came about, he said no one knew about the proposed changes because it had not been discussed with the neighborhoods. Councilor Graham moved to approve Ordinance 23-22, on first read, amending the residential use and density regulations of the Unified Development Ordinance: motion was seconded by Councilor Duffy. Councilor Kelly stated that he does not like making incremental changes. He was concerned with more density in the downtown core area. He said it was important to spend the time to look at the entire City and the surrounding area to see what the impact is going to be on the City. He said there needed to be discussions on the housing and density issues to include what is going on in Stafford and Spotsylvania Counties. He said anything built in the City would be more expensive than in the Counties. Councilor Kelly asked to have the housing conversation before voting on this item. Councilor Graham said the density issue was pressing and he believes there are multiple arguments for it and housing affordability was just one. As the City and region 22003 Public Hearing 12/12/23 grows, there would be an increased need for multiple types of housing in the downtown because the City is the urban hub of the region. He said this model would provide opportunities for people to not have to get in cars to go everywhere. He said having density in the downtown was crucial for the economic vibrancy of the City. Vice-Mayor Frye disagreed with Councilor Kelly that the Council had not been having conversation on affordability. He said the Council has been on a journey to find more options for housing. He said if there were more options of housing more people could live in different areas of the City. He said the job of Council was to try to do what everyone was asking. Councilor Duffy noted that this encourages diversity of housing. Councilor Gerlach stated that there was a nationwide housing crisis and the experts are saying one approach to easing the crisis is to provide a broader supply of housing types and that is what this ordinance will do. He said all of Council knows the importance of maintaining the special character of the City. He said this helps the important people of the City, like college students, firefighters, police and hospice workers who cannot afford to live in the City to be able to live in the City, by making more types of housing available. He said if the City does not do anything to help maintain the character of the neighborhoods, he believes gentrification will happen. Councilor Kelly stated that the City has the most diverse housing in the area and gentrification was already happening. The motion passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. 22004 Public Hearing 12/12/23 Fredericksburg Wastewater Treatment Plant Nutrient Removal Upgrade and Expansion Project, Draft Environmental Assessment Report (D23-571). No Speakers. Assistant City Manager Brown explained that in order to meet Federal requirements, a Draft Environmental Assessment report (October 2023) was prepared for the Fredericksburg Wastewater Treatment Plant nutrient removal upgrade and expansion project. As part of these requirements, the City is required to conduct a public hearing to receive public comments on the draft document for inclusion in the final report. The National Environmental Policy Act (NEPA) process requires federal agencies to evaluate impacts to the human and natural environment whenever there is federal connection to a proposed project, which for this project is the inclusion of federal funding. The NEPA process is a planning process, and a part of its intent is to gain insight from the public. As part of the NEPA process, a public hearing must be held at least 30 days after public notice. The public notice was advertised in the Free Lance Star on November 12, 2023 and November 19, 2023. During this 30-day period, a draft Environmental Assessment (EA) was made available to the public. Copies of the draft EA report and the Basis of Design Report (BODR) for the project was available at the Central Rappahannock Regional Library - Fredericksburg Branch (1201 Caroline Street Fredericksburg, VA 22401) for public review. 22005 Public Hearing 12/12/23 The report provided a table that listed what the possible environmental impacts may be in addition to alternatives that were considered. Also included in the report were comments from various reviewing agencies. Adjourned. There being no speakers to come before the Council at this time, Mayor Mary Katherine Greenlaw declared the hearing officially adjourned at 9:55 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council, MMC 22006 APPROVED 10-10-23 Regular Session 12/12/23 HON. MARY KATHERINE GREENLAW, MAYOR CITY OF FREDERICKSBURG, VIRGINIA HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR HON. KERRY P. DEVINE, AT-LARGE CITY COUNCIL HON. MATTHEW J. KELLY, AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO HON. DR. TIMOTHY P. DUFFY, WARD THREE Council Chambers, 715 Princess Anne Street Fredericksburg, Virginia 22401 December 12, 2023 The Council of the City of Fredericksburg, Virginia, held a regular session on Tuesday, December 12, 2023, beginning at 7:30 p.m. in the Council Chambers of City Hall. City Council Present. Mayor Mary Katherine Greenlaw. Vice-Mayor Charlie L. Frye, Jr. Council members Kerry P. Devine, Dr. Timothy P. Duffy, Jonathan A. Gerlach, Jason N. Graham and Matthew J. Kelly. Others Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Assistant City Attorney Dori Martin, Economic Director Bill Freehling, Assistant Tourism Director Margaret Morris, Planning and Building Services Director Charles Johnston, Principle Planner Michael Craig, Historic Resources Planner Kate Schwartz, Stormwater Manager Brian Cooke, Development Administrator Marne Sherman, Finance Director Robyn Shugart, Director of Finance Robyn Shugart, Budget Analyst Donna Leahy, Fire Chief Mike Jones, Battalion Chief Jack McGovern, Director of Transit Jamie Jackson, Assistant Director of Public Works Edwin Reagan, Emergency Communications Director Michelle Lambert, Human Resources Director Lesley Moore and Clerk of Council Tonya B. Lacey. 22007 Regular Session 12/12/23 Opening Prayer and Pledge of Allegiance. Council was led in prayer by Vice-Mayor Charlie L. Frye, Jr. followed by the Pledge of Allegiance led by Councilor Jason N. Graham. Officer Recognized. Mayor Greenlaw recognized the presence of Deputy Sean Jett at this evening’s meeting. Annual Financial Report – Andrew Grossnickle of Robinson, Farmer, Cox Associates. Mr. Andrew Grossnickle with Robinson, Farmer, Cox and Associates reviewed the financial results of the audit with the Council. He said the 2023 audit had an unmodified independent auditors report. He also reported that in the Government Auditing Standards Report there were no material weaknesses or significant deficiencies to report. Mr. Grossnickle also issue a Single Guidance Report, this report is required if you spend over $750,000 of federal funds in a year, and there were no material weaknesses or significant deficiencies to report in compliance related matters. He reviewed the auditors letter and the management letter as well as a few highlights from the report. He reviewed a few financial highlights stating the total net position for the City’s governmental activities was $145.8 million, an increase of $20.4 million and for business activities (equity) the total net position was $89.7 million, an increase $6.3 million. The governmental funds (fund balance) had a total fund balance of $142.3 million and the main fund of the City, the general fund, reported a balance of 22008 Regular Session 12/12/23 $41.2 million and $21.7 million was unassigned. The governmental fund balances increased by $1.8 million. Recognizing Mayor Mary Katherine Greenlaw and Councilor Matthew J. Kelly. Mayor Greenlaw presented a proclamation to Councilor Kelly, recognizing him for his many contributions made to the City and she thanked him for his leadership and contributions to the residents of the City. Councilor Kelly thanked the citizens for allowing him to serve for as long as he has and he thanked them for their suggestions, comments and criticisms. He said he was hoping that he was leaving the City better than when he started. He also spoke of his love for the City. Vice-Mayor Frye presented Mayor Greenlaw with a proclamation and recognized her for her contributions to the City and he thanked her for her leadership and contributions to the residents of the City. Mayor Greenlaw stated that it has been an honor and a privilege to work with the extraordinary people she has worked with. She said the Council and city staff are dedicated to what is best for the City of Fredericksburg. She said she still feels the same sense of community that she felt when she was a young girl. She said there are wonderful and dedicated people and business owners in the City. She thanked the citizens for allowing her to serve the City she loves so well. City Manager Baroody stated to Mayor Greenlaw and Councilor Kelly how grateful he was for their support and leadership and for their energy. The Clerk 22009 Regular Session 12/12/23 presented Mayor Greenlaw and Councilor Kelly with gifts and a video commemorating their time in the City. Vice-Mayor Frye stated that it was an honor to serve with Mr. Kelly and the conversations they had meant a lot and he learned a lot from them. He thanked him for sticking his head out and having the hard conversations. He also noted that his relationship with Mayor Greenlaw was real and he honors that relationship. Vice-Mayor Frye said he appreciated the great friendship they have. Councilor Graham noted that Councilor Kelly knows more about the transportation laws and regulations and how transportation gets funded in Virginia. He said more importantly, he will freely share that information with anyone who wants to learn. He recognized how much Councilor Kelly has taught him on how to get things done and he was eternally grateful for that. He also noted that Mayor Greenlaw had a wealth of information on the City not from being on Council but from living in the City. He noted her sense of community and he noted how inspiring she was. He was grateful for her and he said her trailblazing efforts had not gone unnoticed. Councilor Gerlach thanked Councilor Kelly for his friendship and for all the conversations they have had. He also stated to Mayor Greenlaw that it was tough to see her leave. She was a great friend and an inspiration to many. He said she was a legend in her own time. Councilor Duffy thanked both Mayor Greenlaw and Councilor Kelly for helping him to learn how to live and improve the City. He spoke of how he admired Mayor Greenlaw and the way she does things. He said that legacy would carry on. 22010 Regular Session 12/12/23 Councilor Devine stated that she and Councilor Kelly went way back to their college days and she noted he has always been outspoken, involved and hard working. She thanked him for all his work in the City. She stated that Mayor Greenlaw has been a friend and a mentor and she spoke of her appreciation for their relationship. She said that Mayor Greenlaw lead with grace, style and an ability to bring out the best in people. Mayor Greenlaw said the thing everyone admired the most about Councilor Kelly was his passion for the City. She said he has made tremendous contributions to the City and she thanked him for his concern for the City. Councilor Kelly thanked everyone for their kind words and he said Mayor Greenlaw was always gracious and she was the core of the Council and led them well. He noted that she has served the City her entire life and she has always been gracious. He thanked her for her service. Renwick Complex Working Group Update (D23-555 thru D23-556). Historic Resources Planner Schwartz presented a PowerPoint presentation in the presentation she discussed the site components, the Renwick Complex Working Group Members and the current status. Ms. Schwartz turned the presentation over to Paige Pollard with Commonwealth Preservation Group who discussed the groups progress. She discussed the process they used to come up with the recommendations. She said they broke up in to three subcommittees: The Finance Committee, The Use Group, and The Historic Preservation Committee. Each of the groups provided recommendations to the larger group and as 22011 Regular Session 12/12/23 they did that the overall vision advanced. She discussed the shared goals which were to reuse the Courthouse building, and the courtroom should be the first priority; public use and ownership of the courthouse building should be maintained and the other uses in the complex must provide revenue to support the desired reuse and preservation priorities. The overall goal of the Committee was to reposition the Renwick Complex with focus on the Courthouse for long-term public ownership, public use and a public – private partnership. Councilor Gerlach spoke on behalf of the Use Group and he said they wanted to be sure the Courthouse would be repaired and maintained in a sustainable way and the way to achieve that was to maximize the revenue. He said they wanted to make sure whatever uses they recommended did not require significant modifications to the building. He said a recommendation of a performing arts facility in the upstairs courthouse and possibly an art gallery on the first floor. Councilor Gerlach said they also looked at ways to maximize revenue and one way was a mixed beverage performing arts ABC license. This would allow the sale and consumption of alcoholic beverages on site and authorizes the licensee to serve beer and wine on premises or off premise in closed containers. He said the committee was hopeful this would entice bidders or respondents to consider a performing arts facility with the ABC license attached. He said they also looked at the current use “assembly use” and if this use was expanded there were other building code requirements such as 22012 Regular Session 12/12/23 sprinkler systems and other fire mitigations that would require alterations to the building. Councilor Kelly represented the Historic Preservation Group said there were two issues they looked at the historic portion (National Registry Designation), and the preservation component of the buildings involved. The first goal was the preservation of the Renwick Courthouse, the second was public ownership and use of the structure and lastly, the economics and money. He said the money should not be the driving factor the driving factor should be preserving the Courthouse for public use and public ownership. Councilor Kelly said there was a lot of money that could be used if the City were to get the National Registry Designation. There are some issues because once the period of time is determined it could impact how the building is used or repaired. He said they were separating out the buildings because in order to go for the designation the buildings were not historically synced. Councilor Kelly said they looked at the potential sale of the other buildings to generate revenue for the Renwick Courthouse. They determined that the greenspace in front of the Wallace Library building must be maintained. With regards to preservation, there was a 2016 assessment and there are missing window and many of the windows were not in good condition. Councilor Kelly said there was water intrusion in the building. He said in order to preserve the building there was work that needed to be done. He suggested getting those in the community that could help such as, HFFI, University of Mary Washington, local preservation groups 22013 Regular Session 12/12/23 and National Park Service. He said there were three things that need to be completed: a full assessment of the building to determine how far to go with the repairs, move forward with the National Registry Determination and set a timeline. Economic Development Director Freehling represented the Construction and Financing Group and said their job was to take some of the ideas and test the financing viability. He said by doing this they developed a couple of proforma’s and models. The best proforma was if the developer ended up with the Wallace Library and the Jail as collateral. He said they would go out to seek public-private partnerships and advise flexibility. Ms. Schwartz listed the recommendations as follows: Solicit proposals for adaptive reuse of the complex in a public-private partnership, prioritizing rehabilitation of the courtroom as an event/performance venue; Conduct updated market analysis; Consult with DHR and begin assessment for an individual National Register of Historic Places nomination; Conduct condition assessment and continue critical maintenance and repair tasks and Ensure public access to information and engage in community outreach. Staff proposed to return to City Council with an action plan to implement the working group’s recommendations in the first quarter of calendar year 2024 and while pursuing adaptive reuse, the City would continue to maintain the buildings and work toward repairs that prepare for the larger rehabilitation. Councilor Graham asked if the developer would have their choice of the proposed use for the Wallace Library and the Jail buildings in exchange for the City 22014 Regular Session 12/12/23 maintaining ownership. Ms. Schwartz said there were a couple of paths and the Finance Committee identified there would be a challenge with financing if the entire complex remained in public ownership because there would not be any collateral for the loan. Therefore, the recommendation would be that all structures remain on one parcel together but the Library and Jail buildings could potentially change ownership. Councilor Graham asked if they know this is there a need for a market analysis and let the private sector come with their ideas. Mr. Baroody said there was good dialog about that but no consensus because some thought a market analysis would add value. Mr. Baroody said that could be that Council recommends not doing the analysis. Consent Agenda Accepted for Transmittal as Recommended (D23- 557 thru D23-563). Councilor Duffy disclosed that he was employed by the Fredericksburg City Schools but he could participate fairly and objectively in the public interest on this item and the next item. Vice-Mayor Frye disclosed that his spouse was employed by the Fredericksburg City Schools but he could participate fairly and objectively in the public interest on this item and the next item. Councilor Kelly moved approval of the City Manager’s consent agenda; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). • Resolution 23-71, Second Read, Fiscal Year 2024 Budget Amendment Authorizing the Appropriation of Fiscal Year 2023 Carryovers and Approving Additional Appropriations for Certain Capital Projects (D23-557). 22015 Regular Session 12/12/23 • Resolution 23-72, Second Read, Fiscal Year 2024 Budget Amendment Authorizing the Appropriation of Additional Funds for City and Schools Projects (D23-558 thru D23-560). • Transmittal of the Board and Commission Minutes o Memorials Advisory Commission – February 16, 2023 (D23-561). o Memorials Advisory Commission – May 18, 2023 (D23-562). o Memorials Advisory Commission – August 17, 2023 (D23-563). Public Hearing (D23-564 thru D23-571). The regular session was recessed in order to conduct scheduled public hearings and immediately reconvened upon their conclusion. Citizen Comment. There were no comments given and/or submitted to be read during the citizen comment portion of this evening’s meeting. Council Agenda Presented. The following items were presented to Council for discussion. 8A. Parade – Mayor Greenlaw 8B. Meeting with Local Legislators – Councilor Devine 8C. The Voice – Councilor Gerlach Parade. Mayor Greenlaw commended the Parks, Recreation and Events employees and the Public Works employees for their hard work and management of the huge crowds of people that showed up for the parade. She said it was lots of 22016 Regular Session 12/12/23 management. She noted that you would not know there was a parade an hour after it occurred because it was cleaned up so quickly by the employees. Councilor Graham also thanked the Police Department for their work during the parade. Meeting with Local Legislators. Councilor Devine noted that she and Dr. Duffy along with staff met with Delegate-Elect Joshua Cole and State Senator Tara Durant to discuss the legislative agenda to include Wastewater Treatment Plant funding, School funding, possibility of Regional Transportation Board, excessively loud modified vehicles, state aid to retain and recruit police and cyber security workforce. She said they were hopeful they would help to move those initiatives forward in the General Assembly. The Voice. Councilor Gerlach reported that local singer Huntley made it into the finals of the Voice competition. Adoption of Minutes (D23-572). Councilor Devine moved approval of the May 9, 2023 Work Session Minutes and the November 28, 2023 Public Hearing and Regular Session minutes; motion was seconded by Councilor Graham and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 23-80, Approved, Adopting the City’s Emergency Operations Plan [EOP] (D23-573). After staff presentation Councilor Gerlach moved to approve Resolution 23-80, adopting the City’s Emergency Operations Plan 22017 Regular Session 12/12/23 [EOP]; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Financial Update for Fiscal Year 2024 (D23-574). Finance Director Shugart presented a PowerPoint presentation and she highlighted the Fiscal Year (FY) 2024 budget. The total revised budget for FY 2024 is $122,998,018. This includes use of fund balance in the amount of $5.8 million dollars. Real Estate and Personal Property taxes were due December 5, 2023. The due date had historically been November 15th and in March 2023 City Council approved a change to the due date to December 5th going forward. The due date change needed to be factored when comparing previous years’ data by reporting period. The Meals and Hotel Lodging Taxes are on a 45-day accrual period, which means that the revenue showing through November 30 is for approximately three and a half months of the fiscal year. Sales Tax is on a 60-day accrual period, which means there is approximately three months of revenue reported through November 30. Ms. Shugart also showed charts of the current revenue and expenditures and a comparison chart of the revenue and expenditures for 2022, 2023 and 2024 as well as a comparison chart for sales taxes by the month. There were several Revenue Highlights and they were as follows: • Sales Tax is the second largest revenue source in the General Fund following Real Estate Taxes. The revenue reported through November 30 reflects slightly above the projected revenue for the first several months 22018 Regular Session 12/12/23 of FY 2024. The projected average is $1.33 million monthly and actual collections are $1.38 million monthly. • Meals Tax is the third largest revenue source behind Real Estate and Sales Tax. The revenue reported through November 30 reflects slightly below the projected revenue for the first several months of FY 2024. The projected average through November 30 is $1.26 million monthly and actual collections are $1.24 million. • Hotel Lodging Tax is exceeding revenue projections for the beginning of FY 2024. The projected average through November 30 is $199,000 and the actual collections are $226,000. • These revenues are key sources in the General Fund Budget. Staff will monitor the revenue as consumption revenue sources are largely impacted by economic changes. • Interest Income is a local revenue source that is continuing to see larger monthly revenue receipts than budgeted. Ms. Shugart explained that on September 14, 2023, the Governor approved the budget amendments the General Assembly passed in the 2023 special session. The City will receive some additional State funds in comparison to the adopted FY 2024 budget. Resolution 23-81, First Read Approved, Amending the Fiscal Year 2024 Budget to Appropriate Funds for the Renovation of the Executive Plaza for the New Visitor Center (D23-575). After staff presentation and a brief discussion Councilor Devine moved to approve Resolution 23-81, on first read, 22019 Regular Session 12/12/23 amending the Fiscal Year 2024 budget to appropriate funds for the renovation of the Executive Plaza for the new Visitor Center; motion was seconded by Councilor Gerlach and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. Motion to Suspend the Rules. In order to place Resolution 23-81 on for second read Councilor Devine made a motion suspend the rules; motion was seconded by Councilor Graham and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. Resolution 23-81, Second Read Approved, Amending the Fiscal Year 2024 Budget to Appropriate Funds for the Renovation of the Executive Plaza for the New Visitor Center (D23-575). Councilor Devine moved to approve Resolution 23-81, on second read, amending the Fiscal Year 2024 budget to appropriate funds for the renovation of the Executive Plaza for the new Visitor Center; motion was seconded by Councilor Gerlach and passed by the following recorded votes. Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. Resolution 23-82, Approved, Awarding a Contract to Paddox, LLC to Renovate the Executive Plaza for the New Visitor Center (D23-576). After staff presentation Councilor Devine moved to approved Resolution 23-82, awarding a contract to Paddox, LLC to renovate the Executive Plaza for the new Visitor Center; motion was seconded by Councilor Duffy and passed by the following recorded votes. 22020 Regular Session 12/12/23 Ayes (6). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach and Graham. Nays (1). Councilor Kelly. Resolution 23-83, Approved, Declaring the Official Intent to Reimburse for Capital Expenditures Related to Improvements to the Motts Run Water Treatment Plant (D23-577). After a brief discussion Councilor Graham made a motion to approve Resolution 23-83, declaring the official intent to reimburse for capital expenditures related to improvements to the Motts Run Water Treatment Plant; motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 23-84, Approved, Supporting Congestion Mitigation and Air Quality (CMAQ) as well as Surface Transportation Block Grant (STBG) Applications (D23-578 thru D23-579). Councilor Graham moved to approve Resolution 23-84, supporting Congestion Mitigation and Air Quality as well as Surface Transportation Block Grant Applications; motion was seconded by Councilor Frye and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 23-85, Approved, Supporting Transit Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Block Grant Applications (STBG) (D23-580). Councilor Graham moved to approve Resolution 23-85, supporting Transit Congestion Mitigation and Air Quality (CMAQ) and 22021 Regular Session 12/12/23 Surface Transportation Block Grant Applications (STBG); motion was seconded by Councilor Devine and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Resolution 23-86, Approved, Amending the Fiscal Year 2024 Budget for a Grant from the Virginia 911 Services Board to Provide Bonuses to Public Safety Communications Officers (D23-581), Councilor Devine moved to approve Resolution 23-86, amending the Fiscal Year 2024 budget for a grant from the Virginia 911 Services Board to provide bonuses to public safety communications officers; motion was seconded by Councilor Graham and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 23-23, First Read Approved, Authorizing the Payment of a Bonus to the Fredericksburg Police Department Communications Employees in accordance with the Virginia 9-1-1 Services Board Fiscal Year 2024 Staffing Recognition Grant (D23-581). Councilor Devine made a motion to approve Ordinance 23-23, on first read, authorizing the payment of a bonus to the Fredericksburg Police Department communications employees in accordance with the Virginia 9-1-1 Services Board Fiscal Year 2024 staffing recognition grant; motion was seconded by Councilor Gerlach and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Motion to Suspend the Rules. In order to place Ordinance 23-23 on for second read Councilor Devine made a motion suspend the rules; motion was seconded 22022 Regular Session 12/12/23 by Councilor Gerlach and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). Ordinance 23-23, Second Read Approved, Authorizing the Payment of a Bonus to the Fredericksburg Police Department Communications Employees in accordance with the Virginia 9-1-1 Services Board Fiscal Year 2024 Staffing Recognition Grant (D23-581). Councilor Devine made a motion to approve Ordinance 23-23, on second read, authorizing the payment of a bonus to the Fredericksburg Police Department Communications Employees in accordance with the Virginia 9-1-1 Services Board Fiscal Year 2024 staffing recognition grant; motion was seconded by Councilor Gerlach and passed by the following recorded votes. Ayes (7). Councilors Greenlaw, Frye, Devine, Duffy, Gerlach, Graham and Kelly. Nays (0). City Manager’s Report and Council Calendar (D23-582 thru D23- 583). City Manager Baroody directed the Council’s attention to the Manager’s Update: New Video from We Are One 22401, Christmas Parade, Christmas Parade Winners, Santa Clause is Coming to FXBG!, Northern Virginia Magazine, Indulge Your Sweet Tooth, Holiday Cards, Looking for Something to Do?, City of Fredericksburg, Fredericksburg EDA, and UMW Athletics Partner on Sports Tourism, The Holiday Season, Fall Leaf Collection Continues, Holiday Driving Safety, Youth Basketball Registration is Open, Traffic Safety Initiative, Fredericksburg EDA, Recreation and Events Fall Catalog is available!, Fred Focus. 22023 Regular Session 12/12/23 Adjournment. There being no further business to come before the Council at this time, Mayor Greenlaw declared the meeting officially adjourned at 10:35 p.m. Mary Katherine Greenlaw Mary Katherine Greenlaw, Mayor Tonya B. Lacey Tonya B. Lacey, Clerk of Council APPROVED 01-09-24 22024