City Council

CITY OF FREDERICKSBURG, VIRGINIA HON. KERRY P. DEVINE, MAYOR HON. CHARLIE L. FRYE, JR., VICE -MAYOR, WARD FOUR CITY COUNCIL HON. JANNAN W. HOLMES, AT-LARGE HON. WILL B. MACKINTOSH, PH.D., AT-LARGE HON. JASON N. GRAHAM, WARD ONE HON. JONATHAN A. GERLACH, WARD TWO Council Chambers, 715 Princess Anne Street HON. TIMOTHY P. DUFFY, PH.D., WARD THREE Fredericksburg, Virginia 22401 Work Session March 19, 2024 Fiscal Year 2025 Recommended Budget Discussions The Council of the City of Fredericksburg, Virginia held a work session on Tuesday, March 19, 2024, beginning at 6:00 p.m. in Large Conference Room. Council Present. Mayor Kerry P. Devine, Presiding. Councilors Timothy P. Duffy, Jonathan A. Gerlach (via phone), Jason N. Graham (via phone), Jannan W. Holmes and Will B. Mackintosh. Council Absent. Vice-Mayor Charlie L. Frye, Jr., death in family. Also Present. City Manager Timothy J. Baroody, Assistant City Manager Mark Whitley, Assistant City Manager David Brown, City Attorney Kathleen Dooley, Finance Director Robyn Shugart, Budget Manager Donna Leahy and Clerk of Council Tonya B. Lacey. Moment of Silence. Mayor Devine began the meeting with a moment of silence for the passing of Vice-Mayor Frye’s father. Fiscal Year 2025 Recommended Budget Discussions. Councilor Duffy disclosed that he was employed by the Fredericksburg City Public School System, but he could participate in the budget discussion fairly, objectively and in the public interest. Councilor Holmes disclosed that she is a member of a business, profession, occupation or group of three or more members affected by the transaction, namely: She provide services to students of the City Schools under a grant funded contract with Fredericksburg Public Schools but she could participate in the budget discussion fairly, objectively and in the public interest. Finance Director Shugart presented a PowerPoint presentation and she discussed the following: Agenda – FY 2025 Recommended Budget, Budget Drivers, General Fund Revenue, 1 Real Estate Taxes – Reassessment Process, Personal Property Tax, Fire Tax, Sales Tax, Meals Tax, Admissions Tax/Tobacco Tax/Court Security Fee, State Revenue, Water and Wastewater, Expenditures, Personnel and Compensation, Personnel and Compensation (New Positions), Expenditures – Debt Service, School Budget and upcoming Budget Meetings. (See Attachment I for more information). Mayor Devine asked if there were limitations on the amount you can increase the Fire tax. Mr. Whitley said the fire tax acts just like the real estate tax and to his knowledge as long as it is used for fire purposes there was no limitation. She was not looking to raise it, she was curious. Councilor Graham asked what could be done for a gradual water increase. He was concerned with those who may not be able to afford an increase. He also asked about the Court fee what happens if a person could not pay. Mr. Whitley said the courthouse security fee is $10.00 and it is assessed at any defendant who is convicted of any violation of ordinance or law. You have to be found guilty and the rate will go from $10 to $20. The State Code allows the rate of $20 and that is the reason for the recommendation. Council Gerlach noted that at the School Board meeting they talked about possibly pooling their insurance group with the City’s to get more favorable rates. He asked for additional information on the insurance. He was also concerned about river safety and he asked if there was anything in the budget for River Safety Officers. Mr. Baroody said there was one position, River Steward that has been funded for a decade or more but no other positions assigned specifically to river safety. Councilor Gerlach expressed his concerns because the River Steward covers a large area and he did not know if one person could cover what needed to be covered. Mayor Devine noted that officers also train in river rescue. Ms. Shugart also noted that that position is funded under Riparian Lands fund. Councilor Duffy said he would like to advertise the tax rate at $.79 or $.80. Councilor Graham agreed. Councilor Mackintosh was not ready to make any decisions yet because of the $3 million gap in the school budget. Mayor Devine said she would like to see the impact of the real estate tax increase on the average taxpayer. She was concerned with the funding and the number of positions that are not being funded, as well as not fully funding the library. 2  Councilor Mackintosh asked staff if property values were rising equally across the City and he asked if they see similar movement in commercial and real estate markets. Mr. Whitley said the assessors have said residential that is less valued was going up more as a percentage. Multi-family was going up some and there was a little less growth in commercial real estate. Mayor Devine asked if the tax collections were factored in the budget and Ms. Shugart said they had been. Mayor Devine said if more funding comes in than expected there maybe a shortlist that Council could add to the budget, such as unfunded positions. Councilor Duffy asked wherther there was any interest in propositioning renewing the Rental Inspection Program position. Councilor Graham was in agreement. Mr. Baroody said they looked at this position and it did not make it to the list. He reminded the Council there needed to be some prep work before funding this position, such as creating districts. This work would take 6-8 months of prep work. Councilor Mackintosh asked if it would make sense to put that expense on the Landlord tax. Mr. Baroody said he did not think that was viable but they could look into it. Mayor Devine said they would need to know what the goal of having the rental inspection program. Ms. Dooley noted that the statue requires identification of where the program would be placed and why. She said it was a good program but you must know what you are doing. Councilor Mackintosh asked if there were other alternative where the City could potentially fund another position in planning that could do enforcement short of a formal inspection rental program. Ms. Dooley stated that under the BPOL ordinance she does not think landlords could be taxed as a business but the landlord license tax was grandfathered. Mr. Whitley reminded the Council there was a property maintenance code official and zoning inspector and they inspect based on complaints. Councilor Duffy said he does not want to allow for rundown properties to be a way of providing affordable housing. He said the City has to find a way to invest in affordable housing. There are parts of the City that have been let go and they were affordable. He said the budget was an amazing document and he was grateful for the work the City Manager and his staff has put into it. 3  Adjournment. There being no further business to come before the Council at this time. Mayor Devine declared the session officially adjourned at 7:27 p.m. ______________________ Tonya B. Lacey, MMC Clerk of Council City of Fredericksburg 4