City Council

AGENDA--CITY COUNCIL---CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00 p.m. CLOSED SESSION 7:30 p.m. REGULAR SESSION Tuesday, November 27, 2012 7:00 p.m. Items to be considered in Closed Session, in accordance with the Code of VA, title 2.2, Chapter 37—Freedom of Information Act, Section 2.2-3711(A)—Closed Meetings, the following: A. Personnel matter as authorized by Subsection 1. B. Consultation with legal counsel and briefings by staff members, attorneys or consultants pertaining to actual or probable litigation, or other specific legal matters requiring the provision of legal advice by such counsel, as authorized by Subsection 7. Invocation – Vice Mayor Kimble Reynolds Pledge to the American Flag 1. Consider approval of Council meeting minutes of November 3, 2012. (2 mins) 2. Recognition of city employees eligible for Service Awards October 1 through December 31, 2012. (2 mins) 3. Presentation from J. R. Powell, 911 Director, regarding staff’s certification for emergency medical dispatching and how this enhancement helps citizens. (10 mins) 4. Consider approval of fire engine purchase. (10 mins) 5. Consider adoption of a resolution establishing rental rates for 8 cubic yard waste containers to be serviced by the City of Martinsville. (10 mins) 6. Consider discussion of 2013 City Legislative Agenda. (10 mins) 7. Consider ratification of the contract for management of the Martinsville Mustangs baseball team for the 2013 baseball season. (10 mins) 8. Consider review and possible approval of fund balance policy. (10 mins) 9. Consider approval of consent agenda. (2 mins) A. Accept & appropriate budget adjustments. 10. Hear overview of Neighborhood Meeting held November 26, 2012. (5 mins) 11. Business from the Floor This section of the Council meeting provides citizens the opportunity to discuss matters, which are not listed on the printed agenda. In that the Council meetings are broadcast on Martinsville Government Television, the City Council is responsible for the content of the programming. Thus, any person wishing to bring a matter to Council’s attention under this Section of the agenda should: (1) come to the podium and state their name and address; (2) state the matter that they wish to discuss and Council action being requested; (3) limit their remarks to five minutes; (4) refrain from making any personal references or accusations of a factually false and/or malicious nature. Persons who violate these guidelines will be ruled out of order by the presiding officer and will be asked to leave the podium. Persons who refuse to comply with the direction of the presiding officer may be removed from the chambers. factually false and/or malicious nature. Persons who violate these guidelines will be ruled out of order by the presiding officer and will be asked to leave the podium. Persons who refuse to comply with the direction of the presiding officer may be removed from the chambers 12. Comments by members of City Council. (5 mins) 13. Comments by City Manager. (5 mins)  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 1. Department: Clerk of Council Issue: Consider approval of minutes of City Council meeting November 3, 2012. Summary: None Attachments: November 3, 2012 Recommendations: Motion to approve minutes as presented November 3, 2012 A special called meeting of the City Council of the City of Martinsville, Virginia was held on Saturday, November 3, 2012, in Council Chambers, Municipal Building at 10:30AM. Council Members present included: Mayor Kim Adkins, Vice Mayor Kimble Reynolds, Jr., Gene Teague, Mark Stroud, Sr., and Danny Turner. Mayor Adkins called the meeting to order. In accordance with Section 2.1-344 (A) of the Code of Virginia (1950, and as amended) and upon a motion by Danny Turner, seconded by Mark Stroud, with the following 5-0 recorded vote: Adkins, aye; Stroud, aye; and Turner, aye, Teague, aye, and Reynolds, aye. Council convened in Closed Session, for the purpose of discussing the following matter: (A) A personnel matter as authorized by Subsection 1 At the conclusion of Closed Session, each returning member of Council certified that (1) only public business matters exempt from open meeting requirements were discussed in said Closed Session; and (2) only those business matters identified in the motion convening the Closed Session were heard, discussed, or considered during Session. On a motion by Danny Turner, seconded by Gene Teague, with the following recorded 4-0 vote: Adkins, aye; Teague, aye; Stroud, aye; and Turner, aye, Council returned to Open Session. (Mr. Reynolds left at 11:30AM and was not a part of the roll call vote out of closed session) No action was taken. There being no further business, the meeting adjourned at 1:00PM. __________________________________ ______________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 2. Department: Human Resources Issue: Recognition of City Employees eligible for Service Awards – October 1 through December 31, 2012 Summary: The Service Award Program is designed to build individual morale and show appreciation to the long-service employee for their faithful service to the City of Martinsville. Attachment: Listing of City Employees who are eligible for the service award for the second quarter of FY 12-13. TO BE READ BY MAYOR. NO ACTION NECESSARY. SERVICE AWARD RECIPIENTS SECOND QUARTER - FISCAL YEAR 12-13 FOR THE PERIOD OF OCTOBER 1 THROUGH DECEMBER 31, 2012 Years of Employee Department Service Eddie Frazier Public Works 40 Bobby Setliff Electric 35 Janet Hiatt Police 30 Cynthia Barbour Registrar 25 Linda Conover Finance 20 Curtis Millner Water Resources 15 Teresa George Sheriff 15 John Kaczor Fire 15 Edward Gauldin Waste Water Plant 10 David Mena Police 10 Timothy Jamison Fire 10 Laura Lawson Utility Billing 5 Bradley Barker Sheriff 5 Elwood Bryant Public Works 5 Mark LaPrade Fire 5  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 3. Department: City Manager Issue: Hear an update from the Martinsville-Henry County 911 Center Director, J. R. Powell on the Emergency Medical Dispatching system. Summary: J. R. Powell, Director of the Martinsville-Henry County 911 Center, will provide an overview of the Emergency Medical Dispatching system and how the staff certifications will be an enhancement to citizens in the community. Attachments: None Recommendations: No action required  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 4. Department: Fire & EMS Department Issue: Consider approval of fire engine purchase. SUMMARY: In previous Council session, approval was given to allow the department to develop specifications for a new fire engine, and obtain pricing. City Council set the maximum amount to be expended at $475,000. Since that time, the Department has developed a set of specifications, met with four separate fire apparatus manufacturers/vendors, and reviewed various payment options. Over the past several months the Department has determined: a) Of the four fire apparatus manufacturers/vendors, only one is able to fully meet (actually exceed) the Department’s fire engine specification. b) There is an existing open contract between that manufacturer/vendor and the City of Suffolk, which allows other Virginia localities to purchase from it, thus eliminating the need to go out to bid. c) The quoted price from that manufacturer/vendor for the new fire engine is $472,583. d) The proposed manufacturer/vendor does offer a discount should the Council opt to 100% prepay for the fire engine, which would make the price for the new fire engine drop to $456,436 (a decrease of $16,147). e) Once a contract is signed it will take approximately seven months to build the fire engine. The City’s Finance Department is in the process of requesting RFPs for financing options for the new fire engine. It is expected to get a rate between 1.75% and 2.0%, over five years with the first payment being differed until after July 1, 2013. Attachments: None Recommendations: The Fire & EMS Department is recommending that City Council give the Department final approval to work with the selected manufacturer/vendor, Purchasing Department and Finance Department to finalize and sign a contract; which takes advantage of the 100% prepayment option, and allows the first payment to the financial institution to not be made until after July 1, 2013. Motion to approve.  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 5. Department: Public Works Issue: Consider adoption of a resolution establishing rental rates for 8 cubic yard waste containers to be serviced by the City of Martinsville. Summary: The City currently owns a number of 8 cubic yard (“dumpster”) waste containers located at various City facilities and buildings, and also provides waste pickup and disposal services for those containers as well as privately owned or leased containers. There also several City/School facilities currently renting such containers from commercial providers. City staff proposes to purchase a small quantity of such containers for use at City buildings and facilities as well as for use at private/commercial facilities in situations where City services are requested. In order to recover costs associated with purchase of the containers, it is necessary that a monthly rental/lease rate for the containers be established. The attached resolution establishes the container rental rates which will be added to the monthly refuse collection bill for services provided by the City. Attachments: Resolution establishing 8 cubic yard waste container rental rates. Recommendations: Motion for adoption of the resolution  RESOLUTION ESTABLISHING MONTHLY RENTAL RATES FOR STANDARD 8 (EIGHT) CUBIC YARD “DUMPSTER-TYPE” WASTE CONTAINERS WHEREAS, the City of Martinsville provides fee-based refuse collection and disposal services for it citizens and businesses; and, WHEREAS, the City provides bulk solid waste collection services for various City buildings and facilities through use of standard 8 cubic yard “dumpster- type” waste containers; and, WHEREAS, there is a demand to expand such collection through the services currently offered by the City’s Refuse Collection Division and in order to do so it is necessary to establish monthly rental rates to recover the cost of such containers, said rate to be applied to the monthly customer bill; now therefore, BE IT RESOLVED, by the City Council of the City of Martinsville, Virginia, in regular session November 27, 2012, that it does hereby establish the following monthly rental rates, said rates to be effective December 1, 2012, Rental of 1 (one) or 2 (two) containers - $26 per container per month Rental of 3 (three) or 4 (four) containers - $23 per container per month Rental of 5 (five) or more containers - $21 per container per month ******* ATTEST: _____________________________________ Brenda Prillaman, Clerk of Council November 27, 2012 Date Adopted  City Council Agenda Summary Date: November 27, 2012 Item No: 6. Department: City Attorney Issue: Discussion of 2013 legislative agenda Summary: The City annually determines its legislative priorities. Attached is 2012’s legislative agenda, which has been amended to show changes in the last year, and Council discussion from the November 13 meeting. Prefiling for specific legislation is December 7, 2012. Most mandates (funded and unfunded) are addressed though modification of the state budget, may not require individual bills, and could be addressed during the General Assembly session. Attachments: amended 2012 Legislative Agenda Recommendations: Discussion, possible amendment and final approval. The City of Martinsville appreciates the efforts its legislators undertake at both the state and federal level on behalf of its citizens. Listed below are the City’s priorities requested of its legislative delegation in 20122013. Virginia General Assembly Transportation 1. In the short term, upgrade those portions of Route 220 overlaying I-73 to interstate standards. Any construction or upgrades to the I-73 corridor should begin on those sections passing through Henry County. 2. Continue to place priority on Route 58 improvements, particularly the section between Stuart and Hillsville, Virginia. 3. Endorse the rapid development of the Trans-Dominion Express, with particular emphasis on extension of passenger rail service to Roanoke. 4. Request that the Trans-Dominion Express be extended to include a spur from Lynchburg to Danville. 5.4. Encourage the enactment of a long-term capital funding formula for the future transportation needs of the Commonwealth. Education 1. City Council endorses the agenda proposed by the Martinsville City School System and also endorses the educational priorities adopted by Henry County, on behalf of its school system. 2. Oppose the imposition of unaided education mandates and in the event of revenue cuts by the Commonwealth opposes targeted cuts by the Commonwealth, instead preferring local decision making authority on where to make any such cuts. 3. Recognizing its potential to promote economic development within our community and region, continue support for the development and funding of the New College Institute; urge that any funding reductions to New College Institute, if considered, be minimized to the greatest extent possible; and support the affiliation of The New College Institute as a branch of a four-year public university. Economic Development 1. Urge the General Assembly to maintain the current moratorium on uranium mining; engaging in uranium mining would result in highly damaging effects on all other economic development efforts in the region, excluding the jobs created by a mine itself. 1.2. Maintain current levels of funding for economic development incentives, including but not limited to the Governor’s Opportunity Fund. 2.3. Enhance the authority granted to localities to address and eliminate blighted properties, and the formation of interstate compacts to allow expedited recourse against out-of-state property owners. 3.4. Continue current funding levels of the Virginia Museum of Natural History. 4.5. Support the development of a multiuse trail traversing Southern Virginia from the Blue Ridge Parkway to the Chesapeake Bay in order to stimulate economic growth and promote regional tourism. 5.6. Include Mayo River State Park on the Commonwealth’s list for future capital funding, as a benefit to the entire southern Virginia region. 6.7. Request enhanced state and federal financial assistance for localities which exceed the average state unemployment rate by 300% or more. 7.8. Request state and federal economic development reimbursements to Martinsville and Henry County for development of the Commonwealth Crossing site.Urge the issuance of necessary permits from the Environmental Protection Agency and Army Corps of Engineers for development of the Commonwealth Crossing Site. 8.9. Support continued tourism awareness initiatives in the Martinsville-Henry County region. Governance 1. Request the appointment of a joint gubernatorial/legislative commission to examine the structure of local government in Virginia, the commission’s mandate to include: a. Examination of local government in the other 49 states for potential adaptation to Virginia. b. Enable cities to expand their revenue base c. Elimination of the “zero-sum” revenue base structure, which creates friction between cities and counties. d. Elimination of redundant services and programs between contiguous cities and counties. 2. Require full funding for HB 599 funds, in fulfillment of the Commonwealth’s commitment to cities in return for their acquiescence in the annexation moratorium. 3. Explore all potential options for the generation of revenue by localities. 4. Elimination of all unfunded mandates from the Commonwealth to localities. 5. Oppose any elimination or alteration of local revenue streams, and specifically oppose any amendment to the current manner in which the Business Occupation and Licensing Tax and the Machinery and Tools Tax are levied. 6. Request at a minimum, level funding for operational requirements of the Henry-Martinsville Department of Social Services. 7. Request that the General Assembly leaves intact the fire programs fund and the rescue squad assistance funds and not use these funds as a way to balance the state budget. 8. Support legislation directing health insurance credit for retirees of local government, constitutional officers, school division employees, and state employees. 9. Request that the Commonwealth fully fund its obligations to constitutional officers. 10. Oppose any attempt to curtail the doctrine of sovereign immunity for localities. 11. Oppose any attempt to permit collective bargaining for state and local government employees. 12. Request that the 2011 legislative redistricting result in at least the same number of legislative districts and members as are currently representing Martinsville and Henry County and that Martinsville and Henry County remain in the Fifth Congressional district. 13.12. Oppose any amendment of the existing burden of proof or process in local tax appeals cases. 14. Oppose passage of state constitutional amendment affecting the use of eminent domain. United States Congress 1. Urge the Federal Highway Commission to adopt the CTB’s designated route for I-73, or alternatively to preserve the current record of decision in the event the CTB’s route is rejected. 2. In the short term, upgrade those portions of Route 220 overlaying I-73 to interstate standards. 3. Oppose any change in the route of the Amtrak Crescent train service. Encourage Amtrak to provide motorcoach transfer service between Danville and Martinsville. 4. Request $3.72M in funds for the redevelopment of brownfields extending from the former Sara Lee site, along Aaron Street, to Rives Road. 5. Request $6.25M in funds for the elimination and redevelopment of blighted areas in the city. 6. Request legislation to provide special federal incentives to businesses locating in regions which have experienced job losses in excess of 5% of the total workforce and/or declines in median incomes since the adoption of NAFTA, WTO or GATT. Target such areas for increased federal funding in education or workforce retraining. 7. Extend high speed broadband service throughout southern Virginia. 8. Request enhanced state and federal financial assistance for localities which exceed the average state unemployment rate by 300% or more. 2 10. Request state and federal economic development reimbursements to Martinsville and Henry County for development of the Commonwealth Crossing site. Urge the issuance of necessary permits from the Environmental Protection Agency and Army Corps of Engineers for development of the Commonwealth Crossing Site. 9. Staff Designations City Council empowers the following staff members to speak on its behalf and in its best interests to the General Assembly, its members and committees: City Attorney Eric Monday City Manager Clarence Monday Other department heads as appointed by the City Manager 3  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 7. Department: City Manager Issue: Consider ratification of the contract for management of the Martinsville Mustangs baseball team for the 2013 baseball season. Summary: At the November 13, 2012 Council meeting, staff presented a recommendation to contract for management services for the Martinsville Mustangs baseball team for the 2013 season with Gastonia, NC –based Team Cole & Associates. The main points of the proposed contractual arrangement were discussed although a final document was not available at the meeting. Council voted to approve the contractual arrangement, authorized the Interim City Manager to finalize negotiations and execute the contract, but requested the final contract document be presented to Council at a later meeting for ratification. The document has been finalized and is attached for Council’s review. Attachments: Contract for management services for the Martinsville Mustangs baseball team for the 2013 season. Recommendations: Motion to ratify the attached contract THIS CONTRACT, made and entered into this the _______ day of _______, 2012 and between the City of Martinsville, Virginia, a municipal corporation created and existing under and by virtue of the laws of the State of Virginia (hereinafter referred to as “City”), party of the first part, and Team Cole & Associates, Gastonia, North Carolina, (“Contractor”) party of the second part; WITNESSETH: THAT, WHEREAS the City caused to be prepared a Request For Proposals for private management options for the Martinsville Mustangs baseball team for the 2013 season, and the party of the second part did on the 3rd of October, 2012, file with the party of the first part a copy of its Proposal at the terms therein fully stated and set forth; and, WHEREAS, the City desires to contract for management services for the Martinsville Mustangs baseball team for the 2013 baseball season, NOW, THEREFORE, that for and inconsideration of the mutual and respective covenants and agreements contained herein and made with respect to the performance of the services by the Contractor, the parties to this Agreement hereby agree as follows: 1. Term and Renewals – The term of this Agreement shall generally cover the 2013 baseball season, specifically commencing with the date of execution of this Agreement and ending August 31, 2013. An option for a one-year (1 year) renewal of this contract for the 2014 baseball season is included subject to (1) mutual agreement by both parties to the renewal, including any changes to conditions of the contract; and (2) approval of continued funding by the City of Martinsville. 2. Agreement Protections for the City – Under the terms of this Agreement, the Contractor will not have the opportunity to move the team to another location. The Contractor will be responsible for reimbursing the City for amounts paid under this Agreement if Contractor’s responsibilities under Section 7 are breached. 3. Compensation – The City shall compensate the Contractor under the terms of this Agreement a total of $50,000 for the 2013 season, with 5 monthly $10,000 payments occurring on December 1, 2012; January 1, 2013; February 1, 2013; March 1, 2013, and April 1, 2013. 4. Sale of Team – If the City sells the team while under contract with Team Cole & Associates, Team Cole will receive 30% of the net gain in value after the City’s investment in the team is recovered. 5. Use of Facility – Use of Hooker Field under this Agreement shall be for Martinsville Mustangs’ baseball. Contractor is permitted to use the facility for events/activities to help defray team costs subject to (1) approval of any such events through the City’s Special Event application process, and (2) approval by the City to ensure no conflicts with other facility usages. It should be noted that Martinsville High School, Patrick Henry Community College, and the local American Legion team currently use Hooker Field for their home games and in some cases, practices. The City currently has a contract for tournaments scheduled at Hooker Field in early May in both 2013 and 2014 with the National Club Baseball Association and retains the right to seek and/or schedule other events. 6. This Agreement shall be interpreted and governed under the laws of the Commonwealth of Virginia. In the event any portion of it is found to be unenforceable, such portion shall be severable and the remainder shall continue in full force and effect. In the event of any disagreement between the parties as to enforcement or interpretation of this Agreement, the parties shall first attempt to resolve their dispute through mediation. Any litigation arising from this Agreement shall be venued in Martinsville, Virginia. 7. Under this Agreement, the City will: A. Provide maintenance of the facility, including but not limited to mowing; turf maintenance/care; preparation of the field for Mustangs home games; maintenance of the sprinkler system; maintenance of field lighting; scoreboard; painting when done as normal maintenance; maintenance of heating, cooling, plumbing, and electrical systems in the clubhouse, restrooms, and concession buildings; maintenance and cleanup of dugouts, and any other usual and customary maintenance that would be considered as regular facility maintenance. B. Provide and make available use of the various buildings located at the Hooker Field facility. The original locker room building is used during the spring and fall by Patrick Henry Community College. C. Provide City utilities for the facility – water, sewer, electric, refuse collection, telephone, and Internet. D. Maintain insurance on the facility E. Continue to provide use of parking facilities currently used for Mustangs’ games. F. Provide the existing inventory of team uniforms for use during the 2013 (and future) 2  seasons. If the contract is terminated/not renewed at a future date, the contractor will return to the City a similar inventory of uniforms. 8. Under this Agreement, the Contractor will: A. Agree to operate the Martinsville Mustangs baseball team as a team affiliated with the Coastal Plain League, in accordance with all CPL requirements. B. Hire all game day and related staff as necessary including but not limited to the general manager, coaching staff, concession workers, ticket personnel, ushers, announcers, press box personnel as needed to meet CPL requirements, and other personnel as needed. C. Be responsible for payment of league dues and umpire fees, handle team travel arrangements and related expenses, meal costs, arrangement of housing for players and/or staff, purchasing/providing game day supplies including bats, balls, uniforms, playing equipment, purchase of concession and souvenir supplies, clean up of concession and/or game related trash and debris from the seating and surrounding areas; tickets, marketing, advertising, promotions, etc. D. Provide and maintain general liability insurance coverage related to any events (including games) held, sponsored, or organized by the contractor at the facility. The City shall be furnished a COI and the City shall be endorsed to the insurance policy as an additional insured prior to any such events. E. Be responsible for any permits (ABC, Health, Business License, etc.) and/or licensing requirements related to operation of the Martinsville Mustangs. F. Have the opportunity to rebrand, change logos currently in use, change uniforms, offer new/different merchandise, etc. The City will be allowed input in any such changes. IN WITNESS WHEREOF, the said City of Martinsville, party of the first part, has caused Agreement to be executed in its name by its City Manager; and the said Team Cole & Associates, party of the second part, has caused this Agreement to be executed in its name by its President; this the day and year first above written. CITY OF MARTINSVILLE, VIRGINIA TEAM COLE & ASSOCIATES BY:______________________________ _________________________________ City Manager President 3  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 8. Department: Finance Issue: Consider review and possible approval of Fund Balance Policy Summary: FUND BALANCE POLICY The City Council is dedicated to maintaining an appropriate level of fund balance sufficient to mitigate current and future financial risks and to ensure stable tax rates; and, therefore, formally establishes this policy for the City’s Fund Balance. This policy also authorizes and directs the Finance director to prepare financial reports which accurately categorize fund balance as required by Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Adoption of this policy enhances the usefulness of fund balance information through clearer fund balance classifications that can be more consistently applied and by clarifying existing governmental fund type designations. There are some differences between fund balance and liquidity (cash-on-hand) because some assets reported in the governmental funds inherently cannot be spent – the nonspendable portion of fund balance. If resources are limited in how they can be spent due to externally enforceable legal restrictions, they roll into fund balance as restricted. If the governing body limits the use of fund balance and that limitation can only be removed by that same governing body through similar action, those fund balance resources are considered committed. If a government has intentions for certain resources, but they are not externally restricted or committed through formal governing body action, those resources are considered assigned fund balance. If the general fund has net resources in excess of the other four categories that surplus is considered unassigned. Examples for each category are provided on the annotated version attached. Attachments: Fund Balance Policy.doc Fund Balance Policy annotated version for discussion.doc Recommendations: for review and comments by Council and possible consideration of adoption of fund balance policy.  City of Martinsville, Virginia Fund Balance Policy I. Purpose The City Council of the City of Martinsville, Virginia is dedicated to maintaining an appropriate level of fund balance sufficient to mitigate current and future financial risks and to ensure stable tax rates; and, therefore, formally establishes this policy for the City’s Fund Balance. This policy also authorizes and directs the Finance Director to prepare financial reports which accurately categorize fund balance as required by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. II. Components of Fund Balance Fund balance is the difference between the assets and liabilities reported in a governmental fund; it is not to be confused with cash-on-hand. The following five fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which the resources can be used: • Nonspendable Fund Balance – amounts that are not in spendable form (such as inventory, prepaids, and long-term receivables) or are required to be maintained intact (endowment type funds); • Restricted Fund Balance – amounts constrained to specific purposes by their providers (such as grantors, creditors, and higher levels of government), through constitutional provisions, or by enabling legislation; • Committed Fund Balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint; • Assigned Fund Balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority; residual amounts in governmental funds other than the general fund; appropriation of existing fund balance; • Unassigned Fund Balance – amounts that are available for any purpose; positive amounts are only reported in the general fund. III. Committed Fund Balance Policy The City Council is the City’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a motion approved by the City Council. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. IV. Assigned Fund Balance Policy The City Council has authorized the Finance Director as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy. V. Minimum Unassigned Fund Balance Policy The City will attempt to maintain an unassigned General fund balance in the general fund equal to or greater than 10% of operating expenditures. VI. Resource Flow Policy When fund balance resources are available for a specific purpose in more than one classification, it is the City’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. VII. Consolidation of Component Unit Year-End Fund Balance Based on Budget Code in the Code of Virginia under section 15.2-2506 stating, “No money shall be paid out or become available to be paid out for any contemplated expenditure unless and until there has first been made an annual, semiannual, quarterly, or monthly appropriation for such contemplated expenditure by the governing body…”, all appropriations lapse as of June 30 of each fiscal year. Prior to the completion of the annual audit, unspent funds remaining in the Component Unit – School Fund shall revert back to the General Fund. As with all City Funds, these funds may be re-appropriated for the following year, as approved by City Council.  City of Martinsville, Virginia Fund Balance Policy *** ANNOTATED VERSION FOR DISCUSSION PURPOSES *** I. Purpose The City Council of the City of Martinsville, Virginia is dedicated to maintaining an appropriate level of fund balance sufficient to mitigate current and future financial risks and to ensure stable tax rates; and, therefore, formally establishes this policy for the City’s Fund Balance. This policy also authorizes and directs the Finance Director to prepare financial reports which accurately categorize fund balance as required by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. II. Components of Fund Balance Fund balance is the difference between the assets and liabilities reported in a governmental fund; it is not to be confused with cash-on-hand. The following five fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which the resources can be used: • Nonspendable Fund Balance – amounts that are not in spendable form (such as inventory, prepaids, and long-term receivables); or are required to be maintained intact (endowment type funds); ***examples: pre-paid taxes; the value of items held in the inventory at the shop; long-term loans/notes receivable*** • Restricted Fund Balance – amounts constrained to specific purposes by their providers (such as grantors, creditors, and higher levels of government), through constitutional provisions, or by enabling legislation; ***examples: Bonds for School Construction; most grant proceeds; meals taxes; voter- approved constraints*** • Committed Fund Balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint; ***example: funds committed to the Commonwealth Crossing Business Center – authorized by an act of City Council; encumbrances for contracts approved by Council*** • Assigned Fund Balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or high-level body to which the governing body delegates the authority; residual amounts in governmental funds other than the general fund; appropriation of existing fund balance; ***examples: budgeted use of fund balance in order to balance the budget; mid-year adjustments to budget: unanticipated vehicle replacement; re-appropriations; purchase order encumbrances. Essentially what is now designated.*** • Unassigned Fund Balance – amounts that are available for any purpose; positive amounts are only reported in the general fund. *** serves as a measure of current available resources, and is essential to mitigate current and future risks*** III. Committed Fund Balance Policy The City Council is the City’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a motion approved by the City Council. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. IV. Assigned Fund Balance Policy The City Council has authorized the Finance Director as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy. V. Minimum Unassigned Fund Balance Policy The City will attempt to maintain an unassigned General fund balance in the general fund equal to or greater than 10% of operating expenditures. *** 10% has been inserted for discussion purposes. City Council would determine the actual figure to be inserted here. Based on the year-end FY12 budget, 10% of General Fund operating expenses would be $2,990,866 (29,908,658 X 10%); 5% = $1,495,483; 15% = $4,486,299; should be no less than one to two months of regular general fund operating expenditures. Monthly average for FY12 = $2,174,019. VI. Resource Flow Policy When fund balance resources are available for a specific purpose in more than one classification, it is the City’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. VII. Consolidation of Component Unit Year-End Fund Balance Based on Budget Code in the Code of Virginia under section 15.2-2506 stating, “No money shall be paid out or become available to be paid out for any contemplated expenditure unless and until there has first been made an annual, semiannual, quarterly, or monthly appropriation for such contemplated expenditure by the governing body…”, all appropriations lapse as of June 30 of each fiscal year. Prior to the completion of the annual audit, unspent funds remaining in the Component Unit – School Fund shall revert back to the General Fund. As with all City Funds, these funds may be re-appropriated for the following year, as approved by City Council. *** These funds have not been reverting back to the City general fund for years and the School has not exceeded spending of the annual appropriations; the result is the fund balance is growing. Under 15.2-2506, the School’s operating fund balance should be essentially reverted back to the City at the end of each fiscal year. City Council could establish a balance to remain designated specifically for the School‘s fund balance, such as $250,000 for future school expenditures, or could automatically re-appropriate an established amount each year.  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 9. Department: Finance Issue: Consider approval of consent agenda Summary: The attachments amend the FY13 Budgets with appropriations in the following funds: FY13: General Fund: $6,059 - Recovered Costs Based on the Virginia General Assembly’s House Appropriations, localities are required to pay a portion of the mandated 3% bonus for Health Department employees to be disbursed in December. Fortunately, the City will be receiving a FY12 year-end settlement refund of $6,402.34 in February. Our share of the 3% bonus is $6,058.90. Attachments: Consent Agenda - 11-27-12.xls Health Dept Bonus Letter.pdf Recommendations: Motion to approve  BUDGET ADDITIONS FOR 11/27/12 ORG OBJECT DESCRIPTION DEBIT CREDIT FY13 General Fund: 01100909 490105 Recovered Costs - Health Department 6,059 01816244 505676 Contributions - Public Health Center 6,059 Amount required to fund 3% Bonus for Health Department Employees as mandated by the Commonwealth. Total General Fund: 6,059 6,059  City Council Agenda Summary Meeting Date: November 27, 2012 Item No: 10. Department: City Council Issue: Hear an overview of November 26, 2012 Council Neighborhood Meeting. Summary: Mayor Kim Adkins will give an overview of citizen input received at the November 26, 2012 Southside Neighborhood Meeting held at Wesley Memorial Methodist Church. Attachments: None Recommendations: For information.