City Council

AGENDA--CITY COUNCIL -- CITY OF MARTINSVILLE, VIRGINIA Council Chambers – Municipal Building 7:00 pm CLOSED SESSION 7:30 pm regular session Tuesday, April 23, 2013 7:00--Closed Session 1. Items to be considered in Closed Session, in accordance with the Code of Virginia, Title 2.2, Chapter 37—Freedom of Information Act, Section 2.2-3711(A)—Closed Meetings, the following: A. Appointments to boards and commissions as authorized by Subsection 1. B. Discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body. C. 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. 7:30—Regular Session Invocation & Pledge to the American Flag– Vice Mayor Gene Teague 1. Hear update from recent Neighborhood meeting at Albert Harris School on April 8, 2013. (5 mins) 2. Consider approval of Council meeting minutes of March 12, 2013. (2 mins) 3. Presentation of proclamation regarding National Correctional Officers week. (2 mins) 4. Hear an update and presentation from Piedmont Governor’s School regarding citizen survey project. (40 mins) 5. Conduct a public hearing regarding tax exemption request and consider action. (10 mins) 6. Hear an update on the Martinsville Mustangs from Jesse Cole of Team Cole & Associates on activities related to 2013 season. (15 mins) 7. Consider approval of the Anti-Displacement Resolution required by DHCD for the Community Development Block Grant as a part of pre-contract work. (10 mins) 8. Consider adopting resolution urging maintaining Tax Exempt Status of Municipal Bonds. (10 mins) 9. Consider setting a public hearing for the FY14 Budget. (5 mins) 10. Consider approval of consent agenda. (2 mins) 11. Hear finance report. (10 mins) 12. 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 name and address; (2) state the matter that they wish to discuss and what action they would like for Council to take; (3) limit 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. 13. Comments by members of City Council. (5 minutes) 14. Comments by City Manager. (5 minutes)  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 1. Department: Mayor Issue: Hear an update from Council’s recent Neighborhood meeting, April 8, 2013, held at Albert Harris School. Summary: Mayor Adkins will give this update Attachments: email from Lawrence Mitchell to Mayor Adkins Recommendations: For information. From: "lawr.mitch" <mmlawr@zoho.com> To: <kadkins@ci.martinsville.va.us>, Cc: <gteague@ci.martinsville.va.us> Date: 04/11/2013 10:50 AM Subject: Citizen Complaint TO: Kim Adkins, Mayor, City of Martinsville RE: Citizen Complaint DATE: April 11, 2013 Dear Ms. Adkins, This complaint is in reference to the April 8th and 9th meeting of the City Council. First, I would like to say how disappointing it was to view the Tuesday meeting on Cable TV and hear how you misrepresented and omitted issues I spoke about at the Albert Harris School. During your recap of the Albert Harris meeting you mentioned my name. I have no problem with that since I spoke in public. But to not properly characterize what I said is another issue. This is why I am filing an official complaint. First, at the Tuesday official meeting you mentioned that I was talking about 'down power lines' which was wrong. I specifically said, hanging telephone lines. Councilman Stroud said at the meeting that this was a telephone company complaint. But this is not completely true. Yes, the lines belong to the telephone company, but the poles that they hang on belong to the city. The other issue was the council's failure to give the name of individuals who represent themselves as community leaders and your council member, Hodge, did not give an adequate answer why these people names are kept confidential. If these people are giving the city council information that represents matters that affect the community at large, these individuals need to be identified to the community. Also, when did Ms. Hodge become the West End community representative? The other issues was the access of Beaver Street to Fayette Street and Memorial Blvd. These access points need to be improved for the safety of the community. The city should place a meter car counter on the street to record the number of cars that use that street. This will give the city an accurate record of how much traffic travels along that street. At the corner of Second Street and 'B' Street is a corner of Academy Place. On some rainy days there is a run off coming out of the ground. The Academy Place site was a toxic waste dump area. The city should conduct a test on the run off to see if it is toxic. Or contact the EPA to do a study. The other issue was the resurfacing of Second Street. Also, these complaints are not solely my own but issues that are of concerned to the community. Each of these items should be addressed individually and reported back to the community. Sincerely, Lawrence Mitchell cc: Gene Teague, Vice Mayor  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 2. Department: Clerk of Council Issue: Consider approval of minutes of City Council meeting March 12, 2013. Summary: None Attachments: March 12, 2013 Recommendations: Motion to approve minutes as presented March 12, 2013 The regular meeting of the Council of the City of Martinsville, Virginia, was held on March 12, 2013, in Council Chambers, Municipal Building, at 7:30 PM, Closed Session beginning at 7:00PM, with Mayor Kim Adkins presiding. Council Members present included: Mayor Kim Adkins, Vice Mayor Gene Teague, Mark Stroud, Danny Turner and Sharon Brooks Hodge. Staff present included: Leon Towarnicki, Interim City Manager, Brenda Prillaman, Linda Conover, Dennis Bowles, Wayne Knox, and Ruth Easley. City Attorney Eric Monday was absent. Closed Session: Mayor Adkins called the meeting to order and advised Council will go into Closed Session. 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 Sharon Brooks Hodge, with the following 5-0 recorded vote: Adkins, aye; Teague, aye; Stroud, aye; Hodge, aye; and Turner, aye, Council convened in Closed Session, for the purpose of discussing the following matters: (A) A prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facilities in the community as authorized by Subsection 5. (B) Discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body as authorized by Subsection 29. (C) 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 Mark Stroud, seconded by Danny Turner, with the following recorded 5-0 vote: Adkins, aye; Hodge aye; Teague, aye; Stroud, aye; and Turner, aye, Council returned to Open Session. No action was taken Regular Session: Following the invocation by Vice Mayor Gene Teague and Pledge to the American Flag, the Mayor welcomed everyone to the meeting and advised City Council will recess and convene as Martinsville Redevelopment & Housing Authority. Martinsville Redevelopment & Housing Authority updated Section 8 Administrative Plan-public hearing and approve on first reading: Wayne Knox briefed the Authority members with the following information: In order to fully comply with the Title 24 of the Code of Federal Regulations, a complete rewrite of the Administrative Plan for our Section 8 Housing Choice Voucher was conducted with the assistance of representatives of the HUD Office, Richmond. Because this action is a significant amendment to our existing administrative plan, it is necessary that we hold a public hearing and have a required 30–day comment period for any additional public input after the Authority’s approval. The Public Hearing was advertised in the Martinsville Bulletin before being held on March 12. MRHA Chairman Kim Adkins opened the public hearing. There were no public comments and MRHA Chairman Kim Adkins closed the public hearing. On a motion by Gene Teague, seconded by Sharon Brooks Hodge, with a 5-0 vote, the Authority approved, on first reading, the amended Administrative Plan and noted the required 30 day comment period for additional input will be held prior to submitting to HUD for final approval. On a motion by Gene Teague, seconded by Mark Stroud, the MRHA adjourned. Martinsville City Council regular meeting then re-convened. March 12, 2013 Minutes: On a motion by Gene Teague, seconded by Sharon Brooks Hodge, with a 5-0 vote, Council approved the minutes of January 22, 2013, January 30, 2013, February 11, 2013 tour and February 11, 2013 Neighborhood Council meetings. MHC Economic Development update on retail-Mark Heath presented the following information regarding EDC efforts in retail development: March 12, 2013 Staff update on City’s procedure handling after hours calls-Utilities Director, Dennis Bowles, presented an overview of the city’s call system for handling after-hours/emergency calls pointing out that Answer Connect is currently being used as it was the most cost effective way to outsource the task when it became an issue during the citywide power outage several months back. After Council discussion, staff was directed to take steps to investigate local vendors that could provide the service needed. Review proposed write off policies- Interim City Manager briefed Council on the background and proposed write off policies for utility bills, general/miscellaneous bills, and business licenses. After lengthy Council discussion, staff was directed to bring back a firm policy to Council to assure that taxpaying citizens are not subsidizing those that are not paying their bills. Council indicated they would like to know the exact amounts of uncollected bills for budget discussions. Mr. Towarnicki advised Council that a policy will be formulated with a clear cut implementation plan for Council approval in the next few weeks. Consent agenda: On a motion by Gene Teague, seconded by Danny Turner, with a 5-0 vote, BUDGET ADDITIONS FOR 3/12/13 ORG OBJECT DESCRIPTION DEBIT CREDIT FY13 General Fund: 01101918 443156 Grants - State - VDEQ Environmental Site Assessment 17,800 01812242 503143 Misc Expense - Environmental Evaluations 17,800 Grant funding 01101917 442810 Categorical Other - State - Highway Projects 458 01413151 503140 Thorofare Construction - Prof.Serv. - Utility Relocation 458 Reimbursement-Liberty St Project 01100909 490104 Advance/Recovered Costs 7,010 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 5,100 01331108 502100 Sheriff/Corrections - Social Security 316 01331108 502110 Sheriff/Corrections - Medicare 74 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 1,020 01331110 506200 Sheriff/Annex - Prisoner Allowance 500 Reimbursement from Henry County for litter pickup - Oct 2012-Jan 2013 01100909 490104 Advance/Recovered Costs 31,131 01127060 503190 Garage - Prof. Service - Bldg/Grnd Maintenance 970 01127060 506007 Garage - Repair & Maintenance Supplies 3,342 01413147 506010 Signals - Traffic Signal Maintenance 22,069 01126055 503320 Info Services - Maint. Service Contracts 4,750 Insurance Reimbursement from Derecho expenses 01100909 490801 Recovered Costs - Senior Citizens 2,293 01714212 506016 Senior Citizens - Program Supplies 2,293 Reimbursements from trips and Bingo 01100908 480420 Donations - Senior Citizens 450 01714212 506016 Senior Citizens - Program Supplies 450 Donations for Health Fair 01102926 436430 Categorical Federal - SCAAP Funds 1,236 1331108 508220 Sheriff - Corrections - Physical Plant Expansion 1,236 SCAAP Funding Total General Fund: 59,142 59,142 Water Fund: 12100909 490104 Advance/Recovered Costs 638 12541311 506007 Water Plant - Repairs & Maintenance 638 Insurance Reimbursement from Derecho expenses Total Water Fund: 638 638 Capital Reserve Fund: 16100909 490104 Advance/Recovered Costs 7,185 16576366 508055 ADP Equipment - Information Services 7,185 Insurance Reimbursement from Derecho expenses Total Capital Reserve Fund: 7,185 7,185 Business from floor: Ural Harris, 217 Stuart St.-concerns about utility cutoffs, Commonwealth Crossing expenses, Henry Hotel/Phoenix CDC issues, and need to cut EDC funding; Rick Ward, new director at Blue Regional Library introduced himself to Council; Chad Martin-invited Council to participate in PHCC event regarding safe schools. March 12, 2013 Council comments: Hodge-surprised there is a not a policy already in place for delinquent accounts that have reached the statute of limitations; Stroud-encouraged citizens to check on neighbors. Interim City Manager comments: Mr. Towarnicki reminded Council of the capital worksession set for March 20, 2013 at 6pm. There being no further business, the meeting adjourned at 9:10 pm. _______________________________ __________________________ Brenda Prillaman Kim Adkins Clerk of Council Mayor  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 3. Department: City Manager Issue: Presentation of proclamation regarding National Correctional Officers and Employees Week. Summary: City Sheriff Steve Draper will be present to accept the proclamation. Attachments: Proclamation Recommendations: Presentation only  Proclamation National Correctional Officers and Employees Week WHEREAS, one of the primary goals for the City of Martinsville is to provide its citizens with an effective judicial system that concentrates on quality for all of our citizens; and WHEREAS, the City of Martinsville’s dedicated correctional officers are essential to the success of our judicial process, and our correctional officers’ work includes daily exposure to a hostile environment with many of the most dangerous individuals in our society; and WHEREAS, Correctional Officers contribute daily to the protection of our citizens by housing dangerous felons in a humane environment, often at great risk to the officers’ own protection; and WHEREAS, the City of Martinsville is pleased to join with officials and distinguished correctional officers across America to recognize the achievements of these dedicated individuals. We are indebted to the International Association of Correctional Officers for continuing to emphasize the accomplishments of correctional officers worldwide; now, therefore FOR THESE SIGNIFICANT REASONS, I, KIM ADKINS, Mayor of the City of Martinsville, Virginia, do hereby proclaim May 5-May 11, 2013, “NATIONAL CORRECTIONAL OFFICERS AND EMPLOYEES WEEK” in the City of Martinsville and commend this observance to all of our citizens. Kim Adkins Mayor  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 4. Department: City Council Issue: Hear a presentation from Piedmont Governor’s School regarding citizen survey project Summary: Dr. Nina Huff and her students at Piedmont Governor’s Schools will make a presentation regarding the recent citizen survey project. Attachments: Presentation to be given at the meeting. Recommendations: For information only.  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 5. Department: City Manager, City Attorney, Commissioner of the Revenue Issue: Conduct a public hearing required under the exemption ordinance enacted in January 2007 for an organization requesting local tax exemption and consider granting the requested exemption Summary: Under the provisions of the Exemption Ordinance enacted by council in January 2007, any entity that does not clearly fall into any exemption category granted by the Code of Virginia must request an exemption approval from the city council in the form of an exemption ordinance. In order for the exemption request to be considered by council as part of the annual budget deliberations, the requesting entity must have submitted an exemption application to the Commissioner of the Revenue by November 1, 2012. The Commissioner of the Revenue referred the application received to the City Manager along with a report of the revenue impact that any possible exemption may have. The City Manager appointed a review committee consisting of himself, Mayor Adkins, the City Commissioner of the Revenue, the City Treasurer, and an accountant from the Finance Department to review the application received. Step, Inc. is the only organization that submitted an application for a local exemption designation. Attachments: Spreadsheet- Revenue Impact & Review Committee Recommendation Exemption Definitions Review Criteria Draft Sample Ordinance Recommendation: If exemption is granted, a motion to approve the ordinance, on first reading, specifying exemption designation, with a roll call vote.  Pers Prop Assessed Rev Impact (Pers Real Estate Other City Organization Value Prop) Rev Impact (Real Estate) Assessed Value Assistance Exemption Requested Exemption Category Requested Step, Inc. $1,382 $31.79 Does not own real property. $0 Real & Personal Property Other -- Community Action Agency This is not a qualifying statutory TOTALS $1,382 $31.79 $0.00 $0 $0 exemption. Council could determine that the organization is benevolent or charitable and exempt by designation.  Exemption Definitions As Defined by Va. Courts Benevolent – Philanthropic; humane; having a desire or purpose to do good to men; intended for conferring benefits, rather than for gain or profit. (Manassas Lodge No. 1380, Loyal Order of Moose, Inc. v. County of Prince William, 218 Va. 220, 237 S.E. 2d 102 (1977)) Charitable – Liberal in benefactions to the poor; beneficent. (City of Richmond v. United Givers Fund of Richmond, Henrico & Chesterfield, Inc., 205 Va. 432, 137 S.E. 2d 876 (1964)) NOTE: A charitable organization should be organized and conducted to perform some service of public good or welfare based on the above mentioned court cases. As Defined by Va. Constitution Article X §6 Educational Exemption – Limited to institution of learning operated not for profit, provided the property is used for literary, scientific, or educational purposes or purposes incidental thereto. As Defined by Webster’s New Collegiate Dictionary Cultural – Of or relating to enlightenment and excellence of taste acquired by intellectual and aesthetic training; acquaintance with and taste in fine arts, humanities, and broad aspects of science as distinguished from vocational and technical skills. Educational – The field of study that deals mainly with methods of teaching and learning in schools. Historical – Of or relating to a branch of knowledge that records and explains past events. Museum – An institution devoted to the procurement, care, study, and display of objects of lasting interest or value; a place where objects are exhibited. Patriotic – Befitting or characteristic of a patriot (one who loves his country and zealously supports its authority and interests.)  EXEMPTION CRITERIA TO CONSIDER Pursuant to Code of Virginia §58.1-3651, the local governing body shall consider the following questions before granting an exemption from local taxation to any nonprofit organizations: 1. Whether the organization is exempt from taxation pursuant to § 501 (c) of the Internal Revenue Code of 1954; 2. Whether a current annual alcoholic beverage license for serving alcoholic beverages has been issued by the Virginia Alcoholic Beverage Control Board to such organization, for use on such property; 3. Whether any director, officer, or employee of the organization is paid compensation in excess of a reasonable allowance for salaries or other compensation for personal services which such director, officer, or employee actually renders; 4. Whether any part of the net earnings of such organization inures to the benefit of any individual, and whether any significant portion of the service provided by such organization is generated by funds received from donations, contributions, or local, state or federal grants. As used in this subsection, donations shall include the providing of personal services or the contribution of in-kind or other material services; 5. Whether the organization provides services for the common good of the public; 6. Whether a substantial part of the activities of the organization involves carrying on propaganda, or otherwise attempting to influence legislation and whether the organization participates in, or intervenes in, any political campaign on behalf of any candidate for public office; 7. The revenue impact to the locality and its taxpayers of exempting the property; and 8. Any other criteria, facts and circumstances that the governing body deems pertinent to the adoption of such ordinance.  ORDINANCE 2013-______ BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in regular session held on April 23, 2013 and pursuant to Section 58.1-3651 of the Code of Virginia, that Section 21-12 of the City Code be amended to add a subsection [insert alphabetical listing] as follows: [insert alphabetical listing]. Taxation exemption for [name of entity] After convening a duly advertised public hearing and considering the factors set forth in Code of Virginia § 58.1-3651(B), the City Council of Martinsville Virginia hereby ordains the following: 1. The [name of entity], a nonprofit organization, is hereby classified and designated as a [(designate which) religious, charitable, patriotic, historical, benevolent, cultural, or public park and playground purposes] organization within the context of Section 6(a)(6) of Article X of the Constitution of Virginia. 2. [real and/or personal] property owned by [name of entity], and used exclusively for educational, benevolent and charitable purposes on a nonprofit basis, as set forth in subsection A. of this section, is hereby determined to be exempt from local [real and/or personal] property taxation. 3. Continuance of the exemption shall be contingent on the continued use of the property in accordance with the purpose for which the organization is classified or designated. Attest: __________________________________ Brenda Prillaman, Clerk of Council __________________________________ Date Adopted __________________________________ Date Effective  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 6. Department: City Manager Issue: Hear an update on the Martinsville Mustangs from Jesse Cole of Team Cole & Associates on activities related to the 2013 season. Summary: Jesse Cole of Team Cole & Associates will give an update and answer questions regarding the upcoming 2013 baseball season. Attachments: None Recommendations: For information purposes  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 7. Department: Community Development Issue: Consider approval of the Anti-Displacement Resolution required by DHCD for the Community Development Block Grant as part of pre-contract work. Summary: The City of Martinsville is working closely with New College Foundation and the French Connection on pre-contract work for the Community Development Block Grant for New College Expansion. This resolution is part of the required documentation for this work. The required process involves the approval of the resolution to be completed to follow steps that are in line with federal and state protocol. This same resolution was approved in the Cherry Street CDBG and Martinsville Business District Revitalization CDBG Project as well. Community Development recommends that City Council approve the resolution, which will enable us to be compliant with DHCD paperwork and move the grant process forward. The NCI Community Development Block Grant – New College Expansion – Building on Baldwin project will be a revitalization catalyst in the Martinsville community Attachments: • Resolution: Martinsville Residential Anti-Displacement Certification (Appendix 8) Recommendations: Motion to approve.  Residential Anti-Displacement and Relocation Assistance Plan Certification City of Martinsville The City of Martinsville will replace all occupied and vacant occupiable low/moderate-income dwelling units demolished or converted to a use other than as low/moderate income dwelling unit as a direct result of activities assisted with funds provided under the Housing and Community Development Act of 1974, as amended. All replacement housing will be provided within three (3) years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, the City of Martinsville will make public and advise the state that it is undertaking such an activity and will submit to the state, in writing, information that identifies: 1. A description of the proposed assisted activity; 2. The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low/moderate-income dwelling units as a direct result of the assisted activity; 3. A time schedule for the commencement and completion of the demolition or conversion; 4. The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units; 5. The source of funding and a time schedule for the provision of replacement dwelling units; 6. The basis for concluding that each replacement dwelling unit will remain a low/moderate-income dwelling unit for at least 10 years from the date of initial occupancy; and 7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units is consistent with the housing needs of low- and moderate- income households in the jurisdiction. The City of Martinsville will provide relocation assistance to each low/moderate – income household displace by the demolition of housing or by the direct result of assisted activities. Such assistance shall be that provided under Section 104 (d) of the Housing and Community Development Act of 1974, as amended, or the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. The City of Martinsville FY 13 New College Institute Expansion – Building on Baldwin’s project activities as planned will not cause any displacement from or conversion of occupiable structures. The City of Martinsville will work with the grant management staff, engineers, project area residents, and the Department of Housing and Community Development to insure that any changes in project activities do not cause any displacement from or conversion of occupiable structures. In all cases, an occupiable structure will be defined as a dwelling that meets local building codes or a dwelling that can be rehabilitated to meet code for $25,000 or less. _________________________________ Signature of Authorized Official April 23, 2013 Date Adopted Attest: ________________________________ Clerk of Council  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 8. Department: Electric Issue: Consider adopting resolution urging maintaining Tax Exempt Status of Municipal Bonds Summary: Congress and the Administration are considering eliminating or altering the ability of state and local governments to issue tax- exempt financing in the form of municipal bonds. This form of financing is critical to providing infrastructure for our community and throughout the nation. Tax- exempt municipal bonds fund public utility projects such as construction of power generation facilities, improvements to public water and sewer infrastructure, public schools, roads etc. Some potential threats to tax-exempt financing include: • Changing the tax-exempt status of municipal bond interest (including taxing the interest earned by certain classes of taxpayers); • Issuing municipal bonds as tax-credit bonds, instead of tax-exempt bonds; • Replacing the muni-tax exemption with a direct subsidy to the issuer; • Narrowing the scope of projects eligible for tax-exempt financing; or • Changing overall tax rates or tax treatment of investment income (could make tax-exempt investments less attractive). American Municipal Power Inc. along with Blue Ridge Power Agency encourages the passage of a resolution by City Council in support of maintaining tax-exempt municipal bonds. Attachments: Resolution Cover letter-Griffith Cover letter-Warner Cover letter-Kaine Cover letter-President Recommendations: Motion to adopt resolution and authorize staff to forward resolution to federal elected officials.  RESOLUTION IN SUPPORT OF TAX-EXEMPT FINANCING OF THE MARTINSVILLE CITY COUNCIL Whereas, tax-exempt bonds are the basic tool used by states, cities, counties, towns, universities, school districts, and other governmental entities to fund public purpose projects necessary to provide needed infrastructure and services; and Whereas, municipal bonds are celebrating a century of success as essential financing mechanisms that have been exempt from federal taxation since 1913; and Whereas, today, three-quarters of the infrastructure investment in the U.S. is financed by state and local government bonds, including roads, bridges, sewers, hospitals, libraries, schools, town halls, police stations, electric and gas infrastructure for public power utilities, and other government purpose investments made by state and local governments; and Whereas, every year, on average, public power utilities nationwide make $15 billion in new investments financed with municipal bonds for power generation, distribution, transmission, reliability, demand control, efficiency, and emissions controls – all of which are needed to deliver safe, affordable, and reliable electricity to customers; and Whereas, the ability of these governmental entities to issue tax-exempt bonds so that they are attractive to investors is essential to the daily life of hundreds of millions of Americans; and Whereas, pressure to reduce the federal budget deficit has resulted in an ongoing review by Congress and the Administration of nearly all federal tax and spending programs, including tax-exempt financing; and Whereas, contrary to the perception that tax-exempt bonds only benefit high net-worth individuals, more than half of all municipal bond interest paid to individuals is earned by those with income of less than $250,000; and Whereas, proposals to tax the interest on municipal bonds for some taxpayers would also likely alter the ability of state and local governments to access cost-effective financing, jeopardizing essential infrastructure projects nationwide that would benefit all citizens, not just those in the higher-income brackets; and Whereas, tax credit and direct payment bonds would offer a poor substitute for traditional tax-exempt financing because they lack certainty and do not generally appeal to traditional municipal bond investors, including those who participate in the market through mutual funds; and Whereas, reductions in the availability of tax-exempt financing to municipal governments, or increases in their cost of issuing tax-exempt bonds, would impose significant fiscal injury on these local governments and seriously impair their ability to maintain essential safety and services for their citizens; and Whereas, the loss of tax exempt financing would likely force local governments to significantly increase income taxes and utility rates, and therefore impose serious negative financial hardships on lower- and middle-class families in municipal electric communities. Now, therefore, be it resolved, that the City of Martinsville urges the Administration and the Congress of the United States to reject efforts to tax the interest on municipal bonds or otherwise alter the federal tax treatment or fundamental structure of municipal bonds. Be it further resolved, that a copy of this resolution shall be sent to our U.S. congressional delegation and the Administration. _____________________________________ Authorized Official April 23, 2013 Date Adopted Attest: ____________________________________ Clerk of Council  April 23, 2013 Representative H. Morgan Griffith U.S. House of Representatives 1108 Longworth HOB Washington, D.C. 20515 Dear Congressman Griffith: On behalf of the City of Martinsville Council, I am forwarding to you the enclosed Resolution in support of tax-exempt financing, which was passed by City Council, City of Martinsville, Virginia, on April 23, 2013, by a vote of ________ The ability of state and local governments to issue tax-exempt financing in the form of municipal bonds is critical to providing essential infrastructure throughout the nation, including that developed by public power utilities in the form of power generation facilities, distribution and transmission lines and equipment, emission control and efficiency improvements, etc. Yet, Congress and the Administration are considering various proposals that would eliminate or alter this vital form of public financing, which has been exempt from federal taxation for 100 years. Some potential current threats to tax-exempt financing include: • Changing the tax-exempt status of municipal bond interest (including taxing the interest earned by certain classes of taxpayers); • Issuing municipal bonds as tax-credit bonds, instead of tax-exempt bonds; • Replacing the muni-tax exemption with a direct subsidy to the issuer; • Narrowing the scope of projects eligible for tax-exempt financing; or • Changing overall tax rates or tax treatment of investment income (could make tax-exempt investments less attractive). All of the above actions would only increase costs for communities by making publicly issued debt less attractive to investors. Without those investors and a robust municipal bond market, communities will likely be priced out of the corporate bond market and thus may not be able to obtain financing for critical public infrastructure. While we understand and appreciate efforts to reduce the federal budget deficit and reform the federal tax code, we urge you to reject changes to this stable, cost-effective, and essential public financing tool. Our community needs tax-exempt financing to remain viable for our future. Sincerely, Kim Adkins Mayor City of Martinsville 55 West Church Street P. O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsville.va.us  April 23, 2013 Senator Mark Warner U.S. Senate 475 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Warner: On behalf of the City of Martinsville Council, I am forwarding to you the enclosed Resolution in support of tax-exempt financing, which was passed by City Council, City of Martinsville, Virginia, on April 23, 2013, by a vote of ________ The ability of state and local governments to issue tax-exempt financing in the form of municipal bonds is critical to providing essential infrastructure throughout the nation, including that developed by public power utilities in the form of power generation facilities, distribution and transmission lines and equipment, emission control and efficiency improvements, etc. Yet, Congress and the Administration are considering various proposals that would eliminate or alter this vital form of public financing, which has been exempt from federal taxation for 100 years. Some potential current threats to tax-exempt financing include: • Changing the tax-exempt status of municipal bond interest (including taxing the interest earned by certain classes of taxpayers); • Issuing municipal bonds as tax-credit bonds, instead of tax-exempt bonds; • Replacing the muni-tax exemption with a direct subsidy to the issuer; • Narrowing the scope of projects eligible for tax-exempt financing; or • Changing overall tax rates or tax treatment of investment income (could make tax-exempt investments less attractive). All of the above actions would only increase costs for communities by making publicly issued debt less attractive to investors. Without those investors and a robust municipal bond market, communities will likely be priced out of the corporate bond market and thus may not be able to obtain financing for critical public infrastructure. While we understand and appreciate efforts to reduce the federal budget deficit and reform the federal tax code, we urge you to reject changes to this stable, cost-effective, and essential public financing tool. Our community needs tax-exempt financing to remain viable for our future. Sincerely, Kim Adkins Mayor City of Martinsville 55 West Church Street P. O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsville.va.us  April 23, 2013 Senator Tim Kaine U.S. Senate B40C Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Kaine: On behalf of the City of Martinsville Council, I am forwarding to you the enclosed Resolution in support of tax-exempt financing, which was passed by City Council, City of Martinsville, Virginia, on April 23, 2013, by a vote of ________ The ability of state and local governments to issue tax-exempt financing in the form of municipal bonds is critical to providing essential infrastructure throughout the nation, including that developed by public power utilities in the form of power generation facilities, distribution and transmission lines and equipment, emission control and efficiency improvements, etc. Yet, Congress and the Administration are considering various proposals that would eliminate or alter this vital form of public financing, which has been exempt from federal taxation for 100 years. Some potential current threats to tax-exempt financing include: • Changing the tax-exempt status of municipal bond interest (including taxing the interest earned by certain classes of taxpayers); • Issuing municipal bonds as tax-credit bonds, instead of tax-exempt bonds; • Replacing the muni-tax exemption with a direct subsidy to the issuer; • Narrowing the scope of projects eligible for tax-exempt financing; or • Changing overall tax rates or tax treatment of investment income (could make tax-exempt investments less attractive). All of the above actions would only increase costs for communities by making publicly issued debt less attractive to investors. Without those investors and a robust municipal bond market, communities will likely be priced out of the corporate bond market and thus may not be able to obtain financing for critical public infrastructure. While we understand and appreciate efforts to reduce the federal budget deficit and reform the federal tax code, we urge you to reject changes to this stable, cost-effective, and essential public financing tool. Our community needs tax-exempt financing to remain viable for our future. Sincerely, Kim Adkins Mayor City of Martinsville 55 West Church Street P. O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsville.va.us  April 23, 2013 President Barack Obama The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear President Obama: On behalf of the City of Martinsville Council, I am forwarding to you the enclosed Resolution in support of tax-exempt financing, which was passed by City Council, City of Martinsville, Virginia, on April 23, 2013, by a vote of ________ The ability of state and local governments to issue tax-exempt financing in the form of municipal bonds is critical to providing essential infrastructure throughout the nation, including that developed by public power utilities in the form of power generation facilities, distribution and transmission lines and equipment, emission control and efficiency improvements, etc. Yet, Congress and the Administration are considering various proposals that would eliminate or alter this vital form of public financing, which has been exempt from federal taxation for 100 years. Some potential current threats to tax-exempt financing include: • Changing the tax-exempt status of municipal bond interest (including taxing the interest earned by certain classes of taxpayers); • Issuing municipal bonds as tax-credit bonds, instead of tax-exempt bonds; • Replacing the muni-tax exemption with a direct subsidy to the issuer; • Narrowing the scope of projects eligible for tax-exempt financing; or • Changing overall tax rates or tax treatment of investment income (could make tax-exempt investments less attractive). All of the above actions would only increase costs for communities by making publicly issued debt less attractive to investors. Without those investors and a robust municipal bond market, communities will likely be priced out of the corporate bond market and thus may not be able to obtain financing for critical public infrastructure. While we understand and appreciate efforts to reduce the federal budget deficit and reform the federal tax code, we urge you to reject changes to this stable, cost-effective, and essential public financing tool. Our community needs tax-exempt financing to remain viable for our future. Sincerely, Kim Adkins Mayor City of Martinsville 55 West Church Street P. O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsville.va.us  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 9. Department: City Manager Issue: Consider setting a Public Hearing on the FY14 Budget Summary: At the Council budget presentation on April 11, two possible dates - May 14 or May 28, 2013 were discussed for the Public Hearing and approval on first reading of the City’s FY14 Budget. There is adequate time to properly advertise the Hearing for either date if a decision is made at the April 23rd Council meeting. Attachments: None Recommendations: Set a Public Hearing for approval on first reading of the City’s FY14 budget for either May 14 or May 28, 2013.  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 10. Department: Finance Issue: Consider approval of consent agenda. Summary: The attachments amend the FY13 Budgets with appropriations in the following funds: FY13: General Fund: $460,565 – State & Local Reimbursements; Donation. Attachments: Consent Agenda - 4-23-13.xls Recommendations: Motion to approve  BUDGET ADDITIONS FOR 4/23/13 ORG OBJECT DESCRIPTION DEBIT CREDIT FY13 General Fund: 01101917 442810 Categorical Other - State - Highway Projects 446,822 01413151 503193 Thorofare Construction - Prof.Serv. -Inspections/Fees 446,822 Reimbursement-Liberty St Project 01101918 443402 State Grant - Stormwater Mgmt Plan Study 11,731 01413149 503162 Street Construction - Stormwater Mgmt Study 11,550 01413149 503163 Street Construction - Stormwater Study/Advertising 181 Reimbursement from DCR for Stormwater Study 01100909 490104 Advance/Recovered Costs 1,762 01331108 501300 Sheriff/Corrections - Part-time & Temporary Wages 1,280 01331108 502100 Sheriff/Corrections - Social Security 79 01331108 502110 Sheriff/Corrections - Medicare 19 01331108 506008 Sheriff/Corrections - Vehicle Equipment & Maint. 256 01331110 506200 Sheriff/Annex - Prisoner Allowance 128 Reimbursement from Henry County for litter pickup - January 2013 01100908 480410 Donations/Fire Department 250 01321102 505500 Fire Department - Travel 250 Donation from citizen Total General Fund: 460,565 460,565  City Council Agenda Summary Meeting Date: April 23, 2013 Item No: 11. Department: Finance Issue: Hear Monthly Financial Report Summary: FY13 – Revenues & Expenditures through March 31, 2013; Combined Balance Sheet; Projected Fund Balance Exclusive of School and Special Revenue funds, actual revenues were $41,457,992, representing 101.8% of the anticipated $40,716,143 through the third quarter, ending March 31st. Presenting eight months, Local Sales/Use Taxes collected through March 31st are ahead of anticipated by $48,554, for total receipts of $753,420. Utility revenues were mixed with Water Fund and Sewer Fund receipts being greater than anticipated, and Refuse Fund and Electric Fund receipts being less than anticipated, although not by large amounts. Actual expenditures were $49,574,259, which is less than the anticipated amount by $900,803. The “actual” figures include all outstanding encumbrances of $1,665,926. As of the end of the FY13 third quarter, the current total combined fund balance for FY13 is $21,053,946, a decrease over FY12 of $5,718,575. The unadjusted available cash-on-hand March 31st for City Funds was $9.3 million. From estimates prepared during the FY14 budget process, the projected fund balance, including all Utility Funds, for FY13 is $16,136,456 – a decrease from FY12 year-end of $10,636,065. Based upon this projection, the unassigned Fund Balance would be $2,796,762 for non-utility funds and $9,014,641 for utility funds, for a total of $11,811,403. Attachment: Revenue & Expense Report - 4-23-13.xls Combined Balance Sheet FY13 - 4-23-13.xls FY13 Projected Fund Balance for 4-23-13.xls Recommendations: Motion to approve monthly financial report  City of Martinsville Consolidated Revenues and Expenditures FY13 - March 31, 2012 (prepared for 4/23/13 meeting) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual General Fund Revenues $ 29,107,368 $ 18,823,484 $ 19,243,706 $ 9,863,662 102.2% Expenditures 30,984,737 23,137,182 22,874,143 8,110,594 98.9% Excess (deficiency) of revenues over expenditures $ (1,877,369) $ (4,313,698) $ (3,630,437) (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Capital Funds Meals Tax Revenues $ 1,893,250 $ 1,307,286 $ 1,317,862 $ 575,388 100.8% Expenditures 10,624,666 6,675,217 6,675,217 3,949,449 100.0% Excess (deficiency) of revenues over expenditures $ (8,731,416) $ (5,367,931) $ (5,357,355) Capital Reserve Revenues $ 1,046,608 $ 877,396 $ 892,348 $ 154,260 101.7% Expenditures 2,228,913 1,946,847 1,946,847 282,066 100.0% Excess (deficiency) of revenues over expenditures $ (1,182,305) $ (1,069,451) $ (1,054,499) TOTAL CAPITAL FUNDS: $ (9,913,721) $ (6,437,382) $ (6,411,854) (Fund Bal contrib) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual Refuse Fund Revenues $ 1,814,000 $ 1,387,300 $ 1,361,622 $ 452,378 98.1% Expenditures 1,979,117 1,613,931 1,530,893 448,224 94.9% Excess (deficiency) of revenues over expenditures $ (165,117) $ (226,631) $ (169,271) Water Fund Revenues $ 3,104,198 $ 2,326,920 $ 2,493,469 $ 610,729 107.2% Expenditures 3,462,198 2,287,811 2,155,471 1,306,727 94.2% Excess (deficiency) of revenues over expenditures $ (358,000) $ 39,109 $ 337,998 Sewer Fund Revenues $ 3,760,612 $ 2,819,709 $ 3,041,295 $ 719,317 107.9% Expenditures 4,310,612 2,714,490 2,618,035 1,692,577 96.4% Excess (deficiency) of revenues over expenditures $ (550,000) $ 105,219 $ 423,261 Electric Fund Revenues $ 17,571,805 $ 13,174,048 $ 13,107,690 $ 4,464,115 99.5% Expenditures 18,427,138 12,099,584 11,773,653 6,653,486 97.3% Excess (deficiency) of revenues over expenditures $ (855,333) $ 1,074,464 $ 1,334,037 TOTAL UTILITY FUNDS: $ (1,928,450) $ 992,161 $ 1,926,024 (Fund Bal contrib)  Consolidated Revenues and Expenditures FY13 - March 31, 2012 Actual Remaining Difference Budget YTD Balance Budg vs. Actual Cafeteria Revenues $ 1,312,838 $ $ 944,815 $ 368,023 72.0% Expenditures 1,357,598 1,027,693 329,905 75.7% Excess (deficiency) of revenues over expenditures $ (44,760) $ $ (82,878) Schools Revenues $ 20,259,185 $ $ 14,709,333 $ 5,549,852 72.6% Expenditures 20,367,483 13,704,165 6,663,318 67.3% Excess (deficiency) of revenues over expenditures $ (108,298) $ $ 1,005,167 Federal Programs Revenues $ 2,150,421 $ $ 1,504,234 $ 646,187 70.0% Expenditures 2,150,421 1,627,696 522,725 75.7% Excess (deficiency) of revenues over expenditures $ - $ $ (123,463) TOTAL SCHOOL FUNDS: $ (153,058) $ - $ 798,826 (fund bal contrib) Actual Remaining Budget YTD Balance Special Revenue Funds CDBG Fund Revenues $ 55,855 $ 188,606 $ (132,751) Expenditures 212,907 106,899 106,008 Excess (deficiency) of revenues over expenditures $ (157,052) $ 81,707 Housing Choice Fund Revenues $ 1,973,200 $ 1,226,424 $ 746,776 Expenditures 2,251,903 1,393,480 858,423 Excess (deficiency) of revenues over expenditures $ (278,703) $ (167,056) TOTAL SPECIAL REVENUE FUNDS: $ (435,755) $ (85,348) Actual Remaining Difference Budget Anticipated YTD Balance Ant vs. Actual GRAND TOTALS: (excluding Schools & Special Revenues) Revenues: $ 58,297,841 40,716,143 $ 41,457,992 $ 16,839,849 101.8% Expenditures 72,017,381 50,475,062 49,574,259 22,443,122 98.2% Excess (deficiency) of revenues over expenditures $ (13,719,540) (9,758,919) $ (8,116,267) Local Sales/Use Taxes $ 1,900,000 $ 1,225,500 $ 1,274,054 $ 625,946 104.0% The Budgeted Revenue amounts do not include any contributions from Fund Balance. 4/18/2013 12:05  City of Martinsville Combined Balance Sheet 06/30/2013 (thru 03/31/13) FY2013 CURRENT JUNE 30, 2012 TOTAL LIABILITIES FUND BAL & FUND BAL & DIFFERENCE FUND ASSETS* &RESERVES NET ASSETS NET ASSETS FROM FY12 GENERAL FUND $ 10,508,754 $ (5,729,518) $ 4,779,236 $ 7,374,295 $ (2,595,059) MEALS TAX $ 4,201,089 $ - $ 4,201,089 $ 9,519,913 $ (5,318,824) SCHOOL CAFETERIA $ 777,188 $ - $ 777,188 $ 860,250 $ (83,062) REFUSE COLLECTION FUND $ 9,309,941 $ (7,158,555) $ 2,151,386 $ 2,163,379 $ (11,993) WATER FUND $ 5,392,598 $ (4,428,267) $ 964,331 $ 496,654 $ 467,677 SEWER FUND $ 4,727,633 $ (3,480,963) $ 1,246,670 $ 813,954 $ 432,716 ELECTRIC FUND $ 14,843,578 $ (8,647,736) $ 6,195,842 $ 4,584,420 $ 1,611,422 CAPITAL RESERVE FUND $ 552,120 $ (348,768) $ 203,352 $ 1,239,637 $ (1,036,285) SCHOOL FUND $ 1,143,084 $ (119,439) $ 1,023,645 $ - $ 1,023,645 SCHOOL FEDERAL PROGRAMS $ (100,331) $ (71) $ (100,402) $ 23,061 $ (123,463) CDBG FUND $ (371,292) $ (130,105) $ (501,397) $ (583,104) $ 81,707 HOUSING CHOICE $ 113,005 $ - $ 113,005 $ 280,062 $ (167,057) TOTAL $ 51,097,366 $ (30,043,421) $ 21,053,946 $ 26,772,521 $ (5,718,575) Re-appropriations (approved 10/9/12) $ (11,247,457) Adjusted Total: $ 15,525,064 *Re-appropriations for FY12 include $768,824 for Capital Fund Energy Efficiency Project and $8,731,416 for Meals Tax Fund H.S. Renovation Project, leaving $1,747,217 for other projects. RESERVED FUND INSURANCE TRUST FUND $ 427,742 $ - $ 427,742 $ 467,908 $ (40,166) INMATE TRUST FUND $ 108,785 $ - $ 108,785 $ 97,340 $ 11,444 *Does not include fixed assets. Totals may not crossfoot due to rounding. 4/18/2013 12:05  CITY OF MARTINSVILLE PROJECTED FUND BALANCE 06/30/2013 (04/15/13) Projected Audited Fund Anticipated Anticipated Fund Net Balance Revenues Expenditures Budgeted Balance (Decrease) 06/30/12 FY13 FY13 Depreciation 06/30/13 Increase GENERAL 7,374,295 29,835,933 31,026,419 6,183,809 (1,190,486) MEALS TAX 9,519,913 1,905,950 10,624,666 801,197 (8,718,716) CAPITAL RESERVE 1,239,637 1,025,188 2,226,938 37,887 (1,201,750) TOTAL CAPITAL FUNDS 10,759,550 2,931,138 12,851,604 839,084 (9,920,466) REFUSE 2,163,379 1,780,123 2,023,468 150,000 2,070,034 (93,345) WATER 496,654 3,305,786 3,332,259 250,000 720,181 223,527 SEWER 813,954 4,034,212 4,003,115 400,000 1,245,051 431,097 ELECTRIC 4,584,420 17,272,382 17,277,427 400,000 4,979,375 394,955 TOTAL UTILITY FUNDS 8,058,407 26,392,503 26,636,269 1,200,000 9,014,641 956,234 CAFETERIA 860,250 1,312,838 1,357,598 815,490 (44,760) SCHOOLS 0 20,499,258 20,607,556 (108,298) (108,298) SCHOOL GRANTS 23,061 2,150,421 2,150,421 23,061 0 TOTAL SCHOOL FUNDS 883,311 23,962,517 24,115,575 730,253 (153,058) CDBG (583,104) 217,392 261,862 (627,574) (44,470) HOUSING CHOICE 280,062 1,942,197 2,226,017 (3,758) (283,820) TOTAL SP REV FUNDS (303,042) 2,159,589 2,487,879 (631,332) (328,290) TOTAL ALL FUNDS 26,772,521 85,281,680 97,117,745 1,200,000 16,136,456 (10,636,065) Fund Balance Summary: Total Funds: Total by Category: Non-spendable: 795,619 Inventory 792,569 Prepaid Items 3,050 Restricted: 0 (none) Committed to: 2,536,251 CCBC 1,666,700 PART 31,000 Cafeteria Fund 815,490 School Grants Fund 23,061 Assigned to: 993,183 Thoroughfare Constr 154,099 Capital Reserve Fund 37,887 Meals Tax Fund 801,197 Unassigned: 11,811,403 Non-utility Funds: 2,796,762 Utility Funds: 9,014,641 Totals: 16,136,456 16,136,456