City Council

February 15, 2017 Council of the City of Martinsville, Virginia held a Work Session on February 15, 2017 in Council Chambers, Municipal Building, at 5:00 PM with Mayor Gene Teague presiding. Council Members present included Gene Teague, Chad Martin, Jennifer Bowles, Sharon Brooks Hodge, and Kathy Lawson. Staff present included City Manager Leon Towarnicki, Assistant City Manager Wayne Knox, City Attorney Eric Monday, Clerk of Council Karen Roberts, Finance Director Linda Conover, and Fire Chief Ted Anderson. Mayor Teague called the meeting to order. City Manager Towarnicki provided a pre-budget packet detailing session objectives to review the FY18 revenue projections, how reductions may affect various departments, services, revenue sources and the council’s position regarding budget impacts to school funding, services, public safety, etc. Looking at revenue from traditional sources, revenue has been flat the past several years, meaning there has been no significant growth and averages $27,200,000. $614,000 was awarded to the schools recently, which affected the fund balance. The City has $900,000 more in cash reserve policies than required to have. Looking at the FY17 budget, water/sewer increased significantly from FY15. The rate increase that occurred in July 2016 will help that even more. No funds were transferred from water/sewer in FY16 or FY17 so those funds could assist with the budget in FY18. Due to a decrease in property appraisals - $93,000 will be lost in revenue. Council Member Hodge said realistically about 40% of unpaid taxes could be collected making up for part of the deficit. Mayor Teague said it might be a good option to go after delinquent taxes more aggressively. Teague clarified for the public that Council has not agreed to any kind of tax increase. Towarnicki referred to the cigarette tax rates in local areas compared to Martinsville as well as City levies for City purposes for real estate, tangible personable property and machinery/tools. Towarnicki explained Table 1 Budget Year analysis. Hodge asked about staffing, if all City positions are required or if there are positions that can be cut or salaries decreased. Linda Conover, Finance Director said some positions were already cut last year. Towarnicki said other positions were not filled when employees retired. Teague pointed out that 20 positions had been cut from City staff in the past 8 years and the City is having a hard time finding qualified employees to fill vacant positions with the current salary offered. Hodge suggested that a salary cut be considered to accommodate budget cuts. Vice Mayor Martin asked about retiree buy-outs; Conover and Teague responded that had been done in previous years with negative results. Council Member Lawson and Council Member Hodges both agreed that they do not want to cut safety departments. Council Member Bowles does not support any cuts to the schools or safety. Martin says it is good to put information on the table to educate residents. Teague asked for input from departments explaining any implications of a budget cut before Council decides how to go forward. Hodge asks for alternative budget ideas when providing level funding for safety and schools. Lawson questioned employee raises for the upcoming year. Teague would like to see projections if everyone should participate in the budget February 15, 2017 reduction. Hodge and Bowles do not want cuts on Safety or Schools. Hodge would like to have two positions of the 22 City administrative positions reviewed. Martin would like to see both sets of projections. Council Members were all interested in unpaid real estate tax plus cigarette tax possibilities. Towarnicki explained that numbers are preliminary at this point and could change. February 15, 2017 February 15, 2017 February 15, 2017 February 15, 2017 February 15, 2017 There being no further business, Council Member Bowles made a motion to adjourn the meeting; the motion was seconded by Council Member Hodge with all Council Members voting in favor. The meeting adjourned at 6:51pm. ______________________________________ ______________________________________ Karen Roberts Gene Teague Clerk of Council Mayor