City Council

November 16, 2021 Council Meeting A special meeting of the Council of the City of Martinsville, Virginia related to reversion was held on November 16, 2021 in Council Chambers, Municipal Building, at 6:00 PM with Mayor Kathy Lawson presiding. Other Council Members present included Danny Turner, Jennifer Bowles, Chad Martin and Tammy Pearson. Staff present included City Manager Leon Towarnicki and City Attorney Eric Monday. City Attorney Eric Monday presented a PowerPoint which detailed why reversion is being pursued, challenges that are facing the City, and the reversion process. Monday explained that the City is financially stable and detailed how the reversion would affect Constitutionals and City departments. Monday explained the difference in reversion and a full consolidation. Council Members confirmed that although Martinsville has a good relationship with Henry County, the County was not interested in discussing consolidation or reversion options. Negotiations may still occur at any time and on any subject. The reversion can be cancelled up to 21 days after the court renders judgement. Monday detailed the changes to the City schools and what debts, contracts, and departments the City will maintain. Monday confirmed that the media’s report that the City would loose 500 jobs was false and fabricated; the City does not have 500 jobs and no one from the media had called the City about this. All urban services will continue on at least the same level or better including Public Works, the Electric Department, Fire and Rescue, etc. Monday detailed the County’s need for constitutional and school employees after the reversion and stated it appears at this time that there could be options available for anyone wishing to be hired by the County. The City will retain their own debt, they are not pushing the City’s debt off on the County. Monday also touched on accumulating Henry County debts of $94 million related to Meadow View Elementary, the Henry County jail and the potential reopening of the Smith River Water Plant; this debit is what will contribute to the proposed County tax increase in FY21-22 and not the $5 million that Henry County will owe towards reversion. There are other misconceptions that the Martinsville High School will close and that taxes will double. Monday confirmed that some residents would receive 2 bills but that the overall total taxes due would not double. Monday shared that estimated savings to the Town of Martinsville resulting from reversion would be $15.8million. Monday disputed the statement that the public has had no opportunity to speak on reversion; he detailed public presentations, work sessions, numerous Council meetings, neighborhood meetings, presentations, and public hearings which would have given residents ample opportunity to state opinions and ask questions. There have been no comments received at the email set up specifically for reversion and only one person, Commissioner of Revenue Ruth Easley, registered to attend tonight’s meeting. Monday explained that the reason the City is unable to discuss some aspects related to the reversion is because there was a nondisclosure statement agreed upon by both the County and the City for topics discussed during mediation which legally binds them to not reveal those discussions. November 16, 2021 Council Meeting November 16, 2021 Council Meeting November 16, 2021 Council Meeting November 16, 2021 Council Meeting November 16, 2021 Council Meeting November 16, 2021 Council Meeting Following Mr. Monday’s presentation, Mayor Lawson invited the only person pre-registered to speak, Commissioner of Revenue Ruth Easley, to the podium. Easley expressed concern about the vagueness of the Volunteer Settlement Agreement and said that she had asked in the past how her department and the Treasurer’s office would transition records and has gotten no response other than to “just do it”. This process would not be quick or easy and will require additional cost and time by her employees. Easley referenced the Bedford VSA stating that it took Bedford five years to complete. Easley said Martinsville and Henry County basically copied Bedford’s VSA and approved it in three months with no discussion with those departments that would be affected. She said that some of the VSA information is incorrect and that the reversion email address did not exist until November 10, 2021. Mayor Lawson explained that there is a great deal of work to be done and Easley will be informed as soon as those details are ironed out. Council Member Pearson thanked Easley for pointing out that so many details are being missed. Pearson feels there should be a round-table discussion with experts like Easley. Easley said other constitutional officers have also expressed concern because they don’t know what will happen to their job or their staff when the City reverts. Easley said she is so thankful that she is eligible for retirement. Easley explained that the actual transfer of files to the County is not going to take a lot of time but reviewing those to ensure everything transferred correctly will. No one knows who will be handling billing, there are assumptions being made but no one is communicating with the employees who are doing the job. Neither governing body brought either constitutional office to the table to discuss reversion, how the records would be transferred, who would be responsible for handling the transfer and who would be funding the change-over. Pearson acknowledged that the transfer of data and records will be extremely November 16, 2021 Council Meeting complicated so she understands Easley’s concerns. Easley said the Munis conversion in 1999 took their departments approximately 18 months to complete. The software companies are telling her it will take a minimum 12 months to get everything transferred over and without answers, they cannot give her any idea of what it will cost. Mayor Lawson thanked Easley for bringing up several very good points and her concerns will be discussed. There being no further business, Mayor Lawson adjourned the meeting at 7:30pm. ______________________________________ ______________________________________ Karen Roberts, Clerk of Council Kathy Lawson, Mayor