City Council
Regular MeetingMartinsville, VA · June 13, 2023
Minutes
June 13, 2023 Council Meeting
A meeting of the Council of the City of Martinsville, Virginia was held on June 13, 2023 in
Council Chambers, Municipal Building, at 7:00 PM with Mayor LC Jones presiding. Other
Council Members present included Kathy Lawson, Aaron Rawls, Lawrence Mitchell and Tammy
Pearson. Staff present included City Manager Leon Towarnicki, Clerk of Council Karen Roberts,
City Attorney representative Steven Durbin, Finance Director Mandy McGhee, Assistant Finance
Director Crystal Ferguson, Public Information Officer Kendall Davis, Fire Chief Dan Howell, and
Deputy Police Chief Chad Rhoads.
Pledge to the flag and invocation were led by Council Member Lawson. Mayor Jones
welcomed everyone to the meeting an advised that agendas could be found in the back of the
room and on the City website.
Approve minutes from the April 11, 2023 Council Meeting, April 24, 2023 Neighborhood
Meeting, April 25, 2023 Council Meeting, May 6, 2023 Council Retreat, and the May 9, 2023
Council Meeting – Council Member Lawson made a motion to approve the minutes as presented.
Council Member Pearson seconded the motion with all Council Members voting in favor.
Hear an overview of the June 12 Druid Hills/Uptown neighborhood tour and meeting – City
Manager Towarnicki summarized the neighborhood tour, the route they took and detailed some
of the properties and concerns discussed. Towarnicki summarized the neighborhood meeting
where approximately 15 residents attended and shared some of those resident concerns and
how those would be addressed.
Conduct a public hearing for the purpose of receiving names of citizens interested in
appointments for two 3-year terms ending June 30, 2026, and one unexpired 3-year term ending
on June 30, 2024 on the Martinsville City School Board – Mayor Jones opened the public
hearing. Leroy Hairston, Jr. spoke for Tony Jones who would like to be reconsidered for the
June 13, 2023 Council Meeting
school board. Stephanie Morris-Mills of 802 A Street Martinsville would like to be considered.
Nekia Blackwell of 317 Forest Street put her name in for a school board vacancy. Emily Parker
of 1225 Mulberry Road requested to be considered. Vice Mayor Rawls said that Cody Williams,
1223 Lanier Road would like to be considered while Council Member Pearson mentioned Heather
Blankenbaker of 908 Hazelwood Lane who was also interested. Mayor Jones closed the public
hearing. City Manager Towarnicki explained interviews should be handled prior to the June 27
closed session meeting. Council Member Lawson recommended interviews on Monday June 26
beginning at 5:30pm, allotting 30 minutes for each interview.
Hear a presentation from Site Collaborative regarding Martinsville’s Public Parks
Improvements Plan – City Manager Towarnicki summarized the improvements plan that began
using ARPA funds. He noted a RFP was issued, conducted interviews and selected Site
Collaborative who has done a lot of work towards park improvements. Graham Smith, President
of Site Collaborative presented a PowerPoint explaining the organization, their history with
previous projects, and their plan for the City parks along with the projected progress outlines
for each task. Site Collaborative would be engaged with Council regularly through the planning
process and would like assigned liaisons and advocates within the city.
June 13, 2023 Council Meeting
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Consider approval of a resolution supporting an Industrial Revitalization Fund application
to Virginia Department of Housing and Community Development for the development project at
One Ellsworth – City Manager Towarnicki said the City was made aware of an opportunity and
once they received the criteria, one project stood out to be eligible which is the BB&T project.
Towarnicki summarized the application and potential funds available for the One Ellsworth
project. The application is due prior to the second Council meeting this month and a resolution
is required to move forward with the application. If the award is made, a performance agreement
will be implemented and brought back to Council for review and approval. Staff recommends
Council approve the resolution so the application can move forward. Vice Mayor Rawls made a
motion to approve the resolution. Council Member Lawson seconded the motion with all Council
Members voting in favor.
June 13, 2023 Council Meeting
Consider approval of amended Budget Ordinance 2023-U-1 on second reading – City
Manager Towarnicki presented a PowerPoint, summarizing the budget process along with key
points, staff recommendations and action recommended for tonight’s meeting. Vice Mayor Rawls
asked Towarnicki to elaborate on the need for a proposed water/sewer increase. Staff requests
that Council (1) approve the amended budget ordinance then (2) adopt the budget ordinance.
Rawls said he would like to see the budget process started in January going forward. Towarnicki
explained that staff begins the budget process with the city audit, usually in December and City
staff is included around January and taken to Council around April.
June 13, 2023 Council Meeting
Council Member Lawson made a motion to amend Ordinance 2023-U-1 to conform to the
changes noted. Vice Mayor Rawls seconded the motion with all Council Members voting in favor.
Lawson made a motion to adopt Ordinance 2023-U-1 as amended on second reading. Rawls
seconded the motion. Lawson said the budget is necessary, she knew it would be a painful
budget year and she thanked Council and staff for working through the details. Towarnicki
thanked the department heads and the ladies in the Finance Department for their work. The
June 13, 2023 Council Meeting
ordinance was adopted on second reading with the following roll call vote: Council Member
Pearson, aye; Council Member Mitchell, aye; Mayor Jones, aye; Council Member Lawson, aye;
and Vice Mayor Rawls; aye.
Business from the Floor – James Coleman, Martinsville resident said it’s nice to be at a
meeting where no one is mad at him about zoning issues. He represents a firm over 100 years
old where the money first started in tobacco, then farming. Coleman provided history on Lanier
Farms, the Druid Hills development, the Rives Brown family involvement in that and how Rives
Brown, Jr. gifted a foot of land to Julian Hurst, Developer. Coleman has been around 55 years
and has worked with almost every City Manager. Coleman said he can’t give Leon a foot of
Martinsville, but he can tell him how much he appreciates all that City Manager Towarnicki has
done over the years and no one has been as strong, effective and as low-key of a leader as
Towarnicki has. When Towarnicki retires, the amount of knowledge and the wealth of
information goes out the door with him. Coleman gifted Towarnicki with a 150-year old yard-
stick.
Dru Rothrock, 604 Mulberry Road has been a Martinsville resident for 70 years. He did not
realize that reversion was a topic as far back as 1950 when the first committee was formed. In
1981 the Martinsville-Henry County Merger Study Committee was created and from 2002 to
2004 the Martinsville-Henry County Sub-Committee of Joint School Boards was formed. City
Council reversion studies began in 2012 to 2013 and were done again in 2018 to 2019. Both
times, consultants were hired who all concurred that city expenses would increase more than
June 13, 2023 Council Meeting
city revenue, resulting in the pursuit of savings by cutting services or consolidating services
with the County. On December 10, 2019 Council voted for reversion to eliminate the financial
stress on the City with the plan to eliminate double constitutional offices and combine schools
with the County. The community would have the opportunity to provide children the best
education but Council Members Pearson, Rawls and Jones and the Commissioner of Revenue
Ruth Easley campaigned firmly against reversion. None of the anti-reversion men or women
cited specifically why or how those previous studies were wrong. On January 9, 2023 Council
voted to cancel reversion and end years of reversion efforts. There is a huge disconnect between
what Rawls, Pearson, Jones and Easley said compared to the budget that has been approved.
Average real estate taxes will go up about 25%. Electricity rates will go up 8% in July and again
in January 2024. Lodging rate will increase from 2% to 7%. City employee raises will be 5%
instead of 7%. In his opinion, these council members who cancelled reversion did a real
disservice to the community by voting to kill reversion without citing the specific reasons why
their financial forecast for the future differ from the City and County studies for the past 70
years. Now the city is facing a budget crisis which is exactly what the consultants had predicted
for years. The citizens of Martinsville can look forward to higher taxes or cuts in services for
years to come.
Ural Harris, 217 Stuart Street questioned some of the statements from the previous Council
meeting, specifically that the 2006 tax increase was the largest in city history. The current tax
rate is higher than the state plus the increase in cigarette and lodging tax would be the biggest
increase in history for the City. Harris questioned the reimbursement on the number of school
aged children who attend Martinsville schools and how Council can say it will cost more money
this coming year.
Leroy Hairston, Jr of 109 Terry Street says he leaves here tonight with mixed emotions after
observing Council’s actions. Everything is going up in price, he is saddened how citizens are
being treated and the city is not progressing because of so much evil in their heads. Citizens
and Council Members need to work together or they’ll fall like fools.
Mike Sanguedolce of 708 Starling Avenue provided a brief summary of the Transportation
Safety Committee and updates on what they are working on. There has been talk about
Cleveland Avenue and Brown Street and they plan to talk to the residents regarding possibly
changing the flow of traffic and using an empty lot as a pickup location for the school.
Unfortunately, there is no funding in the school budget for paving this next year. The Committee
has had bushes trimmed and signs installed and are making progress throughout the City. The
intersection at Starling Avenue and Church Street was discussed and the bushes are still
obstructing the view of traffic when turning.
Jennifer Bowles, 1670 Roundabout Road shared details about a downed tree on her road
that is causing a traffic hazard. Bowles also expressed her concern about being removed from
the West Piedmont Planning District Board of Commissioners illegally and without cause.
June 13, 2023 Council Meeting
Bowles read an email that was sent to Council Members, the City Manager and the Director of
the West Piedmont Planning District on May 25, 2023 that stated “Honorable Mayor Jones
and members of Council: Your attempted removal of me from the West Piedmont Planning
District Commission board is illegal. The bylaws of the WPPDC state that members may be
removed “for cause” by City Council as the appointing body. Vice Mayor Rawls’ motion on April
11 gave no reason whatsoever for my removal — which was therefore clearly without cause.
The requirement for removal with cause qualifies and limits Council’s authority to remove its
appointees, and makes that authority subject to Code of Virginia section 24.2–234, requiring
Council to petition the circuit court for removal. Valid reasons for removal are set out in Code
of Virginia section 24.2–233 and include such things as conviction of a crime, inability to
serve, or neglect of duty. These allegations have to be proven in court. Simply passing a
motion to remove someone is not in that list. Neither is personal dislike or political
disagreement. While I respect the Council's ability to appoint and remove public officials, that
power is not unlimited. If you wish to remove me from the WPPDC, please do so for a valid and
provable reason, and do so in compliance with Virginia law. Until and unless you are able to
comply with the law, I will continue to attend and participate in the WPPDC meetings as a
duly appointed member representing Martinsville.” Bowles continued, stating that Vice Mayor
Rawls’ motion on April 11 to remove her from the board was without cause. Bowles stated that
she will continue to attend and participate in the meetings as a dully appointed member.
Bowles is not sure why she was removed and replaced when there were well over 30 vacancies
on various boards for Joe Martin to serve on. Bowles said she has served on this board
previously for 6 years as a Council Member. Vice Mayor Rawls stated that he wants someone
to serve who is experienced and qualified, which he feels that Bowles is not. Bowles and Rawls
debated the topic and Bowles requested a written response to her questions.
Mayor Jones asked Deputy Police Chif Chad Rhoads about the dog barking ordinance.
Rhoads explained the ordinance and action that can be taken.
Comments by City Council – Council Member Mitchell had the opportunity to attend the
Martinsville High School graduation, stating that it was moving to see the parents and families
celebrating the students and thanked the City school system. Council Member Pearson thanked
those residents who expressed interest in serving on the school board. It was nice to see a good
crowd at the Druid Hills neighborhood meeting; Council appreciates hearing resident voices. In
regards to the budget, she would like to start that process earlier with more hands on by Council
Members. Council Member Lawson asked City Manager Towarnicki if they can get statistics on
Cleveland Avenue traffic and car riders in the evening that is causing the congestion. Lawson
shared that the School board owns a lot between the gym and Truist Bank and the opportunity
to make that lot usable for pickup/parking/overflow. Lawson reminded citizens that Wednesday
is Flag Day and that there will be a Juneteenth celebration on Saturday at Baldwin Park hosted
by FAHI. The Mustangs played a fabulous game last night and will play again this Friday.
June 13, 2023 Council Meeting
Lawson thanked everyone for the diligent work that went into the budget. Vice Mayor Rawls
shared that there will be a Flag Day ceremony at the City Municipal Building at 1:00pm. He is
thankful for the amount of interest for the school board. Rawls will be a guest tomorrow on the
Charles Roark show so he can talk about reversion and why Council made the decision to cancel
that and invited residents to call in with questions. Rawls asked for confirmation that reversion
would not be worth it if schools did not consolidate, Towarnicki and Lawson said it was not.
Rawls said he has not seen any figures to support reversion. Mayor Jones thanked residents
and especially all that put in for school board and he thanked those who shared views on
reversion. When Jones decided to run for council, he knew it would be an uphill battle. Jones
said higher taxes are something that must be done for a brighter future for Martinsville. Rules
are changed behind closed doors. Jones encouraged residents to keep coming forward with
suggestions.
Comments by City Manager – City Manager Towarnicki said the city has already looked at
the vacant avenue on Cleveland Avenue but the middle school is using that space to store
materials for roof repairs; they are looking to do something with that lot once the repairs are
complete. There are a lot of projects going on and that’s incredible for a small community,
starting with the remodeling of the Henry Hotel and Chief Tassel project, the battery storage
project, the solar project, the Aaron Mills project, the BB&T building, and the Armory. He has
received three very good proposals for the Armory property that will be brought to Council in
the near future along with even more projects and the proposed park upgrades. He hopes
residents and Council Members realize the amount of work that goes into getting these projects
started.
Kendall Davis, Public Information Officer spoke briefly about the Grand Slam Fest on
Monday June 19 at Hooker Field beginning at 4:30pm and invited Martinsville and Henry
County citizens for foosball, inflatables, cornhole, and entertainment by Pirates of the Piedmont.
There will be door prizes and the opportunity to meet City employees and then stay for the game.
City employees get in free for the game.
Mitchell asked why the fire dept was at the Paradise Inn and if Towarnicki has a timetable
on the demolition of that building. Towarnicki said the contract was awarded weeks ago and he
expects that to begin soon. He pointed out that the markings on the ground are probably
locations for underground utilities to prepare for the demolition.
There being no further business, Council Member Lawson made a motion to adjourn. The
meeting adjourned at 9:05pm.
______________________________________ ______________________________________
Karen Roberts, Clerk of Council LC Jones, Mayor
Agenda
AGENDA--CITY COUNCIL
CITY OF MARTINSVILLE, VIRGINIA
Council Chambers – Municipal Building
7:00pm Regular Session
Tuesday June 13, 2023
7:00 pm - Regular Session
Pledge to the American Flag and Invocation by Council Member Lawson
1. Approve minutes from the April 11, 2023 Council Meeting, April 24, 2023 Neighborhood
Meeting, April 25, 2023 Council Meeting, May 6, 2023 Council Retreat, and the May 9,
2023 Council Meeting. (5 mins)
2. Hear an overview of the June 12 Druid Hills/Uptown neighborhood tour and meeting. (10
mins)
3. Conduct a public hearing for the purpose of receiving names of citizens interested in
appointments for two 3-year terms ending June 30, 2026, and one unexpired 3-year term
ending on June 30, 2024 on the Martinsville City School Board. (10 mins)
4. Hear a presentation from Site Collaborative regarding Martinsville’s Public Parks
Improvements Plan. (30 mins)
5. Consider approval of a resolution supporting an Industrial Revitalization Fund application
to Virginia Department of Housing & Community Development for the development project
at One Ellsworth. (10 mins)
6. Consider approval of amended Budget Ordinance 2023-U-1 on second reading. (15 mins)
7. Business from the Floor -
The public comment portion of the Council meeting provides citizens the opportunity to discuss matters relevant to the operation of
the City, which are not listed on the printed agenda.
Citizens who wish to participate in a meeting’s public comment period may do so by emailing their comments to Karen Roberts, Clerk
of Council, at kroberts@ci.martinsville.va.us, calling in their comments to 276-403-5182, faxing comments to 276-403-5280,or mailing
comments to City of Martinsville, attn.: Karen Roberts, P.O. Drawer 1112, Martinsville, VA 24114. Comments must be received by
12:00noon Monday June 12, 2023. Citizens may also request to speak at the Council meeting in the same manner.
Comments, or a request to speak, must be received by noon the day before a Council meeting for consideration by Council at the
meeting. Any person submitting comments or requesting to speak must identify themselves by name and address, including zip code,
limit their remarks to 3 minutes or less (as read aloud), address a topic of City business, and refrain from making any personal
references or accusations of a factually false and/or malicious nature. Priority for comments is given to City residents, taxpayers, and
business owners. Speakers may not yield time. Groups of speakers on the same topic must designate a single representative.
Comments violating these rules may not be presented at the Council meeting. Any speaker violating these rules may be removed from
the podium or from the Council chamber.
This policy does not apply to public hearings, at which any citizen of Martinsville may appear and speak on the subject of the public
hearing.
8. Comments by members of City Council. (5 mins)
9. Comments by City Manager. (5 mins)
City Council
Agenda Summary
Meeting Date: June 13, 2023
Item No: 1.
Department: Clerk of Council
Issue: Consider approval of minutes
Summary: None
Attachments: April 11, 2023 Council Meeting
April 24, 2023 Neighborhood Meeting
April 25, 2023 Council Meeting
May 6, 2023 Council Retreat
May 9, 2023 Council Meeting
Recommendations: Motion to approve minutes as presented.
City Council
Agenda Summary
Date: June 13, 2023
Item No: 2.
Department: City Council
Issue: Hear an overview of the June 12 Druid Hills/Uptown
neighborhood tour and meeting.
Summary: A recap of the Druid Hills/Uptown tour and neighborhood
community meeting held at Forest Hills Presbyterian Church located at 725
Beechnut Lane on Monday, June 12th will be given.
Attachments: Inspections Report
Recommendations: This item is being presented for public information
purposes – no action needed by Council.
Property Maintenance/Nuisance Ordinance
Concerns
Property Main. Grass Trash
Inoperable Vehicles Improperly parked Noxious Odor
Publi Nuisance Tree Ponding of Water Non Valid
Property Maintenance - 45
Grass-85
Trash-20
Inoperable Vehicles-7
Improperly parked vehicle-0
Noxious Odor-0
Public Nuisance Tree-0
Ponding of Water-0
Non-Valid Complaints-0
Demolitions
1 demolition completed
City Council
Agenda Summary
Date: June 13, 2023
Item No: 3.
Department: City Council
Issue: Conduct a public hearing for the purpose of receiving names of
citizens interested in appointments for two 3-year terms ending June 30, 2026,
and one unexpired 3-year term ending on June 30, 2024 on the Martinsville City
School Board.
Summary: Pursuant to Code of Virginia § 22.1-29.1, a public hearing is
necessary to introduce and consider names of persons interested in appointment
to a vacancy on the Martinsville School Board and to receive the views of citizens
within the school division. This state code section also states that no nominee or
applicant whose name has not been considered at the public hearing shall be
appointed as a school board member. Further, the actual appointment must be
made at least seven days after the hearing; appointments will therefore be made at
or after the June 27, 2023 Council meeting following the interview process.
Attachments: Current Martinsville School Board members
Recommended Action: Conduct the Public Hearing and consider scheduling
interviews on June 27th, prior to and/or after Council’s meeting on that date
depending on number of candidates (unless Council desires a different schedule).
Candidates selected for the Board appointments will be announced after interviews
are completed.
City Council
Agenda Summary
Meeting Date: June 13, 2023
Item No: 4.
Department: City Manager
Issue: Hear a presentation from Site Collaborative regarding
Martinsville’s Public Parks Improvements Plan.
Summary: At several Council meetings in early 2022, there was
discussion about use of ARPA funds with a number of recommendations made by
staff, one being to upgrade City parks. Council eventually agreed to earmark
$500K of APRA funds for that purpose.
Following that, West Piedmont PDC assisted with a grant application to USDA for
funding to facilitate a park study update to be used as a starting basis for park
upgrades. The City was notified later in 2022 that the application was successful
and a $40,000 grant was awarded (with $10,000 local match). In early 2023, a
request for proposals was issued soliciting responses from firms interested in
contracting for the City’s park study update, interviews were conducted with the
assistance of WPPDC, and Site Collaborative, a firm based out of Raleigh, NC with
an office in Danville, VA was selected to move forward with the project.
At Council’s meeting on June 13, representatives from Site Collaborative will
provide a brief overview of their firm and plans for immediately moving forward
with community outreach to solicit input on Martinsville’s park upgrades.
Attachments: None, information will be presented at the meeting
Recommendations: No Council action is necessary
City Council
Agenda Summary
Meeting Date: June 13, 2023
Item No: 5.
Department: City Manager
Issue: Consider approval of a resolution supporting an Industrial
Revitalization Fund application to Virginia Department of Housing & Community
Development for the development project at One Ellsworth.
Summary: An opportunity for funding of “shovel ready” mixed-use projects was
just recently advertised through the Virginia Department of Housing and
Community Development. The funding comes through the FY2024 Industrial
Revitalization Fund program, and DHCD has $10 million in available funding for
projects across the state. Up to $5 million is available for individual projects and
a 1:1 match is required. If an award is made as a loan, the interest rate is 2.5%
and amortization is up to 20 years, negotiated on a project by project basis.
Information was made available to the project development team for possible
consideration for One Ellsworth (a.k.a. the BB&T building) and they would like to
apply. This project is a good match for the program. The City will need to be the
applicant; DHCD staff have indicated there is no financial liability to the City, and
if an award is made the City could have the option of administering the loan to the
developer or allow Virginia Community Capital to administer the loan.
Several meetings have been held with the project development team and
communications have occurred between all parties and staff from DHCD.
Applications are due later this month and if an award is made, it will be necessary
to execute a performance agreement outlining all of the terms and conditions.
Attachments: Resolution
Recommendations: Staff recommends approval of the resolution (motion,
second, and voice vote).
Council Members City Manager
LC Jones, Mayor Leon E. Towarnicki
Aaron Rawls, Vice-Mayor Clerk of Council
Kathy Lawson Karen Roberts
Lawrence Mitchell
Tammy Pearson
RESOLUTION
SUPPORTING AND AUTHORIZATING APPLICATION FOR UP TO
$5,000,000 IN FUNDING TO VIRGINIA DHCD UNDER THE FY2024
INDUSTRIAL REVITALIZATION FUND (IRF) PROGRAM
WHEREAS, the Virginia Department of Housing and Community Development has indicated
funds up to $10 million are available for eligible projects, administered through the Industrial
Revitalization Fund (IRF) program with up to $5,000,000 as a maximum award per project with
a 1:1 match; and
WHEREAS, the current redevelopment project underway at the former BB&T building uptown
now known as One Ellsworth has been deemed to be an eligible project; and
WHEREAS, the required match of up to $5,000,000 will be provided by the development team
and will also be expended on this project - it is projected that the adaptive reuse project will
provide permanent jobs for 40 employees (determined through calculations of employment in
commercial spaces) and will also support 36 construction jobs during an 18-month period; and
WHEREAS the redevelopment project will create 68 new residential apartment units and
several commercial spaces for lease, providing significant ancillary benefits due to increased
economic activity from an infusion of more residents to the Uptown area;
NOW THEREFORE, BE IT RESOLVED that the City of Martinsville wishes to apply for up
to $5,000,000 of Industrial Revitalization Funds for One Ellsworth: Mixed-Use Adaptive Reuse
in Uptown for generating a mixed-use complex with housing and commercial spaces; and
BE IT FURTHER RESOLVED that Leon Towarnicki, City Manager, is hereby authorized to
sign and submit appropriate documents for the submittal of this Industrial Revitalization Fund
proposal.
Attest:
_______________________________
Karen Roberts, Clerk of Council
June 13, 2023
Date Adopted
55 West Church Street, P. O. Box 1112, Martinsville, VA 24114-1112 276-403-5180 Fax: 276-403-5280
www.martinsville-va.gov
City Council
Agenda Summary
Meeting Date: June 13, 2023
Item No: 6.
Department: City Council
Issue: Consider approval of amended Budget Ordinance 2023-U-1 on
second reading.
Summary: The City’s proposed FY24 Budget was presented to Council at
the April 25, 2023 meeting. Work sessions were held on Wednesday, May 10 with
Schools, certain outside agencies, and a review of capital; with City departments
and certain outside agencies on Tuesday, May 16, and Wednesday, May 17. An
additional work session was scheduled for Monday, May 22 and the Budget Public
Hearing and approval on first reading (subject to certain changes) occurred at
Council’s last meeting on May 23.
The budget as presented included leaving tax rates and fees at the FY23 levels with
the exception of a recommended 8% increase in electric rates, included a reduction
in School funding of $750,000, and included an overall 5% reduction for most City
departmental budgets Additional information presented at May 16 work session
also recommended $3 increase in both water and sewer rates. At the May 17th
work session staff was instructed to eliminate the use of ARPA funding from the
budget and to reduce the real estate tax rate from $1.04/$100 to $0.99/$100, the
net effect of which was to reduce $1,544,494 in revenue. At the work session on
Monday, May 22, staff presented a plan to accommodate that as outlined in the
attached summary presented at the budget public hearing.
After discussion at the public hearing on May 23, staff was instructed to develop
an additional reduction of approximately $270,000, sufficient to restore funding
for 2 police officers and 2 teachers. The net effect is to restore approximately
$145,000 to the Police Department’s original 5% budget reduction, and reduce the
original school budget reduction from $750,000 to $625,000. Council approved
the budget on first reading subject to the changes presented at the public hearing
as well as staff developing additional reductions of approximately $270,000 for the
purposes noted. Staff has developed a plan for that, and information will be
presented at the June 13 meeting.
Attachments: Amended Ordinance 2023 –U-1, outlining fund details of the
proposed City’s FY23-24 Budget; copy of the summary presentation from the May
23 meeting.
Recommendations: (1) Motion to amend Ordinance 2023-U-1 to conform to the
changes noted (voice vote) and; (2) motion to adopt Ordinance 2023-U-1 as
amended on second reading (roll call vote).
2
City of Martinsville
ORDINANCE NO. 2023-U-1
The Budget for Fiscal Year 2023-2024
BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in regular Session assembled June 13,
2023, that the following sums of money be and hereby are appropriated – by specific Fund – for the City’s
fiscal year ending June 30, 2024, from the following Fund sources of estimated revenue:
SUMMARY STATEMENT OF BUDGET ESTIMATES
2023-2024
PROJECTED BUDGETED CHANGES
FUND
FUND REVENUES EXPENDITURES BALANCE
General $34,955,302 $37,500,868 ($2,545,566)
Meals Tax $3,072,721 $3,072,721 $0
Capital Reserve $1,545,318 $1,545,318 $0
Refuse $2,081,200 $2,709,704 ($628,504)
Telecom $2,023,651 $2,023,651 $0
Water $4,143,760 $4,820,438 ($676,678)
Sewer $4,854,012 $7,119,720 ($2,265,708)
Electric $23,539,063 $23,293,362 $245,701
CDBG $2,700 $172 $2,528
Cafeteria* $1,700,641 $2,069,368 ($368,727)
School Operating* $25,133,772 $25,133,772 $0
TOTALS: $103,052,140 $109,289,094 ($6,236,954)
*Cafeteria and School Operating Funds information provided by School
Personnel.
Tax Rates:
Real Estate: $0.99/$100 assessed value (reduced from $1.04/$100)
Personal Property: $2.30 per $100 assessed value (unchanged)
Machinery/Tools: $1.85 per $100 assessed value (unchanged)
Cigarette Tax: *$0.40 per pack – (increased from $0.30/pack)
Lodging Tax: *7% of total lodging bill (increased from 2%)
Electric Rate:
Average 8% increase
Water & Sewer Rates:
Increase in monthly rates of $3 each
• Cigarette & Lodging tax increase effective September 1, 2023, by separate ordinance
BE IT FURTHER ORDAINED by said Council that this Ordinance shall be effective on and after July 1, 2023.
Attest:
________________________ ____________________ ___________________
Karen Roberts, Clerk of Council Date Adopted Date Effective
FY24 Budget Public
Hearing Summary
TUESDAY, MAY 23, 2024
Summary
FY 24 Budget was presented at Council’s April 25, 2023 meeting. No action taken at that
meeting.
Budget key points as presented:
Kept current real estate tax rate at $1.04/$100. Due to reassessments and increased values, an
estimated increase in real estate tax revenue of approx. $1.2 M was included in the budget
Proposed 8% electric rate increase
Reduced school funding of $750,000 over the requested $6,167,637
5% budget reduction for most City departments
Level funding for outside agencies except for certain agencies (911, DSS)
Follows state lead on COLA for employees & constitutionals @ 7%. Still undecided
Summary
One personnel addition – law clerk for Circuit Court (confirmed to be a one year position); hiring
freeze in other areas.
A required public hearing was held at Council’s May 9 meeting due to increased real estate tax
assessments and the resulting increase in the effective tax rate.
Budget work session was held on May 10 with City Schools and to review capital. A second
session was held on May 16 with outside agencies (911, DSS, Library) followed by a review of
City constitutional and departmental budgets. It was noted between the time of the initial
budget presentation on April 25 and May 16, it was concluded both a water and sewer rate
increase were needed, and a recommended $3 increase for each was discussed. A third work
session was held on May17 to discuss the previous sessions and answer questions. Alternate
budget recommendations were made by Vice Mayor Rawls, a fourth work session was scheduled
for Monday, May 22, and staff was instructed to develop an alternate budget that reduced the
real estate tax rate by $0.05/$100, and eliminated the use of ARPA funds.
Budget Work Session
Revisions From 5/17 Work Session
MONDAY, MAY 22, 2023 6 PM
From 5/17/23 Work Session
•Eliminate Use of ARPA Funds $1,194,494
•Reduce real estate tax by $0.05/$100 from current $1.04/$100 to
$0.99/$100, for a net effect of reducing real estate tax revenue by
approximately $350,000.
•Total reduction of $1,544,494
Staff Recommendations
Meals Tax Transfer $300,000 $300,000
Refuse Fund Transfer $300,000 $600,000
Water Fund Transfer $250,000 $850,000
Increase Bus License Revenue $200,000 $1,050,000
Increase HB599 $ 43,216 $1,093,216
Increase Transport Revenue $ 87,400 $1,180,616
Court Reporter Revenue $ 10,000 $1,190,616
Jail/Jail Annex Food Red $ 40,000 $1,230,616
Staff Recommendations
MiNet Capital Reduction $100,000 $1,330,616
Lodging Tax Increase $20,000 $1,350,616
Delay Asst. CM Pos 6 months $68,213 $1,418,829
E –time software 1st year MA $35,000 $1,453,829
Delay CD Director Pos 6 mos $65,928 $1,519,757
Increase use of GF UFB $24,737 $1,544,494
Recommended Actions Tonight
Conduct Public Hearing and accept comments.
Council decides what to leave in the budget, remove, change, modify, etc. A motion, second,
and vote can be held on individual issues, or collectively a group of issues.
If Council decides to transfer funds from the Meals Tax Fund, a motion, second, and vote will be
appropriate since this will be a deviation from a policy previously established by Council.
Once all the budget changes approved, it will be necessary for Council to approve the FY24
budget ordinance (as modified by any such changes), with motion, second, and roll call vote.
Final adoption and second reading is scheduled for Tuesday, June 13.
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