City Council

132 OTHER BUSINESS: ARCHITECTURAL REVIEW BOARD: The Mayor advised that Roy Bucher, President/Chairman, Chas. Lunsford Sons & Associates, has requested that his Petition for Appeal regarding the decision of the Architectural Review Board at its meeting of July 14, 2016, approving a Certificate of Appropriateness for an aluminum sign located at 20 E. Church Avenue, S. E., be withdrawn, inasmuch as the issue had since been resolved. HEARING OF CITIZENS UPON PUBLIC MATTERS: The Mayor advised that City Council sets this time as a priority for citizens to be heard. All matters would be referred to the City Manager for response, recommendation or report to Council, as he may deem appropriate. GUNS: The following persons appeared before Council and spoke in opposition of a proposal to ban loaded weapons in public places and citizens' right to bear arms: Jay Pilot, 364 Koogler Drive, N. W., Crystal Carter, 202 Maplelawn Avenue, N. E. Daniel Highberger, 1627 Main Street, S. W. Nick Harvey, 1157 Wapiti Run Road, Moneta, Virginia 24121 There being no further business, at 7:59 p.m., the Mayor declared the meeting in recess to be reconvened on Friday, September 23, 2016, at 8:30 a.m., in the Community Room, Raleigh Court Library, 2112 Grandin Road, S. W., for the purpose of taking action to approve the 2015 - 2016 HUD Consolidated Annual Performance and Evaluation Report for the U. S. Department of Housing and Urban Development and the Annual Council Strategic Planning Work Session. The Council meeting reconvened on Friday, September 23, 2016, at 8:30 a.m., in the Community Room, Raleigh Court Library, 2112 Grandin Road, S. W., for the purpose of taking action to approve the 2015 - 2016 HUD Consolidated Annual Performance and Evaluation Report for the U. S. Department of Housing and Urban Development and meet in the Annual Council Strategic Planning Work Session, with Mayor Sherman P. Lea, Sr., presiding. PRESENT: Council Members David B. Trinkle, William D. Bestpitch, Michelle L. Dykstra (arrived late), Raphael E. Ferris, John A. Garland, Anita J. Price and Mayor Sherman P. Lea, Sr.-7. ABSENT: None-0. The Mayor declared the existence of a quorum.  133 OFFICERS PRESENT: Christopher P. Morrill, City Manager; Daniel J. Callaghan, City Attorney; Barbara A. Dameron, Director of Finance; and Stephanie M. Moon Reynolds, City Clerk. OTHERS PRESENT: R. Brian Townsend, Assistant City Manager for Community Development; Sherman M. Stovall, Assistant City Manager for Operations; and R. B. Lawhorn, Budget Administrator. Mayor Lea welcomed everyone to the Strategic Planning Work Session and stated the purpose for the session was to approve the 2015 - 2016 HUD Consolidated Annual Performance and Evaluation Report for the U. S. Department of Housing and Urban Development and to hold the Annual Council Strategic Planning Work Session. HOUSING: The City Manager submitted a written communication recommending approval of the 2015 - 2016 HUD Consolidated Annual Performance and Evaluation Report (CAPER). (For full text, see communication on file in the City Clerk's Office.) Council Member Trinkle offered the following resolution: (#40655-092316) A RESOLUTION approving the 2015- 2016 HUD Consolidated Annual Performance and Evaluation Report (CAPER) regarding the United States Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program; and authorizing the City Manager to submit the CAPER to HUD. (For full text of resolution, see Resolution Book No. 78, page 467.) Council Member Trinkle moved the adoption of Resolution No. 40655-092316. The motion was seconded by Council Member Bestpitch and adopted by the following vote: AYES: Council Members Trinkle, Bestpitch, Ferris, Garland, Price and Mayor Lea-6. NAYS: None-0. (Council Member Dykstra was not present when the vote was recorded.) The City Manager opened up the session by thanking the City budget staff, introducing Paul Workman, Katie Davis and Acquanetta Harris, Budget Business Analysts respectively, in the Department of Management and reviewing the following items for discussion: 134 At this point, Council Member Dykstra entered the meeting. (8:38a.m.) • Alliance for Innovation Exercise • Setting the Stage o Vision, Guiding Principles, and Priorities • Revenue Trends • BFO Priorities/Offers • Reserves • Outside Agency and Public Arts Funding • FY2018 Strategic Issue Discussions • Priority Confirmation and Direction • CDBG Overview • Parking Fund Review • Capital Improvement Plan Overview • Budget Briefing Opportunities • What Should We Focus on? • Wrap-Up Alliance for Innovation Exercise Aisha Johnson, Assistant to the City Manager advised that "The Next Big Things Report" was created by the Alliance for Innovation; a Phoenix, Arizona based non-profit organization that prepares local governments for future challenges. By partnering with Arizona State University and the International City/County Management Association, the Alliance published the report in September 2015 focusing on what could impact communities 20 years from now. The report identifies four forces and 44 trends that could impact communities. The four forces include resources, technology, demographics, and governance. She highlighted the following four topics: Resources • The availability of resources is most closely tied to survival and the most important force. Resources include the food, water, air, habitat, and other material nature offers. Especially important are the resources that enable energy production. Trends and resource drivers related to this force include climate, ocean, space, energy, minerals, water, land, food, animals, and forest.  135 Technology • Technology includes the tools and knowledge we use to extract and transform resources into new products and capacities that make our lives more comfortable and convenient, or to develop capabilities beyond our physical bodies that allow us to go places and discover new realities. Trends and drivers related to this force include genetics, robotics, information, nanotechnology, healthcare, education, collaboration, virtual reality, games, telephony, manufacturing, infrastructure, and capital formation. Demographics • Demographics are the "who" behind society's changes. People are producers through physical and intellectual labor, so "who" is producing matters, e.g., Does your community have enough working people to support your very young and very old?; Do you have the right ratio of women to men?; Is there enough social cohesion among groups to ensure the good of the community? Trends and resource drivers related to this force include population growth, the developing world, industrialization, immigration, multiculturalism, multilingualism, nationalism, and conflict. Governance • Distribution and management of society's assets-resources, technology and people-are administered through the rule of law and the rule of markets. Of all the forces, governance is the most reactive, i.e., changes in resources, technology, and people often run ahead of governmenfs capability to deal with them. Trends and drivers related to this force include tribalism, market drivers, values, interests, beliefs, online communities, personalization, polarization, and identity politics. (See copy of presentation and full report on file in the City Clerk's Office.) R. B. Lawhorn, Budget Administrator, advised that as a part of the Budgeting for Outcome process, City departments and outside agencies submit requests for funding to encompass their activities and are assigned to one of the City's seven priorities based upon the content of the activity. He highlighted the following topics: • Vision Statement • Guiding Principles • City of Roanoke Priorities • Revenue Trends o Selected Taxes as a percent of Total Revenue- 2017 Adopted o Assessed Value of Real Property Increased $66,983,600 or 1.0% from 2016 o 2016 Real Estate Revenues Exceeded Previous Highest Year of 2012 136 o Sales Tax Receipts Increased from 2016 o Business/Professional/Occupational Licenses (BPOL) Increased $656,000 or 5.1% from 2016 o Prepared Food and Beverage Tax Increased $295,000 or 1.9% from 2016 o Transient Occupancy Tax Increased $294,023 or 6.8% from 2016 o Intergovernmental Revenues Have Not Yet Returned to Pre-Recession Levels o Revenue Adjusted for Inflation (The City has $22.7 Million Less in Buying Power in FY 2017 than in FY 2008) In response to an inquiry from Council Member Ferris with regard to the communications tax, the Director of Finance explained that the communications tax encompassed landline telephones, mobile telephones and cable lines. Council Member Ferris commented that the City needed to replace sales tax revenue with an alternative within the next five years because it would continue to deteriorate. Mr. Lawhorn continued with the presentation: • FY 2017 Budget • BFO Priority Allocations o Education o Safety o Human Services o Infrastructure o Good Government o Livability o Economy • Non-Departmental: $24,601,692 • 5 Year Financial Model • Reserves • Outside Agency Funding Discussion ensued with regard to many outside agency requests including Blue Ridge Behavioral Healthcare, Market Building Support, Mill Mountain Zoo and Virginia Cooperative Extension which were funded by agreement. Council Member Ferris inquired if the $2,880.00 allocated for the NCAA Championship, to be held in the City of Salem, was an in-kind contribution; whereupon, the City Manager replied that it was a cash contribution.  137 Council Member Trinkle asked how the City Works XPO and Co Lab funding benefited the City of Roanoke; whereupon, the Manager advised that the exposure and connections were extremely beneficial. • Percent for Arts Mr. Lawhorn explained that the annual budget for the Percent for the Arts program was equivalent to one percent of the construction cost for each new construction or major renovation of public buildings included in the Capital Improvement Plan, with a maximum allocation of $100,000.00 per eligible project. Council Member Bestpitch inquired if the Percent for Arts information could be reviewed in a projected three to five year timeframe and adjusted every year to provide some sense of what would be allocated. Council Member Trinkle added that with so much fluctuation in the projects, the equalization would not be feasible, but it would be great to have a formula in place to eliminate the fluctuations. At this point, Council Member Trinkle left the meeting. (12:02 p.m.) The Assistant City Manager for Community Development advised that for the current year the one percent was for the Williamson Road Library Project, but not deducted from that specific project, it was funded from the Capital Projects Fund; whereupon, the Assistant City Manager for Operations added that it was funded from excess debt funding as it was built in advance of debt issuance to allow for spending on one-time expenses. Mr. Townsend advised that based upon the Capital Improvement Program, that the requested information could be compiled and shared during the upcoming budget process. Mr. Stovall highlighted the following information: • FY 2017-2018 Strategic Issues/Challenges • Priority Confirmation and Direction Council Member Bestpitch suggested that the "All Other Revenues" category be reviewed and report back to Council on how much was indicated as State and Federal funding. 138 Council Member Ferris asked if every area for revenue generation had been looked at within the confines of the City Code, reviewed what other localities were doing or not doing in terms of generating revenue; whereupon, the City Attorney advised that based upon the City Code it was very limited as to what could be done and further advised that he would compile the information and report back to Council. Council Member Bestpitch brought to attention a discrepancy on the Real Estate Tax Statement and suggested that it be revised to read more clearly; whereupon, the City Manager agreed and noted the changes. The Assistant City Manager for Community Development highlighted the following topics: • HUD Overview He advised that annual funding for the Community Resources division was comprised of the Community Development Block Grant (CDBG), HOME Investment Partnership Program, Emergency Solutions Grant (ESG), as well as some additional program income that varies from year to year; and from 2004 to 2016, CDBG Entitlement funding had decreased by 31 percent and HOME funding decreased by 49 ~""' percent. He also noted that if grant funds of $30 million were received it would be used to supplement the General Fund in the Melrose-Orange Target Area (MOTA). Vice-Mayor Price inquired if the proposed plan for Horton Park and the Melrose Library Project were separate from the outcome of the Choice Neighborhood Award Grant; whereupon, Mr. Townsend indicated that those projects were not contingent upon the grant. Council Member Dykstra inquired if the CDBG funding was allocated by a formula or if the City applied for a certain amount of funds. Mr. Townsend advised that the City of Roanoke was an entitlement community and the funding amount was set annually by the United States Department of Housing and Urban Development (HUD). • Parking Fund Financial Review Council Member Dykstra suggested g1v1ng consideration to business owners having access to downtown parking at the residential rate in an effort to open up on- street parking spaces for citizens.  139 Mr. Townsend advised that there were 4,000 parking spaces downtown in which 3, 700 were paid spaces, so there was not enough spaces remaining to accommodate the business owners because within those 300 spaces hourly parkers were included. Council Member Ferris inquired if there were potential sites for a future parking facility needed in the downtown area; whereupon, the City Manager advised that the City does own parking lots and were looking at sites to purchase. The Assistant City Manager for Operations highlighted the following information: • Capital Improvement Plan Overview • Debt Issuance Planning FY 2017-2021 • Capital Improvements- Buildings • Capital Improvements· Economic Development • Capital Improvements - Parks • Capital Improvements - Schools • Capital Improvements - Storm Drains • Capital Improvements· Bridges, Streets & Sidewalks Discussion ensued with regard to a multi-modal station to accommodate passenger rail and bus transit; whereupon, Council Member Ferris suggested not to focus on the multi-modal aspect and just construct a station to accommodate passenger " rail. • Capital Improvements • Berglund Center Renovations • Projects not Currently in Capital Improvement Plan Mr. Stovall advised that the City was not successful in securing Smart Scale funding for the projects not currently in the Capital Improvement Program and until the City invested funding into those projects, scoring with the Smart Scale pogrom would be low. Council Member Bestpitch inquired if a private developer could share in those costs; whereupon, the City Manager advised that it was a possibility if a private developer could be secured. • FY 2018 Budget Briefings • Council Briefings: o January: Local Tax Projection, Non-Discretionary Cost Increases, Retirement, 5 Year Financial Plan o February: Price of Government, Offers by Priority, Capital Planning o March: Ranked Offers by Priority, Capital Planning 140 o April: Balancing Strategies, Revenue Adjustments/Enhancements, Capital Planning, Cash Funding for One-Time Expenses o April: Presentation of FY 2018 Recommended Budget o May: Budget Study and Adoption of FY 2018 Budget • What should we focus on? (See copy of presentation on file in the City Clerk's Office.) During a portion of discussion by the Council, the following items were considered: • Creation of a Master Calendar to include neighborhood organization activities • Removal of the upper case sentence structure from Council Consent Agenda There being no additional questions and/or comments by the Council, Mayor Lea expressed appreciation to the City staff for their hard work and great presentation. There being no further business, the Mayor declared the Recessed Meeting adjourned at 3:01 p.m. APPROVED ATTEST: ~(77·~4~ Stephanie M. Moon Reynolds, MMC Sherman P. Lea, Sr. City Clerk Mayor