City Council Work Sessions

City Council Work Session January 16, 2019 Work Session of the Suffolk City Council was held in the City Council Chamber, 442 West Washington Street, on Wednesday, January 16, 2019, 5:00 p.m. PRESENT Council Members - Linda T. Johnson, Mayor, presiding Leroy Bennett, Vice Mayor Michael D. Duman Roger W. Fawcett Donald Z. Goldberg Timothy J. Johnson Curtis R. Milteer, Sr. Lue R. Ward, Jr. ABSENT None. Patrick G. Roberts, City Manager Helivi L. Holland, City Attorney Erika S. Dawley, City Clerk ABSENT None PRESENTATION OF THE FISCAL YEAR 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT Finance Director Tealen Hansen introduced Rob Churchman, Partner, Cherry Bekaert, LLP, the City’s auditors. Utilizing a PowerPoint presentation, Mr. Churchman offered information on the above referenced item. Mayor Johnson called for clarification of the other post-employment benefits, as it relates to both the City of Suffolk and Suffolk Public Schools. Mr. Churchman explained that the reporting of those benefits is required for both the City of Suffolk and Suffolk Public Schools. FINANCIAL ADVISOR UPDATE Utilizing a PowerPoint presentation, David Rose, Senior Vice President, Davenport and Company, the City’s financial advisors, gave a report on the above referenced item. Referring to the presentation, Council Member Duman queried about the impact of the proposed increase to the Unassigned Fund Balance percentage, as it relates to the bond rating agencies. Mr. Rose stated that the proposed incremental increase to the Unassigned Fund Balance percentage could prove beneficial in the future in the event of a financial downturn. He added that a specific percentage has not been recommended at this time in order to insure that any increase would be feasible. 1 City Council Work Session January 16, 2019 Referring to the presentation, Council Member Duman inquired about the feasibility of paying cash for fleet vehicles needs and using borrowed funds for information technology improvements. Mr. Rose replied that currently short term borrowing is being considered that matches the life of the information technology equipment, but a final recommendation has yet to be determined. Council Member Goldberg requested information about the methodology other localities have used to increase their Unassigned Fund Balance percentage. Mr. Rose advised that any type of increase would occur over a period of time, and that timeline has yet to be determined. Referring to the presentation, Mayor Johnson asked about the length of time the City’s Unassigned Fund Balance percentage has been set at 12%. Mr. Rose said that it has been 12% since 2010. City Clerk Dawley presented the Closed Meeting motion for City Council’s consideration: 1. Pursuant to Virginia Code Sections 2.2-3711(A)(8) and (A)(1), the consultation with legal counsel employed by a public body regarding specific legal matters requiring the legal advice of such counsel, and the discussion, consideration, or interviews of prospective candidates for appointment and the assignment, appointment, and performance of specific public officers or appointees of the City, specifically the appointments as shown on the attached list for vacancies or term expirations for Early Childhood Development Commission, Economic Development Authority of the City of Suffolk, Historic Landmarks Commission, Senior Services of Southeast Virginia, Suffolk Redevelopment and Housing Authority, Tidewater Youth Services Commission, Western Tidewater Community Services Board and Wetlands Board; and 2. Pursuant to Virginia Code Section 2.2-3711(A)(5) and (A)(8), the discussion of 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; and consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel, specifically concerning an Economic Development Incentive Program proposal regarding Project Showtime. Council Member Fawcett, on a motion seconded by Council Member Milteer, moved that City Council convene in a closed meeting for the above referenced purpose, by the following roll call vote: AYES: Mayor L. Johnson, Vice Mayor Bennett, and Council Members Duman, Fawcett, Goldberg, T. Johnson, Milteer and Ward 8 NAYS: None 0 City Council convened in Closed Meeting at 5:40 p.m. The Closed Meeting concluded at 6:35 p.m. Teste: _____________________________________________ Erika S. Dawley, MMC, City Clerk Approved: _________________________________________ Linda T. Johnson, Mayor APPROVED: FEBRUARY 6, 2019 2