City Council Work Sessions

City Council Work Session June 16, 2021 Work Session of the Suffolk City Council was held in the City Council Chamber, 442 West Washington Street, on Wednesday, June 16, 2021, 4:00 p.m. PRESENT Council Members - Michael D. Duman, Mayor, presiding Leroy Bennett, Vice Mayor Shelley Butler Barlow Roger W. Fawcett Donald Z. Goldberg Timothy J. Johnson Lue R. Ward, Jr. (arrived at 4:45 p.m.) LeOtis L. Williams Erika S. Dawley, City Clerk William E. Hutchings, Jr., Interim City Attorney Albert S. Moor, City Manager ABSENT None PLAN OF FINANCE AND FUND BALANCE POLICY UPDATE Utilizing a PowerPoint presentation, David Rose, Senior Vice President, Davenport and Company, the City’s financial advisors, gave an update about the above referenced item. Referring to the presentation, Council Member Johnson opined about the proposed creation of a Budget Stabilization Fund, as it relates to the Capital Reserve Fund. Mr. Rose explained the creation of a Budget Stabilization Fund is meant to shore up the operating budget when an unexpected occurance negatively impacts City coffers. Referring to the presentation, Council Member Johnson queried about the reserve percentages of most localities with a triple a bond rating. Mr. Rose said that while it depends on the the locality and their revenue streams, most municipalities with a triple a bond rating maintain 20% to 30% in their Unassigned Fund Balance. Referring to the presentation, Council Member Goldberg asked about the feasibility of achieving the same financial goals, should the City adopt a reserve policy of 18%. Mr. Rose said that the same goals could be achieved, but the City has consistently been over 20%, so the bond agencies would see the higher reserves positively. Council Member Goldberg asked about spending authority over excess funds. Mr. Rose advised that City Council still has ultimate authority over how overages are spent after the guidelines for reserves have been met. 1 City Council Work Session June 16, 2021 Referring to the presentation, Council Member Fawcett asked if money in the Budget Stabilization Fund and Capital Reserve Fund was restricted on the types of use or could be used interchangeably. Mr. Rose stated as a practical matter the funds could ultimately be used for Capital Reserve Fund projects after the 2.5% savings has been realized in the Budget Stabilization Fund. Council Member Fawcett opined whether the Budget Stabilization Fund would hamstring future City Councils’ spending. Mr. Rose theorized that the policies should allow flexibility if requirements are met. Referring to the presentation, Vice Mayor Bennett solicited confirmation that reserve funds were not to be used for operating costs, such as raises. Mr. Rose replied in the affirmative. Vice Mayor Bennett asked about the impact of a Budget Stabilization Fund on the City’s bond rating. Mr. Rose agreed that the new policy would be favorable to the City’s bond rating agencies. Referring to the presentation, Mayor Duman called for clarification about the use of the 2.5 % could be applied to the Budget Stabilization Fund, as the Unassigned Fund Balance is 22.5%. Mr. Rose advised that essentially that is the current practice, and the amount put toward the Budget Stabilizaation Fund would depend on the size of the annual surplus. Mayor Duman asked whether pay-go would be impacted by this policy change. Finance Director Tealen Hansen replied that currently pay-go items are paid for out of anticipated surpluses. She elaborated that beginning in Fiscal Year 2023, pay-go projects would be paid for out of the Capital Reserve Fund. RESUMING TRANSIT FARES ON JULY 1, 2021 Utilizing a PowerPoint Presentation, Department of Public Works Fund Manager Natoya Nelson provided a report on the above referenced item. UTILITY RELIEF PROGRAM UPDATE Utilitizing a PowerPoint Presentation, Interim Public Utilities Director Paul Retel provided an update on the above referenced item. Referring to the presentation, Mayor Duman asked whether he knew how many domiciles out of the City’s delinquent accounts would qualify for the phase 2 program. Interim Public Utilities Director Retel estimated that more accounts would qualify in phase 2 than in phase 1. Mayor Duman asked about available options for those accounts that do not qualify for the federal utility relief program. Interim Public Utilities Director Retel confirmed that payment plans can be arranged to avoid cutoff. CLOSED MEETING 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 2 City Council Work Session June 16, 2021 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 Clean Community Commission, Clean Community Commission Keep Suffolk Beautiful Executive Board, Community Policy and Management Team, Early Childhood Development Commission, Economic Development Authority the City of Suffolk, Fine Arts Commission, Historic Landmarks Commission, Human Services Advisory Board, Library Advisory Board, Local Board of Building Code Appeals, Parks and Recreation Advisory Commission, Paul D. Camp Community College Board, Planning Commission, Sister Cities Commission, Suffolk Redevelopment and Housing Authority Board of Commissioners, The Planning Council, and Wetlands Board, and the appointment of the City Attorney. Council Member Fawcett, on a motion seconded by Council Member Goldberg, moved that City Council convene in a closed meeting for the above referenced purposes, by the following roll call vote: AYES: Mayor Duman, Vice Mayor Bennett, and Council Members Butler Barlow Fawcett, Goldberg, Johnson, Ward and Williams 8 NAYS: None 0 City Council convened in Closed Meeting at 4:56 p.m. The Closed Meeting concluded at 5:55 p.m. Teste: ____________________________________________ Erika S. Dawley, MMC, City Clerk Approved: _________________________________________ Michael D. Duman, Mayor APPROVED: DECEMBER 15, 2021 3