City of Manassas, Virginia. Finance Committee Meeting AGENDA. Finance Committee Meeting
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1 City of Manassas, Virginia Finance Committee Meeting AGENDA Finance Committee Meeting 9027 Center Street Manassas, VA Second Floor Conference Room Wednesday, November 14, 2018 Call to Order - 5:30 p.m. 1. Action Items 1.1 Minutes: October 10, 2018 Finance Committee Meeting Minutes: October 10, Consideration of Resolution R Amending the FY 2019 Budget by Transferring $8,100 from General Fund Contingency to Increase the Assistant Registrar Positions from a Combined Total of 0.75 FTE to 1.00 FTE (Reed) Agenda Statement R: Amending the FY 2019 Budget by Transferring $8,100 from General Fund Contingency to Increase the Assistant Registrar Positions Resolution R Resolution R Backup: Assistant Registrars FTE Increase Resolution R Backup: General Fund Contingency Status 1.3 Consideration of Ordinance O : Amending Section of Article III (Local vehicle License) of Chapter 114 (Traffic and Vehicles) Related to the Local Vehicle License (Craig Brown and Bryan Foster) Agenda Statement O : Amending Section of Article III of Chapter 114 Related to the Local Vehicle License Ordinance O Consideration of Resolution R Amending the FY 2019 Budget by Budget and Appropriating $28,250,000 for New Water and Sewer Projects AND Consideration of Resolution R Official Intent to Reimburse Expenditures with Proceeds of a Borrowing for Water and Sewer System Improvements (Diane Bergeron and Bryan Foster) Finance Committee Finance Committee Meeting November 14, 2018 Page 1 1
2 Agenda Statement for R and R : Amending the FY 2019 Budget by Budget and Appropriating for New Water and Sewer Projects AND Official Intent to Reimburse Expenditures Resolution R Resolution R Reports / Updates 3. City Manager's Time - Update from the Treasurer and City Manager on Banking Services - Update on Annaburg Manor Adjournment Finance Committee Finance Committee Meeting November 14, 2018 Page 2 2
3 MINUTES OF THE CITY COUNCIL FINANCE COMMITTEE WEDNESDAY, OCTOBER 10, 2018 SECOND FLOOR CONFERENCE ROOM CITY HALL - MANASSAS, VA COMMITTEE MEMBERS PRESENT: COMMITTEE MEMBERS ABSENT: Council Member Marc T. Aveni, Chair Vice Mayor Sheryl L. Bass Council Member Pamela J. Sebesky (Alternate) Council Member Ken D. Elston OTHERS PRESENT: Mayor Harry J. Parrish II, Council Member Ian Lovejoy, Council Member Mark D. Wolfe, City Manager Pat Pate, Deputy City Manager Bryan Foster, City Attorney Craig Brown, City Clerk Andrea Madden, Airport Director Juan Rivera, Finance Director Diane Bergeron, Budget Analyst Amanda Hamm The meeting was called to order at 5:30 p.m. by Council Member Marc T. Aveni, Chair. AGENDA ITEM #1 Approve Minutes of the September 12, 2018 Finance Committee Meeting A motion was made and seconded to approve the minutes of the September 12, 2018 Finance Committee meeting. The Committee approved (3/0). AGENDA ITEM #2 Consideration of Resolution R Amending the FY 2019 Budget by Budgeting and Appropriating a $263,500 Federal Grant, a $23,400 State Grant, and $5,878 from Airport Fund Balance for a New Capital Project Taxiway G and Taxilane Y Juan Rivera presented Staff s recommendation to amend the FY 2019 Budget by Budgeting and Appropriating a $263,500 Federal Grant, a $23,400 State Grant, and $5,878 from Airport Fund Balance for a New Capital Project Taxiway G and Taxilane Y. The Committee approved (3/0). This item will be forwarded to the October 22, 2018 City Council meeting for consideration. This item will be on consent. Reports / Updates N/A City Manager s Time N/A The meeting was adjourned at 5:35 p.m. by Council Member Marc T. Aveni, Chair. 3 October 10, 2018 Page 1
4 City of Manassas Finance Committee 9027 Center Street Manassas, VA Meeting Date: November 14, 2018 Time Estimate: Agenda Title: Recommendation: Date Last Considered by City Council: Summary and/or Comments: 5 Minutes Consideration of Resolution R Amending the FY 2019 Budget by Transferring $8,100 from General Fund Contingency to Increase the Assistant Registrar Positions from a Combined Total of 0.75 FTE to 1.00 FTE Approve Resolution R May 14, 2018 (Adoption of FY 2019 Budget) The Voter Registration Department is requesting additional funds for Assistant Registrar office support to address the increase in data processing. Assistant Registrars help manage and maintain voter registration for over 22,000 registered voters. These costs include, but are not limited to, Assistant Registrar responsibilities of voter registration processing, absentee voting, maintaining election supplies for precincts, voter photo ID and support for all aspects of elections to ensure fair and efficient elections for City residents. The FY 2019 Budget includes authorization for five (5) Assistant Registrar positions for a combined 0.75 FTE hours. Voter Registration is requesting to increase the combined FTE hours authorization by 0.25 FTE to 1.00 FTE. This resolution will transfer $8,100 from General Fund Contingency to the Voter Registration budget in the General Fund and increase the Assistant Registrar position authorization from 0.75 FTE to 1.00 FTE. Board Committee or Commission Reviewed: Fiscal Impact: Staff Contact: N/A $8,100 General Fund Contingency Susan N. Reed, General Registrar, Director of Elections sreed@manassasva.gov (703)
5 RESOLUTION R Adopted: BE IT RESOLVED by the Council of the City of Manassas meeting in regular session this 26 th day of November, 2018, that the following funds be budgeted and appropriated as shown. GENERAL FUND Expenditure: General Fund Contingency (8,100) Voter Registration Salaries 8,100 For: Assistant Registrar FTE Increase SEWER FUND Revenue: Bond Proceeds 13,000, Micron Funds 1,500,000 Expenditure: Sewer Capacity Purchase 13,000, UOSA Micron Ammonia Treatment 1,500,000 SEWER CAPITAL PROJECTS FUND Revenue: C3504 Micron Funds 3,000, C3506 Micron Funds 250,000 Expenditure: C3504 Pond Lining & Aeration 3,000, C " Parallel Force Main 250,000 WATER CAPITAL PROJECTS FUND Revenue: C3502 Bond Proceeds 10,000, C3503 Micron Funds 500,000 Expenditure: C3502 Dean Storage Tank 10,000, C " Water Main Relocation 500,000 For: Water & Sewer Projects 5
6 Resolution R November 26, 2018 Page 2 This resolution shall take effect upon its passage. ATTEST: Harry J. Parrish II MAYOR On Behalf of the City Council of Manassas, Virginia Andrea P. Madden City Clerk 6 11/9/2018
7 City of Manassas Voter Registration & Elections Department Harry J. Parrish Old Town Hall Building 9025 Center Street, Manassas, VA (703) Fax (703) September 28, 2018 W. Patrick Pate City Manager RE: Assistant Registrars Mr. Pate, I am requesting an increase in hours for my 3 Assistant Registrars due to a documented increase of workload in our office processing voter registrations. If you refer to Figure 1 you can see my office had a normal increase of 12.4% between FY 2015 and The workload increased exponentially between FY 2015 and 2018 with an increase of 430.5%. The increase in transactions follows DMV s decision in July 2016 to process voter registrations electronically thereby reducing their workload and passing the workload onto localities. The last two items of documentation (Figures 2 & 3) are the lengthy and detailed instruction manuals based on Virginia Election Code. My staff manages voter data when processing registrations, canceling registrations, transferring registrations and denying registrations; there are letters to send, data to enter or change, registrations scanned, letters scanned, phone calls to contact voters and reports with deadlines to meet. Accuracy is vital to the integrity of our office and is a commitment my office abides by in our Mission Statement. Having to retrain my staff is time consuming, contributes to errors and reduces customer service. I recommend my 3 Assistant Registrars share annually, full time hours of 2080, maintaining no more than 130 hours a month individually. They would not meet the requirements from Federal guidelines for Part Time status nor require benefits. This request would be a decrease in usage from FY2018. Thank you for your consideration and attention to this matter. Susan N. Reed Director of Elections 7
8 City of Manassas Electoral Board and Office of the General Registrar Harry J. Parrish Old Town Hall Building 9025 Center Street, Manassas, VA (703) Fax (703) September 28, 2018 RE: Assistant Registrars W. Patrick Pate City Manager Mr. Pate: Thank you for your of July 30, 2018 regarding Manassas City Office of Elections usage of part time employees as Assistant Registrars. After a thorough review, we believe we can effect some, but not all, of the reduction in usage proposed by Human Resources. Part time Assistant Registrars provide critical services to the City of Manassas Office of Elections with economy and flexibility not available with full time employees. We fully support Director of Elections Reed s request for 2080 part-time hours for FY19. Work Requirements for this authorization are as follows: Annual Hours 1. Voter Registration activities/ Data Processing Election Coverage/In-Person Absentee voting Office Coverage: FT vacation, sick leave Office Coverage: Training 248 Total Voter Registration activities and associated data processing are the main drivers for this request and have shown explosive growth (see attachment 1) since DMV changed its implementation of the National Voter Registration Act (NVRA). Between FY15 and FY18 data transactions grew over 400% for registration at DMV. As shown below this has caused a 140% increase in total database workload during this time. Annual database entries for: FY15 FY16 FY17 FY This request provides 24 hours per week for this activity to fulfill the NVRA mandate. 2. During the 45 days prior to an election, the office offers In-Person Absentee voting and the Assistant Registrars act as Election Officials overseeing the balloting. This request John A. Snider Pamela B. Kincheloe Patricia E. Field Susan N. Reed Chair Vice Chair Secretary General Registrar 8
9 provides an additional person during this period and support on Election Day and during the Election canvas. 3. Office coverage provides a substitute for full time employees at their current rate of accumulating annual and sick leave. 4. Training events include State mandated training, Voter Registrar Association of Virginia (VRAV), Virginia Electoral Board Association (VEBA) conferences, and Metropolitan Washington Council of Government (MWCOG). As a check on the sanity of our request we have polled similar jurisdictions concerning their manpower committed to these requirements. All have full time Registrars and Deputy Registrars. Jurisdictions Registered Voters Assistant Registrars Hours Fairfax City 16, Petersburg City 21, Fredericksburg City 17, Manassas City 21, Please note that Fairfax and Fredericksburg both have smaller voter rolls (24% and 23% respectively) than Manassas. Clearly a 2080 authorization is justified when compared with similar jurisdictions. The 2080 FY19 request represents a 24% decrease from FY18 usage (2762). With stringent management, we believe the Director of Elections can effect this savings without undue adverse effects this year. As the 2020 Election approaches we will likely need to increase the hours allocated to meet the spike in registrations associated with the Presidential Campaigns. We would anticipate a FY20 request for 2500 Assistant Registrar hours. As always, thank you for your support of the Office of Elections and the voters it serves. We standby to provide any assistance in this matter. John A. Snider, Chair Pamela Kincheloe, Vice-Chair Patricia E. Fields, 9
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14 PRESIDENTIAL GOVERNOR MIDTERMS TOTAL Year By Mail On Machine TOTAL Year By Mail On Machine TOTAL Year By Mail On Machine
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16 FY 2019 General Fund Contingency ADOPTED BUDGET $ 300,000 DATE RES EXPLANATION 9/24/ R Broadcast City Council Worksessions (2,000) 11/26/ R Voter Registration FTE Increase (8,100) REMAINING BALANCE $ 289,900 16
17 City of Manassas Finance Committee 9027 Center Street Manassas, VA Meeting Date: November 14, 2018 Time Estimate: Agenda Title: Recommendation: 5 Minutes Ordinance O : Amending Section of Article III (Local vehicle License) of Chapter 114 (Traffic and Vehicles) Related to the Local Vehicle License Adopt Ordinance O Date Last Considered by City Council: May 21, 2018 Summary and/or Comments: Board Committee or Commission Reviewed: Fiscal Impact: In May 2018, City Council adopted changes to the vehicle license fee in order to exempt small personal trailers from the fee. Trailers less than 1,500 pounds would not be levied a license fee. In implementing this change, the gross vehicle weight (GVW) was used instead of the actual empty weight. GVW is used in the classification of other vehicles including cars and trucks. As a result, the ordinance did not have the intended effect of City Council as there were many personal trailers that were still assessed the license fee. This ordinance change clearly states that GVW will be used and raises the weight to be exempted from 1,500 pounds to 4,000 pounds. These changes are more in line with Council s intent when the original ordinance was passed in May N/A There are 1,653 trailers registered in Manassas for FY If all trailers were levied the license fee, $41,325 in revenue would be generated. With the current ordinance in place, 281 trailers were exempt from the license fee which lowered revenue by $7,025. If Council adopts the proposed change of exempting trailers up to 4,000 pounds, an additional 685 trailers would not pay the license fee, thereby decreasing revenue by an additional $17,125. Adoption of this ordinance would mean a total of 687 trailers would be required to pay the license fee, generating revenue of $17,
18 Staff Contact: Craig Brown, City Attorney (703) Bryan Foster, Deputy City Manager (703)
19 ORDINANCE #O First Reading Second Reading Enacted Effective AN ORDINANCE TO AMEND AND REENACT THE CODE OF ORDINANCES, CITY OF MANASSAS, VIRGINIA (2002), AS AMENDED, BY AMENDING SECTION OF ARTICLE III (LOCAL VEHICLE LICENSE) OF CHAPTER 114 (TRAFFIC AND VEHICLES) RELATED TO THE LOCAL VEHICLE LICENSE FEE BE IT ORDAINED by the Council of the City of Manassas, Virginia, meeting in regular session this 10 th day of December, 2018 that Section of the Code of Ordinances, City of Manassas, Virginia, is hereby amended as follows: Sec Local license fee. The City shall charge and collect a local license fee on motor vehicles, trailers, and semitrailers, as defined in Virginia Code , according to the following schedule: Motor vehicles, except for motorcycles and moped: $25.00 Motorcycles and mopeds: $10.00 Trailers and semitrailers not designed and used for the transportation of passengers: $0.00 (0 1,500 4,000 lbs. GVW) $25.00 (> 1,500 4,000 lbs. GVW) The amount of the license fee shall not exceed the license fee charged by the Commonwealth on the motor vehicle, trailer, or semitrailer. The local license and registration may be transferred to another motor vehicle, trailer or semitrailer if the Virginia Department of Motor Vehicles transfers state registration. The local license fee, once paid, shall not be refunded, except for good cause shown, and shall not be subject to proration for fractional periods of a year. 2. This Ordinance shall be effective upon its passage on second reading, and shall be applicable to the motor vehicle license year beginning October 6,
20 BY ORDER OF THE COUNCIL Harry J. Parrish II, Mayor On Behalf of the City Council of Manassas, Virginia ATTEST: Andrea P. Madden City Clerk MOTION: SECOND: DATE: ACTION: Votes: Ayes: Nays: Absent from Vote: Absent from Meeting: 2 20
21 City of Manassas Finance Committee 9027 Center Street Manassas, VA Meeting Date: November 14, 2018 Time Estimate: Agenda Title: Recommendation: Date Last Considered by City Council: Summary and/or Comments: 5 Minutes Consideration of Resolution R Amending the FY 2019 Budget by Budget and Appropriating $28,250,000 for New Water and Sewer Projects AND Consideration of Resolution R Official Intent to Reimburse Expenditures with Proceeds of a Borrowing for Water and Sewer System Improvements Approve Resolution R Approve Resolution R N/A The City has negotiated with Fairfax County to purchase 500,000 gallons of their sewer capacity at the regional UOSA facility. This capacity is needed to continue to meet the needs of our citizens and businesses and handle new growth in the City. The Micron expansion necessitates multiple improvements to our water and sewer systems in order to meet their utility needs and accommodate the growth in their facility. Micron will be paying 100% of expenses for the improvements needed as a result of their expansion; however, the City must budget and appropriate for these projects. The total of these new Water and Sewer Utility projects, broken down below, is $28,250,000. Virginia Code Section requires the City to hold a public hearing in order to amend the budget by more than 1% of the total budget, which equates to anything more than $3.5 million. A public hearing to be held on November 26, 2018 will be advertised on November 14, In addition, the FY 2019 Adopted CIP includes Water Utility Projects to replace the transmission main and to increase water treatment plant capacity that are funded with proceeds from a bond issue planned for FY Treasury Regulations Section promulgated under the Internal Revenue Code of 1986, as amended, requires the City to declare its official intent to seek reimbursement from the proceeds once the bonds have been issued in order to use future bond proceeds for these projects. 21
22 Board Committee or Commission Reviewed: Fiscal Impact: These resolutions will budget and appropriate $28,250,000 for new Water and Sewer Utility Projects and declare the City s official intent to reimburse itself from proceeds of a future bond issued for expenditures for City Water and Sewer System improvements. The City s Bond Counsel has reviewed the bond reimbursement resolution. N/A $13,000,000 Sewer Capacity Purchase $10,000,000 Dean Water Storage Tank $ 3,000,000 Pond Lining & Aeration $ 1,500,000 UOSA Micron Ammonia Treatment $ 500, Water Main Relocation $ 250, Parallel Force Main $28,250,000 Total New Water and Sewer Projects To Budget $ 5,500,000 Water Transmission Main Replacement $ 2,500,000 Finished Water Capacity Increases $ 8,000,000 Total Existing Water Projects (included in FY 2019 Budget) $36,250,000 Total Not To Exceed Amount of Bond Reimbursement Staff Contact: Diane V. Bergeron, Director of Finance dbergeron@manassasva.gov (703) Bryan Foster, Deputy City Manager bfoster@manassasva.gov (703)
23 RESOLUTION R Adopted: BE IT RESOLVED by the Council of the City of Manassas meeting in regular session this 26 th day of November, 2018, that the following funds be budgeted and appropriated as shown. GENERAL FUND Expenditure: General Fund Contingency (8,100) Voter Registration Salaries 8,100 For: Assistant Registrar FTE Increase SEWER FUND Revenue: Bond Proceeds 13,000, Micron Funds 1,500,000 Expenditure: Sewer Capacity Purchase 13,000, UOSA Micron Ammonia Treatment 1,500,000 SEWER CAPITAL PROJECTS FUND Revenue: C3504 Micron Funds 3,000, C3506 Micron Funds 250,000 Expenditure: C3504 Pond Lining & Aeration 3,000, C " Parallel Force Main 250,000 WATER CAPITAL PROJECTS FUND Revenue: C3502 Bond Proceeds 10,000, C3503 Micron Funds 500,000 Expenditure: C3502 Dean Storage Tank 10,000, C " Water Main Relocation 500,000 For: Water & Sewer Projects 23
24 Resolution R November 26, 2018 Page 2 This resolution shall take effect upon its passage. ATTEST: Harry J. Parrish II MAYOR On Behalf of the City Council of Manassas, Virginia Andrea P. Madden City Clerk 24 11/9/2018
25 MOTION: November 26, 2018 Regular Meeting SECOND: Res. No. R RE: RESOLUTION OF OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF A BORROWING WHEREAS, the City of Manassas, Virginia (the Borrower ), intends to design, acquire, construct and equip various improvements to public facilities, including but not limited to its water and sewer systems (the Project ); and WHEREAS, plans for the Project have advanced and the Borrower expects to advance its own funds to pay expenditures related to the Project (the Expenditures ) prior to incurring indebtedness and to receive reimbursement for such Expenditures from proceeds of tax-exempt bonds or taxable debt, or both; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MANASSAS, VIRGINIA: 1. The Borrower intends to utilize the proceeds of tax-exempt bonds (the Bonds ) or to incur other debt, in an amount not currently expected to exceed $36,250,000 to pay the costs of the Project. 2. The Borrower intends that the proceeds of the Bonds be used to reimburse the Borrower for Expenditures with respect to the Project made on or after the date that is no more than 60 days prior to the date of this Resolution. The Borrower reasonably expects on the date hereof that it will reimburse the Expenditures with the proceeds of the Bonds or other debt. 3. Each Expenditure was or will be, unless otherwise approved by bond counsel, either (a) of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance with respect to the Bonds, (c) a nonrecurring item that is not customarily payable from current revenues, or (d) a grant to a party that is not related to or an agent of the Borrower so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the Borrower. 4. The Borrower intends to make a reimbursement allocation, which is a written allocation by the Borrower that evidences the Borrower s use of proceeds of the Bonds to reimburse an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. The Borrower recognizes that exceptions are available for certain preliminary expenditures, costs of issuance, certain de minimis amounts, expenditures by small issuers (based on the year of issuance and not the year of expenditure) and expenditures for construction of at least five years. 25
26 November 26, 2018 Regular Meeting Res. No. R Page 3 5. The Borrower intends that the adoption of this resolution confirms the official intent within the meaning of Treasury Regulations Section promulgated under the Internal Revenue Code of 1986, as amended. 6. This resolution shall take effect immediately upon its passage. ATTEST: Harry J. Parrish, II, Mayor, On behalf of the City Council of Manassas, Virginia Andrea P. Madden, City Clerk 26
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