CITY COUNCIL AGENDA J. Lloyd Snook, III, Mayor Juandiego Wade, Vice Mayor April 12, 2022 Sena Magill, Councilor Michael K. Payne, Councilor Brian R. Pinkston, Councilor Kyna Thomas, Clerk 5:30 PM SPECIAL MEETING Register at www.charlottesville.gov/zoom. This meeting is being held electronically in accordance with a local ordinance amended and re-enacted March 7, 2022, to ensure continuity of government and prevent the spread of disease during a declared State of Emergency. Individuals with disabilities who require assistance or special arrangements to participate in the public meeting may call (434) 970-3182 or submit a request via email to ada@charlottesville.gov. The City of Charlottesville requests that you provide a 48-hour notice so that proper arrangements may be made. Call to Order/Roll Call ACTION ITEM 1. Ordinance: Enacting a Budget and Tax Levy for Fiscal Year 2023 a. Ordinance*: Approving a budget and annual appropriation of funding for the City of Charlottesville for the Fiscal Year ending June 30, 2023 b. Ordinance*: Establishing the Annual Tax Levy for the City of Charlottesville for Tax Year 2022 2. Resolution*: Establishing 2022 Tax Year Tax Relief Percentage Page 1 of 26 FY 2023 Budget Calendar Public Meetings Topic Date Time Location Council/School Board Joint Work Session September 15, 2021 6:30 PM Zoom School Reconfiguration Discussion Webinar Council Work Session October 18, 2021 4:00 PM Zoom Budget Development Webinar Planning Commission Work Session November 23, 2021 5:00 PM Zoom FY23-27 Capital Improvement Program Webinar Planning Commission Public Hearing December 14, 2021 6:30 PM Zoom FY23-27 Capital Improvement Program Webinar Council/School Board Work Session February 2, 2022 5:00 PM Zoom Webinar Council Work Session February 3, 2022 5:00 PM Zoom Budget Development Webinar Proposed City and Adopted School Budgets March 7, 2022 6:30 PM Zoom Presented to Council Webinar Council Work Session March 10, 2022 6:00 PM Zoom FY 2023 Budget – Revenues and Expenses Webinar Council Work Session March 17, 2022 6:00 PM Zoom FY 2023 Budget – Outside and Non Profit Agencies Webinar First Budget and Tax Rate Public Hearing March 21, 2022 6:30 PM Zoom Webinar Community Budget Forum March 23, 2022 6:00 PM Zoom Webinar Council Work Session March 31, 2022 6:00 PM Zoom FY 2023 Budget – Capital Improvement Program Webinar Second Public Hearing Budget/ First Reading April 4, 2022 6:30 PM Zoom Approval of Ordinance Approving FY 23 Budget Webinar and Annual Appropriation/First Reading Ordinance Approving Tax Rate/Tax Levy Council Work Session April 7, 2022 6:00 PM Zoom FY 2023 Budget – Budget Wrap Up Webinar Second Reading and Approval: April 12, 2022 5:30 PM Zoom FY 23 Budget Ordinance and Annual Webinar Appropriation and Tax Rate/Tax Levy Ordinance Page 2 of 26 CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: April 12, 2022 (Special Meeting) Action Required: Ordinances for Adoption of Budget, Annual Budget Appropriation, Annual Tax Levy (each: 1 Reading) Presenter: Krisy Hammill, Sr. Budget and Management Analyst City Manager Michael C. Rogers, Interim City Manager Title: Action to Enact a Budget and Tax Levy for FY-2023 Background: Pursuant to Section 5 of the Charter of the City of Charlottesville, and Virginia Code Title 15.2, Chapter 25, a proposed budget was prepared by the City Manager and presented to City Council for consideration. After public notice given in accordance with law, public hearings were conducted by City Council on the City Manager’s proposed budget, on the proposed equalized tax rate, and on the other tax rates to be adopted in order to levy taxes in support of the adopted budget, Council is required to vote on these matters. Discussion: Following the Budget public hearing, City Council met on Thursday April 7, 2022 to deliberate and consider any additions, deletions or modifications of the items presented within the City Manager’s proposed budget, and to consider the proposed annual tax rates. City Council must consider and vote upon three items: 1. Ordinance approving the FY-2023 Budget and Annual Appropriation, 2. Ordinance Establishing the Annual Tax Levy for Tax Year 2022, and 3. Resolution Establishing the Personal Property Tax Relief Percentage for Tax Year 2022 [see separate agenda memo and Resolution provided by Commissioner Divers]. Amendments to the City Manager's FY 2023 Proposed General Fund Budget Manager's Recommended FY 23 Revenue Estimates $ 216,171,432 Amendments to FY 23 Revenue Estimates Decrease Revenues Taxes Real Estate Tax ($0.10 Advertised Tax Increase ) (9,207,167) Virginia Communications Sales and Use Tax (75,000) Page 3 of 26 Increase Revenues Taxes Real Estate Tax Revenue ($0.01 Tax Increase) 925,000 Personal Property Tax (using current rate of $4.20/$100) 2,000,000 Utility Taxes 100,000 Sales & Use Tax 900,000 Transient Room Tax 500,000 Meals Tax 25,026 Meals Tax (0.05% increase) 1,250,000 Licenses and Permits Business & Professional Licenses 300,000 Total Revenue Amendments $ (3,282,141) Total Amended FY 23 General Fund Revenue Estimates $ 212,889,291 Manager's Recommended FY 23 Expenditures $ 216,171,432 Amendments to FY 23 Expenditures Increase Expenditures Outside and Nonprofits Agencies Contractual Agencies Public Defender 20,000 Vibrant Community Fund Agencies Paramount Theater 7,500 Public Housing Association of Residents (PHAR) 10,050 AHIP 75,000 Piedmont CASA 3,500 Ready Kids - Early Education Program 25,946 CRHA 20,000 OAR - Drug Court and Therapeutic Docket 27,892 City Department Service Enahancements and Efficiencies Housing Coordinator Position Upgrade 55,514 Procurement - Restore Funding for 1 FTE - Buyer 81,355 Sheriff - Vehicle Replacement (1) 46,500 Grants Specialist/IG Specialist 120,000 Office of Diversity, Equity and Inclusion 300,000 Commissioner of Revenue - Tax Specialist 60,528 Climate Action Planning 150,000 Page 4 of 26 Affordable Housing Capacity 175,000 Budget Office Capacity including - 1 FTE - Analyst 126,822 MARCUS Alert System - Citywide Reserve 100,000 Public Works - Engineering 3 FTES 325,000 Tax Relief - Additional Funding 250,000 Interagency Transfers Transfer to Debt Service - School Reconfiguration 1,947,112 Transfer to Capital Projects - Urban Tree Planting 25,000 Transfer to CIP Contingency 1,974,467 Decrease Expenditures Outside and Nonprofits Agencies Vibrant Community Fund Agencies Festival of Cultures (2,160) Interfund Transfers Transfer to Debt Service - Reserve Other Changes Unallocated $0.10 Real Estate Tax Increase Revenue (9,207,167) Total Expenditure Amendments $ (3,282,141) Total Amended FY 23 General Fund Expenditures $ 212,889,291 Note the Budget Ordinance authorizes a total General Fund Budget of $214,122,093, a difference of $1,232,802 from the $212,889,291 total above. Should the estimated account balances below remain unspent as of June 30, 2022, the following amounts will be authorized for expenditure during FY 2023: Total Amended FY 23 General Fund Expenditures 212,889,291 Historic Resources 44,639 Sister City 23,799 Citywide Reserve 500,000 Council Strategic Initiatives 372,820 Councilor Discretionary Funds 25,000 Minority Business Fund 16,002 Job Fair 54,019 Police Civilian Oversight Board (Remaining Original Start-up Funding) 196,523 1,232,802 Total General Fund Budget Authorized per the Ordinance 214,122,093 Page 5 of 26 City Council Amendments to the City Manager's FY 2023 Proposed Capital Improvement Program Budget Manager's Recommended FY 23 Revenue Estimates $ 23,985,907 Amendments to FY 23 Revenue Estimates Increase Revenues Transfer from General Fund 1,999,467 Total Revenue Amendments $ 1,999,467 Total Amended FY 23 Capital Improvement Fund Revenue $ 25,985,374 Estimates Manager's Recommended FY 23 Expenditures $ 23,985,907 Amendments to FY 23 Expenditures Increase Expenditures Urban Tree Planting 25,000 CIP Contingency 1,974,467 Total Expenditure Amendments $ 1,999,467 Total Amended FY 23 Capital Improvement Fund Expenditures $ 25,985,374 City Council Amendments to the City Manager's FY 2023 Proposed Debt Service Fund Budget Manager's Recommended FY 23 Revenue Estimates $ 11,125,762 Amendments to FY 23 Revenue Estimates Increase Revenues Transfer from General Fund 1,974,467 Total Revenue Amendments $ 1,974,467 Total Amended FY 23 Debt Service Fund Revenue Estimates $ 13,100,229 Manager's Recommended FY 23 Expenditures $ 11,125,762 Page 6 of 26 Amendments to FY 23 Expenditures Increase Expenditures Debt Service Reserve 1,974,467 Total Expenditure Amendments $ 1,974,467 Total Amended FY 23 Debt Service Fund Expenditures $ 13,100,229 City Manager Recommendation: The City Manager recommends approval of the attached Ordinances.  Suggested Motion: “I move the ORDINANCE approving a budget and annual appropriation of funding for the City of Charlottesville for the Fiscal Year ending June 30, 2023”  Suggested Motion: “I move the ORDINANCE to establish the Annual Tax Levy for the City of Charlottesville for Tax Year 2022” Attachments (2):  Action Item #1: Proposed Ordinance approving a budget and annual appropriation  Action Item #2: Proposed Ordinance to establish the annual Tax Levy Page 7 of 26 ORDINANCE APPROVING A BUDGET AND ANNUAL APPROPRIATION OF FUNDING FOR THE CITY OF CHARLOTTESVILLE FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Section 1. Approval of the FY-2023 Budget The City Manager submitted to the City Council a proposed budget for the fiscal year commencing July 1, 2022, as deemed necessary for the provision of City services. A duly advertised public hearing was held on April 04, 2022. Thereafter, the City Council reviewed and made revisions to the proposed budget, which contains an itemized and classified plan of all contemplated expenditures, and all estimated revenues and borrowings for the City, for the fiscal year ending June 30, 2023 (“FY-2023”), including reasonable reserves for contingencies and capital improvements. The FY-2023 Budget also sets forth capital expenditures for vehicles, equipment, public street improvements and other transportation projects, and the means of financing them, for capital expenditures to be undertaken in FY-2023 and in a period of the next four (4) fiscal years. NOW, THEREFORE BE IT ORDAINED by the Council of the City of Charlottesville that the final Budget for the Fiscal Year commencing on July 1, 2022 and ending June 30, 2023 (“FY-2023 Budget”) is hereby approved, containing total estimated expenditures in the amount of $518,208,711. Section 2. Annual Appropriation BE IT ORDAINED by the Council of the City of Charlottesville that the annual GENERAL FUND (Fund 105) budget for Fiscal Year 2023 shall be $214,122,093. City Council further ordains that an appropriation of $214,122,093 be made in the General Fund, as more particularly set forth below: Management Mayor and City Council $950,506 Office of the City Manager/Administration 1,899,229 Office of the City Manager/Communications 681,471 Office of the City Manager/Economic Development 934,822 Office of the City Manager/Community Solutions 894,507 Office of the City Manager/Office of Equity and Inclusion 381,355 Office of the City Manager/Home to Hope 351,850 Office of the City Attorney 1,227,335 Office of General Registrar 754,715 Contributions to Organizational Memberships and Workforce Development Programs Virginia Municipal League 17,400 1 Page 8 of 26 Chamber of Commerce 1,700 Thomas Jefferson Planning District Commission 96,194 Virginia Career Works - Piedmont Region 8,051 Virginia Institute of Government 2,500 Alliance for Innovation 2,550 Virginia First Cities Coalition 18,000 Central Virginia Partnership for Economic Development 24,723 Thomas Jefferson Soil and Water Conservation District 13,440 Central Virginia Small Business Development Center 27,293 Rivanna Conservation Alliance 11,000 National League of Cities 5,000 Community Investment Collaborative 17,500 Center for Nonprofit Excellence 600 Non Departmental Activities City Strategic Plan/P3: Plan, Perform, Perfect 130,000 Participatory Budgeting 15,000 Virginia Juvenile Community Crime Control Act (Local Match) 108,415 Citizen Engagement Opportunities 15,000 Food Equity 155,000 Innovation Fund 20,000 Sister City Committee 53,799 Performance Agreement Payments 300,000 Citywide Reserve 670,187 Citywide Reserve - MARCUS Alert System 100,000 Ivy Landfill 500,000 Transfer to Debt Service Fund 10,507,900 Transfer to Fund Balance Target Adjustment Fund 481,905 Employee Compensation and Training 1,142,762 Internal and Financial Services Finance Department - Administration/Purchasing/Assessor 2,872,001 Human Resources 1,488,354 Commissioner of Revenue 1,499,213 Treasurer 1,511,063 Information Technology 3,821,947 Healthy Families and Community Transfer to Children's Services Act Fund 2,004,722 Transfer to Social Services Fund 3,602,777 Transfer to Human Services/Community Attention Fund 1,506,362 Neighborhood Development Services 3,054,752 Office of Human Rights/Human Rights Commission 282,450 Police Civilian Oversight Board 559,200 Parks and Recreation 12,366,691 Transfer to Convention and Visitors' Bureau 711,082 2 Page 9 of 26 Community Events and Festivals Virginia Film Festival 10,500 Virginia Festival of the Book 11,585 Charlottesville Festival of Cultures 2,880 City Supported Events (Other) 59,722 Contributions to Children, Youth, and Family Oriented Programs Boys and Girls Club 114,750 The BridgeLine 34,750 Bridge PAI 10,000 Charlottesville Abundant Life Ministries 10,500 Blue Ridge Health Department 639,858 Charlottesville Free Clinic 119,404 Emergency Assistance Program Support 84,516 Foothills Child Advocacy Center 51,659 Fountain Fund 12,250 Home Visiting Collaborative 280,500 Jefferson Area Board for Aging (JABA) 319,192 Local Food Hub 38,814 MACAA 17,200 Music Resource Center 4,558 On Our Own 8,750 Partner for Mental Health 19,500 PHAR Internship Program 31,085 Piedmont CASA 3,500 Piedmont Family YMCA 57,800 ReadyKids 152,447 Region Ten Community Services Board 1,180,092 Sexual Assault Resources Agency (SARA) 11,550 Shelter for Help in Emergency (SHE) 208,463 Sin Barreras 24,255 Thomas Jefferson Area Coalition for the Homeless 138,200 Unallocated Agency Funding 90,000 United Way - Thomas Jefferson Area 192,504 Virginia Cooperative Extension Program 60,704 Women's Initiative 43,138 Contributions to Education and the Arts City Center for Contemporary Arts 56,814 Historic Preservation Task Force 49,639 Jefferson Madison Regional Library 2,075,318 Jefferson School African American Heritage Center 36,000 Lighthouse Studio 11,200 Literacy Volunteers 15,600 McGuffey Art Center 30,723 New City Arts 12,000 Piedmont Virginia Community College 13,040 3 Page 10 of 26 The Paramount Theater/Arts Education Program 17,500 Virginia Discovery Museum 17,500 WTJU 6,300 Vinegar Hill Theater 12,000 Contributions to Housing Programs Albemarle Housing Improvement Program (AHIP) 162,500 Habitat for Humanity 42,250 Charlottesville Redevelopment and Housing Authority 20,000 Charlottesville Housing Affordability Tax Grant Program 2,395,000 Piedmont Housing Alliance (PHA) 202,052 Rent Relief for Disabled, a sum sufficient estimated at 178,500 Rent Relief for Elderly, a sum sufficient estimated at 31,500 Stormwater Fee Assistance Program 20,000 Tax Relief for Disabled, a sum sufficient estimated at 148,800 Tax Relief for Elderly, a sum sufficient estimated at 316,200 Infrastructure and Transportation Public Works: Administration, Facilities Development, Facilities Maintenance, Engineering, Climate Sustainability 6,515,147 Public Works: Hedgerow Properties 118,040 Public Works: Public Service 7,752,093 Transfer to Charlottesville Area Transit Fund 2,513,651 JAUNT Paratransit Services 1,443,081 Public Safety and Justice City Sheriff 1,586,315 Commonwealth's Attorney 1,294,067 Clerk of Circuit Court 829,040 Circuit Court Judge 105,405 General District Court 23,366 Juvenile and Domestic Relations Court/Court Services Unit 356,139 Magistrate 10,450 Fire Department 14,132,245 Police Department 20,169,731 Contributions to Programs Supporting Public Safety and Justice Legal Aid Justice Center 52,500 Albemarle Charlottesville Regional Jail 3,728,560 Blue Ridge Juvenile Detention Center 796,709 Emergency Communications Center 1,909,126 Offenders Aid and Restoration 380,337 Society for the Prevention of Cruelty to Animals 289,560 Public Defender's Office 86,167 Local Contribution to Public Schools Operational Support 62,925,964 4 Page 11 of 26 Total Operating Expenditures $194,735,078 Designated Expenditures City/School Contracts: Pupil Transportation $3,566,673 City/School Contracts: School Building Maintenance 4,239,961 Transfer to Capital Projects Fund 8,737,407 Transfer to Capital Projects Fund - Mall Vendor Fees 78,000 Transfer to Facilities Repair Fund 200,000 Transfer to Debt Service Fund - Meals Tax Revenue 2,564,974 Total Designated Expenditures $19,387,015 Total General Fund Expenditures $214,122,093 The City Council further ordains that at the close of FY-2023 the City Manager is authorized to maintain appropriations for encumbrances, grants, capital projects and programs. The City Council further ordains that the City Manager is authorized to make line-item changes within department budgets and allocate salary lapse between department budgets and the lump sum merit pool budgeted with the Employee Compensation and Benefits budget program, and such changes shall be reported to the City Council by way of periodic financial reports. The City Council further ordains that the City Manager is authorized to increase the budget and to expend the following funds for the following items of non-budgeted restricted revenue that may occur during FY-2023, which are hereby appropriated for expenditure within the budget program(s) designated by the City Manager, as of the date of receipt thereof by the City: 1. Insurance recoveries received for damages to City properties for which City funds have been expended to make repairs., 2. Defaulted builder and developer securities to be used for uncompleted projects, 3. Parking Development Fees, 4. Asset forfeiture, Courthouse Security fees and $4 for Life funds, 5. Donations under $10,000 given to the City for a specific purpose, 6. Revenues received in excess of this annual appropriation, by the following funds: Transit Fund (Fund 245), Information Technology Fund (Fund 705), Warehouse Fund (Fund 706), Communications Fund (Fund 755), Fleet Maintenance Fund (Fund 753), Joint Health Department Building Fund (Fund 982), Retirement Benefits Fund (869), Parking Fund (Fund 650), Golf Fund (Fund 609), and the Utility Enterprise Funds (Water, Wastewater, Gas and Stormwater), and 7. Landfill Reserve funds for use to cover costs associated with landfill remediation The City Council further ordains that the appropriations made herein as Councilor Discretionary Funds will be spent in accordance with the guidelines set forth within City Council’s adopted Policies and Procedures. 5 Page 12 of 26 The City Council further ordains that the Employee Classification and Pay Plan for the City of Charlottesville dated July 1, 2022 and effective on that same date, which assigns salary ranges to each class or position in the City service is hereby approved pursuant to Section 19-3 and 19-4 of the City Code, 1990, as amended and a copy of the same shall be kept on file with the records of the meeting at which this resolution is approved. The City Council further ordains that the annual appropriation in the sum of $106,916,231 for FY-2023 for annual SCHOOL OPERATIONS is made, which monies are to be expended in accordance with law for purposes authorized and approved by the Charlottesville City School Board. (The City’s local contribution to the School Operations is hereinabove appropriated by transfer from the General Fund). The City Council further ordains that the annual appropriation in the sum of $18,678,579 for FY-2023 be made from the HEALTH BENEFITS FUND (Fund 718), which monies are to be expended for the payment of health and medical benefit program costs, and for insurance covering such costs, and in addition, for the accumulation of a reserve for future expenditures to pay for such health and medical benefit program costs. The City Council further ordains that the annual appropriation in the sum of $33,995,592 or the amount of revenue received by such fund, whichever shall be the greater amount, be made from the RETIREMENT BENEFITS FUND (Fund 869), which monies are to be expended for the payment of retirement benefit program costs, and for insurance covering such costs, and in addition, for the accumulation of a reserve for future expenditures. The City Council further ordains that the Retirement Plan Commission is authorized and directed to provide for the payment from the Retirement Fund of a post-retirement supplement of 2% of the current retirement pay of each eligible retired employee effective July 1, 2021. The City Council further ordains that the annual appropriation in the sum of $3,945,931 for FY-2023 be made from the RISK MANAGEMENT FUND (Fund 711), which monies are to be expended for the uses prescribed for such fund, pursuant to the terms of, and subject to the limitations imposed by Article V of Chapter 11 of the Code of the City of Charlottesville, 1990, as amended. The City Council further ordains that the annual appropriation in the sum of $1,590,283 for FY-2023 be made from the EQUIPMENT REPLACEMENT FUND (Fund 106), which monies are to be expended for the lease, financing or purchase of motor vehicles and related equipment and for accumulation of a reserve for future equipment purchases. The City Council further ordains that the annual appropriation in the sum of $470,585 be made from the FACILITIES REPAIR FUND (Fund 107), which monies are to be expended for carrying out the purposes of repairs to facilities and for accumulation of a reserve for future repairs to facilities. 6 Page 13 of 26 The City Council further ordains that the annual appropriation in the sum of $906,941 or the amount of revenue received for FY-2023 be made from the JOINT HEALTH DEPARTMENT BUILDING FUND (Fund 982), which monies are to be expended for general improvements, maintenance, small capital projects and for the accumulation of a reserve to be used for expenses for the Thomas Jefferson Health District building. The City Council further ordains that the annual appropriation in the sum of $13,100,229, or as much thereof as may be necessary, be made from the DEBT SERVICE FUND (Fund 302), which monies to be expended for the payment of principal and interest of bonds, notes and other evidence of indebtedness and the cost of issuance thereof issued by the City pursuant to its Charter and/or the Virginia Public Finance Act. The City Council further ordains that the annual appropriation in the sum of $6,751,701, or the amount of revenue received by such fund, whichever shall be the lesser amount, be made from the HUMAN SERVICES/COMMUNITY ATTENTION FUND (Fund 213), which monies are to be expended for the operation of the Community Attention Homes and related programs during such fiscal year. The City Council further ordains that the annual appropriation in the sum of $15,786,965 or the amount of revenue received by such fund, whichever shall be the lesser amount, be made from the SOCIAL SERVICES FUND (Fund 212), which monies are to be expended for the operation of the Department of Social Services during such fiscal year, The City Council further ordains that the annual appropriation in the sum of $8,444,864, or the amount of revenue received by such fund, whichever shall be the lesser amount, be made from the CHILDREN’S SERVICES ACT FUND (Fund 215), which monies are to be expended for the operation of the Children’s Services Act entitlement program, The City Council further ordains that the annual appropriation in the sum of $11,024,410, or the amount of revenue received by such fund, whichever shall be the greater amount, be made from the TRANSIT FUND (Fund 245), which monies are to be expended for the operation of the public transit system. The City Council further ordains that the annual appropriation in the sum of $1,649,187, or the amount of revenue received by such fund, whichever shall be the greater amount be made from the INFORMATION TECHNOLOGY FUND (Fund 705), which monies are to be expended for the operation of the various information technology functions. The City Council further ordains that the annual appropriation the sum of $165,323, or the amount of revenue received by such fund, whichever shall be the greater amount, be made from the WAREHOUSE FUND (Fund 706), which monies are to be expended for the operation of the Warehouse. The City Council further ordains that the annual appropriation in the sum of $1,415,205 be made from the FLEET MAINTENANCE FUND (Fund 753), which 7 Page 14 of 26 monies are to be expended for the operation of the Central Garage, Vehicle Wash and Fuel System. The City Council further ordains that the annual appropriation in the sum of $570,922 be made from the COMMUNICATIONS SYSTEM FUND (Fund 755), which monies are to be expended for the operation of the citywide phone system and mailroom operations during such fiscal year. The City Council further ordains that the annual appropriation in the sum of $1,089,216, or the amount of revenue credited to such fund, whichever shall be the greater amount be made from the GOLF FUND (Fund 609), which monies are to be expended for the operation of the golf course during such fiscal year. The City Council further ordains that the annual appropriation in the sum of $4,510,503, or the amount of revenue credited to such fund, whichever shall be the greater amount, be made from the PARKING FUND (Fund 650), which monies are to be expended for the operation of the parking operations during such fiscal year. The amount herein appropriated to the Parking Fund designates the transfer of “net revenues” back to the General Fund. The amount of the transfer may be amended to reflect the actual amount of net revenues received during the year from public serving parking facilities, permits, meters and fines, whichever is the lesser. The City Council further ordains that the appropriations made herein shall become available for expenditures July 1,2022 and shall expire June 30, 2023 (FY-2023). 8 Page 15 of 26 Section 2. Operating Fund Revenues It is estimated that local revenues and other sources of revenue will be available during FY-2023 to meet the needs of the FY-2023 Budget approved within Section 1 of this Appropriation Ordinance, according to the following sources: General Fund Local Sources $ 201,047,532 The Commonwealth and Federal Government 11,841,759 Transfers from Other Funds 1,000,000 Fund Balance Committed/Assigned 1,232,802 Fund Balance (Unassigned) 0 Total $ 214,122,093 School Operations Local Contribution/Transfer from General Fund $ 62,925,964 Intergovernmental Fund 39,856,810 Miscellaneous Revenue 1,159,014 Fund Balance 2,974,443 Total $ 106,916,231 Health Benefits Fund Member Contributions $ 17,070,000 Miscellaneous Revenue 15,000 Balance of the Health Benefits Fund 1,593,579 Total $ 18,678,579 Retirement Benefits Fund City Contributions (All Funds) $ 15,870,592 Member Contributions 2,500,000 Investment Income 15,625,000 Total $ 33,995,592 Risk Management Fund City Contributions (All Funds) $ 3,852,681 Other Local Sources 93,250 Total $ 3,945,931 Equipment Replacement Fund Transfer from the General Fund $ 911,128 Balance of the Equip. Repl. Fund 679,155 Total $ 1,590,283 9 Page 16 of 26 Facilities Repair Fund Transfer from the General Fund $ 200,000 Balance of the Fac. Repair Fund 270,585 Total $ 470,585 Joint Health Building Fund Rent Income $ 251,655 Balance of the Joint Health Bldg Fund 655,286 Total $ 906,941 Debt Service Fund Transfers from the General Fund $ 10,507,900 Meals Tax Transfer (equivalent to $0.01) 2,564,974 Balance of the Debt Service Fund 27,355 Total $ 13,100,229 Human Services Fund Transfers from the General Fund $ 1,514,362 Intergovernmental Revenue 5,232,339 Miscellaneous Revenue 5,000 Total $ 6,751,701 Social Services Fund Transfers from the General Fund $ 3,602,777 Intergovernmental Revenue 10,514,527 Other Sources 1,669,661 Total $ 15,786,965 Children's Services Act Fund Transfers from the General Fund $ 2,004,722 Meals Tax Transfer (equivalent to $0.01) 6,440,142 Total $ 8,444,864 Transit Fund Transfers from the General Fund $ 2,513,651 Intergovernmental Revenue 8,405,719 Miscellaneous Revenue 105,040 Total $ 11,024,410 Information Technology Transfers from the General Fund $ 159,000 10 Page 17 of 26 User Fees 1,450,587 Miscellaneous Revenue 39,600 Total $ 1,649,187 Warehouse Fund User Fees $ 165,323 Total $ 165,323 Fleet Fund User Fees $ 1,415,205 Total $ 1,415,205 Communications Fund User Fees $ 339,670 Balance of the Communications Fund 231,252 Total $ 570,922 Golf Fund User Fees $ 1,089,216 Total $ 1,089,216 Parking Fund Parking Revenues $ 3,850,593 Balance of the Parking Fund 659,910 Total $ 4,510,503 Section 3. FY-2023 Capital Budget The City Council ordains that the annual appropriation in the sum of $23,985,907 for FY-2023 be made from the CAPITAL FUND (Funds 424, 425, 426, 427, 428 and 429 combined) which monies are to be expended in accordance with law for the following purposes authorized and approved by City Council and as more particularly set forth by specific project in the FY-2023 Budget. City Council intends that the adoption of this resolution (1) confirms the “official intent” within the meaning of Treasury Regulations Section 1.150-2 promulgated under the Internal Revenue Code of 1986, as amended. and (2) that the funds designated for the respective capital purchases or projects as set forth shall hereby made available for expenditure until the project is deemed to be complete. The estimated revenues and appropriation categories are as follows: Revenues Transfer from General Fund 8,737,407 Transfer from General Fund - Mall Vendor Fees 78,000 11 Page 18 of 26 Contribution from Albemarle County (CATEC) 62,500 Contribution from Schools (Small Cap Program) 200,000 PEG Fee Revenue 40,000 CY 2023 Bond Issue 16,867,467 TOTAL AVAILABLE REVENUES $25,985,374 Expenditures EDUCATION Project Lump Sum to Schools (City Contribution) 1,200,000 City Schools HVAC Replacement 750,000 City Schools Priority Improvement Projects 1,250,000 Charlottesville High School Roof Replacement 1,200,000 Charlottesville City School Reconfiguration 2,500,000 School Small Capital Improvements Program 200,000 SUBTOTAL $7,100,000 FACILITIES CAPITAL PROJECTS Project Lump Sum to Facilities Capital Projects 1,045,491 City Facility HVAC Replacement 250,000 City and Schools Solar PV Program 75,000 SUBTOTAL 1,370,491 PUBLIC SAFETY AND JUSTICE Project Bypass Fire Station - Additional Funding 1,206,976 Police Mobile Data Terminals 45,000 Police Portable Radio Replacement 45,000 Fire Portable Radio Replacement 45,000 Sheriff Portable Radio Replacement 18,800 SUBTOTAL $1,360,776 TRANSPORTATION AND ACCESS Project New Sidewalks 100,000 Sidewalk Repair 500,000 SIA Immediate Implementation 200,000 Small Area Plans 100,000 Street Milling and Paving 1,250,000 ADA Pedestrian Signal Upgrades 240,000 Minor Bridge Repairs 225,000 Citywide ADA Improvements - Sidewalks and Curbs 200,000 Traffic Signal Infrastructure Replacement 500,000 Market Street Garage Concrete Structural Repairs 683,000 State Bridge and Highway Inspections 60,000 12 Page 19 of 26 CAT Transit Bus Replacement Match 139,510 Intelligent Transportation System 150,000 City Wide Traffic Engineering Improvements 100,000 Neighborhood Transportation Improvements 50,000 Bicycle Infrastructure 137,000 Right of Way Appurtenance 25,000 Traffic Sign Retro Reflective Compliance 75,000 ADA Ramp Corrections 134,930 Historic District and Entrance Corridor Design Guidelines 50,000 SUBTOTAL $4,919,440 PARKS AND RECREATION Project McIntire Park Drainage Corrections $350,000 Key Recreation Slate Roof Replacement $42,000 Parks and Recreation Lump Sum Account 300,000 Parks and Schools Playground Renovations 112,000 Urban Tree Planting 100,000 Parkland and Trails Acquisition and Development 125,000 Downtown Mall Infrastructure Repairs 78,000 Parks and Recreation Comprehensive Master Plan 150,000 Oakwood Cemetery Drainage and Road Issues 45,700 Hazard and Liability Ash Tree Removal 105,000 City/County - Ivy Creek Preservation Study 66,000 City/County - Darden Towe Ash Trees 26,500 SUBTOTAL $1,500,200 ECONOMIC DEVELOPMENT Project Economic Development Strategic Initiatives 95,000 SUBTOTAL $95,000 TECHNOLOGY INFRASTRUCTURE Project Communications Technology Account/Public Access 40,000 City Wide IT Strategic Infrastructure 250,000 SUBTOTAL $290,000 FACILITIES CAPITAL PROJECTS Project HVAC Contingency Fund - City Facilities 25,000 HVAC Contingency Fund - School Facilities 25,000 SUBTOTAL $50,000 AFFORDABLE HOUSING Project Public Housing Redevelopment - (CRHA) 3,000,000 Charlottesville Affordable Housing Fund (CAHF) 925,000 13 Page 20 of 26 Supplemental Rental Assistance 900,000 Friendship Court Redevelopment - Phase 2 2,500,000 SUBTOTAL $7,325,000 CIP CONTINGENCY CIP Contingency Funds - unallocated $1,974,467 TOTAL PROJECTS $25,985,374 The City Council further ordains that at the close of the fiscal year the City Manager is authorized to maintain appropriations for encumbrances and grants. The City Council further ordains that at the close of the fiscal year the City Manager is authorized to administratively approve the close out of capital projects and transfer any unencumbered residual funds to the balance within the Capital Improvement Fund. Section 4. Utility Enterprise Funds The City Council further ordains that the annual appropriation in the sum of $21,462,230; or the amount of revenue received by such fund, whichever shall be the greater amount, for the WATER UTILITY FUNDS (Funds 611 and 612), which monies are to be expended for the operation of the water utility. The City Council further ordains that the annual appropriation in the sum of $20,697,678; or the amount of revenue received by such fund, whichever shall be the greater amount, for the WASTEWATER UTILITY FUNDS (Funds 621 and 622), which monies are to be expended for the operation of the wastewater utility. The City Council further ordains that the annual appropriation in the sum of $29,088,390; or the amount of revenue received by such fund, whichever shall be the greater amount, for the GAS UTILITY FUNDS (Funds 631 and 634), which monies are to be expended for the operation of the gas utility. The City Council further ordains that the annual appropriation in the sum of $3,024,255; or the amount of revenue received by such fund, whichever shall be the greater amount, for the STORMWATER UTILITY FUNDS (Funds 641,642 and 643), which monies are to be expended for the operation of the stormwater utility. Operating Revenues WATER (OPERATIONAL AND DEBT SERVICE FUNDS) Water Sales Revenue $13,687,230 Other Fees 200,000 Bond Proceeds 5,775,000 Transfer from Other Funds 1,800,000 WATER FUND REVENUE TOTAL $21,462,230 14 Page 21 of 26 WASTEWATER (OPERATIONAL AND DEBT SERVICE FUNDS) Wastewater Sales Revenue $15,697,678 Bond Proceeds 2,000,000 Transfer from Other Funds 3,000,000 WASTEWATER REVENUE TOTAL $20,697,678 GAS (OPERATIONAL AND DEBT SERVICE FUNDS) Gas Sales Revenue $27,039,990 Other Fees 333,500 Misc. Revenue 1,714,900 GAS REVENUE TOTAL $29,088,390 STORMWATER (OPERATIONAL AND DEBT SERVICE FUNDS) Stormwater Fee Revenue $1,944,572 Bond Proceeds 950,000 Transfer from Other Funds 129,683 STORMWATER REVENUE TOTAL $3,024,255 The City Council further ordains that at the close of the fiscal year the City Manager is authorized to maintain appropriations within the City’s enterprise funds for encumbrances, grants, capital projects and programs. The City Council further ordains that the annual appropriations for the City’s Utility Enterprise Funds are subject to amendment based on Council’s subsequent review and approval of the Annual Utility Rate Report which sets forth the annual spending plan and establishes the annual customer rates for each utility. By definition, the term “operation” is herein defined to include any self-supporting enterprise expenditures including those for capital outlay and for the payment of principal and interest of bonds, notes and other evidence of indebtedness and the cost of issuance thereof issued by the City pursuant to its Charter and/or the Virginia Public Finance Act. 15 Page 22 of 26 ORDINANCE To Establish the Annual Tax Levy for Tax Year 2022 BE IT ORDAINED by the Council of the City of Charlottesville THAT in order to pay the general operating expenses of the City, including local support for the City’s schools; to provide funding for other public purposes; and to pay interest on and to provide funding for retirement of City debt, taxes are hereby levied at the rates set forth within this Ordinance, for the current Tax Year (beginning at midnight on January 1, 2022 and ending December 31, 2022), and for each succeeding Tax Year during which this Ordinance continues in effect: 1. Section 1—Real Property and Mobile Homes On real estate, including land and improvements thereon and mobile homes, the tax rate shall be $0.96 on every $100 of the assessed value thereof. 2. Section 2—Personal Property On all automobiles, trucks, motorcycles and other motor vehicles; boats and aircraft; and on all tangible personal property used or held in connection with any mining, manufacturing, or other business, trade, occupation or profession (excluding furnishings, furniture and appliances in rental units) the tax rate shall be $4.20 on every $100 of the assessed value thereof. 3. Section 3—Public Service Corporation Property (a) On that portion of the real estate and tangible personal property of public service corporations which has been equalized as provided in Sec. 58.1-2604 of the Virginia Code, the tax rate shall be $0.96 on every $100 of the assessed value thereof determined by the Virginia State Corporation Commission, and (b) Notwithstanding the foregoing, on automobiles and trucks belonging to public service corporations, the tax rate shall be $4.20 on every $100 of the assessed value thereof. 4. Section 4—Machinery and Tools On machinery and tools used in a manufacturing or mining business, the tax rate shall be $4.20 on every $100 of the assessed value thereof. 5. Section 5—Energy Efficient Buildings On energy efficient buildings the tax rate shall be $0.475 on every $100 of the assessed value thereof, subject to the limitations set forth within Chapter 30, Article V, Division 4 of the Code of the City of Charlottesville (1990), as amended, and applies only to buildings and not to the land on which such buildings are located. BE IT FURTHER ORDAINED THAT the Ordinance adopted April 13, 2021 establishing local tax rates for the Tax Year beginning January 1, 2021 and ending on December 31, 2021 is hereby repealed, effective at midnight on January 1, 2022. Page 23 of 26 CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: April 12, 2022 Action Required: Approval of Resolution Presenter: Todd D. Divers, Commissioner of the Revenue Staff Contacts: Todd D. Divers, Commissioner of the Revenue Jason Vandever, City Treasurer Lisa Robertson, Acting City Attorney Rosalind Collins, Deputy Commissioner of the Revenue Lisa Newman, Deputy Commissioner of the Revenue Title: Establishing 2022 Tax Year Tax Relief Percentage Background The City of Charlottesville receives a fixed annual grant from the Commonwealth of Virginia to be used to apply Personal Property Tax Relief (PPTR). The program is governed by the Code of Virginia (58.1 Chapter 35.1) and gives the locality a pool of funds, the proceeds of which must be used to provide relief to the owners of qualifying vehicles. The Commonwealth of Virginia’s obligation is capped and made certain; localities distribute the relief amount as determined by local ordinance. Discussion The method for computing the relief percentage is to subtract the tax year’s total tax on eligible vehicles valued $1,000 or less (that receive 100% relief) from the total PPTR grant amount ($3,498,256) and divide the result by the total tax on the rest of the eligible vehicles’ portion of value that is $20,000 or less. Based on 2022 tax year early book and projections for the tax year, staff recommends setting the relief percentage of tax on up to $20,000 value for vehicles valued over $1,000 by using the formula specified below: Approve resolution setting the relief at 32% for tax year 2022. 2022 Formula: 1. Tax Levy on all qualifying vehicles = $12,600,000 2. PPTR used on 100% relief vehicles = $60,000 (vehicles valued $1,000 and under) 3. PPTR total ($3,498,256) Page 24 of 26 Minus line 2, leaves remaining = $3,438,256 4. Levy on up to $20,000 value = $10,600,000 (of qualifying vehicles valued over $1,000) Divide 3 by 4 = (.3244) 32% Alignment with City Council’s Vision and Strategic Plan Establishing the Personal Property Tax Relief percentage, like establishing tax rates, is one of the functions of a well-managed local government, which would put this under Goal 5. The first objective is most applicable: “Integrate effective business practices and strong fiscal policies”. If the percentage is set too high, the City may not have the full revenue it would from the tax rate set by Council. If the percentage is set too low, the owners of qualifying vehicles may over pay their share of the local tax burden. Therefore, this resolution applies directly to Council’s vision of a “Smart, Citizen-Focused Government”. Community Engagement Not applicable Budgetary Impact None anticipated based on forecast of vehicle levy and relief to be received from the Commonwealth. Recommendation Suggested Motion: “I move the RESOLUTION establishing the personal property tax relief percentage for Tax Year 2022.” Alternatives N/A Attachment Resolution Page 25 of 26 RESOLUTION Establishing the Personal Property Tax Relief Percentage for Tax Year 2022 BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, THAT pursuant to the requirements of Virginia Code §58.1-3524, that personal property tax relief at the rate of thirty-two percent (32%) shall be applied to the first $20,000 of value of each qualifying vehicle having a value of more than $1,000 and BE IT FURTHER RESOLVED THAT personal property tax relief at the rate of one hundred percent (100%) shall be applied to each qualifying vehicle having a value of $1,000 or less. Page 26 of 26