MINUTES EMPORIA CITY COUNCIL CITY OF EMPORIA MUNICIPAL BUILDING APRIL 01, 2025 Note to Reader: Although the printed agenda for this City Council meeting is not part of these minutes, the agenda document provides background information on the items discussed by the City Council during the meeting. A copy of the agenda document for this meeting may be obtained by contacting the Office of the City Clerk. Emporia City Council held a meeting on Tuesday, April 01, 2025, at 6:30 p.m. in the Council Chambers ofthe Municipal Building, located at 201 South Main Street, Emporia, Clifton Threat, President of Council, presided over the meeting and Bishop Lowery offering the invocation. ROLL CALL The following City Council members were present: Councilwoman Yolanda Hines Councilman Mark S. Lilly Councilwoman Carol Mercer Councilman James C. Saunders Councilwoman Doris T. White Councilman Clifton Threat Councilwoman L. Dale Temple Others present: William E. Johnson III, City Manager Bill Hefty, Attorney Tessie S. Wilkins, City Clerk Troy Allen, IT Manager Karen A. Taylor, Treasurer Beverly Walkup, Planning and Zoning Director Interim Joyce Prince, Commission of Revenue Shanetta Beck, Economic Development Director Caption D. Jarratt, EPD Brian Petty, Building/Fire Official Melvin Prince, Director of] Public Utilities Alton Mason, Director of Public Works Absent: Carolyn S. Carey, Mayor Eric A. Gregory, City Attomey MINUTES APPROVAL Councilman Threat stated that the Council had the minutes for Tuesday, March 04, 2025, Regular Meeting and asked ift there are any additions or corrections. Councilwoman Temple moved to approve the minutes for the Tuesday, March 04, 2025, Regular Meeting, seconded by Councilwoman White, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye AGENDA APPROVAL Councilwoman Temple moved to approve the agenda, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Counciwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye Councilman Threat presented aj proclamation in honoring ofLocal Government Education Week - April 1-7, 2025, and National Crime Victims' Rights Week - April 6-12, 2025. PUBLIC HEARING 1. Public Hearing - Code Amendment - Chapter 90. Zoning and Subdivision Ordi- nance. Article VI, Division 3. Use Matrix, Section 90-344. Matrix, Table 6.1, Res- idential andArticle VII, Use Performance Standards, Division 2. Residential Use Standards, Sec. 90-375. Dwelling, townhouse, subsection (b)Architectural Treat- ment of Townhouse Ms. Beverly Walkup stated that: Zoning Text Amendment #2025-01: An Ordinance to amend the Emporia, Virginia Code of Ordinances, Chapter 90, Zoning and Subdivision, as follows: Article VI, Division 3. Use Matrix, Section 90-344. Matrix, Table 6.1, Residential to add Dwelling, townhouse as a "by-right" use in the Downtown District (DT), and to amend Article VII. Use Standards. Division 2. Residential, Section 90-375, Dwelling, townhouse to require that townhouse dwellings proposed in identified historic districts shall incorporate architectural elements of the surrounding structures and character of the district; and Article L In General. Section 90-2. Definitions to amend the use name and definition for Outdoor Sales. Seasonal/Temporary to Outdoor Sales. and to amend Article VII. Use Standards, Division 4. Commercial, Section 7-4-10 Outdoor Sales, Scasonal/Temporary to change the use to allow outdoor sales and display as a customary, accessory use to commercial retail development as determined by the zoning administrator, and shall be permitted within an area not greater than 800 square feet or ten percent of the gross floor area of the ground floor of the building, which is greater, and shall be located at least 25 feet from any residential use or zone and to amend the provisions to add standards for more long-term commercial uses, such as the sale of sheds, and other outdoor products. Ms. Walkup stated that the Planning Commission held a public hearing on the amendment on February 11, 2025. On the motion of Commissioner Slate, seconded by Commissioner Kinsey, the Commission voted unanimously (9-0) to approve the amendment, as revised for clarity that Sec. 90- 410(b)(1) is only applicable to the use as an "accessory use". Ms. Beverly Walkup presented the presentation below: City ofEmporia, Virginia City Council Meeting April 11, 2025 1 Public Hearing Item #1 1) Articlev VI,Divisions. UMarix,Sections AMETeIORas amended: a Purpose: To Add Dwelling. Townhouse as - "by-right" use in the Downtown District (DT). - - E - A - - - - - - 1 5 - 2 Public Hearing Item 1) Article M,Divisions. UseMatrix, Sections 90344. Matrix, Table 61, Residential be amendedto. AddDelling, Tounbouse 3sa 'byighe" use in thel DoriwamDsiOD, Oty of Emporia Map - - - - 3 Public Hearing Item 1) Article VI,Divition3 Usel Matrix, Section 90-344 Matrix, Table 6.1, Residentialbe amendedto: AddDelling, Tosnhouse a1 byright use int BADa-MGDHEOD. The Downtown District is part of Emporia's identity!! Downtown serves to provide a community experience where we live, work, play and invest. Housing as a part of dov wntown can serve as the heart of vibrant neirhborhoods that foster support for local, small businesses. Praus dng houEg opportunciess whns a downtownd datnd : not a ncwr trend. itatodtions aeghborhood desgAwrh housng: and: sorct onts onensodio! thes sroets- peatiy waiaabk comunties o I ho. - - d M arow ày e ar as eine - - denn a brhne o Maets ca * ce a C ery aaes rkur - a - n nt vrar wtn n VAs - hyps e ve - 4 Public Hearing Item 1) Article VI,Division3 Use) Matrix, Sections 90-344 Matrix, Table 6.1, Residential be amendedto: AdsDwelling Townhouser as8 bynight" uset RdDamDamsor) Older downtown districts can appear empty ensuring a mix of housing opportunities provides: winy deantir Ha nlhed a dear a nd pubk eloning odera e aly ak Cerporie d * n aepor kla" aral asel n nal det d fo nar a aA nua - prla, nd ce the drg or Unl hg - Tearhaaa he dos mown dtet o - oe the goor * be a hey a hcorirg naly bovonte betwr Moacedh hoarc aptora dowrsaar m - a nos relleta edbuat hees, bocrig eiood s00or V Prvafons dh Kaote doler aularg soarhoset ebbhed nigHbohood haç m heardhecwe gy - honoe deursowr en Pohed fe orisiny Corprei % legr *gulty hoe sourhose or bes 40 ce iodbe apto Ko pea e whew Ase Mer thahet - hedty Oageieris Toarhaas dea wicon a shaid be detgned c meiy ia hes eoring ube lwbrs, coraidaring Aanora la kt *a, haing ds d CuEN 5 Public Hearing Item 1) Article V,Divisions UseMarix, Section 90-344. Matis, Tible 61, Residentiaibe amendedto: AddDwelling, Townhouse: ass' byripht uiei int tbel DosmowmDari0D. a e - 6 Public Hearing Item #2 AriclevI,Lei Periormance Standards, Division a ResidentiiUse: Sundards Sa 90-375. Dwelling tonhouse, subsectionb). Aschitectura! Treatmento tofTourhouebe amendad as Sollos: k ilansifal hna & daais. pep ald dou - whil wpue uh ANS a T Bu3A d he - - Suc.t 335. Dauliar. 1 e he Harves: l ma h whi sal e AC bca dn tnti - d Te Goala da 1 n - - ds at 5 - a - - - Kar - : - - 9 a lo naig 2 onst af àe 4 e h be - k anvas faak à K aiau! a d a pwl-ke a i e - lç a à - - - 6 dial as d 5 Rta - à - a S hs 1 nn - - d - - - à 1 1 N - a - a 9 : h - à - A - - is e - i e e a - ne 7 Public Hearing Item #2 2) Anticleyn, Use Performance Standards, Division 2. Residenthl Use Standards, Sec. 90 375.1 Duelling, townhouse, subsection (b) Architectural Treatment ofTonhouse! be amended as Sllos: Ar 0 T H - My - S - AS lore à - AuE 1 dfw be 1 - in - fs a 2 A - - a L - àe a - - - - - a wfr - - - Ca - A - - Vi : K a us i a AE e - 5 $1 5 à A - A - - - - A - s pdr V 1 1 4 4 - do e 2 a a 1 - - Vs alan - à - à 6 1 - A o - 5 - a a a a - ha - n - n - A8 - - a 3 s - te - - a - , - L . AFepa th 8 Public Hearing Item #2 2) ArtideVT, Use Periomance Standards, Division 2 ResidentaiUss Standards, Sc.90 375 Dwelling, townhouse, subsection Architecrun Treatment ofTounhous be amendad as sbllows: 9 uEI : 1s4 BARe STRLET ory oe IMPORS IAADES SIAMS - 9 Public Hearing Item 1) Article VI, Divisions. UseMatris, Sections 90-344. Matrix, Tblec 61, Residential be amendedt to: AddDelling, Townhouse A5A by-righ use in dhe Downtown! Discrict DT) The Planning Commission held a publc hearing on the amendment atits meeting on Febuay11,2025. The Commission voted unorimouylpxecommend apprcva. 10 City of Emporia, Virginia City Council Meeting April 1, 2025 1 Public Hearing Item #3 3) Articiel,In Genenal, Sections 90-2 Definitions to amend the use name and definition fxr Outdoor Sales, Seacai/Temporayt to Outdoor Sales as Sollons: Outdoor sales means any business or use (primary or accessory) that is conducted primarily out of doors, which may include but not be limited to: retail sales of fruits, vegetables, plants, flowers, Christmas trees, fireworks; or retail sales of usedg goods, such asi rummage sales or garage sales. Thei iom chonges bf fe Oemcn remcre he some. 2 Public Hearing Item #4 4) Ariclevn Use Standards, Division 43 Commertial, Satiss74100sawta, SetsontTempoary, (o change che DIe to allow ootdoor sales ando diaplay 35 acustomary accessory use to commercial retail development, as Sollous: 3 Public Hearing Item #4 4) Articley VI Use Strderdi, Divition 4. Commercial, Section 74100udoor Siles, Sescal/Temponsy o change the uset to allow ourdoor sles and display asicusromEy, accessery use toG commertiat: Fetail development, as Sblions uRXV! pwI a 4 Public Hearing Item #4 4) AridevI.Uves Standards, Division4. Commercial, Section 74100otdoor Siles, SssaTgayeeye theuset to allow outdoorsales modisplay aracustomy accessory UsE tos commercial: retail development, 31 Sllows: nou 5 Artidel,In Generat, Section 90-2.Defnitions to amend the use name and defnitioni fv Outdoor Salea, SeascralTemporasy, (o Outdoor Sales and Artice VIL. Use Standerds, Division4. Commrrial, Section? 7-4-100utdocr Sales, Sesorat/Temporryt to change the ose to allow ourdoor sales and displsy asa customary, accessory use (o commercial retail development, a Sollom. The Pianning Commission heid a pub C heaing ot theFebruoyll, 2025meeting. The Commission voted unonmeuylprecommend opprovo. 6 Councilman Threat opened the public hearing for public comment. Councilman Threat stated that with no one coming forward this public hearing is close. 25-28. Public Hearing - Code Amendment - Chapter 90. Zoning and Subdivision Ordinance Ar- ticle VI, Division 3. Use Matrix, Section 90-344. Matrix, Table 6.1, Residential and Article VII, Use Performance Standards, Division 2. Residential Use Standards, Sec. 90-375. Dwelling, townhouse, subsection (b)Architectura Treatment ofTownhouse Councilman Threat asked is there a motion. Councilman Saunders made a motion to adopt the Ordinance No. 2025-01 as presented to amend Chapter 90. Zoning and Subdivision Ordinance, seconded by Councilwoman Temple, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye NEW BUSINESS 25-29. Request from Councilwoman Yolanda Hines Cigarette Tax Councilman Threat stated that Councilwoman Yolanda Hines has requested that the topic of a cigarette tax be place on the agenda for discussion. The Councilwoman Hines stated that, after discussing the upcoming school costs and long-term debts, she believes this is a time of financial uncertainty and that these issues should be address proactively. She suggested exploring both a cigarette tax and a tax on marijuana sales. She also indicated that she would like to ask the City Manager to explore the process ofimplementing these taxes. 25-30. Interest Payment on Sabar Property = Zions Bank Invoice - Resolution Mr. Johnson stated that this memo is to inform Council of an upcoming interest payment related to the Sabar property land sale, under the Economic Development Authority (EDA). Mr. Johnson stated that the staffh have received an interest payment invoice from Zions Bank in the amount of$53,149, due on or before April 1, 2025. He also stated that this amount reflects a reduced balance following a prior debt payment that was made when Chick-fil-A purchased a portion ofthe land. Mr. Johnson stated that as this debt falls under the EDA, my recommendation is to temporarily borrow funds from the City's General Fund to cover this interest payment. He also stated that the EDA will reimburse the General Fund once additional land within the development is sold and proceeds become available. He recommended that the City Council adopt a resolution to approve the interest payment from the City's General Fund. Councilman Saunders made a motion to adopt Resolution 25-04 declaring its intention to reimburse the city's general fund for funds loaned internally to the Economic Development Authority for payment of interest related to the Sabar Property, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye 25-31. Recommendation for Audit Firm Selection - FY24 & FY25 Audits Mr. Johnson stated that the audit interview process that took place on March 13, 2025, was part ofthe efforts to select an auditing firm for the City's FY24 and FY25 audits. He also stated that three firms submitted proposals, and the evaluation team- comprised oft the Finance Director, City Manager, City Treasurer, and Financial Advisor--interviewed each ofthem. He further stated that after thorough review, the team was particularly impressed with Brown Edwards, a Virginia- based firm with over 40 years of experience auditing local governments. Mr. Johnson stated that Brown Edwards employs more than 450 professionals and has committed to assigning their most experienced auditors to our engagement to ensure the highest quality service. He also stated that they are highly knowledgeable in the Annual Comprehensive Financial Report (ACFR) process and GASB guidelines and have developed an efficient timeline to become familiar with our audit needs quickly. Mr. Johnson stated that staff also conducted reference checks with other local governments and received positive feedback regarding their professionalism, responsiveness, and audit quality. He also stated that in terms of cost, Brown Edwards has proposed a reasonable fee of approximately $90,000, with the first year being 20% higher to account for the initial set-up and preparation. Mr. Johnson stated that considering their expertise, capabilities, and powerful reputation, the evaluation team strongly recommends awarding the audit contract to Brown Edwards for both FY24 and FY25. Mr. Johnson stated that to enable Brown Edwards to commence preparations for the FY24 audit, please review and sign the attached engagement letter. He recommended that the City Council signs and commits to the engagement letter of Brown Edwards. Councilman Saunders made a motion to authorize and approve staff to signs and commits to the engagement letter of Brown Edwards, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye 25-32. Crater District Area Agency on Aging Board - Kevin Hines Mr. Johnson stated that Kevin Hines, who served as the City's representative oft the Crater District Agency on the Aging Board, has submitted his letter of resignation. He also stated that as ai result, this seat is now vacant. Mr. Johnson stated that this information is for your consideration. It was the consensus of the Council to carry this over to the next meeting. 25-33. John Tyler- AlcoholSafety. Action Program Board - Chief T. Hawkins Mr. Johnson stated that Chief Troy Hawkins' three-year term on the ASAP Board expired on February 28, 2025. He also stated that Chief Hawkins has indicated that he does not wish to be considered for reappointment at this time. Mr. Johnson stated that, however, he has recommended that Lieutenant Travis W. Allen be appointed to serve on the Board in his place. Mr. Johnson stated that this information is provided to the City Council for consideration. Councilman Lilly made a motion to appoint Lt. Travis W. Allen to server on the John Tyler-Alcohol Safety Action Program Broad, seconded by Councilman Saunders, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Counciwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye 25-34. Boards and Commission = Various Term Expirations Mr. Johnson stated the following individuals are currently serving 4-year terms on the City's Economic Development Authority Board, which expired on February 28, 2025: Mr. Vincent Lowery and Mrs. Gloria Robinson. He also stated that both individuals have indicated their willingness to be considered for reappointment by the Board. Mr. Johnson stated that Mr. William Robinson is currently serving a 4-year term on the City's Planning Commission that has expired. He also stated that he has indicated that he wishes to be considered for reappointment. Mr. Johnson stated that this information is provided to the City Council for consideration. Councilwoman Temple made a motion to reappoint Vincent Lowery and Gloria Robinson to serve another term on the Economic Development Authority Board, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye Councilwoman Temple made a motion to reappoint William Robinson to serve another term on the Planning Commission, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye 25-35. 2025 Real Estate Reassessment Mr. Johnson stated that once again it is time for the City's Reassessment. He also stated that the Request for Proposals was send out and two assessment companies replied. He further stated that one of the assessment companies that responded offered an estimated proposal total in the amount of$145,600 while the other offered a Request for Proposal in the amount of $114,400 which is inclusive of all services provided in the RFP. Mr. Johnson stated that after reviewing both proposals it is his recommendation that the City contract with Vision Government Solutions to perform the 2025 Reassessment for the City of Emporia at the cost of$114,400. Mr. Johnson stated that for the past reassessments Pearson's Appraisal Service, Inc., has performed the City's reassessment; however, they are now aj part ofVision Government Solutions. Councilman Saunders made a motion that the City contract with Vision Government Solutions to perform the 2025 Reassessment for the City of Emporia at the cost of $114,400.00, seconded by Councilwoman Mercer, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Counciwoman L. Dale Temple aye 25-36. 2025 Real. Estate CAMA System Mr. Johnson stated that due to the city changing the computer systems, the office will need ar new CAMA system that oversees the real estate assessment side of our records. He stated that after having a couple of companies come to do demonstrations and talk with localities that have used the systems, it is the request that Concise CAMA be select at a cost of $92,250. Mr. Johnson stated that as a matter ofinformation, the other bid that was receive originally was $178,000 but did offer a revised quote of$148,500. Mr. Johnson stated that this will be included in the FY26 Proposed Budget Councilman Saunders made a motion to authorize the 2025 Real Estate CAMA System, seconded by Councilwoman Temple, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye 25-37. City Manager's Proposed Budget Presentation Mr. Johnson provided the following Proposed FY'26 budget: When developing the Proposed FY'26 budget, we have cnsured that it aligns closely with the City of] Emporia' s mission, goals, and core values. The mission of the City of Emporia has guided every stagc of the budgeting process. Funding allocations have been strategically prioritized to support the following city goals: Creating and maintaining a clean and safe city through sustained investment in public works, sanitation, emergency serviçes, and public safety. Fiscal responsibility by balancing efficient service delivery with long-term financial sustainability. Fconomic vibrancy via support for local business initiatives, infrastructure enhancements, and workforce development. Health and wellness through funding for parks, recreational facilities, public health programming, and parinerships to improve community health ratings. Education and lifelong lcarning with continued support for library services, youth enrichment programs, and educational outreach. Culfural enrichment by promoting recreational and cultural opportunitics accessible to all residents. This budget also reflects the City's core values of Excellence, Motivation, Proèssionalism. Optimism, Responsiveness, Integrity, and Accountability. Thesc principles are cmbedded in departmental operations, employce expectations, and service standards citywide. The proposed City Manager's recommended general and utility fund budgets total $37,573,328. The general fund budget totals $28,384,839 and the utility fund budget totals $9,188,489. This includes General Fund Capital Projects in the amount of $570,000 and the Utility Fund $3,161,093, This recommended budgct funds the Greensville County Public Schools at $117,069 increasc in local funding in the amount of$4,466,000, which is the City's share ofthe total requested $10,898,105. The 1% state sales tax for education is $1,379,701. The funding allottcd to schools totals $5,846,201 for FY'26. In this budgct we will continue to utilize other means of funding such as federal and state grants. Primary impacts to the proposed Gencral Fund Operating Budget include: Revenucs: Increase ofS106,613 Real Estate Tax Revenue Decrease of$40,000 for Property Tax Increase of$150,000 for Meals Tax Increase of $27,066 for Machinery and Tools Tax Increase of $180,850 for Sales Tax Increase of $308,000 for Interest in Bank and Investments Expenditures: Pay Increase of2.5% Cost ofLiving and 2.5% for Pay for Performance -$271,232.99 New Reasscssment and CAMA system - $160,125 Move a Part-time position to Full-time in Registrar-$30.349.57 (additional) Reduction in Part-time hours in Registrar - $7,892 Increasc in Police contracted serviçes -$88,966 Rewire ofDispatch Office - $20,000 Equipment for New Fire Truck - $26,288 Backhoe for Streets Division - $150,000 (VDOT Maintenance Funds) Commercial Trash Truck for Sanitation - $420,000 Increase - Virginia Gateway - $45,000 Incrcase - Airport Capital - $217,723 Incrcase - Social Services - $75,479 Increasc - Children's Services Act - $23,824 Increasc - Southside Regional Jaul = $10,000 FY25) New Debt Service $201,960 Many requested departmental operating and capital expenditures have becn reduced and/or dclayed belping absorb these increascs. Expenditures included in thc proposed General Fund Capital Budget are as follows: Public Works/Strcets - John Deere Backhoe - $150,000 (VDOT Funding) Public Works/Sanitation - Commercial Front Load Trash Truck - $420,000 (lease purchase) The proposed FY 2025-2026 Utility Fund Budget may be summarized as follows: Revenues: Charges for Services $5,450,746 Penalties 180,000 Interest Incomc 105,000 Miscellaneous Revenuc 3,000 Non Revenue Reccipts S 3.449.743 TOTAL REVENUES $9,188,489 Exnenditures: Administration and Billing $ 525,719 Water Treatment Plant 1,148,885 Water Distribution 2,217,288 Wastewater Treatment Plant 847,765 Sewage Collection 1,778,818 Non-Departmental 415,972 Debt Serviçe $ 2.423.658 TOTAL EXPENDITURES $ 9,188.489 The minimum monthly residential utility bill will increase by $5.38 with the proposed water rate increase of 10% and a sewer rate increase of 10%. Thc proposed water and sewer rate increases arc primarily attributed to debt service costs associated with the replacement of water and sewer lines and installation of an upgraded water intake. Staff intend to pursue grant funding to cover engineering costs associated with upgrading water and sewer lines along Southampton Street which are needed to provide water and sewer services to the Norwood Property. We must repair and update Adams Street, Laurel Strect, and West End Blvd, sewer lincs. Primary impacts to the proposed Utility Operating Budget include: Revenucs: Increasc of$228,000 for Water Sales (10% increase on rates) (Total increase $2.61. on minimum bill) Increase of$182,000 for Sewer Sales (10% increase on rates) (Total increase $2.77 on minimum bill) Increase of$50,000 for Interest on SNAP account Increase of$3,161,093 bond proceeds from FY25 Decrease of$1,000 from General Fund Money Market Interest Expenditures: Pay Increase of2.5% Cost ofLiving and 2.5% for Pay for Perlormance - $50,689.24 Watcr Treatment- Increase in Chemicals $18,000 Water Treatment- Pickup Truck - $45,000 (lease purchase) Water Distribution/Sewage Collection - Mini Excavator -$124,650 (lease purchase) Water Distribution-New Lines and Meters -$16,000 New Debt Service -$465,581 (2024 bond and lease payments) Expenditures included in the proposed Utility Fund Capital Budget are as follows: Water Distribution Water Line Replacement- West End Blyd - $1,600,000 (2024 bond) Mini Excavator- Split with Sewage Collection $124,650 (lcasc purchase) Water Treatment Plant Pickup Truck = $45,000 (lease purchasc) Sewage Collection Scwer Main Replacement- West End Blvd-Replacenent - $1,561,093 (2024 bond) The proposed Y'26 Water and Sewer Rates are as follows: Proposed FY'26 Water Rates Minimum 2,000 gallons $28.69 Next 48,000/1,000 $ 13.31 Next 3,950,000/1,000 $ 8.09 Over 4,000,000/1,000 $ 6.15 Pronosed FY'26 Sewer Rates Minimum 2,000 gallons $30.35 Next 48,000/1,000 $11.41 Next 950,000/1,000 $ 8.72 Over 1,000,000/1,000 $ 6.78 Conclusion In conclusion, the programs outlined in (he attached budget document are attainable and worthy of your scrious consideration. Although this was a difficult budget process, 1 believe this budgct will allow the city to continue to provide outstanding customer service to our citizens. We will also be able to continue our efforts in Economic Development, and enhance our gateway's, while continuing to maintain a safe place tol live, work andj play. My sincere appreciation gocs to all Department Heads for their careful effort put forth in composing their respective departmental budgets. Special thanks to Alicia Hargrove, Dircctor of Finance and Lori Jarratt, Assistant to thc City Manager, who assisted in putting this document together and making various changes to assist me in balancing this budget. It is imperative that staff, as well as the Mayor and City Council, continue to monitor and adjust as necessary the 5-year financial forecast to identify the financial nceds ofthe City aver the next 5 ycars. Also, we must create a solid fund balance for our Enterprise Fund. We arc confident that this budget serves as a responsible and visionary financial plan-one tbat fulfills our commitments to residents and supports thc city's mission-driven approach to governance and community devclopment. Recommendation I recommend you adopt the proposed FY'26 General and Uulity Fund budgets and FY'26- 30 Capital Improvement Plan (CIP). Mr. Johnson stated that the Clerk will be reaching out to see which date the Council would like to schedule the first budget work session. He also stated that it will be the week of April 14. He further stated that he will be at a conference starting next Tuesday but will be ready to move forward with budget discussions. PUBLIC COMMENT Councilman T'hreat asked if anyone wished to bring a: matter before City Council members adhering to the three-minute time limit. Mrs. Sarah Rutherford, Unit Coordinator and Extension Agentfor 4-H, Virginia Cooperative Extension Office, 105 Oak Street, Emporia, Virginia 23847 stated that this week, they are hosting Spring Break Day Camps for youth ages 5 to 13. She also stated that today's camp focused on gardening and nature. She further stated that the kids learned about seed germination, planting, composting, and completed craft projects. She stated that they also planted trees at Veterans Park and enjoyed a scavenger hunt along the trail. Mrs. Rutherford stated that tomorrow's theme is "Mission Possible, 11 focusing on science activities and teamwork. Thursday will be "Fun with Food, " with crafts and food exploration. Mrs. Rutherford stated that these camps are just a small example of the programs we of- fer to youth in our community. She also stated that they appreciate your continued support through budget funding for our salaries and program needs. Mr. Melvin Hines, 510 Cleveland Street, Emporia, Virginia 23847 requested that the Council reconsider the approval of chicken ownership for city residents and rescind the land banking ordinance, citing concerns about financial burdens on low-income citizens. He also asked that public commenters should be allowed to respond if Council members debate their comments during meetings. With there being no further comments to come before the City Council, Councilman Threat closed the public comment portion of the meeting. **CLOSED SESSION*** Councilman Saunders moved that the Emporia City Council convene in Closed Meeting pursuant to Virginia Freedom of Information Act Sections $ 2.2-3711 (A) (1) Personnel, (A)(7) consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of City Council, and (A)(29) discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of City Council. Invited to attend the closed meeting, as necessary, are the City Manager and the City Attorney because theya are deemed: necessary and their presence will aid City Council in its consideration ofthe topics to be discussed, pursuant to Virginia FOIA Section 2.2-3712(F), seconded by Councilman Lilly, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye *** Regular Session *** Councilman Saunders moved that the meeting be returned to Regular Session. Councilman Lilly seconded the motion, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye CERTIFICATION Councilwoman White moved to certify the following: That the Emporia City Council return to Public Meeting and certify by roll call vote that only public business matters lawfully exempted from open meeting requirements by the Virginia Freedom of Information Act, and only such public business matters as were identified in the motion convening the closed meeting were heard, discussed, or considered during the closed meeting, seconded by Councilman Saunders, which passed as follows: Councilman Mark Lilly aye Councilman Clifton Threat aye Councilwoman Yolanda G. Hines aye Councilwoman Doris T. White aye Councilman James C. Saunders aye Councilwoman Carol Mercer aye Councilwoman L. Dale Temple aye ADJOURNMENT With no further business to come before the City Council, Councilman Threat adjourned the meeting. CADE Rsh Clifton Threat, President of Council doawiswltas Tessie S. Wilkins, CMC City Clerk