Common sense in Richmond

As the General Assembly begins its new session, I'm hopeful that some common sense will prevail. Roanoke has gone through enormous budget cuts - many of which should have occurred, and we've gotten to the point where we have very few areas to reduce services without having long-term impacts on our local economy, social network and core service levels.

I understand that, like Roanoke, the Commonwealth of Virginia has a significant budget deficit. I also understand that raising taxes during a struggling economy reduces short-term economic recovery. And I largely agree (meals tax not indicative!).

The result of continued cuts to public education and comprehensive services that the city must offer citizens creates short-term budget balancing capabilities, though I would contend the long-term economic recovery will be weaker and less stable. Once we eliminate core functions of schools and local government, those who use these services as foundations to future success and an ability to break cycles of poverty will be set back years. This isn't in the best interests of our communities or the Commonwealth, and though politically the short-term benefits seem desirable, the long-term implications are less than desirable.

Let's hope that common sense prevails in Richmond this year. Let's hope that there's a high expectation for civil and productive discourse. Disagreeing on issues is understandable. Attacking others for this philosophical divide at a personal level, or a level solely intended for political gain and targeted towards the next election cycle, is not what those we represent expect or deserve.

September meals tax up 2.6%

September 2010 meals tax collections exceeded September 2009 by 2.6%. Additionally, we remain ahead of budget projections for the current fiscal year. This is great news as it indicates that overall business for restaurants has increased - people are spending more money at restaurants in the city than expected.

Year to date, Roanoke City Public Schools have received $35,000+ more than they had expected or budgeted for. If the trend remains and meals tax revenues continue to meet or exceed expectations, our schools will receive the funds budgeted for and our city restaurants will have improved business overall.

I'll continue to update the numbers monthly.

City Approves Much-needed Updates to Financial Policies

Over the course of the last couple of years, we've discussed at length the need to put in place stricter and more financially sounds practices, saving money for economic conditions like the one we are in presently. Though it's taken a bit longer than I would have hoped for, Council adopted new policies to create "savings" accounts that will help to stabilize our bond rating, provide adequate reserves for risk management and self-insured claims, and provide a fund that has resources to dip into if necessary during a "rainy day."

I don't think this accomplishment of the city received enough attention last week. This was a policy passed based on economic conditions and the belief that we should be much better prepared for potential future downturns. It is an aggressive and responsible step towards ensuring the long-term financial stability of the city. I'm proud we took this step.

Below is a summary of the new policies:

1) Maintain the undesignated reserves at 10% and structure the risk management reserve. The city should fully fund those two reserves first by dedicating incremental revenue of $250,000 to $500,000 (.1% to .2% of today's budget) to funding of reserves, subject to funding availability and our overall progress in funding of reserves. We will fund those two reserves by FY 2016.

2) Once revenues recover to their peak level (FY09) as adjusted for CPI
and any permanent tax rate increases, establish an Economic Downturn/Budget Stabilization reserve of up to 5% of the budget. This reserve will be funded by allocating incremental funding of 10% of the growth in local revenues annually until the reserve is at the 5% level.

3) If we reach revenue recovery as mentioned in #2 but have not yet
completely funded the reserves cited in #1, it is understood that the
funding must first be used to complete the reserves listed in #1 before
contributing to the reserve in #2.

4) The city will use real estate, personal property and public service
corporation assessed values in our formal AV ratio policy, however we will maintain compliance from an internal perspective by applying only real estate assessments to the 4% limit.

New Police Chief Chosen

Congratulations to new Chief of Police Chris Perkins, who was introduced this morning in the Police Headquarters Community Room. Over the past two years or so, I've gotten to know Chief Perkins and have been incredibly impressed by his knowledge, creativeness, and involvement in the community. He has proven to be an excellent leader who uses innovative methods of policing to make the community safer and the police force more responsive to the needs of our neighborhoods. Chief Perkins was instrumental in the introduction of community policing to Roanoke, which has reduced crime and caused our police to become more connected with our neighborhoods to prevent crime as opposed to only reacting to it.

To me, the selection of Chief Perkins also shows wonderful judgement on behalf of City Manager Chris Morrill. This is the most significant appointment since he began his role, and is a great reflection on him.

Congratulations to Chief Perkins.

Work Ahead

Now that summer is officially over, the pace will pick up on Council. We will begin in earnest, having already had our first budget work session, to put together a budget that is devised in a very different way than has been done before. It's a process known as Budgeting for Outcomes, which essentially requires public leaders to set a price for the city government and to figure out what citizen's most value and how to spend taypayer dollars. I'd encourage you to read about it at http://www.psg.us/resources/osborneletterbfoupdate.html.

We will also have to begin to grapple with a Capital Plan in the city that offers little wiggle room in terms of debt capacity and the stability of our bond rating. So it would seem to me that we'll stick again with more infrastructural and existing capital projects in the current five-year plan.

We'll also be dealing with putting together a Master Plan for the former Countryside Golf Club property. Any plan should have significant recreational components that include well-designed green spaces. Other ideas that I heard at the multiple public meetings for neighbors of the property and other stakeholders could include some nice and compatible housing, a village center, a conference center, playing fields and other ideas. All stakeholders will have the opportunity to provide more public input beyond the meetings already held, and I hope folks will take advantage of that opportunity.

We're already working and have just gone through a third draft of the city's annual legislative plan, and members of Council will likely go to Richmond to lobby the General Assembly on certain requested legislative changes. I'm sure there will also be a lot of talk about our need for the Commonwealth to stop the massive funding cuts to public education.

We've got a busy fall ahead and I'm sure more will arise as we head into winter. There's a lot to be done.

New Council seated

Roanoke City Council met for the first time yesterday with two new members - Ray Ferris and Bill Bestpitch. I'm looking forward to working with both and am confident we'll have a cordial and collegial Council.

It's also important to thank Rupert Cutler and Gwen Mason for their service. They both worked hard to make the best decisions for Roanoke during these very challenging times. Dr. Cutler deserves the opportunity to have more free time and to pursue challenges important to him. And Ms. Mason has a challenging new role with the U.S. Attorney - one I know she'll be excellent filling.

As we begin a new fiscal year, we should work hard to find opportunities in this financially troubled time. There are opportunities out there and we need to find them and take advantage of our ability to more efficiently and effectively run city government.

Full Council dinner tonight to support meals tax/Roanoke City schools

Tonight City Council will gather to go on a progressive dinner in support of the temporary increase in the city's meals tax for the sole benefit of Roanoke City Public Schools. The schools faced an enormous deficit this year, mainly caused by funding cuts to localities out of Richmond. Council made the tough decision that a lack of responsibility in Richmond didn't merit similar irresponsibility in our own policy making decisions. Given the significant progress made in our schools over the course of the past two years, Council supported the temporary increase in the tax to stave off major programmatic cuts in the schools.

The dinner will begin with appetizers at Table 50 downtown, then proceed to Thelma's Chicken & Waffles on Orange Avenue for dinner. To conclude the evening, Council will travel to Pop's in Grandin Village for dessert. This dinner shows a strong commitment on the part of Council to support our local businesses while also supporting necessary funding for our schools.

I'm hopeful that the media will cover this positive, community-oriented and important event that shows a united Council working together to better our city. It's an opportunity to highlight an improved working relationship amongst Council Members, and one that is definitely newsworthy.

Regardless, it's the right thing for Council to make efforts to support our local restaurants during a time when few options left us with little choice but to increase the tax over the next two years. I'm really looking forward to it.