1 Appomattox Town Council Council Workshop Meeting May 23, 2017-6:00 pm
The Appomattox Town Council held a workshop meeting on Tuesday, May 23, 2017 at 6:00 p.m. at the Appomattox Municipal Building, 210 Linden Street, Appomattox, Virginia with Mayor Harvey presiding.
Members present: Timothy W. Garrett, C. Lewis McDearmon, Jr., Mary Lou Spiggle, Steven T. Conner and Claudia G. Puckette.
Absent: M. Erin Finch
Others present: Susan Chapman, Kim Ray, Gary Shanaberger, Clarence Monday, Roxanne Casto
Mayor Harvey called the meeting to order.
Presentation of FY 2016 Annual Audit-Susan Chapman, Brown, Edwards & Company, LLP
Mrs. Chapman reviewed the FY2016 Annual Audit including the process and when the final documents would be mailed to the Town. This audit had an unmodified opinion, which is a good thing. There were no major changes in presentation this year. GASB 68 which is the net pension showed a well-funded VRS position. The VRS reporting is always a year behind.
The General Fund assets show that cash is increasing and receivables are increasing. The General Fund liabilities are relatively stable and the unassigned fund balance is growing. All of these are good things.
We (auditors) cannot tell you (Council) how much to keep in reserves or unassigned fund balance. That is a governing body decision.
The General Fund revenues are doing well. There has been a slight drop in property tax, due to reduce in RE tax rate. All other taxes have nearly doubled. The General Fund expenditures have increased by 3% however you (Council) are still putting money back in the General Fund.
The Water Fund cash has increased in the last couple of years. This is due partially to the rent assignment agreement. The capital asset is declining because of the Town’s aging system. The Town needs to continue to look at lines and infrastructure. The Water Fund liability is declining, specifically because the debt is declining. All of the cash from the sale of the water tank cell towers will be received before the revenue is realized.
The Water Fund Operating Revenue vs. Operating Expense has been in the negative for the last 5 years. This is due to depreciation. Depreciation is a use of the assets and is a non-cash expense. The Town needs to recognize the expense. Mrs. Chapman recommended a Rate study be performed. The cash reserves are growing in the Water Fund. The depreciation is the real issue with the Water Fund.
2 Appomattox Town Council Council Workshop Meeting May 23, 2017-6:00 pm
The Sewer Fund is also operating at a loss but has made progress. The water and sewer funds need to be stable.
The management letter still addresses segregation of duties as well as other comments & suggestions. Inventory is now being recorded. There is a delicate balance between what items are needed and what is obsolete.
Roxanne will provide Council with a copy of the Management letter tomorrow.
Looking out on the horizon, there will be new GASB standards affecting the financials. The GASB (General Accounting Standards Board) wants to change the format for reporting. It would be more like what you would see in a for-profit world. Brown Edwards will communicate any changes to the Town.
Mrs. Chapman asked Council if they had any question. After hearing none, Mayor Harvey thanked Mrs. Chapman for all the information.
On a motion by Mr. Garrett, seconded by Ms. Spiggle, Council voted to accept the FY2016 Annual Audit by Brown, Edwards, & Company, LLP. All members present voting aye. Motion carried 5-0.
Request to vacate an unopened and unnamed alley.
On a motion by Mr. Garrett, seconded by Mr. Conner, Council voted to refer the matter to the Town Attorney to give an opinion regarding the structures and driveway located within the unopened and unnamed alley. All members present voting aye. Motion carried 5-0.
On a motion by Mr. McDearmon, seconded by Ms. Puckette, Council voted to convene in Closed Session pursuant to Section 2.2-3711 (A) 1 of the Code of Virginia, 1950, as amended for the purpose of interviewing prospective candidates for the position of Town Manager with the Town of Appomattox, specifically being prospective candidate D and for the purpose of discussion of prospective candidates for employment, specifically being applicants for the position of Town Manager.
VOTE: Garrett-aye, McDearmon-aye, Spiggle-aye, Conner-aye, Puckette-aye, Finch-absent. Motion carried.
The motion was re-opened to the public.
Mr. Conner made the following motion:
WHEREAS, the Council of the Town of Appomattox has convened a Closed Session on this date, pursuant to an affirmative recorded voted and in accordance with provisions of the Virginia Freedom of Information Act; and
3 Appomattox Town Council Council Workshop Meeting May 23, 2017-6:00 pm
WHEREAS, Section 2.2-3712 of the Code of Virginia requires a certification by Town Council that such closed meeting was conducted in conformity with Virginia law;
NOW, THEREFORE, BE IT RESOLVED that the Appomattox Town Council hereby certifies that to the best of each members knowledge: (1) Only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to which this certificate resolution applies, and (2) only such public business matters as were identified in the motion convening the close meeting were heard, discussed or considered by this Council.
The motion was seconded by Ms. Spiggle, and Council by the following recorded vote adopted the motion:
VOTE: Garrett-aye, McDearmon-aye, Spiggle-aye, Conner-aye, Puckette-aye, Finch-absent. Motion carried 5-0.
Council Concerns
Mr. Garrett requested information/update on where Council stands on the staggered terms. Mr. Monday stated he had spoken with Frank Wright, Town Attorney and that the bill died in committee during General Assembly session of 2017. Therefore, the Town will need to start the process all over, including a public hearing.
Council members will contact Delegate Fariss and Senator Peake individually to garner support for charter change with regards to staggered seats and term changes.
Mr. Garrett reported that the Courtland Festival Park committee will meet on Wednesday, May 24.
Mayor Harvey read the following statement:
The Town Council, as authorized by Virginia Code 2.2-3712 (B), within fifteen (15) days of said announcement, will be interviewing potential Town Manager candidate(s), in Closed Session, at undisclosed time(s) and location(s). Following such interview(s), the Council will certify the same at its next regular scheduled meeting.
On a motion by Mr. Garrett, seconded by Mr. McDearmon, Council voted to adjourn at 8:10 pm. All members present voting aye. Motion carried 5-0.
Roxanne W. Casto, MMC Clerk of Council
Paul D. Harvey, Mayor