City Council - Special Meeting

Praise the Lord. Good evening everyone. Please stand for invocation. Miss Jacqueline Timber. Lord, thank you for your kindness. I thank you that you are the God that made the sun, the moon, and the stars. And that you love us. And I pray that your love would just be so present tonight and tangible in the mighty name of Jesus. Amen. Now for the pledge. Pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Thank you. Welcome everyone to our March 26 special call council meeting. I now turn you over to Mr. Winder Bender, our city manager for our proposed Fiscal 27 budget.

Uh thank you, mayor, vice mayor, members of city council. Uh tonight, I present to you the proposed fiscal year 2027 operating budget in the fiscal year 2027 through 2031 capital improvement program for the city of Lynchber. As always, this moment represents a milestone in a process that never truly stops. Just ask our CFO, Donna Wit.

That's right. Months ago, beginning in November, we asked city departments to submit a budget request within a maximum allocation reflecting the adopted fiscal year 26 budget with allowances for internal service charges as well as the increase for health insurance and the cost of living adjustment adopted by city council in fiscal year 26. As always, we evaluate we evaluated revenue projections, monitored economic conditions, and balanced operational needs with long-term capital planning. This year's budget is guided by a clear and intentional theme, a year of maintenance, momentum, and celebration. Fiscal year 2027 is a maintenance budget. There are no new citywide initiatives proposed. That is by design. Over the past several years, you have made significant generational investments in public safety, infrastructure, lifelong learning, economic development, and quality of life. This year is about sustaining what we've built, protecting core services, and ensuring residents see and feel the return on those investments. Maintenance is not a pause. It is stewardship, discipline, and delivering on promises. Promises to provide high quality municipal services, to protect our priorities, and to ensure that residents benefit from our prior investments. Before we walk through the numbers, I want to briefly reflect on where we are. According to data from SRE demographics, while comparable localities in central Virginia were estimated to lose population in 2025, Lynchburg continued to experience steady population growth. This growth is forecasted to continue through 2030. At the same time, median

household income data showed an increase from 2024 to 2025. These indicators reflect a city that is stable, well-managed, and positioned for continued momentum. In public safety, we opened the new police headquarters, modernizing facilities for the 21st century policing. Construction of fire station number nine will soon begin in partnership with Liberty University. We launched the implementation of a $4.4 million safer grant to staff the new station with 21 fire and EMS positions. Our recruitment and retention strategies are working. We strengthened public safety recruitment and retention efforts, resulting in significantly increased police applications and reduced vacancies. We also initiated and completed a transparent, community-driven national search for the police chief. And we are now beginning the same effort to hire our next fire chief. and infrastructure. We advanced the Blackwater CSO tunnel, the largest capital project in Lynchburg's history to protect our waterways and the James River. We restarted the 501221 improvement project, completed key neighborhood upgrades such as the Richland Hills sewer extension, began the development of a long-term refuge strategy, and earned national recognition for fleet excellence. This past year marked significant progress in strengthening Lynchburg's economic competitiveness and regional connectivity. We announced and oh by the way just flew the new United Express Jet service to Chicago O'Hare and Washington Douglas strengthening business and tourism connectivity. We celebrated expansions at Frammatone

Delta Star and Sentra. We secured more than four million in state funding for industrial site development at Ivy Creek Innovation Park and finalized an amphitheater operating partnership that will transform Riverfront Park into a regional destination. We continue to invest in lifelong learning and quality of life. Support for Lynchburg City Schools is at its highest level, including enhanced teacher compensation and capital improvements. We advanced redevelopment planning for White Rock Elementary School, opened the Kowana Centennial Riverfront playground in Jefferson Park playground, improved parks and trail connectivity, opened a new library branch, and expanded literacy outreach through a new bookmobile through a partnership with the Friends of the Library. These are visible, tangible outcomes of steady investment. As city manager, I'm required by state code to present a balanced budget wherein revenues meet expenses. This budget maintains Lynburg's ability to provide expected everyday municipal services in an inflationary environment with no increase in tax rates. The proposed operating budget and capital improvement program all funds includes the general fund, medical insurance, fleet, airport, water, sewer, storm water and other minor funds as well comp as well as component units in the capital improvement program. The to in total the budget is 620.7 million. This represents an increase of 68 million or 12.3%. compared to the adopted fiscal year 2026 budget. This increase is primarily driven by a higher level of investment in capital improvement program projects as well as the addition of the medical insurance

fund. The CIP all funds totals 560 million with 158 million program for investment in fiscal year 27. Consumer-based taxes such as sales and meals are projected to reflect a slight increase based on early 2026 collections. We are resuming refuge collection and mo motor vehicle license fees following the conclusion of the three-year waiver previously supported through one-time funding adopted by city council. Real estate tax revenue growth is driven by new construction reflecting continued investment in the city. And finally, personal property tax revenues are projected to increase based on current vehicle value trends. The proposed budget maintains core services in an inflationary environment. We continue to see upward pressure in key areas including employee and retirey healthcare and mandated social services. Ongoing inflationary and contractual costs to sustain current service levels remain a factor. This includes approximately 1.5 million inflationary increases, a 1.2 million increase in debt service to support previously approved projects and fire fleet replacement, and an additional $350,000 to fund a fullear lease payment for fire station number nine. We are also utilizing 1.3 million in one-time funds for greater for the Greater Lynburg Transit Company. 800,000 to support current transit operations and 500,000 to advance a comprehensive multimmodal transportation and bus route study in preparation for fiscal year 28. Offsetting some of these pressures is a 3.2 million reduction in the Virginia retirement system employer contribution rates for retirement and group life. These savings along with early revenue

projections are key to supporting targeted investments in our workforce and city schools. We continue to make strategic investments in our workforce with a focus on recruitment, retention, and stability. The proposed budget includes a 2.5% cost of living adjustment for nonsworn personnel and continues the pay progression plan for sworn police and fire positions. It also includes a $2.1 million increase in the city's local contribution to Lynburg City Schools to support the city's share of proposed state compensation actions. These investments are made without adding new positions. Now, let me turn to the capital improvement program. The CIP reflects discipline planning. It is how we protect assets, address deferred maintenance, and maintain the infra infrastructure that supports daily life. The program includes a $30 million investment in the second year of a three-year commitment to school facility infrastructure projects, representing a total $60 million investment in our school facilities. We are also addressing major facility renovations and other long-term building maintenance needs. For instance, the CIP includes 3 million in fiscal year 27 for fire station number one renovations with a total of 8.6 million programmed across the 5-year plan for improvements at multiple fire stations. Transportation, utility infrastructure, and stormwater compliance projects remain critical components of this 5-year plan. This CIP does not represent expansion. It represents preservation, protecting what residents already own. Finally, I would like to address our enterprise funds, water, sewer, and storm water. These funds are self-supporting. They are not subsidized by general fund tax dollars and must remain financially sustainable to meet

regulatory requirements and infrastructure needs. In the water fund, the proposed rate is $362 per 100 cubic feet. This supports our goal of replacing 1% of water lines annually to address aging infrastructure, advances critical upgrades at the AERT water plant and ensures compliance with the revised lead and copper rule. In the sewer fund, no rate increase is proposed. The rate remains $8.65. This keeps us on track with the financial requirements of the Cso consent order while continuing investment in remaining Cso projects in ongoing rehabilitation of our sewer system. And in stormwater fund, the proposed rate is $5.40 per service unit. These funds are focused on addressing significant storm water infrastructure needs, managing increasing debt service, and maintaining compliance with MS4 permit requirements. The proposed average residential impact is an average increase of a$16 to residential water bills. These adjustments ensure system reliability, environmental compliance, and long-term sustainability. Even with this increase, Lynchburg will remain well below the state average for combined water, sewer, and storm water charges, and our fixed monthly charge at $7.69 continues to be significantly lower than surrounding localities. This proposed budget maintains fiscal discipline while continuing and celebrating our city priorities of public safety. infrastructure, lifelong learning, economic development, and quality of life. Throughout this process, we have engaged the community and will continue to do so. A series of budget popups are scheduled for April 16th through the 18th with public hearings on Thursday, April 23rd at 6 p.m. in council chambers. The full proposed budget is available online and at the library hub located library hub located at the

Miller Center located at 301 Grove Street. In closing, fiscal year 27 is a year of maintenance, momentum, and celebration. It is a year we cut ribbons on projects years in the making. It is the year we open doors and deliver on commitments. It reflects a city that is stable, disciplined, and ready to enjoy the progress it has worked hard to achieve. I present to you a balanced, responsible budget aligned with your priorities and grounded in stewardship. From this moment forward, this is your budget. Any changes you make are yours. City staff will assist you in understanding the financial and operational impacts of any changes. And as always, we stand ready to implement the budget you adopt and to continue delivering excellent everyday municipal services to the residents of Lynburg. Thank you very much.

Thank you, Mr. Bender. This is this meeting is not a discussion meeting. Mr. Bender presented presented us with the with the budget and our next meeting will be on Friday, April 3rd at 9:00 a.m. Mr. Mayor. Mr. Mayor, this is not a discussion meeting. Mr. Mayor. Mr. Mayor. Yes, Lady.

Thank you, Mr. Mayor. Point of information, the increase in the Lynchburg City Schools operating budget to 2.1 million. Does that reflect the House approved pay actions or the Senate approved pay actions? because I think the Senate approved pay actions include a 3% increase for school personnel versus I think 2% in the House approved. So, I'm just I've got a question about what what that increase includes. Good news is we've got a budget retreat scheduled for April 3rd at 9:00 a.m. and we'll discuss that at that point. Thank you. Meeting the chair.