Meeting colors

OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Chesapeake City Council Meeting and Work Session - December 10, 2024

City Council — Tuesday, December 10, 2024

BodyChesapeake, Virginia

SessionCity Council

DateTuesday, December 10, 2024

StatusFILED

Video Record

0:00 / 2:20:13

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:04

I want to welcome everyone to our December 10th, 2024 work session.

0:10

I'll turn it up the mic over to our manager to discuss the topics.

0:15

Thank you, Mr.

0:16

Mayor.

0:16

We have two topics for you tonight.

0:17

We have the annual comprehensive financial report, and we have Chesapeake Land Bank Authority annual update, and I will turn it over to your chief financial officer Kristen Bailey to do the update to do the introductions to our external auditors.

0:32

Thank you, Mr.

0:33

Manager.

0:34

Good evening, Mr.

0:34

Mayor, Vice Mayor, and members of City Council.

0:37

It's my privilege to be here tonight to present the city's financial results for fiscal 24.

0:42

Before I begin, I'd like to take a moment to introduce a couple of people.

0:46

To my right is Michelle Heinz.

0:48

She's our new Deputy Director of Finance.

0:52

And to my left is Laura Harden, the audit director for Cherry Beckhart, our external audit firm.

1:01

And I'm going to turn it over first to Laura to go over the results of the independent audit for fiscal year 2024.

1:09

Okay, well, good evening, Mayor, Vice Mayor, members of City Council.

1:12

Thank you for having me here this evening to present the results of the June 30, 2024 audit of the City of Chesapeake.

1:20

First, I'll go over our results.

1:22

So we did audit the financial statements as of and for the fiscal year ended, June 30, 2024, and we have issued what's called an unmodified opinion on our financial statements and dated that opinion December 9th, 2024.

1:34

An unmodified opinion is the best opinion that you can receive as a result of your audit.

1:39

It's what a lot of people call a clean audit opinion, and really the only one that you would like to receive.

1:45

In addition to the audit of the financial statements, we also perform audits under both government auditing standards as well as the auditor of a public accounts specifications for audits of county cities and towns.

1:58

During our procedures, we did not identify any instances of non-compliance under gas or the APA specifications that are required to be reported to you.

2:08

We also gain an understanding of internal controls to help us in planning our planning and performing our audit procedures.

2:14

We identified no instances of material weakness in internal control over financial reporting that are required to be reported to you.

2:22

If we identified any control deficiencies as a part of our audit procedures, we would disclose those to you tonight.

2:28

We also perform an audit under the uniform guidance.

2:31

This is the single audit, the audit of the federal expenditures.

2:35

We have issued an unmodified opinion on the city's compliance with each major federal program.

2:40

And in addition, we didn't identify any material weaknesses and internal control over compliance in accordance with uniform guidance, similar to the uh financial controls.

2:51

If we identified any uh control deficiencies, we would identify those two tonight.

2:57

Um, in the note one of the city's financial statements, you'll see that they adopted GASBE statement number 100, which is for accounting changes and error corrections, which is effective for July 1, 2023.

3:09

This statement had no impact on the financial statements.

3:13

No other accounting policies were adopted or there were no and there were no changes in the application of any accounting policies during the year.

3:23

Finally, just some required communications.

3:26

We did not have any difficulties that we encountered in performing our audit, nor did we have any disagreements with management.

3:33

We did not have to consult with anybody outside of our engagement team for anything that we consider to be contentious matter.

3:40

On the date of our audit opinion, management did sign what's called a management representation letter, which represents to us that they provided us all the information we need to perform our audit.

3:50

We are not aware where management has consulted with other accountants for any kind of opinion shopping.

3:56

We did not identify any other findings or issues that are required to be reported to you.

4:00

We also did not identify any fraud or illegal acts as a result of our procedures, nor do we have any matters of going concern for the city.

4:09

And with that, I will take any questions before handing it back over to Kristen.

4:19

Anyone?

4:21

I don't have any questions.

4:22

Okay.

4:23

Okay, thank you, Laura.

4:25

We'll now turn our attention to the city's fiscal 24 financial results.

4:31

This evening, I'll provide a high-level overview of the general fund, the enterprise funds, our other post-employment and pension benefits trust fund, and the city's self-funded health plan.

4:45

As a reminder, I have a few highlights from the fiscal 24 for review.

4:50

5% general workforce wage increase was effective July 1, 2023.

4:56

The public safety step and structural plan increased effective January 1st, 2024.

5:02

Real estate tax rate remained at $1.1 per $100 of assessed value, and the new fund balance policy at $12% was effective July 1, 2023.

5:17

This slide provides a high level summary of the general fund financial results.

5:23

In the following slides, we'll talk take a closer look at each of these areas.

5:27

As you can see, revenues exceeded the budget by $47.4 million this year.

5:33

Additionally, we achieved expenditure savings of $37.6 million.

5:39

Next, the other financing sources and uses category reflects transfers between funds.

5:45

The favorable variants here stems primarily from $14.2 million budgeted in 24 for the Coastal Virginia Commerce Park, which has been carried forward and assigned for fiscal 25.

5:57

The remaining 4.9 million in this category represents investment earnings transferred back to the general fund from other funds.

Discussion Breakdown — Share of Meeting

Historic Preservation█████████████████████████████████████████████46%

Public Safety██████████10%

Fiscal Sustainability█████████9%

Land Use and Zoning█████████9%

Procedural███████7%

Miscellaneous██2%

Technology and Innovation██2%

Transportation Safety██2%

Engineering And Infrastructure██2%

Summary of Proceedings

Chesapeake City Council Meeting and Work Session - December 10, 2024

The City of Chesapeake held a work session starting at 5:00 PM and a regular council meeting at 6:30 PM on December 10, 2024, in the City Council Chamber. The work session featured presentations on the fiscal year 2024 Annual Comprehensive Financial Report (AFR) and the Chesapeake Land Bank Authority's annual update. The council meeting, adjourned at 7:22 PM, included unanimous approval of most agenda items, public comments on various topics, and discussion on a real-time crime center grant.

Work Session

Annual Comprehensive Financial Report (AFR): Presented by Chief Financial Officer Kristen Bailey and external auditor Laura Harden of Cherry Beckhart. The city received an unmodified (clean) audit opinion for fiscal year 2024. Key highlights: general fund revenues exceeded budget by $47.4 million, expenditure savings of $37.6 million, and a fund balance of $459.5 million at year-end. The city's pension liability was 87.4% funded as of June 30, 2023. The other post-employment benefits plan transitioned from a net liability of $1.9 million in FY23 to a net asset of $16.7 million in FY24, now 116.8% funded.
Chesapeake Land Bank Authority Annual Update: Executive Director John Harbin reported that the land bank has acquired or banked 24 parcels, primarily in South Norfolk, South Hill, and Great Bridge Village. Milestones include the sale of 1337 Commerce Avenue to Habitat for Humanity, sale of parcels on Liberty Street to a local builder, and acquisition of four parcels on Bainbridge Boulevard. The South Norfolk Residential Rehab Grant Program awarded $192,000 in FY24, leveraging over $250,000 in total investment. A new strategic plan is being developed. Council members expressed support and requested further discussion on the grant program.

Consent Calendar

Approved unanimously (9-0) with the exception of City Manager Item 3 (removed for discussion):
- Resignations from seven boards and committees.
- Acceptance and transfer of $39,500 from the Beazley Foundation to the Clerk of the Circuit Court.
- Acceptance and transfer of $15,082 from the Department of Homeland Security to the Emergency Food and Shelter Program (Human Services).
- Acceptance and transfer of $260,331 from the Department of Homeland Security to the Urban Areas Security Initiative Grant for a real-time crime and information center (Police) – removed for separate discussion.

Public Comments & Testimony

Public Hearing on Non-Planning Items:
- Elizabeth Goodwin (Executive Director, Great Bridge Battlefield and Waterways History Foundation) spoke in support of the sublease agreement, highlighting 25 years of partnership, partnerships with Brandeis and Dartmouth, and a grant for free field trips to Title I schools. She noted that increased operating hours required by the agreement will not generate sufficient revenue and requested sustainable financial support.
Agenda Item Comments:
- Jean Carideo (President, Great Bridge Battlefield and Waterways History Foundation) spoke in support of the operating agreement, emphasizing the need for adequate city funding to cover the required 40-hour weekly operations and the foundation's cost savings to the city.
- Vic Nicholls (self) questioned privatization of the Emergency Food and Shelter Program, expressed concern about the total cost of the real-time crime center, and asked about the cost of removing permit requirements for temporary signs.
Non-Agenda Speakers:
- Paul Ingle Jr. criticized city spending on Coastal Virginia Commerce Park, stormwater increases, delinquent tax collections, and inadequate code enforcement. He urged council to focus on roads and services.
- Adam Levell (self) argued that the city's personal property tax on his vehicle violates his constitutional right to travel, citing correspondence with officials. He requested council review the matter.
- Tommy Hart (self) described a two-year ordeal with a neighbor shooting across his farm, alleging police inaction despite multiple calls. He demanded better police response.
- T.C. Grey (self, Portlock Road resident) expressed concern about the proposed Portlock railroad overpass project, which she said would require eminent domain. She requested public information sessions and suggested electronic signage as an alternative.

Discussion Items

Real-Time Crime and Information Center (City Manager Item 3, removed from Consent): Council Member Rita Ritter asked for the total cost estimate. Deputy City Manager Robert Geis stated the project is evolutionary, with no current estimate. The $260,331 grant will fund hardware and software to start the center. City Manager Christopher Price added that the center will integrate existing camera, gunshot detection, and 911 data, and that Chesapeake is the only Hampton Roads city without such a center. Ritter emphasized utilizing all grant funds and continuing General Assembly funding requests. The item was approved unanimously (9-0).
Great Bridge Battlefield and Historic Waterways Museum Operating Agreement (City Manager Item 4): Council Member Ella Ward voiced support, noting the museum's 25-year history and the recent grant for Title I schools. Council Member Jeff Bunn added that the foundation won a grant for free field trips to all Title I schools. The resolution was approved unanimously (9-0).

Key Outcomes

Certification of Closed Meeting (4:00-4:51 PM): Approved 9-0.
Agenda Approval: Approved 9-0.
Minutes of November 12 and 19, 2024: Approved without objection.
Public Hearing Item A (Right-of-Way Easement with Dominion Energy): Resolution 24-R-068 approved 9-0.
Public Hearing Item B (Sublease with Great Bridge Battlefield and Waterways History Foundation): Resolution 24-R-069 approved 9-0.
Consent Agenda (with exception of Item 3): Approved 9-0.
City Manager Item 3 (Real-Time Crime Center Grant): Approved 9-0.
City Manager Item 4 (Operating Agreement with Foundation): Resolution 24-R-070 approved 9-0.
New Business A (Initiating Resolution on Temporary Signs): Resolution 24-R-071 approved 9-0, referring to Planning Commission.
New Business B (Initiating Resolution on Design Guidelines): Resolution 24-R-072 approved 9-0, referring to Planning Commission.
Council Member Newins' Request: Directed City Manager to explore with the Commissioner of Revenue whether IRA draws are considered part of gross income for senior tax reductions, and to report back.

Next Steps

The Planning Commission will consider amendments to remove permit requirements for temporary signs on non-residential property and to update design guidelines references in the zoning ordinance.
The City Manager will review the senior tax benefit clause regarding IRA draws and report to council.

Meeting Transcript

I want to welcome everyone to our December 10th, 2024 work session. I'll turn it up the mic over to our manager to discuss the topics. Thank you, Mr. Mayor. We have two topics for you tonight. We have the annual comprehensive financial report, and we have Chesapeake Land Bank Authority annual update, and I will turn it over to your chief financial officer Kristen Bailey to do the update to do the introductions to our external auditors. Thank you, Mr. Manager. Good evening, Mr. Mayor, Vice Mayor, and members of City Council. It's my privilege to be here tonight to present the city's financial results for fiscal 24. Before I begin, I'd like to take a moment to introduce a couple of people. To my right is Michelle Heinz. She's our new Deputy Director of Finance. And to my left is Laura Harden, the audit director for Cherry Beckhart, our external audit firm. And I'm going to turn it over first to Laura to go over the results of the independent audit for fiscal year 2024. Okay, well, good evening, Mayor, Vice Mayor, members of City Council. Thank you for having me here this evening to present the results of the June 30, 2024 audit of the City of Chesapeake. First, I'll go over our results. So we did audit the financial statements as of and for the fiscal year ended, June 30, 2024, and we have issued what's called an unmodified opinion on our financial statements and dated that opinion December 9th, 2024. An unmodified opinion is the best opinion that you can receive as a result of your audit. It's what a lot of people call a clean audit opinion, and really the only one that you would like to receive. In addition to the audit of the financial statements, we also perform audits under both government auditing standards as well as the auditor of a public accounts specifications for audits of county cities and towns. During our procedures, we did not identify any instances of non-compliance under gas or the APA specifications that are required to be reported to you. We also gain an understanding of internal controls to help us in planning our planning and performing our audit procedures. We identified no instances of material weakness in internal control over financial reporting that are required to be reported to you. If we identified any control deficiencies as a part of our audit procedures, we would disclose those to you tonight. We also perform an audit under the uniform guidance. This is the single audit, the audit of the federal expenditures. We have issued an unmodified opinion on the city's compliance with each major federal program. And in addition, we didn't identify any material weaknesses and internal control over compliance in accordance with uniform guidance, similar to the uh financial controls. If we identified any uh control deficiencies, we would identify those two tonight. Um, in the note one of the city's financial statements, you'll see that they adopted GASBE statement number 100, which is for accounting changes and error corrections, which is effective for July 1, 2023. This statement had no impact on the financial statements. No other accounting policies were adopted or there were no and there were no changes in the application of any accounting policies during the year. Finally, just some required communications. We did not have any difficulties that we encountered in performing our audit, nor did we have any disagreements with management. We did not have to consult with anybody outside of our engagement team for anything that we consider to be contentious matter. On the date of our audit opinion, management did sign what's called a management representation letter, which represents to us that they provided us all the information we need to perform our audit. We are not aware where management has consulted with other accountants for any kind of opinion shopping. We did not identify any other findings or issues that are required to be reported to you. We also did not identify any fraud or illegal acts as a result of our procedures, nor do we have any matters of going concern for the city. And with that, I will take any questions before handing it back over to Kristen. Anyone? I don't have any questions. Okay. Okay, thank you, Laura. We'll now turn our attention to the city's fiscal 24 financial results. This evening, I'll provide a high-level overview of the general fund, the enterprise funds, our other post-employment and pension benefits trust fund, and the city's self-funded health plan. As a reminder, I have a few highlights from the fiscal 24 for review.

SUMMARIZED BY OPENPUBLICA AI

TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com