Council Ponders Another Revenue Source for FREDA, Notes Sacrifices of FRPD Officers as Part of National Police Week

The Front Royal Town Council met in work session at 6:30 p.m., Monday, May 13, at Town Hall for discussion of several rather routine matters, most headed for consideration at the May 28th meeting as part of the Consent Agenda. Prior to getting to those items Mayor Lori Cockrell presented a Proclamation for council’s endorsement acknowledging National Police Week May 12 to 18. The holiday in remembrance of the sacrifices of law enforcement officers was begun by President John F. Kennedy in 1962, when he established Peace Officers Memorial Day on May 15, which today has expanded to the week-long National Police Week remembrance.

Mayor Cockrell acknowledged two recent remembrances of local officers. Those were   the recent naming of a bridge at South Street for former Town Police Officer Lt. William Patrick “Pat” Farrell and the earlier Commerce Street bridge renaming for FRPD Sgt. Dennis Smedley. Farrell was an FRPD officer from 1971 to 1982, when his early retirement was caused by declining health from an on duty incident in November 1977 when he was bitten and scratched by a suspect authorities did not know at the time was infected with Hepatitis B. Farrell eventually succumbed to Chronic Hepatitis on July 24, 1991, at the age of 43. As noted above, Council recently dedicated the South Street Bridge in Farrell’s name, as they had previously with the Commerce Street Bridge for Sgt. Smedley, killed in the line of duty in 1983.

Mayor Cockrell at head of table convenes the May 13 work session. First on the agenda was a Proclamation endorsing National Police Week, recalling two local officers remembered here recently for their line of duty sacrifices. Then it was into closed session on two personnel matters.

Following the proclamation and remembrance of Officers Farrell and Smedley Council adjourned to Closed Session at 6:35 p.m. for an interview to fill a planning commission vacancy and discuss an item added at the work session’s outset. That was a personnel matter related to providing staff backup for Town Manager Joe Waltz, who is currently absent due to illness it was noted. Following the closed session adjournment at 7:30 p.m., as indicated in Amber Morris’s motion to add the item, Council unanimously authorized Finance Director B. J. Wilson to perform the duties of Town Manager in Waltz’s absence.

Perhaps the most interesting discussion of a series of budget and financial matters scheduled to come before Council in coming meetings was how to appropriate the expenditure of approximately $505,000 requested by Finance Director Wilson as part of a Budget Amendment “to account for revenues that exceeded FY24 budgeted amounts and to approve a FY24 Budget Transfer in the amount of $535,000 to allocate $515,000 (which it appeared was amended to $505,000 in a corrected agenda packet number by Wilson) in additional funds” to the FY24 budget. For while the staff agenda summary suggested that money be used “to advance the Town’s paving plan and to allocate $30,000 for Town Hall security” some Council members had other ideas as expressed beginning at the 19:05 mark of the linked Town video.

The idea of using those transferred funds to achieve established Council goals other than street maintenance initially came from Councilman Glenn Wood (addressing blighted, derelict buildings or creating a Deputy Town Manager’s position) and Vice-Mayor Wayne Sealock (funding additional FRPD officer positions) Councilwoman Morris commented that she liked the blighted building idea; however, it soon became apparent, with a twist (at the 29:28 video mark). That twist was committing the money to the Town’s unilaterally overseen Front Royal Economic Development Authority (FREDA, also known as the Business Development Board).

Finance Director B.J. Wilson, at the podium, had a busy work session, as he not only presented Budget Amendment requests, but stood in for Town Manager Joe Waltz, out due to illness. Councilwoman Amber Morris, first seat from podium to right of table, suggested investing a $505,000 budget amendment amount to help FREDA launch economic development operations.

“I think we’ve looked at for a long time, since FREDA was propped up in 2019 or whenever it started … We haven’t had funds to fund FREDA. And I think a one-time funding mechanism to FREDA would generate year-over-year revenue back to the Town in dividends if we did it appropriately. So, instead of throwing money at something that would be completed one time and done, I think if we fund FREDA and let them loosen the reigns and can go to work, that could generate revenue in the budget for next year and all the years to come, which is what we’re looking to do.”

After some additional conversation Mayor Cockrell asked council’s preference in coming to an immediate decision to enable it to be voted on at the May 28th meeting, or forward it to the first June work session for additional discussion and a decision on which fiscal-year budget the appropriation would be included in. The consensus was to point to the early June work session and a decision that would facilitate the money’s commitment in the appropriate fiscal year budget depending on a final consensus on usage.

Other Business

Several of the other budgetary requests moved toward consideration at council’s May 28 meeting the Tuesday after the Memorial Day holiday, others toward June discussion and decisions. They included:

Item 3-A – FY24 Budget Amendment to Receive Funds for Electric Pole Stock Replacement. As noted in the staff agenda summary, Finance Director Wilson explained that council was being requested to “… approve a budget amendment for the Town’s Fiscal Year 2023-2024 budget in the amount of $20,721.76. The Town has received $20,721.76 from Bright Speed to reimburse the Town for replacement of 22 electric poles. If approved, this budget amendment would offset the additional expense incurred by the Department of Energy Services for the pole replacements.”

In addition the staff summary notes: “Per the Pole Attachment Agreement between the Town of Front Royal and Bright Speed (formerly Century Link/Sprint), it is stipulated that in the event of the Town replacing one of Brightspeed’s poles with a Town stock pole, ownership of the pole transfers to Brightspeed. However, Brightspeed is obligated to provide the Town with a replacement stock pole. Regrettably, this practice has not been adhered to by Century Link in recent years, resulting in a shortfall of 22 poles owed to the Town. Following Brightspeed’s acquisition of the company, a decision was reached to address this discrepancy by invoicing Brightspeed for the expenses incurred by the Town for pole replacements – totaling $20,721.76.” The item was moved to the May 28 meeting for action.

Item 3-B –  FY2023-2024 Write Off for Bad Debt – BJ Wilson/staff summary: Council is requested to approve the removal of 5 years or of outstanding accounts receivable (bad debts) totaling $48,897.84 (151 utility accounts) on the Town’s ledger for the remainder of fiscal year 2023-2024. Staff has identified the accounts as bad debt and uncollectible based upon the Bad Debt Policy approved by Town Council in March 2019  and statute of limitations.

It was further noted that, “Annually the Town of Front Royal bills approximately $30 million for utility service. The Town of Front Royal Department of Finance collects approximately 99% of the utilities billed annually before accounts are deemed uncollectible and written off.” So, the bad debts mark about one percent of the Town’s utility service. The previous three fiscal years of authorized bad debts were cited at: FY21 – $41,474.18; FY22 – $46,705.80; FY23 – $47,314.36, with the FY24 total of $48,897.84 pending approval, expected to be authorized at the May 28 meeting.

B.J. Wilson was still at it late into Monday’s work session, as he filled in for the absent Town Manager and Town Attorney, in addition to his four budget updates to council.

Item 3-D – FY24 Budget Amendment, Financing, & Purchase for Single Axle Vac Truck – BJ Wilson. The staff summary noted: “The Town’s FY25 adopted budget for sewer maintenance includes funding for an annual financing payment on a single axle vac truck. Council will be requested to approve the purchase of a new single axle vac truck; specifically, a Vaccon non cdl 3-yard unit, from Atlantic Machinery Inc. using the cooperative contracting via the Virginia Sheriff’s Association Heavy Equipment Procurement Program bid#24-05-0713 in the amount of $451,518.00. This new vac truck will replace unit#644 a 1993 Ford L8000 … Council will be requested to approve the purchase of a new single axle vac truck; specifically, a Vaccon non cdl 3-yard unit, from Atlantic Machinery Inc. using the cooperative contracting via the Virginia Sheriff’s Association Heavy Equipment Procurement Program bid#24-05-0713 in the amount of $451,518.00. This new vac truck will replace unit #644 a 1993 Ford L8000.” Item also appears headed to a vote May 28.

Under “New Business” council was informed by Finance Director Wilson in the absence of Town Attorney George Sonnett that the Town would be required, as it is annually along with all municipalities across the state, to bring its local traffic and vehicle laws into compliance with any changes at the State level. Staff recommended that Council approve advertisement for a public hearing at the June 22nd regular meeting, so the changes will be in place at the July 1 start of FY-2025.

The work session adjourned at 8:10 p.m.

Click here to watch the May 13, 2024, Front Royal Town Council Meeting.