Council ponders variables in Special Event permitting and Credit Card fee waiver proposals

Money makes the world go round – but how do you make it work to the best effect for all involved? That seemed to be the theme of discussion surrounding two proposed alterations to Town policies at a Monday evening, June 14, Front Royal Town Council work session. And citizens will have several more chances to weigh in on these issues heading toward scheduled decisions on both on June 28.

At issue were proposed policy changes to permitting and fees for Special Events held on Town property and an initiative to remove credit card fees from payment of Town utility and tax bills. The latter of those is forecast by the Town Finance Department to cost the Town about $140,000 or more “in expenses associated with credit card fees for the FY-21-22 Budget” with a three-year trend of a 17.6% average annual increase in those costs appearing to continue into the current FY-2021 Fiscal Year, staff noted.

Finance Director B.J. Wilson, far left, briefs the council on the revenue implications of a blanket waiver on fees to cover service charges on the use of credit cards in paying Town bills. Royal Examiner Photos by Roger Bianchini

Town Finance Director B. J. Wilson utilized a formula combining that above revenue loss estimate with the number of Town utility account customers (8,481) to average a $1.77 hike to utility bills over the course of a year to theoretically cover that lost revenue. However, contacted Tuesday Wilson explained the current plan wouldn’t actually tag that $1.77 on to coming utility bills if the fee waiver is approved by council next week. Rather, the plan as it stands is that the Town would absorb the loss spread across its various utility Enterprise Funds, making that absorption less painful to the Town Budget.

Several council members noted negative feedback from citizens who do not pay with credit cards to the notion of absorbing the fee waiver revenue loss in any way.

Councilman McFadden said he personally supported the change, reasoning that it offered the Town more options in changing systems on the technical end of the Town’s software and billing equations, but noted some “unknown variables” factoring into a final decision.

That decision, like the one on changes to the Special Events permitting and fees, is slated for council’s evening meeting of Monday, June 28, at the Warren County Government Center.

Councilman Meza expressed some opposition to credit cards being used to pay tax bills but cited private sector energy companies and oil and gas vendors, none of which charge fees for credit card use. Questioned by Vice-Mayor Cockrell on the difference between private-sector companies that work for profit versus municipalities that can only charge rates to cover expenses, Meza responded that the Town could charge profit-making rates on its utility Enterprise Funds. He cited large reserve amounts in Town Enterprise Funds to support his contention they operated for profit.

However, Cockrell pointed out those reserves can only be used to support repair, maintenance or expansion work on those specific utility infrastructures and are not actually profit reserves that could be applied anywhere in the Town budget. With the amount of utility infrastructure work the Town has undertaken recently, some state or federally mandated, Councilman Gillespie later noted the crucial role those Enterprise Fund reserves played in the Town being able to accomplish upgrades without tax hikes or even higher utility rate adjustments. Some rate adjustments have ensued at the recommendation of cost-analysis consultants so that all the Town utilities can cover expenses and keep needed reserve streams at necessary levels.

Councilwoman Thompson noted a difference in the use of credit and debit cards, the latter essentially being plastic checks, pointing out “we’re calling everything credit cards” in the fee discussion.

However, Finance Director Wilson later noted that all plastic transactions, including debit cards, are hit with processing fees.

Pointing to her own monthly auto-withdrawal payment plan directly from her bank to the Town, Vice-Mayor Cockrell wondered how many citizens knew that option was available. As to reducing staff paperwork, she also wondered at the necessity of still receiving monthly paper bills from the Town with an auto-withdrawal payment plan in place.

Mayor Holloway injected that in the previous conversation on Special Events permitting a council consensus on a flat $250 fee appeared to be reached as an alternative to a list of specific costs for various staff or utility services the Town would provide for differing events across a broad range of time, space and services necessary. – “So, what happens if it costs the Town $500, $600 or $1,000 dollars, who’s going to pay that?” the mayor asked of relative overheads in the two discussions. It was noted on the Special Events front that the Town often sees a return on investment from special events related to increases visitation of downtown businesses, including but not limited to sales tax revenue, including by tourists drawn for some of the larger seasonal events.

Special Events

And on the Special Events front, Town Purchasing Agent Alisa Scott presented a rating system developed as part of a review of Special Event permitting and impacts on neighboring businesses, property owners, and citizens beginning in October 2019 and continuing to this day. It was noted that the process is continuing with “A series of both in-person and online informational meetings hosted by Staff to garner feedback from business owners, property owners, and citizens.

The first of those was cited by Town Manager Hicks as occurring at the New Town Pavilion in the Village Commons Thursday, June 17, at 10 a.m.; a second will be held at Town Hall Monday, June 21, at 5 p.m.

As noted above, that process of continued public input leads up to Council’s June 28, 7 p.m. meeting at the Warren County Government Center at which a Public Hearing will be held to receive a final dose of public input prior to council’s vote on the matter.

Purchasing Agent Alisa Scott, standing at the right, reviews proposed changes to the Town’s Special Events permitting process.

Three primary special event categories were listed in the draft code:

1 – Community – “Events geared toward Front Royal/Warren County community attendance” with applications accepted “between 12 months and 30 days prior to the event”;

2 – Tourism – “Events geared toward visitor attendance” with “applications accepted between 12 months and 6 months prior to the event”;

3 – Municipal – events that can be “hosted, co-hosted, or sponsored by the Town at any time” with applications accepted between 12 months and 30 days prior to the event”.

Following that list, it was noted that “Applications shall not be accepted for events geared toward an invite-only, private, or a select group of people.”

A 10-category “Special Events Matrix Criteria”, currently at 7 categories, is being established to qualify events for permitting. A minimum ranking of 33 is required for permit approval. Scores of 33 to 42 are categorized as “Community Special Events”; 43 and above are categorized as “Tourism Special Events”; and events scoring above 40 “are eligible for discretionary Town support” the new code summary explains.

The draft changes note that the Town Manager or that nebulous “Town Manager’s designee” “may impose, as conditions to granting a permit, such further requirements and restrictions as will reasonably protect the health, safety, welfare, peace, and order of the participants, spectators or general public” the draft outline adds.

Perhaps tellingly in the wake of the apparent abandonment of last year’s “Weekend Walking Mall” downtown concept, under the draft “Policies and Procedures” section it is stated that “All events shall … not unreasonably interfere with the normal use of property, right-of-way or facility by the Town or general public.” Could that be an indication that much of the privately gathered input over the past year has been in opposition to a patterned closure of any portion of East Main Street to vehicular traffic?

A downtown and Village Commons area “Code of Conduct” must also be observed in conjunction with all events, essentially prohibiting rude, annoying, or illegal behaviors, including alcohol or portable sound system use, unless authorized by Town permitting for the event.

Potential fees regarding insurance liability coverage and various services the Town might provide, like electrical, sound, and other amenities drew quite a bit of discussion. Rather than appear to be “nickel and diming” applicants into a higher fee range than might be doable for some, the council concurred with Councilman Meza’s proposal of instituting “a $250 all in” blanket application fee.

As noted above, both matters are slated for council discussion and action at the 7 p.m. June 28th meeting at the WCGC. We’ll see how the public weighs in on these matters if they choose to before the final council decision is made.

Other business

In other business, town officials got a presentation and offer, also received by the County, to join in the Shenandoah Rail to Trail Program. Sixteen municipalities are already involved in the effort to convert abandoned railroad right-of-ways into usable by a variety of means of recreational transportation pathways in and adjoining involved communities. The reception was very positive.

Town Attorney Doug Napier briefed council on the coming legalization of recreational marijuana effective July 1, and some confusing surrounding regulations which continue to make the sale or transport across state lines illegal for several years. Napier also gave an update on options involving the continued lack of successful marketing or use of old Town Hall by the owner involved in the swap for the Afton Inn property in 2014.

Town Attorney Doug Napier, seated right foreground, reviewed coming changes to recreational marijuana regulations and Town options on attempting to force the hand of old Town Hall owner Frank Barros to make some positive moves on sale or development of that building.

Napier noted that owner Frank Barros is required to maintain the property to a certain physical standard. It was observed that when last the Town demanded an inspection, the owner had simply initiated repairs to bring the building into compliance, offering at a sale price around $1.3 million far above its assessed value.

For those with a memory of the origins of Town issues with Barros, it appears the Northern Virginia developer continues to revel in punishing the Town for a previous council’s suit filed against its own Board of Zoning Appeals (BZA) that had granted Barros an exemption to the local Code prohibiting any downtown building from being constructed above the height of the Warren County Courthouse, blocking his plans for the redevelopment of the Afton Inn in 2007. Installation of a first-floor fountain was going to require the upper floors and roof structure to be redesigned to about 10-feet above the courthouse. Following that legal reversal of the BZA waiver, it all went downhill between Barros and local officials.

In a final open session item that will be explored in more detail in a coming Royal Examiner story, a new Scott Lloyd proposal to create a “Medical Freedom Ordinance” that would prevent any business or entity operating in town from refusing to hire or continue the employment or certain assignments of existing employees over a refusal to receive the COVID-19 vaccination, gained little traction. However, a resolution in support of a watered-down second ordinance option not requiring town employees to be vaccinated appears headed toward a vote.

Council prepares to go into a closed session to open Monday’s work session. Nearly an hour-an-a-quarter later they were back in open session. A second personnel matter closed session was the final work session agenda item as well.