Special Recognition Jamie Gaucher was recognized by Council for his service as Middleburg’s Business & Economic Development Director from July 10, 2017, through February 12, 2021. - https://bit.ly/3pJ8Y4w Paid Parental Leave The Town is currently updating the Employee Handbook. Town Manager Danny Davis presented Council with the following document for further discussion. - https://bit.ly/3slFRG2 The Town Council has requested recommendations on adding paid parental leave (maternity/paternity leave) to the Town’s Employee Handbook. The Commonwealth of Virginia recently enacted new policies for paid parental leave, which is the basis for the recommendations below. Paid Parental Leave • Eight (8) weeks of paid leave for any employee for the birth of a child o To give birth to, care for, and bond with a newborn child, and to provide for time for physical and medical recovery o Employee is a legally recognized biological parent. • Four (4) weeks of paid leave for any employee for the placement or adoption of a child o To care for and bond with a child placed with the employee through adoption or foster care or a legal custodial arrangement. o employee is a legally recognized adoptive, foster, or custodial parent • Requires same qualifications as Family Medical Leave Act (FMLA) o Must be employed for at least one year o Must have worked at least 1,250 hours in the prior 12 months • Will coincide with FMLA, which provides up to 12 weeks of leave o At the end of paid parental leave, the parent can choose to use annual leave, sick leave, or unpaid leave for the remainder of the FMLA period • May be used in a continuous period or intermittently, with approval, within first six (6) months of the birth or placement of a child • Unused parental leave is forfeited FISCAL IMPACT There will be limited fiscal impact by implementing this policy. Generally, employees are already paid while on maternity/paternity leave, as they have sufficient annual or sick leave to cover the period of time. Nonetheless, there have been situations where employees have exhausted all of their leave, and the addition of paid paternity leave would keep them in a paid status. Actual fiscal impact is situational and dependent on a number of factors. Nonetheless, it is not expected that the cost (on an annualized basis) would be more than $2,000-$5,000 per year. Proposed FY 2022 Budget The Town Manager Danny Davis presented Council with the Proposed FY 2022 Budget. - https://bit.ly/3aNrt3P Highlights of the Proposed FY22 Budget General Fund An assumption that revenues will decrease 9.4% ($393,521) due to COVID-19 impacts Primary reductions are in Meals Tax (-20%), Occupancy Tax (-10%), and Business License Tax (-6.2%) A “worst case” COVID-19 scenario is also provided that assumes revenues will decrease approximately 30% ($1,126,279) No changes in tax rates or fees are proposed. Planned expenditures decrease by $140,145 over FY21 Adopted (a decrease of $362,826 over FY21 Amended, which included additional COVID-19 support expenditures) Proposed 2% market adjustment for staff salaries Continued 2% (on average) merit program for high-performing staff No major enhancements Minor technology enhancements Ongoing review of economic development programs (marketing, events, etc.) COVID-19 expenditure plan of “frozen” expenditures if revenues drop Zero-Based Budgeting approach for Police Department O&M Capital Improvement Program Focus on Town Hall project o Investment in vehicles and community enhancement projects Utility Fund Continuation of regular 3% rate increases to account for inflation, operations, and capital investments An assumption that revenues will remain flat for FY22 due to a decrease in consumption No expectation of availability fee revenue, although any availability fees will assist in one-time capital project costs. Analyzed key line items for proper development of budget (zero-based) Moved certain capital expenditures from operating budget to a “Capital Asset Replacement Fund” for ongoing capital needs; will rollover to future years if not completely expended. Proposed update to Utility System Master Plan Capital Improvement Fund Key projects include membrane replacement and Well 4 Clearwell Continued investment in Inflow and Infiltration remediation Health Center Fund Planned phased-in reimbursement of expenses from COVID-19 support programs $50,000 in FY22 Remainder in FY23/24 Renewed intention to create Middleburg Charitable Foundation - Anticipated by May 1 Future charitable contributions from the Town will go to Foundation, to then be distributed.