Board of Supervisors

Virginia:

AT A REGULAR MEETING of the Nelson County Board of Supervisors at 7:00 p.m. in the Circuit Court Room located in the Nelson County Courthouse.

Present:
Allen M. Hale, East District Supervisor – East District
Constance Brennan, Central District Supervisor – Chair
Joe Dan Johnson, South District Supervisor – Vice Chair
Thomas D. Harvey, North District Supervisor
Stephen A. Carter, County Administrator
Candice W. McGarry, Administrative Assistant/Deputy Clerk
Debra K. McCann, Director of Finance and Human Resources
Fred Boger, Director of Planning and Zoning

Absent:    Thomas H. Bruguiere, Jr. West District Supervisor

I.    Call to Order

Ms. Brennan called the meeting to order at 7:03 pm, with four (4) Supervisors present to establish a quorum, and Mr. Bruguiere being absent.

A.    Moment of Silence
B.    Pledge of Allegiance – Mr. Harvey led the Pledge of Allegiance

II.    Public Hearings

A.    FY10-11 Nelson County Budget (All Funds)
The Nelson County Board of Supervisors will hold a public hearing on the proposed budget for the 2010/2011 fiscal year. Comments from county citizens will be accepted on all Funds of the proposed budget.

Ms. Brennan introduced Ms. McCann who gave a PowerPoint presentation and reported the following on the FY10-11 Budget:

Budget Funds Include:

•    General Operating Fund
•    School Operating Fund (&Textbook Fund)
•    Debt Service Fund
•    Capital Fund
•    Courthouse Project Fund
•    Broadband Project Fund
•    Community Development Block Grants
•    Piney River Water/Sewer Operations

There are ten funds that comprise the overall county budget.  The primary fund is the general fund which often supports other funds as is the case with the School Fund and the Debt Service Fund.  The remaining funds are generally project oriented such as the Community Development Block Grant fund or a fund may relate to an enterprise operation such as Piney River water & sewer operations.

General Fund Budget Compared to FY09-10:

•    FY09-10    $31,107,215
•    FY10-11    $31,044,438
•    Decrease   ($     62,777)
•    % Change      -0.2%

Compared to the current year budget as amended (through 3/10), the proposed FY11 General Fund budget reflects a decrease of approximately $63,000 which is a .2% decrease. Note:  Although school funding has been significantly increased, this has been offset by variations in spending for capital outlay (convenience center project) and grant funded projects.

Significant Revenue Factors:

•    Minimal growth in Real Estate tax due to new construction.
•    Minimal growth in Personal Property values for 2010.
•    Increase in motor vehicle license fee.
•    Declining trends in interest earnings.
•    Leveling and slowed decline in recordation taxes & building permit fees.
•    Continued reductions in state aid to localities, in particular reduced funding for education and Constitutional Offices.

The economy continues to be the driving force behind anticipated revenues for the coming year. The county anticipates little to no growth in real estate values due to new construction.  Overall personal property values are anticipated to be fairly level—trends reflect substantial depreciation of newer vehicle values while older vehicles reflect equal or slightly higher values. The motor vehicle license fee was increased from $20 to $30 for cars and from $8 to $13 for motorcycles. This fee increase is anticipated to generate approximately $150,000 in additional annual revenue. There are declining trends in interest earnings on investments, receipts from recordation taxes are anticipated to be fairly level in the upcoming year, and building permit fees continue their downward trend due to the slowdown in the housing market. These economic trends are also forcing the state to deal with revenue shortfalls by significantly reducing aid to localities; in particular funding for education and Constitutional Offices.

Local Revenue:

•    FY10 Budget                 $24,182,378
•    FY11 Projections        $24,522,751
•    Overall Increase         $340,372
•    Percent Change           +1.4%

FY11 local revenue makes up 79% of the total General Fund budget.  The primary source of local revenue is general property taxes ($20,017,091) which accounts for 82% of all local revenue. The FY11 budget reflects a 1.4% budgetary increase, $340,000, in local revenue primarily due to the increased motor vehicle license fee and less conservative estimates of property tax receipts.

State Revenue:

•    FY10 Budget              $3,531,577
•    FY11 Projections              $3,197,559
•    Overall Decrease              -$334,018
•    Percent Change         – 9.45%

Although the current year budget (as amended through 3/10) reflects $3.5 million in state revenue, continued revenue reductions have been implemented during the year, such that actual state revenues are anticipated to be approximately $227,000 less than budgeted.  State revenue makes up 10.3% of the total General Fund budget in FY11 as compared to 11.4% in FY10.  The largest sources of state funding within the General Fund include Compensation Board funding for Constitutional Offices and state support of public assistance and social services programs. Next year’s budget reflects an overall net reduction of $334,000 primarily due to fluctuations in grant funding (Tunnel-$250,000 expended in FY10) and additional reductions in state funding for constitutional offices.

Federal Revenue:

•    FY10 Budget           $2,372,333
•    FY11 Projections                $1,716,766
•    Overall Decrease               -$655,567
•    Percent Change             -27.6%

Federal revenue makes up 5.5% of the total General Fund budget.  Generally, federal sources include social services funding and the payment in lieu of taxes from the U.S. Bureau of Land Management.  Also reflected here is a Public Safety Interoperable Communications grant awarded in FY10.  Much of this grant has not been expended and approximately $1.2 million will carry forward to FY11.    The reduction reflected here is due to this fluctuation in grant funding. (Terrorism Prevention Grant $92,720, Trail T21 $350,000, EMS Laptops $65,700, Recovery Act Byrne JAG $10,147, and PSIC $100,000)

All Sources of Revenue:

•    Local                  $24,522,751
•    State                           $  3,197,559
•    Federal                         $  1,716,766
•    Transfers from other funds        $    890,700
•    Year Ending Balance           $    716,662
•    Total                   $31,044,438

Local, state and federal revenues together with intergovernmental transfers from the Courthouse Project Fund and the Capital Fund allocated for the roof & window replacement project at Tye River and Rockfish River Elementary schools and the year ending balance allocated for local match requirements for the PSIC grant ($260,000) and the Broadband grant ($456,662), make up all projected revenue supporting the FY11 proposed expenditures.

Expenditure Highlights include:

•    Debt service for Courthouse renovation project
•    Roof and window replacement at Tye River and Rockfish River Elementary Schools will be completed in FY11 (summer 2010)
•    2012 Property Reassessment to begin in FY11
•    Contingency reserve

The Courthouse renovation project is underway with estimated completion in January 2011. The new facility will house the General District Court, the Juvenile & Domestic Relations Court, the Sheriff’s Department and the Dispatch Center.  The new Faber convenience center included in the current year budget (located on Cove Valley Lane) is almost complete and is anticipated to be operational in July. $740,700 is allocated in the FY11 budget for roof replacement at Tye River Elementary and window replacements at Rockfish River and Tye River. The FY11 budget also includes funding for the 2012 Property Reassessment ($245,000). Finally, the FY11 budget also includes a small contingency reserve of approximately $360,000 ($361,039–specific projects TBD). The reserve is unallocated to provide for future contingencies—particularly important during the current uncertain economic climate.

Grant Projects Include:

•    Blue Ridge Tunnel restoration
Funded with Transportation Enhancement grants from the Virginia Department of Transportation

•    Public Safety Interoperable Communications
Funded with Homeland Security grant

•    Middle Mile Broadband Project
Funded with Recovery Act Broadband Technologies Opportunities Program Grant
Non-Federal local match is funded within the General Fund using FY10 carryover

The Blue Ridge or Claudius Crozet Tunnel restoration project encompasses tunnel restoration and development of access trails (located in Augusta and Nelson counties). Grant funds will be utilized to work towards completion of the Final Design for the restoration.  Additionally, a non-profit foundation has been established to assist with project funding.

The county is serving as lead agency in a regional Public Safety Interoperable Communications project that will provide for implementation of a regional microwave network and installation of mutual aid repeaters.  The network will provide infrastructure to enhance public safety communications for Nelson County.  Our regional partners include Albemarle County, Augusta County and the Cities of Charlottesville, Waynesboro and Staunton as well as the Virginia State Police.  All partners will benefit from the interoperability and regional data sharing that will be provided through this microwave network.  Funds for this project are provided by the US Dept of Homeland Security through the Federal Emergency Management Agency (FEMA)

The county was awarded a $1.8 million grant through the Recovery Act Broadband Technologies Opportunities Program.  This grant requires a non-federal match of $456,662 which is within the FY11 General Fund budget.  A separate construction fund will be established for this project.  This project will provide for the installation of a fiber optic network and towers running north to south linking the communities of Afton, Avon, Lovingston, Colleen, Tyro and Massies Mill.   (The middle mile backbone proposes to serve community facilities along the network route by delivering greater amounts of bandwidth at a much lower cost. The County’s Broadband Authority will establish agreements with last mile service providers to utilize the county-built open access network to serve areas not directly along the backbone route.)

Operations Include:

•    No salary adjustments (small increase in health insurance benefit costs)
•    Overall level funding for departments
•    Level funding to most agencies
•    Operational expenses relative to new judicial facility (Jan-June 2011)

Operational funding within the proposed budget will change very little; salaries are level funded with a minimal increase in health insurance benefit costs (4%).  Included is overall level funding for departments and most agencies. The budget does incorporate estimated expenses relative to the new judicial facility –inclusive of security, custodial services, and utility costs.

Local Contribution to Schools:

•    School Nursing Program (Level)
•    School Operations (+$678,946)
•    Purchase of new buses eliminated
•    Roof & Window Replacement (TRES & RRES)
•    Total to Operations $ 13,047,118
•    Total to Debt            $   2,841,558
$ 15,888,676

Within the General Fund, the school nursing program is level funded at $215,000.  Local operational funding is proposed at approximately $12.1 million ($12,091,418) which is a 5.9% increase over the current year.  The budget proposes the elimination of funding for new school buses, a reduction of $320,000.  Also included is $740,700 for roof replacement at Tye River Elementary and window replacements at both Tye River and Rockfish River Elementary. The total local contribution to the School Fund is just over $13 million.  In addition to this support, the county funds almost $3 million for school related debt ($2,841,558).

School Fund Budget Compared to FY09-10:

FY09-10    $23,604,790
FY10-11    $22,996,237
Decrease        -$608,553
% Change             -2.6%

*Operations Budget only (excludes debt)

The School Fund budget compared to the current year (original budget) reflects a decrease of $611,553 or 2.6%.  The proposed budget is approximately $417,378 more than the School Board originally requested budget, which did not include funding for the roof and window project ($323,322 reduction from request outside of roof/window project) and includes an almost $1.1 million ($1,099,646) increase in local funding. The overall decrease is reflective of a more conservative budget impacted significantly by reductions in state funding for education in FY11.

School Fund Revenue:

The School Fund budget includes almost $7.4 million in state revenues which is a 13.2% decrease ($1,116,585) over the current year. This reduction comes after a similar reduction in FY09, offset by stimulus funding of $493,458. Federal revenue is projected to decrease by 28.2% ($610,165) which is reflective of stimulus money provided in the current year that does recur in FY11. Other revenue includes such items as field trip fees and food services revenue and shows a decrease of $8,841 (0.8%). The local contribution from the General Fund is just over $13 million which is approximately 65% of general property tax revenue.   This contribution includes a $678,946 increase for operations, no new funding for school buses, and $740,700 for major repairs.

School Expenditures:

Total All Categories: $22,996,237. More detailed expenditure breakdowns are pending approval by the School Board.

Summary by Fund:

•    General Fund     $31,044,438
•    School Fund     $22,996,237
•    Textbook Fund     $676,747
•    Debt Service Fund     $3,171,676
•    Capital Fund     $274,740
•    Courthouse Project     $6,051,077
•    Broadband Project     $2,283,308
•    CDBG Grant Fund     $22,000
•    Piney River Water/Sewer     $228,379

To conclude, I have noted here all the funds that make up the county budget. We have discussed tonight the General Fund and the School Fund which are by far the largest components of the budget.
Should you have additional questions or want more detailed information, we will be happy to provide that to you.

Following Ms. McCann’s presentation, Ms. Brennan thanked staff for their hard work in putting the County in a much more fortunate position than its surrounding counties. She noted that many localities were raising taxes and fees and that this was a budget that they could live with.

Ms. Brennan then opened the public hearing and the following persons were recognized:

1. Janice Jackson, Shipman

Ms. Jackson stated that she was the County’s JAUNT representative and she thanked the Board for its support. She noted that maintaining funding at current levels preserved the Tuesday Seniors route service. She noted that they would be inviting the Board on 6/22 for a thank you reception.

2. Tom Guthrie, Arrington

Mr. Guthrie inquired as to the cost of school buses funded last year and Ms. McCann reported $320,000 for four (4) years.

3. Roger Collins, Superintendent of Schools

Dr. Collins thanked the Board for its assistance this year and noted that Nelson County was fortunate relative to its peers.

There being no other persons wishing to be recognized, the public hearing was closed and Ms. Brennan advised the public that the Board would consider approval of the budget on June 8, 2010.

Mr. Carter requested that the Board consider authorizing staff to advise Dr. Collins to proceed with contracts and establish the school division funding pending final approval. The Board agreed by consensus to authorize staff to proceed with funding notification to the Schools.

III.    New/Unfinished Business

Introduced: New Faber Collection Site

Mr. Hale reported that the new Faber collection site was on the verge of having asphalt and Mr. Carter added that the base was  put down the previous day and maybe the top coat was done that day; with the site being very close to start up. Ms. Brennan noted that she had been by the site on Tuesday and they were putting asphalt down then.  Mr. Carter noted he would report on June 8th and that June 21st may be the startup date.

IV.    Public Comments

There were no persons wishing to be recognized for public comments.

V.    Adjournment

At 7:25 pm, Mr. Johnson moved to adjourn and Mr. Harvey seconded the motion. There being no further discussion, Supervisors voted unanimously, by voice vote, to approve the motion and the meeting adjourned.