Board of Supervisors

Virginia:

AT A CONTINUED MEETING of the Nelson County Board of Supervisors at 4:00 p.m. in the Board of Supervisors Room located in the Nelson County Courthouse.

Present:
Allen M. Hale, East District Supervisor – East District
Constance Brennan, Central District Supervisor – Chair
Thomas H. Bruguiere, Jr. West District Supervisor
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

Absent:    None

I.    Call to Order

Ms. Brennan called the meeting to order at 4:09 pm, with all Supervisors present to establish a quorum.

Ms. McCann then introduced Samantha Carter – an intern who has been working with the County through a Workforce Transition Act Grant managed through the City of Charlottesville. She reported that they had arranged a six week intern program that transitioned participants from school into the workplace and prepared them to enter the working world. She noted that Ms. Carter was working in the Finance Department, compiling information from old payroll records into a spreadsheet to free up storage space in the files.

Ms. Brennan welcomed her and introduced each member of the Board.

II.    FY10-11 Budget Work Session

Mr. Carter noted that Ms. McCann had provided an analysis of the state budget numbers and noted that there were minimal increases. He indicated that staff would present a level funded budget, including the agencies, except for PHA, which staff would discuss. He suggested that staff would discuss the overall budget picture and then the Board could go back through the General Fund, Schools, and Agencies etc.

Ms. McCann reviewed the summary spreadsheet of the General Fund as follows, noting that the yellow highlighted areas reflect adjustments for consideration and the revised School Fund shortfall represents additional reductions in School Fund    expenditures that would be required to balance the School Fund budget.  Ms. McCann also noted that staff did not have the official Dept. of Education numbers, which might be out on Friday, and would not have the official State Compensation Board numbers until the 26th. She noted that the following summary was based on the best information that staff did have.

General Fund:

Ms. McCann noted that the General Fund side reflected a reduction of $79,000 in revenues from the State Comp Bd., an estimated reduction of $47,000 in tax sale proceeds as revised by the Clerk, an  estimated additional $15,000 reduction in Aid to Localities, and a proposed increase of $202,538 resulting from changing the vehicle license fee from $20 to $33.

She also noted that the school bus funding had been reduced from four (4) to two (2) and the $160,000 in funds was moved to School Operations.

School Fund:

Ms. McCann noted that the School Fund reflected a net increase of $518,946 over last year. She noted that the state revenues had been estimated based on the enrollment used in the School Budget, not based on the enrollment used in the state spreadsheets.

She reported that the funding shortfall submitted by the schools was now $907,805 and that the VRS payback was included in the original number of $1.1 million. She noted that Shannon Irvin had told her that the adjustments to VRS & GL may go down by $30,000 and other programs may stipulate a match.

Mr. Carter further explained how the Dept. of Education funding templates work and how a user can input an ADM and it would calculate the state and local shares. He noted that if the presented plan was utilized, the school funding shortfall would be $234,123 not $907,805. He then noted that the Board could address the shortfall with contingency funds or carryover funds if they did not want to increase the vehicle license fee. He noted that the carryover estimate is approximately $385,000.

Mr. Carter then noted future considerations that will need to be addressed in FY12 as follows:

1.    Additional reduction in state revenue ($106,320) for education in FY12 and increases in teacher VRS rates (+1.23% on teacher rate)
2.    Courthouse debt service and one year interest due in FY12 (interest-$309,375; debt service $645,000 for 20 year payback/$391,182 for 40 year payback)
3.    Full year of new judicial facility operational costs ($99,500 additional cost in FY12)
4.    School bus replacement (additional $160,000 assuming 2 buses purchased in FY11)
5.    Tye River Elementary roof and window project.

He noted that potentially, the courthouse interest payment could come out of courthouse set aside funds and Ms. McCann noted that Shannon Irvin had indicated being in favor of delaying any school bus purchases this year and Mr. Carter added that there would be other incremental costs in FY12 and that he was still concerned that growth in revenue would not support operational growth.

Ms. McCann reported that there was very little or no growth in Personal Property or Real Estate tax revenues and noted that there had been more applications for land use in between cycles than usual. She noted that this amount was not in yet and that Personal Property tax numbers were very flat.

Mr. Carter then encouraged the Board to look at the details, with or without increasing the license fee, and noted his confidence that they could go forward for this year, while next year was uncertain.

Ms. McCann also noted that declining interim revenues could affect things mid-year and the budget would have to be adjusted for this.

The Board and Staff discussed the Courthouse debt repayment plan, with staff noting that the principal amount was financed for 38 years, but that the Board and staff had planned to prepay the debt over a twenty (20) year period. Members indicated a desire to stick with the prepayment schedule with Ms. McCann further explaining that it is a prepayment plan where the County was paying down additional principal and this could be decided on an annual basis.

Ms. Brennan indicated an interest in the County’s debt service and payment schedules, with Staff noting that a good source of this information was the County’s audit; which contained charts of all of the County’s debt and debt service.

Mr. Carter stated that Staff would need to know quickly if the Board was interested in increasing the vehicle license fee and get authorization to move forward if so. He noted that they could hold monies in reserve and think about increasing the license fee next year.

Ms. McCann noted that they could move forward at the second meeting in March and it would just be an Ordinance change.

Mr. Hale suggested that the first step should be to look at the changes in revenue and the proposed license fee should be the first thing to decide on and the Board should make the decision today. It was noted that they would have to use carryover or use contingency to cover the amount of the proposed vehicle license fee.

Mr. Johnson suggested that the Board keep a contingency and noted that they could use carry over funds for the TRES roof/window project.

Staff noted that the school division indicated that they are going to pay $145,000 to cover the cost of employees’ health insurance increase. Ms. McCann reported that the County pays the entire individual premium so the County would be picking up this increase, but the other plans pick up a 4.2% increase.

Mr. Carter suggested that the Board should meet with NCSB again because there was a lot more information that could be shared. Ms. Brennan agreed; noting that the NCSB has reduction plans that might not mean cutting positions.

Mr. Harvey suggested that the Board needed to scrutinize the budget on behalf of the taxpayers on both sides and was not in favor of raising any taxes this year, given the economy.

Mr. Hale suggested that increasing the vehicle license fee may be justified; however they should not look at the Real Estate tax as a means for additional revenue this year and Mr. Johnson indicated his agreement.

Ms. Brennan inquired about increasing other user fees and staff noted that Courthouse fees may be increasing but it was uncertain if the bill had passed in the General Assembly. Mr. Carter noted that the Board could look at Planning/Zoning fees that were probably 20 years old, but would not make a substantial difference in revenues.

Mr. Harvey reiterated the need to tighten belts, and stated that they owed it to the taxpayers to do it.

Mr. Johnson stated that they were almost $500,000 shorter in school spending this year; with Mr. Carter noting that the County was more than meeting the required local effort for school funding and was approaching paying two (2) times the funding compared to what the State was providing.

Mr. Johnson argued that there was not an increase in funding to schools because they were being asked to cut $234,000 and have already cut a couple hundred thousand; noting that they should leave room to cut next year.

After brief discussion about revenues, the Board agreed by consensus not to increase the Real Estate Tax rate.

Mr. Hale suggested that the Board consider not going all the way up on the vehicle license fee and then tighten belts some. He noted that because of the state funding shortfall, they could increase this fee to $30 rather than $33 and then make cuts. It was noted that an increase to $30 rather than the full $33 would be an increase of a little over $150,000.

Members and staff discussed the possible removal of the three police cars in budget for $77,000, noting that the Sheriff volunteered to not buy vehicles next year. They also discussed the number of retiring school employees, with Ms. McCann noting that originally, the $300,000 personnel reduction was due to attrition and they had moved certain people around to other positions. Mr. Johnson stated that it was more likely that entry level positions would be cut, rather than the higher paying positions.

Ms. Brennan suggested that the Board decide on increasing the Vehicle License Fee. Mr. Hale suggested that they go with increasing it to $30 and $15; which would be a 50% increase for cars and almost 100% for motorcycles respectively. Mr. Bruguiere indicated his agreement with the proposal.

Mr. Hale then moved to authorize staff to advertise an increase in the motor vehicle license fee for private passenger vehicles fees of $10 up to $30 and to $15 for motorcycles and Mr. Johnson seconded the motion.

Mr. Harvey suggested that staff check on legislation pertaining to vehicles for hire that may have changed and Ms. McCann noted that the change would be effective for the June billing. Mr. Carter noted that a public hearing may not be necessary and he would have to check to see what if any advertisement
requirements there were. The Board agreed by consensus that they would like to hold a public hearing even if it is not required.

Following discussion, Supervisors voted unanimously (5-0) by roll call vote to approve the motion.

Mr. Johnson then moved that the Board set the real property tax rate at .55 per $100 and $2.95 per $100 for personal property and Mr. Hale seconded the motion.

It was clarified that this was no change from the current real and personal property tax rates and  Supervisors voted unanimously (5-0) by roll call vote to approve the motion.

Ms. McCann then inquired as to where the reduction to the Vehicle License Fee revenue should come from and the Board’s consensus was to take it out of the Contingency for now; leaving the School Fund shortfall as is.

Mr. Carter reiterated that $518,000 has been allocated to the schools over last year in local funds and Mr. Harvey noted that the Board has been consistent with this.

Ms. McCann clarified that in reducing the bus purchase from four (4) to two (2) she was to increase operations and reduce the bus funding to net this amount. Members noted their agreement and the consensus was that the schools have enough buses that meet the new 12-15 year state guidelines.

In closing, Ms. McCann noted that on the spreadsheet provided, she showed each County Department’s expenditures less personnel costs and all departments have been held to level funding. She noted that they could see notes in the spreadsheet cells that describe the numbers. She noted that she would update the spreadsheet with the changes made by the Board today and at the April meeting she would present a resolution setting the personal property tax relief percentage.

Mr. Johnson suggested that staff ensure that tax relief being applied for is properly reviewed and the Board briefly discussed Land Use tax relief applications. Mr. Carter clarified that the County had every category of land use relief available.

The Board and staff briefly discussed security personnel for the new courts building and Mr. Bruguiere suggested that all dispatchers should be supervised by one person. Mr. Carter noted that if all of the dispatchers went under the Sheriff’s supervision, the County would not get any more money from the Compensation Board and the Board would have to assume full costs for dispatchers under County supervision. Mr. Carter noted that his understanding is that there are not that many problems and they all report to Ray Uttaro.  He noted that staff had a discussion with the Sheriff on security personnel for the new building and staff was polling other localities on this.  He noted that the Sheriff wanted them to be certified and report to him; which would have to be decided by the Board. He also noted that Wiley & Wilson and the Sheriff will have a meeting on security with the Board in the near future.

III.     Other Business (As May Be Presented)

Introduced: Blue Moon Antiques Building

Mr. Harvey asked the rest of the Board for their opinion on the possible purchase and use by the County of the Blue Moon Antiques building for County office space; noting how nice Augusta County’s offices are that were once commercial space.

Mr. Hale indicated that he would like for it to remain a commercial building and Mr. Johnson stated that they would need to evaluate the renovation costs to negotiate the sale price.

Mr. Hale stated that he thought the Board needed to resolve what to do with the courthouse complex, including the Health Department and Old Sheriff’s office and the County was not in a position to make a significant real estate investment.

Mr. Carter noted that he thought the asking price was $1.4 million and he would check the assessment.

The Board and staff discussed at least looking at it, with Mr. Harvey and Mr. Johnson indicating it was worth looking at. Mr. Harvey stated that he thought that they could do a realtor deal to exclude the County from listing fees etc.

Mr. Carter noted that he thought there was eight (8) acres of land with it and one (1) acre in front of the building had been rezoned previously b/c Vito’s had intended on building there.

Ms. Brennan indicated that she would talk to the property owner about the realtors deal mentioned by Mr. Harvey.

Members then agreed that they would look at the General Fund and Agencies at the next meeting on March 25, 2010 at the regular meeting time. Mr. Johnson reminded the Board and Staff that he would be out of the country until April 3, 2010.

IV.    Adjournment

At 5:35 pm, Mr. Hale moved to adjourn the meeting and Mr. Johnson seconded the motion. There being no further discussion, Supervisors voted unanimously by voice vote to approve the motion and the meeting adjourned.