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HomeMy WebLinkAbout1991-03-27 adjMarch 27, 1991 (Afternoon (Page 1) Adjourned Meeting) 22 An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held on March 27, 1991, at 3:00 P.M., Meeting Room 7, County Office Building, McIntire Road, Charlottesville, Virginia. This meeting was adjourned from march 25, 1991. PRESENT: Messrs. Edward H. Bain, Jr., David P. Bowerman, F. R. Bowie, Mrs. Charlotte Y. Humphris, Mr. Walter F. Perkins and Mr. Peter T. Way. ABSENT: None. OFFICERS PRESENT: County Executive, Robert W. Tucker, Jr.; Deputy County Executive, Ray B. Jones; Assistant County Executive, Robert B. Brandenburger; and Executive Assistant, Roxanne W. White. Agenda Item No. 1. The meeting was called to order at 3:03 P.M. by the Chairman, Mr. Bowie. Agenda Item No. 2. Work Session: 1991-92 County Budget: Item 2a. Item 2b. Item 2c. Items for Reconsideration. Set Tax Rates for 1991. Order Public Hearing Advertised. Mr. Bowie explained that this was a continued meeting from March 25, 1991, to try to resolve the budget and the tax rates. He reminded the Board that there were several motions made on Monday that did not pass, and the only majority vote was to deny the motion. He went on to say that there is a recommended budget by the County Executive which, before adjustments, had a reserve in the amount of $677,489 which was discussed at length. He asked if any Board member had a motion that he or she wished to make. Mr. Way remarked that at the March 25, 1991 meeting, he made a very unnecessary remark toward Mr. Bowerman in which he indicated that Mr. Bowerman's statement was "insulting tokenism." He stated that Mr. Bowerman's motion was made with great preparation and thought, and he did not mean to be trite in any way. Mr. Way apologized for the remark. Mr. Bowie asked if anyone wanted to make a motion. Hearing none, he asked the County Executive if he would explain his newest proposal to the Board members. Mr. Tucker gave to the Board a copy of OPTION 1 as considered at the March 25 meeting, this new copy incorporating the changes made at that meet- ing: BEGINNING RESERVE FUND (OPTION 1) COUNTY EXECUTIVE'SADJUSTMENTS -plus reduction in 1991-92 Debt Service $+300,000 -plus Juvenile Detention Home budget reduction +16,681 -plus fuel adjustment @ $0.85/gallon +46,360 -less shift differential adjustment in 911 budget - 4,827 -less State/Local Hospitalization for indigent medical care -12,152 TOTAL OF COUNTY EXECUTIVEtSADJUSTMENTS $ 346,062 TOTAL RESERVE FUND BOARD OF SUPERVISORS' (BOS) CHANGES - GENERAL GOVERNMENT Staff development/Personnel budget Vehicle waxing contract/Police Department Scottsville pumping station Virginia Certified Planning Commissioner's Program Architectural Review Board staff/operations Gypsy Moth Spraying Program Juvenile Court - delete Fax Machine TOTAL BOS CHANGES - GENERAL GOVERNMENT TOTAL RESERVE FUND $ -2,730 -4~500 +1,000 -800 -13,970 +~8,000 -1,000 $ +36,000 BOARD OF SUPERVISORS' CHANGES - SCHOOL DIVISION March 25 Option Revenue Increase - Remedial Summer School TOTAL BOS CHANGES - SCHOOL DIVISION TOTAL RESERVE FUND $+1,571,831 -7,114 $ 1,564,717 LESS: DEBT SERVICE CONTINGENCY FUND NET RESERVE FUND $ 300,000 $ 2,265,258 $ 2,611,320 $ 2,575,320 1,010,603 710,603 March 27, 1991 (Afternoon - Adjourned Meeting) (Page 2) TAX RATE OPTIONS FOR NET RESERVE FUND; Equivalent Real Estate Tax Rate of Reserve Rounding of Tax Rate Reduction @ $0.02 $0.019 REMAINING RESERVE Equivalent Personal Property Tax Rate of Reserve $0.29 $ $ 755,186 703,250 $ (~,583) 22 Pd~AINING RESERVE $ (7,353) Mr. Tucker next informed the Board that Option Two is a new proposal that he is bringing forward for the Board's consideration. This proposal would shift the $48,000 that was shown originally for the Gypsy Moth Spraying Program contingency and $150,000 from the Debt Service contingency to the School budget for a net local fund addition to the School system of $1,762,717. He noted that this would still leave a net reserve of $710,603. He said that this reserve would allow for a two-cent rate reduction on real property. He said that any personal property rate reduction would have to come from the Fund Balance. BEGINNING RESERVE FUND (OPTION 2) COUNTY EXECUTIVE'S AD3USTMENTS -plus reduction in 1991-92 Debt Service $+300,000 -plus Juvenile Detention Home budget reduction +16,681 -plus fuel adjustment @ $0.85/gallon +~6,360 -less shift differential adjustment in 911 budget - ~,827 -less State/Local Hospitalization for indigent medical care -12,152 TOTAL OF COUNTY EXECUTIVE'S ADJUSTMENTS $ 3~6,062 TOTAL RESERVE FUND BOARD OF SUPERVISORS' (BOS) CHANGES - GENERAL GOVERNMENT Staff development/Personnel budget $ -2,730 Vehicle waxing contract/Police Department -4,500 Scottsville pumping station +1,000 Northside Library - additional staff person +10,000 Virginia Certified Planning Commissioner's Program -800 Architectural Review Board staff/operations -13,970 Gypsy Moth Spraying Program -O- Juvenile Court - delete Fax Machine -1,000 TOTAL BOS CHANGES - GENERAL GOVERNMENT $ -12,000 TOTAL RESERVE FUND BOARD OF SUPERVISORS' CHANGES - SCHOOL DIVISION March 25 Option Restore reductions in the basic budget Restore 20% reduction in machinery & equipment to Murray Revenue Increase - Remedial Summer School TOTAL BOS CHANGES - SCHOOL DIVISION $+1,571,831 +173,500 +2~,500 -7,11~ $ 1,762,717 $ 2,265,258 $ 2,611,320 $ 2,623,320 TOTAL RESERVE FUND $ 860,603 LESS: DEBT SERVICE CONTINGENCY FUND $ 150,000 NET RESERVE FUND 755,186_ TAX RATEOPTIONSFORNETRESERVEFUND; Equivalent Real Estate Tax Rate of Reserve $0.019 Rounding of Tax Rate Reduction @ $0.02 $ $ 710,603 REMAINING RESERVE Equivalent Personal Property Tax Rate of Reserve $0.29 $ Y03,250 P,f~LalNING RESERVE $ (7,353) Mr. Tucker said he had indicated on Monday that in order to get a five- tent reduction on personal property, the Fund Balance would need to be reduced by $121,250 which he does not feel would impact the Fund Balance signifi- cantly. Mr. Tucker said he knows that several Board members have strong feelings about the Gypsy MOth Spraying Program. It is his opinion that funding for this program can be delayed until later in FY 1991-92 after the reSUlts of the Spring spraying are known. Mr. Bowie agreed that the program would be funded when those funds are needed, and in the meantime, the option of transferring a Portion of the March 27, 1991 (Afternoon - Adjourned Meeting) (Page 3) 22 expenses to affected landowners could be examined. Mr. Tucker agreed. He said that there are several options available, but this gives the staff more time to examine them and to see what kind of effect the Spring spraying will have. Mr. Way asked if a five-cent reduction of the personal property rate could be taken from the Fund Balance. He wondered if it would be a signifi- cant danger to double the amount so that there would be a ten-cent reduction of the personal property tax rate. Mr. Tucker replied that there was no significant danger, and it could be done. He said that it would require the staff to more closely monitor and manage the cash flow. He added that certain capital purchases scheduled to be made early in the Fall might have to be delayed or deferred to later in the year, although school buses and items to cover emergency needs would have to be purchased anyway. Mr. Way remarked that this proposal does not seem to be that great of a risk since it could be covered by management. Mr. Bowerman asked if there would be $150,000 in the Debt Reserve contin- gency which could be used next year. Mr. Tucker answered that Option 2 leaves $150,000 in the Debt Service contingency to be used in 1992-93. Mr. Bowie stated that Mr. Tucker's Option Two provides $2,000,000 with a two-cent reduction in the real property rate and a five-cent reduction in the personal property rate. He noted that Mr. Tucker had responded favorably to Mr. Way's suggestion about doubling the reduction for personal property taxes. He asked what the Board members would like to do. At this time, Mr. Way made a motion to approve Option Two, plus taking an additional $121,250 from the Fund Balance which would make a ten-cent reduc- tion in personal property taxes possible. Mr. Tucker clarified Mr. Way's motion by saying that there are three different categories of property taxed as real property: real (estate) property, public service corporations and mobile homes. He pointed out that the rate of $0.72/$100 would apply to these three categories. With personal property taxes, there are two categories: personal property and machinery and tools. He added that the $4.30/$100 rate would apply to these categories. Mr. Way agreed that he meant for his motion to reflect these categories. Mr. Perkins seconded the motion. Mr. Bain asked Mr. Tucker to describe the condition of the Fund Balance again. Mr. Tucker responded that the Fund Balance for the 1990 fiscal year was at approximately $8.0 million. He believes it increased during the last fiscal year to approximately $8.4 million. However, during this current year, the Fund Balance has diminish somewhat. He mentioned that if the economy gets better, the Fund Balance will begin to build again. Mr. Bowie said an estimate of the Fund Balance can be available the day after the books are closed. It does take six weeks to close the books, by law. He said that the estimate the Audit Committee has received for the last six years has not varied enough from the final audit figures to make any difference. He thinks that whatever figure is given to the Board in early July will be so close to the actual figure that management policies can be set before the books are closed. Mr. Tucker said he is optimistic that the economy will get better in the third and fourth quarters of this calendar year. He is hopeful that the news that Governor Wilder has proposed addition- al funds is a reflection on the State's predictions, as well. He did note that the State's predictions have not been that accurate in the past. Mr. Bain commented that the State is simply moving money from one place to anoth- er. Mr. Tucker agreed that the State money is proposed to be moved from Capital projects to Basic Education. Mr. Bowie stated that he will support the motion. He said the motion will provide $2.0 million to fund the growth portion of the School budget. He went on to say that the reductions were made in the basic School budget, and this iswhere he thinks they should have been made. He mentioned to the School Board members who were present that he has never seen a School Board work so hard in trying to work out an acceptable, balanced budget. He com- mended the School Board members, and said that this is part of the reason that he is supporting this motion. He said that even though there are parts of the March 27, 1991 (Afternoon - Adjourned Meeting) (Page 4) 22 budget that he does not like, at least he knows that someone actually worked on it. Mr. Bowie said there will also be a reduction of real property taxes. An - increase in that rate was included in the budget last year solely because of the failure of the meals tax and the increase in taxes was caused solely because of School Debt. He said that these taxes could be returned to the people along with a nice reduction in the personal property tax which will benefit all the citizens of Albemarle, even those who do not own homes and pay rent. He added that most citizens do own cars. He went on to say that this budget proposal is helping the most people as much as they can be helped. He said that being a realist, he does not believe that anything more than this proposal will pass this Board. In an effort to get on with the business of County government, in order to solve the Schools' growth problem, and in order to provide the tax relief which he thinks is necessary, he will support the motion. Mr. Bain clarified Mr. Bowie's remarks in terms of the $2.0 million funding for the School growth. From all of the discussions in these meetings relating to the schools and general government, he believes that a substantial portion of the $2.0 million will go to classified personnel. He said this should bring those people up to the appropriate salary level by January 1, 1992. He said, though, that clearly growth funds are included in the $2.0 million. He does think that this Board is getting close to finding the right budget combination, but he does not think that it has happened yet. His comments from Wednesday still stand, but he will support the motion. Mrs. Hnmphris stated that she will support the motion and she feels that it does get a little closer to funding the Schools' needs. She pointed out that Albemarle County is facing the pain that comes along with overall growth. She said it is clear that budgetary problems will continue as long as the State limits the sources of revenues and in particular limits them to the point where the County's major source of revenue is from property taxes. She thinks the idea needs to be promoted that it is necessary that the public give this Board its full support in going to the Legislature to indicate that funding cannot be done anymore from just property owners. She said the Legislature needs to know that this Board has done the best it can do this year, but the Board does not know what will happen next year. She added that the County must have the ability to levy taxes based on people's ability to pay and not on the value of their property. Mr. Bowerman indicated that he also will support the motion because he believes it funds the basic needs of the school system and the other basic needs of the County. He thinks this budget proposal recognizes that the taxpayers have to pay the bill, and it still allows a two-cent reduction in the real property tax rate. Based upon what he has heard from his constitu- ents, as well as other County residents, the issues that this Board has discussed over the past weeks are evenly divided in terms of wanting to fund the basic needs, at the same time not wanting to spend any more money than is necessary, and wanting to find a way to get the job done. The members of this Board have wide differences of opinion on how to accomplish the solution and, in some cases, determine some of the basic needs. He believes that the vote will be positive, and he thinks that it is a credit to the members of this Board that they were able to sort out these conflicting needs and burdens as well as benefits and, hopefully, to come up with the best possible plan to approach FY 1991-92. He feels that the proposal will be approved only because the Board members have been able to con~nunicate with each other. He thinks that this is a good, workable budget plan. Mr. Way stated that this proposal does not change any of his thoughts, but he agrees that the motion should be approved. Mr. Perkins remarked that a couple of days can make a big difference. He said he will support the motion, but he thinks there are ways that this County can be more efficient, and he thinks that this is a golden opportunity, particularly in the schools with a new Superintendent and finance person, to find out if the County is being efficient. He hopes that the School Board and Board of Supervisors will look at efficiency in the Schools and General Government. March 27, 1991 (Afternoon - Adjourned Meeting) (Page 5) 230 Mrs. Humphris said it has occurred to her that a lot was made of the fact that there were some tie votes on Monday. She doesn't think that a tie vote is bad, because this Board was at the meeting to discuss, sort and find out what each other's thoughts were, and to get the facts, etc. She stated that in the motions and votes, this is exactly what this Board was doing. She thinks that this is a good process, and she also thinks that the outcome has been good. She thinks that it is positive that this Board can discuss issues, that all of the members do not agree and that an agreement can finally be reached. Mr. Bowie agreed and pointed out that this agreement would not have been reached if there had been seven members on the Board. He said that this Board might have reached an agreement on the first vote, and the tax rate for real property might have been set at $0.74 cents, or $0.76 cents or $0.68 cents and none of these three rates would have been right. He went on to say that with three members on each side, discussions had to be held, and he believes that the best solution was chosen as it relates to the money and needs of this County. He thinks that if four supervisors don't agree, the issue needs another vote. He has not changed his public position as to whether or not six members is the right number of members for the Board of Supervisors. At this time roll was called, and the motion carried by the following recorded vote: AYES: Messrs. Bain, Bowerman, Bowie, Mrs. Humphris, Mr. Perkins and Mr. Way. NAYS: None. Agenda Item No. 3. Other Matters Not Listed on the Agenda. Mr. Bowie announced that this Board needs to decide who will place the wreath at Jefferson's Grave at Monticello onApri113. He said that he will not be in town on that day. Mr. Way commented that he has placed the wreath at Monticello many times, and will be happy to do it again, if no one else can do it. Agenda Item No. 4. Adjourn to April 3, 1991, at 10:30 A.M. At 3:25 p.m., Mr. Bowie asked for a van to be ready at the County Office Building on the morning of April 3 so the Board members could ride together to Scottsville for the dedication cermonies by the Jordan Development Corporation of the Old Scottsville School project. Mr. Way made a motion to adjourn until 10:30 a.m. at the County Office Building on APril 3. Mrs. Humphris seconded the motion. Roll was called, and the motion carried by the following recorded vote: AYES: Messrs. Bain, Bowerman, Bowie, Mrs. Humphris, Mr. Bowie and Mr. Way. NAYS: None. Chairman