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HomeMy WebLinkAbout1989-04-06 adjApril 6, 1989 (Afternoon Adjourned Meeting) (Page 1) 465 An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held on April 6, 1989, at 4:00 P.M., Meeting Room 7, County Office Building, McIntire Road, Charlottesville, Virginia. This meeting was adjourned from April 5, 1989. PRESENT: Messrs. Edward H. Bain, Jr. and F. R. Bowie, Mrs. Patricia H. Cooke (arrived at 4:15 P.M.), Messrs. C. Timothy Lindstrom, Walter F. Perkins and Peter T. Way. ABSENT: None. OFFICERS PRESENT: County Executive, Mr. Guy B. Agnor, Jr.; Deputy County Executives, Mr. Ray B. Jones and Mr. Robert W. Tucker, Jr. Agenda Item No. 1. The meeting was called to order at 4:13 P.M. by the Chairman, Mr. Way. Agenda Item No. 2. Readoption of Resolution to take Mill Creek Drive, Gray Stone Court and Boulder Spring Court in Phase 1, Section Two of Mill Creek P.U.D. into the State Secondary System. Motion was offered by Mr. Lindstrom and seconded by Mr. Bowie to readopt the resolution as follows, adding a reference to a sight easement. Roll was called and the motion carried by the following recorded vote: AYES: Messrs. Bain Bowie, Lindstrom, Perkins and Way. NAYS: None. ABSENT: Mrs. Cooke. BE IT RESOLVED by the Board of Supervisors of Albemarle County, Virginia, that the Virginia Department of Highways and Transportation by and is hereby requested to accept into the Secondary System of Highways, subject to final inspection and approval by the Resident Highway Department, the following roads in Phase 1, Section Two in Mill Creek P.U.D.: MILL CREEK DRIVE Beginning at Station 13+50, end of'previous dedication, thence in a westerly direction 350 feet to Station 17+00, the end of this dedication. GRAY STONE COURT Beginning at Station 0+11, a point common to the centerline of Gray Stone Court and the edge of pavement of Mill Creek Drive (centerline Station 16+64.91), thence in a southerly direction 1,930 feet to Station 19+41, the e~d of the cul-de-sac pavement. BOULDER SPRING COURT Beginning at Station 0+10, a point 'common to the centerline of Boulder Spring Court and the edge of pavement of Gray Stone Court (centerline Station 3+50.00), thence in westerly direction 446 feet to Station 4+56, the end of the cul-de-sac pavement. BE IT FURTHER RESOLVED that the Virginia Department of Highways and Transportation be and is hereby guaranteed a 50-foot unobstructed right-of-way and sight and drainage easements along these requested additions as recorded by plats in the OC~lce of the Clerk of the Circuit Court of Albemarle County in Dee~ Book 974, pages 358-365; Deed Book 992, page 743; Deed Book 1013,~!page 51; Deed Book 1024, page 317; Deed Book 1009, page 212; Deed~iBook 1005, page 291; and Deed Book 1041, page 390. Agenda Item No. 3. Finalize 1989-90 Cou'~ty Budget. Mr. Lindstrom said he would like to respond to an editorial in the Daily Progress, which he thinks contained much misinformation. He said the implica- tion of the editorial is that growth pays for~.itself; if the Board and County staff allowed more of the right kind of growth in the County, there would be 466 April 6, 1989 (Afternoon Adjourned Meeting) (Page 2) more revenue. Mr. Lindstrom said he enlisted the staff's help in framing a response to the editorial. He then presented data from one development in the County that has been studied extensively by the staffs of the City, County and University. The project consists of three million square feet in buildings on five hundred acres. Assessed at $150 per square foot and $75,000 per acre, the development is assessed at $450 million. Personal property taxes, estimated at ten percent of the assessed value of the development, add about $45 to the County's revenues. The project created 11,508 jobs: 6,550 people are employed in the facility itself and 4,958 would be employed in jobs created to serve the additional population brought in by the facility. The facility would bring an additional 5,573 households to the County. Mr. Lindstrom said he plans to total the revenues brought in by the facility and all related sources and compare this figure with the cost of educating the children of these households. The total revenues gathered in one year from this facility, including the real estate and personal property taxes of its employees and other residents who work in jobs created to serve the needs of the additional population, equal $15,266,312~ Mr. Lindstrom said he also included revenues from the sales and utilities taxes, figured on a per capita basis. The only source of revenue not included in'this calculation is the sale of decals for vehicles. According to the 1980 census, Mr. Lindstrom continued, there are .912 children per family in the County. He said this has probably increased over the past nine years to about one child per family. About~i80 percent of the 5,573 households brought into the County by the facility are families, which means that 4,458 children of school age moved into the County as a result of this one project. Using the figures in the School Board'iS operating budget, it takes $3000 in local money to educate one child for on~ year. It would take $13,374,000 in operating costs just to educate the children arriving in the County as a result of the facility. Moreover, he sai~, the County would probabl3 have to build~ new school~to hold these childreh, which would cost about $44,580,000 ' ' ~ ~r~r ; ' ~ %~, based on the cost of the Crozet School, which.iwill hold 450 student~. Amortized over 20 years at seven and one-half ~ercent, the annual debt service would be $4,309,639, making the education bill for the 4,458 children for one year $17,683,639. This figure ~f~l-t~-~z-a~!~ishe~t~f/~ihe reve- nues generated by the facility, which totaled $15,266,3121~ In other words, ~r. Li,ndstrom said, thi~a~ r~ject, ~_his suppose~ cure for the County s economic trouble, ~cs~o~e'~ounty~t least $2,~17,326 a year. Mr. Lindstrom said he did not even calculate th~' cost of othe~i services supplied by the County to these additional residents, such as poli6~ protection, rescue squads and firefighters. He said the notion that the Cou~ity can cure its problems by encouraging the right kind of growth is just ~Dt true. Mr. Way said the following possible options for raising revenues may help the Board reach a consensus on the budget: ~ Option 1: Option 2: Option 3: Option 4: $20 and $25 Decal = + $300,000 Three cents Real Estate Increase = + $880~00 for FY 1989-90 Debt Service Meals Tax Referendum = + $470,000 FY 1989qD0 $1.4 Million FY 1990-91 Use General Fund Carry Over + $500,000 Balance for Operations $300,000 to Schools~ $200,000 to General ~bvernment 0~t. 1 o~t. ~ 0~t. 3 0~t. i & 3~ o~t. $1,530,000 $1,5~0,000 $z,5~0,000! $1,530,00o 300,000 + 880,000 + ~70,000 + 770,000 i" + 500,000 +$1,830,000 $2,~10,000 $2,000,000 $?.,300,000 ~ $?.,030,000 SCHOOL ALLOCATION Revised Allocation +$ 7?.0,000 School/Park Service + ?.75,000 Debt Service Reserve + 185,000 School Carry Over Balance + 350,000 Sub Total +$1,530,000 April 6, 1989 (Afternoon Adjourned Meeting) (Page 3) 467 Mr. Agnor said yesterday he suggested that the $185,000 reaped from the debt service be allocated to various agencies, such as Region Ten Community Services and the Jefferson-Madison Regional Library. He said the options outlined above would allocate this $185,000 to the schools. Mr. Bain said he has worked out the following budget, using $300,000 from the Schools' carryover balance, $500,000 from the reserve for schools and parks, $185,000 reserve for the the debt service, $714,000 from the revised allocation, $300,000 from increasing the costs of decals by $5.00, $585,694 from an increase of two cents in the real estate tax rate, and $165,000 from the CIP. This gives the County an additional $2.7 million, which he suggested distributing as follows: $250,000 to General Government, $100,000 to the Library, and $2.4 million to the Schools. Mr. Bain said he has no problem with stipulating to the Schools that the money allocated to meet the growth needs must be carried over if the expected growth does not occur. Mr. Bain said an increase of two cents in the tax rate amounts to an increase of about three percent, or 17 percent when added to the 14 percent increase in assessment values. He said there was no increase in taxes last year, so this increase can be considered an eight and one-half percent increase per year over a period of two years. Mr. Lindstrom questioned the use of $165,000 from the CIP and said he does not want to set the precedent of using garryover money to fund the operations budget. ~ Mr. Perkins referred to the four options outlined above and said the first and second options call for a tax increase and he is not willing to support an increase in taxes. For the same reason, he cannot support Mr. Bain's proposal. He said the success of Option 3 will depend upon the will of the people. As for Option 4, he said, he agrees with Mr. Lindstrom that carryover money should not fund the operations budget. He said he supports the original proposal made by the County Executive at the first budget ses- sion, because he thinks the County should try to work within the revenues it has. !~ Mr. Bowie said the $500,000 carryover balance in General Goyernment is money left over from last year's operating budget. He said at least a portion of carryover money has been used for needs other than capital improvements projects every year he has served on the Board. He said he thinks this $500,000 can be used for operating expenses~~ if the Board so wishes. He said he thinks the Library, Region Ten and the Health Department will need more money and he thinks the budget should provide for these needs. He said he believes the Education Department has genuinA needs that may go unfunded, related to growth and the maintenance of the~ schools. However, he said, some of these needs could be met if the Schools S~aff managed their budget properly and directed their resources wisely. He sai~ he does not believe the Schools staff budgets their money according to the ~ght priorities when they ask for $300,000 for staff development and wish for ~othing for equipment in the schools. I! Mr. Lindstrom asked Mr. N. Andrew Overs~reet, Superintendent of Schools, to explain the $300,000 shown for staff development in the Schools' budget. Mr. Overstreet said $150,000 of this sum would go toward "teacher vouchers", which is a sum of $100 for each teacher to upe as he or she sees fit to improve his or her skills as a teacher. Mr. be used for classes or workshops. Mr. Bowie said these classes and worksh teachers, but he does not think such expendi the maintenance of the schools. Mr. Lindstr staff development is a legitimate request if the classroom. He said he cannot support re balance, an unpredictable amount, and applyi Overstreet said the money could )ps may greatly benefit the ~ures are as important as funding ~m said he thinks funding for the money improves instruction in ~oving money from the carryover ~g it towards operating expenses. The alternative, raising the tax rate by twoicents, would cost the average homeowner with a $120,000 home only $24 moreldollars each year. Mr. Way said the County can raise almosT $2.4 million, using Mr. Agnor's recommended reallocation and various suggestions by members of the Board, without raising the tax rate. He said therei, is enough money in the CIP to pay for the projects needed this year. Mr. LindStrom said there is enough money 468 April 6, 1989 (Afternoon Adjourned Meeting) (Page 4) only because the Board has allocated money to the CIP every~ear for a long time and he thinks it would be unwise to stop~ecially in the face of ~ continued growth in population. He said it does not make any sense to say "we have enough money for this year; we'll worry about next year when it comes". Mr. Agnor said there are $4.5 million in capital improvements projects planned for next year, excluding the schools, which will be paid for with borrowed money. He said there a reserve of $700,000 included in the $4.5 million, which means the projects are planned to cost about $3.8 million. Revenues for the CIP include $1 million from the General Fund, $75,000 from the sale of McIntire School, $250,000 in interest earned on the balance in the CIP. These funds total $1,365,000. If school bonds are sold this fall, the disbursements from the bond issue will pay for the balance of the project and the County will be able to recover the money that has already been spent on the project, an estimated $1.2 million. Mr. Agnor said this will bring the budget for the CIP close to the $3.8 million needed for projects. Mr. Lindstrom asked where the money will come from to pay back the bonds in the following years and said he thinks it is unwise to borrow more money to make payments on borrowed funds. Mr. Bowie said he hopes.~the citizens of this County will approve a meals tax the next time it is on the ballot. Mr. Lindstrom said the County does not have enough money to meet its operating budget, much less fund the millions of dollars worth of CApital improvements projects needed over the next five years. He said the co~mittee studying the long-range needs of the School~, system is to make its report soon. Even if their estimate that $20 million will be needed to build n~w schools is inflated, he thinks there will be at least $10 million negded for new schools and renovations. If the County borrows this money, he a~ed, how will the County pay it back? He said he does not understand how t~he schools can be built, the business of the County carried on, and the bonds paid, without raising the tax rate. Mr. Bowie said he thinks the Board is facing two issues: what to do about this year's budget and what to do about the budget ~n the following years. He said the committee studying the long-range needs of the schools has not even made its report yet. He said the only schools h~ is willing to discuss funding are the two schools currently in the CIP: ~ the Southside Elementary School and the Crozet replacement school. Mrs. Cooke said borrowed money is expensive money. S~he said she does not understand why the County would use such expensive money when there is another option. She said reinstating the five cents that was deleted from the tax rate several years ago would reduce the County's reliance i'on this expensive money. She said the taxpayers will have to pay for the bQ~rowed money eventu- ally anyway. Mr. Lindstrom said several members of the Board havelmade assumptions about whether the public will accept an increase in the tax rate. He sug- gested that the Board propose an increase of two cents in ~the tax rate and hold a public hearing on the proposal. If the public convinces the Board that a tax increase is unacceptable, the Jtax rate can be restored without any trouble. Mrs. Cooke said she supports this suggestion. Mr. Perkins said he talks to people every day and no ~ne has told him he or she wants a tax increase. He said only the people who '~ant an increase in the tax rate show up at public hearings. He said he think~ the Board should vote on the matter. He said the meals tax suffered an overwhelming defeat. He said he is concerned about farmers, who may have to payladditional money each year if taxes are increased, and who may not have ma~ a profit in five years of farming. Agenda Item No. 4. Set Tax Rates for 1989. Motion was offered by Mr. Lindstrom and seconded by M' rise for public hearing a tax rate of $0.74 on real proper and the motion failed by the following recorded vote: AYES: Mr. Bain, Mrs. Cooke and Mr. Lindstrom. NAYS: Messrs. Bowie, Perkins and Way. :s. Cooke to adver- ~y. Roll was called April 6, 1989 (Afternoon Adjourned Meeting) '(Page 5) 469 Motion was offered Mr. Perkins and seconded by Mr. Bowie to advertise for public hearing a tax rate of $0.72 on real property. Roll was called and the motion failed by the following recorded vote: AYES: Messrs. Bowie, Perkins and Way. NAYS: Mr. Bain, Mrs. Cooke and Mr. Lindstrom. ~The Board agreed to again address the matter of setting the tax rate and ado the budget at its next meeting. Due to the constraints of time, Agenda Items No. 5 and 6 were not dis- cussed at this meeting. Agenda Item No. 5. Order Advertisement of Public Hearing on 1989-90 County Budget. Agenda Item No. 6. Other Matters Not Listed on the Agenda from the Board and Public. Agenda Item No. 7. Adjourn. At 5:33 P.M., motion was offered by Mrs. Cooke and seconded by Mr. Bowie to adjourn this meeting until 4:00 P.M. on April 10, 1989. Roll was called and the motion carried by the following recorded vote: AYES: Messrs. Bain and Bowie, Mrs. Cooke, Messrs. Lindstrom, Perkins and Way. NAYS: None. ~ ~ CHAI~