Loading...
HomeMy WebLinkAbout2001-03-21 AdjournedMarch 21, 2001 (Adjourned Meeting) (Page 1) An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held on March 21, 2001, at 1:30 p.m., Room 235, County Office Building, McIntire Road, Charlottesville, Virginia. This meeting was adjourned from March 14, 2001. PRESENT: Mr. David P. Bowerman, Mr. Lindsay G. Dorrier, Jr., Ms. Charlotte Y. Humphris, Mr. Charles S. Martin (arrived at 1:32 p.m.), Mr. Walter F. Perkins and Ms. Sally H. Thomas. ABSENT: None. OFFICERS PRESENT: County Executive, Robert W. Tucker, Jr.; County Attorney, Larry W. Davis; Clerk, Ella W. Carey; Assistant County Executive, Tom Foley; and, Assistant County Executive, Roxanne White. Agenda Item No. 1. The meeting was called to order at 1:31 p.m., by the Chairman, Ms. Thomas. _______________ Agenda Item No. 2. BUDGET WORK SESSION: FY 2001-2002 County Operating Budget. __________ Item 2a. School Budget. Present from the School Board were Mr. Charles M. Ward, Chairman, and Mr. Stephen H. Koleszar, Vice-Chairman. School Board staff present were: Dr. Kevin Castner, Mr. Frank Morgan and Ms. Diane Behrens. Mr. Ward said he will talk about several issues for this budget. First is Excellence Through Equity - A SOLs and Beyond. He said there cannot be excellence unless there is equity. The Standards of Learning @ have made it mandatory that all students have equal access to learning in order to get to 70 percent or better of verifiable credits. The next issue has to do with growth which was less than expected in the current year. There is the increased cost of doing business, and the School System must attract and retain the best personnel. Mr. Ward said the School Board is asking for $96,899,154 for the School Fund. They also have $9,410,397 needs for the Self-Sustaining Fund. Their request was originally $2.4 million over projected revenues. The new number determined late yesterday, based on the Governor not calling back the Senate to resolve the State budget conflict, is $1,950,000 over projected revenues. That assumes using the $650,000 which the County Executive has recommended be transferred to the Schools. He noted that the Schools rate of increase is less this year (7.2%) than last year (8.7%). = Mr. Koleszar said he will mention first the budget process. The School Board created a Budget Committee this year to decide how to go about the budgeting process. The budget document is smaller and more user-friendly. This helps the community and the School Board members better understand its contents. There was a lot of discussion about the School Boards directions to the Superintendent. It = decided to be consistent with State Code and direct the Superintendent to prepare a needs-based funding A@ request. That was done and after receipt of the document, the School Board had two public information sessions, four budget work sessions and a public hearing. The School Board then approved funding requests based on the Superintendents recommendations. = Mr. Koleszar said the next requests to be discussed are those for existing obligations, operational increases, growth, continued phase-ins, and selected initiatives. Mr. Ward said the cost of electricity and fuel are part of existing obligations/operational adjustments. He said electricity has increased only 10 percent, but fuel is up 47 percent ($150,000). He does not think that cost will drop any time soon, and there is still heating oil used in some of the schools. Also, the Standards of Learning require that any remedial education classes take place during the summer months. Since remedial education is mandatory, students must be transported, and that is another change from a few years ago. The PREP Program is mandatory, along with the Comprehensive Services Act. Mr. Ward said that in 1989 the School System bought over 100 buses, and now it is 13 years later. That is why there is another $431,000 in the budget for bus replacements. CATEC is still doing great, but it is part of the Countys obligations. He said that in the current school year, they had planned for an = additional 200 students, but they received only 50. This is the first time in years that they did not meet their projection. He said they only staffed for those 50 students, so received funds from the State based on the Average Daily Membership based on those 50 students. That savings in expenditures will be used to fund other things. For the 2001-02 school year, they have projected an additional 135 students. Mr. Ward said that the growth category includes things such as the start-up costs for the Baker- A@ Butler Elementary School opening, and custodial services. There is also the program known as English as A a Second and Other Languages. He said there are over 40 languages being taught in Albemarle schools. @ There are three assistant principals being added to the system. There is the cost of 4.98 regular education teachers and 5.5 special education teachers being added. Mr. Koleszar said the System is receiving more children with special needs, children who have more severe difficulties and disabilities, so more special education teachers are being added than regular teachers. Mr. Ward said that also under the category of growth is the addition of five learning cottages. A@A@ Mr. Koleszar drew attention to the category of Continued Phase-in which carries funds for A@ emergency positions, gifted positions, literacy specialists, strings, and coaches compensation. He said that = March 21, 2001 (Adjourned Meeting) (Page 2) last year the School Board began a policy of having some emergency teaching positions. This will help avoid classes of excessive size. They continue a multi-year phase-in of gifted teaching positions. The gifted instruction, the way it is done in Albemarle, transfers down to all the students. Using literacy specialists has been found to be the most effective way to improve instruction for children who are below grade level in reading. In the schools where these positions have been funded, dramatic improvements have been seen. As to the Strings initiative, the School Board made a commitment three years ago that A@ there would be an orchestra program. If this program is not funded this year, what has been done so far will have been wasted. He said coaches are being compensated based on their 1992 salaries. The School Board thinks it is time that there was a fair and equitable way to compensate them for all the extra hours they spend on athletics. Mr. Ward said there is a discipline needed for the strings and athletic programs. There is a team work element involved which must be learned before getting into the workforce, and a discipline in performing. Also, in order to be on a team, grades must be maintained at a certain level. Mr. Koleszar said the School Board has selected Initiatives such as: compensation (to be A@ discussed later), the Enterprise Center, and the Web Analyst for funding. He said they have created a Center where disruptive students can be taken out of the main stream and placed in a program to give them a last chance to turn their behavior around. One position that has been the subject of controversy is that of a web analyst. They need this position because of the increased use of the Internet to promote learning. The web is a tremendous tool for staff development. Mr. Ward mentioned the expected increase in revenues. He said if the Governor does not call back the Senate to reconcile the budget, and it is based on estimates of two years ago, the School System will receive only a .09 percent increase or $25,854. He said that in 1992-93, the State provided 37 percent of budget needs. Now, State support will go down to 32.5 percent if no changes are made. He said the responsibility is being shoved down to the locality, and the irony is that the School Board is being required to be more accountable to the State in the way Standards of Accreditation, Standards of Quality, and the SOLs. Mr. Koleszar said there are hidden costs in implementing the SOLs. He said that all across the country, education reform is the buzz word. It was the theme of the Presidential election. He said children need to be educated better than ever before, and not just some of the children, but all of the children. He said this drives their budget, and he recommended that all read Pages 814 and 815 of their budget document. The School Board set a goal of having all the schools accredited by the year 2002. This years = ninth graders are the first children who will need five credits under the new SOL standards in order to graduate. The School Boards priorities and goals are set out on these pages. They are measurable in = order to hold them accountable, and they have to be accomplished. In order to do that, they need the four focused resources listed. Mr. Koleszar said there have been three salary studies since he has been a member of the School Board. All three agreed that Albemarle County salaries are lower than the market. The Compensation Committee worked hard, and they did reach a consensus on market value. He, personally, felt it was too conservative. In order to attract and retain the best educators, the County has to be at market. He said the best way to tell if salaries are at market is by the turnover rate. In two years, the School system has gone from six percent turnover to 14 percent. He said it is not just teachers, where positions cannot be filled, but in other areas as well. There is an increasingly competitive market in this area. A conservative guess is that teacher compensation needs to be increased by 4.2 percent in order to get near the market rate for teacher compensation. They also included a 4.2 percent increase for their classified employees. Mr. Koleszar said as to accountability results, they are proud that they produce each year a progress report in which it is laid out what the students are doing, both good and bad. Even before the State had an accountability program, Dr. Castner had a progress report in the County. It has allowed people in the community to come to the School Board and say what is wrong, and ask how it will be fixed. Mr. Ward said the School Boards highest priority is compensation. He said if the Schools are = doing a good job, the kids will read at this required level earlier in time. They feel that once students read earlier, they will want to take classes, not at the practical level, but at a more advanced level. The School Board feels this will assure continued academic success. They are aggressively pursuing and retaining the brightest and best educators. If their compensation request is not fully funded, they will look at increasing class sizes. That would be a reduction in the level of effort and the quality of their educational programs. He said the community demands, and expects, a higher quality of education for its students. Mr. Ward said the School Board is investing in the future. Facilities such as the Baker-Butler school are being built, and there will be need for another southern elementary school. There are technology enhancements in the schools. There is compensation for teachers and administrators. There is professional development. In essence, the County is growing its own administrators. They are also strengthening the evaluation system for both administrators and teachers, and also the superintendent. He said the schools curriculum goes beyond requirements. They want to get past the SOLs so they can get to the more fun things which can be done. He said there is a lot to do. It is technology oriented. All of this is a package working toward providing a world class school division. He offered to answer questions. Mr. Tucker asked how much class size would have to increase if the budget is not fully funded. Dr. Castner said they could increase class sizes in Grades 4 - 12, but would not in K - 3. He said they could reduce efforts in some programs or maybe choose to not expand gifted services. In order to make up their $2.0 million shortfall, it is almost inevitable that a class size increase be considered. Ms. Thomas asked if this budget request includes a reduction in positions. Mr. Morgan said the budget as presented to the Supervisors fully funds growth, and the other programs referenced in the March 21, 2001 (Adjourned Meeting) (Page 3) presentation. Class size increases would be determined depending on the types of revenues received. Ms. Thomas said she would like to hear more about the reference to yesterdays news because A=@ of what it has done to the current budget. Mr. Morgan said the budget passed by the General Assembly was based on the collection of a certain amount of sales tax revenue. Those projections will not be met. That will decrease both the sales tax revenue and the per pupil funding received by the school system. Because it has not been decided to call a Special Session of the General Assembly to deal with next fiscal years budget, the Governor is required by law to use last years sales tax projections in his budget. Since == they were extremely optimistic, that will lower projected revenues in both the current year and for next year in the way of per pupil state aid and sales tax revenue. Since the System did not get the number of additional students which had been projected for the current year, the savings in compensation costs can be used to address the revenue shortfall in the current budget. Ms. Thomas asked if the School System will be able to make up the $465,000 which has been cut from the current budget. Dr. Castner said the System had a 7.5 percent holdback on all departments during the current year. It is possible that amount cannot be released. They also have some carryover moneys. Normally those carryover funds would be used to fund the next years budget. He said they can = meet the $465,000, but do not know all the options at this time. Mr. Ward said the $465,000 is not a solid figure yet. Mr. Morgan said for the current year (FY 01), it is probably accurate, but there is no way of > knowing what will happen next year (FY 02). > Mr. Dorrier said he has a question about salaries. What is the difference between the County Executives recommendation and that of the Superintendent? Mr. Ward said the School Board = recommended an increase of 4.2 percent. Mr. Dorrier asked the dollar amount of the difference. Mr. Morgan said it is about $65,000 per point between the 3.9 percent recommendation of the County Executive and the 4.2 percent recommended by the School Board, or $195,000 difference. Mr. Dorrier asked about the goal of having all schools accredited by 2002. He thought all schools were accredited. Mr. Koleszar said they are provisionally accredited. The State has given until the year 2007 to have schools accredited by having 70 percent of the students pass the Standards of Learning. The School Board has said it would like to meet the 2007 deadline by the year 2002. Ms. Thomas said the per pupil increase in cost from last years budget is shown at 3.8 percent = which is almost exactly the same as the increase in the cost of living. Mr. Koleszar said that is not the way the School Board built its budget. Mr. Ward said it is a needs-based budget. Mr. Dorrier asked where the new enterprise school for disruptive children will be located, and who will operate the school. Mr. Ward said it is operating now in a trailer located next to Murray High School. It is being operated by Dr. Vicky Cruse-Miller working with a committee. Mr. Dorrier asked how many students are in the facility. Mr. Ward said there are 33 at this time. He said this is a process, where the staff at the enterprise school will look at the needs of the student. They will devise a plan for that student and have a contract with the parents. Mr. Bowerman said he thought the City had an enterprise type situation and the County participated in that. Mr. Ward said that was true in the past. Ms. Diane Behrens said the Enterprise Center is for Albemarle County students in the middle and high schools who have been expelled or been referred for disobedience at school. Charlottesville has an Alternative Education Center that the County has been allowed in the past to have a few students attend. Those spots have been closed because the school is full. The County received a grant of about $46,000 in partnership with Nelson County and the City to provide services for children in Grades 7 - 12 who are not allowed to come to a school, to have instruction at home. Mr. Bowerman asked if the County is obliged to educate those students who have been expelled from the schools. Ms. Behrens said the County has no obligation to do so. Mr. Koleszar said that if special education is available, it can be done. The School Board feels that even though a student has been expelled, they should be given one more chance. Mr. Ward said that before the Enterprise Center, the Schools did not have many options for these students. Mr. Bowerman said he thought the State required that all students be educated. Mr. Koleszar said that is true only of special education students. Mr. Ward said if a student is particularly violent or puts the safety of other students in the school at risk, the School Board would have to go to court to not educate that child. Mr. Bowerman asked how many children can be enrolled at the Enterprise Center. Ms. Behrens said they have space for 50 children. Mr. Bowerman asked if the grant applies to this program. Ms. Behrens said it does not; the grant is used to educate some students at home. Mr. Bowerman asked if that program would be discontinued and replaced by the Enterprise Center. Ms. Behrens said no, they need A@ both programs. She said the School Board allotted $145,000 in the current year to operate the Enterprise Center, and each of the middle schools contributed part of their staff toward the center, as did the high schools. They feel they can get more done in the schools, if some of the disruptive students are removed and put into the center. Ms. Thomas asked about the Ivy School. Mr. Ward said that school is for the Piedmont Regional Education Program (PREP) which is for emotionally disturbed children in Grades K - 12. The idea is to give March 21, 2001 (Adjourned Meeting) (Page 4) these children social skills, and once they can participate, some go back to their home schools. Ms. Thomas said there is Murray High School. Mr. Ward said there are 72 students at Murray at this time. It is a non-traditional school. It has been approved to be the Countys first charter school, and the = enrollment is expected to increase to over 100 students. Mr. Martin said to keep in mind that the Ivy School and this Enterprise Center will keep the County from paying from $10-$50,000 per month for any student who has to be placed in some of the more restrictive residential facilities. The County would still use C.S.A. money to send children to much more restrictive places. Mr. Ward said before the Ivy School, if some of the emotionally disturbed were too disruptive to be handled in the regular classroom, the School Board had no choice but to place them in private facilities. Mr. Bowerman asked if the County did not have the Enterprise Center, and the City did not have vacant slots, whether the County would have to pay to have those children sent to some facility, in addition to the students who are emotionally disturbed. Mr. Ward said the County could just put them on the A streets. Mr. Koleszar said the real impetus for the School Board to create the Enterprise Center, was the @ fact that they were seeing students for expulsions who had 40 referrals. Mr. Martin said that even if the child is expelled, it is only for the rest of school year, so that child comes back to the school. Mr. Ward said the idea was to give the School Board options to help that child finish his education. Mr. Dorrier asked about the increase in the teacher turnover rate the last two years. He asked if the Schools do an exit interview. Mr. Koleszar said that a couple of years ago that practice was stopped, but the idea is being studied again. The School System does not have any good data on why teachers have been leaving. Mr. Dorrier asked if there is any way to know if compensation is involved. Mr. Ward said no. A@ Dr. Castner said there is an aging teaching staff. There is a greater percentage of teachers reaching their 30th year of teaching, which is a good reason to retire. Mr. Bowerman asked if there is a chart in the budget showing the demographics of that. He said that is kind of a crystal ball into the future because when teachers retire, the Schools lose that skill level. Mr. Morgan said there are less teachers being produced, and that is the problem everybody is experiencing. Mr. Koleszar said when he first became a member of the School Board, there were many qualified applicants for vacancies. Last year, even with a major recruiting effort, they hired 90 first-year teachers and still had some positions which were not filled on the first day of classes. Mr. Bowerman asked if there were more than one applicant per position. Mr. Koleszar said that is something on which they do not have good data. However, previously they had no problems hiring. Mr. Bowerman said his final question concerns the average number of years a teacher has worked before they are hired. Mr. Morgan said in the past, they budgeted for teachers with five years service and a masters degree. For the past couple of years, they budgeted for four years. During the current year, 59 = percent of the teachers who were hired were first year teachers. Just under 70 percent of the teachers have five years or less of experience, and 70 percent of the teachers who left had more than five years of experience. There is also less of a problem hiring in some teaching areas. Elementary teachers are less of an issue. But, if there is a biology or physics or technology education opening, they have to struggle to find a candidate. They try to anticipate those opening ten or more months in advance so they can recruit in the right locations. Mr. Ward said people are getting teaching certificates in addition to a degree in their functional areas. So, the School System is actually competing for people who can go into scientific endeavors. They have other options. Ms. Thomas asked if people are being given incentives to retire early. Mr. Ward said the Countys = VERIP Program is still in place. Mr. Koleszar said the Compensation Committee intended to look at that program to see if it should be discontinued. Ms. Thomas said a member of the public asked her why the County continues to give incentives to retire. Mr. Perkins said the State proposed a program to allow teachers to retire but to continue working and let their retirement payments go into escrow. Mr. Morgan said the proposal was to allow the teacher to retire and continue teaching, literally do both. He does not know how the proposal fared. Mr. Ward said he does not think the issue has been resolved yet. Mr. Koleszar said that because of the nationwide teacher shortage, the State legislature is looking at such ideas as a solution. He said that retired teachers in their late 50's or early 60's who could teach part-time and still retain their retirement moneys, should be a win-win situation. Mr. Morgan said it is a long- term goal of the School System to attract young teachers and keep them in their employ. Mr. Dorrier said he thought the Compensation Study that everybody worked so hard on would give the School System the tools needed to attract the best and the brightest. Mr. Koleszar said the strategy to deal with market salaries will help them attract the best. First, the School System has to get to that market salary. There were no further questions of the School Board. (Note: Ms. Thomas called a recess at 2:25 p.m. The Board reconvened at 2:43 p.m.) __________ Item 2b. Capital Improvements Program, FY 2001-02/FY 2005-06 and Capital Needs Assessment, FY 2006-07/2010-11. March 21, 2001 (Adjourned Meeting) (Page 5) Ms. Roxanne White made the presentation. She said the CIP budget totals $113.0 million, a 32 percent increase over the current budget. The difference this year is the incorporation of a long-range capital needs assessment and a multi-year planning process. She said this is a new process which was discussed last year. Also, the years from 2007-2011 were not studied for revenues. Ms. White said that when the financial consultants made their report to the Board last year, they recommended a new long-term capital investment strategy of: increase the General Fund transfer to the Capital Program each year by the rate of revenue growth (for FY 01 that was 6.6 percent); increase the > annual General Fund transfer to Debt Service by that revenue growth rate; set aside an additional 0.5 percent of operating budget growth to the Capital Fund; and dedicate $0.01 cent of the tax rate to Capital Debt Service. Ms. White said this is an excellent strategy. It puts more of a commitment into the Capital Program. In previous years, two percent of the General Fund went into the Capital Program. For FY 02, it will be 3.7 > percent. She said the commitment the Board made to that investment strategy, plus a lot of the one-time moneys which have been put aside in reserve, have helped fund the total of $210.0 million over the next ten years. Ms. White started by explaining General Government categories. The first projects have to do with Administration and Courts and continues funding for the new/expanded court facility project. There is $10.0 million budgeted in FY 04 and FY 05; with $15.0 million budgeted in the out years of FY 08 and FY 09. It >>>> is not known at this time what the phasing of the courts project will be. Depending on the scenario and the design of the project picked, it is possible that some of the funds in the out years may have to be brought forward into the first five years. Mr. Dorrier asked when this project will be returned to the Board for a final decision. Ms. White said the Board returned the project to a new committee to study, so it will be several months. Ms. Thomas asked if some of the funds for this project might have to be moved forward. Ms. White said it will depend on the phasing because that will have a big impact on the Countys financial = commitment. Ms. Thomas asked if staff has assumed that there will need to be a bond referendum for anything in this budget. Ms. White said staff assumed there would definitely be a need for borrowed funds, but not necessarily a bond referendum. Ms. White said the other project in the Courts section is a $250,000 enhancement project to Court Square. The City has a project underway using ISTEA Funds. The Countys $250,000 will be used for = upgrading its property, improving the retaining wall, brick repairs, landscaping, and making it more available for tourists. The next section is that of Public Safety. $6.0 million has been added for three new fire stations - southern, Route 250 West, and in the northern area. This budget continues the $4.6 million for a new public safety facility. It also continues $1.0 million for a combined fire/rescue training center and firing range. Last year these were shown as two separate projects, but there is a possibility they could be located on the same site so they have been combined into one project in this budget. Mr. Dorrier asked if the firing range would be open for the public to use. Mr. Tucker said that has not been discussed yet. Mr. Foley said it is being designed just to meet the training needs of this division. Mr. Bowerman asked that it be considered for use by the public for a fee. Ms. Thomas asked about the 800 MHz Radio Project. Ms. White said that project has been funded in the current year. However, the first year of debt service for the project is shown in this budget. Mr. Bowerman asked how this project was funded without a referendum. Mr. Foley said it will be financed through Motorola. The next section is for Highways and Transportation. This section adds $4.3 million over the current CIP which includes $1.8 million to Neighborhood Planning efforts, $1.8 million to the Sidewalk Construction Program, and $600,000 to the new Transportation Planning and Improvement Program. She said a lot of what is in this section is in response to urbanization and infrastructure needs, as well as looking at the impact of some DISC recommendations. The next section is Library Projects. Added in this section is $720,000 in FY 05 to begin the > design/engineering work for a Northern Library. Actual library construction is in the FY 07-11 section. A > consultant is working for the Library Board, and he is about to make a report. She believes there will be a request to move some library projects forward in time, particularly Crozet which is planned for FY 11. She > said that in the out years there is $20.0 million shown for a second Northern Branch, Crozet, Southern Neighborhood, Scottsville expansion and Central renovation. Ms. Thomas said she is not convinced there is a need for a new northern library, although she will wait for the consultants report before deciding. She said that once such a project is shown on this list in the = CIP, there will be the expectation that it will happen. Ms. White said one reason it was decided to do the long-range assessment was so projects out past the first six years could be analyzed without officially being a part of the CIP. Ms. Thomas said she would not want the Library Board to think that just because the project is listed in the CIP, library construction will begin in year seven. Mr. Tucker said the Library Board is directing the consultants in the assessment which is ongoing. They will make a report to this Board based March 21, 2001 (Adjourned Meeting) (Page 6) on that assessment. Mr. Bowerman asked when the lease for the Albemarle Square property expires. Ms. White said it occurs in October, 2001. She said there will be negotiations for a new lease beginning sometime this month. It is a wonderful site and has been a very successful operation although the facility is not large enough. Ms. Humphris said there is a statement in this report that 50,000 square feet is needed for a library in the 29 North Corridor. She asked who decides that two 25,000 square foot libraries, well placed, are better than one large library. Ms. White said that will be a combination of the Library Board, this Board and the consultant. Ms. Humphris said it sounds as if the Library Board has already said it wants two, 25,000 square foot facilities, and as Ms. Thomas said, it is likely to be a self-fulfilling prophecy. She said one large library might be more economical, efficient and provide better service. She would like to have a statement in this budget document to reflect the Supervisors thinking, instead of just having what is listed as the final answer. Mr. Dorrier said libraries have become more of an information center. There may be a physical structure that does more than just house books as it used to do. Ms. White said that is also something the consultant was asked to study because of the change in technology. Ms. Humphris said the library is promoting E-books now. Ms. White said she thinks the recommendation which comes to the Supervisors A@ will contain many options. This budget was based on what the Library Board requested. Those requests have not yet been analyzed, awaiting the consultants recommendation. = The next section is Parks & Recreation, which continues $1.1 million for Athletic Field Development. It also continues $1.6 million for an Urban Recreational Facility. The Board has previously seen the proposal for an urban gym. That has been combined into two projects with $1.5 million in FY 04 > for the urban gym, then with the possibility of studying a more comprehensive recreational facility in FY 07 > (a more comprehensive facility which could include exercise rooms, multi-purpose rooms, even swimming). A consultant is being hired in FY 02 who will look at recreational needs in the more urban areas. Mr. > Bowerman said having the County build baseball fields is one thing, but the private sector provides gym type recreational facilities for a fee, and he would not want to interfere with that. Ms. White said she believes the consultants will study that question also. Ms. White said the Parks & Recreation category also funds $400,000 for River Access, Greenway Development and the Paramount Theatre renovation using Tourism Funds. Last year there was a separate section for Tourism Funds in the CIP. Staff felt all projects should be shown in the CIP, just showing Tourism Funds as part of the revenues. Ms. White said the category of Acquisition of Conservation Easements continues $1.0 million funding for the ACE Program in FY 02. This funding is $650,000 in local revenues and $350,000 in > Tourism revenues. Mr. Dorrier asked the status of applications for the ACE Program. Mr. Davis said these will be on the agenda for the Boards meeting on April 4. = Ms. White said the Stormwater Fund category adds $1.6 million for stormwater projects, which includes drainage system mapping, drainage and basin repairs, and regional basin construction. Ms. Thomas said she continually receives letters from citizens who want to be sure their project is on the list and moving forward. Ms. Humphris said she believes Engineering has a priority list. Ms. White said that is true, but it was not included with the paperwork for todays meeting. = Mr. Dorrier said he had a call from someone in Lake Reynovia this morning who said the runoff is going into their yard because the stormwater basin does not work. Mr. Martin said he believes there is a bigger problem connected with this particular complaint. The problem is on-going, and the least amount that can be done to solve the problem is what has been done in the past. Mr. Dorrier asked if the County has a way to deal with developers who leave a project half completed. Mr. Tucker said the County has bonding requirements. Mr. Bowerman said some of these stormwater problems are no longer bonded, and Engineering has worked with the developer, who is no longer involved in the project, and with the homeowners associations and with the County to find a solution. Part of the solution is usually that the County take over the basin. He complimented the Board of Supervisors because the Rio District has contained the majority of these projects. The Board has been willing to direct money to those problem areas, mostly around Route 29, for the last 10 years. Ms. Humphris said some of the smaller basins are located in the Jack Jouett District. It is good that the County has taken over some of those projects because the citizens feel better about the Board when their problems are solved, but the problems have been in place for a long time. Mr. Davis said he would like to reply to Mr. Dorriers question. The construction of the basins is = bonded, but the maintenance is not. Once the basin is fully constructed, for those basins not dedicated to the County, that maintenance falls to the homeowners association. That is the issue which is before the Board now. The County is not obligated to take over those facilities. Mr. Dorrier asked if staff will look at the runoff problems in the Lake Reynovia/Mill Creek area. Mr. March 21, 2001 (Adjourned Meeting) (Page 7) Tucker said staff will follow up on Mr. Dorriers question. He said both subdivisions have detention basins, = and probably the lakes also serve in that capacity. Mr. David Benish said there has been a rezoning request filed for more lots in Mill Creek. That will be coming to the Board soon. The next category is that of Schools. This section totals $63.3 million. Added is $13.8 million over the current CIP (28%). It funds $23.0 million for a new Northern Elementary and a new Southern Elementary school. It funds $25.4 million for additions and renovations, and adds $2.5 million for maintenance and repair projects. Ms. White said the Schools placed a greater emphasis on repair and maintenance projects in this request (a 30% increase over the current CIP). They feel that this type of project has been under funded in the past. A decision was made not to borrow funds for this type of project, so after this year there will be a General Fund Transfer of $1.8 million to fund some of the more minor repair projects. The only projects to be funded with VPSA bonds will be major roof replacements, major HVAC replacements, or any large paving projects. Other projects will be funded through current revenues in the General Fund. Ms. Thomas asked if those funds will be deducted from the Schools operating allotment. Ms. = White said no. She said Mr. Al Reaser was present to answer any specific questions the Board may have A@ about school projects. Mr. Bowerman asked how much money has been spent on Albemarle High School since it was built. He said it seems like there is a $2.0 million project every couple of years. Mr. Reaser said that in 1992, there was a $6.0 million project which was about the eighth major addition to the School which opened in 1954. The next category is County Debt. $23.0 million in General Government borrowing and $58.0 million in School VPSA bonds will be required to finance projects. It increases debt service (repayments) from $9.4 million to $15.2 million, although debt remains below the Countys debt capacity maximum which = was set at ten percent. Ms. White then showed a slide representing the Countys Long-Term Debt. She said there has = been an increase in General Government debt, with a leveling off of the Schools debt. The Schools long- == term debt stays at about $80.0 million, while that of General Government goes from about $6,000 to over $27.0 million in FY 06. The total outstanding debt for the County at the end of the five-year period is about > $114.0 million, while at the end of a full ten years, the total is expected to be about $138.0 million. Ms. White said the next slide represents Pay-as-you-go vs. Debt Service. She said it is important A@ to look at how local revenues have been used in the financing plan. There is approximately $21.0 million over the five year period that is a result of the Capital Financing Strategy. Basically, it is constant at about $5.0 million in direct funding for projects, and the increase shown is in Debt Service costs which go up to about $15.0 million at the end of FY 06, and to about $20.0 million at the end of FY 11. She said the >> Contingency has been important in funding this CIP. There was $5.5 million at the beginning of the A@ current year. That was due to the Boards decision to put $2.0 million in the Capital Reserve out of last = years revenues. It was also the $1.2 million that was put in from the two cents tax reserve, and also some = other moneys put aside for Debt Reserve. Part of what is in this CIP is because these moneys had been set aside and that is what is being used over the five year period to fund these projects. There is still the Contingency at the end of each year representing about 13 percent of the $113.0 million budget. Staff felt it was important to retain this contingency because the final costs of the courts project and the phasing of that project are unknown, and there are also the escalating costs of construction to consider. Ms. White said they felt it was important to have a contingency going into the out-years because it is felt that there will be more school projects requested than the projects currently shown in the five-year plan. Also, revenue projections for local revenues are based on a seven-percent assumption that there will be an increase of seven-percent in revenues each year. If the assumptions go down to five percent, that two percent change represents $12.0 million over a five-year period. There are a lot of assumptions built into this plan, so having the 13 percent contingency reserve is important. Ms. Thomas asked if staff knows how much interest the County would be paying on debt if there were not the pay-as-you-go plan. She would like to be able to show how much money is being saved on interest. Mr. Tucker said staff can have that figure for the Board by next Monday. Ms. White said that in summary, this plan commits to a lot of additional dollars. Requested needs are funded, needs for FY 07-FY 11 have been estimated, and that has all been done while staying within >> the Countys Financial Policy guidelines. = __________ Mr. Tucker said staff had prepared a spreadsheet in order to have an instrument to discuss concerning items put on the list at last Mondays work session. = Board of Supervisors FY 2001-02 Operating Budget == County General Fund RecurringOne-Time ReservesReserves Beginning Board Reserves 200,0001,723,000 Less County Executive Adjustments Reduction in Jail Budget Request42,992 Health Insurance Rate Reduction ($3143 to $3006) 65,600 March 21, 2001 (Adjourned Meeting) (Page 8) Adjustment to Southside Firefighters - benefits and capital11,518 Esmont Park - part-time worker FICA adjustment (165) Compression Adjustments - FY 02 budget impact(67,036) = Subtotal52,909 Plus County Executive Resource Changes Additional one-time funds needed to return surplus(200,000) Revenue Adjustments (ABC Profits Wine Tax and Recordation Tax) (1,588) Reduction in Budgeted 599 Funds(41,511)(70,822) Subtotal (43,099) Plus Board of Supervisors Resource Changes One-Cent Tax Reserve714,000 Subtotal714,000 Net Ending Reserves923,8101,452,178 RecurringOne-Time Board of Supervisor's Funding Initiatives for DiscussionCost *Funding Funding Administration Registrar-Storage/Programming expenses for voting machines20,00020,000 Judicial Sheriff - Additional part-time wages (no Comp Board reimbursement)34,46434,464 Public Safety JCFRA - One additional Thermal Imaging Camera10,00010,000 JCFRA - Additional training materials7,0007,000 Human Development Social Services - On-Call Compensation Program 16,00016,000 Commission on Children and Families - additional hours for planner2,1932,193 PVCC - additional operating expenses11, 45511,455 SHE - additional operating expenses919919 Bright Stars - Additional hours for Teaching Assistants10,06510,065 JABA - Woods Edge Rental Assistance (10 month program)40,000(6,666) Parks and Recreation Albemarle County Fair ?? Gypsy Moth16,84016,840 Jeffersonian Festival3,0003,000 COUNTY GENERAL FUND Community Development 1 FTE Planner56,69049,4407,250 1 Senior Planner - additional half-year - July 1 01 hire date26,521 26,521 > Zoning Inspector - additional half-year - July 1 01 hire date16,18116,818 > Two Zoning Inspectors - January 1 02 hire date86,09743,09746,000 > SBDC operating support5,0005,000 School Division Transfer resources to School Division--0 Additional Initiatives Funded 365,425231,66987,090 Remaining Board Reserve Fund (recurring revenues) 692,141 Remaining One-Time Revenues for non-recurring needs1,365,088 * Net cost to County after offsetting revenues School Division Available School Board Reserve Plus Additional Ongoing Resources - School Division50,000 Reduction in state revenues(174,362) Savings from Health Premium Reduction257,000 Savings from 0.3% Merit Pool Reduction from 4.2% to 3.9% (all employees)195,000 Subtotal277,638277,638 Plus Additional One-Time Resources - School Division General Fund transfer of recurring revenues- General Fund transfer of current year anticipated one-time revenues650,000 Subtotal650,000650,000 Total School Board Resources977,638 Unfunded School Board Initiatives2,403.865 2,403,8652,403,865 Recurring Needs Unfunded School Board Initiatives(1,426,227) Ms. White said the beginning Board Reserve has been broken into two categories this year. There is $200,000 available in recurring moneys, with $1.7 million available in current year projected revenues. March 21, 2001 (Adjourned Meeting) (Page 9) Mr. Bowerman asked if that figure will change after notification from the State. Ms. White said it will change. Mr. Tucker said he would like to emphasize that normally the staff gives the Board a figure for one-time moneys which are actual moneys in the bank. This year, the $1.7 million is what staff is projecting to have on June 30, 2001. That number may change since it is a projection. Ms. White then mentioned the adjustments made to the budget by the County Executive, a total of $52,909 being added to the Reserves. Then there are listed some resource changes. It will cost $1.4 million to give back the $1.2 million being held in reserve from last years tax rate. The difference of = $200,000 is being deducted from the one-time reserves. There are two revenue adjustments from the State; a reduction in ABC Profits and the Wine Tax, but there was a gain in the Recordation Tax so the difference is only $1,588. There is a reduction in 599 funds for FY 02 of $41,511. Also shown under one- > time funds is a reduction of $70,822 in 599 funds in the current year, FY 01. > Ms. White said $714,000, the one-cent tax rate reserve, has been added making a total of $923,810 as the net recurring reserve, with the One-Time Reserve now being at $1,452,178. Ms. White said the next section shows initiatives for discussion. Shown to be funded is a total of $231,669 from recurring moneys, with $87,090 being funded from one-time moneys. This would leave a total of $692,141 in recurring moneys and $1,365,088 in one-time moneys. Ms. White explained the items listed for the School Division. She said they have available resources of $977,638, subtracting unfunded initiatives leaves an unfunded balance of $1,426,227. Mr. Perkins asked if this budget is based on a $0.75/$100 real property tax rate. Mr. Tucker said the one penny was added back in and is shown as $714,000 at the top of the chart. These are revenues the Board could use for any purpose it so desired. Mr. Bowerman said he thought the Board had looked at that $714,000 as being non-recurring moneys which could be used next year to fund the opening costs of the new Baker-Butler School. Mr. Tucker said if that is the final decision, that money would be set aside in a separate account, and the items shown as being funded on this list would have to be looked at again. Another thing to remember is that if the Board held that one penny in reserve, it would not be needed until the next fiscal year. While waiting to be spent, it would be one-time money available for next year, and a recurring penny for FY 02. > Mr. Dorrier asked if the $1.3+ million shown as one-time moneys is available to be applied to the $1.4+ million unfunded balance for the School Board. Mr. Tucker said if the County gives all of the one- time moneys to the Schools, staff will have to decide how that difference will be funded next year. The School Board would be using the money for recurring expenditures. There would be a huge problem in FY 02-03. The $650,000 that the County Executive recommended for transfer from the General Fund would >= cover most of the School Boards one-time expenditures. = Ms. Thomas asked if Mr. Tuckers recommendation is to take the $714,000, hold it and have it = available for costs associated with the new Baker-Butler School. Mr. Tucker said that is correct. Ms. Thomas asked what Mr. Tuckers recommendation is based on, and what the $714,000 would = be used for. Mr. Tucker said the Schools are projecting that it will cost $840,000 to open the new school. He does not have a breakdown as to how much of that would be spent for capital items. He believes the majority of it would be spent for salaries, office supplies, etc. Mr. Martin said if you assume that the $714,000 is what the schools need, and the Board gave them those funds, because most of those costs would be recurring costs, the Board would have dedicated that one penny to the schools. Ms. Thomas said every time a new school is opened, something happens to tax revenues. Mr. Tucker said FY 03 will not be a reassessment year, so revenues are not known. Normally, > opening of a new school is programmed for a reassessment year. Mr. Dorrier asked about the change shown in the School Division for the salary merit pool. He asked if that is the difference between the County Executives recommendation and the consultants == recommendation. Mr. Tucker said no. The School Board and the Superintendent recommended an A@ increase of 4.2 percent. Mr. Tucker said he only had the consultants recommendation of a range between = 3.3 percent and 4.6 percent. He had used the average of those figures, or 3.9 percent. The School Board chose 4.2 percent. Mr. Dorrier said the School Board wants its employees to be paid at a different increase than that for General Government employees. He asked if the county ever does it that way. Mr. Tucker said it is not uncommon for the increase for teachers to be different. Mr. Dorrier said it is not a good policy to pay some employees more than others in the same class unless there is a very good reason for it. Mr. Tucker said the teachers market is one thing, and then the classified employee salaries are based on a different = market. He said the Board could leave the increase for teachers at 4.2 percent, and then have all classified employees at 3.9 percent; it would be less of a savings. He said the AEA did its own survey of the market group, and on an average it was about 4.2 percent, but that survey was only of the school systems. Mr. Bowerman said he does not believe the Board can consider the 4.2 percent unless it also raises General Government classified. Mr. Dorrier said he believes that consistency needs to be maintained among salaries. Mr. Bowerman suggested that of the $1,365,088 shown as the remaining one-time revenues for non-recurring needs, it be divided 60/40 as other revenues are divided, keeping the 40 percent for General Government as a separate fund. That would amount to $819,052 for the Schools if the Board decides that March 21, 2001 (Adjourned Meeting) (Page 10) it will use one-time funds for operating needs to reduce the $1.5 million deficit. Then, General Government would keep $546,035 as a one-time non-recurring revenue in reserve for one-time costs. Mr. Martin said that is a good topic for conversation. He said the Board, last Monday, added a bunch of recurring expenses to this proposed budget. The Board could use what Mr. Bowerman is suggesting as a starting point, or it could also find recurring money that could be freed up. Ms. Thomas said the one cent could be divided 60/40 which would give $285,600 for General Government additional initiatives, and the rest, $428,400 could go to the schools. The Board would have to recognize that next year $840,000 would be needed for the opening of the Baker-Butler School, and that question would not have been addressed. Mr. Bowerman said the Board has tried to use one-time funds for one-time needs, and if the Board intends to diverge from that because there are needs in the schools, he does not want to do the same thing for General Government. Mr. Tucker suggested the Board go back through its list. Mr. Martin said he heard the Sheriff say he was happy with his budget. Mr. Tucker said he understands comments made by Board members on Monday about the zoning inspectors, but he thinks it would be better to just hire two as staff initially recommended, and then discuss the question again during next years budget cycle. Mr. Bowerman said = he has heard complaints from the private sector that inspections are delayed because there are not enough people to do them timely. Mr. Tucker said he did not mean to start discussion of the list of initiatives out of order. He suggested that the Board start discussion with the first item at the top of the list. __________ Ms. Thomas said the first item is that of additional storage for the Registrars Office. Mr. Tucker = said he has nothing new to add to this item. __________ Ms. Thomas said the item for the Sheriff will be removed ($34,464). There was disagreement voiced. __________ Ms. Thomas asked about the thermal imaging camera. Mr. Tucker said the items for public safety are coming from non-recurring funds. It was agreed that these items would remain. __________ The next category was that of Human Development. Mr. Martin agreed with the expenditure for Social Services On-Call Compensation Program. Ms. Thomas said that department is having retention problems and she believes this program will help with morale problems. __________ Ms. Thomas asked about the additional hours for a planner with the Commission on Children and Families. Ms. Humphris agreed with this expense. __________ Next was a request from PVCC. Ms. White said she had some additional information about this request (she handed out a sheet of information). She said most of the money is requested for an Extended Learning program. Ms. Lori Spencer, Executive Assistant, said her research on PVCC from the early 70's on showed that the localities have supported only maintenance and facility maintenance. When PVCC moves into this extended learning program, the request is now to also support programs. It is a small amount of money, but it is a change in history because it will be a move into supporting programs. She said the staffs in Nelson, Fluvanna and Louisa counties have already recommended full-funding of the PVCC request. They have, therefore, funded the extended learning program. She added that in 1974 Albemarle County supported PVCC with $4065. In order to fund the same amount in 2001 dollars it would be a total of $14,495. Ms. White said if the Board wants to fund more for grounds and maintenance, then the amount should be increased by $7900. If the Board wants to recognize the Extended Learning Institute, then the Board would fund PVCCs total request of $11,455. = Mr. Dorrier said PVCC has talked about setting up a long distance learning center in Scottsville. He thinks this is a very good idea. Ms. Humphris said she thinks that it is an excellent program, but the philosophy of what the localities are to pay for is the question. She said that once the Board steps over that boundary, the State will expect it to pick up more and more of the educational funding. She believes the Board should stay with its obligation for maintenance, and maybe increase that amount by a small percentage. She does not think the Board should start to fund programs at PVCC because that would be a never ending headache. Mr. Martin said that in the Comprehensive Plan are some statements about economic March 21, 2001 (Adjourned Meeting) (Page 11) development. One of the things talked about is helping to educate the population and moving people into better paying jobs. This is a program that can do that. It could be singled out as one program to support, rather than supporting programs. Ms. Thomas asked how the Board can evaluate this program. All human resource proposals normally go through an extensive evaluation process. This is an educational program, and how will it be decided that it is better offered through PVCC than through CATEC, or courses at Albemarle High School. Mr. Dorrier said he has confidence in the Countys appointees to the PVCC Board of Directors. = They are recommending this for a small amount of money. He does not think of it so much as a program, but rather as an extension of PVCC to the outlying areas. Ms. Humphris asked if there is an initiative for this type of thing in the Venture Program. Ms. Thomas said Albemarle County is not putting any money into it, but there is money coming from the State for the Venture, and Albemarle County is part of selecting where that money will be used. Money is being put into the Extended Learning Institute, actually the County is cheering them along by giving them a priority. She said she would like to have the figure be $11,500, but not say it is going to the Extended Learning Institute. That frees PVCC to put other money there. Ms. Spencer said PVCC can do that. When they receive their budget from the State, they are free to program it where it is needed. Ms. Humphris asked that the figure be $11,500 for facilities and grounds maintenance. Mr. Martin said he agrees with Ms. Thomas suggestion. Ms. White asked if staff is to specify that the money should = not be used for the Extended Learning Institute. Ms. Thomas said no, just give the funds as a increase in A@ the Countys contribution; do not allocate it to anything. = Mr. Bowerman said that as far as economic development is concerned, the $210.0 million that is programmed in capital needs over the next ten years is part of the attractiveness of this community and its emphasis on trying to keep it attractive. __________ Ms. Thomas said the next item is $919 for additional operating expenses for SHE. There were no comments. __________ The next item is $10,065 for additional hours for teaching assistants in the Bright Stars Program. There were no comments. __________ For the JABA Woods Edge Rental Assistance Program, Ms. White said the program is to be shortened by two months, so it really shows a reduction of $6666. The $40,000 shown to the left of that figure is the total cost of the program, but the only amount in the calculations is the reduction. __________ Ms. White said as to the request from the Albemarle County Fair, she spoke with a representative and their shortfall is about $75,000 in one-time moneys. They have raised about one-half of that amount from private individuals, and they are involved in other fund-raising events. Mr. Dorrier asked if the Board used Tourism Funds for this item. Mr. Tucker said yes. Staff does not know what amount to recommend. A@ Mr. Martin suggested funding $1000 in one-time funds just to offer moral support. He said that might help them in their fund-raising efforts. Ms. Humphris suggested it be a one-time amount of $10,000 based on the discussion which occurred at Mondays meeting. Mr. Perkins agreed. = __________ Ms. Thomas said the question before the Board on the Gypsy Moth Program was whether the $16,840 would be deleted from the budget. Mr. Perkins said he talked with Tim Tignor who suggested that the money be left in the budget, and he will know by May or June if the funds are needed. If they are not needed, the funds wont be expended. Mr. Tucker said there may be an answer to this question by the time = the Board adopts the Annual Appropriation Ordinance. Ms. White said that was Pat Mullaneys recommendation as well. He said that there will be aerial = photography and he will have a better idea after that. Mr. Perkins said the moths hatch in April, and by May or June their impact will be known. __________ The next item is the Jeffersonian Festival. Ms. Thomas said the Lewis & Clark Festival has received some money. The Lewis & Clark Festival people and the Jeffersonian Festival people are just meeting this morning because they will be working together next fiscal year. She thinks the $3000 shown can be removed from this budget. The Board did allocate $2500 for the Lewis & Clark Festival. She thinks that amount will be sufficient for both of them. They are working together this first year, but will probably split. The festivals are only a few weeks apart this year, but next year they will be six months apart. Mr. Dorrier said he can support that suggestion. He does think that festivals add a great deal to the community, and they impact revenue and the meals tax. __________ The next set of items were listed under County General Fund. Mr. Martin said Mr. Tucker had said he would recommend $43,097 for two zoning inspectors with a hire date of January 1, 2002. Mr. Tucker March 21, 2001 (Adjourned Meeting) (Page 12) said that is correct. Ms. Thomas said the staff she has talked with are very happy about having two new planners, feeling they will be able to accomplish much more with the additional help. She is not against removing the two zoning inspector positions (there were four and that has been reduced to two, see note above) but does think that by next year the Board will have to be more pro-active. __________ Ms. Thomas said the SBDC Report was a suggestion by Mr. Dorrier. Mr. Dorrier said a consultant will be hired to look at technology opportunities in the community and come up with a plan. The idea was to make sure that Albemarle County had a voice in technology in the community. He defers to Mr. Bowerman who is already involved in technology. He saw this as a new direction and an opportunity for the County to get involved. He knows Ms. Humphris has strong feelings about this. Ms. Humphris said there are many technology projects which are already up and running and which do the same thing. She believes that is enough, and she said the other day that the Board has been very careful in the past not to spend taxpayers dollars on things which belong in the purview of the business community. Mr. Bowerman said if it is something that needs doing, it will be done. Mr. Dorrier said if that is the case, he will withdraw his request. __________ Mr. Martin said Mr. Bowermans original suggestion was to transfer 60 percent of the remaining = one-time funds (now standing at $1,417,928) to the School Division, or an amount of $850,756. Mr. Martin said he thought Ms. Thomas had suggested transferring to the schools 60 percent of the one-cent tax rate reserve of $714,000 or $428,000. Adding the $123,561 in recurring funds from the change in the Sheriffs request, and dropping two zoning inspector positions, is close to the total of the = Unfunded School Board Initiatives. Mr. Tucker said the total of recurring funds, after all the changes the A@ Board just made, is about $777,000 which includes the changes made for the Sheriff and the zoning inspector positions. That is the number that would be used for the 60/40 split. Mr. Martin said that does not do what the Board had been discussing. They were talking about the one-time funds which were at $819,000 but are now at $857,056. Then, Ms. Thomas suggested doing a 60/40 split on the one-cent which would be $428,000. Mr. Perkins asked if the Board is going to throw away that one cent and not have money to open the Baker-Butler School. Mr. Martin said they would still have 40 percent. Mr. Perkins said if it is going to cost that much to open the school, why does the Board not keep that money. The School Board already has positions for a principal and office clerk in their budget for FY 02. He said for FY 01 the schools had >> fewer students than projected, but the Board did not get any money back from that change. The Schools spent that money. They need to be accountable for some of this difference. Ms. Thomas said because they had fewer students is the reason they had a Fund Balance. Mr. Perkins said they used that money for other initiatives. Mr. Martin said they said it gave them a way to cover additional fuel and electricity costs. Mr. Bowerman said he is less convinced about the one penny than he is about the one-time funds. He is convinced that the one penny in recurring funds will end up in the schools. The Board would have it in reserve for the opening of that school. Mr. Perkins said the Board needs to consider the taxpayers and the kind of reassessments occurring. There have been many job losses in this community. The Board needs to think about the citizens and their needs. Ms. Thomas said that is why the Board is not considering a tax rate increase. Mr. Perkins said the increases proposed in this budget are very generous. Whether or not one accepts the Compensation Study, it is a very generous increase, and it has all been done based on the shortage of teachers. He asked if everybodys salary should be raised just because there is a shortage of teachers. In = the private sector, there have not been those types of increases. In the community, there have been many job losses. The Board is basically talking about an eight percent increase for County employees. Mr. Dorrier said he thought this was being done because of the new Compensation Study, and is a one-time increase. Mr. Perkins said it is a continuing increase every year unless a new study is done which decreases salaries. Mr. Tucker said it will be a vested salary increase and uses recurring moneys. Mr. Perkins said he had asked the person who presented the study two questions. One was the meaning of job security, and he was told that term no longer had any meaning. His other question had to do with A@ mid-point. He said he has been at less than mid-point in the same job for over 20 years. Either the A@ private sector is very different from the public sector, or something is wrong. He has never gotten a bad review in his job. Mr. Martin asked Mr. Perkins conclusion. Mr. Perkins said he questions how good this study is. = There were 17 County employees as members of the Compensation Committee. He wonders if the committee had been made up of all private citizens if there would have been a different outcome. Mr. Martin said he was a member of the Committee along with Mr. Paul Wright, Mr. Ken Boyd and Mr. Dorrier. He, personally, made sure that the most conservative view that could possibly be presented, had a fair and March 21, 2001 (Adjourned Meeting) (Page 13) honest hearing and that everybody moved forward in complete agreement. Mr. Dorrier said the question is whether or not the Committee agreed on the 4.2 percent. Ms. Thomas said that is not the question. The Board received a memorandum saying that was not the question, they did not all agree with that recommendation. Mr. Martin said Mr. Tucker had chosen 3.9 percent because it was a mid-point. The School System chose 4.2 percent because it was at the upper end. He recommends that the Board use a smaller number for the School System, but he does not think anybody can question the report of the Compensation Committee. The only question there can be is the number the Superintendent chose and the number the County Executive chose. Everything else has been agreed to. Ms. Humphris said it made sense to her when the County Executive chose the midpoint between the two numbers. She does not know how else it should have been done. She asked Mr. Tucker to give the Board a revised figure if it kept the $714,000 for the opening of the new school. Mr. Tucker said $850,000 is 60 percent of the one-time revenues as suggested by Mr. Bowerman. If the Board also took 60 percent of the recurring money, that would be $428,000. Mr. Martin said he thinks the Board must give the Schools some of the recurring moneys. He said Mr. Bowermans suggestion was to give 60 percent of the recurring moneys saved on the Sheriffs request == and the two zoning inspector positions, or $123,000. Mr. Bowerman said he kept the one-cent separate. Mr. Martin said Mr. Bowerman split the one-time moneys by 60/40 and came up with a figure of $857,056. Mr. Bowerman said that is correct. Mr. Martin said if the $123,000 is added to that figure of recurring moneys, it is almost $1.0 million. Mr. Bowerman said this Board has always had the responsibility for funding both capital and operations. The School Board has never wanted to take on the responsibility for capital. Since the Board has both responsibilities, he strongly feels the remainder of the non-recurring funds should be kept as a reserve for General Government capital use. Ms. Thomas asked if Mr. Bowerman was talking about the one penny. Mr. Bowerman said no. A@ He is saying 60 percent of the one-time funds. His justification is that this Board has the responsibility to deal with both sides of the equation and because of that he thought about the 60/40. He is adamant that the 40 percent not be used to operate the schools. Mr. Martin said 60 percent of the new amount of one-time moneys available after the changes made today is $1.417 million. Sixty percent of that number is $857,756. Then if the $123,000 just deducted from the Sheriff and Zoning is added, that makes a total of $980,756. Ms. Thomas asked for a total of all additional initiatives being funded, without the Schools. Mr. Tucker said that is $146,000 and it comes from the recurring moneys. He said the Board is trying to stay as close as it can to cover the costs, but still keep the recurring money, if possible, to fund the opening of the Baker-Butler School. This time next year, the Board will be working on a budget that will affect the opening of the school. Mr. Martin said the Board also reduced the percentage of increase for the School classified employees. The School Board may decide not to go along with that reduction. Mr. Perkins said there is $113,000 in the School Boards budget for the principal and clerk for the new school. Is the $840,000 = above that? Mr. Tucker said because they are hiring those positions in the next fiscal year, he believes that figure is included in the $840,000. There are some moneys for the initial opening of that school in this request. (Note: Mr. Bowerman left the room at 4:55 p.m.) Mr. Dorrier said he thinks the Board should just give the Schools the money and not tell them how to spend it. Ms. Thomas said traditionally that is what the Board does. By law, the Board could have a small amount of say. (Note: Ms. Thomas said the Board would take a recess while the staff worked on a final figure. At 4:58 p.m., the Board recessed, and then reconvened at 5:15 p.m. with Mr. Bowerman present at this time.) __________ Ms. Thomas asked Mr. Tucker to explain what had been done to this point. Mr. Tucker said the 60/40 split of One-time Revenues equals $850,756.80, and then there is the $123,000 in recurring funds from the initiatives which were eliminated today. Subtracting those figures from the amount of the Unfunded School Board Initiatives, leaves a balance of $587,470 unfunded. That leaves the Board a reserve of $654,657 from recurring revenues (which is a little less than the one cent the Board was trying to retain), and $567,171 in anticipated One-time Revenues for non-recurring needs. If, at the end of June 30, the revenues anticipated are not received, the amount of transfer to the School Division would have to be adjusted accordingly. Ms. White reminded the Board that in giving the Schools one-time moneys, she assumes the moneys will be used for recurring expenses. Those expenses will repeat themselves next year, so the $800,000 will have to be made up somehow. Mr. Bowerman said there should be a letter sent from the Chairman if that is what the Board does. Mr. Perkins asked if there should be some instructions for them if their enrollments dont meet projections, that the money not be spent. Mr. Bowerman said their shortfall is = in operational needs, so he believes that is how the money will be spent. He thinks they need to understand that these are non-recurring funds, and this may never happen again. March 21, 2001 (Adjourned Meeting) (Page 14) Ms. White said it can be indicated that the money only be spent for one-time expenditures. Mr. Bowerman said they dont have to follow what this Board says. Ms. Thomas said they do not have that = many one-time expenses. They cant use it for just one-time expenses. Mr. Bowerman said they could = retain the funds and use them in the next year. He said this Board is charged with funding both operating and capital, so in making his recommendation he was trying to find a rational way to justify the Board using a portion of those one-time revenues to fund the operating needs of the schools. The Board can do that for FY 02, but does not have to do that again. Mr. Tucker said he asked the Schools about their non-recurring > expenses (school buses, textbooks, mobile classrooms) before he made the recommendation for the $650,000 transfer. Ms. Thomas said the Board is not being helpful if it gives this money and says it can only be used for non-recurring expenses. She said they are going to use this money for recurring expenditures, and this Board will have to realize what this will do to the budget the following year. Mr. Perkins said the Board needs to keep in mind that FY 02 is a reassessment year, while FY 03 is not. Mr. Tucker said the School >> System will have a huge expenditure, maybe as much as $1.0 million, for school buses in FY 03. That is in > addition to the $680,000 to be spent for school buses in FY 02. > Ms. Thomas said she does want not any Board members to leave this meeting today with an unanswered question. She believes that is what happened last year. Ms. Humphris said she would like to leave today with a final print-out of the Boards decision since = she will be meeting with a School Board member tomorrow. Mr. Tucker said copies can be made for all members as soon as this meeting is over. Mr. Perkins said he had a question about the item listed as health and dental benefits which talks A@ about the savings that will occur, yet it says these costs were $2735 for FY 01, but in FY 02 that amounts >> goes up to $3143. He asked how that is a savings. Ms. White said the $3143 was what was budgeted, but it was then reduced to $3006. Mr. Tucker said the $3143 is what was originally in the budget recommendation, but then they negotiated and got that number reduced. Ms. White said an 18 percent increase was budgeted, but then it was found that there were fewer claims, so that amount was reduced. It is still an increase in cost for FY 02, but the increase was less than originally projected. > Ms. Thomas said the Board does not need a vote to set this budget for the public hearing. Mr. Bowerman asked the amount of the tax rate. Mr. Tucker said it is $0.76/$100 on real property. In order to do what the Board wants to do, that rate will need to be maintained. Mr. Bowerman said there are really a couple of tax rates. One for the first half of 2001, and one for the second half of 2001. Mr. Davis said the tax rate is set for the Calendar Year so the Board had indicated the rate would be $0.72/100 for the first half of Calendar Year 2001, and at $0.76/$100 for the second half of Calendar Year 2001. Motion was then offered by Mr. Martin to advertise tax rates for Calendar Year 2001 as follows: for real property the rate will be $0.72/100 for the first six months of Calendar Year 2001, and $0.76/$100 for the second six months of Calendar Year 2001; the personal property tax rate for Calendar Year 2001 will be $4.28/$100; and for machinery and tools $4.28/$100. The motion was seconded by Mr. Bowerman. Roll was called, and the motion carried by the following recorded vote: AYES: Mr. Bowerman, Mr. Dorrier. Ms. Humphris, Mr. Martin, Mr. Perkins and Ms. Thomas. NAYS: None. _______________ Agenda Item No. 3. Other Matters Not Listed on the Agenda from the Board. There were no other matters brought up at this time. _______________ Agenda Item No. 4. Adjourn. With no further business to come before the Board, the meeting was adjourned at 5:26 p.m. ________________________________________ Chairman Approved by the Board of County Supervisors Date: 09/19/2001 Initials: LAB