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HomeMy WebLinkAbout1996-09-16 adjSeptember 16, 1996 (Adjourned Meeting) (Page 1) A joint meeting of the Board of Supervisors and School Board of Albe- marle County, Virginia, was held on September 16, 1996, beginning at 5:00 p.m., in Room 235, County Office Building, McIntire Road, Charlottesville, Virginia. The Board of Supervisors' meeting was adjourned from September 11, 1996. BOARD OF SUPERVISORS PRESENT: Mr. David P. Bowerman, Mrs. Charlotte Y. Humphris, Mr. Walter F. Perkins and Mrs. Sally H. Thomas. ABSENT: Mr. Forrest R. Marshall, Jr., and Mr. Charles S. Martin. SCHOOL BOARD PRESENT: Mr. John E. Baker, Mr. R. Madison Cummings, Jr., Mrs. Susan C. Gallion, Mr. Stephen H. Koleszar (arrived at 5:29 p.m.), Mrs. Karen L. Powell and Dr. Charles M. Ward. ABSENT: Mr. Jeffrey D. Joseph. OFFICERS PRESENT: County Executive, Mr. Robert W. Tucker, Jr.; Deputy County Executive, Mr. Richard E. Huff, II; Assistant County Executive, Mrs. Roxanne W. White; County Attorney, Mr. Larry W. Davis; Superintendent of Schools, Dr. Kevin C. Castner; Deputy County Attorney, Mr. Mark Trank; Assistant Superintendent for Instruction, Ms. Diane T. Ippolito; and Assistant Superintendent for Support Services, Mr. Frank E. Morgan. Agenda Item.No. 1. The meeting was called to order at 5:00 p.m., by the Chairman of the Board, Mrs. Humphris and Chairman of the School Board, Mrs. Powell. Agenda Item No. 2a. Overview of Long Range Fiscal Planning (including [1] current financial position/policies; [2] future revenue and expenditure projections and [3] state/local comparisons of revenues and expenditures. Item No. 2b. Identification of Issues for Future Discussion. Item No. 2c. Identification of Additional Information Required. Ms. White said Board members have been provided with a copy of "Albemarle County, Virginia, Financial Condition Evaluation: Fiscal Years 1991-1997" This information is an evaluation of the County's financial position. Staff plans to update this information yearly. These are accepted financial trend indicators. The second document which is a Five Year Forecast for Fiscal Years 1998-2002 is the basis of her presentation. Ms. White then proceeded with a slide presentation which highlighted the County's financial condition and five year forecast. The presentation included an overview of revenues, sources of revenue, total County expenditures, per capita cost comparisons, capital projects and technology projects. Ms. White said when revenues and expenditures are projected, there are a lot of unknowns in the last two years. As economic conditions, policies, state revenues, etc., change, the Board should expect revisions to the projections. Some suggestions to address the shortfalls in FY 1998-2001 are: reduce service levels; defer/eliminate capital projects; use Fund Balance for one- time General Government Virginia Retirement System (VRS) payment; reduce capital transfer; and use more borrowed funds for capital maintenance and repair projects. Some possible long term solutions are: increase student/ teacher ratio; increase number of pupils per classroom; raise revenues (meals tax, tax increase-general property taxes, increase fees/charges for services, land use policy changes); lease/purchase buses and taxing authority for the School Board. Ms. White said these are some of the issues staff have set out for future discussion. (Mr. Koleszar arrived at 5:29 p.m.) Mr. Tucker said staff is open to any suggestions or scenarios Board members would like to explore for long term solutions. He anticipates scheduling another joint meeting within the next few weeks to discuss addressing the potential deficit. Dr. Castner commented that School personnel projected an increase of 200 students, and they exceeded the projections by about eight students. Whoever has been doing the numbers for the projections has been accurate. Unfortun- ately, next year the School Division will be in the same position. It again looks like there will be 200 or more additional new students. Mrs. Humphris asked why state projections show Albemarle as growing only one percent in the year 2000 when it has been growing at a rate of more than two percent for a long period of time. Ms. White said she thinks it is an old projection. The number was projected a long time ago for the year 2000 September 16, 1996 (Adjourned Meeting) (Page 2) ooo . and it has not changed. Mrs. Humphris asked if the County is required legally to use those projections. Ms. White said the staff can make its own projec- tions, but it felt safe using the official projections. There are no other projections to use. Mrs. Thomas commented that it was her understanding Albemarle's growth rate had started to Slow down. Greene and Fluvanna are the fastest growing counties in the region. She assumes that if this is accurate, it is because land values are slightly more affordable in the outlying counties. Mr. Baker asked how the rate of growth is determined. Ms. White said it is based on general overall county-wide population and the School Division's growth is based on projected enrollment. Mrs. Thomas asked how the projection for the decrease in State and federal funding takes into account the increasing trend to give more responsibilities and fewer dollars to the localities. She asked if that was factored in because it would be a lot of guessing at this point. Ms. White said the Department of Finance looks at trend analysis; they~do not think state revenues will increase for general government. In addition there have been some significant increases in the past five years that are not actual dollars, i.e., the recordation tax, payment of up-front dosts and expenditures that are matched. Mrs. Gallion a~ked why real estate revenue are projected to decrease. Ms. White said construction has remained about the same, but reassessments are less. In 1992 the r~assessment increase was 22 percent, in 1994 it was 11 percent and in 1996 it was five percent. That is happening state-wide, not just in Albemarle County. The dollars are based on the reassessment, not new construction. Referring to p~ssible solutions, Mr. Bowerman said he does not think taxing authority for!School Boards is a solution. It is not a different way to deal with the problem, only a change in who does. Mrs. Humphris suggested eliminating that as a possible solution. Mr. Cummings said he does not feel comfortable with reducing the service level or deferring/eliminating capital projects as a possible solution and would to eliminate them. Dr. Ward said he would like also like for the School Division to consi- der using the Fund Balance for a one-time VRS payment. Mrs. Powell said the School Division does not have that option. Mr. Tucker said the payment for General Government ii much lower than the that for the School Division. The School Division's islabout $400,000 each year; after the first year, General Government's is only~about $60,000 per year. Mrs. Humphris Said she thinks the Boards need to get all available information on all the options instead of eliminating certain ones at this time. Mr. Cummings Said he does not feel comfortable with either of those suggestions as short term solutions, but he is willing to wait until the Boards have all the information. Mrs. Humphris asked if anyone had any ideas to add to the short or long term lists of solutions. Mrs. Thomas suggested raising the transient occupancy tax from two percent to five percent. Dr. Castner suggested as a long term solution t6 revisit changing bus schedules. Mrs. Thomas said this option depends on wh&t happens in the General Assembly, but suggested discussing the income tax piggyback. Dr. Castner said for discussion purposes the first two options can be merged since they are basically the same thing. He suggested renaming them to "increase staffing ratios" Mr. Baker asked why the Boards would entertain as a possible long term solution increasing Student/teacher ratio or increasing the number of pupils in the classroom. The parameters are 1998-2001. If this is the "hiccup" period, would the School Division adjust for that time and then revert back to a different staffing pattern of teacher/student ratio. He thinks the Boards should address the budgetary implications and not start tampering with the heart of what this sGhool division has been trying to do for so many years. Mr. Koleszar said during the current fiscal year, the School Board used monies from unused f~nd balances. He asked if some of those reserves are available as a short term solution. Mr. Tucker said those were one time monies for one time expenses. Mrs. Powell asked if the tax rate is established annually. Mrs. Humphris replied "yes". Mrs. Powell commented that it is possible to increase the rate to cover these needs and then reduce it after the time period. Mr. Tucker said that is one way of looking at it, and if the projections are accurate, there will be a surplus in the year 2002. Mrs. Powell asked about the income tax proposal. Mr. Bowerman said Delegate Van Yahres introduced a bill for a local option income tax. His September 16, 1996 (Adjourned Meeting) (Page 3) 000 40 understanding is that if it were to raise, for example, $5.0 million, the locality would reduce its real estate taxes by $5.0 million. This bill proposes to take the burden off the property owner and puts it more on income. The question is if it is revenue neutral, then how does a locality get future increases. Mrs. Thomas commented that Delegate Van Yahres has become more flexible in his proposal and his staff is still working on the language. Mr. Perkins asked what kind of land use policy changes are being suggested. Mrs. White said there are no particular policy suggestions, just look at whether there are different ways to defer land use tax such as elimi- nating one of the categories. Item No. 2d. Scheduling of Future Meetings. Mr. Tucker suggested the two Boards hold its next joint meeting on October 14th, at 4:30 p.m., prior to the School Board's regular night meeting. Board members concurred with the meeting time. Mr. Baker asked if it was possible for the Superintendent to put together a presentation on what the School Division has done this year and some of the School Board's goals for the next meeting. He thinks that might help with some of the thinking for the next meeting. Dr. Castner said he could provide something for the Supervisors to review and if they have any questions, they can be addressed at the meeting. Mr. Cummings said he would like to get as much information as possible and discuss the meals tax issue at the next meeting. He thinks a meals tax makes good sense because a significant percentage of the tax comes from outside of the community. Item No. 2e. QUIP Video. Mr. Tucker said this is a video staff put together with the help of some professionals. The video will be used for new employee orientation to explain the QUIP process. Non-Agenda. Mrs. Humphris said the Board had asked staff to develop a resolution in appreciation of personnel who worked during Hurricane Fran. She then read the proposed resolution. Motion was offered by Mrs. Thomas, seconded by Mr. Bowerman, to adopt the following resolution in appreciation of personnel who worked beyond the call of duty during and after Hurricane Fran. Roll was called and the motion carried by the following recorded vote: AYES: NAYS: ABSENT: Mr. Perkins, Mrs. Thomas Mr. Bowerman and Mrs. Humphris. None. Mr. Marshall and Mr. Martin. (The adopted resolution is set out below:) WHEREAS, Albemarle County was inundated on September 5 and September 6, 1996, by approximately seven inches of rain along with heavy winds from Hurricane Fran; and WI~EREAS, these severe weather conditions played havoc on the County causing widespread flooding, coupled with a loss of electric power to thousands of citizens; and W~EREAS, we, the members of the Albemarle Board of County Supervisors know that the community could not long survive without the efforts of so many dedicated people helping during emergency times. NOW, THEREFORE, on behalf of all the citizens of Albe- marle County, Virginia, we do hereby express wholehearted thanks and appreciation to those persons who worked during this trying time, often above and beyond the call of normal duty; particularly to the members of our volunteer fire and rescue squads, to the personnel of Virginia Power Company, the Albemarle/Charlottes- ville/University of Virginia Emergency Operations Center, the Albemarle County Police Department, the County Parks and Recre- ation Department, and the Virginia Department of Transportation. AND, FURTHER RESOLVED that a copy of this resolution be spread in the minutes of the Board in order that the official records of the County will show the generosity of these people. Approved by Board Initials~ September 16, 1996 (Adjourned Meeting) (Page 4) At 6:25 p.m., motion was made by Mr. Bowerman, seconded by Mr. Perkins, that the Board adjourn into executive session pursuant to Section 2.1-344(A) of the Code of Virginia under subsection (7) to consult with legal counsel and staff regarding specific legal matters relating to reversion. Roll was called and the motion carried by the following recorded vote: AYES: Mr. Perkins, Mrs. Thomas, Mr. Bowerman and Mrs. Humphris, NAYS: None. ABSENT: Mr. Marshall and Mr. Martin. At 6:26 p.m., motion was made by Mrs. Gallion, seconded by Mr. Cummings, for the School Board to adjourn. On a voice call vote, all Board members voted aye. Certify Executive Session: The Board of Supervisors reconvened into open session at 7:45 p.m. Motion was made by Mr. Bowerman to certify by a recorded Vote that to the best of each Board member's knowledge only public business matters lawfully exempted from the open meeting requirements of the Virginia Freedom of Information Act and identified in the motion authorizing the executive session were heard, discussed or considered in the executive session. The motion was seconded by Mrs. Thomas. Roll was called and the motion carried by the following recorded vote: AYES: NAYS: ABSENT: Mr. Perkins, Mrs. Thomas, Mr. Bowerman and Mrs. Humphris None. Mr. Marshall and Mr. Martin. Agenda Item No. 3. Adjourn to September 18, 1996, 7:00 p.m., for joint meeting with Charlottesville City Council, the Rivanna Solid Waste Authority Board of Directors and the Solid Waste Task Force. Motion was immediately made by Mr. Bowerman, seconded by Mrs. Thomas, to adjourn to September 18, 1996, at 7:00 p.m., for a joint meeting with Charlottesville City Council, the Rivanna Solid Waste Authority Board of Directors and the Solid Waste Task Force. Roll was called and the motion carried by the following recorded vote: AYES: NAYS: ABSENT: Mr. Perkins, Mrs. Thomas, Mr. Bowerman and Mrs. Humphris None. Mr. Marshall and Mr. Martin. Ch~rman