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2003-03-19 AfternoonMarch 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 1) An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held on March 19, 2003, beginning at 1:00 p.m. in Room 235, County Office Building, Mclntire Road, Charlottesville, Virginia. This meeting was adjourned from March 17, 2003. PRESENT: Mr. David P. Bowerman, Mr. Lindsay G. Dorrier, Jr., Mr. Charles S. Martin, Mr. Dennis S. Rooker and Ms. Sally H. Thomas. ABSENT: Mr. Walter F. Perkins. OFFICERS PRESENT: County Executive, Robert W. Tucker, Jr., County Attorney, Larry W. Davis, and Clerk, Ella W. Carey. Also present were: Assistant County Executives Tom Foley and Roxanne White. The meeting was called to order at 1:00 p.m. by the Chairman, Mr. Dorrier. Work Session: FY 2003-04 COUNTY BUDGET: The first budget to be discussed was that of the School Board. Present were Ms. Diantha McKeel, Chair, Dr. Charles Ward, Vice-Chair, and Dr. Kevin Castner, Superintendent. Ms. McKeel said the Superintendent submits a request to the School Board and in turn it submits a request to the Supervisors. She said the School Board would balance its budget in April when it knows how much money there is to work with. Ms. McKeel and Dr. Ward then made a visual presentation of the School Board's request (copies of all slides are on file in the Clerk's Office). Dr. Ward said as to teacher salaries, Albemarle was ranked 42nd in the State for FY 2002-03. The County is losing ground. Mr. Dorrier asked if the increments money wise in salaries between the different school systems are small or large. Dr. Ward said he does not know what Mr. Dorrier would consider to be a small or a large difference. Dr. Ward said that this year Louisa County is asking for a 6.5 percent increase, Fluvanna County is asking for a 6.1 percent increase, and Charlottesville City is asking for a 3.5 percent increase. Albemarle will be hiring more than 120 people this year and it must also take care of its classified staff. He noted that in hiring a replacement for the principal at Monticello High School, they received only 15 applications from a nationwide search. Mr. Rooker asked if the same holds true for teachers. Dr. Castner said there are fewer applications being received for teaching positions than in the past. However, this situation is not unique to Albemarle. Ms. McKeel said it is hard to find teachers for certain areas, math, science, special education, etc. Mr. Rooker said he has talked with several outstanding candidates for jobs in Albemarle but there were unable to get a job. He would be interested in seeing statistics on how many applicants there are for the different jobs each year. Dr. Castner said Mr. Rooker's candidates might be seeking jobs in something like elementary education where there are six or more applicants per job vacancy, whereas there are some areas where they do not even get one job application. Ms. McKeel said that currently about 90 percent of the schools are accredited. The School Board would prefer that all of the schools are accredited, and the achievement gaps are being closed in certain areas. She said there are currently 10 schools that are implementing the Design 2004 Model, and hopefully all schools will be able to do this. She said 23 schools are fully accredited, and SAT scores are 73 points above the national average. Also, 49.8 percent of all graduating seniors have completed one advanced placement course, there has been a strong performance on the Stanford 9 test, and the annual dropout rate has gone below one percent. Another example is that the percentage of second graders reading on or above grade level in the last six years has increased from 65 percent to 87 percent. Mr. Dorrier asked the percentage of graduating seniors who go on to college. Ms. McKeel said about 70 percent of the students take the SAT tests. Dr. Castner said 80 percent of those go on to two or four year schools. Ms. McKeel said the School System still faces many challenges. Continuing to close performance gaps in many areas and levels; ensuring that students earn verified credits necessary for graduation; increasing the number of students performing at high levels of achievement; complying with the "No Child Left Behind" act; and, implementing the Design 2004 Model. He said if the Division is to go beyond the SOLs and the No Child Left Behind program, it will do so by getting into new areas. They are expanding their expectations. Knowledge is one thing that can be expected of the students, basic things such as reading, writing and arithmetic. But skills are one thing that cannot be done with just knowledge. It is important that the student be able to pick up on concepts. When you start building on concepts, it is possible to achieve a deep understanding. The way to do that is to have the students be inquisitive. Dr. Ward said to keep the challenge before the students, the curriculum must be changed so their knowledge, skills and concepts can be applied in real life situations. He said Design 2004 is getting past the novelty of the computer and making it a tool of communication/publication. He said there is knowledge building/research. About 75 percent of the students have Internet access, and 80 percent of them have computers. They use it as a research tool. Then there is construction/concept building and problem March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 2) solving/experimentation. Dr. Castner said when a teacher is teaching for an SOL test, they are teaching for something with multiple choices, but that is not the way something will be applied in real life. So teachers are not just using textbooks, but are getting into web-based learning. But, web-based learning changes every 24 hours and that changes social studies completely. In turn, that will affect the textbooks and everything being used by these students. They want to get into portfolios and want the kids to demonstrate things such as community service projects where they get into science fair things. This is a whole different expectation. Technology makes it easier, but this is not about technology. It is about a higher level of learning. This is not going away. Too much success is being seen as it is phased in. Albemarle did not have the money to do it, but Henrico County did. Albemarle could not have kept up with staff development, so it is being phased in much more gradually. Mr. Dorrier said this seemed like something that is in the colleges today. Dr. Castner said this is happening in first and second grade classrooms. This is what you want colleges to teach. Albemarle has kids learning now the way one used to learn in college before colleges got into the lecture method. The way kids learn now is a lot different than in the past. Albemarle is trying to just keep up with that so the kids can be successful. This is not just the top students. Technology is being required for almost any job these days. Mr. Rooker asked if textbooks would be eliminated gradually. Dr. Castner said he does not think textbooks will ever be fully eliminated. But, they are limited compared to what can be found on the Web. He thinks 50 percent of the budget for textbooks should be going toward technology for web-based learning. Dr. Ward said he thinks textbooks should be eliminated. He thinks that in the future as computers become smaller and friendlier, there will be a shift. He thinks that in the future, textbooks will become a burden in the library. It is important to note the basic connections, to think critically and creatively. This knowledge is a tool. Just like the language of physics is to mathematics, one needs a basic background. There must be a technology background to get to the links. In order to communicate, there is the need for language arts. Also, the well-being of the person in terms of physical, emotional and social wellness is necessary. Ms. McKeel said the SATS, the Stanford 9 and the SOLs are all multiple choice tests. But, they expect the children to be able to think critically. Not only should they know the multiplication tables, but also should be able to work word problems. She then explained the School Board[]s budgeting process. She said the School Board and Superintendent's priorities are what drive the budget process and focus their initiatives. Every item in the funding request this year can be tied back to one of their priorities. Both the joint boards' compensation agreement and the evidence of the School Division's high performance have defined their direction. A joint committee established the Compensation process. The two boards agreed to the way to fund employee compensation. Ms. McKeel said the School Board asked the Superintendent to present a needs-based budget for this year. Mr. Dorrier asked for a definition of needs based. Ms. McKeel said the School Board and the Superintendent's priorities establish the needs of the Schools. The funding request reflects what they feel is needed in order for those priorities to go forward. They follow the State statute in the matter of budget preparation. Dr. Ward said that in previous years the School Board had submitted a list of unfinanced requirements, but this year presented a budget based on its needs. They understand the gravity of the funding issues. Ms. McKeel said they are not presenting a wish list, but a budget based on their priorities. They have to be an improving school system. Dr. Ward said growth and maintenance includes the needs of the students. Some children require special education; some have limited English proficiencies. All know how much the Comprehensive Services Act costs. The cost is now up to $1.2 million in just three years. He said operating costs such as oil and fuel continue to increase. "No Child Left Behind" is already making an impact on the budget. There are requirements that must be met in the way of teacher certification. It will also require testing in each of the grades and not just in alternate grades such as those for the SOLs. Mr. Rooker asked if that would be testing over and above the SOLs. Dr. Ward said "yes". Mr. Rooker asked who designs those tests. Dr. Castner said each state submits a plan that has to be approved by the Federal government. The tests are taken in Grades 4, 6 and 7. They will be in Language Arts and Math only. Mr. Rooker asked if the SOL tests would satisfy that requirement. Dr. Castner said "no". Ms. Thomas asked if this item is partially unfunded or totally unfunded. Ms. McKeel said it is a big unfunded mandate. They will get a little money, but she has heard twice that the Federal government slashed the original amount of money that would not have fully funded the program. Mr. Rooker asked when the program has to be fully implemented. Ms. Pam Moran said there will be field testing next year, but full implementation will occur in FY 2005-06. They anticipate testing year round. Ms. Thomas asked how much this one new program is adding to the budget. Dr. Castner said March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 3) there is no way to know that figure yet. They do expect to do a lot of on-line testing and have developed the technology to do that. They do not expect to hire trailers, as they have done in the past in which to score the tests. Dr. Ward said that in a few years, unless there are some very efficient ways of teaching students, they will be pushing the 180 days of contact time, so may have to increase the school year. These things that require testing and take away from contact time with the curriculum will create an impact on teaching throughout the year. Also, there is a high expectation of success by the citizens as was shown in the County's Citizen Survey last year. Ms. McKeel said the highest priority of the School Board is compensation. The Division's success rests with the quality of the employees the Division can attract and retain. These employees deserve strong attention in this budget. No matter how many programs are funded or how much material is bought for a classroom, that cannot replace the value of a dynamic, energetic, qualified teacher. She believes this priority for compensation applies to all County employees. She said the School Board has discussed whether to compensate employees at the median or above since their performance is above average. Ms. Thomas asked if Ms. McKeel would address comments from people at the public hearing that teachers with the most experience are unfairly compensated. Dr. Castner said the School Board used data from Human Resources they thought showed market at the top of the scale. At the end of the last year, they found the data was off market. When the scale was done this year with a 4.08 percent increase put in for teachers, they put a greater proportion of the money at the higher level. He thinks it will take a couple of years to find out if this is helping. They are noticing the gap between Albemarle and Charlottesville. If Louisa County keeps doing what it has been doing, the gap will be greater. That will have to be monitored, but the data suggests that some of the statements made at the public hearing were accurate. Ms. Thomas said she becomes frustrated at public hearings when the Supervisors are attacked for things they have nothing to do with. Certainly, how the pay is divided in the different steps is something that the Supervisors do not control. Dr. Castner said if one looked at compensation increases since 1997, Albemarle was ranked 10th among all 134 counties, and now, even after all the changes, it ranks 31st. That same thing is happening at Step 20 and at Step 30. When they chose to use the median of the market, other localities that did not use the same target have been going higher than the median. What has been found is that in order to go above the 50 percentile to catch up with a locality like Charlottesville, for teachers alone it would cost almost three-quarters of a million dollars. First, both Boards would have to decide if among the 26 school divisions used as the County's market if that is the correct target. Mr. Martin asked if Dr. Castner was saying that 100 percent of the market is the median. Dr. Castner said that is the definition of the Compensation Committee, and is what they have followed and agreed upon. Even though they are following this, it is causing the schools to get further behind it their ranking against the 134 school districts. Mr. Rooker asked about the various steps such as starting pay. When the rankings are mentioned, are they particular points along the scale? Dr. Castner said they had front-end loaded the scale, but have found that causes retention problems. This year the front end of the scale has been lowered and the upper end made somewhat higher. Their good intentions created a backlash. People were leaving after only five years of service. Mr. Rooker asked if statistics are determined by picking a specific point on the scale. Dr. Castner said if the Board wants additional information on this question, it can be furnished to them. Ms. McKeel said that last year the School Board added a stipend to the salary of those people who had been teaching 30+ years. It was $1000 for each year worked over and above 30 years. Dr. Ward said it took a long time to come up with 26 school divisions with which to be compared. That can be debated, but it is something that is traceable and something that can be documented. This is a step forward. March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 4) Ms. McKeel then listed some of the initiatives that are felt to be critical to get into the 21st Century. They include: a full-time equity and diversity specialist; completion of literacy specialist phase-in; building-based staff development; technology support for schools; technology technical staffing; and, continued implementation of Design 2004. Ms. McKeel said the School Board's funding request is $105.0+ million. The expenditure increase is $5.669 million. The revenue increase is $3.937 million. The difference if $1.732 million. She heard on the radio that that number has changed a little recently. She said the School Board knows that to reach its compensation goal, it will have to look at some issues. Ms. Thomas said if the Supervisors looked at Pages A-7 through A-9 where the initiatives are listed and totaled up the cost of compensation benefits on A-9, that totals $5.0 million. She has been focusing on those three pages because the Supervisors do not have any right to tell the School Board what it can fund (although the Supervisors could go line item by line item in approving the budget). She asked what would happen if the classified merit plan increase of 3.8 percent did not go into effect until January 2004. Ms. McKeel said compensation for classified employees has been a priority for the School Board. At this time, the School Board has not discussed how it will reach that 3.8 percent. They were presented with a needs-based budget. Dr. Castner said there is no evidence to suggest that classified employee salaries are keeping ahead of market anymore than the teachers. There is no data that would help separate the classified employee salaries from that of the teachers because nothing indicates they are more above market than what he showed. Dr. Ward said the Schools want to be out ahead on salaries. They are already ahead on the SOLs and the No Child Left Behind Program. There are things happening in the County in terms of growth (including special education needs, the CSA, English Proficiency). There are measurable priorities. The County will exceed the Adequate Year Progress that the State and Federal government requires. The School Board takes compensation needs to heart, and that is why they have come forward with this funding request. Mr. Rooker said all have seen the budget information that indicates that the revenue for other than schools is $1.0 million down from last year. The Schools revenue will be up about $4.25 million based on the new numbers. The Supervisors have things like Fire & Rescue that is unfunded by more than $2.0 million with about 79 percent of their needs being unfunded. In Scottsville they need eight more people to make certain they have seven-day a week coverage for emergency calls. That is the type of thing General Government is looking at. Obviously, there is no money in General Government to transfer over to the Schools. The Supervisors have talked about giving raises of only two percent, with 1.8 percent being deferred to January 1 to see how the revenue picture is at that time. The only way to fully fund what the School Board is asking for is an increase in taxes. He said the additional need would take nearly a three-cent increase in the tax rate. He asked if the School Board would make that recommendation. Ms. McKeel said they have not discussed that idea. They are presenting to the Supervisors what they feel is needed to meet the needs of the schools. Mr. Rooker said money is not available, and there is an arrangement whereby the School System receives 60 percent of the operating funds of the County. He said it is just playing a game when a budget is presented and the way to fund it is not discussed. Mr. Dorrier said all agree that the salaries of classified employees and teachers should reach market level. The question is "when do we get there?" That was the question when he and Mr. Martin served on the Compensation Committee that studied the whole issue. No one said it would be accomplished in just a year or so, but wanted to have it as a goal to move toward. He said the Supervisors are "stuck between a rock and a hard place" when dealing with taxes in Albemarle County. Real property assessments went up 18+ percent this year. There are people on fixed-incomes that are asking that the line on spending be held. He thinks all need to work to find a solution to the funding problem. Therefore, he proposes setting up a joint committee of the School Board and the Board of Supervisors to come up with plans for new directions in funding. An approach might be to go to the state level to see what the state can do. Also, go to the Federal level to see what they can do. Look at different alternatives at the local level. He said real property cannot bear the burden of this whole issue. Ms. McKeel said she would be interested in joining the Supervisors in such a committee. Mr. Dorrier said the County is in a box right now. The box is confining the County. The state and the Federal share is going down, and the local share is going up. Are these bodies going to sit here and take it, or fight back? Dr. Castner said members of the Schools Parent Council and the School Board can work with County government to deal with the revenue issue. There are some groups who are doing that. He would like to make one thing clear. He understands how sincere the Supervisors are taking some of the things they have listed for funding. They know there is a gap of $1.4 million. They know that if no additional money is received, they have to make cuts. They also understand that the Supervisors might have other priorities they wish to fund before putting more money into School programs. They may have to slow down some initiatives. Whatever the Compensation Committee's intention was when it talked about meeting market, ground is being lost to the County's neighbors. The Boards might have to eventually talk about that if there are no different revenue streams than at the present time. He is including fire & rescue, the police March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 5) department, etc. When you talk about the quality of life, it isn't just education. The School Board should be assisting the Supervisors with some of the shackles put upon it. The state used to pay 36 percent of the Schools expenses, and now that figure is down to 30 percent. That is $6.0 million that has been made up by taxpayers in the County. Mr. Martin said the Schools are asking for $1.7 million in additional funds, part of that being for its priorities. He mentioned that Mr. Rooker had asked if the School Board would go on record as asking for a tax increase. He said people are asking for more money and there is no more money. The Supervisors have to face the citizens. If they say the word "taxes" they will not be a member much longer. On the other hand, if they say they do not have the additional funds for the Schools, they are labeled as anti-education. He said the Supervisors "have a noose around them" because there is no way out. Ms. McKeel said the School Board had the same people come to their budget hearings. Ms. Thomas said if those people came to the School Board's hearing asking for a tax increase, the School Board could adopt a resolution asking the Supervisors to increase the tax rate. Mr. Bowerman asked if this is truly a joint operation, why will the School Board not step in and take the initiate to recommend to the Supervisors that what is needed for the Schools requirements a two cent tax rate increase? Ms. McKeel said they represent the needs of the School Division. Mr. Bowerman said that is sidestepping the issue. The School Board represents all the people and cannot just throw the Supervisors to the wolves. Ms. McKeel said she couldn't say anything because she is representing the whole School Board today. Dr. Ward said he does not mind saying that there was discussion of this idea by a couple of the School Board members, but there was no resolution adopted. Mr. Bowerman said what Mr. Rooker and Mr. Martin have said is accurate. He does not think the School Board should just walk away from the issue. Ms. McKeel said she would take the question back to the whole School Board. Dr. Ward said it is unfair to answer the question without the other five members of the School Board being present. They would probably easily give their opinion. Mr. Rooker said he believes that the needs outlined by the School Board would require a three-cent increase in taxes. That increase would raise about $2.5 million and 60 percent of that would about meet the additional need of the schools. He said the presentation today was excellent. The School System does a fabulous job, and performs beyond their compensation. He is a strong supporter of what the Schools do, and the fantastic job that has been done in a number of areas in upgrading the system on the way to "greatness". He said that there is a difficult revenue situation, and there are a lot of unmet needs. The Supervisors need to work with the School Board to help it achieve its goals while at the same time recognizing fiscal responsibility. Ms. McKeel said they know their needs and recognize that it has been a difficult year for the Supervisors. They are presenting their needs as a School Board, and they know their priorities. At some point in this process, they will have to go back and see what they can do to make their priorities a realization. Ms. Thomas said the Supervisors face the same thing in their budget. They can either increase revenues or decrease some line items in the budget. She said the School Board has been good over the last few years of listing its needs, and saying "if you give us less we will create excellence with what you are giving us." But, the Supervisors are facing a situation where the "average" household is paying about $340 more in taxes to get the same services they got last year just because of the reassessment. The Schools have some real needs which are not met in the amount of money the Supervisors can give them. If the Supervisors were to even think about raising revenues beyond that total dollar per household, it would not be that painful because a penny is about $45 more in a total tax payment. But, conventional wisdom says nobody does that and gets reelected. The School Board is either saying the Supervisors are not supporting the schools adequately, or it will join the Supervisors by saying the amount is not adequate for the school system and it thinks taxpayers should pay more. She thinks all the Supervisors would like the School Board to say if that is the way it feels. Or it could say, "we will make do with what you will give us" and "we will not cast aspersions on you" for not supporting education. Mr. Bowerman suggested viewing this as a team effort. Ms. McKeel said she believes everyone present today wants the best for every department and every employee in the County. She said this is a different enough issue that all seven School Board members need to discuss it. Mr. Dorrier asked if there is any possibility of working together to look at funding sources and come up with some recommendations, or, is that a futile effort? Ms. McKeel asked if Mr. Dorrier was only referring to state revenues. Mr. Dorrier said he is talking about everything, Federal, state and local. Ms. McKeel said she does not think it would help in this process. Mr. Dorrier said that every year the Supervisors find themselves in the same fix. Ms. McKeel said the Parent Council has said the same thing, and they would like to help. Mr. Rooker said there are many who lobby on behalf of counties at the state level, and Ms. Thomas has spent a great deal of time doing so but every proposal that went before the Legislature to increase March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 6) revenue raising categories was either defeated, or not even seriously considered. Even granting counties the right to tax cigarettes was not moved forward; cities have that authority. Ms. Thomas said she is a member of VACO's Finance Steering Committee. She used to chair that committee. They worked hard on this, but citizens do not join in the effort so State government regards VACO as a "rival government" as opposed to a group that has legitimacy in its requests. Other than local governments will have to come out for impact fees and a greater share of state revenues. Having local governments do this has not proved very successful. Mr. Dorrier said the auditorium was full of people at the public hearing, and they represent parents, kids, teachers, a whole gambit of things, maybe even businesses. He thinks that if that energy could be bottled, it could produce results. Dr. Ward said that as Vice-Chair of the School Board, from an administrative point of view they could use some help from County staffto help understand those numbers. Mr. Dorrier asked if staff had anything further to present concerning the Schools budget. Mr. Tucker said staff is ready to move to discussion of the Capital Improvements Program. Mr. Martin said he would like to add one more thing. There are parents and teachers who belong to all kinds of associations which have more clout with the General Assembly than this Board of Supervisors does. Maybe it is time to get some of those people in the auditorium get their groups involved. Mr. Tucker said the School Boards' Association, the VEA, the Superintendent's Association, have some influence at the General Assembly. Local government needs to share the issues it deals with every year. The experience has been that the General Assembly listens more to these people than to supervisors. Ms. Thomas said she misspoke a minute ago. The average annual increase from one penny added to a tax bill would be $22.50 for a year. At this point in the meeting (2:25 p.m.), the Board recessed, and reconvened at 2:34 p.m. Ms. Roxanne White was present to discuss the Capital Improvements budget. She said the CIP budget has been incorporated into the regular Operating budget in an effort to get both budgets together in one financial plan. She noted that the Planning Commission saw this budget on March 11. They made no comments. Ms. White reminded the Board that the budget contains the five-year CIP, plus the whole ten-year Capital Needs Assessment period. The issues that drive the CIP are: general population growth; urbanization/in-fill; infrastructure; maintenance/repair projects; citizen expectations; and, long-term revenue growth. One problem that staff had to face this year was that in the CIP presented in 2002, a seven-percent revenue growth was projected throughout the life of the CIP. That amount was reduced to five percent last year when the CIP was amended. This year the revenue projections are much lower than two years ago. Ms. Thomas said she noted the School Board's five-year plan assumes a six-percent revenue growth. Ms. White said she thinks that are high. Ms. White then showed a slide reminding the Board members of the long-term capital investment strategy, which is: increase the General Fund transfer to the Capital Program each year by the rate of revenue growth; increase the annual General Fund transfer to Debt Service by the revenue growth rate; set aside an additional five percent of the operating budget's growth to the Capital Fund; and, dedicate $0.01 of the tax rate to Capital Debt Service. Ms. White said General Government projects totaling $62.139 million are recommended. These projects will utilize $39.503 million in borrowed funds. Ms. White said projects listed for the Courts are: expansion/renovation of the Juvenile Court at $5.8 million, plus some maintenance and repair projects. Mr. Rooker said this is part of the overall bond issue, and he wondered if those funds are held separately. Ms. White said all bond funds are held in the CIP Fund until used. Mr. Davis said a separate accounting of the funds must be made, but they do not have to be invested separately. For Public Safety, $9.0 million is proposed for three new fire stations and associated equipment; and, $3.6 million has been added for volunteer fire and EMS equipment (net $2.0 million). Mr. Rooker said that in light of what the Board was presented as existing needs for the firemen, he questions adding new stations. Mr. Foley said the northern station is the next one proposed to be designed next year. It will create a need for eight to 12 personnel in the year in which it is opened. It is a significant issue that must be decided. Mr. Martin said when the contract with the City expires, the County will have to provide that coverage. Mr. Rooker said it is somewhat troubling when looking at the unmet needs at existing stations. March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 7) Mr. Bowerman said that in looking at the long-term needs, a tremendous number of people are required to man these stations. Mr. Foley said there would be a need for eight to 12 personnel at the three stations. A station in the Pantops area is one of the stations in the plan, and at this time it is planned to be a joint effort with the City. Mr. Rooker said he questions whether there should be an expansion effort, rather than funding some existing operational needs. Mr. Foley said these stations are planned in areas where volunteer stations cannot meet the needs. They are planned in development areas that are not addressed at this time by volunteers. In the north station, they are working with the Earlysville Volunteer Fire Station to staff that station with the County; that will be a joint effort. None of these new stations are replacements for any volunteer stations. Mr. Dorrier asked if the Fire/Rescue Advisory Board is behind this effort. Mr. Foley said they have recommended these proposals. Ms. White mentioned that there is a need to do a five-year revenue/expenditure analysis. She said assumptions can be made about revenues, but a lot of policy decisions need to be made. Mr. Bowerman said it might be necessary to look at implementing a fire district tax. He asked if it has to be passed by referendum. Mr. Tucker said "no". He said if the Board reviewed the service areas these stations would cover, they would readily see the importance for these new stations. Ms. White said that in this category there is $1.8 million for a combined Fire/Rescue Training Center and Firing Range, and, $0.818 million for Police technology projects. Under Public Works there is an additional $2.2 million for Ivy Landfill remediation costs; $0.250 million in FY '08 to begin having recycling centers; and, $3.0 million for County Office Building maintenance/replacement which includes the COB South. Mr. Bowerman said he understands that most of what is recycled goes back into the landfill. He asked if there are still state requirements concerning recycling. Mr. Tucker said "yes". Mr. Bowerman asked if anybody is studying what is going on with recycling. Mr. Foley said in light of the earlier discussion, this is one of the projects which needs to be discussed further. Ms. Thomas said she understood Mr. Mark Graham to say that by the end of the year there should be a solid waste plan finished. Mr. Foley said having a long-term solid waste plan is a strategic objective, and recycling is a component of that plan. Mr. Tucker said the County exceeds the state requirements. The blue bag recycling program contributes only about six-tenths of one percent to the total recycling program. That is the reason it was hard to justify spending the kind of money being spent on that program. Ms. Thomas said she is in favor of recycling. The good part of this is that someone will be looking at this program. She asked if the $2.2 million is strictly for remediation. Ms. White said "yes". Ms. White said for the category of Community/Neighborhood Development, there is $1.8 million to implement neighborhood plans; $2.3 million for the Sidewalk Construction Program; $1.1 million for Transportation Improvement Program (for studies of designs and not for construction); and, $1.7 million for State Revenue-Sharing road projects, with $0.560 million for landscaping and street lights. Mr. Dorrier asked the locations of the neighborhood plans. Mr. Foley said this money is not related to the master plans, but to the old neighborhood plans. It is a minimal amount of money for sidewalks, etc. Mr. Wayne Cilimberg said the two areas covered by the old neighborhood plans are Crozet and the Pantops area. Ms. White said that for Human Development, $0.160 million is funded for site work for a new Science Building at Piedmont College, and $0.050 million for the County's annual contribution to Region Ten for its debt service on their current facility. Ms. White said for Parks and Recreation, there is $1.2 million for Athletic Field development; $8.6 million for an Urban Recreational Facility (this project will be depend on the results of a study which is about to begin); $300,000 for development of the River Access and Greenway; and, $2.8 million for a Southern Urban Area park (This park is in response to the neighborhood plan. Community parks are usually built in association with the elementary schools. This takes the place of the money that was associated with the elementary schools. There is no money in the Schools budget for the new southern elementary school for a park. The money was put into this CIP to either build on that site, or have additional money to put a park somewhere else.) Next, Ms. White listed the items for Libraries: $5.0 million is provided for a new Northside Library in FY '08; $5.4 million is provided for a new Crozet Library in FY '06 and FY '07; in FY '09 - FY '13, there is $22.8 million for a new 29 North Library, a new southern urban library and expansions/renovations at the Central Library and the Scottsville Library. Mr. Rooker asked where the new Northside Library would be located. Ms. White said that has not yet been determined. Mr. Tucker said there are several sites in mind, but nothing has been decided at this March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 8) time. Mr. Rooker asked the difference between the Northside Library and the Route 29 North Library. Ms. White said the Northside Library would replace the existing Northside facility. The study that was made recommended a new library further northward on Route 29 North. Ms. White continued with the Technology/GIS category. She said it includes $1.85 million for on-going technology upgrades; $1.5 million for a Business Key Systems upgrade (this money will be used to either enhance or replace the Financial Management System, the Human Resource, Payroll and Purchasing systems. At this time, that analysis has begun, so it is not known whether it will have to be an upgrade or a new system.); and, $0.481 million for GIS system upgrades. Ms. Thomas asked about the program which the Historic Preservation Committee talked to the Board about. Mr. Cilimberg said that Cityview software is not online at this time. Mr. Foley said it is being put into place now and should be active on July 1. Ms. White said for the Acquisition of Conservation Easements Program, $1.75 million is provided for FY '04 to FY '08 in annual tourism revenues of $0.350 million. Ms. Thomas said more money is needed for this program. She recently met with Mr. Mark Shore of the Convention Bureau. They do not feel they should bear the whole burden, and obviously this does not add up to $1.0 million a year. At this point, the County is getting a big benefit for its dollars. Albemarle is getting four times as much for each dollar as Loudoun County is getting in its program, and three times as much as Maryland got for its program. She thinks ACE needs to be supported, rather than just taking money out of the Transient Occupancy Tax. Mr. Bowerman said the Board had said it would reevaluate the program after three years and see if it wanted to put more funds in. Ms. Thomas said she thought the Board did that last year when it got a report on the ACE program. Mr. Martin said that in the beginning, the Board said that instead of putting this question out to a referendum the program should be tried first. The Board said it would put in money for a few years so people would have an educated vote as to whether they wanted to add a penny to the tax rate to continue to fund this program. He is not saying to do that, but he thinks the Board should discuss whether it would eventually do that. He told many people that is what the Board was going to do, and he feels that other Board members did likewise. Ms. Thomas said that originally she thought the way to fund ACE was the way Virginia Beach had funded its program. It turns out that is not the way to fund it. The County is paying tremendous interest for money that cannot be used immediately. The referendum for a bond is not the way to do it either. If anybody were talking about a referendum, it would be an advisory referendum. Mr. Davis said the Board has no authority to do an advisory referendum on that type of an issue. The only referendum the Board could have would be a bond referendum. A bond referendum is valid for up to ten years, although there are inefficiencies in borrowing money in increments. Ms. Thomas said the committee, which looked at this in detail, did not recommend that the program be funded through a bond. Mr. Dorrier asked Ms. Sherry Buttrick how many applications are waiting for funding at this time. Ms. Buttrick said for FY 01-02, the Board ordered five properties appraised. The last couple of applications have been on the list for three years. She said that $250,000 was obtained from a State grant to do an easement for Jimmy Powell; that money funded about 75 percent of the easement. Mr. Martin asked if that was a one-time grant. Ms. Buttrick said it was an existing State program, which like everything else has no money in it this year. There is a Federal farm program that may have some money this year. Mr. Tucker said the Board has some one-time revenues. To get through the FY '04 year, the tourism revenue could be supplemented with the one-time revenues. In September when the Board does its strategic planning, it could pick up the conversation about how this might be made a permanent-funding situation. Mr. Bowerman asked if all of the money the County has put into ACE has been used. Ms. Buttrick said it is being used systematically but is not being used in the fiscal year, as it should be. Mr. Bowerman asked if not funding it in one year puts the program behind. Ms. Buttrick said it shakes the confidence potential applicants have in the program. Ms. White next mentioned the Stormwater Fund where $2.350 million was added to stormwater control projects that include drainage system mapping, drainage and basin repairs and regional basin construction. Ms. Thomas asked if the Stormwater Fund is adequately funded. Mr. Foley said it is not adequate, but is adequate for identified needs now. With the new stormwater regulations, it is anticipated that there will be greater needs in the future, plus, the County has given the public the opportunity to dedicate their stormwater facilities to it. There will be discussion about a long-term funding possibility that will be like allowing the County to charge pro-rate shares to generate revenue. That is another strategic issue, and is March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 9) one that will be discussed more fully in September. Ms. White noted that $102.364 million was requested for General Government projects. Recommended is $62.139 million, with $40.225 million left unfunded. She said delayed projects in Public Works includes: delay the start of recycling centers from FY '07 to FY '08; and, delay the Keene Landfill closure from FY '04 to FY '09. Ms. White said under Community Development, projects were requested for more money than was available so the amounts were reduced. Recreational Facilities projects were delayed from FY '04 to FY '07, and in conjunction with moving the Southern Elementary School project, the southern urban area park was delayed from FY '04 to FY '06. Ms. White said for Libraries, the new Northside Library was delayed from FY '07 to FY '09, and the Crozet Library project was moved from FY '11 back to FY '06. Ms. White said the Schools portion of this program totals $48.2 million. That includes $13.9 million for a new Southern Elementary School in FY '07. The Schools asked that $4.5 million for an increase in capacity at Monticello High School be moved forward. In this budget is $4.4 million for an addition to Henley Middle School in FY '05. Funding for maintenance and repair has been increased by $13.3 million, and $4.1 million for technology including a WAN upgrade in FY '04 and a WAN upgrade in FY '08. She noted that instructional technology was reduced by $0.704 million. It is a project that has been funded with pay-as-you-go funds instead of borrowed funds. Ms. White said several projects were to be delayed. The CIP Technical Committee told School staff that there "x" amount of dollars available for debt service, and they took that debt service availability and moved some projects. Ms. White said there were several projects that had to be delayed. The CIP Technical Committee told the Schools staff that "x" amount of dollars is available for debt service, and they took that debt service availability and moved some projects. Ms. Thomas asked if the Western Albemarle Wellness Room was moved up in priority because there were so many in-kind contributions. Mr. Tucker said he thinks that is correct. Ms. White next mentioned the County's debt. She said this plan requires $39.5 million in General Government borrowing, and $42.7 million in School VPSA loans over the five years. Debt service in FY '04 is $12.2 million and that will increase to $16.6 million in FY '08. Debt is at six percent of operations, which is below the ten-percent policy maximum. Ms. White then showed numerous slides relating to Debt Service. As to the percentage of the General Fund dedicated to Capital projects, it started in 1997 at 11.5 percent, dipped down in FY '99 and has come back up and is still at 11.5 percent. In FY '03 $550,000 for the ACE program was included from one-time moneys, also $475,000 was included for a Landfill Reserve, so that showed an increase for FY '03 which is not repeated in FY '04. Next, Ms. White discussed Pay-as-you-go vs. Debt Service. She said that during the period FY '04 to FY '08, 27 percent of the projects planned are pay-as-you-go projects. She said that is high compared to what the financial advisors recommended. Ms. Thomas said she has always been proud of the County for being able to do this. Mr. Dorrier said that is one of the reasons the County achieved a "AAA" bond rating. Ms. White then presented a slide showing "Debt Outstanding" for many localities in Virginia. She said this is one of the slides the financial advisors had. Albemarle's outstanding debt is lower than any other locality on the chart. Mr. Rooker said some of the localities on the chart have a much larger population than Albemarle. He thinks a better comparison would be debt per capita. Mr. Tucker said the counties of Fauquier, Hanover, Spotsylvania, and York are similar in population to Albemarle, and they are all "AA" rated. Ms. White said Albemarle is also Iow on debt per capita. She does not think the financial advisors had any concern. It was expected that this debt would be taken on. That was the purpose of the whole capital program and its financing. The General Government side of the County had no debt at all which was unusual for a county of this size. Ms. White said that even by increasing debt service, the percent of debt service to the operating budget is just under eight percent. This is below the ten-percent maximum policy. Ms. White said the next slide represents debt service as a percentage of assessed property value. Debt is still way below the two-percent maximum and not increasing. Mr. Foley said the next slide outlines Strategic Issues. Some of the major issues which have to do with the capital program are: realization of completed master plans; addressing other urban infrastructure needs; impact of School Board policy changes affecting the CIP; long-term funding of ACE program; March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 10) operating impact of approved CIP; and, consideration of dedicated revenue sources and alternative financing mechanisms. Mr. Foley said the consultants working on the Crozet Master Plan have gone beyond the plan and looked at the cost of implementing the plan. It does not mean the County would pick up all of the cost of the specific capital projects, but the County's participation will probably be critical in order to implement the master plan. On April 2, the Board has a meeting scheduled with the Planning Commission to talk about implementation of the master plans. Mr. Foley said the Board would have to talk soon about addressing other urban infrastructure needs that are not specifically shown in the master plans. He said the impact of School Board policy changes affecting the CIP is an important issue to discuss. The School System decided to reduce class sizes over the last five years, but in effect that reduces the capacity of the schools and creates a capital impact. That change has been committed to, but there is one other change pending, and that has to do with potential changes to the redistricting policy. The Schools have asked the Long-Range Planning Committee to make recommendations, and some of the conclusions of that committee point clearly to the impact that will have on the CIP. He said school additions will be necessary in order to avoid redistricting, and construction of some new schools will have to be accelerated. The Technical Advisory Committee does not know how to deal with the issue since it is not a policy maker and does not have clear criteria to use in evaluating the benefit of these things. Mr. Rooker said the number of school-aged children has not been growing as fast as the population. Mr. Foley said the numbers in the CIP have been adjusted. The southern elementary school has been pushed back for the third year in a row. In the midst of all of this, there have been policy issues that were based on enrollment figures that were not achieved. Mr. Rooker said there is a lot of money in this plan for sidewalks, and there are many unmet needs for sidewalks. In places where asphalt paths were installed, that has worked out well. Those paths do not take a lot of maintenance. He said the sidewalk installed along South Pantops Drive in the last two or three years is already breaking up. It is a policy decision, but in places where it will take 20 years before a sidewalk can be constructed, more could be done with the same dollar. Mr. Tucker said staff considers these things before making recommendations. There are certain sidewalks built to VDOT standards that VDOT will maintain. Mr. Rooker said there are a number of people living along Garth Road now, and a lot of that road does not even have a shoulder. It is in the Bicycle Plan. He does not think there would ever be the money to put a sidewalk there, but it may be possible to put in an asphalt path. It is possible that there could be private donations toward such a project. Mr. Dorrier asked if the sidewalks were of such an inferior quality that they broke up prematurely. Mr. Foley said the Engineering Department is doing an analysis now because of the sidewalk agreements the County signed in subdivisions. A report can be made to the Board after that analysis is completed showing the most cost-efficient method of building sidewalks. Mr. Foley said that last fall the Board discussed long-term funding for the ACE Program. He said the operating impact on the CIP is a significant issue. During the next strategic planning session, staff would like to discuss changing from a one-year budget to a multi-year budget. The Board approves capital projects and in year two or three drive the need for additional personnel. Mr. Rooker said when discussing fire/rescue services, more interest was shown in better equipping Crozet than in building a new station elsewhere. Mr. Foley said staff has maps showing five to six-minute response areas, location of volunteer stations, gaps in service areas and where new stations are planned. He said the priority is to support the volunteer system with supplemental operating funds and also staffing when needed. Mr. Rooker said he was concerned that the County may end up converting volunteers to paid firefighters. Mr. Bowerman said it is a balancing act, it is not easy. Mr. Foley said that is the reality being faced by a lot of localities all over the country that are shifting to a more urban environment. Mr. Foley said that listed as a strategic issue is consideration of dedicated revenue sources and alternative financing mechanisms. These would include things such as a fire/rescue special tax district and a stormwater utility district tax. Mr. Martin said when the School Board reduces class sizes that has a huge impact on the CIP, but if Mr. Foley said they were not considering redistricting but building additions onto schools, this Board would need to be a part of such a policy decision. For years, it has been the objective to have the appropriate number of seats in the schools. He does not think this Board wants to be put in a situation like Charlottesville where the school was built for 2000 kids, there are only 1000 attending, but there is not enough space. Mr. Foley said that is an issue that will be before the School Board soon based on the Long-range Planning Committee's analysis. Ms. Thomas said she does not think the School Board can see the consequences to their March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 11) decisions. If this Board just keeps funding whatever they come up with in the CIP, then there are no consequences to them ending up with one school being overcrowded and another with empty rooms and yet they will not move the children to another school. Somehow there have to be some consequences to their decisions. Ms. White said it is difficult at the staff level to make those decisions when reviewing the plan. Basically, they are policy decisions that are being made. Mr. Foley said certain things need to take place in Crozet in order to make the Master Plan happen, and the question is whether a community development authority would be used as a way to assess some of infrastructure needs. The Board may need to start thinking about this if it wants those neighborhoods to develop in ways that were not possible in the past. Mr. Rooker said he thought community development authorities were limited to commercial properties. Mr. Davis said there have been some put on residential properties, but in reality the dollar amount was prepaid by the developer and not passed to the residential taxpayer that buys the property. Set up that way, it is not too bad. The danger is setting it up and adding an incremental tax on the subsequent purchaser. Mr. Rooker asked if it is feasible to look at an up-front payment that is a lot like an impact fee. Mr. Davis said the only way it has been used to date is to basically borrow money, have a debt service and have a pro-rata assessment to pay that debt service. The enabling legislation allows there to be an on-going tax for multiple purposes, i.e., maintenance, operations, etc. within that district. It is a bill the County collects, and then turns it over to the authority. It looks very much like a tax. Mr. Dorrier asked if other communities are using this to their advantage. Mr. Davis said it has been used by commercial developments to borrow money for infrastructure. Hanover County has a mixed-use project that has not been implemented yet, but they are in the process of examining the authority. This idea has not been widely used in Virginia, but has been used in other states. Mr. Foley said this was brought up today as just one of many options. The consultants working on the Crozet Master Plan will be talking about some of these in the next few months. They will talk about alternative mechanisms for future consideration. Mr. Foley then brought the Board's attention to a slide showing the five-year operating impact of the CIP. He said the total of the CIP is $112.7 million. It adjusts revenue growth downward and reduces or defers $37.9 million in General Government requests, reduces or defers $10.5 million in School project requests, but it does stay within the County's financial policy guidelines. At this time, Mr. Tucker handed to the Board members a listing of suggested ways to finalize this budget based on the Board's discussion at Monday's meeting. RECURRING ONE-TIME COUNTY GENERAL FUND REVENUES REVENUES Beginning Board Reserves FY '03 projected savings 117,097 961,000 Less County Executive Adjustments Bright Stars - Increase transfer to reflect 4.08% teacher salary increase 7,226 Soil & Water Conservation 1,600 March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 12) Plus County Executive Resource Changes Increase sales tax projections (40% of $0.350 mil.) 140,000 Increase business licenses (40% of $0.200 mil.) 80,000 Reduced state revenues (50,270) Plus Board of Supervisors Resource Changes Motor vehicle tax option ($65,000 per $1 increase)(40% of $0.2275 mil) 91,000 Net Ending Reserves 369,001 961,000 Mr. Rooker asked if it would be possible to charge a tipping fee at the Fluvanna/Zion Crossroads landfill that would be held and used for other landfill type of uses in the area. He said the RSWA went from a revenue-generating operation to a non-revenue operation, so he wonders if there is anyway to have a tipping fee. Mr. Davis said that is done now for everyone except BFI. BFI, by agreement signed with RWSA, does not have to pay a service contribution fee. Ms. Thomas said BFI does not have to pay a fee, but she wonders if the County could have Zion Crossroads collect for the County a tax on every truckload they bring to that center. Mr. Davis said the contract is between RWSA and BFI and it says that for every truckload of trash hauled to Zion Crossroads from Charlottesville or Albemarle, there is a service contribution fee, but BFI does not pay that fee because it is their facility. The agreement says that for all trash other than that brought to the landfill by BFI, RWSA will bill and collect the money and the service contribution fee, and will then pay BFI the amount collected. RWSA is the billing agent for Zion Crossroads and they tack on a service contribution fee for the Ivy Landfill. He said the RSWA has the authority to tax, but it would not be just the BFI customers, but all customers, so it becomes very complicated. Ms. Thomas said she was just searching for some kind of revenue stream to replace the revenue that was lost. Either add a penny to the tax rate dedicated to solid waste or do something else. She said the Engineering Department will be looking at a solid waste plan in the next couple of months, and they may be able to solve that. Mr. Tucker said staff could certainly look at the alternative presented this morning. Mr. Rooker said if a penny were added to the tax rate, 60 percent of that would go to the Schools. Ms. Thomas said it could be a penny dedicated to solid waste operations. Mr. Davis said there could be service districts for different types of services. Mr. Bowerman asked if it would be possible to differentiate parts of the County where that might be done. Mr. Davis said it can be done, it is just more difficult. Mr. Bowerman said he was thinking about money for the Stormwater Fund. Mr. Foley said the studies that are underway have to be completed before establishing any districts. Mr. Tucker suggested continuing with the presentation he had begun earlier. He said these adjustments to the total budget include an additional $4641 for set-up and supply costs for two additional polling places. The money would be taken from one-time non-recurring funds. Ms. White said the Registrar has said this is up to the Board, it is not an item that she is requesting, but if this is the Board's desire, she needs to go ahead with arrangements for the November elections. not. Ms. Thomas asked if it is something being required by the State's redistricting. Ms. White said it is Mr. Rooker said it will have to be done either this year or next year, and it is a small dollar amount. Mr. Tucker said Mr. James Camblos met with him yesterday. An analysis has been done to determine the dollar amount needed to put his employees on the County's Pay Plan at parity, but staff could not recommend that it all be done this year. He told Mr. Camblos his employees would be put on the pay plan, and they would receive the same increase in salary as that given to Local Government employees. He told Mr. Camblos to put the request in writing to do that, and he has done that. One-half of the salary adjustment will be funded this year, and one-half on July 1 of 2004. The cost of that is $12,780 if the Board wants to add it to the list. Mr. Martin said the Board has discussed this before and he thinks it should be done. He talked to Mr. Camblos today and he said it would go a long way toward meeting his goals. Mr. Rooker said he feels the same way. Mr. Tucker next mentioned that adding the Drug Court would cost $22,000. OAR's Papis Program would cost $11,968. For the Fire/Rescue requests, staff has listed the full amounts requested by those at the meeting on Monday. Eight medics for Scottsville would cost $378,375; a contingency fund for five firefighters at East Rivanna would cost $246,660; funds for Seminole Trail Volunteer Fire Company would add an additional $30,000; and, funds for a mechanic and mechanic's helper would cost $121,660. He said staff could make recommendations on these requested if asked to do so. Staff thinks that for Scottsville, only three medics are needed and that would cost $165,000 because there are also fixed costs for training, etc. The only other item staffwould recommend at this time is the $30,000 for Seminole Trail. Mr. Martin said he thinks Mr. Bowerman was correct in wanting some kind of a contingency fund. If East Rivanna does ask for a professional fireflghter he thinks the Board should be able to furnish one immediately. March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 13) Mr. Bowerman said that because it is a contingency, he would like to be able to fund the whole thing. He said East Rivanna has been trying to get professional firefighters in the station for several years, and they are close to being able to do it. Mr. Tucker said the groundwater position the Board discussed is being show for $60,702 in recurring funds, with $13,850 coming from one-time funds. For JAUNT, staff is recommending that the Big Blue service be eliminated. Its ridership is too Iow. Ms. Donna Shaunessey told Ms. White today that their state funding has increased, so they don't need any additional funding. This would give them an additional $35,000. He said that money could be taken from JAUNT and put into CTS if the Board decided to do so. Ms. White said the first priority for CTS is to increase the headway on Route 5 which is the route traveling Route 29 North. CTS heard from talking to focus groups that people would ride more if the bus came every half-hour instead of every hour. Big Blue is only transporting 20 people a day and it is costing about $110,000 to do that, so if that money were put into CTS it might increase participation along that same route. Mr. Tucker said a letter was received from the Library Board requesting an additional $58,000. He has talked with Mr. John Halliday about it a couple of times. He said the Library has not really faced the kind of reductions faced by Local Government, so it is hard for staff to support their request this year. Staff has recommended level-funding the Library, so the Board may wish to discuss this item further. Mr. Dorrier asked how the additional $58,000 would be used. Mr. Tucker said it is primarily for the bookmobile, which is not running at this time. They do not have an employee who is able to operate the bookmobile and would have to hire a person to do so. There is also trouble with the vehicle itself. Ms. White said the Library's request was even greater, but it included several new positions. If the new positions are deleted, then the $58,000 will fund their baseline budget. Mr. Dorrier said he thinks the bookmobile is essential to the rural area. It may be the only way some people have access to the Library. Mr. Tucker said he does not have enough data to say how much circulation there is on that bookmobile. Mr. Dorrier said he was not talking about hiring more staff, but the bookmobile is the only way some people have access to a library. Ms. White said staffwas told that if the Library got level funding, that is one place where they would cut because there is presently a vacant position there. Mr. Rooker asked how much of the $58,000 would go toward the bookmobile. Mr. Tucker said the $58,000 is close to what would be needed to operate the bookmobile. Mr. Tucker said that for Community Development, a master plan has been funded from one-time funds in the amount of $100,000. The Historic Preservation staff member is shown at a cost of $59,491 from Recurring Funds, and also under CTS Routes there if $56,527 shown in Recurring Funds to expand the headway for Route 5. Mr. Tucker said he had also listed some additional options for the Board to consider. Mr. Martin had mentioned budgeting for a salary lapse. Staff has looked at that idea and come up with a conservative number of $200,000. He thinks that for a small organization like General Government, it could create a problem. He said Ms. Thomas had suggested adding one penny on the tax rate for a Solid Waste/Fire Services District. Staff estimates this would bring in $857,030. By adding these two things it would give another $1,057,030, leaving a balance of $328,000. Mr. Dorrier asked if any capital projects could be deferred for six months or so. Mr. Tucker said that would not help much. The Board has not discussed the ACE Program, but money for ACE would probably have to come from the one-time non-recurring funds. Mr. Martin said the Board has also not talked about the Schools. Ms. Thomas said the Board has not talked about General Government employees. Mr. Tucker gave to the Board members a list of items in General Government that had been cut from the proposed budget in order to achieve $1.0 million in savings. If the Board considers adding additional personnel, he would rather have some of the "frozen positions thawed". Also, with the Schools talking about fully funding their salaries, the Board should not forget about General Government employees. He has included a two-percent increase in the budget, but to fully fund the other 1.8-percent will take $400,000. That is not a part of the list of unfunded items for reconsideration. Mr. Tucker then returned to explaining the summary he started with. For the School Division, there is $466,500 in new revenues ($210,000 in sales tax, $120,000 from business license fees, and $136,500 from a proposed increase in the motor vehicle tax). If the Schools funded their salaries by giving classified employees a two-percent increase on July 1, and giving the other 1.8-percent on January 1, it would save them $217,000. However, from the conversation earlier today, it does not sound as if they will do that. That would give them $683,500 to subtract from their unfunded initiatives, leaving them short $1.1 million. If they used their Fund Balance of $304,000 to cover some of this shortage, they would be short $0.807 million. Mr. Dorrier asked if a hiring freeze has been enacted. Mr. Tucker said the eight General Government positions listed on the list would not be filled in FY '03-04. He said that some of the departments are so small, that if one person left, they could not operate, so it is hard to do a blanket hiring March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 14) freeze. Mr. Dorrier said the budget is close to being balanced without a tax increase. He sees the need for additional revenue, but also sees the reassessment increase of up to 20 percent. If the budget can be balanced without a tax increase, that is what the citizens want. He knows the teachers made some good points at the public hearing, but he does not think this is the year the Board can deal with those points. Revenues need to come from somewhere other than the real property tax. Mr. Rooker said he does not understand the contingency fund for the firefighters. Since the fire company is not asking for professional flrefighters, he does not see the necessity for this fund when there are so many unmet needs. Mr. Martin said that if money were taken from that contingency fund, the budget could be balanced and there would be some money left in the Board's Reserve Fund. Mr. Rooker said he would like to have the Historic Preservation position filled, but he cannot make that position more important then the three police officers that will not be hired. Ms. Thomas said Albemarle, unlike most localities in the nation, is funding the COPS program, the Federally-funded police positions, even after that Federal funding runs out. She read an article that said most localities were cutting back on those positions. Going back to the work she did on the Historic Preservation Committee, she thinks the Board puts volunteers in a bad position when it does not follow up on the work they did. The Board told this Committee that it would not adopt the Historic Preservation Ordinance, but would like for them to do other things on a voluntary basis. These Committee members have been working really hard and have come up with good ideas. They are at a point where they need significant input that will cost the County money. Mr. Rooker said he thinks the position needs to be filled. He was in favor of the ordinance, but the ordinance never got anywhere. Are there any other priorities? How much of a reserve should remain? How much in additional funds should the Board consider for the schools? Mr. Tucker said the Schools are getting $466,500 in additional funds from the County. Mr. Martin asked for a break. (At 4:25 p.m., the Board recessed, and reconvened at 4:59 p.m.) Mr. Tucker said during the break, staff had run some numbers, and Ms. White will explain. Ms. White said Mr. Martin had asked about having a salary lapse figure. It basically anticipates that the County will not hire some positions during the year, or there will be a delay in replacing anyone who leaves employment. General Government has never budgeted a figure for that. If it is not budgeted, then the money not spent is recouped in savings at the end of the year. The $200,000 shown as a salary lapse was just an averaged figure. There is no consistency from year to year. Looking at the positions that have been frozen, they are actually taking some salary lapse funds ahead of time to balance this proposed budget. Next year, if those positions are included in the budget for FY 04-05, the full amount of those salaries will be needed. So, in some sense, some of those savings have been used in the current year by freezing these positions. Ms. White said staff had thought there would be some savings in the Police Department, but upon a further look, they found that most of their salary lapse each year was offset by overtime pay. They pay more in overtime in some years than they actually have in salaries. She said there was more paid in overtime this year in the County Executive's Office than normally occurs. She does not think that will become a pattern. She is not comfortable with starting a salary lapse as a precedent for General Government. Mr. Martin said he was suggesting that it be done this one year, he would not recommend doing it for two years in a row. He said that all during the year people come and ask for money, and usually the Board has the money because of that salary lapse personnel-wise. If it is used up-front, it will not be available. Mr. Rooker said the only thing that bothers him is that in some years it actually shows a negative number. Ms. White said if it is going to be done for only one year, it is basically using one-time money. She would be more comfortable by just saying that the Board is using one-time money. During this current year, $2.0 million in one-time money was used. If one-time moneys are used for operating, then the next year you are "in a hole". She said the positions that are frozen would come back next year for full funding. Mr. Tucker then handed to the Board members another summary of proposed changes. He said the only changes made are shown under Fire/Rescue. Funding for eight medics at Scottsville has been reduced to funding only three medics at $165,000, the contingency fund for East Rivanna has been eliminated, the funding for Seminole Trail is retained at $30,000 and the mechanic and mechanic's helper at $121,660 has been eliminated. This gives a total of $450,688 for additional initiatives, so the shortfall in recurring funds is now $81,687. If the salary lapse or the one-cent tax increase were used, the remaining Board Reserve would be $975,343. Mr. Rooker said he does not think any Board member is going to vote for a tax increase. Ms. Thomas said she would like to go on record as proposing the one-cent tax increase for solid waste expenses because she thinks it is the right thing to do. Otherwise, she thinks the public is being March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 15) fooled. Mr. Bowerman said if he has to choose it would be for a four-cent increase. He would never vote for just one penny on the rate. Mr. Rooker said if the tax rate is going to be increased at some point, it should be done in a way that would meet the needs of the budget, and not just a small, one-time thing. Ms. Thomas said solid waste is actually going to be a continuing expense. Mr. Rooker said this is the worst of all times from the standpoint of public understanding to put on a one-cent tax increase because of the substantial property increase. The average taxpayer does not understand that revenues have not increased substantially due to that reassessment. If the Board looks at a similar increase next year, it might have to look at a tax increase, and it should not encompass just solid waste, but some of the other unmet needs. Ms. Thomas said she sees this as a penny to deal with a new line item. She said the longer this goes on, the less the Board can call this a new line item. She also thinks that truth-in-taxation connects the penny with a line item when possible. This is a rare situation, but she does not think she has convinced the other Board members. Mr. Martin said using $100,000 of the lapse money would take the budget to a positive figure of $19,000. Mr. Bowerman said Ms. White had said she would rather use the one-time moneys because she knows the funds are available. Ms. White said it accomplishes the same thing. Mr. Dorrier said he thinks it is incumbent on the Board to write to the counties of Buckingham, Nelson and Fluvanna to ask for a sharing of some of the costs of the Scottsville Rescue Squad. Mr. Bowerman agreed. Mr. Dorrier said with the support of the Board he would go ahead and write that letter. Mr. Martin asked about Orange County and the Stony Point area. Mr. Bowerman said there is good reciprocity in that area. It might be good to ask for sharing of costs universally. Mr. Tucker said they would do the same thing and ask Albemarle for funds. Ms. Thomas said before the Chairman sends a letter can someone make sure it is not a wash-out as to who is running in whose territory. Mr. Dorrier said it is not a washout in the Scottsville area because he has talked to them and 25 percent of their calls are from other counties. He asked Mr. Davis about the legality of running into other counties. Mr. Davis said the Board signed an inter-jurisdictional agreement with these counties about a year ago that provides a framework for service. When this issue has been discussed in the past, the volunteers said they carry on fund-raising activities in those other counties. But, that should not negate asking the boards of supervisors in those other counties to contribute as well. Mr. Tucker said he would have staff look at the entire county and check service calls to and from other localities. Mr. Rooker again mentioned a franchise for cable television. He thinks it would bring in a great deal of revenue each year. Mr. Bowerman said he felt this expense would just be passed to the County's citizens. Mr. Tucker said he has asked the County Attorney to prepare a staff report on this question and it is to be an agenda item soon. Mr. Martin asked if the Board is going to use the figures provided today to balance the budget, using $100,000 in one-time funds. Mr. Tucker asked if the $58,000 for the Library is to stay in the budget. Mr. Rooker suggested eliminating that amount. Virtually all the other agencies were level funded, so the Library should be treated likewise. Mr. Tucker said Mr. Halliday said he would appreciate any amount the Board might consider adding to the Library budget. Mr. Dorrier said the Library had a 15 percent increase in readership this past year. Mr. Tucker said their circulation continues to grow, and there was no funding recommended in this budget for that increased circulation. Mr. Rooker said staff made a recommendation to level fund the Library, as it did for almost all other agencies. Mr. Dorrier said he is in favor of level funding. Ms. Thomas said it could be argued that the City put in a 3.2 percent increase, and if Albemarle puts in zero, it will discourage increases by the smaller jurisdictions. Library services are up 7.5 percent. Mr. Martin asked Ms. Thomas if she is in favor of including the additional funding. Ms. Thomas said she was just trying to track down the 15 percent figure quoted by Mr. Dorrier. Mr. Martin said he does not have strong feelings one way or the other about the request. Mr. Rooker said he does not think the Board should fund current needs from one-time funds. Mr. Tucker said these would be recurring funds. Mr. Rooker said he knows that, but the only way to balance March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 16) the budget is to use one-time funds. Ms. Thomas said she agrees with removing the Library funds. Mr. Rooker said it is almost the same amount as the Historic Preservation position. He thinks the additional money would be better spent on that position. Mr. Tucker said that with the change the budget has a plus figure of $76,200. He asked if that would use $100,000 from one-time moneys or the salary lapse. Ms. White said it can be called a salary lapse at this time, but the one-time moneys will be used. Mr. Rooker said that he would prefer not to present the budget assuming there would be money from a salary lapse. Mr. Tucker said the $100,000 would be deducted from the $842,509 in one-time non-recurring funds. Mr. Martin asked if $650,000 would be put into the ACE Program. Ms. Thomas said the ACE Program has a $350,000 allocation, and she does not believe they need the whole $650,000. The ACE Committee has some carry-over money available from this year because the most expensive property on the list will not use that money. Mr. Rooker suggested the amount of $450,000. Ms. Thomas said there needs to be more than $350,000 so it is more than 50/50 with the transient occupancy tax from the standpoint of the hospitality industry. Mr. Tucker said they could always ask for money when the appraisals are completed. Mr. Dorrier asked if the Board wanted to discuss the allocation to the Schools any further. Mr. Tucker said the Schools would receive about $466,500 in additional funds. While this Board has not provided them with any additional one-time moneys, they have their own one-time moneys that can be used. At this time, Mr. Martin moved to keep the real property tax rate at $0.76/$100. Mr. Bowerman asked about the Board's challenge to the Schools earlier in this meeting. Ms. Thomas said that is right, the Board challenged them to come up with something. She asked when the Board has to decide this question so it can be advertised. Mr. Davis said the advertisement has to be in the paper 14 days before the public hearing. Mr. Tucker said the advertisement could wait until Thursday or Friday of next week. Ms. Thomas said the School Board was given a clear challenge, and she thinks this Board should wait until it hears something from them. Mr. Tucker said the School Board does not meet until next Thursday. Mr. Davis suggested not adopting a motion to set the tax rate unless the Board receives a message from the School Board by next Wednesday. Mr. Rooker asked if the Board could adopt a motion to set the tax rates and then reverse that decision. Mr. Davis said "yes". Mr. Rooker said he thinks the Board should adopt a motion to set the tax rate. If the Board gets something from the School Board by that time, an emergency meeting can be called to discuss that item. Ms. Thomas said the tax rate is going to $0.76/$100 unless this Board hears something from the School Board by next Wednesday. Mr. Tucker said the Board can go ahead and adopt that motion, but if it does, the media is going to call and ask what was done. The School Board will read that article. Mr. Martin said the motion could be worded to say it was done pending any resolution or anything from the School Board. He asked if there is a definite time limit on when the Board has to have the public hearing on the tax rate. Mr. Davis said the tax rate has to be set in enough time for the Finance Department to prepare the tax bills and mail them because the Finance Department is on a tight schedule. Mr. Tucker said an advertisement has already run for land use items to be heard on April 16. Mr. Davis said a budget cannot be approved until seven days after the public hearing is held. Mr. Martin then moved that the tax rate for real property be set at $0.76 per $100 of assessed value pending any type of resolution or request from the School Board to do otherwise. Mr. Rooker suggested that the motion read "pending any additional information from the School Board that might cause us to reconsider". Mr. Martin said he liked his motion better. March 19, 2003 (Adjourned Meeting from March 17, 2003) (Page 17) Ms. Thomas said she thinks that when the School Board discusses this, they will ask whether they will get all three pennies that might be added, or just 60 percent. She said the extra money would let the Board do a couple of more things for the firemen. Mr. Tucker said the police positions, which had been frozen, could be released. Mr. Martin said he does not know that the tax rate would be increased even if requested. He knows Mr. Perkins' feelings on this matter, he knows Mr. Dorrier's feelings and he does not think he could support an increase. But, he thinks it would be good for the School Board to make a statement. Mr. Dorrier said the School Board has not said they will give the Board any additional information. Mr. Davis said even if the Board advertised a rate higher than $0.76, it does not mean that they would have to adopt that rate. It could be set lower. Mr. Martin said that makes it sound like it is something different then what it actually is. Mr. Dorrier asked for a second to the motion. Mr. Rooker said it might be wise to just wait and see what the School Board does before taking any action. At 5:50 p.m., with no further business to come before the Board, the meeting, which began at 1:00 p.m., was adjourned. Approved by the Board of County Supervisors Date Initials Chairman