Board of Supervisors: Board of Supervisors - Meeting Minutes April 14, 2008

Board of Supervisors - Meeting Minutes April 14, 2008

Virginia:

AT A CONTINUED MEETING of the Nelson County Board of Supervisors at 5:00 P. M. in the Board of Supervisors Room located in the Nelson County Courthouse.

Present:     Thomas D. Harvey, North District Supervisor
   Thomas H. Bruguiere, Jr. West District Supervisor
       Joe Dan Johnson, South District Supervisor
   Allen M. Hale, Vice Chairman, East District
       Constance Brennan, Central District Supervisor
       Stephen A. Carter, County Administrator
       Candice W. McGarry, Administrative Assistant/Deputy Clerk
       Debra K. McCann, Director of Finance and Human Resources
       Fred Boger, Director of Planning and Zoning

Absent:   None

I.   Call to Order

Mr. Harvey called the meeting to order at 5:05 p.m. with all Supervisors present to establish a quorum.

II.   2009-2014 Secondary Six Year Plan Workshop
A.   Review Primary Six Year Plan Recommendations

Mr. Kevin Wright and Ms. Sara Holt of VDOT distributed the Secondary System Construction Program Estimated Allocations as revised for the State’s 44% funding cuts. Mr. Wright noted the increased cost of construction and that the following other funding sources can be used for unpaved construction projects: TeleFee, STP Converted from IM, BR Formula, and State Funds.

The Board discussed the current Regular Construction priorities noting that the $2.6 & $2.9 million price tag for the top two projects (Rt. 151 & 613 and Rt. 617) respectively may not be worth doing right now and that funding allocations may need to be reprioritized. Mr. Wright advised the Board that deferral of road projects adds around a 5% inflation factor per year, he also noted that Regular Construction funds can go toward Unpaved Construction but not vice versa and Federal Funds must be used on Federal projects. He stated that if the Board eliminated the Rt. 151/613 from the top priority approximately $150,000 can be used elsewhere.

Following discussion, the Board set the Regular Construction Priorities as follows:

1.   Rt. 6/Rt. 634 River Road Intersection
2.   Rt. 6/Rt. 639 Laurel Road Intersection
3.   Rt. 151/613 Rhodes Farm Intersection
4.   Rt. 617 Rockfish River Road 0.7 miles
5.   Rt. 56/Rt. 647 Findlay Mountain Road Intersection

Federal Funds and State Funds are to be used for Priorities 3, 4, and 5 when possible.

The Board then reviewed the Unpaved Road Construction list and set the funding priorities as follows:

1.   Glenthorne Loop
2.   Phoenix Rd.
3.   Ennis Mountain
4.   Greenfield Drive
5.   Eades Lane
6.   Carter Hill Rd.
7.   Parrish Lane
8.   Donahue Lane
9.   Pigeon Hill Rd.
10.   Cub Creek Rd.
11.   Berry Hill Rd.
12.   S. Powells Island Rd.
13.   Naked Mountain
14.   Wheeler’s Cove Rd.
15.   Wilson Rd.
16.   May Lane
17.   Giles Lane
18.   Wright Lane
19.   Toms Lane
20.   Riverview Lane
21.   Warminster Drive

Supervisors and VDOT personnel discussed approval of the plan and priorities at an ensuing meeting either on April 24th or May 13th. Supervisors directed that available State funds be re-allocated to Unpaved Construction projects.

Mr. Wright noted that on Wednesday April 16th, the State will conduct a public hearing in Lynchburg on the Primary Road Six Year Plan. He noted attendance was not mandatory and the Board could submit its priorities in writing to the Transportation Board.

The Board then reviewed the Primary Road priority list and set the project priorities to be sent to the CTB as follows:

1.   Rockfish Valley Hwy (Route 151)/Greenfield Rd. (Rt. 635) intersection
2.   River Road (Rt. 6 West)/Old Roberts Rd. (Rt. 634) intersection
3.   Route 6/ Laurel Rd. (Rt. 639) intersection (added)
4.   Richmond Hwy (Rt. 60 East)/Allen’s Creek Rd. (Rt. 622) intersection
5.   Rockfish Valley Hwy (Route 151)/ Spruce Creek Ln. (Rt. 627) intersection
6.   Rockfish Valley Hwy (Route 151)/Rhodes Farm Dr. (Rt. 613) intersection
7.   James River Rd. (Rt. 56 East)/Findlay Mtn Rd. (Rt. 647) intersection
8.   River Road (Rt. 6 West)/Rockfish Valley Hwy (Rt. 151) intersection

III.   FY08-09 Budget Work Session

The Board discussed the Capital Improvements Set-Aside, with Mr. Carter noting that staff had proposed a nickel initially, and reduced it to three cents, which is currently undesignated, recurring monies.

The Board then discussed leasing or purchasing of school buses with Ms. McCann noting that purchasing five (5) buses in FY09 would cost $348,000, with current lease payments costing $352,000 in FY09 and the remaining leases costing $272,000 per year for a total of $620,000. Ms. McCann noted that $33,000 in interest savings could be realized if one of the leases is paid off in July.

Following discussion, the Board agreed by consensus to purchase five (5) school buses in FY09 and pay off a lease each subsequent year to phase out the bus lease program. This would cost an additional $268,000 per year over the $352,000 that is already budgeted for leases. Supervisors agreed that the Capital Set-Aside monies of $785,815 would be reduced by the $268,000 to cover the cost of this directive; leaving an undesignated balance of $517,815 in Capital Set-Aside monies to be held for future obligation.

The Board then discussed local Emergency Services agencies and the EMS Council, with Mr. Harvey noting that his inquiry of the fuel consumption bill showed a split between fire and rescue, with Paid EMS contributing to the increase in fuel consumption. The Board discussed the council’s requested increase in funding, with staff noting that an increase in the base totaling $6,000 had been requested, money for a generator at devil’s knob had been requested and $14,000 in training funds were also requested. Staff noted that the Council had indicated that it had an accumulated balance in training funds of $40,000. The Board recommended funding of the Local EMS Council of $541,667 representing their request less the $14,000 requested for training. The Board briefly discussed leaving in the proposed additional funds for Paid EMS for future volunteer incentives or additional shift hours for the paid crews.

A.   2008 Real Estate Tax Rate (R2008-32)

Supervisors discussed tax rates ranging from $.54/$100 to $.56/$100 with $.55/$100 being the rate that supports current funding decisions. Mr. Johnson suggested $.56/$100 noting that some additional State funding cuts in the works had not yet been addressed. Mr. Hale suggested $.54/$100 noting that the penny reduction could be found somewhere in County Administration or Agencies and not Capital. Ms. Brennan and Mr. Harvey expressed support for $.55/$100 with Ms. Brennan noting that this is a responsible rate for the expenditures the County has. Mr. Harvey noted wanting to reserve some monies, stating that he had asked the Superintendent of Schools to report back to the Board with how they would propose to spend additional funding, for programs, not salaries, that the Board would not want to be negatively impacted. Mr. Carter noted that he had asked the School Division to provide a status report, however they had not provided the expenditure side. Mr. Bruguiere stated that $.55/$100 is a 33% increase which is substantial.

Supervisors then briefly discussed the Fund Balance with Ms McCann noting that the fund balance was approximately $7.3 Million and the sixty (60) day cash requirement including the general fund, the non-local school amount and the debt service approximated a little over $7.0 Million. She noted that the tax receipts are collected twice a year and that the elimination of the sale of County stickers means that this money no longer supplements the cash flow in between the twice per year tax collection.

Mr. Bruguiere suggested $.55/$100 noting he would rather see $.54/$100 and Supervisors agreed by consensus to go with $.55/$100.

Ms. Brennan moved to approve R2008-32, establishment of Real Property Tax Rate of Levy, setting the rate at $.55 per $100.00 of assessed value. Mr. Bruguiere seconded the motion and there being no further discussion, Supervisors voted unanimously (5-0) by roll call vote to approve the motion and the following resolution was adopted:

RESOLUTION R2008-32

NELSON COUNTY BOARD OF SUPERVISORS

ESTABLISHMENT OF REAL PROPERTY TAX RATE of LEVY

RESOLVED, by the Nelson County Board of Supervisors, pursuant to and in accordance with §58.1-3001 and §58.1-3321 of the Code of Virginia, 1950, that the real property (real estate) tax rate of levy be and hereby is established as $.55 per $100.00 of assessed value, that said tax rate shall be effective as of January 1, 2008 and shall remain in effect until otherwise re-established by said Board of Supervisors.

B.   2008 Personal Property Tax Relief (R2008-33)

Staff noted that the current percentage of personal property tax relief is 60% with the recommendation being to set the 2008 percentage at 59%. Ms. McCann noted that the tax relief anticipated to be covered by approximately $1.7 Million in tax relief funds provided by the State equals about 59% and as values increase the percentage of relief decreases.

Mr. Johnson moved to approve R2008-33, 2008 Personal Property Tax Relief and Mr. Hale seconded the motion. There being no further discussion, Supervisors voted unanimously (5-0) to approve the motion and the following resolution was adopted:

RESOLUTION (R2008-33)
2008 Personal Property Tax Relief

WHEREAS, the Personal Property Tax Relief Act of 1998, Va. Code § 58.1-3523 has been substantially modified by the enactment of Chapter 1 of the Acts of Assembly, 2004 Special Session I (Senate Bill 5005), and the provisions of Item 503 of Chapter 951 of the 2005 Acts of Assembly; and

WHEREAS, the Nelson County Board of Supervisors has adopted an Ordinance for Implementation of the Personal Property Tax Relief Act, Chapter 11, Article X, of the County Code of Nelson County, which specifies that the rate for allocation of relief among taxpayers be established annually by resolution as part of the adopted budget for the County.

NOW THEREFORE BE IT RESOLVED that the Nelson County Board of Supervisors does hereby authorize tax year 2008 personal property tax relief rates for qualifying vehicles as follows:

•   Qualified vehicles with an assessed value of $1,000 or less will be eligible for 100% tax relief;
•   Qualified vehicles with an assessed value of $1,001 to $20,000 will be eligible for 59% tax relief;
•   Qualified vehicles with an assessed value of $20,001 or more shall be eligible to receive 59% tax relief only on the first $20,000 of assessed value; and
•   All other vehicles which do not meet the definition of “qualifying” (business use vehicle, farm use vehicle, motor homes, etc.) will not be eligible for any form of tax relief under this program.

BE IT FINALLY RESOLVED that the personal property tax relief rates for qualifying vehicles hereby established shall be effective January 1, 2008 through December 31, 2008.

Supervisors took a short break from 7:00 PM to 7:05 PM.

C.   Introduction of Other Funds

Ms. McCann briefly overviewed the Other Fund groups as follows:

E911 Fund

The E911 Fund no longer reflects receipt of revenues dedicated for E911 purposes. This is a result of state legislation (effective Jan. 1, 2007) to establish a uniform and centrally administered statewide communications sales tax thereby eliminating the local E911 phone tax as well as local utility taxes on telecommunications. The remaining fund balance at 6/30/08 is anticipated to be $49,765. This amount will be transferred out to the General Fund to support the E911 budget. From this point forward the fund will no longer be necessary as all revenues and expenditures relating to the E911 program will be reflected within the General Fund budget.

Debt Service Fund

In FY09, the transfer from the General Fund pays for all debt except a portion of the middle school/high school project debt. After the set aside of five cent real estate tax ($556,540 based on value of penny in 2001), 0.5% cumulative growth in real estate ($366,104), and cumulative debt reduction ($725,289), the balance of debt for the middle school/high school project is supported by the Capital Fund.

Debt service expenditures relative to the General Fund include a full year of debt for the Solid Waste Convenience Center construction and equipment ($335,395).

Debt service expenditures relative to the School Fund include no new debt. School buses will not be leased as in past years but will be purchased (reflected in School Fund). School expenditures for debt total $3,032,289 and include debt service payments and trustee fees related to the following:

1)   Bus leases (No new lease for FY09)
2)   HVAC system at NCHS
3)   Athletic facilities at NCHS
4)   Tye River Elementary
5)   Rockfish River Elementary
6)   VRS refinancing
7)   NCHS Renovations/ New Middle School
Capital Fund

Anticipated FY09 revenues include interest earnings and remaining VPSA refunding proceeds (balance held for payment of arbitrage). The FY08 budget reflected a transfer from the Piney River 3 Fund. The transfer from the Piney River 3 project fund represents money borrowed from the Capital Fund for initial funding of the Piney River water/sewer project. However, based on Rural Development funding requirements, these funds must be allocated to the project until it is complete to ensure that any project cost shortfall can be addressed. The remaining funds to support Capital Fund expenditures are from the fund balance ($205,706). The initial Capital Fund balance, as you may recall, was established with the windfall collection resulting from the switch to twice a year real estate tax collection.

Expenditures include the transfer to the Debt Service Fund to support debt for the High School/Middle School project ($324,706). The school project should be complete in FY08 including the front and back parking lots, so no further expenditures are budgeted in FY09 related to this project. Other expenditures include the payment of arbitrage rebate related to the VPSA refunding and the school project financing. Arbitrage rebate payments are estimated to be $29,000 subject to final calculations by the auditors.

Piney River 3 Project Fund

Revenues include the remaining grant funding totaling $2,436,462 from Rural Development, STAG, and SERCAP. Rural Development loan proceeds should be fully utilized by the end of FY08. Year ending balance reflects General fund and Capital fund allocations contributed in FY05 for the project.

Expenditures include the remaining project design and construction costs related to the water and sewer project. Also budgeted is the payment of interest cost related to Rural Development loans. These funds can be paid from Rural Development grant funds. The first regular debt service payment will not be due until FY10.

Piney River Water/Sewer Enterprise Fund

In FY09, the collection of water and sewer fees is projected to be higher reflecting the anticipated 106 additional water customers and 102 additional sewer customers resulting from the Piney River Phase III project. Connection and installation fees are projected assuming two new connections, most likely within the existing sewer system.

The expenditure budget reflects an increase due to the additional customers noted above. Expenses are allocated between line items based on the contract with the Nelson County Service Authority to maintain the system inclusive of billing.

CDBG Fund

The only active grant shown in this fund for FY09 is for the broadband planning study. This study is fully funded with Community Development Planning Grant funds for a total grant amount of $75,000. It is anticipated that there will be $33,350 in remaining grant funds that will be utilized in FY09.

Street Light Fund

The FY09 revenues reflect a minimal amount of delinquent tax collection including penalty and interest collections. All other funding will be from General Fund support in lieu of continued implementation of the street light tax.

Budgeted expenditures for electric service reflect no change from the current year. A minimal amount is budgeted for postage, office supplies, and salary cost to continue current efforts to collect delinquent tax amounts.

Courthouse Project Fund

The Courthouse Project Fund budget for FY09 is based on preliminary project and financing estimates. The revenues include financing proceeds of $8.5 million, the allocated first half 2008 real estate tax revenue ($1,829,588), the remaining balance of personal property tax windfall (from the switch to twice a year tax collection-$391,368) allocated to the project, and general funds allocated for the project debt service ($645,302). The expenditures are allocated between engineering, other professional services, and construction.

Mr. Carter noted to the Board that acquisition of the Lingo/Brown property behind the courthouse was in process and the County was waiting to close on the property, with no contingencies placed on the sale.

D.   Schedule FY08-09 Budget Public Hearing

Supervisors set the public hearing date for the FY08-09 Budget for May 13th in the Circuit Courtroom at 7:30 PM.

E.   Schedule FY08-09 Budget Work Session

Supervisors set the next work session on the FY08-09 Budget for the regular meeting on April 24th. Staff noted that the budget worksheets would need to be adjusted to reflect the flat $.55 tax rate set earlier in the meeting with Supervisors directing staff to adjust it as needed.

IV.   Other Business (As May Be Presented)

There was no Other Business considered by the Board

V.   Public Comments

There were no persons wishing to be recognized.

VI.   Adjournment

At 7:25 pm, Mr. Hale moved to adjourn until the next regular session on April 24, 2008 at 7:30 PM. and Ms. Brennan seconded the motion. Supervisors voted unanimously by voice vote to approve the motion and the meeting adjourned.