Board of Supervisors: June 5, 2006

June 5, 2006

June 5, 2006
Virginia:

AT AN ADJOURNED MEETING of the Nelson County Board of Supervisors (from May 15, 2006) at 7:30 p.m. in the Circuit Courtroom located in the Nelson County Courthouse.

Present:   Harry S. Harris, Chairman
Thomas H. Bruguiere, Vice-Chairman
Constance Brennan, Central District Supervisor
Allen Hale, East District Supervisor
Thomas D. Harvey, North District Supervisor
Stephen A. Carter, Clerk
Debra K. McCann, Director of Finance and Human Resources
Candy McGarry, Finance and Human Resources Technician
Linda Staton, Finance and Human Resources Technician

I.   Call to Order

Mr. Harris called the meeting to order 7:30 p.m. with all members present to establish a quorum.

II.   Public Hearing: Fiscal Year 2006-2007 Budget

Mr. Harris stated that the first item of business to be considered was the conduct of a public hearing on the proposed Fiscal Year 2006-2007 Budget. He asked Mr. Carter for any comments from staff. Mr. Carter advised that Ms. McCann had prepared and will present a power point summary of the FY 06-07 Budget, adding that the Code of Virginia required publication of the budget synopsis in a local newspaper of general circulation prior to the conduct of the public, noting that the budget had been previously published in the Nelson County Times, and a minimum of seven days must elapse following the public hearing on the budget prior to formal approval consideration. Mr. Harris then asked Ms. McCann to proceed with her presentation.

Ms. McCann began her remarks, stating that the Fiscal Year 2006-2007 Budget contained in addition to the General Fund (Operating Budget) and School Fund (Operating Budget), which she noted were the County’s primary operational fund groups, several other funds that collectively with the General Fund and School Fund comprised the overall budget. Ms. McCann stated that the additional fund groups included Debt Service, Capital, E911, Community Development Block Grant, Piney River Water and Sewer Operations, Piney River 3 Water and Sewer Project and Street Light.

Ms. McCann continued, commenting that the FY 06-07 Budget (General Fund) totaled $26,321,746, which represents an increase of $1,921,289, or 7.87%, above the approved FY 05-06 Budget of $24,400,457. She stated that significant revenue factors attributing to the increase in the FY 06-07 Budget included growth in real estate and personal property (tax) values, increased interest earnings, increasing the solid waste tipping fee from the present $50 per ton to $55 per ton, equalization of the local transient occupancy tax at 3% for all businesses subject to this tax, continued growth in recordation taxes and building permit receipts, and proceeds from the increase in FY 05-06 of local utility taxes (telecommunications and electric) to provide funding for the initiation and operation of a paid EMS program. Ms. McCann said that the primary source of increased revenues was derived from local revenues, which were projected at $20,067,935 in FY 06-07 versus $18,224,440 in FY 05-06 (as amended), an increase of $1,843,495 or 10.12%. She commented that state revenues were projected to increase by $235,249, or 6.22%, ($4,016,433 in FY 06-07 versus $3,781,184 in FY 05-06), with federal revenues declining by $50,361, or 47.62% less, from $105,761 in FY 05-06 to $55,400 in FY 06-07, attributing this reduction to lower grant funding. Ms. McCann noted the specific funding breakdown for General Fund revenues (all sources) as follows:

Local               $20,067,935
State               $ 4,016,433
Federal           $     55,400
Transfers from other funds   $   551,765
Year Ending Balance            $ 1,630,213
Total               $26,321,746

With respect to expenditures, Ms. McCann stated that important budgetary outlays included the continued use of set aside funding for Courthouse planning ($700,000), renovation of the County’s Front Street property for use as the local Tourism office ($336,638), completion of the County’s GIS project ($28,750), debt service funding for development of three new solid waste convenience centers ($156,278) and purchase of a new excavator for the County’s solid waste transfer station ($115,000). She noted that the paid EMS program, another major funding initiative, will be supported with new revenues from the dedication of the increase in local utility taxes and from a revenue recovery program associated with patient transportation services. Ms. McCann related that operational increases consisted of a four percent salary adjustment for employees, an eighteen percent increase in health insurance costs, $34,200 in increased expenses for heating oil and gasoline, a 7.9% increase for agencies that request funding from Nelson County, and funding for completion of the reassessment of real estate in 2008 ($65,000 in FY06-07 monies and $85,000 previously set aside for this purpose).

Ms. McCann advised that the County’s local funding through the General Fund to the Nelson County Public School Division included increases of $8,000 for the school nursing program, $805,422 for school operations and $75,000 in new debt service costs for the purchase of buses. She stated that the School Fund budget would increase by

$1,380,141 or 6.7% in FY 06-07 ($21,972,658) when compared to FY 05-06 ($20,592,517) with funding from all sources as follows:

State               $9,839,056
Federal           $1,665,270
Other               $1,050,039
Local (County) $9,418,293
Total               $21,972,658

In her closing comments, Ms. McCann reviewed the summary of all fund groups contained in the Fiscal Year 2006-2007 Budget as follows:

General Fund                   $26,321,746
School Fund                   $21,972,658
Debt Service Fund            $ 3,542,608
Capital Fund                   $ 1,165,433
E911 Fund                        $     401,765
Piney River Water/Sewer $       33,000
Piney River 3                   $ 5,155,312
CDBG Grant Fund           $         5,000
Street Light Fund              $         8,140

Following Ms. McCann’s remarks, Mr. Harris thanked her for the excellent presentation and the outstanding work on developing the budget by the Department of Finance and Human Resources.

Thereafter, Mr. Harris opened the public hearing. Those individuals addressing the Board of Supervisors on the proposed Fiscal Year 2006-2007 Budget with their respective comments included:

Ms. Connie Brittle, representing the Jefferson Area Board for Aging in her capacity as local program director at the Nelson Center, who thanked the Board for the continued funding assistance and support for JABA’s programs in Nelson County.

Ms. Mary Gaines thanked the Board for funding allocated to senior programs in the County and presented Mr. Harris with a card of appreciation, which he shared with each Supervisor and thanked Ms. Gaines for her kindness.

Mr. Todd Palmquist, Executive Director of the Piedmont Workforce Network, who asked the Board to give favorable consideration to PWN’s request for $3,535 in funding to assist with the implementation of a regional one-stop work force center. Mr. Palmquist added that PWN will open a work force information center to be located in the Nelson Center in summer 2006 and also commented on PWN’s assistance to residents of Nelson County.

Ms. Donna Shaunesey, Executive Director, of the Jefferson Area United Transportation (JAUNT), who thanked the Board for continued funding of JAUNT, explaining, however, that JAUNT had just been notified of a nearly $27,999 reduction in state funding, which will result in a $4,650 shortfall in state program assistance allocated to Nelson County. Ms. Shaunesey distributed a summary pertaining to the state shortfall, which included proposed service changes in Nelson County that could offset the $4,650 reduction in state funding for JAUNT’s services in the County.

Norma Watson expressed her appreciation for funding allocated to the Gladstone Community Center.

Mr. Pete Perdue noted his appreciation for the Board’s funding of all senior programs in Nelson County and stated his position that the senior centers located in Nelson’s neighborhoods were better suited to the needs of seniors than one centrally located center. He commended the Supervisors for the recently open Ryan School Apartments facility, which provides affordable housing for senior and disabled citizens.

Mr. Carlton Ballowe stated he represented a local organization, Rural Nelson, that did not request funding from the County and noted his and the organization’s concerns with the overall increase in the proposed County budget, the level of current debt, the planned Courthouse Project, adding that these will impact individual property rights. Mr. Ballowe said the future real estate assessment is projected to be a 25 % increase and that it is the Board’s duty to determine how to handle this so as not to impact individual property rights while also increasing tax reduction for seniors. He concluded that he had no suggestions.

Mr. Robert McSwain distributed then summarized a written statement of general comments he had prepared based upon his attendance at each of the Board’s FY 06-07 Budget work sessions. His nine comments were aimed at improving the budgetary process and in closing he expressed his appreciation for the time and effort the Board and County staff had made in preparing the budget.

As there were no other persons who wished to speak, Mr. Harris closed the public hearing, thanking all who attended for there remarks and positive comments. He then asked each Supervisor for their comments. Mr. Hale thanked the public noting the budgetary challenges that the Board must consider and the importance of the budget to the County. He added that he was in agreement on neighborhood rather than central senior centers. Ms. Brennan expressed her thanks to all attending the public hearing saying she agreed with Mr. Hale’s remarks and with Mr. McSwain’s input. She noted the difficulty of the budgetary process. Mr. Bruguiere said the budget speaks for itself, noting the County has challenging times ahead, which will require more tax revenues. He stated the Courthouse must be updated, that this was a mandate, adding that this year the Board was able to maintain the $.72 tax rate but that citizens should be prepared for future tax increases. Mr. Harvey stated that he agreed with Mr. Bruguiere’s remarks, that the County will have to do the Courthouse Project, which will have a tremendous (financial) impact on the County. He thanked all who attended the public hearing. Mr. Harris thanked the staff for all the work they’ve done, noting that they deserve a lot of credit for presenting a balanced budget and adding the County is challenged with needs that require additional revenues. Mr. Harris asked Mr. Carter for his comments and he noted the excellent work of Ms. McCann and her staff (Ms. McGarry and Ms. Staton) in development of the budget proposal, adding his appreciation for all that they’ve done to assist him.

Mr. Sherwood Martin then briefly addressed the Board of Supervisors asking them to do something to change the timing of the traffic light on Route 29. Thereafter, a five minute intermission in the meeting ensued before other business items were considered by the Board.

III. Staff Report – State Compensation Board (FY 05-06 Supplemental Funding)

Mr. Carter advised the Board of Supervisors of the approval of a 2.25% salary adjustment (increase) approved by the (Virginia) State Compensation Board for employees within the Nelson County Sheriff’s Department, explaining that the adjustment resulted from vacancy (personnel) savings accrued during the current fiscal year adding that, while not opposed to the increase, his question was whether or not the supplemental local funding for salaries and benefits provided to officers and employees of the County’s Constitutional Offices should be adjusted (reduced), as this change would result in a higher annual salary increase for Sheriff’s Department personnel than for all other County employees, including Constitutional Offices. He said it was staff’s intent to present this matter to the Board at this meeting with formal action, as may be determined necessary, to be considered at the regular session on June 13. Mr. Carter noted that most but not all Sheriff’s Department personnel (the Sheriff, a dispatcher position and two deputy positions paid entirely by the County) would not receive the adjustment. He stated further that the 2.25% increase, if processed without adjustment, would also require additional local funding of $101 in the current fiscal year and $11,730 in the ensuing fiscal year. Mr. Carter added that there is the potential for this situation to occur again, noting that there must first be vacancy savings the use of which requires State Compensation Board approval.

The Board discussed this subject with Mr. Harvey commenting that this presented a fairness question with regard to the County providing local funding to supplement the salaries and benefits of officers and employees of Constitutional Offices to insure equity among all employees related to annual salary adjustments where the percentage increases and the effective dates for such increases were different for the County and state government.   The ensuing discussion included consideration of reducing the County’s local salary supplement commensurate with the additional expense that the County would incur and reallocating these funds to the Sheriffs Department’s budget for operational purposes.

IV. Other Business

A. Health Insurance Program (Board Participation)

Mr. Carter reported that a member of the Board of Supervisors had requested information on the inclusion of the Supervisors in Nelson County’s health insurance program. He advised that this was possible and said that staff had prepared a report on this subject for the Board’s consideration. He asked Ms. McGarry to overview the report to the Board, which she did, noting the Code of Virginia’s provisions that allow such participation, procedural changes necessary to add the Board of Supervisors as a “Special Class” within the County’s plan, costs of participation for the County’s two health insurance program options, future eligibility, and action items required to establish the Supervisors as a special class, which include a written request to the Commonwealth’s Local Choice Program (in which Nelson County is health insurance plan participant) and adoption of a resolution establishing the special class and the Supervisors eligibility for coverage under the plan.

In discussion, the Board took no action but agreed by consensus to include this matter for further consideration at the regular session on June 13.

B. Personnel (County Administrator’s Evaluation)

Mr. Harris asked the members of the Board of Supervisors if they had each received and reviewed the written evaluation document completed by the County Administrator and if they were ready to consider the Administrator’s performance evaluation, as this was a pending matter that he wished to complete. The Supervisors acknowledged receipt of the information but requested that this be carried over to the meeting on June 13 to afford them more time for review.

V. Adjournment

On motion by Mr. Hale, seconded by Mr. Bruguiere, the Board of Supervisors decided unanimously (5-0) by roll call vote to adjourn the meeting. Mr. Harris then adjourned the session at 9:05 p.m.