Board of Supervisors Budget Work Session   2/26/2019

26 2019 budget work session and if we could we'll do some quick introductions around the table so over as well before we get to staff are Ford Clark, Claudette Borgerson and we have our officers Peter Skellinger and Jason Freistadt so thank you for being here with us today.

Alright, I'm Lori Allshouse.

Doug Walker, Deputy County Executive.

Ann Mallek, White Hall District.

Ed Galloway, Rio District.

Norman Dill, Rivanna District.

And Liz Palmer texted, she's on the way.

Mr. Chairman, I'd like to read a resolution of appreciation for Sharon Claytor Taylor, who I'm happy to say is with us this evening in the front row seat.

Whereas Sharon Claytor Taylor, CMC, has faithfully served the county of Albemarle for over 42 years.

Clerk in Real Estate, Clerk and Secretary in Inspections, Administrative Secretary I and II in Zoning, Office Associate IV in Zoning, Recording Secretary in Planning, Office Associate IV in Planning, and Clerk of the Planning Commission and Planning Boards since 2007.

And whereas Sharon has supported the Planning Commission and Planning and Zoning Boards with countless hours of detailed

real promptly for decision makers in the community and helping the county engage the community effectively through its boards and committees.

And whereas Sharon has demonstrated herself as a consummate underlying, consummate professional obtaining her certified municipal clerk CMC designation from the International Institute of Municipal Clerks, being the first of only three planning commission clerks

to hold this prestigious designation in the Commonwealth of Virginia.

And whereas Sharon has proven herself to be a true team player, infusing her work with honesty, adaptability, respectfulness, a willingness to help others, and a determined positive attitude.

Now, therefore, be it resolved that we, the Albemarle County Board of Supervisors, who hereby commend

Sharon Taylor for her many years of exceptional service to the residents of Albemarle County, the Planning Commission, and the Planning and Zoning Boards, and for leaving the Department of Community Development strong with the knowledge that proceedings have been transcribed, documented, and archonned by the contribution of a dedicated public servant such as Sharon Taylor.

And be it further resolved that a copy of this resolution be spread

Upon the minutes of this meeting of the Albemarle County Board of Supervisors, in perpetuity, as a testament to the high esteem you would share in his health by this Board, and with sincere gratitude for an extraordinary light of service to this community.

So Mr. Chairman, I'd like to present this resolution, and I assume the Board will first vote on it.

Miss Mallek?

Yes.

Miss McKeel?

Yes.

Miss Palmer?

Yes.

Mr. Randolph?

Aye.

I'm so honored and blessed to have my career with Albemarle County.

I'm so proud of my CMC.

I've seen so many changes.

There was no fashion square, no pantops.

I've seen everything keep changing a little bit more, a little bit more.

And it's been a lot of challenges, but I've really enjoyed working with the commission and the board.

Great team members now.

I love working for the Planning Commission now.

They're so kind and they're really working to get something done, and that's a great thing.

But I really will miss everybody, but I really consider it a blessing.

So let's begin our work session.

I am.

Chairman Galloway, members of the board, I'm Lori Allshouse.

I'm going to kick off our work session today.

This is a very important work session because we're going to talk about the CIP and debt management, which is an area that we approached later in our work sessions last year, and the board has asked us to move it forward.

It's an important discussion.

It builds on our discussions that we had last spring and into the fall about our CIP and debt service.

And as you see, we have more work sessions in front of us.

We have placeholders for a couple more and April 9th will be a public hearing on the board's proposed budget and the advertised tax rate and then on April 16th the board will set a tax rate and improve the budget.

Today's agenda, the first thing we're going to do is talk about the fiscal year 2024 capital improvement plan.

And this is a plan, not a budget, but it's what we plan our capital budget about.

So the capital budget is the first year of this plan, so it's very important to look long term when you look at your capital infrastructure.

And then we're going to talk about the actual capital budget which is your fiscal year 20.

It will be the amount of money that will be included in your budget and it will be what we'd be appropriating to when you appropriate in mid.

And then we'll be talking about debt management.

Mr. Latire is going to share some information on that.

And then we're going to move to our discussion of our general government functional areas, which is where we go through the book chapter by chapter for you to have a conversation about and a discussion about and make sure that we answer the questions that you might have.

As we move into the capital conversation, there's some really important policy considerations that we hope you will consider and have time to discuss with us providing support to you and answering questions for you so that you can have a good discussion about these very important policy issues.

So the one thing that you all know is that calendar year 2019 recommended tax rate increase is all about capital and debt.

So this is the chapter that that would be dedicated.

If there's a change in the tax rate, it would be dedicated to the capital and debt chapter.

So this is a very important time for you to consider that in your deliberations.

There's also, remember I mentioned CIP is a five year plan.

In the CIP there is also an additional tax rate built into our modeling, a tax rate increase.

So we want to talk with you about that.

Also, this is a really good time.

At the last work session, I shared with you some of our suggestions or recommendations for use of your unobligated general fund fund balance.

It'll be on page 172 when we get to that page.

There's $4.7 million in there for some certain categories that we think it's very important for you to consider and to think about as you consider your CIP and your capital budget.

So we felt like it was a really good

I want to make sure that you think about those in this context.

The fourth thing is that, as you recall from last spring and in the fall, we talked about 12 million dollars in what we called quality of life projects for parks and bike pedestrian projects.

This is also a good time to really delve into that, make sure you're comfortable with where that is in the CIP.

And then the other thing that we have in the CIP, we actually programmed it into fiscal year 20, so it will be part of your 20 budget.

There's a $2 million advancing strategic priority reserve that is in here that isn't dedicated to a specific topic.

So we wanted you to have time to talk about that.

And that is actually in your fiscal year 20 budget.

So it's in your capital improvement plan and in your budget.

And then any other policy related items that any of you want to put on the table for your discussion in the work session because the work session is your conversation and we are here just to support that conversation for you.

So as we go through this presentation, we do have some slides that we would like to share.

We have information that different staff members on this side of the table want to share with you.

But please stop us along the way, have your conversations.

I'll look to Mr. Gallaway to work closely with how you want staff to interact in this work session.

We see this to be more interactive than the last work session when we presented a lot of overviews to you.

Thank you.

So if you're ready to begin, I'll go to the first slide.

And this is the information that I had mentioned as a policy consideration.

It's on page 172 of your budget document.

You may recall that there's recommended uses of the unallocated general fund fund balance.

Some we're recommending for fiscal year 20, and some you can actually do in fiscal year 19.

Before the end of the fiscal year, you actually can move this funding because it is available to you.

And if you recall, and we went over this at the last work session, we had $3.2 million for the Economic Development Fund, $700,000 for the Housing Fund, and $800,000 for broadband incentives, which is a total of $4.7 million.

And I'm just going to pause for a minute to see if you want any more information about this.

So at some point, and I may have missed it in here, we have to date spent approximately 250 or so on the broadband incentives from the previous budget.

Thank you for the introduction.

In fiscal year,

18, the board allocated $200,000 to broadband.

That funding has been reappropriated, and the best of my knowledge is not yet to be spent.

When we get to it, Liz and I will be happy to weigh in on behalf of the Albemarle about the rationale for the $800,000 and I think we can reassure you about that.

Everything is laid out in terms of especially being able to attempt to match

I do want to, and I think I've said this in previous years, again, when we put $800,000 in broadband incentives, that lets everybody know that we've got $800,000 in broadband incentives that we're kind of hoping the companies will come to us and want to partner with us.

On the same end, with the economic development fund, which scares me a little bit, when we say we have this kind of money in there, there's going to be

Of course we leave it up to staff to figure out what the best way to spend that money is, but I'm not always as comfortable as advertising it.

I'd react just that I don't think it's money that people can look at that they can come and get.

It's money we're strategically positioning for our use to maximize investments on our behalf.

Yes, if there are savvy people out there and know how to approach it, but that's not, we're just not saying, oh, it's not like grant money that we're saying is available for private growth.

If really all three of these, we could say these are attempts for the county to leverage additional funding.

They're all these instead of looking at them as unobligated general fund balance.

There are a lot of funds in there.

So when we come back to that, I think that's important.

and not trying to slow the board down as we work through this.

And Doug Walker's here, as well as Roger Johnson.

And they can say as much about this as the board was over here.

But the $3.2 million that we're talking about that we have for economic development, as you know, we have the regional partnership.

We're also connected very tightly to the state.

And right now, if we look at the portfolio projects

that are considering this area who might qualify for some type of local partnership.

Right now, when we look at the listing, that would take us to about $1.9 million.

So I think it's important for you to understand that right now, when we take that snapshot of those projects

all have their own shelf life as to how long it takes.

Can I just ask a question?

When would I bring up our solid waste issues in this context of an operating in general?

As we get toward the latter part of this presentation, going through the information, as Lori mentioned at the very beginning, there's a $2 million strategic priorities

I'm going to move right into the fiscal year 2024 capital improvement plan which we call the CIP.

It's in pages 221 to 279 in your books.

This is just a pie chart of the revenues.

We'll talk about revenues for a minute first.

The CIP, again, it's a five-year CIP.

It's a total of $207.6 million.

And you can see that most of this is going to be planned borrowing proceeds at 74%.

And you can see some of the other general fund transfer that comes in and some of the other revenues that support the CIP over the five years.

Now these slides you've seen a couple times, but they're very important.

This CIP has tax rate increases built into our modeling.

And there's two reasons for that.

One, in 2016, voters approved a bond referendum.

And that bond referendum, the information that was discussed with that bond referendum and shared and modeled was that there would be a tax rate increase associated with that.

And we were able to defer that for a couple years.

In addition, over the spring, and we talked about it during the five year, two year financial plan, the capital improvement plan has 35.1 million dollars for high school center 2 in it, also an additional 12 million dollars for school investments.

12 million dollars for quality of life projects, we talked about that a few minutes ago, the parks projects and the bike ped projects and that totals 59.1 million, it's not the total CIP as you know other things are in our CIP but this is something different than how we've been approaching our CIP in many years and we talked about it and we looked at, you might remember all the different scenarios we looked at, scenarios one to five and then we did 3A, 3B, 3C, 3D, we looked at about eight scenarios and the board

wanted us to program into our CIP a scenario that has up to 4.2 cents tax rate increase by fiscal year 22.

So we had talked about some potential tax rate increases that would go along with supporting these projects and the projects of the past that we didn't put the tax rate increase due to some strong revenues during that time.

Yes, yes remember we talked about it is up to you look at different scenarios it does that's that's correct

and so the fiscal year 2024 CIP revenue is just a little more information about it.

It includes 1.5 cent tax rate increase in 19 and again I'm talking about the modeling that we do for the whole CIP.

It also has 1.5 cent tax rate increase

and calendar year 20, which is the next fiscal year, dedicated to the CIP Equity and Debt Service.

So this is for schools and local government and it's the whole program that we're looking at right now and we're projecting everything.

We're projecting revenues, we're projecting a lot of things in this model, but the current model shows 1.5 cents in calendar year 19 and 1.5 cent tax rate increase in calendar year 20.

Now this does not include anticipated operating expenses for High School Center 2, which we believe will be in fiscal year 22.

When the center becomes operational, there are some costs that's associated with operating such a large capital project like that for us.

There's borrowed proceeds.

Right now the modeling that we have has debt issuances planned in 1921 and 23.

We do it like every other year in our planning.

We may or may not hit that exact schedule.

Mr. Latire and his staff will really carefully monitor that and the timing of these issuances may be adjusted just depending on the cash position.

and depending on what they see that they can do in the finance department on that.

So they're going to be all on top of that and we're not going to borrow it until we need to borrow it.

So using the high school center to as an example, but I think the question would apply to any of our elements.

We would just say you might borrow 15 now and 18 later and something else.

And so only those amounts of the costs would be encumbered.

So the following question for my taxpayers will be, OK, why don't you bill me when the time comes rather than now and put it all in.

That's incorporated.

That's where we're talking about.

That's right.

And also there's cash that's needed.

You don't borrow 100%.

We don't borrow 100% of every project here.

So you need some cash equity as well.

We'll talk a little more about the cash equity piece in a minute.

So it's the cash equity and the debt.

So we'll move on.

In fact, we'll get right to that slide for you.

It is a busy slide, but an important one, as is, of course, the whole subject of maintaining proper equity.

And we have two policies related to that.

The written policy we're talking about, to the extent possible,

We also have a policy related to ongoing cash revenue to the capital program, 30% is a policy goal.

What this chart at the above area shows is that of the total amount of revenue transferred to capital, that's the dark regions at the bottom, 27 million and 31 million.

So these amounts represent the transfer to capital each year based on form.

Of that amount, the top line represents what goes to pay debt service.

The second line is what we call our ongoing cash flow.

We would like for that number to be approximately 3% of the time.

That is not the only source of equity now.

It's very important.

3% of revenues, I'm sorry, total revenues.

The chart below shows us how we hope to perform over the next five years based on this schedule.

And as you can see, the first two years of the program, we are approaching the 3% goal.

But we have not established that in the last three years.

I will say that this is a marked improvement on where we've been in the past five years.

You might recall we had 0.08%.

We have always been able to achieve our equity ratios with other funding sources.

Those again are sometimes they would be excess revenues from the prior year, proper income, interest income and other sources.

So that's all I wanted to say about this.

A number of years ago, we, with Davenport's advice, sort of remastered the policy on how quickly we were paying things off.

Any questions on this slide as we move forward?

So that was basically in on the revenues for right now and what I'm going to talk about now just quickly and then Mr. Henry's going to pick up some more details of many of the areas of the CIP is talk about the expenditure side.

The expenditure side of course equals the revenues, $207.6 million.

This is expenditures.

Again, we're talking about the CIP now, which is five years.

We'll talk later about the capital budget.

but you can see that the school division is nearly 50%.

We are a county that has a shared CIP with the schools, schools and local government together working with our CIP and you can see the balance and of course you can see all the divisions that we talk about not only in the operating budget but the capital budget there on the right side.

Our 20 to 24 CIP, as those of you that have been on the boards for a while, the main thing we do here in the county is make sure our mandates and our obligations and maintain maintenance and replacement of our projects are in.

If they're rated high, that's something that we value here in the county is making sure that we take care of that first.

and the 20-24 CIP also continues the capital projects that were approved in fiscal year 19.

And I wanted to just mention, for those of you that weren't on the oversight committee or may not recall, this year we do this two year

process, development process for our CIP.

And this was what we call the amendment year of the CIP.

So in the amendment year, what we say is no new project should come in the door unless it's an emergency or something very urgent that we need to address.

So this CIP doesn't fully flush out year five, because we didn't get a lot of projects in to think about for year five.

And we only got one new project that came in the door that we're going to talk about a little bit later.

So this is basically continuing your fiscal year 19 program.

The new project, I have the name of it here, but we do have some more information on it later.

It's called the Western Albemarle ADA Improvements, a softball field restroom facility is the project that is included as a recommended project for fiscal year 20.

So I'm gonna turn it over to Mr. Henry.

He's gonna work you through a number of slides that just kind of highlights what's in the CIP, because it's important, even though we're not doing a full new year this year, that the citizens and the board are aware of what's in the CIP.

I get to talk about the fun stuff.

In reference to page 244 in your document is the list that Ann would often refer to.

It is the list of projects by functional area organized around the fiscal year FY20.

There's a summary of each of the projects that are underway or in the proposed plan starting on page 252.

Mora mentioned that this is an amendment year, and so really there was only one project that came in that met the criteria for amendment year, which was the Western Albemarle idea improvement project.

of approximately $529,000.

That is in the recommendation under the school's functional area.

I'm going to go through, Mr. Chairman, and just do a summary of the main functional area projects.

There are other functional areas.

I'm not going to drill down into everything.

Just highlight what's in the plan.

There's a lot of work that was done.

for multiple work sessions last fall that really teed these up.

And so I can proceed through with summary.

If you want to do a deep dive into any particular item, we have subject matter experts in the room that can answer technical questions like Dr. Haas from schools, Chief Operating Officer Rosalind Schmidt,

is in the audience, as well as really the functional owners of the different CFP areas.

So my hope is that we can work through and answer any questions that we have related to the client.

With that, first one up that I think is worth talking about is the courts project.

This is kind of an exciting one to show because we're not talking about it from a design and our future perspective.

All the great work that was done over the past year with negotiations and the work that the board did along with city council has allowed this project to move forward in our planning once we get through the legislative process over the next few months.

We will be out with RFPs and we will start design work this fall.

There will be a lot more communication out on that as far as how we're going to do that, how we're going to involve the board.

All that's to come, but just, you know, it's exciting to know that that is on the horizon.

The $41 million is what's in the CIP.

If you look into the book,

The actual total project is around 44 because we have money appropriated now.

And so sometimes we forget that.

But the moral of this story is that we're rolling into design, hoping to get into construction with the general district court project, which is in our VE site in the late summer of 2021 and finishing about two years after that.

So exciting that we get rolling with that.

if there's no questions.

And the next one is around community development, which includes transportation, the Transportation Management Program of $2 million, which is a program number that will allow us opportunities to draw down a match from the state, which is a one-to-one match.

And then really in this category and

I should note that Tia Mitchell, the management analyst for the CFP is here.

She wanted me to note that the $6 million funding for the bike and quality of life projects is currently sitting in the other functional area.

That will get moved into community development as those projects get funded.

The majority of these projects which are listed on there are really in a conceptual planning state with the idea that we are going to leverage the majority of the $6 billion in this upcoming

VDOT revenue sharing program cycle and make application in 2019 to try to draw down again one-to-one match to maximize our funding to be able to move these projects forward.

Kevin McDermott couldn't be here tonight because of a schedule change.

But he did note that the Ashwood Boulevard bicycle and pedestrian approval project is one that we're looking at to use current funding to actually execute.

That might be a next year construction project.

We're still working through the evaluation process on that.

who belong to Parks and Rec Recreation.

$11.6 million over the four years, five years.

Part of that funding, 5.6 of that is for just our routine maintenance program.

We have city county owned parks, which include Darden Town and the Ivy Nature,

We share with the city, our share is approximately 69% and the city shares 31% of the funding.

The Ivy Creek Natural Area is 50-50.

So part of this program is just our routine maintenance that we have like other facilities.

The quality of life component of this is the $6 million, which is proposed for FY20.

The list of projects that are on there are what we talked about last summer and are currently in our assumptions to move forward in design heading into summer and fall.

Again, depending on the timing and when we get rolling on these, the design process will take

several months, six, eight months.

Yes, ma'am.

We anticipated this question, and I was going to mention that what's missing from that list is...

I've toggled on my screen, but I can't see it up here.

...or director of communications.

I have a hard copy too that I can share.

So what Parks staff did, and by Parks staff, Amy Smith,

You did a great job on this and Amy certainly can talk to this.

We anticipated this question, we saw some of the board email.

We anticipated this question and we thought that it would be, if you can expand that a little bit.

I'm gonna actually move to the front of the room so I can talk with my hands.

Using, thank you Emily, using the facility amenities ranking out of our

recreational needs assessment, which was a big effort over the past year, we listed what those attributes were from our study and the priorities that came in from the citizens.

And what we tried to do was do a comparison side by side of the district run project based off of the master plan, which was reviewed at the board in December.

as well as what is in the Hendro concept plan, phase one, phase two.

And so what's in front of you really is this matrix that tries to show where the attributes would be completed for the two different projects.

Obviously, one of the most significant differences is the size of the project and the cost.

Recall that the Biscuit Run project from Phase 3, I believe, was $35 million plus.

We developed a plan, if you could just scroll down from here.

Sequel backup, sorry, I thought there was a note here.

Under Vista Run, we broke out Phase 1 into Phase 1A and Phase 1B.

Phase 1A is what it would cost to get our access into the site,

and do a parking lot of approximately 50 spaces to get us using the facilities now in its existing state.

Phase 1B would basically be building out some of the circulator trail and some of the other amenities that we talked about within the master plan.

Phase 2, phase 3 just adds incremental amenities to it.

And so it is obviously a longer term project, a bigger project from a cost.

The hedgerow project, the $2.2 million in a similar way gets you access off of 29, gets you into the site, gets you parking, gets you a few other facilities like vault toilet, things like that, and then it gets access to the trail system.

My only comment would be I think this is really helpful that you're measuring it on a one-dimensional level, which is just uses, and not factored into the matrix.

The potential for each of these projects is fund generators, matching funds, state funds.

So fund generators also need to be thought of.

Multimobile connectivity.

It also doesn't factor into the chart in terms of uses.

And accessibility to the greatest number of people, we're not measuring which of these parts is most accessible in the easiest fashion possible at the least cost.

And finally, the breadth of activities and uses, you have shown that here, that Biscuit Ron has more uses in terms of breadth.

But I do think we need to look at the whole package.

I think it's really helpful to have looked at the uses, but I think there are more dimensions that the board should discuss as we weigh this.

And I don't come in with a preconceived notion of where we come out, but I think we ought to look at every single area and determine what is the maximum use per dollar of county money to generate the best recreation.

We know that it has more activity.

We know there's more people around that are using it.

But I think you make a really good point in the outcome of your funds.

I was just going along with what I was saying about when you have its ability to generate funds, and matching funds, and how to do that.

that in either case, there's an opportunity to draw down some veto money for the entrance.

Yeah, so that would apply, I think, in either case.

In either case, yes ma'am.

It's more discretion on when we want to use that, and I think there's restrictions on, you can only, Mike, do you want to talk to this one?

What Trevor is referring to is park access funding or grants.

One thing in particular that's different here between Biscuit Run and Hedra or any other county park would be because Biscuit Run is still considered to be state property, it qualifies for a higher grant which

There are limitations as to how many of those grants you can have open and working.

There's requirements for that are building the entrance, you know, as you come off, whatever, connector road, the VDOT standards, and then that maintains VDOT standards all the way back to the first parking lot that you would access.

Thanks, Blake.

Oh yeah, yep.

I really have to work on that.

If we were to include this to run in the mix of that six million, Parks would rank that probably as the number two project behind Garden Town.

as far as funding, and I think it's really tied to that blend of both urban and rural.

Park connection, it just adds a lot of the elements to why we are so excited about it when this first came to us through the state as an opportunity.

So if we're limited to the $6 million and we're trying to move that within our parks priorities, we would recommend we at least get that

Also, to answer your question, I've been pretty open about this and I do see an opportunity for the county

For the county is basically we're looking here at phase 1a and phase 1b together 4.3 million I rounded it off to five million dollars initially I didn't have at that point insight of what Amy and the consultant and Bob were going to be recommending but I was just doing ballpark

the opportunity to go after state funding given the fact that the director of the conservation resources put in a letter that the expectation was that when the county took the park from the state would be that there would be funding that we would take state funding and now state funding is not available so they've kind of put themselves in somewhat of a corner here because we

But did they say when?

They didn't say when, but they know, they wanted us to move forward with all due deliberate speed in getting it open.

And we're trying to do that.

And so therefore I think that there is a state obligation to help us now that the initial funding, transfer funding, is not going to be available in the time period that we thought of it.

Maybe sometime in the future, the Atlantic Coast Pipeline will be approved.

Who knows?

People in the room, the youngest person in the room may be a grandmother or grandfather at that point.

The county will get some money.

But, in the meantime, I think we need to do alternative planning for that.

And I do think the state has a role to play here.

But the first step is really to get a commitment from the county in terms of are we going to put money into this coupon or are we going to put it into hedgerow?

My quick opinion on this since I brought it up is I wouldn't want to bank on a state doing anything.

but I think it's pretty obvious that this park has more access to the most people and since our parks department would rank this higher than head drove and that being in the process at that time, I would do it and Joe Jay was switching that out.

But I certainly wouldn't back off the stage doing anything.

I would agree that the Phase 1A of Biscuit Run is a great way to spend.

I did want to make one connection.

Correction though, when we were last talking about Midro, I thought we had taken the riding stuff off the table because of the five figure dollars required for the parking extra for the trailers.

that as probably the only rider besides luring around the table here I would say that's something that my first people will say they're mad at me but I think this is the reality is we can significantly someday reduce that and so in your spare time when people are looking at something to do on a rainy day

Some thought could be given to what small investments could be made to then let the bicyclists get a small vehicle to go into a much more restrained place.

I think that if we do transfer the county initial investment to a district run, that gives us a game that then gets more respect from the state whenever we do have a chance.

Without that, I don't think we have a chance.

This is really a decision point.

I'm curious when we're talking about these grants who just applies for their researches, it seems like there's a lot of uncertainty

whether we're going to get things or not.

And is it the department like Amy's doing the grant proposals?

Do we have a central person who's an expert grant person that, you know, kind of weighs odds, kind of an odds maker, the biggest kind of thing?

It's my understanding that this access grant is an underutilized grant from the state.

I think what's also important to me is that those two dollar amounts are the same.

And I would push back strongly if it meant knocking out the other two small ones that are $200,000 apiece because they've been waiting around for years.

There's a whole different clientele and people who have not had any relief from waiting, especially for the Rivanna.

Great, thanks for that support.

Next functional area is schools.

Lori, you already teed this up at the beginning of the presentation.

High School Center 2 is in for FY20 with an anticipated operational impact in FY22.

The $12 million in future school improvement projects

and is in there, again, as a placeholder for more direction from the schools as to where that would be applied.

The very new project that is in John DeMille maintenance and replacement is the Western Albemarle project, making requirements for the amended year and received strong support through the technical review and oversight.

The bus replacement program,

included in the 101.

Okay.

Any other schools questions?

Okay.

Next one, almost done, is water resources.

What's in our request is $186,000 in change of new funding that that amount of funding

coupled with what we anticipate to carry forward from current year will get us to another bridge year of about $1.6 million.

That will allow us to continue with TMDL compliance, with a watershed restoration program, with our drainage infrastructure.

If you recall, Greg Harper and team presented to the board back in December.

We actually saw some video of the pilot watershed area.

It will allow that work to continue

You may wonder why we have so much carry forward.

Really, and it's a good story, it's a combination of revenues from our joint project with the city and grants that we've been able to draw down to the tune of about $650,000 that allows us to move that forward.

That coupled with, as we said in December, it's taken us a little longer to get permission to put the video cameras in the pipes.

We were a little optimistic in our spend plan.

We would think through FY20 to be able to get through the majority of the areas that we feel we need to have, really the urban ring areas where we feel that we need to put eyes in the piping.

What we're basically doing for taxpayers listening is that we're still in the exploration and identification phase of these water management problems that we know are out there.

And we are not dedicating any money, currently, truly, to remediation of those problems.

Voters may recall that there was to be a projected tax increase this year dedicated solely to water resource management that would contribute to infrastructure improvements in the urban ring, planned residential communities, less so in the rural area.

But that is an issue going forward.

because the remediation costs as we've already seen with one sinkhole, if not two sinkholes, I think it's two sinkholes, are considerable and we are really undercapitalized to cover the risk exposure that the county will incur as we continue the exploration and identification phase.

I was going to say, I think one clarification, Greg would probably say, wait a minute, we have a whole bunch of things going on that are happening, clarification, the whole damn two million bucks, a whole bunch of things that are being done in addition to researching all the other things we don't know about yet.

So I just wanted to make sure people were aware.

And we're taking money out of the general fund, which is what the conclusion temporarily was, until we figured out a better method.

But from my viewpoint, and maybe I'm wrong, what we're not doing right now is we're not putting money into a fund that will help build an account that we can use once we finish the work we're doing right now.

At that point, we're going to have to start trying to figure out where that money is going to come from.

We could have been building a fund that would

While not large, would it at least give us the money that we could access at the end of this mapping and the work we're doing right now?

We didn't want to walk through all of them.

It shows some of the projects of note that

I'm going to move to another slide just to talk a little bit about operating impacts and then we'll be back to Trevor for a couple more slides.

So are we ready to move forward?

So this slide is basically...

This is operating impacts and in our budgeting world when we think about the CIP and capital projects we also program in and ask questions about what is the operating impact associated with the project because we have to be mindful of not only the infrastructure that we're building or what we're doing

is that we have to be really thoughtful in our office on the operating side to make sure that we're also thinking about that.

So I just want to show you a few things on this slide.

You can ask questions on any that you have, but this is our fiscal year 20 to 24 CIP operating impact slide.

And just to bring a couple things to your attention, you can see high school improvements in capacity center two down here in the school division estimated to come in fiscal year 22 at $1.6 million.

That's a big lift.

for an operating budget.

We have to be really thoughtful about that.

It may require additional revenues when we hit that.

You can see that in fiscal year 20, we've been thoughtful and we've placed the operating costs into the operating budgets.

You'll see on the operating side, you'll see that this is cumulative, so it's not, you know, if you do the 130, you don't have to do it again.

You have some additional funding that hits.

So for example, for the Ivy Recycling Center, you have a portion of it for the months as anticipated will be open in 20, and then some additional funding in 21.

So you can kind of see how that works across the page.

So you can see it, again, is a cumulative slide.

So once you put, for example, the $1.6 million here, you don't have to put that in again.

But you can see it's about $9 million over a five year period in operating impacts.

Oh, you like that line.

Yeah, she's mentioning the McIntyre window replacement showing actually savings in electricity that we believe by putting these improvement windows in.

So is there any questions about this?

I'm having fun with the laser here.

Okay, so I'm going to move back to Trevor.

I don't see a fire and rescue person here, but the alerting system I know is electronics, so my question was, and somebody can get back to us later, what the operational impact is.

I'll move quickly through the next couple of slides.

This year was what came out of the Santa Fe review process, technical review on the oversight committee.

Really just to ground the board in the discussion from a year ago when an amendment here.

So we didn't address big projects in this past fall.

If you're wondering what happened

Really the purpose for this is just to say there are some pretty big requests that we'll likely see coming into the cycle again next year as the board considers decisions on funding.

Next slide was what last year Lori talked about as the watch list.

Again, these didn't actually have numbers with them and will likely transition into numbers in some cases next year.

We talked a lot of resources already.

There has been an increased funding level for volunteer stations for their operating budget and their small end, their small maintenance.

So an increase in the levels of support that is in the recommendation that Doug will be talking about here.

We have talked to the board about other funding for the big end, the big maintenance, and there's still work happening with FEZ and legal to try to look at how that program could work.

and so we're still developing that.

Still on hold pending.

It's funded currently.

It's funded and it's pending the legal how we.

Before you move on, just want to talk about watch lists and I see future transportation related items.

Just want to point out that we may be meeting as we go forward, and I don't know exactly when, transit.

We're looking at providing transit to areas right now that don't have it as we work through the transit partnership.

Yes, so I just think, I don't know whether we ought to be identifying it separately because I don't want it to get lost when we're thinking ahead, but

And certainly we will be able to find some efficiencies if we do this right.

Diantha, at what point will there be some kind of estimate?

Part of what we're going to be doing this week in this work session is part of how we're going to get the community to bring around how we're going to be the people in this county.

And I know that sounds very vague, but are we going to base it on...

Yes, and I couldn't give you a number right now.

I don't think either Ann and I could, but the work that we've done up until now has been positioning us.

We now have a formula that the transit partnership is going to be voting on that is a formula we can use so that if we go to CAP and say we want a bus to Pantops, they will have a formula that says that's going to cost the county $400,000.

We had to come up with that formula, and it's been, it's taken some time to work through all of these.

Anytime you're coming up with a formula for payment.

So that was the first step.

The transit board will be voting on that, so we have that now, you know, that's going to come forward.

That's the one.

So we had to have that, I guess is what I'm saying, before I could even answer your question.

The work session this Thursday is going to be informing.

And I am coming to it now.

I think something strange is happening.

Yeah, and it will be informing the work.

Because do we want buses to run every 15 minutes?

Do we want them to go here?

All of those decisions could impact funding.

Let's go along with that.

We already have a couple of commuter runs that we've started and there are certainly other ones in the stew here that we may pull out that are in performance now.

So there are small stakes of 100,000 here and 200,000 there that have gotten us started.

Is there a bucket anywhere in which we can put some small amount or should we consider it to come out of one of our other buckets that we've set up for building those things

It was $40,000 when we decided to replace or put back the ride-or-run bus that Cat decided a number of years ago to just cancel and run it through Green Rider instead.

And so the county pulled $40,000 out of the bank and said, no, we keep riding the bus.

And so I expect there will be things that we'll have to dig in for 50 grand or 100 every time.

There's several new runs that we want to have put in that hopefully we'll be thinking about those sort of small chunks.

I can't think in 10 million dollar chunks, but I can think in 50 thousand dollar chunks.

And you get what you're saying, Ann, I think, and Andy can tell me if I'm wrong, but I think we have 132,000 funds requested in this budget to match federal funds for the Crozet Connect commuter route.

I think is that accurate?

So with that question, it's a good segue to the next slide, which is the last slide of this section, and then I'll hand it back over to Lori, which is around the $2 million in one-time money for advancing strategic priorities.

So that's what this slide says.

In the FY1922 year plan process,

Staff looked at the timing of the board revisiting its strategic plan this fall, knowing kind of how that would tie with our budget process and how we should have a placeholder that would allow the board some discretion with strategic initiatives, strategic priorities to do some allocational funding.

Some examples would be our climate action plan work, which is happening now through this fiscal year.

May generate some recommendations on capital projects.

That could be a reserve, you know, that he could draw down for that funding.

There could be some transit-related items in there.

Biscuit run is a possibility if we look for additional funding on that.

The answer, broadband expansion, recycling centers, that I think is the broad category of what the purpose of this fund was for.

I think, I don't know

The board understanding that it's designed to be used for those critical areas as they get developed over the next five years.

Yes ma'am.

Trevor, and Jeff and I were in a salt-wasted brewery meeting today.

They are going to do a composting, tell us Jim Price, on a composting facility at Isaac.

We already have PDA, we're bringing a reasonable amount there while they're composting there, and we're trucking it now, so their idea is to compost it in place.

We would hope that the city would go in with us, but at this point we do not know what that would cost, and what the operating costs or what the timeline is going to be.

But this FYI, that fits very well

Help me understand, go back again because I think I'm a little confused.

Yeah, that just has to indicate that in the $20 to $24 period, there is a proposed amount of $2 million allocated.

No, no, no.

I think the reason

It's money that's available now, but there's no requirement that you spend it in FY20 years.

You can continue to carry that capital reserve with too many dollars.

If you'll remember, I believe it was you Mr.

Chair last year, you said, we've got to reserve a little bit of heavy

and then to remind you this year of do you see emerging opportunities or do you see things that you won't consider that may not already be addressed?

We wanted to make sure that today was a discussion and that if there's things that the board is interested in talking about specific to the CIP, specific to your discretionary money, that today's the day that we would ask you to entertain some discussion.

And then if there's direction back to us, that's helpful because we got time built between now and the time we set our tax rate and moved into the last part of the work session.

Well, I'll start with something and maybe try to just keep it into, I think we all know about a lot of issues, so we don't need to passionately talk about why they're important and all, but at this point we have $700,000

That's expected to go towards affordable housing from this year's one-time money and I think we should work towards

For one, having a housing fund be a regular line item.

Laurie and I talked about this a little bit.

It's not exactly clear what the terminology is.

But just see it more like Parks and Recreation or other departments where there's no question that it's going to be funded and it has a budget each year and we fund it.

Instead of doing the ACE program, at one point we were just doing it with one-time money and now it's resold at $500,000 a year as soon as it goes into it.

So I'd like to see affordable housing be in that category, not just we put one-time money in it when we can, but that we put it in and it

I'm confused.

This is one-time money.

So I think Norman that doesn't get at what you're talking about.

You're talking about a proposal for an affordable housing fund that is ongoing, not just a one-time money.

Maybe, but maybe it's just kind of like, again, the ACE program where $500,000 ended up and it goes in.

We have an agreement that we do that.

It seems like there's the ones that we use one-time money for certain things, definitely, because those are our priorities.

And then there's the ones that we try to do, and then there's the ones that, well, if we just have extra money, we'll throw them in there for something, and affordable housing is good.

Bottom of the barrel doesn't have to be at the top of the barrel, but it seems like we could have a certain amount of commitment to it, and that's where it's a little vague of just where does it fit in.

So right now though, coming up with two million one time, I completely agree with you.

I'd love to see how, I'm not disagreeing with it at all.

What I want to, if we're talking about a regular housing fund and we're putting appropriations into it every year, I want to really make sure that I understand our housing policy.

That's my only concern.

I know you were too.

But at this point, we don't have it.

Well, we've already said that we're going to put $700,000 into it.

So it's not a question of there isn't a we have a new housing director.

We've put money into housing vouchers through the housing is kind of a disparate kind of thing.

There's a lot of money that goes through social services for housing vouchers.

A big part of what we do to support housing is kind of not as obvious because it goes from a voucher program to a major payback

I'm just throwing it out for exploration.

I'm not trying to make a specific proposal that we vote on or anything, but we've already said 700,000.

I understand and agree with your point, Norman.

I think though that there is a difference between

Housing Fund, which is being funded out of unobligated general fund balance.

And then we're talking about a $2 million spread out over five years.

And I think what I would urge us to do is put your idea in the parking lot.

Because at the same time that we talk about establishing a housing, ongoing housing department, and that we fund it, I think also we should look at broadband

and really consider the fact that the authority is in essence like the EDA, it's an agency, independent though it be from the board, still linked to the board and broadband is going to continue to be a need

to be rolled out within the county and that that should probably also be within the budget.

So I would submit that both of those should go in the parking lot and we talk about as we come to the end of the budget and have a discussion about funding on an ongoing basis for both of those and establish them as their own

Government-funded, budget-funded programs and not being funded out of fund balances on an annual basis, which means there's sort of the poor stepchildren and whatever milk that's left in the pitcher, they're able to drink that and that's dinner.

But if they're truly, as we've established, in strategic priorities, that they're priorities for the board, then they should be so funded as priorities.

independently and separately funded and identified as such.

And I would agree to do a specific one which I brought up many times is this

And I know that staff is working on a larger project than looking at grants, but if that doesn't work, we don't get those grants that were still stuck with a whole neighborhood of children and parents

I have one, Liz has one, so maybe that would go on the parking lot.

I don't have one to put down on the list, and you may tell me not to, but I understood that there was a bucket of something for the Brookhill River access that was just going to be cleaning up the site, making the existing parking lot usable, and a slide for folks.

I'm trying to separate that from the long

Parkway, Boardwalk, all the other stuff that's going to happen.

No improvement, no slide, no parking, just as is like it is now.

Okay, open the gate and then go.

All right, we've got all that.

Thanks for good news.

I guess I don't have a specific project in mind, but as I look at these nine boxes, and then we look at the two million that potentially could be driven by those nine, it occurs that some of those are funded and don't, shouldn't, just from the visual we should take them off, like the core complex.

I'm not saying take it off the strategic priorities, but

allow the ones that aren't funded in other areas to drive where the available money could go.

I think they're referring to an upgrade if there's something extra that we didn't have in the original budget.

What the intention of the slide is, these are the strategic planners that were approved in November.

So we talked about, should we color code

We thought we would just talk more generically.

And I know that with the game planning of where we're going with that, it's on track and no further funding is needed.

But if something popped up in the Rio 29 small area plan, I don't know, something for transit to acquire and help something with that.

Or I don't know, to complete maybe two private developments going, we need to complete a chunk of the trail to connect the two up.

I like the flexibility of that.

It'll be driven by it.

But it's also well to know that these are the things that aren't even programmed for money if there's something up there specifically for it.

or specifically falls in that category.

Can safety or transportation items get thought of in this regard that are smaller in scale similar to what I heard Ann saying earlier about like a $50,000 or $100,000

when we talk about the transportation plan, get lost.

It's the same thing in our capital project.

Smaller projects sometimes don't scale or score well, and then they end up not happening over 10 or 15 years.

But if you had an intersection where you could have a dramatic impact, maybe it only costs $80,000, and you could make a significant difference, then am I thinking that this could be a place where something like that could come in?

We went the NIFI route to try to address that and it looked like it was going to be a great experiment but it was extremely staff time intensive.

to the staff to have done that.

That was huge.

And it was welcome.

Some of the projects have drew down revenue sharing.

So, Mr.

Chair, to manage time, we're about the halfway point of the three hour work session.

We've got several more slides in the area of CIP, so I might suggest to you that if

the board is comfortable with your discussion on this slide that we move forward and we get through those remaining slides and then maybe you consider a five to ten minute transition break between CIP and the general operating.

Okay, so I'm just going to touch on the first year of the CIP as you all know is your capital budget.

This will be part of the budget that you'll be appropriating in the very first year.

So just wanted to touch on that.

It's $68.4 million, and I have a couple slides from Alleke to show you.

That's pretty significant in one year for the county.

So you see the revenues and expenditures.

You have information in your document about this.

I won't go into a lot of details, but this is just basically taking the first bite of the CIP for the first year, and you'll see it's all in your column on page 244.

We'll go into a lot of details on it.

Trevor touched on a lot of these.

We'll bring the appropriation resolution to you so you can see some of the different topics that Trevor's gone over with you.

It has the Western Albemarle ADA improvements to softball field restroom facility, which is a new project.

It would actually be appropriated.

It came in as an urgent, important need that needs to happen in the first year.

You'll see some of the other items on that list.

The reason I say it's a pretty big lift, I just wanted to show this.

We found this to be pretty interesting in our office, and it actually affected some of the staff's thoughts as we went in to put together your recommended budget document.

Over the past five years, our annual capital budgets, what we appropriate every year, averages about $39 million.

In the past, as Ann knows, we've been, you know, maintenance and replacement, we haven't been able to do a lot of other things, so it's about $39 million.

Of course, we do carry forward money from the past,

and we do other things.

But when you look at just the amount of appropriation you do in a year, it averages about 39.

But this year, 20 is 68.

So that's part of this reason that we're thoughtful about the funding for this new CIP because that's a significant change from the past.

And it requires some additional support, which you'll hear later in the finance department, some one-time support to shore up some of the CIP management.

of that amount of money, debt management.

You'll also see some increased attention to the, I'm going to make sure I have this, facilities planning and construction division that will be, you know, will be thoughtful about that division as well when we think about this list.

And it doesn't all happen in the first year.

A lot of this is Center 2's funding.

But as it starts, it hits procurement, it hits all of our offices fairly significantly.

So I just wanted to bring that to your attention.

Is there anything else on that at this point?

Anybody?

And then I'm going to just move really quickly over to the next chapters.

We always put CIP and debt together as we talk.

The next chapter is debt management.

So we're going to move into that and just have a few slides on that.

So all of the information regarding debt management is on pages 281 and 294.

All that I would do in these next few slides is just provide a general overview for you about our debt, where it is existing, what it looks like over the next five years, so you have a sense for that, and then to talk about how does that then compare to our ratios that are so important for us to move things.

And then lastly, just

So this is, again, a sort of broad look at where we are now in debt.

The first box, entitled Existing Debt, is just that.

This is as of June 30th of 2018.

We had outstanding $192 million in debt from both schools and local government, and we've shown schools' debt is outstanding as $122 million to local government.

Now as Lori has described the plan and the projects that we've included, we would anticipate borrowing over the next six years really, 19 all the way through to 24, an additional $165 million a day.

Now during that same period of time, those six years, 19 through 24, we would anticipate, based on our democratization standards,

to curtail approximately $117 million.

I'll give you a sense for how quick we are at leaving us then at the end of that period with about $239 million.

We'll note that that is obviously an increase overall to the $192 million in debt.

But as I'll show in the next slide,

In spite of that increase, we are maintaining very consistently our ratios, both for the 2% to revenue and, I'm sorry, the 10% to revenue.

So again, as a total revenue, we would not have debt service that would exceed 10%.

And again, as you can see, by and large, we're staying right within and hovering around at trouble areas.

The outstanding debt is a percent of excess value, likewise, is staying very steady.

And if we overlaid the dollars on there, we would see a dramatic increase in taxable revenue over the time period.

And also a parallel increase in what we're investing on that.

At first I looked at it and it didn't look too scary.

These slides give you a sense for what we really think about as capacity.

So within our policies, you might say that we have some capacity, but then there's the question of affordability.

What we're doing this year is what we hear people all over this country talking about, frustrated about the lack of support for infrastructure.

Federal and state.

And it is a heavy lift.

But when we support infrastructure at a local level, we're putting those dollars on what our citizens actually drive on, drink from,

And I recognize that in certain segments, certain populations in our community get very frustrated when we talk about a tax increase.

But at the same time, when we're putting money into infrastructure, maintaining our debt ratio like this, they will be well served, in my opinion,

and it is where the rubber makes the road for their quality of life and their ability to live in this community and be able to drive on our roads.

I just got back from Baltimore and Washington and Maryland and I can tell you that there were potholes that you could lose in a Volkswagen van.

While we all fuss about infrastructure, we have to be willing to pay for it.

And there's no better infrastructure than to pay for infrastructure locally where you actually reap the benefits.

And I'm not saying that it's not good to support infrastructure at the state level.

I'm just simply saying that what we're trying to do here for me is good governance.

and I really appreciate and applaud staff for this thoughtful work and the way you have managed to handle our debt capacity and work with us and at times help explain to us where we are right now and I just applaud you, I thank you.

It's a heavy lift and nobody wants to raise taxes, but at the end of the day, if you want to live in a community, drive on the roads, drink the water, use the schools, at some point, that heavy lift has to happen.

So just very quickly, I just want to make a mention of a few things.

Obviously, we are focused on maintaining our own policies and best practices.

We continue to look around the state for how best to do what we're doing.

So that leads you down.

Talk about the 10-year ratio.

We maintain and continue to monitor that very closely.

As Laurie mentioned, we really want to try to stick to this every other year policy of issuing debt.

It's costly and it involves a lot of staff time, so to the extent we can do that, we're going to.

A couple of ways we're going to try to do that is we're actually issuing an RFP for short-term credit.

In addition, we're monitoring much more carefully our cash balances and looking at ways with our financial advisors to how best to leverage them.

Both as a combination of using the short-term credit and our strong cash balances that we have.

So these are just a few of the things that we want to continue to look at in addition to restructuring our accounting system.

So as we talked about one of the functions of this additional position that we're talking about would be to help us with some of this information.

That's all I got, yes.

Right, if I could, before we move on, are there any questions at this point?

I have one, I don't know if this is the right time, but Diantha was speaking to kind of, had this question on my head.

relative to the one and a half percent tax increase, specifically it's going to capital as we've stated.

Knowing full well that we could be approaching a time where we hit a downturn or a recession, if that tax rate doesn't get programmed, if we were to delay it again, and then you hit a recession or a downturn, there are a theory as to what,

what situation does that put us in?

Right?

And, you know, you almost want to say, well in a down time that should be winnable when your public capacity is investing and not vice versa, which is what we did.

30% change for projects.

No bill can clean up anything that I say that needs additional details, but the 1.5 cents is all dedicated to the capital fund, both in calendar year 19

and then if you continue to look at your project list in the next year, we'll recommend another 1.5 cents to go into the capital fund to support the growth with the debt that we're taking off.

Bill and Lori covered that.

If we were to negate a penny and a half in this coming year,

and in the next year and try to use pay-as-you-go and the natural growth and capture all of that and put it toward that.

And then the economy is slow.

We have problems both with the capital side and with the operating side.

The growth in our economy right now is supporting a lot of the operational increases and growth in position, programs, headcount,

and the stuff that you can see operationally.

And then the big ticket items, if you will, in the CIP is what's driving the consideration right now for the tax rate increases.

And it's because we are just looking at doing so many things in our CIP.

We still have got things coming that we'll have to consider down the road.

And we could have been building them.

Some communities kept going and built them at 30-35% cheaper for their residents.

And having said all that, that is what it is.

Well the very unfortunate thing that we all know we did, previous boards did in 2007 was drop the tax rate down by five cents.

That's right.

Which then, you know.

Position does a terrible position.

Position does to be en masse.

That's right.

Where, you know.

Six cents.

And then locally, the ACSA and the Rivanna water and sewer authority had, ACSA had preserves and they took advantage of tremendous cost savings and construction.

And so it was very interesting to watch that agency that I was on the board at that time versus the county and how different the situation is.

We paid for that.

What happened in our budget that moved in our favor that created a level of operating revenue capacity so we were able to move strategic initiatives and operational

An issue more aggressive and more forcefully.

But let's just say that revenues would have, on the real estate side, let's just say if we had backed it out a million and a half dollars approaching a penny, we would have balanced the budget with a million and a half less dollars in the operating budget.

We would have had to do that.

I hope that answers your question.

Yes sir, so that

The final slide today would just be a quick summary and that is we've attempted to go over the CIP with a level of detail that hopefully the board does understand the penny and a half of the $2.95 million dedicated for next year's budget in CIP for net service.

Also, Lori and her team have also talked about the five-year CIP tax rate assumptions and that's looking at ongoing commitment

Next year, at this time, we'll be looking at a dedicated rate increase earmarked for the CIP for the second year in a row.

And then, not to complicate matters, but we failed to fail today to

million and this board has talked about it to some degree today and that's 3.2 year mark for economic development, 800 for broadband, 700 for affordable housing.

That is end of the year money that will be allocated in the next year's budget and again this board is one time money and we would want this board to affirm at some point in time in the process that you're comfortable with that final recommendation.

You have given us some amended directions

Seabiscuit Run moved ahead of Pedro.

And so we'll go ahead and make those adjustments.

We've had some spirited discussion about the $2 million in advance in strategic priority reserve.

Mr. Board Chair, I think you mentioned that you had something else on your mind.

Other board members may have other things to talk about.

There's not a timeline on having to decide with that money.

But at the same time, it is a capital reserve.

And it is at your discretion.

have dedicated pennies set aside finally for both debt management as well as for the CIP.

I think 1.5 pennies this year is a minimal amount that needs to go in there.

I would like to actually see more in there.

And the reason I would make that argument is that for three years,

I've said to the board that our budget could afford setting aside one penny to the CIP so that we would build the CIP reserves.

And each year we've had to demonstrate a positive variance that has reinforced the fact that we could have done that.

And I think this board, I appreciate the executive staff

to make the recommendation this year for 1.5 pennies and 1.5 pennies for next year.

Belated as they are, they're appreciated.

But I still would make the argument that the CIP remains chronically underfunded based on the needs from the two leading departments that have CIP requests before us this year.

Capital needs, especially within high school modernization and center number two, and then the capacity building that both of the elementary schools that have received an inflow of new students, both Red Hill and Scottsville, as a result of Yancey's closing.

And the other department is Parks and Recreation, and that we remain still chronically underfunded

I do think that the projected fiscal year 21 anticipated borrowing of $81 million and the projected fiscal year 23 anticipated borrowing of almost $48 million will dramatically increase the amount of total CIP funding that would need to be dedicated to debt service.

Combined, those two borrowings will require

I think it's 128.8 million in bonding principle and cost taxpayers an additional estimated $64.4 million in interest payments.

I think that's absolutely right.

We have the borrowing capacity there, but I'm saying look at the borrowing capacity, but what cost?

Because we're going to need to take scarce CIP funds and dedicate a significant sum of those going forward.

So for the fiscal year 2020 budget, the debt on the borrowing of the total budget is going to equal around 14%.

The total debt balance to projected revenue ratio is going to be 64%, but by fiscal year 21, that's going to jump up to 80 cents will be spent on debt service or balance.

So one of the things that we really also have to talk about

as a board.

And I appreciate so much that we've moved the CIP into the front of us and talking about the budget this year.

It's so helpful to talk about the big strategic items, then coming to that as the caboose at the end of the train when we've already authorized spending in this area, this area, this area.

And then we pretty much just look at the CIP as a fait accompli when we move on.

The other side of this is I really would like to have us discuss increased prioritization for CIP projects by trying to keep a cap on annual operating expenses.

if finding ways to spend money for strategic purposes.

We're not so good as a board at not spending money for strategic purposes.

Both of those are strategic.

Spending money can be strategic, not spending money can also be strategic.

And I would hope also that we have a discussion through this process about

looking at projected fund balances mid-year and not, again, as we've done for two years running, spend down anticipated fund balances that we're expecting because of a positive variance at the end of the year.

Again, those are funds, when we commit to them, we take them out of the possibility of being used for capital purposes, which are, I would submit, the most important dollars we spend on debt obligation and capital improvements, because that's positioning the county for the future and dealing with the growth

We didn't have an annual increase in population.

I think that equation changes dramatically under those circumstances.

But as long as we continue to grow, we have to stay ahead for the schools and for parks and recreation, police fire, of where the growth curve is.

And we're still falling behind, even though we're dedicating 1.5 this year, 1.5

and Ned, we've already obligated in the past.

So again, we're going back to the past, we're not going forward into the future.

And I want us to, you know, what I would urge you after this year when I leave in December as a board, those of you that will still be here, I urge you to think about the future and trying to position

I think the voters out there know what is happening in the county and the dynamic and the growth of the county and that they will stand behind the board if they

on an annual basis.

And we say to them, we're going to need a penny this year, but it's all dedicated to the CIP to try to cover the infrastructure growth that we know is continuing to be out there.

I believe, genuinely, the voters are with us on that basis when we do that.

So that's all I have to say.

But I would just caution that I do think Bill is absolutely right in terms of staying below the 10%, but unfortunately,

A lot of debt obligation that we are going to have to pay back in terms of principle when we look out past fiscal year 2023.

Porter.

I'd like to remind all those around the table with our new microphone system, you still have to speak with some volume and some pronunciation so that you're heard clearly.

Couple board members, couple staff members, we could cut the volume if you would so that we're heard properly on this audio system, that would be appreciated.

OK, what we're going to do now is move into specific categories of your budget.

This is where we basically work through the budget as it's set up in the pages.

And so we're going to start with administration.

Before I start,

We talked about policy considerations about the capital budget, but there's also operating budget, the same kind of thing.

So we've talked before about the list and different ways to put things on the table for us.

But the questions are, does the board desire additional funding for any unfunded requests?

Each chapter will include some unfunded request information.

So this is a good time for board members to share that if they see something they'd like to be

have consideration for additional funding.

This could include department requests, positions, community agencies, et cetera.

The community agencies will show up in different chapters of your document.

Or does the board desire to consider removing funding for any items that's included in the 20 budget?

So those are your two basic things.

Any other conversation, of course, is welcome.

But that's just two of the considerations as we move forward.

We're going to start with the administration category, which is page 63.

This $16.8 million is a category.

It's got an 11.1% or $1.7 million increase over all of these departments that you see on this pie chart.

The Board of Supervisors category doesn't have any major changes.

It has some increases for the operating costs including the county audit and the board meeting security piece that we talked about before.

And Andy's going to talk about the Registers Department really quickly.

before I'll speak at the registrar and we'll turn it over to the combination of Bill and Trevor to discuss the rest of the administration.

Just two comments on the voter registration elections, their budget is a little unusual compared to other departments where there's a lot more fluctuation year to year based on what types of the number of elections that are taking place each year.

They do have a significant increase in display in 2020 to additional anticipated primary elections.

I think the total, and this actually we have some one-time money set aside, if you remember we had one-time,

Fundales for some one-time costs.

I guess $80,000 of that was for an additional primary election expected in fiscal year 2020.

The other notable change in voter registration elections, as they have seen in the last few years, just increased turnout election after election.

And so we have included a budget of about $51,000 for some extra equipment for their election workers to help move people in busiest precincts through a more timely manner.

Do you have a question?

Are you already getting ahead, too?

We're all watching that closely.

I don't see him here today, but Jake Redstrand, or Jake, we'll try Jake Redstrand.

Jake Washburn.

I'm the County Registrar and Electoral Award for keeping this prize.

What Ms. Malek is referring to is legislation at the state level that would create a no-excuse absentee voting period.

I believe what passed the General Assembly was going to go to effect for the November 2020 election.

However, that could be changed to be November 2019.

So we are continuing to monitor that with his office.

Alright, I'm going to move into... We'll find a way to use that again.

I'm going to go ahead and lead off this slide.

There's a change in how we've set up the budget document.

And we have a category called executive leadership.

And I just want to explain a little bit of why we've done that.

And it's based on a model that Prince William County has done in their budget.

And there's several offices that work very closely with the county executive's office.

For example, the Office of Management and Budget is a separate office.

But we work very, very closely with the county executive's office.

So basically what we did, just to put it all together in one category, we call it executive leadership and it has a county executive's office, it's got communications and public engagement office, the office of equity and inclusion,

So the board and the board clerks are not included in that umbrella.

No, we just put kind of the cluster of our offices of all the staff that works very closely with the county executive.

Again, based on the model that we've seen in another county that we thought was useful.

So I'm just going to move then forward to Trevor.

We're going to keep bouncing around here a little bit.

Thanks, Lori.

Why am I talking about that?

Because there are some significant budget elements within the administrative area that cross functional

functional lines that tie to this.

And so I want to ground the board a little bit in what this is and its meaning in this year's budget process.

If you recall back to Jeff's presentation introducing the budget, there was that foundational element.

This process is really part of us shoring up our foundation.

Our public service covenant

where we're a staff looking to provide every customer with an experience that's professional, empathetic, and responsive.

It's both for internal and external, and so we're really working hard to achieve that.

We needed to standardize our approach for implementation and then really consider a prioritization of the new systems or processes that we bring forward.

And so we took that recommendation.

We call it internally kind of our leadership imperative.

So that's what led us to the recommendation of taking the project management office, which

If you recall, we created that office, it used to be in FES, and really around the strategic plan work, and I think we had a lot of success in changing how we worked on projects, especially the big organizational ones, where we just did not have a lot of experience in the past.

So we changed how we worked.

I think vetted that process with Christie's leadership that as part of the recommendation from Tech Use was to centralize that office and elevate it as a project management office reporting to the county executive and then the executive leadership.

So that was a big component of the work that we did in the summer and you know it

and Enterprise Architecture Council, which is representation across different functional areas.

It's really a vetting process for new technology.

and trying to bring a framework for decision making and making sure that we're thinking about the right things as we bring forward new technology and that we're doing it in a way that would work for us organizationally.

So those things have occurred, we've reorganized the information technology department around

The last piece of that is a request for some funding for a position that I'll talk about in a minute.

for that department.

And then we have money right now that is earmarked for this BPO use that we are using right now to help us implement proposals.

Some of the work that we've done, I think, had some success with is that project management methodology on Southwood.

Many have seen that firsthand in action.

We use that on Biscuit Run as we work through the master planning process.

The board's gonna see a demonstration of the GIS web application that was just rolled out.

You guys will get to see that next week at your board meeting.

That was really the first project that has come through this, I'll say this enhanced project process.

So we'll talk a little bit about that next week.

Our time-independent system, our CRONUS project, has been something that you guys have been hearing about for a couple of years.

We're finally on the cusp of implementing that on the local government side this spring.

Schools are going to follow in a phased rollout, summer and fall.

And as one of the other lessons learned that we've really tried to embrace and are using funding for is before we look at new systems, we're really trying to understand our processes, do our process mapping first to make sure we're solving the right things, not just throwing more money at a system when really we need to be looking at how we work and how we can improve our process.

That, again, is both internal and external.

I think will benefit internal and external.

Next slide are some specific budget items.

Now, I guess we could have put slide numbers next to each of these, but this covers IT, PMO, human resources, county attorney, and then non-conformental.

So you kind of see the category of where this funding resides.

The first is the business intelligence manager.

Thank you for having me.

This position will help manage that organization.

We have an assessment occurring right now through consulting services.

It's helping define what the system of work should look like that will allow this position to manage it.

It is really to integrate our data as we look at future system changes.

A few years ago, maybe it was last year, time flies, we had a big meeting with the board, the school board, and the planning commission.

We did a lot of data analysis.

The work to pull that data together was significant because our systems don't talk the way they should talk.

This position and this function will help us solve it.

So this is that last component.

The Project Management Office has some funding recommended to help us augment our myriad of projects that we have underway.

That project ramped up and it got put on a back burner because of some position changes

Technology Department, that needs to come forward.

And so that's an example where we're going to need some additional resources to help do that.

Because I think from a customer facing, that is one of the most significant things that we can change.

So that's an example of resources that we'll employ to help with that project.

And there are other projects that would be supported by that.

Technology Trainer, that was also a recommendation from Tech Use and F1.

that is half-time, that is using one-time money full-time, this is a recommendation to convert that into a full-time equivalent meeting forward that will be tied to our implementation of projects.

Munico is a software that Greg could talk about that has gone through our review process and is recommended for inclusion in a 20-budget implementation.

And then finally, the last two I would say we should look at together.

In the previous years, departments would often request funding that would be for new systems, some innovation that they're trying to do, and would be really looking at it more from a department perspective.

we're trying to work now is that we want to centralize that a little more.

We want to vet that process so that we are organizationally prioritizing, that we're making sure that a decision that FEZ makes does consider the organizational impacts because it comes from FES.

And so really, we have taken money out of some departments

and have centralized that to allow us to do that vetting process and fund future work over the next year.

If you recall, the schools presented some initiatives where they kind of went through a prioritization process and narrowed it down to, I think, 12.

What we would like to use this funding for is kind of to allow us to do a similar thing.

Before you move on, can I ask a question?

Yes ma'am.

We have made them.

So that has happened.

What did you say?

Phones.

Our telephone system.

Yeah, there was an initiative that was done

People use the website, but people use phones too.

And if someone calls, if our Economic Development Office calls someone and they think it's a telemarketer, they're not going to answer that phone call.

And then when you push call back,

It didn't work for me today, as of today.

Maybe we need to have some one-on-one conversations.

That is an example of work that would fall under this override.

Just for the future to-do list, Diantha reminded me of what several citizens have called bitterly to complain.

There are some places where there is no option to talk to somebody.

You have to leave a message and then maybe you don't get an answer.

So there has to be a way to somehow, after it rings five times, somebody needs to be able to, if you really need a person today, please hang on or something.

Trevor will give you a phone number to call back.

Do you have any cost-benefit analysis you've done on these as you look at you're generating operating budget reductions of 205?

mainly because you were moving out of silos and you were creating a centralized office.

But I'd love to see an overall design plan here which shows the efficiencies that you're introducing.

I think one thing that's helpful for our voters is to help educate them to understand that as we see changes like this, part of the ethos behind that is to deliver

All these improvements cost a lot of money and a lot of time.

Okay, I'm going to spend a few minutes talking about the finance department.

As you know, it is probably, it is one of the largest in the group of administration, a budget of approximately $6.3 million.

We're proposing an increase this year of about $4.7 million or about $6.4 million.

I just wanted to say at the outset here that you know I can

They do some heavy lifting.

They provide a great deal of services for both internal and external customers.

They've been extremely impressed with the work.

The Finance Department provides, of course, overall financial management, including financial reporting, assessments, collection of all open revenues, cash management, debt management, risk management, and financial assistance management.

I want to venture a couple of changes, significant changes this year.

One is that we are

moving a significant amount out of the operating budget related to technology and moving that into the IT budget.

So they will manage this.

You can imagine finance has a number of technology-type programs.

Heretofore, we used to just include those budgets in the finance part, and now we're moving towards IT, which makes no sense.

There are three positions proposed in this budget.

The first is the P-Card program manager, which I believe I spoke to you about last time.

This is a good story of a deficiency measure that was put into place involving the issuance of P-Cards and facilitating the purchasing process.

In fiscal year 18, the rebate program generated $181,000 a rebate.

Volume of work in that area has gone from 100,000 a month to a million a month in terms of overall volume.

So it's a good program.

This will be a needed operation.

The second position was a land use administrative position.

Pete is here to speak in more detail, if at least necessary,

We are able to do that to an extent.

Peter Lynch, County Assessor.

The way we handle the checks for land use is if we find someone is not in compliance with the program, our first act is to notify them and tell them how they can become compliant if it is possible.

But a face-to-face, I think one of the things I'm hearing is that, you know, with some of our older citizens that maybe have been in land use for quite a while,

The appraisers who are doing the assessments and picking up new construction would also do this work.

That's wonderful.

I'm very pleased at that one.

as well as business management and property taxes.

Here again, there's a degree of effort that happens now.

This will broaden that effort so that we can ensure more compliance and it is expected that the revenue generated will offset the cost of the decision.

The other two positions I wanted to mention are temporary in nature in regard to the CIP management position and a grants manager position.

Lori and I have been talking about the sort of spike in activity in the capital fund and how management of all of its debt really requires us to have that more focused centralized attention to both how we match up our spending plans to our debt and even managing the projects themselves

and so that going forward we'll be in a good position to match.

Same with grants management.

This is really a position that lives between finance and OMB.

It's about compliance.

You're referring to the other?

Either one of them.

Yes, okay.

It would certainly be a partnership with the originating agency or a partner.

So there's work that happens in terms of the ongoing grant management.

This position is more about

Holly Biddle, budget analyst and the OMB grants person.

I think when we looked at grants through grants in schools

The general government is in a generally around three to five grants that we see.

When you give us a quarterly report, which usually about three to five grants, but would this person be responsible for the school division as well?

I think they would.

So the compliance issue does rest with us.

So it makes sense that they would have some responsibility.

That concludes my comments on the finance department.

If there's any other questions, you can move on.

Bill, I'm just going to ask, I've got the cue for you to pump the volume in a little bit.

I don't know who it's originating from.

So, in general, the judicial involves the area of the sheriff's department, town law department, court of the court, public defender, and our court's systems.

Obviously the sheriff being the most significant.

Just in terms of notable changes, I'm not sure that we need to go through each category.

I'm happy to do that if it suits.

But I think maybe that it's worthy to call attention to a few changes, one being the implementation of full-time public safety pay point that we have been discussing.

That sets all the rules.

The other is the two part-time sheriff deputy positions for emergency fault.

I have a question.

Go ahead.

I noticed a $7,750 increase for purchasing rifles for 12 deputies and other staff.

Have you been able to hire full time folks?

The two part time now?

Yes, they were hired July 1st and their positions, they were actually working 40 hours plus each week and have been since their hire date in July.

So this was just to catch them up to make them full time because their insurance was not being paid for even though they were working 40 hours a week since their hire date.

So for an extra position, we're not really getting them because they're already working 40 hours.

So this is just for staffing levels.

So we wanted to make sure.

Oh I thought it was solved.

This is general and we can come back.

There's a couple in a variety of places on some of the unfunded requests.

Thank you, Doug Walker, Deputy County Executive.

I'm just going to work at a higher level.

You obviously have the department budgets in your book starting at page 97.

But as a function of area of public safety, this is obviously one of the areas where the board makes the most significant investments on behalf of the taxpayers in support of those services.

There's two largest areas in support of the Department of Fire Rescue.

also though although

your support for the Emergency Communications Center, both regional agencies, your support for building inspections, which we always make a note of just calling out the fact that although that it's actually in community development from a departmental standpoint, it's actually budgeted as a public safety agency for budget purposes.

And then other public safety agencies would include regional agencies like the Blue H2 Extension Center, the Office of Center Aid and Restoration, where they are, and your contract with the SPCA.

The total investment as opposed to the upcoming budget is $47.9 million, which reflects a 8.1% or $3.6 billion increase over the current year.

And then the next slide indicates some of the major areas of additional investment for your consideration.

There's other details, but something to walk through from a department-by-department standpoint.

We do have Keith Lance, Deputy Chief Puckett, and Gary Newland, the Director of ACC here.

Any questions, if needed?

with respect to the Sheriff's Office the same is true here with respect to the Police Department Fire Rescue and Emergency Communication Center.

This does continue the finalizes the last year of the full payout for the top sergeant police sergeant

Over the last several years, you recall that each year, there's a 25% pickup.

So this is the last of that pickup.

So it's now fully funded by the county.

An additional police officer, the cost there reflects both the ongoing annual cost, the salary and benefits, both the one-time costs associated with outfitting that officer.

That can be broken out, obviously, in detail for you.

There's a part-time.

Hoya physician, public safety and criminal information act specialist.

It's intended to be housed in the police department but to serve all three of the agencies that we most directly work with, fire rescue police, NECC.

This position previously was co-joined, or the function was co-joined, with the

Public Information Officer position that was in the Police Department that is now going to be allocated to the Communications and Public Engagement Office.

The meeting number is Madeline.

or Maddie for that function.

And she does still provide public safety PIO support for all three agencies, not just the police department.

So this sounds kind of stupid.

I doubt it.

Silly question.

So that's a part-time position.

Yes, ma'am.

But it seemed like to me, if it's supporting ECC.

So ECC also involves the civic and the university.

So are they making this position home

And ECC also has staff that currently will provide those services, so it may be necessary for the ECC staff work in conjunction with the FOIA specialist, so that it's not

I would have to clarify how much of the work that's being done for ECC, and how much of that cost is being shared through the formula that supports the ECC.

But at the same time, I get it.

We provide a range of services in the formula or the methodology that's in the agreement pays us 2% of the total budget for those services.

So there's not a direct accounting for how much value the services that we provide to the ECC and then how much we're paying for that.

I was going to say.

Yeah, that brings us to a discussion we've had in the past about we're the fiscal agent for a lot, and are we losing money on that?

Well, we don't mind doing it.

And not just too far into that, but you will likely see, certainly for the jail,

out of recent jail, an exploration of whether it makes sense for us to continue to buy physical agent services or not.

Either whether we provide the services or whether the amount that we are willing to pay for those services is adequate.

Maybe that we're charging too much, I don't know.

For all of these departments the full year implementation of the public safety plan is reflected in this upcoming budget and so you see that spread out so that would also be true for fire rescue.

There also is a significant increase, $244,000 or 14.5% in support for volunteer agencies in support of their operating budgets, including operating maintenance that was identified previously.

I believe that's correct.

and so there is that additional support.

As you know that the fire rescue department also provides additional support for services that benefit the volunteers.

Turn out gear and training and fuel and fleet maintenance.

Also true?

Can I go back to Elise, if I may?

I saw Ron come in.

I had noted that there was an increase of almost $100,000 in new equipment.

Great question.

Ron Lance, Chief of Police.

What we do with the pistols is they have a five year service life on them.

So once we go trade them in with the manufacturer, we do get a value back on each pistol.

And what we're looking at doing is going from the .40 caliber, which the FBI recently did in a study, to a 9mm handgun because they're finding that folks that have trouble qualifying are actually increasing their scores with a lower caliber.

But it still has the same effect, if you will.

So that's what we're looking to do with those.

Yeah, absolutely.

Ron, while you're there and without, I don't want to belabor it because this is not really an opportunity to talk about it, but we have to think ahead of August 11th and 12th and there was a considerable amount of money that was spent again this year to prepare the county to participate in our MOU

That's the hope.

Mike Murphy reached out from the city to me directly and I think other members of the county and asked for help for planning, you know, law enforcement planning purposes as events go before they unfold.

So we've not got any requests asking us to be deployed with them in the city.

My hope is it's a normal weekend.

For that August, instead of like the last two years, and it's a, you know, for the county, we'd always be on a height as a police department, you know, looking at Fusion Center and looking at social media, things that we normally do well in advance of that weekend to make sure that we're prepared.

But my hope is that we're not spending 150,000 overtime, you know, again, if you will, like we did last year.

Not necessarily.

Mutual aid is basically they can call us to come help.

We can call them to come help.

And there's no cash given back.

But we can put parameters on how many people we can offer, which I did this past year with calls for service.

If you recall, we handled the first year calls for service, plus we gave them people and perimeter and things like that.

with the intelligence we got that there was going to be issues in the county, we had to pull back.

So I was able to explain to them they need to go outsource to non-neighboring jurisdictions.

And they did.

Through V-Dem, we got different resources.

So we didn't have to fill that capacity of handling calls.

But we could call them anytime to answer your question and ask for assistance.

And we have

I think one, since I've been here for six years, we've asked them for their SWAT team on a high risk incident.

The school resource officer wasn't funded last year.

If I remember right, it was a floating kind of position.

Is that still the case?

That's one that we were looking, what we would do, I mentioned this last year, if it was approved we would look at calls for service for all the middle schools.

If you remember I was mentioning that so they could determine where their primary focus would be.

Right now we currently have a floater that hits all the middle schools in the county.

Are you ready for a fire risk question before you get too far or do you want to finish this first?

This is about fire marshals and prevention code.

Are they all overtime expenses?

I just, there was somewhere in here in all this pink highlighting about rate increases in overtime for prevention, which I assume is the focal arms and visits and things like that.

So, but that's only overtime.

Thank you, John Oparandi, Deputy Chief with County Fire Rescue.

Yes, most of their activities, smoke alarm installs and stuff like that, are conducted during normal business hours.

However, if it's in the evening time, most of the time we can get an issue company to go take care of that.

Volunteer companies will also participate in

Smoke Alarm installs.

We provide smoke alarms to the volunteer companies so that they can put those up for free.

So the $100,000 in overtime is for something else.

And the other question is, under the unfunded request, again,

and it was development of the Volunteer Life and Service Award Program.

We've certainly been talking about things for recruitment and retention since 2008.

Yes, and Chief LaBelle was working on that with our volunteer FEMS board and our recruitment and retention committee bringing that thing to a close.

There was a lot of information still to be gathered and parts of that project that still needed to be completed.

I don't know if we have many more questions on public safety than we have public works.

I'm just checking into the board.

Are we okay to push through and get this all knocked out tonight?

That's right.

Page 107, on the inspections and building codes.

And I'm not questioning the decision, but I noticed that there were no unfunded requests.

So I'm curious, I mean it stood out as an inspection and building codes just over the past year listing conversations and concerns that I hear even from other supervisors.

for whatever reason, when I got to this page, it felt like it lumped up under here.

You know, when I look at a department and they're not requesting some items beyond what they need, or they satisfy where they're at, or we plug them along and we're right on the target.

But this seems to me to be an area where there's probably, now the bigger picture here is based on, if we're doing a revenue update in February, and monies come available,

Then you look to your unfunded requests, perhaps, to program some of that money, and if there's an area where there's not an unfunded request, do they understand what they're missing out beyond the Opportunity Act?

It may be because they're all fee-for-service.

They did add a position in fiscal 2018 to address the workload issues.

They also are very careful to not overstaff because of the need to balance that with the change.

So that could be the case too.

It stood out and kind of hit a different note than necessarily just that page or that department.

If you projected to kind of basically mark participants heavily, Mark Graham, our community development director, and participate heavily in the county's revenue team, they're not projecting a trend to have a repeat record here and building purpose next year.

And so while we certainly have added a position with that person becoming a board, gaining more capacity, we also have not seen a dramatic increase in the overtime of that division.

That would also suggest, I'm not saying they're not busy, because they certainly are, but given you worked with them last year.

That's a general answer I would give.

One thing that probably is not going to decrease however is inspections for erosion and sediment control because I'm always sending people hither and yon because of all the disasters going on.

Please update us on that as part of that question as well.

Those are not food collection things.

And I'll just add to what Ann's saying.

This is the office that would be impacted based on what we might do with Airbnbs.

In part.

So my question would be, that's just something to think about.

I'm just asking, just making a comment.

and on an annual basis maybe every other year.

And then for people that are in non-compliance, we establish a regime where if they don't fulfill the expectations, they lose their license.

And it takes the burden off of the police department.

It takes the burden off of the county and puts the burden and responsibility there.

We want to have a license to provide temporary housing that they must comply with the code.

But that's a very good point to bring up when we get into the discussion.

It's a reminder that there is no money in there.

Are there any other comments, questions for public safety?

No, I'm OK if you're OK.

I was sort of just, did you see the other significant increases associated with regional jail and emergency communication center?

Both of those reflect actual increases because of just budgeting the ECC, in particular because of a deliberate investment in staffing.

This function in our budget book is comprised of our facilities and environmental services department, along with our contribution to the Rivanna Solid Waste Authority.

I will provide a summary of changes from Public Works.

Lance Stort, our Director of FES, will be here to answer any detailed questions you have related to FES.

There will also detail on some of the significant changes with our Rivanna contribution.

I will note that FES is comprised of our Public Works Division, our Environmental Services Division, and formerly the Project Management Division, PMD, which is now the

College Planning and Construction Division, FPNC.

And I thought education was bad.

You all are just trying to keep up with the education.

So FPNC, that's the new acronym for the facilities project manager.

Notable changes on the next page.

Actually, not on the slide, but I'll say the board made some significant decisions in FY19 where we increased our levels of service in the building areas, especially the urban ring around mowing services or frequency of mowing.

And we've added in the on and off rates.

And so that is funding that we've increased in this year to the tune of about $108,000.

We've added street sweeping this year, a budget of $70,000.

We have not yet cracked that code.

We're working with the city.

We're trying to leverage their resources to-

started that work just yet, but that funding is in 19 and then we added a weekend litter pickup which started in FY18 as a pilot and continued in 19.

Through the jail, weekend work, yes.

I wanted to note also in this budget is $100,000 to support the climate action plan.

That is an operational number.

It's in 19.

As soon as VDOT fixes it and plans, the county is responsible.

The planners will be under county responsibility.

So other significant changes on the slide.

We have $150,000 in the proposed budget that is for customer service interaction and security in our county office building.

Jeff has referred to it as an ambassador position.

He talked a little bit about it in the budget presentation.

The idea is contract services that will provide front desk

with security and welcoming, a position that's downstairs that will help navigate folks, you know, be that frontline of support to help navigate, but also can be a response on security issues.

This building is open, if you recall my presentation on building security from the fall, we have 45 meetings on average a month that go well past normal work hours when most folks leave.

I think back to the old days when we were being in here and we had a button we could push that notified the police station downstairs.

I'm requesting to convert two and a half

temporary project managers that are in the FP&C division.

Those positions were approved back when the referendum was approved in FY16 to handle the additional volume of work.

What we found is that volume of work has continued and is projected for the next five years.

And so really, to maintain our current levels of service to manage that work, we need the conversion of those positions.

I've already talked about that, so I don't think I need to raise it.

There are some increases and decreases if you look in the budget book.

They have just tied the contractual services for our maintenance contracts.

We do have a maintenance division, but we contract a lot of our work, both for the facilities, maintenance, and our grounds.

But a lot of our long, long-term employees we kept because I know the first year they tried to contract over the last year and everybody said, oh, no, she's not doing that.

Jerry Schatz, long time chief of state.

He's retired, but he is.

We have some mishaps still.

Those are the highlights on the FES division, the department.

The Highlands Stewart, Director of Facilities and Environmental Services

The Rivanna Solid Waste Authority budget, I would say first and foremost that this was a very early, this budget is based on a very early estimate from Rivanna that came in December.

They do an initial wash based on a few basic assumptions about how operating costs are going generally.

The one major thing that they looked into at the time was the

that there had been the recent decision to reduce the tipping fees and so this includes sort of a worst case estimate.

There were no additional tonnage received and the county had to completely reimburse for 100% of the lost revenue then that would be accounted for.

As you all know that's much better than we could have anticipated so much so that we think it may offset the full cost of being able to open the facility on Mondays.

You agreed to ask about that just recently in today's Rivanna award meeting that was authorized.

So we'll be looking to do that in late March.

All that is to say we will be getting a revised budget estimate that's gone through their full vetting process.

Mr. Henry and I had a conversation yesterday with the management team of RSWA including their finance officer about how to

kind of come back to us with a budget to account for Mondays and account for the tipping fees in a way that's not overly optimistic but not assuming the worst case either.

Generally though I think we can still expect a pretty significant increase as you can see the operating budget

as submitted was a 43.2% increase.

Only 80,000 of that 362 was related to the tipping fees reduction revenue.

The remainder, there are a number of drivers, the lost revenue from some recycling streams that are now closed due to the China embargo.

We've bought additional

equipment for the transfer center, so we do have depreciation costs for that equipment.

They are requesting to move some temporary employees to full-time employees to help improve the service level and retention.

and then generally they've been holding down costs for the last couple of years in the operating side and capital side by using fund balance.

They were fairly aggressive and the difference between last year and this year across both the operating capital that was contributed by them last year to hold down costs that will be this year's

approximately $390,000.

So I think we can expect to see an increase when that budget is realized.

Yes, ma'am.

And my understanding is that you did talk to them about next year getting the budget earlier.

And just one funny thing for the board to know, which I thought was amazing, is that apparently they're unable to take time and have an attack on the truck to take bleach out.

They're replacing their 1940s-ish tanker truck, which I thought was just amazing.

I said, so were you all 1940s?

Okay, that concludes our slides.

We have just a couple wrap-up slides.

We did talk about policy considerations, items that you might want to take out or add to the budget.

We heard a lot of questions from you.

I don't think we're going to go through a full report out of all the questions.

We have great notetakers back here to follow up on any of the follow-up questions that you have that will be information back to you.

Our next steps is this Thursday.

We meet again on the 28th for a revenue update and we will continue through the General Government functional areas.

We'll make good progress tonight.

I appreciate everyone's attention and good questions and involvement in this work session.

I would first ask the board, Mr.

Chair and members of the board, you've given us a tremendous amount of your day today.

Do you have final questions about anything that we've covered tonight?

We spent two-thirds of our time in the capital fund and we predicted that, and we kind of ran through the operating area real quick.

But note for next year to dedicate debt management and the CIP into one session on it.

And then start the next session with the administration.

I think it's a lot for everyone.

Regarding CIP for next year, also I had mentioned to Maureen how I totally missed the whole scheduling because I wasn't on the CIP for the first time in a long time and so to put out the invitation by notifying everybody on the board on the dates in hopes that

I sit around and email for thought and would like to just raise it officially and then we can talk about it at an upcoming meeting about

resolution of support for the naming of the bridge on Brookmeyer on the river of Brown Mills Bridge, which was a suggestion which came from the Historic Preservation Committee after months and months of stewing around with all the different options of the geography being the most important so people would actually know where it was.

I have something and I'm just going to read it because the Almar High School Jazz Band has been invited to participate in the Swing Central Jazz Competition during the Savannah Music Festival, which is a big deal.

They're one of only 12 high school bands in the country that were invited.

So they have, the Almon High School Jazz Band will have a fundraiser swing into spring benefit concert for this trip and it's at the Jefferson Theater on Sunday, March the 10th.

So I'm saying put it on your calendar because it really will be a good concert.

7 o'clock.

7 o'clock.

Again, Jefferson Theater Sunday, March the 10th.

John Durr, Terry Allard, Stephanie Mukasey, and all of those folks that we, plus that wonderful Albemarle jazz band.

And I think you could probably get more information about it if you needed it.

I would think the Albemarle High School website probably has something, but

I'm sure if we contacted any of the people who know the school board or the administration, they could help you if you had some questions.

Yeah, we did.

And I'm saying it as much as anything because I'd love for it to get out in the public because we want a full house.

We want these kids to be able to make lots of money.

The transit information.

not just the ones that are still here but the ones that were here earlier today.

Their cars were in the parking lot this morning in most cases before 8 o'clock and so they've had terribly long days.

A lot of our staff too have small children and I'd like to thank our staff for hanging in there this evening and for the families at home that are helping to support that.

Mr.

Chair, I have one thing.

The board will recall last week and gave the authority to send a letter to the governor asking him to veto a BZA related bill that was going to authorize

require that the required vote for certain museum decisions be lowered.

We have a letter that's ready to go.

David Blunt asked us to hold off until the governor actually gets the bill.

So it doesn't get lost?

I've learned today also that Bay Co. is floating a compromise position that would make it a local option so that the governing bodies could adopt an ordinance, presumably if they wanted to, to lower the standard.

We've discussed it in our office and with the zoning administrator and we don't have a concern with that as long as everything is local.

I think that's right.

The bills, I guess, are staggering when they're sent over to the governor.

The scary part is if we wait, then he signs them, because he didn't know.

That's, you know, I'd rather send multiple letters, frankly.

One early, one middle, one late.

That's a worry.

Claudette, I'm seeing this note about further discussion on the closed meeting for Thursday.

At last week's budget work session, the board has set aside some time for the work session.

And the time, I believe, was one o'clock.

That was in my notes.

We do have

up to four items to go over with the board.

One of the items we'd like to do is spend sufficient time with you.

The others are primarily updates at this point.

There's some issues that have arisen.

One.

Yes.

It's going to be a long day, because we have the transit stuff in the evening.

It's Thursday.

Yeah.