Board of Supervisors Adjourned Meeting (Budget Work Session #1)   2/25/2020

1. Call to Order.

• • SPEAKER_07
  • 00:00:48
    2020 budget work session.
  • 00:00:49
    Good evening, everyone.
  • 00:00:52
    I'd like to introduce, we'll just introduce everyone.
• • SPEAKER_08
  • 00:00:56
    While we go around the table, it gives us a chance to remind ourselves that the microphone is above us, and that in this room, we do have to speak and enunciate clearly.
  • 00:01:05
    So I'm going to just work our way around the table real fast.
  • 00:01:07
    Will you start?
  • 00:01:09
    Yeah.
• • SPEAKER_19
  • 00:01:09
    I was going to say, years ago, I tried to introduce everybody and I forgot
• • SPEAKER_17
  • 00:01:25
    Miller, Samuel Miller, Bea LaPisto-Kirtley, Rivanna District.
• • SPEAKER_20
  • 00:01:30
    I'm Lori Alsos, the Director of the Office of Management and Budget.
• • SPEAKER_10
  • 00:01:33
    Andy Bowman, Office of Management and Budget.
• • SPEAKER_04
  • 00:01:35
    Doug Walker, Deputy County Executive.
  • 00:01:37
    Jeff Richardson, County Executive.
  • 00:01:39
    Trevor Henry, Assistant County Executive.
  • 00:01:41
    Brett Kamler, County Attorney.
• • SPEAKER_08
  • 00:01:44
    Are we good?
  • 00:01:46
    And then with us tonight we have Officer Mitchell Saunders and Officer Laura Prophet.
  • 00:01:49
    Thank you both for being here and I've done the reminder to talk clearly and not down to our

2. Work Session: FY 2020-2021 Operating and Capital Budget.

• • SPEAKER_08
  • 00:01:58
    Let me ask the question.
  • 00:01:59
    So today we're going to start with the operating capital budget remedies expenditures.
  • 00:02:03
    Would it throw the board members off if we had the school division go first?
  • 00:02:07
    No.
  • 00:02:08
    Would that be a problem for anybody?
  • 00:02:10
    There is a function they would like to try to attend tonight.
  • 00:02:12
    Sure.
  • 00:02:13
    So it was a soft request.
  • 00:02:14
    And I think if there is, I hate to just throw you guys right at it.
  • 00:02:17
    I didn't tell them for sure yet or not.
  • 00:02:19
    But if that doesn't throw things off, is there anything
• • SPEAKER_05
  • 00:02:29
    We go ahead and invite fighters would you like for our school board members to be making their way up here and you can do your two intro slides so John if you guys would go ahead and join us
• • SPEAKER_20
  • 00:02:57
    We start these work sessions with a schedule slide to share with you how we're going to be flowing this along.
  • 00:03:04
    So you can see today is the 25th.
  • 00:03:06
    We're going to talk about overviews of revenues and expenditures.
  • 00:03:10
    We're going to talk about a chapter that we call non-departmental.
  • 00:03:14
    So that's another basic overview.
  • 00:03:16
    The school board will be providing their requests and then we'll be talking about the capital budget at the end.
  • 00:03:21
    So before the schools begin I wanted to share two more slides.
  • 00:03:26
    One is just a little bit about what our work session process is.
  • 00:03:30
    So here's how it works.
  • 00:03:32
    So along the way it's an interactive approach.
  • 00:03:36
    So staff or a school board will be presenting information and then the board can have dialogue along the way.
  • 00:03:42
    So it is something we present first and then you speak.
  • 00:03:44
    It's really interactive.
  • 00:03:47
    When the board member wants more information that we can't provide right on the spot, we're going to put it on a list.
  • 00:03:53
    So you'll see a lot of staff people taking notes and writing down questions, and we'll be getting that information back to you just as soon as we can.
  • 00:04:00
    If you have an item you want to talk about with your board members later, you also say that.
  • 00:04:05
    So you could say, this is on the list for information.
  • 00:04:07
    This is on the list for information, and I want to have a discussion about it later.
  • 00:04:11
    So it kind of really tags the ones that we want to bring back to you in a further work session.
  • 00:04:15
    And then you finalize.
  • 00:04:17
    This is the county executive's recommended budget.
  • 00:04:19
    You will finalize your board proposed budget on March 5th.
  • 00:04:24
    So this will become the county executive's recommendation into your proposed budget and that goes out for another public hearing.
  • 00:04:30
    So that's basically how we're going to be working between now and March 5th.
  • 00:04:35
    We'll be completing your discussion.
  • 00:04:36
    You'll finalize direction.
  • 00:04:38
    You'll finalize the proposed budget and determine a tax rate for advertisement at that time.
  • 00:04:43
    So here we go.
  • 00:04:44
    So today's agenda, and we will switch it up a little bit, but we have a three-hour agenda today.
  • 00:04:50
    We're going to first listen to the school division's request.
  • 00:04:53
    and then we're going to talk in just some general overview of revenues and expenditures and talk about a chapter we call non-departmental.
  • 00:04:59
    We'll have a break along the way at an appropriate time when you'd like to take a break and then the whole rest of the evening will be spent on the CIP and capital budget.
  • 00:05:08
    So without further ado we'll turn it over to the school board and I think your staff will come up to change the slides.
• • SPEAKER_06
  • 00:05:21
    Thank you, Laurie, and thank you for the flexibility in this.
  • 00:05:25
    We also thank you for allotting us 45 minutes.
  • 00:05:29
    We will be taking a fraction of that.
  • 00:05:32
    So thank you, Dr. Chair, Madam Vice Chair, and all the other members of the Board of Supervisors, and on this side, all of the distinguished people from the county departments.
  • 00:05:43
    Thank you for having us.
  • 00:05:45
    and we also appreciate this opportunity to present the school division's funding request for the 2021 fiscal year.
  • 00:05:54
    Vice Chair Graham Page and I will co-present this evening and staff are on hand to help answer any questions you may have following the presentation.
  • 00:06:04
    You may very well recognize the theme of our funding request.
  • 00:06:08
    A work in progress has served as a recurring theme for the school division this year, from our five-year financial forecast to our annual State of the Division report and now our funding request.
  • 00:06:22
    The phrase comes from our belief as a public school system that the core of our work is about generating progress.
  • 00:06:31
    Not only that, but we also believe that improvement is always possible.
  • 00:06:36
    And it's this aspiration that guides our decision making.
  • 00:06:40
    Mr. Page.
• • SPEAKER_01
  • 00:06:42
    Good evening, Chair Galloway, Vice Chair Price, the supervisors, and also county staff.
  • 00:06:48
    For your reference, Albemarle County Public School currently serves 14,435 students in Pre-K through Grade 12 with a staff of 2,647.
  • 00:06:53
    We employ 1,344 teachers and 1,303 classified employees.
  • 00:06:55
    Our students hail from 96 countries and speak 81 different languages at home.
  • 00:07:13
    About 30% of our students are economically disadvantaged.
  • 00:07:17
    Nearly 13% receive special education services and 10% are English learners.
  • 00:07:23
    Each school day, our school cafeterias serve about 8,000 meals and 64% and I mean our buses travel more than 14,000 miles to transport our students.
  • 00:07:35
    Last year, 94.4% of our high school seniors graduated on time.
  • 00:07:40
    and 64% of those graduates earned an advanced studies diploma.
  • 00:07:45
    Also last school year, we saw growth in the Numa Pass School students who participated
  • 00:08:07
    Each year the school division is required by the Virginia Department of Education Standards of Quality to provide certain instructional programs and support services.
  • 00:08:16
    From that point, every budget decision is framed by our strategic plan and influenced by a variety of division reports.
  • 00:08:27
    Audio is a little bit off here.
• • SPEAKER_19
  • 00:08:32
    This is going to go really fast.
• • SPEAKER_01
  • 00:08:34
    I know.
  • 00:08:41
    Our budget decision is framed by our strategic plan and influenced by a variety of division reports, strategic school and departmental improvement plans, funding proposals submitted by school and department leaders, and input from the community through such venues as community surveys and citizen advisory committees that provide valuable insight and guidance.
  • 00:09:11
    As we look toward next fiscal year, our projected revenues appear healthy.
  • 00:09:16
    We are anticipating a revenue increase of $13.8 million over the current year, which brings our total revenues to $209.3 million.
  • 00:09:25
    Consistently, the largest share of our revenues each year comes from local sources.
  • 00:09:30
    We owe a big thank you to our county residents for their vital annual support.
  • 00:09:36
    The remainder of our revenues come in large part from the state.
  • 00:09:40
    And it's notable that we are anticipating a sizable increase in state revenues next year, an impressive 14.3%, which equates to over $7.2 million.
  • 00:09:46
    Mr. Alcaro.
• • SPEAKER_06
  • 00:09:54
    The school division, like the county, is pleased to present a balanced funding request for the next fiscal year.
  • 00:10:01
    We're putting forth a needs-based funding request of $209.3 million to meet the comprehensive needs of our students and our employees.
  • 00:10:13
    The overwhelming share of our total expenses, nearly 87%, is allocated to staffing, which is the cost of employee compensation and benefits.
  • 00:10:27
    Our funding request for next year includes a $13.8 million amount in new expenses.
  • 00:10:35
    We group those expenses into four categories, the first of which is on the screen, non-discretionary and directed expenses.
  • 00:10:45
    On the screen are some examples of some of these types of expenses.
  • 00:10:49
    Our increase in this area totals just $800,000 and comprises only 6% of our total increase.
  • 00:11:01
    35% of our increase, $4.8 million, is due to our second category of new expenses, growth and demographics.
  • 00:11:11
    Student enrollment growth and demographic changes have created a need to hire a pretty remarkable number of new teachers next year, almost 50 in total.
  • 00:11:24
    Student growth doesn't just affect classroom staffing, however, we've also budgeted
  • 00:11:30
    funds for hiring additional bus drivers and custodians.
  • 00:11:37
    Regarding overall student enrollment growth, in the current school year, we enrolled 300 students, more than we projected and budgeted for.
  • 00:11:49
    When we combine those 300 students with the 200 additional students we're projecting for next year,
  • 00:11:56
    We're facing a budget-to-budget increase of 500 students.
  • 00:12:02
    And to put that in some perspective, that's almost 3.5% growth in the school division between last year's budget and this year's budget.
  • 00:12:12
    Mr. Page.
• • SPEAKER_01
  • 00:12:13
    Over the last five years, we have experienced a 5% increase in overall student enrollment.
  • 00:12:20
    In that same time frame, special education enrollment has increased by 32%.
  • 00:12:25
    That's an additional 472 students in need of special ed services.
  • 00:12:31
    It's worth mentioning that in addition to serving more children with disabilities overall, we're also seeing an increase in the severity of the disabilities we serve and both are factors that influence staffing needs.
  • 00:12:49
    Over the last five years, we've seen a
• • SPEAKER_06
  • 00:13:25
    Comprising the largest share of our increase, 56%, is our third category of new expenses, compensation.
  • 00:13:36
    $7.8 million of our increase is allocated to a salary increase for both teachers and classified employees, as well as an increase in our minimum wage.
  • 00:13:47
    I'll note that we currently employ about 500 people
  • 00:13:54
    We sincerely hope we'll be able to make such a significant investment in our employees.
  • 00:14:06
    The last of our four categories of new expenses allows $400,000, or 3% of the increase, to fund four proposals in support of our strategic priorities.
  • 00:14:18
    Three of these proposals are expansions of proposals approved last budget season, and one of the four proposals is new.
  • 00:14:27
    The three expansions address staffing for our Elementary World Language Program,
  • 00:14:34
    the scope of our short-term education program, which you may know as STEM, and expanding counseling and mental health services.
  • 00:14:44
    On this last point, in the last couple of months, I've visited 23 of our 25 schools and spoken with the principals about what are the top priorities facing them.
  • 00:14:56
    And in all 23 cases, the answer was mental health.
  • 00:15:01
    So we're trying to adjust that, and not just for students, but for teachers and for families.
  • 00:15:08
    So it's a big issue.
  • 00:15:09
    We're trying to move forward with expanding our services to all of those groups.
  • 00:15:16
    The single new proposal we've selected to fund creates additional seats, up to 150, for our ADEP after school child care program for students who qualify
• • SPEAKER_01
  • 00:15:35
    Okay, so again, our supervisors, we really thank you for allowing us to make our presentation.
  • 00:15:41
    You see on this slide that our total revenues and our total expenses are balanced.
  • 00:15:47
    So we are delighted to present to you a funding request that is balanced this year.
• • SPEAKER_06
  • 00:15:52
    And we thank you for your support of our daily efforts to unleash the potential of every single child in our care.
  • 00:16:00
    Thank you all.
• • SPEAKER_07
  • 00:16:09
    Those questions.
• • SPEAKER_06
  • 00:16:45
    without looking at the book, I'm not sure what you're looking at.
  • 00:16:50
    But our expenses are balanced.
  • 00:16:54
    Oh, that's appreciated.
  • 00:16:56
    That's an old slide.
  • 00:16:58
    Sorry.
  • 00:16:59
    I didn't know that was still in there.
  • 00:17:02
    But the gap has been closed.
  • 00:17:03
    OK.
  • 00:17:04
    Thank you for that question.
• • SPEAKER_03
  • 00:17:06
    Another area that I've got, though, is I understand
  • 00:17:21
    That's definitely on our radar screen as well and that's something that I think we'll be talking throughout the year involving CIP advisory committee and and other
• • SPEAKER_06
  • 00:17:49
    But that's very much on our forefront.
  • 00:17:53
    We could bowl you over with a number of the things we'd love to be doing over the next five years.
• • SPEAKER_01
  • 00:18:00
    And also the work that we'll be doing at the centers will take care of some of the excess students in the high schools.
  • 00:18:06
    Right.
  • 00:18:07
    So that would take care of part of the overall level.
  • 00:18:09
    Of high schools, but we've still got the middle and elementary.
  • 00:18:11
    Right, middle and elementary.
  • 00:18:12
    Yes, definitely.
• • SPEAKER_02
  • 00:18:21
    We've closed this
• • SPEAKER_20
  • 00:18:45
    Yes, that's our five-year financial planning process that we do together in November.
  • 00:18:50
    And that was prior to some revenue updates that we received.
  • 00:18:53
    We still keep the information in the book to provide some historic information on the five-year planning process that we had.
  • 00:19:00
    So it's a timing thing.
• • SPEAKER_06
  • 00:19:11
    Currently we're getting an additional $7.2 million this year from the state.
  • 00:19:19
    As you know, that can ebb and flow.
• • SPEAKER_17
  • 00:19:34
    starting the increased enrollment.
  • 00:19:37
    I know you said we have newcomers and that.
  • 00:19:39
    How much of that is based upon, because we have a base here in the military, because from what I understand, sometimes they don't always let us know when children are coming in and families are moving here, and then all of a sudden the school realizes, oh my gosh, we've got this influx of additional students.
  • 00:20:07
    How many people are you anticipating so that you all have an idea so it doesn't overcrowd one school?
• • SPEAKER_06
  • 00:20:16
    I don't know if we're talking directly to the military, but our staff is using all sorts of different tools to do those projections.
  • 00:20:26
    Where some of those data come from, including ones from the military, I don't know that I can answer, but I can find out for you.
  • 00:20:34
    We've had the 300 extra students came.
  • 00:20:39
    It wasn't just military.
  • 00:20:40
    Baker Butler got a very large number of students.
  • 00:21:00
    had 80 to over 100 students a year come and go during the year so the transition population
  • 00:21:15
    I was talking with Kristin Williams who's now at Woodbrooke and they've gotten a lot of the career students but they've also gotten that particular issue that's moved over to them and they're expecting possibly as many as 80 during this school year to have come and gone.
• • SPEAKER_19
  • 00:21:34
    So don't think that, and I don't think that that problem is going to wait until we're complete.
  • 00:21:41
    I'm just saying I don't think it's really moved to
  • 00:21:44
    I think what's happened is more schools are seeing that in the urban array rather than it's just moved from one school to another.
  • 00:21:54
    Other questions?
• • SPEAKER_03
  • 00:21:55
    Nope.
  • 00:21:56
    Let's get in and move on.
  • 00:21:59
    I'll ask one minute.
  • 00:22:00
    Go ahead.
  • 00:22:00
    Another area of questions, special education students.
  • 00:22:04
    Do you have a sense or can you tell us in two respects how many students and what cost we are incurring
  • 00:22:14
    for special education students that we are not able to provide in Albemarle County and have to transfer to another location, if any.
• • SPEAKER_06
  • 00:22:26
    Maya, can you jump in on that?
• • SPEAKER_14
  • 00:22:29
    Are you talking about residential and residential day placements, like the Children's Services Act?
• • SPEAKER_03
  • 00:22:36
    Well, I don't know enough to say that's exactly it.
  • 00:22:39
    But I know, for example, in a neighboring county, a mother who
  • 00:22:46
    and the county has to pay for that student to go to Richmond for education.
  • 00:22:52
    What kind of expenses are we facing here for similar situations, students that we are not able to accommodate, provide the education here and we have to transfer to other jurisdictions?
• • SPEAKER_06
  • 00:23:02
    Without being able to give you a specific dollar amount, we have fewer of those cases than we have had in the past.
  • 00:23:17
    We have people who are in day schools and then we have people who are in permanent residence.
• • SPEAKER_14
  • 00:23:25
    We have about two million dollars budgeted for the Children's Services Act, which is a fund that places, yeah, outside of the county.
  • 00:23:33
    And that is a little bit, has decreased since this current year's budget.
• • SPEAKER_02
  • 00:23:52
    My question is actually on the same subject, so maybe I could just quickly go in and ask.
  • 00:24:01
    We have heard in the past, we talk about the special ed situation every year, that the school system does such a great job in taking care of the special ed kids that we assume that some people are actually moving here to take advantage of the
  • 00:24:23
    How does that funding work, though, when we go up 32%?
  • 00:24:27
    I think you said, I can't remember the exact percentage.
  • 00:24:30
    But in the number of students here, I don't quite remember how the funding works for that.
  • 00:24:37
    And you mentioned the Children's Services Act.
  • 00:24:43
    Is it one for one, or do we reach another category where we have so many that
• • SPEAKER_14
  • 00:24:54
    So the state funds a portion of the cost for special education services.
  • 00:24:59
    It's not one for one.
  • 00:25:00
    It's a ratio and it's a complex formula.
  • 00:25:03
    But as our numbers increase, that state revenue also increases.
  • 00:25:08
    So they're in correlation with each other.
  • 00:25:13
    One of the things involving the state funding that we've been able to work to our advantage is that we were
• • SPEAKER_06
  • 00:25:33
    And actually, Kevin Kirst, who is our head of special education, has been able to bring a lot of the services that we've paid for through PrEP over the last few years in-house so that we no longer have a middle person expense in there.
  • 00:25:53
    So it's costing us less overall.
  • 00:25:56
    It's increasing some of our payroll, but it's costing us less overall in a net base
• • SPEAKER_19
  • 00:26:11
    So we still have children though at Ivy Creek and still have children that we're serving through PrEP.
• • SPEAKER_06
  • 00:26:20
    It's not, I'm just saying it's evolving.
• • SPEAKER_19
  • 00:26:23
    Yeah, because I was over there in that building and around on the grounds not too long ago and it has obviously changed.
  • 00:26:31
    PrEP has moved and since I was on the school board it's moved.
  • 00:26:35
    And I was just surprised so that's why I was asking the question when you said that.
• • SPEAKER_06
  • 00:26:42
    I just have a quick question.
  • 00:26:43
    I'm not exactly sure How to get at it, but you're a slut on changing demographics
• • SPEAKER_19
  • 00:27:06
    in your increase in special ed, but you really highlighted 172% English learners, newcomer registration.
  • 00:27:16
    And we all know that you all are looking at classrooms and schools through that equity.
  • 00:27:21
    We do know that equity doesn't mean equal.
  • 00:27:26
    We're talking about services.
  • 00:27:28
    So I guess I would love to know
  • 00:27:33
    where these special ed students are and where these newcomer registration, what you're calling the 172%, where are they going?
  • 00:27:45
    Are they going to the Western feeder pattern?
  • 00:27:47
    Are they going to Monticello feeder pattern?
  • 00:27:50
    Are they going to Elmore High School?
  • 00:27:52
    Where are they showing up?
  • 00:27:53
    What schools are seeing the greatest impact, I guess is what I'm saying, from those students?
  • 00:28:02
    I'd like to see the data for that because as we're looking at the Landsland campus through an equity lens, highest poverty, and most diversity.
• • SPEAKER_08
  • 00:28:35
    My question is around the EDEP accessibility.
  • 00:28:40
    That's one of your add-ons, the 87.
  • 00:28:41
    It's not so much about the expenditure.
  • 00:28:44
    If the answer is not today, we could perhaps provide it later.
  • 00:28:48
    Since I left the school board and came to the supervisors, one of the school issues that has continued to come up for me is the lack of the ability to serve students after school.
  • 00:29:02
    So this one caught my eye, and great that there's 70 additional students there, especially for, looks like it's targeting those who are in the greatest need from an economic standpoint.
  • 00:29:14
    But I think that the context is that 70 doesn't solve the problem by any stretch.
  • 00:29:20
    It helps.
  • 00:29:24
    We can get some additional data on that.
  • 00:29:26
    The range is 77 new seats to 150.
• • SPEAKER_19
  • 00:29:54
    I guess just Ned to kind of add to that, my concern about just using the waiting list because I represent a lot of folks who never even bother to click it on the waiting list because they can't afford it to begin with.
  • 00:30:12
    So you have a huge number of children at Greer Elementary School that aren't served at all.
  • 00:30:17
    Not that it's necessary.
  • 00:30:18
    I'm just saying they're not served.
  • 00:30:20
    They're not on the waiting list because it's impossible for the parents.
  • 00:30:24
    And that gets to, of course, and that's another topic, but the Boys and Girls Club that's going to go in over on the Landsland campus will most likely help solve some of that for those families.
  • 00:30:36
    But not all of them.
  • 00:30:37
    So Ned, what I'm getting at is the waiting list.
  • 00:30:40
    While it's a place to start, it's not the... I just want to make another operational change that will happen this year.
• • SPEAKER_09
  • 00:30:48
    Like you said, some people don't even apply, whether they can afford it or they know there's no chance.
  • 00:30:52
    So another operational change they're going to make is all going to be lottery system.
  • 00:30:56
    It's not first come, first served.
  • 00:30:58
    And so by doing that with a robust communication plan around, if you can't afford it, you can still get a spot.
  • 00:31:05
    and you combine that communication plan with a lottery system, you're gonna get a lot more data of need.
  • 00:31:10
    And so we know what our waitlists are now, we know our waitlists are not an accurate thing.
  • 00:31:14
    So I think this year when we do, we change how we advertise it and how we register kids so we're gonna get a more accurate list of who really needs it.
  • 00:31:23
    And we totally acknowledge that the number of seats added is gonna only take a chunk out of it, but it's a start.
• • SPEAKER_08
  • 00:31:28
    Yeah, that's interesting.
  • 00:31:29
    I had a parent who said they were on the phone or the internet or whatever to register.
  • 00:31:34
    The other was on a different one somewhere else.
  • 00:31:37
    They were there like ahead of time, 30 minutes.
  • 00:31:40
    When it clicked over, you would have thought it was some major concert coming through and both got boxed out and couldn't get in.
  • 00:31:46
    It's an excellent point that there are some, when you said, that aren't applying just because they know they'll never get in.
  • 00:31:53
    It's like, oh, yeah, you're right.
  • 00:31:54
    We don't know what the true demand is.
• • SPEAKER_19
  • 00:31:56
    Or they know they couldn't even afford it.
• • SPEAKER_06
  • 00:32:00
    And there are some who never knew about it because when Dr. Acuff and I were over at Barracks West and we were talking with some of the parents there,
  • 00:32:07
    They've never heard of any after school programs of any sort whatsoever.
• • SPEAKER_19
  • 00:32:14
    So there's a lot of education that still needs to take place.
  • 00:32:18
    So any time I hear a lottery, I always worry about a lottery.
  • 00:32:20
    But I guess you all are handling it enough.
  • 00:32:23
    I get the point.
• • SPEAKER_09
  • 00:32:24
    It sounds like a lottery.
  • 00:32:26
    The example that Chair Galloway made, you have to have this instantaneous thing.
  • 00:32:30
    So we piloted it this year at Hersey and Brownsville, where it was open for a week.
  • 00:32:34
    and so that working parents could do it at their convenience, not at middle of the day.
  • 00:32:40
    And then there's a technology piece that they would randomize and select.
• • SPEAKER_19
  • 00:32:44
    But the parents at Crozet and Brownsville are very different than the parents at some of the urban ranked schools.
  • 00:32:51
    You have language challenges, you have access.
  • 00:32:54
    I'm just saying.
  • 00:32:56
    Great.
  • 00:32:57
    Thank you.
• • SPEAKER_17
  • 00:32:58
    And not everyone has internet access or maybe even there's a language barrier to be able to get their kids in so I applaud any kind of outreach you can do to reach all of our families.
  • 00:33:12
    And I also wanted to know whether or not you have, one of my big issues also is
  • 00:33:23
    We had the Bright Stars program, but do you see that there is a need for additional pre-K?
  • 00:33:28
    I think we have someone speaking to the board that said that they didn't feel there was an additional need, which I find interesting.
  • 00:33:38
    But do you all feel that there is a need for additional pre-K funding?
• • SPEAKER_06
  • 00:33:44
    Personally, I think there is.
• • SPEAKER_09
  • 00:33:50
    It's my understanding, I've heard similar, that most of the waitlist has been filled, but it goes back to that, what families are we not reaching?
  • 00:33:56
    Because you're still serving at 730 to 2, we don't have the aftercare, you're not serving in the summer, so again, I don't think, while our programs may be fully met, I don't think we fully met the needs of the community.
• • SPEAKER_19
  • 00:34:08
    Do you ever felt the governor and the general assembly are talking?
  • 00:34:16
    Isn't there some discussion in Richmond around the P3K?
• • SPEAKER_09
  • 00:34:22
    We don't have programs at full countywide either.
  • 00:34:25
    So the programs we have, we're meeting the demands of the programs we have.
• • SPEAKER_08
  • 00:34:29
    Did you want to add something, Phyllis?
  • 00:34:31
    You're welcome to.
• • SPEAKER_16
  • 00:34:34
    Just to echo that.
• • SPEAKER_07
  • 00:34:35
    Identify yourself.
• • SPEAKER_16
  • 00:34:36
    Oh, excuse me.
  • 00:34:37
    Phyllis Aviles, Director of Social Services.
  • 00:34:40
    So we don't have a preschool classroom in every school.
  • 00:34:44
    So what that means is that we're not covering the jurisdictions where we don't have a classroom.
  • 00:34:51
    And also, I know at the state level, there's an interest in going down and serving three-year-olds.
  • 00:34:59
    And of course, we don't have three-year-olds in our public classrooms.
  • 00:35:02
    I think Head Start serves some three-year-olds.
  • 00:35:05
    So I think the short answer is
  • 00:35:07
    Within the jurisdictions where we have a classroom, we don't have a waiting list.
  • 00:35:12
    However, we're not serving the entire campus.
• • SPEAKER_17
  • 00:35:15
    So were you able, this important time, to let us know how many schools don't have a pre-K program, and then also what funding mechanism from the state would be used to fill some of that, or that we could increase the Bright Stars program for either this year or for next year?
• • SPEAKER_16
  • 00:35:41
    It's a space issue.
  • 00:35:43
    And I may need to defer to you on this.
  • 00:35:46
    There is a formula at the state that they use to determine how much money a county is eligible for in terms of the Virginia preschool initiative.
  • 00:35:56
    And that's based on the composite index, right?
  • 00:36:00
    And my understanding is that we've reached our limit for that.
  • 00:36:05
    So I don't know that we can draw down additional state dollars through the VPI
  • 00:36:10
    unless something changes in that formula or the calculation changes.
  • 00:36:16
    Or unless we go to three-year-olds?
  • 00:36:19
    Well, I think that the composite index is what it is.
  • 00:36:25
    And so again, I'm talking about the formula that the state calculates.
  • 00:36:30
    I don't know how they look at serving three-year-olds and whether that changes the total amount that we
• • SPEAKER_17
  • 00:36:41
    So what you're saying is some of the schools wouldn't have necessarily have room for pre-k.
  • 00:36:46
    That's true.
  • 00:36:47
    So then if enrollment increased, that school wouldn't have for let's say K-6 or K-5, that school wouldn't have room for increased enrollment at that school either, correct?
• • SPEAKER_08
  • 00:37:01
    Right.
• • SPEAKER_19
  • 00:37:02
    If there was some magic and cherry dust happened and the state said we're going to
  • 00:37:07
    Give everybody money, and you can start your three-year-old program.
  • 00:37:11
    We wouldn't have space to put them right now.
  • 00:37:12
    That's true.
• • SPEAKER_02
  • 00:37:14
    We also, just to throw this out for information for our new board members, a couple of years ago, we closed Yancey Elementary, which had a Head Start program and a after-school program.
  • 00:37:28
    And some of those people have been able to find other
• • SPEAKER_13
  • 00:37:49
    Thank you very much.
• • 00:37:51
    Lori, thank you for your flexibility.
• • SPEAKER_17
  • 00:37:53
    Appreciate it.
• • SPEAKER_08
  • 00:37:55
    Have fun tonight.
  • 00:38:00
    And of course if you, the supervisors, think of a question after tonight, can we direct those two, should we direct those towards Lori and you'll go ahead and work through Rosalyn?
• • SPEAKER_07
  • 00:38:09
    I'm sorry?
• • SPEAKER_08
  • 00:38:10
    If there's any question, then follow up
• • SPEAKER_20
  • 00:38:29
    We're going to proceed, if you go back to our, we have a copy of our presentation in front of you, you have two, if you go back to the set that we had provided as well, we're going to pick up on the second page of it, if you want to follow up.
  • 00:38:45
    So basically what this section is about, this is just some overviews of some of your earlier chapters in your document.
  • 00:38:53
    So you've seen this slide.
  • 00:38:56
    This basically says that our budget is balanced on the current tax rate.
  • 00:39:01
    It does meet mandates and obligations.
  • 00:39:03
    That's one of the first things we do in the Office of Management and Budget is make sure we're meeting our obligations.
  • 00:39:09
    It focuses on the community infrastructure, equity, and working differently.
  • 00:39:13
    It funds the CIP Advisory Committee's recommended projects, and we'll be talking about that later this evening.
  • 00:39:20
    And it supports our community partners and agencies.
  • 00:39:22
    We'll hit some highlights on our partners and agency funding tonight, and just that there's some summaries, but the details we provided on March 3rd.
  • 00:39:32
    So I wanted to bring this to your attention.
  • 00:39:35
    We talked about it a little bit at our last meeting, that we have added an efficiencies of organizational improvements area.
  • 00:39:42
    So I just wanted to bring that to your attention.
  • 00:39:43
    We organized it in these five categories, process improvements, customer service, fiscal responsibility, maximizing employee time, which is really about efficiencies of employee's time, and energy efficiency.
  • 00:39:56
    So I just wanted to touch on that.
  • 00:39:58
    We're not going to go into great details, and I hope you have
  • 00:40:01
    I enjoyed reading that chapter.
  • 00:40:04
    So you may have heard people talk about our overall budget, the total funds budget.
  • 00:40:10
    So when you hear the term total budget or all funds budget, that's when we combine our capital funds, our general fund, our schools fund.
  • 00:40:18
    It's a requirement that we put it all together.
  • 00:40:21
    And so our all funds budget has decreased 1.3%.
  • 00:40:26
    And so I just wanted to share with you why it decreased.
  • 00:40:29
    Because the capital and debt funds are included there, those particular funds change just a little bit based on timing of debt and timing of when capital projects come in and out.
  • 00:40:39
    When we fund a capital project, we put all the funding in as an appropriation because to do contracts and things, you need to do that.
  • 00:40:47
    And then the next year, we may have a different set of projects.
  • 00:40:50
    So that's why the all funds budget looks a little
  • 00:40:52
    I just wanted to bring that to your attention and we're going to talk mostly about what we call the general fund but when you hear people talk about all funds and the budget the larger budget when we pull everything up there is a change that's just a very slight decrease.
  • 00:41:06
    So now I'm gonna move to revenues and expenditures a little bit, and I'm bouncing around a little bit, but basically I'm staying in these broad categories that we talked about.
  • 00:41:14
    We have a revenue chapter, and we have a broad expenditure chapter.
  • 00:41:18
    So I'm gonna start with the general fund revenues.
  • 00:41:21
    The revenues are projected by our finance department, and we have finance representatives here to answer any specific questions you may have about revenues.
  • 00:41:29
    I'm gonna hit it at a very high level, and then if you have questions, please feel free to stop us along the way.
  • 00:41:35
    So you may remember that this is a slide that you've seen before that talks about our general fund revenues.
  • 00:41:41
    Again, the general fund is where we're going to concentrate a lot of our conversations as part of your work sessions.
  • 00:41:46
    And you can see that the general fund revenues went up 4.8%.
  • 00:41:50
    and it's 321.6 million dollars.
  • 00:41:53
    And you can see the categories around the edges there of the revenues and you can see the general property taxes are where most of our revenues come from.
  • 00:42:02
    That's like 66% of all of our general fund revenues.
  • 00:42:07
    Other local taxes, you see state revenues and some of those categories,
  • 00:42:12
    The topics aren't shown on them, but the one in the light brown is what we call other local revenues.
  • 00:42:18
    You have local revenues that aren't taxes, so you have fees and those types of things that are still local revenues.
  • 00:42:25
    And then you have the federal revenues, which is a pretty small percent, about 2% of our general fund.
  • 00:42:31
    And then you have transfers and use of fund balance.
  • 00:42:33
    We're gonna talk a little bit about fund balance in a few minutes.
  • 00:42:36
    So that just kind of takes you around the general picture of the general fund revenues.
  • 00:42:42
    You also saw this slide, so I'm just touching on this again.
  • 00:42:45
    This really is a nice slide because it breaks the revenues down by some categories that you'll think about in a different way.
  • 00:42:53
    So the real estate revenues is a very large source of our local revenues.
  • 00:42:57
    You can see that that increased $8.8 million, up 5.4%.
  • 00:43:02
    local personal property.
  • 00:43:04
    That's basically the taxes on automobiles and motorcycles and those types of vehicles.
  • 00:43:11
    That increased 2.2% up about $600,000.
  • 00:43:15
    And what we call business driven is basically the B-poll taxes and the taxes around
  • 00:43:23
    Business type revenues that we received.
  • 00:43:26
    Up a very small amount, about 2.3%, about $370,000.
  • 00:43:32
    And then consumer driven, which is your sales tax and your food and beverage tax and those types of taxes you see is up about $650,000.
  • 00:43:41
    Sales tax is something you want to be thinking about because we're going to be talking more about sales tax as we go through the
  • 00:43:50
    I've got two charts.
  • 00:43:51
    This chart is in your revenue chapter and I like it because it shows trends over time of your major revenue sources.
  • 00:43:56
    So you can see back to on the left, fiscal year 12,
  • 00:44:11
    and on the right we have fiscal year 2021 recommended, REC stands for recommended and you can see over time how the revenues are doing and you can see if you start at the very bottom you can see our federal revenues are pretty flat.
  • 00:44:23
    Over all these years we don't receive much in federal revenues.
  • 00:44:26
    Our state also stays pretty flat, a little bit higher than the federal revenues.
  • 00:44:32
    The category called other general property, that's things like
  • 00:44:37
    Personal property, machinery and tools, mobile homes, you can see that goes slightly up.
  • 00:44:44
    That's that third chart from the bottom.
  • 00:44:46
    The topic of other local, it's another way to look at it.
  • 00:44:49
    That includes sales, B-poll, utilities, those types of things.
  • 00:44:54
    You can see there's a slight increase.
  • 00:44:56
    Again, not much.
  • 00:44:57
    And then you can see at the top of the chart there, the most of our growth and most of our revenues are in real estate revenues.
  • 00:45:04
    In the last year,
• • SPEAKER_02
  • 00:45:06
    We're seeing that that'll probably increase 5.4% What is the definition of a mobile for the purposes of taxes now?
  • 00:45:20
    Because we have modular prefab homes and some of them look an awful lot like a regular home.
• • SPEAKER_20
  • 00:45:29
    have a foundation.
  • 00:45:30
    How does that work?
  • 00:45:31
    I can read to you what it says in here, but I don't know if that answers your specific question.
  • 00:45:36
    Mobile home taxes are levied on manufacturing homes not classified as real estate that are owned by individuals and businesses.
  • 00:45:42
    Mobile homes are assessed at a tangible personal property, yet taxed at the real estate tax rate.
  • 00:45:47
    So I don't know the exact description.
  • 00:45:49
    I don't know if those of you from the finance department have more details or not.
• • SPEAKER_02
  • 00:45:53
    One of the reasons quickly I'll say I
• • SPEAKER_00
  • 00:46:07
    Steve Allshouse, Department of Finance.
  • 00:46:11
    The definition of a mobile home essentially is that did it have wheels or couldn't have wheels and that's how it's determined.
  • 00:46:18
    So if you have say a box that has wheels on that could be trailer and could be carried along the highway for example that counts as a mobile home.
  • 00:46:26
    If those wheels come off it's still considered a mobile home even though the wheels are
• • SPEAKER_02
  • 00:46:32
    I'm sorry, I'm going to keep this off the block, but the prefab homes, they come in four parts and you put them together and they all roll there.
• • SPEAKER_20
  • 00:46:53
    This is another chart that you have again in your revenue chapter that I find interesting again it's over time and you can see that
  • 00:47:03
    an interesting trend on sales tax and you'll hear more about the sales tax increasing.
  • 00:47:08
    We're now, internet tax is now available to us and so that trend is increasing and may increase even a little more.
  • 00:47:16
    They're studying that right now in the finance department.
  • 00:47:19
    The business license fee is the second one on the line there.
  • 00:47:23
    Again, improving on a trend line.
  • 00:47:27
    Food and beverage tax is also improving on a trend line.
  • 00:47:31
    your utility tax is not as much and there's some reasons about utility taxes some of it is maybe energy efficiency if this is basically includes energy taxes and other taxes like that and also some of the you have more details on the you want to share more about that I think it's an interesting topic of why you would think utility taxes may be increasing right again Steve Ball's house department
• • SPEAKER_00
  • 00:48:02
    is related to telecommunications.
  • 00:48:03
    And as people have been switching over the last several years, and we believe we'll continue to switch over the future to mobile devices.
  • 00:48:09
    They're not subject to the same sort of taxation that landlines are.
  • 00:48:13
    We expect that to gradually decrease.
  • 00:48:15
    Even though our population is increasing, we won't necessarily see an increase in that tax revenue.
  • 00:48:20
    The ongoing theory in the last few years is it will slightly decrease each year.
• • SPEAKER_02
  • 00:48:24
    So in the business license tax, is that in part because we're doing a better job identifying
• • SPEAKER_00
  • 00:48:32
    That's possible, yes.
  • 00:48:34
    And keep in mind that that particular license of BPOL tax is backward-looking.
  • 00:48:38
    So the payment that's made each year in June pertains to the previous calendar year.
  • 00:48:43
    So the payment that will be made in June of 2020 pertains to the level of economic activity that was going on in calendar year 19.
  • 00:48:52
    So that's kind of one of those things that's not really a forward-looking indicator, but something you have to keep in mind is looking backward.
• • SPEAKER_20
  • 00:49:00
    And then the final one on that list is the transient occupancy tax.
  • 00:49:04
    And for those that are new to the board, 2% goes to the general fund.
  • 00:49:09
    And I'm talking about general fund taxes here.
  • 00:49:10
    And then 3% goes to a separate fund, which is the TOT fund that has to be used for certain activities.
  • 00:49:19
    So we're only talking about the percentage here that goes to the general fund.
• • SPEAKER_03
  • 00:49:22
    The transient occupancy tax applies to home stays
  • 00:49:31
    Which?
• • SPEAKER_17
  • 00:49:32
    Homestays also?
• • SPEAKER_00
  • 00:49:33
    Homestays also.
  • 00:49:34
    If you're a homestay business, you now have to pay TOT.
• • SPEAKER_18
  • 00:49:37
    Well, you have to collect it.
• • SPEAKER_00
  • 00:49:39
    Well, you have to collect it.
• • SPEAKER_18
  • 00:49:40
    The guest pays it and the payer can send it in.
• • SPEAKER_20
  • 00:50:01
    So you can find details if you read through the revenue.
  • 00:50:05
    It's a great chapter.
  • 00:50:05
    You can find details about each of the revenue sources, what do we think's going on with each revenue source, and details about what that revenue source represents.
• • SPEAKER_17
  • 00:50:15
    Is there any chance of getting, I know the landline taxes are slowly going away, what about getting some, is that something the state would have to give us to have part of the
  • 00:50:32
    We should be getting some...
• • SPEAKER_20
  • 00:50:44
    Okay, in this slide here again we talked a lot about real estate taxes.
  • 00:50:48
    You've heard a lot about the assessments from our assessment when it was presented to the board so I didn't go into a lot of details on that but that presentation slides are available for more information about how things change in different districts and all those things so we do have access to more information about real estate taxes.
  • 00:51:06
    This is just one slide on it.
  • 00:51:07
    It's calculated at the current rate as we've been saying.
  • 00:51:10
    It's expected to generate $172.3 million or 53.6% of your general fund revenues.
  • 00:51:18
    This is something that we talk about.
  • 00:51:20
    Some people, we talk about a penny on the tax rate and how much does a penny on the tax rate bring in so if you would increase
  • 00:51:27
    If you would decide to ever increase the tax rate by a penny on the tax rate, it would bring in two million dollars basically.
  • 00:51:34
    And so that's just to give you an idea.
  • 00:51:35
    It's changed over time.
  • 00:51:37
    So that's what would bring in if there was a change in the tax rate.
  • 00:51:41
    There's also a term called lowered or effective tax rate.
  • 00:51:44
    and that's what the rate would be if it brought in the same amount of funding that we're receiving now and that lowered or effective tax rate would be 0.826 per 100 of assessed value.
  • 00:51:54
    So that's something when you advertise the tax rate, that'll be some information that's included in the advertisement.
  • 00:52:01
    The other thing that we like to talk about when we talk about the real estate taxes is we have a program, Tax Relief for Elderly and Disabled.
  • 00:52:08
    We've increased that 16.7% and we see it's being used more often and it's 1.2 million dollars that we place into that program.
  • 00:52:17
    So I just wanted to mention that.
• • SPEAKER_19
  • 00:52:19
    What do you think caused that problem because that's a good number higher than we've seen in the past.
  • 00:52:27
    Did we advertise it better or do you think, I'm just curious.
• • SPEAKER_10
  • 00:52:32
    It's a combination of a few factors.
  • 00:52:34
    It's a little tough to pinpoint exactly where they are, but certainly more people participate in the program, and more people are able to qualify for more relief.
  • 00:52:40
    And just as property values increase, this increases as well.
  • 00:52:44
    Part of the reason for that, such a substantial almost 17% increase, is that the current fiscal year budget was really too low.
  • 00:52:50
    The board may recall we actually came back to the board in I think July or August to increase that amount based on the activity that happened in fiscal year 2019.
  • 00:52:56
    So part of this at 17% is a catch up over two years.
• • SPEAKER_19
  • 00:53:01
    And we are capped out at what the state allows on that program.
• • SPEAKER_04
  • 00:53:07
    We're relatively higher than most localities in what we provide.
• • SPEAKER_19
  • 00:53:12
    But we're not really capped out.
  • 00:53:16
    I thought for a long time we weren't.
  • 00:53:18
    That's what we were always told, that we couldn't go any higher because the state... Well that's what I'm saying, that we were as high as we were allowed to go, but Greg is saying... Let's see if I can find the answer.
  • 00:53:27
    He's nuanced the answer a little bit more
• • SPEAKER_18
  • 00:53:37
    The catch-22 is the assessments are increasing.
  • 00:53:41
    Therefore, more and more homeowners fall out of the category in which they could qualify if they're, well, actually, I'm sorry.
  • 00:53:49
    I take it back because the house in 10 acres is not included.
  • 00:53:51
    So therefore, even if their house value is increasing, it does not necessarily knock them out.
  • 00:53:58
    Because if they have $200,000 net worth, that is our cap for their value
  • 00:54:06
    So maybe Andy can explain why he just said that the property values are going up and therefore
• • SPEAKER_10
  • 00:54:32
    I guess there will be some people who are not getting, I guess, out of it.
  • 00:54:36
    They're eligible for more relief, I guess, if you're under the cap.
  • 00:54:39
    So I guess you have a combination of people that all point to the spectrum of relief where things are changing.
  • 00:54:44
    I guess if the experts in finance would add anything that I said about this program, please chime in.
  • 00:54:51
    The experts in finance, you know, should be something to consider.
  • 00:54:55
    I said that as their department is the one who administers the program.
  • 00:54:58
    So I want to, because when they're involved, I don't want to leave that in any keep.
• • SPEAKER_03
  • 00:55:34
    this would just be something to be about a 30% increase over that 10 or 11 year period
  • 00:56:24
    My recollection is federal jurisdiction property.
  • 00:56:30
    It's not subject to local jurisdictions.
  • 00:56:34
    Do we have any properties in Albemarle County that are federal jurisdictions rather than just leased property?
• • SPEAKER_00
  • 00:56:54
    I was going to say the national parks.
  • 00:56:58
    We get a payment in lieu of taxes.
  • 00:56:59
    It's not a huge amount, but that's a form of compensation that we do get.
• • SPEAKER_03
  • 00:57:03
    Other than the parks, are there any other lands?
• • SPEAKER_00
  • 00:57:06
    I'd have to check on that.
  • 00:57:07
    I'm not sure.
  • 00:57:08
    I don't think there are.
  • 00:57:08
    What I'm familiar with are the parks.
• • SPEAKER_17
  • 00:57:11
    What about the location on Turkey Sack?
• • SPEAKER_00
  • 00:57:17
    I'd have to check with Peter Lynch.
• • SPEAKER_08
  • 00:57:25
    Is this the point where you wanted to ask questions on revenues?
• • SPEAKER_20
  • 00:57:29
    Yeah, this is my last slide on revenues.
  • 00:57:32
    Actually, I have one more slide.
• • SPEAKER_19
  • 00:57:37
    Of course, we all know that we have a lot of state money that's outside of because of the University of Virginia.
• • SPEAKER_03
  • 00:57:43
    That's where we really are.
  • 00:57:46
    And the other thing about the University of Virginia is that years ago you talked a little
• • SPEAKER_00
  • 00:58:17
    University of Virginia has its foundation which owns a lot of property that if it's if the property is pertaining to certainly an educational purpose it's academic and if it's not then it's subject to taxation so there is a distinction there as well.
• • SPEAKER_19
  • 00:58:35
    But that's the big hit for us really is the University of Virginia property.
• • SPEAKER_08
  • 00:58:46
    So, and if you address this, I apologize.
  • 00:58:48
    It flew by me.
  • 00:58:49
    So I'm on page 55, the permits and fees.
  • 00:58:52
    I've read it.
  • 00:58:52
    I understand what happened with the inspection related fees, the school year.
  • 00:59:05
    It explains in the description that we were pessimistic.
  • 00:59:07
    We were off by 1.1 million dollars.
  • 00:59:10
    So my question, and we're projecting 1.8 for the coming year, so I guess the first question is what did we learn going through that projection revenue, the look back on that.
  • 00:59:23
    We were obviously pessimistic.
  • 00:59:24
    We missed it.
  • 00:59:25
    We didn't miss.
  • 00:59:26
    This isn't a criticism, but we were off.
  • 00:59:28
    and then we're projecting a substantial increase moving forward.
  • 00:59:31
    So we learned something to be confident to do that.
  • 00:59:34
    So can you speak to that a little bit?
• • SPEAKER_00
  • 00:59:36
    I'll be critical.
  • 00:59:37
    We missed.
  • 00:59:39
    We were off.
  • 00:59:39
    We were too optimistic, or excuse me, too pessimistic in one case.
  • 00:59:44
    The revenue team, which came up with that forecast for all the fiscal years, was being heavily influenced by survey, the thinking of the then community development director who thought that
  • 00:59:59
    We were being again somewhat conservative in FY21 forecasting for inspections and other development fees but in further conversations with the current Director of Community Development and what I'm seeing in the local market it looks like there will be an upward revision
• • SPEAKER_08
  • 01:00:33
    We may have been over reliant on one person to do some checks around, I mean obviously that person is an important input, but we should also have some other things to go, is that right?
  • 01:00:46
    That's good, sounds like that.
• • SPEAKER_03
  • 01:01:18
    I think the two can be redacted out of it, but if not, then something was missing.
  • 01:01:23
    Thank you.
  • 01:01:44
    Other questions on revenues?
  • 01:01:45
    Yes.
• • SPEAKER_17
  • 01:01:45
    Do we know why it says here that the revenue from food and beverage taxes, there's a decrease from 20 to 20?
  • 01:01:58
    They said that, you said that projected, it reflects the law
• • SPEAKER_00
  • 01:02:18
    You will be receiving a revenue update on March 5th.
  • 01:02:21
    This was something we've added into the process to bring the most latest revenue information.
• • SPEAKER_20
  • 01:02:47
    Thank you so I'm going to move to expenditures and I'm not going to have the same level of detail for expenditures because you're going to hear a lot about the expenditures on March 3rd so just going to talk
  • 01:03:22
    So of course our budget is balanced so your revenues equal your expenditures.
  • 01:03:28
    This is a slide that you saw earlier it talks about our expenditures and you can see the transfer to the schools
  • 01:03:36
    is one of the largest areas there on the right.
  • 01:03:40
    And then you can see the categories of expenditures around that donut.
  • 01:03:44
    So you can see what the percentages are, the larger picture of what's going on with your expenditures.
  • 01:03:54
    And then the only other thing I really wanted to mention on this particular chapter before we move to the non-departmental chapter is that it's a great chapter for summaries.
  • 01:04:02
    So it doesn't have all the details in it.
  • 01:04:04
    You'll find the details in the other tabs.
  • 01:04:06
    But it's a great summary chapter.
  • 01:04:09
    It includes expenditures per category.
  • 01:04:12
    And we use the categories like administration, public safety, terms like that, which are ways that we have to report to the state.
  • 01:04:18
    And then it also shows expenditures by type.
  • 01:04:21
    So you can look at your expenditures through another lens.
  • 01:04:23
    like for example salaries, transfers, and that type of thing so you can see a chart and say how much of your general fund revenues go to salaries so you can actually see it by that category and then you'll see a summary of our AVRT agencies so if you want to see on one page the AVRT agencies you can see them there
  • 01:04:42
    What happens because some of the agencies are community development oriented, some are public safety oriented, most of them are in your health and welfare chapter, the ABERT agencies can get
  • 01:05:01
    So this way you can see if you want to just look at how much money did we spend for the ABRT agencies you can see that on one page but the details aren't there details will be provided in other chapters and then the same thing with the cultural agencies you can see a summary of that
  • 01:05:16
    And then you can also see a couple of really nice charts in there are positions over time.
  • 01:05:21
    So if you want to see the general government's positions and how we've changed as far as how many positions that we have hired over the years, you'll see a chart that shows that over time.
  • 01:05:33
    You'll see a chart that shows our positions by population over time.
  • 01:05:38
    So you can see how we've changed by a position as a ratio of our population.
  • 01:05:44
    And you'll also see what positions
  • 01:05:45
    And if we went back two more years, we would see whether it decreased by 70%.
  • 01:06:05
    That's a great point because the prior documents you know go back a year you know further back and I did the same thing because I look back at like the you know 2012 budget to just kind of see that chart from the past because it doesn't she's mentioning the Great Recession and the changes we went through in the Great Recession and they're still coming out of that.
• • SPEAKER_02
  • 01:06:24
    So great point.
  • 01:06:26
    And I'm going to throw one more thing into that.
  • 01:06:29
    For those of us who have been living here for a while and experienced the Great Recession, I just noticed in my recent assessment that my house is just about up to the assessment.
  • 01:06:44
    It was in 2007 of them, which is really remarkable.
• • SPEAKER_19
  • 01:07:14
    Some of them are back to 07 yet, but they're getting close.
• • SPEAKER_03
  • 01:07:18
    We have a question to turn on page 73 which talks about
• • SPEAKER_10
  • 01:07:42
    Last year, in response to this board Q&A, we put together an analysis.
  • 01:07:46
    It was, of course, a year behind.
  • 01:07:46
    But we could take a look and kind of dust that off again to give some perspective on how we compare to see where typical peer localities would be.
• • SPEAKER_03
  • 01:07:53
    Yeah, I saw other comparisons.
• • SPEAKER_10
  • 01:07:55
    And Ann, if you find that.
  • 01:08:03
    I think certainly if you compare to Albemarle County, I think if you would go back around fiscal year 8 or 9, that number would have been 7.1, probably.
  • 01:08:12
    So we're above where we were then.
  • 01:08:14
    Certainly there are services we are providing now in fiscal year 21 that we didn't provide at that time.
  • 01:08:19
    A lot of the services we do provide, such as in policing DSS, their workload populations are much greater than that.
  • 01:08:24
    So it's tough to draw one conclusion from that.
  • 01:08:27
    And certainly other localities will provide that information.
  • 01:08:29
    But it may make different choices in level of service than we do.
  • 01:08:31
    And it's just as we make different choices.
  • 01:08:34
    And so not to dismiss that, but it's just a comparison that is a reference point.
• • SPEAKER_02
  • 01:08:40
    And an example, I had to bring up solid waste again, but a lot of communities include their solid waste folks in that number, so it's going to look different than ours.
  • 01:08:49
    That's a great point.
• • SPEAKER_10
  • 01:08:52
    When we did this analysis last year, we tried to scrub our best to make sure we were counting.
  • 01:08:57
    For example, we have a regional library system, so those attendees do not appear in our position count.
  • 01:09:02
    Other localities have their own library system.
  • 01:09:04
    They do appear.
  • 01:09:05
    So we'll go through and scrub that.
  • 01:09:06
    But different localities will always make different choices based on what's going to be most important to their board and citizens.
  • 01:09:12
    It will be interesting information, but there's that caveat that we've had.
• • SPEAKER_18
  • 01:09:18
    I don't know if the yellow book still comes out.
  • 01:09:21
    It does all our luck, so I haven't seen it.
  • 01:09:25
    I remember in 2008, I completely
  • 01:09:28
    We got sucked into the trap that Andy's talking about because our community development numbers were high, so I called up Brent, who was the manager in Augusta, and I said, so Pat, how are you doing this with so few people?
  • 01:09:38
    And he said, Ann, do your homework.
  • 01:09:40
    You've got five departments under that CDD category, whereas mine are listed in five different categories.
  • 01:09:46
    So you've got to make sure.
  • 01:09:48
    And that was just the perfect example that stuck with me ever since, that you have to really be looking carefully at how each community does it.
  • 01:10:04
    Page 45 referred to the comparison and expenditures report.
• • SPEAKER_10
  • 01:10:34
    the top county in the county's population and also the city of Charlottesville is another reference.
  • 01:10:39
    That data is a fiscal year 18.
  • 01:10:41
    Virginia offered public counts from that issue there.
• • SPEAKER_20
  • 01:11:09
    I'm going to move us forward, if we're OK, to what we call the non-departmental chapter.
  • 01:11:15
    So you'll be going through a lot of the chapters on the third that are about public safety and those types of things.
  • 01:11:21
    We do have this one chapter.
  • 01:11:22
    It's kind of towards the back.
  • 01:11:23
    Usually we follow, by the way, chapter to chapter.
  • 01:11:26
    We kind of stay with the book and follow it.
  • 01:11:28
    But this one we added now because it's kind of an unusual chapter.
  • 01:11:32
    And I just want to make sure that we hit it now, and then you'll
  • 01:11:35
    You can ask us any questions you might have about it.
  • 01:11:38
    And I'm only going to talk about a few things.
  • 01:11:40
    But this is a chapter that includes transfers.
  • 01:11:43
    So the general fund transfers funds to other funds.
  • 01:11:46
    And other funds transfer funds to general funds.
  • 01:11:48
    So we have some transfers that go in and out of the general funds.
  • 01:11:51
    So this includes information about the various transfers that we do.
  • 01:11:55
    It also has information about the reserves.
  • 01:11:57
    There's always interest from the board about what kind of reserves do we have, because we know that
  • 01:12:03
    When we start a new fiscal year things can change throughout that year and we want to know how we can be nimble and flexible along the way.
  • 01:12:08
    So we have a reserves information in here.
  • 01:12:12
    We also talk about revenue sharing with the city.
  • 01:12:14
    So there's information in this chapter about our history of revenue sharing with the city.
  • 01:12:20
    Charlottesville.
  • 01:12:21
    And there's another piece of information on the general fund balance and uses of your one-time funding from previous fiscal years.
  • 01:12:30
    And so I'm going to go over that one in a little more detail because it's changed a little bit since we talked about it as we were working through that in the five-year financial plan.
  • 01:12:39
    So I've got a few slides, but I'm not covering everything.
  • 01:12:41
    And then we can talk about anything that you'd like to discuss.
  • 01:12:45
    The revenue sharing with the city is on page 167 to 169 in the document and it goes back to 1983 so you can see the payments all the way back from when we started the revenue sharing with the city and so this slide is just to illustrate how it changes from year to year and it's not always going one direction or the other it's based on a formula that has a two-year lag function and it has to do with relativity of changes that occur in the city and
  • 01:13:13
    in the county.
  • 01:13:14
    We actually have information in that chapter about the formula so if you're interested in really going how does the formula work, we always like to be transparent about it so you'll have some information in there if you'd like to read more about it and also we'd be glad to talk with you about it if you'd like to learn more.
  • 01:13:28
    but you can see over the years in changes.
  • 01:13:30
    So it has a big impact on what we have available in discretionary funding in the county based on what the formula says that we are required to provide.
  • 01:13:41
    So this is just a sample of the last few years but you can see all the way back in that chapter if you want to look back.
• • SPEAKER_02
  • 01:13:46
    Can you tell us is there a major driver that has caused the majority of the last 10 years to go down?
• • SPEAKER_12
  • 01:14:04
    I think probably the main driver is going to be taxing effort so the relative tax that the city would charge on its property versus what we charge in ours is going to make probably the largest difference.
  • 01:14:24
    So for example is
  • 01:14:27
    If we were to increase our taxing effort, that is, we would increase the tax rate on our pool of properties that we're taxing on.
  • 01:14:38
    That would lessen our payment decision.
• • SPEAKER_19
  • 01:14:42
    So we should tell people.
  • 01:14:43
    You can take care of that.
• • SPEAKER_12
  • 01:14:45
    That's probably not the answer you want to hear.
  • 01:14:47
    But it is a complicated question.
  • 01:14:56
    It's not an easy question to answer, but I would say that that's probably among the major factors that's going to swing at one.
• • SPEAKER_04
  • 01:15:03
    Yeah, that is something, and I don't know how much the tax rate would have to change to really move that number, but that is something to consider in the future if the board starts looking at ease in lieu of
• • SPEAKER_19
  • 01:15:24
    One of the reasons why I asked too because I was really struck at how
• • SPEAKER_17
  • 01:15:55
    County, contribute to portions of the respective real property tax basis and revenues to a revenue and economic growth sharing fund, which sounds like we share it, unless it's a misnomer.
  • 01:16:12
    And it says, distribution of the fund and the resulting net trade, blah, blah, blah, blah, blah.
  • 01:16:25
    or not.
  • 01:16:28
    I know we haven't been pursuing having any say, but is there any way legally we could at least enter a dialogue?
• • SPEAKER_04
  • 01:16:40
    The fund is a fiction.
• • SPEAKER_17
  • 01:16:42
    The fund is a fiction.
• • SPEAKER_04
  • 01:16:44
    Every year, as you can see from this chart, every year the county has transferred funds.
  • 01:16:49
    So that fund is a paper exercise.
• • SPEAKER_17
  • 01:16:53
    It goes into their general fund.
  • 01:16:55
    Is there any way we can do a legal fund where it goes into a fund like it's stated here?
• • SPEAKER_04
  • 01:17:09
    We can follow the terms of the revenue sharing agreement, which is because it was approved by a referendum, we're locked into its terms.
• • SPEAKER_17
  • 01:17:21
    And I'm not denying the formula.
  • 01:17:24
    I'm just saying, if legally it says it's a fund and we're both contributing to that fund, wouldn't it mean that, couldn't we argue that we both have say as far as the use of this fund?
• • SPEAKER_04
  • 01:17:37
    No, the agreement provides that the funds, assuming that the funds are going to go to the city, the city is allowed to use those funds for any purpose.
• • SPEAKER_02
  • 01:17:50
    Can you explain quickly to her, however you want to, about what happened?
  • 01:17:54
    There is no way to explain this quickly.
  • 01:17:56
    No, but I mean the legislative action that we tried to take, that we went to the General Assembly and did the exact work, but we got sort of
  • 01:18:06
    with the money once a year or twice a year.
• • SPEAKER_04
  • 01:18:09
    Yes, there was a neighboring authority that became effective two years ago.
  • 01:18:14
    And essentially, the city is supposed to share with us how they propose to use the funds that are transferred to the city.
  • 01:18:23
    In their budget last year, there were essentially, I think, just two line items.
  • 01:18:28
    A portion of the funds went to operations, and a portion of the funds went to
• • SPEAKER_19
  • 01:18:39
    And we had that discussion which became quite energetic at a joint meeting with the city.
• • SPEAKER_17
  • 01:18:50
    And I know you've pursued this, I'm just wondering if now with the makeup of
• • SPEAKER_04
  • 01:19:00
    Well, there have been ongoing efforts by the board to, you know, I think what the board has said over the last couple of years, particularly since that legislation became effective, was to try to get the city council to identify those shared revenues be applied to city type
  • 01:19:24
    We also have operations and facilities that affect both city and county residents.
  • 01:19:32
    So the county residents can see that the money that's being transferred to the city is also directly benefiting county residents as well.
  • 01:19:40
    Because there are county residents who use city parks and other types of facilities.
• • SPEAKER_20
  • 01:19:50
    They only have two slides left for this non-departmental category and then we'll take a break if you'd like to in the moving capital category.
  • 01:19:58
    So the next two slides, this is actually in your document and this is something when we go through the five year financial planning process and there's a time
  • 01:20:08
    after the audit's complete that we talk a little bit about year-end general fund fund balance.
  • 01:20:13
    And so we actually put this chart in this non-departmental category to kind of show you, and I'm not going to go through it in details, but I can definitely answer any questions at any time that board members might want to have or a conversation about this.
  • 01:20:25
    But we basically start with the audited fund balance, and then we show by policy uses
  • 01:20:32
    that are by boards policy, by our financial policies, what we do to make sure that we have some reserves on hand.
  • 01:20:39
    So we do some policy uses of the fund balance.
  • 01:20:42
    And then what we do is we look at things that you've already appropriated.
  • 01:20:46
    So this is one-time money.
  • 01:20:48
    So this is what we consider using for one-time purposes.
  • 01:20:52
    And so along the way, currently, in your current fiscal year, you've appropriated some use of fund balance.
  • 01:20:58
    So you can only spend it once.
  • 01:21:00
    So since it's appropriated it's locked in place for some expenditure.
  • 01:21:04
    So we take that off and we say okay we can't do that.
  • 01:21:07
    And then we also this year there's a word called obligated uses up there and I just wanted to mention two important obligated uses that you will be asked for appropriations to do.
  • 01:21:18
    And one has to do with the early voting location.
  • 01:21:21
    you know there was some one-time costs associated with that that's in gonna be we'll be asking you to appropriate some use of this fund balance for that for the one-time uses there and also you have a agreement with Habitat for Humanity for the Southwood performance agreement there's some funding that we had suggested comes from this to help support that agreement so those are what we call obligated that aren't necessarily appropriated yet but with your approval of this budget we would come to you to ask for an appropriation for those two things
  • 01:21:50
    So I just wanted to share that with you.
  • 01:21:51
    And then it comes down at the very end to say, after we go through all these policy pieces and these appropriated funding, how much is available for you to consider during your budget process for some one-time uses?
  • 01:22:02
    And so on the next page, which is also included in this document,
  • 01:22:07
    This budget has some recommendations for that use.
  • 01:22:09
    So it's about $6 million.
  • 01:22:11
    And so you will see us talking in a few minutes about the capital program and CIP.
  • 01:22:17
    So that's often a place that we look at for some recommendations on some use of this one-time money.
  • 01:22:23
    And so we'll be talking about that in a moment.
  • 01:22:26
    Also, you've heard us talk about some funding for AHIP through the Climate Action Program to do some weatherization and rehabilitation rehab for some houses.
  • 01:22:37
    and we're recommending $250,000 that would come from here so you'll hear us talking about it again but this is a source of it and also for economic development there's a recommendation to
  • 01:22:54
    And then that's all when I have up there fiscal year 20, if the board approves this, we will bring back appropriation requests to you in 20.
  • 01:23:01
    So we're going to say, let's put this money to work now.
  • 01:23:05
    Don't wait until July 1, because you don't have to.
  • 01:23:07
    So those are things we would say.
  • 01:23:09
    We would come back with an appropriation if you approve this earlier than July and say, if you approve this through the budget process, we'll bring you that request.
  • 01:23:18
    and then on 21, so with your July budget that starts fiscal year 21, we have some other reserves and some items that you will find throughout your whole budget document that will be coming from this source.
  • 01:23:30
    So this is just a list of them.
  • 01:23:31
    They are included in the non-departmental chapter for you to look at in greater detail or if you have any questions.
  • 01:23:37
    You'll hear these ideas come up and you'll hear them in different departments, but I wanted to let you know the source of this one-time money.
  • 01:23:43
    So I don't really want to go through a lot of details unless you'd like to do that at this time because you'll be hearing more about it later.
• • SPEAKER_02
  • 01:23:51
    Are you done with talking about transfers?
• • SPEAKER_20
  • 01:23:54
    I am.
  • 01:23:55
    I haven't really touched on transfers but if you have a question on them let's talk about it because it's in this chapter.
• • SPEAKER_02
  • 01:24:18
    I guess what I want to know is the amount that we decide to
  • 01:24:43
    that is appropriate or correct to transfer to the school division, is that minus those performance agreements?
  • 01:24:52
    I mean, do we wait for the, like if we have a tax rebate to SEVIC for their infrastructure, we're going to give them, you know, the money back for that for a few years, does the transfer
• • SPEAKER_10
  • 01:25:11
    That would be done, I'll say, during the time that agreement is in effect, that would be done before the transfer to the school.
  • 01:25:19
    Once that obligation is met for that rebate, then it would come in as local tax revenue, and then it would be shared with the school division based on the formula.
• • SPEAKER_02
  • 01:25:27
    We just didn't quite explain which way it went in that sentence.
• • SPEAKER_18
  • 01:25:34
    So can you amplify when it says, incorporate it into the base?
  • 01:25:37
    What's the big definition of that?
• • SPEAKER_10
  • 01:25:41
    So the chart may help.
  • 01:25:44
    On page 171 is the whole calculation of the schools.
  • 01:25:48
    And the second to last line is the prior year base of $138.2 million.
  • 01:25:53
    And that is a peculiar result of all prior decisions being made by the board and the shared local tax revenue.
  • 01:26:00
    and then the increase of the almost $6 million is the result of the calculation of those.
  • 01:26:05
    So for example, if the Board in the past had dedicated funding to the schools, that becomes a part of the base.
  • 01:26:11
    And then the net growth in local tax revenue, the following year gets applied to that base.
• • SPEAKER_18
  • 01:26:16
    So next year, the base would be $144,000,000, the bottom line, plus actually the $13 million that they're getting from outside sources.
• • SPEAKER_10
  • 01:26:28
    The additional funding from the state would not go through this formula.
• • SPEAKER_18
  • 01:26:34
    But it would be part of the base next year.
• • SPEAKER_10
  • 01:26:36
    Not this calculation, but I understand that the IRS should... It would certainly be part of the school fund, but the school state revenue comes into the school fund, not the general fund.
• • SPEAKER_18
  • 01:26:46
    Okay, so that's different than the answer I got.
• • SPEAKER_02
  • 01:26:48
    Okay, very good.
  • 01:26:50
    Thank you.
  • 01:26:50
    You reminded me that I had one more, and actually I should have
  • 01:26:56
    but it has here that 74% is transferred to the school division and somewhere in here it said that supplied 69% of the school budget.
  • 01:27:11
    Does that mean that the state is moving up the majority of the rest of that 31%?
  • 01:27:16
    You probably should come up so we can all hear you.
• • SPEAKER_14
  • 01:27:24
    The transfer funds up to around 70% of our budget, the remainder is state funded with a tiny sliver of less than 2%, that's federal.
  • 01:27:38
    So the remainder is state and federal but mostly state.
• • SPEAKER_03
  • 01:27:59
    I was going to say some of that $370,000 still at least what happened last year is in the budget but it's now been distributed to salaries for employees based on their performance reviews and where they are below the salary scale relative to midpoint.
• • SPEAKER_10
  • 01:28:28
    and I think this video could segue to what Mr. Richardson was about to say.
• • SPEAKER_13
  • 01:28:34
    Maybe we should call up the finance expert.
• • SPEAKER_05
  • 01:28:48
    So all I was going to say is that if we were to go back several years and look at the pay for performance reserve, some years we've been able to fund that, some years we've not been able to fund that.
  • 01:29:00
    And so for this coming year, we did not have the flexibility with discretionary revenue to be able to fund that.
  • 01:29:08
    And so right now we're just operating off the 2% for all county employees, and that's what's been budgeted.
  • 01:29:22
    Okay.
  • 01:29:59
    Well, I mean, you're hitting on something that is certainly near and dear to the leadership team's heart, and that is looking at being able to reward our employees for hard work, work that stands out, and look on an individual basis and on a team basis.
  • 01:30:17
    And so we're looking at that.
  • 01:30:19
    Over the past year, we have totally revised the performance evaluation tool
  • 01:30:26
    for our senior leadership in the organization.
  • 01:30:28
    We've introduced that to now the next 100 or so managers in the organization.
  • 01:30:34
    We're having a lot of discussion about that.
  • 01:30:37
    But the reason that that money is not in there is simply because we just reached a point where we've got about almost three point, we're between $3.2 and $3.3 million that has been allocated for employee
  • 01:30:55
    And I appreciate the compensation increase that will be felt across the board.
• • SPEAKER_03
  • 01:31:27
    We don't have final state numbers yet.
• • SPEAKER_19
  • 01:31:56
    and this can be one-time money.
  • 01:31:59
    Thank you.
  • 01:32:00
    Thank you, Diantha.
  • 01:32:02
    It can be, so.
• • SPEAKER_18
  • 01:32:03
    I suppose.
• • SPEAKER_19
  • 01:32:05
    I mean, it can be one-time money.
  • 01:32:07
    And when we get, so we may very well, it's looking like the revenues from the state are coming in strong.
  • 01:32:12
    So this is one of the things we might want to take a look at again.
  • 01:32:14
    I agree with you.
  • 01:32:15
    I'm just saying.
  • 01:32:16
    Thank you.
  • 01:32:19
    Yeah.
  • 01:32:20
    And this may be one of those things where we asked staff to take a note about this and we might want to come back and revisit this.
• • SPEAKER_05
  • 01:32:29
    I would agree with that.
  • 01:32:32
    And the only thing, and I apologize, I don't want this to sound like I'm getting into the weeds, I really appreciate the board flagging this for future focus.
  • 01:32:43
    And you correct me if I'm wrong,
  • 01:32:46
    We could plug that, let's just use the 370 number, we could plug that with one-time funding but in prior years that money is used typically to plow into the base of the employee's pay so it would have a compounding effect and if we were to do that then we would have to flag that for the next year recognizing that we've got to come up with
• • SPEAKER_19
  • 01:33:12
    Well, the state revenues would be ongoing.
  • 01:33:18
    So there are different ways we could look at it is all I'm saying.
• • SPEAKER_10
  • 01:33:34
    I think there have been, one by memory, I think one or two instances in my time in the county where there has been a one-time notice that was done.
  • 01:33:42
    It's very clear it was a one-time notice, which will not continue with people.
• • SPEAKER_19
  • 01:33:47
    But there are different ways that this could be done.
  • 01:33:48
    That's exactly right.
  • 01:33:49
    Different options, that's all I'm saying.
• • SPEAKER_02
  • 01:33:51
    It would be more worth talking about.
  • 01:33:53
    My understanding is the university often does this.
• • SPEAKER_19
  • 01:34:01
    and the state is already talking about doing that again for their employees and I can tell you as a prior UVA employee it is a morale killer because what you like is the money but knowing that it doesn't go into your base.
  • 01:34:13
    Maybe morale killer is an overstatement but it's nice to get.
  • 01:34:44
    Just one more comment.
  • 01:34:49
    There are times, Donna, when UVA has used it in lieu of.
  • 01:34:53
    No increases at all.
  • 01:34:54
    And you're going to get something that is a one time that doesn't go into your pay.
  • 01:34:59
    So it's very different.
• • SPEAKER_18
  • 01:35:00
    We did that at the county, within the last 10 years.
  • 01:35:02
    Because we couldn't do a raise at all.
  • 01:35:04
    Can I tell you a little bit?
• • SPEAKER_20
  • 01:35:10
    Thank you for that.
  • 01:35:11
    And this is just a summary slide before we can take a break if you'd like.
  • 01:35:14
    This is just a summary of the general information we've just talked about.
  • 01:35:19
    It's the same slide.
  • 01:35:20
    It's the current tax rate.
  • 01:35:22
    We're focusing on community infrastructure, equity working differently, supporting our partners, and strategically utilizing our one-time money.
  • 01:35:30
    So I just added that.
  • 01:35:31
    And so I'm going to stop here.
  • 01:35:32
    We were going to go to the schools, but they're done.
  • 01:35:35
    So when we get back, we can talk about capital.
  • 01:35:37
    But this is a time for a break.
  • 01:35:40
    I'm just going to lay it out here.
• • SPEAKER_07
  • 01:36:12
    Next up is Kaplan-Cree.
• • 01:36:14
    Thank you.
• • SPEAKER_13
  • 01:36:14
    Ready to roll?
  • 01:36:15
    You all ready?
• • 01:36:17
    Yes sir.
  • 01:36:18
    Thank you.
  • 01:36:18
    I'm going to now move us to a conversation about the CIP and the capital budget.
• • SPEAKER_20
  • 01:36:32
    So you have some considerations in front of you today.
  • 01:36:36
    The CIP chapter begins towards the back of your book on page 219.
  • 01:36:42
    So we're going to spend our time there.
  • 01:36:45
    We're going to talk about the CIP, which is a plan, the 21 to 25 CIP plan, and then some about the capital budget, which is your first
  • 01:36:56
    We have an Advancing Strategic Priorities Capital Reserve and we'll talk a little bit about that as well today.
  • 01:37:04
    So this is a slide that we saw before.
  • 01:37:06
    Capital is not just about moving forward.
  • 01:37:08
    We have a lot of projects that were approved in the past that we consider when we model.
  • 01:37:12
    This is just to let you know when we're sharing information with you about the capital program, we're also mindful of the projects we're bringing along from past decisions and that we have to
  • 01:37:23
    continue to work on and think about the debt requirements that are associated.
  • 01:37:31
    This next slide, as many of you know, we've had a change in how we do the process for the CIP and we had a CIP advisory committee which had two school board members on it, two board of supervisors, a planning commission member and a member-at-large from the community and they made a recommendation to us as part of the budget process and we've incorporated those projects they recommended into this budget this year, into this
  • 01:37:59
    We had a base CIP and then the changes that were recommended by the advisory committee.
  • 01:38:06
    One thing that I want to talk about on revenues, I'm not going to go into a lot of the details about revenues, but one thing we've talked a little bit about is delaying a penny for the CIP on the tax rate.
  • 01:38:18
    One thing that the committee had recommended is an equivalent tax rate increase of about a penny a year to fund the CIP, which is much larger than any CIPs we've done.
  • 01:38:28
    in the recent past.
  • 01:38:30
    So what this new model shows, what we've planned in this particular CIP is delaying that penny tax rate increase in the first year and we just moved it down one.
  • 01:38:41
    So basically the way the model's looking right now, and this will change because we'll have new revenues, we'll be constantly working on the model.
  • 01:38:48
    before we come back to you again next year.
  • 01:38:50
    But right now, the penny in fiscal year 21 on the tax rate, which is calendar year 20, has been delayed.
  • 01:38:55
    And we basically still say it would take equivalent of five pennies when we move that fifth one out to fiscal year 26.
  • 01:39:01
    So it's kind of off your page right now, because it's a five-year CIP.
  • 01:39:05
    But I just don't want you to lose sight that it's a delay.
• • SPEAKER_18
  • 01:39:09
    Yes, ma'am?
  • 01:39:09
    I understand you to say that because of extra revenue, the equivalent of the penny in fiscal year 21
  • 01:39:21
    Yes, and I'll talk with you a little bit more about that.
  • 01:39:23
    It's not quite a four penny that we're finding, but you're raising a really good
• • SPEAKER_20
  • 01:39:43
    and we had really a lot of deliberations in talking about it.
  • 01:39:47
    And here's the reasoning why we said delay it this particular year.
  • 01:39:52
    When the CIP Advisory Committee was working, it was in November, October, November and we had a revenue update and that affected all of us and affected our budget.
  • 01:40:02
    So a revenue update came in in January and that resulted in $775,000 more money
  • 01:40:08
    The other thing that we always think about with capital is the timing of our debt issuances.
  • 01:40:11
    The timing we go out for borrowing really impacts the payments we have to pay on debt for these projects.
  • 01:40:31
    and so the next time that the debt issuance is being planned and the finance department plans the debt issuances is thinking about it being in 21.
  • 01:40:40
    So of course after you issue the debt then it's like a year before you have to make the payments.
  • 01:40:44
    So everything got delayed a little bit on the timing and they do that in the finance department and they study when it is time to actually go out on the market to issue debt so that was another factor we considered.
  • 01:40:56
    and then the other thing is, and this isn't ongoing money, but there's some one-time money we were able to, and I shared with you on the general fund fund balance, we were able to move some funding over to the CIP through some end-of-year money in the general fund and that was also something that helped us out with that decision.
  • 01:41:18
    So those are just the reasons why we made a decision to recommend delaying it at this time.
  • 01:41:25
    The other thing I want to mention, this is a chart that we use.
  • 01:41:28
    One thing that we always try to do, you have a goal in your financial policies to send cash over to your CIP as well as just borrowing.
  • 01:41:36
    So it's almost like when you buy a house, you have a mortgage, but you want to bring
  • 01:41:40
    and some cash through the table.
  • 01:41:41
    So we have a goal of 3% of general fund revenues off the top will be going into our CIP and then the rest is borrowed.
  • 01:41:51
    And so you can see we're doing a pretty good job on it.
  • 01:41:54
    We want to get to 3% so you can see on 25 we're at 3% and you can see we're at 3% right now.
  • 01:42:00
    So Ms.
  • 01:42:02
    Mallek will probably remember in past years during the recession coming out of it, this is a very low percentage so we're actually happy with
  • 01:42:09
    how we're doing on this in the CIP as it's currently planned.
  • 01:42:14
    The other thing, this is just on the expenditure side, your CIP is recommended at $211.2 million over the five-year period.
  • 01:42:24
    Just like our operating budget includes mandates and obligations, maintenance and replacement, we replace school buses, we replace roofs, we do a lot to take care of our existing buildings, so that's always built into the base of the CIP.
  • 01:42:38
    It continues the capital projects that's been approved by the board in fiscal year 20.
  • 01:42:43
    and then there was basically four areas that the CIP advisory committee recommended which we included in the CIP and we'll talk about those in a moment and you've heard some information already about those.
  • 01:42:55
    One thing we wanted to share with you, we made one change in the expenditure side.
  • 01:43:01
    Just on the timing of the economic development funding for P3s, we moved some of the funding forward to fiscal year 21.
  • 01:43:08
    It was originally, the advisory committee said 2 million and 22 and 2 million and 24.
  • 01:43:12
    So we made a little change in the timing of that.
  • 01:43:16
    So that was one change that we made.
  • 01:43:19
    Going into the four projects that we have included in the CIP, you've heard some information about this.
  • 01:43:26
    It also relates to the growth that you had in conversations with the school board.
  • 01:43:32
    For Crozet, it adds 28,000 square feet.
  • 01:43:36
    368 seats, side improvements and renovations, and for Kale Elementary it adds 11,780 square feet, 100 seats and side improvements.
  • 01:43:46
    So those are two of the projects that are included in the CIP.
  • 01:43:50
    You can see the dollar amounts there on the left.
  • 01:43:54
    Transportation leveraging, you've heard a lot about that.
  • 01:43:56
    This leverages state and federal dollars.
  • 01:43:59
    That's included.
  • 01:44:01
    the public-private partnerships, the P3 information that I just shared with you that we changed the timing a little bit on.
  • 01:44:08
    This position's accounting to make strategic investments in land acquisition for economic development opportunities.
  • 01:44:13
    That's included.
  • 01:44:16
    And then this slide, those are the projects we added in addition to everything else that we have in there that's built into the base.
  • 01:44:22
    So I'm going pretty quickly on this so we can have plenty of time for you to have discussions.
  • 01:44:29
    One thing about our CIP, it really supports your strategic plan.
  • 01:44:33
    We talked about it in December and January of how well this supports the strategic plan.
  • 01:44:39
    Many, many items in the CIP does that.
  • 01:44:42
    So I just wanted to bring that slide up as a reference.
  • 01:44:44
    And the real thing I want to talk about for the next few minutes is the recommended budget.
  • 01:44:49
    You have an advancing strategic priority capital reserve.
  • 01:44:54
    And it was up to $2 million.
  • 01:44:56
    And this was the board put in, I think, two years ago.
  • 01:44:59
    and we haven't spent it yet on anything.
  • 01:45:01
    It's a reserve.
  • 01:45:03
    This budget recommends adding 1.8 million to that.
  • 01:45:07
    Originally, we talked about it being added for maybe community agencies that may come in and then we decided as a board and you decided as a board that let's just add that to your strategic priority capital reserve.
  • 01:45:19
    So now that if you approve this recommendation, it brings it up to 3.8.
• • SPEAKER_08
  • 01:45:24
    It was one year, right?
  • 01:45:26
    We instituted that last year.
• • SPEAKER_20
  • 01:45:39
    So you might remember, and we talked a little bit about community requests that came in.
  • 01:45:46
    Before you made a policy on this, how you could use your Advancing Strategic Priorities Reserve.
  • 01:45:52
    We actually had a policy discussion on how we would move those projects into the regular budget processes.
  • 01:45:58
    We had three asks that came to you over time in the fall.
  • 01:46:04
    We had one from Crozet.
  • 01:46:05
    Aquatics Center.
  • 01:46:06
    They made a presentation to the board in August.
  • 01:46:09
    Thomas Jefferson Community Land Trust provided a request to you by letter for some funding.
  • 01:46:14
    And the Boys and Girls Club provided a request by letter in October.
  • 01:46:18
    So you've had some requests that have been coming in out of cycle, coming kind of directly to the board.
  • 01:46:23
    And we came up with a recommendation to the board about those requests, and the board approved it.
  • 01:46:29
    And this was approved on January 15th by the board of supervisors.
  • 01:46:33
    that we said on your strategic priority capital reserve, which now would be at $3.8 million, you can utilize it not just for outside community requests, but for requests that you have or for needs that the county has or internally.
  • 01:46:47
    So it isn't just an outward facing reserve, it's a reserve about your strategic plan and about the priorities of the county.
  • 01:46:53
    and we talked about
  • 01:47:14
    How does it connect to your strategic plan?
  • 01:47:17
    How does it leverage other funding if it could leverage funding?
  • 01:47:20
    And other considerations that we think about for all capital projects such as timing, safety, urgency, and connection to any other county plans.
  • 01:47:28
    And so I just want you to keep that in mind.
  • 01:47:30
    That's the kind of conversation we're going to have here in a moment.
  • 01:47:34
    We're in a process right now, so we have to think that we're in one right now.
  • 01:47:37
    You did have some requests that come in.
  • 01:47:39
    There's also another topic that we're going to talk about.
  • 01:47:42
    You can talk about including things now.
  • 01:47:44
    You can talk about maybe next year.
  • 01:47:48
    On February 19th, when the budget was presented to you, three board members expressed interest in learning more about the potential of including an additional convenience center in the CIP.
  • 01:48:00
    So we thought, and also Ms.
  • 01:48:02
    Palmer had talked about it during our five-year financial planning process, and said, hey, when do we put this on the table for consideration?
  • 01:48:11
    Mr. Richardson, this is a good time to bring it forth, bring it forth at this meeting.
  • 01:48:19
    So we went ahead and did a couple slides for your consideration and then for your conversation and discussion amongst yourself.
  • 01:48:27
    Just a little bit of background and over if you go over to the right top of this slide fiscal year 20 capital budget which is the budget we're living in today includes a convenience center at the IVMUC so there's there's a convenience center included and fiscal year 21 has the operating budget includes the up related operating costs so usually if you build something like that then you have the operating costs so your current budget has the operating costs associated with that and then over here on the left
  • 01:48:56
    When the CIP projects came in, the Board of Supervisors ranked them and then the School Board and Board of Supervisors ranked things together.
  • 01:49:04
    So our process this past year, this past fall, was let's rank things together based on kind of an affordability matrix.
  • 01:49:12
    and so this picture over here on the left is how it ranked.
  • 01:49:15
    It was called at that point a Recycling Convenience Center but just basically a convenience center and you can see it tied for sixth place there when everyone ranked it together and you know that what we did was we talked about affordability and we just really couldn't get too far down the list.
  • 01:49:30
    We got the top four projects but we really couldn't go too far down the list so that kind of shows you where it came out in the priorities.
  • 01:49:37
    And the request over on the right hand side on the bottom, the staff request was received for an additional center.
  • 01:49:43
    It was provided by staff.
  • 01:49:45
    It would provide the same services at the center at Ivy and it would provide a place for citizens to bring trash that would be compacted and removed from the center on a daily basis.
  • 01:49:54
    So that's how it would be a little bit different.
  • 01:49:56
    and then the next slide tells you a little bit about the money estimate that came in at that time and this is a very high level cost estimate and you can see as we always think about the five-year period because of the CIP so the project costs in the green chart there you can see there's some costs in 21 which would be the year we're talking about in our budget conversations and then it also have costs in 22 and then you can see on that bottom line the operating costs would then come in starting in 23.
  • 01:50:26
    So we'd have construction up front and then operating costs.
  • 01:50:29
    So this shows you a high level estimate.
  • 01:50:32
    And the assumptions for that estimate was that the county would purchase land for this facility, make all necessary improvements, and purchase containers and other amenities.
  • 01:50:42
    And the RSWA would coordinate the construction and manage it.
  • 01:50:46
    So that's just basically what was part of that request that came in.
  • 01:50:50
    So that just summarizes that.
  • 01:50:52
    And then we thought about your
  • 01:51:00
    your strategic reserve is how does it connect to the strategic plan and so there's some connections to the climate action planning it increases recycling opportunities economic development in that we are an outdoor destination community and that tourism and those types of things kind of can kind of connect to this
  • 01:51:24
    The other thing that we were asked to look at is does it leverage any other opportunities or leverage any other funding and that has to be still determined.
  • 01:51:32
    We weren't sure what kind of leveraging if there are any grants or anything that could possibly be available to help with it.
  • 01:51:38
    That would have to be looked at.
  • 01:51:40
    And then the last thing that we would look at is other considerations such as timing, safety, urgency, and connection to the county plans.
  • 01:51:48
    And Mr. Lance Stewart mentioned that there was a final committee report of the Long Range Solid Waste Solutions Advisory Committee that came out in 2015, which actually mentioned additional centers like this in the rural areas.
• • SPEAKER_02
  • 01:52:03
    Just a little bit more into the climate action issue.
  • 01:52:08
    One of the reasons why we were very interested in getting some drop-off areas is that we know a lot of people are burning trash because they don't have, some of them just like to burn trash.
  • 01:52:18
    Some of them do it because there's no convenient place to take their trash.
  • 01:52:22
    And we do have a lot of illegal dumping.
  • 01:52:26
    We don't know if having convenient spots will actually reduce that and by how much.
  • 01:52:31
    But the assumption is the more you make it convenient for people to get rid of it,
• • SPEAKER_20
  • 01:52:38
    I just wanted to pause here for your discussion again we thought about the criteria we thought we would use a criteria that we talked about and actually framing this for your conversation so
• • SPEAKER_18
  • 01:53:13
    I think two years ago we had half a million dollars for the secondary center in the budget and things didn't go according to plan so it's not something that's brand new it's something that's been going round and round and round in circles ever since 2010 and
  • 01:53:37
    I guess the geography of our county with one place where people, I mean, I'm not the only one that has a 40-mile drive to Ivey from my place.
  • 01:53:45
    I think people in your area as well.
  • 01:53:47
    So compared to other counties who are smaller geographically than we are and have many of these locations, the appalling amount of litter that we have.
  • 01:53:56
    I mean, that's like, the email we received the other day from Michael Franis, just the gargantuan number of bags of trash that the inmates picked up on early
  • 01:54:10
    I'm really hopeful that we'll be able to find a way to do this, not in the glamorous stage, but I mean, Nelson County has four of these things.
  • 01:54:16
    We've been to visit them.
  • 01:54:17
    They are perfectly small, have storm water, have different combat
  • 01:54:42
    And I think that's a really good model for us to follow, that we don't have to spend a fortune.
  • 01:54:46
    We just need to get started.
• • SPEAKER_12
  • 01:54:48
    Other questions or comments?
• • SPEAKER_19
  • 01:54:55
    So I'm just trying to wrap my head around what we're doing here.
  • 01:54:59
    So we're agreeing tonight to add this into our.
  • 01:55:04
    So help me frame this a little bit
• • SPEAKER_05
  • 01:55:10
    on February the 19th asked to see some additional information on this and so we brought that back at the Capitol
  • 01:55:34
    Laurie's got a slide that's coming up in just a couple of slides that talks about what's in the 21 CIP.
  • 01:55:41
    But this is not in there, Supervisor McKeel.
  • 01:55:45
    But you do have your strategic initiative reserve.
  • 01:55:48
    And if this board wants to talk about some initial funding for this in the coming year or anything else that is on the board's mind that right now is not in the 21 through 25
• • SPEAKER_19
  • 01:56:12
    So we have currently underway a facilities study.
• • SPEAKER_05
  • 01:56:18
    Yes ma'am.
• • SPEAKER_19
  • 01:56:20
    And that facilities study is looking at all the properties that we own.
  • 01:56:26
    And I will say, I am not at all against a communion center.
  • 01:56:32
    I think we need one.
  • 01:56:34
    I'm just trying to figure out, given our revenues and our budget and our situation, how to do it best and the right timing is all I'm trying to figure out.
  • 01:56:47
    I do agree that it would help, possibly help some with our litter.
  • 01:56:52
    We have community members that would like to, would certainly like that, including myself.
  • 01:56:57
    So we have a facility study, and that study is going to come back to us and
• • SPEAKER_15
  • 01:57:12
    So we have as far as the timing of that generally we have the space needs assessments of all the departments and we're now moving into the stage where internally we're reviewing those to make sure the department's reported and made common assumptions in terms of staff growth rates.
  • 01:57:33
    And then once we've got that nailed down, then we'll start looking really at the business of potential future growth, looking at possible improvements in our current space for adjacencies to help with customer service and really projecting out where we need to be in developing a plan.
  • 01:57:55
    So I think it's going to be June-ish before we would come back to you with the results of that.
  • 01:58:00
    But you're right, it does include
  • 01:58:02
    Not every property we own because there are a lot of small parcels that we were given out there, but we asked for basically everything.
  • 01:58:10
    over seven acres, no, over two acres, and everything of any significance that's in the urban areas or development areas.
  • 01:58:18
    So those we'll be looking at for potential, you know, meeting our potential space needs and other needs.
  • 01:58:25
    And that could certainly, and has in my mind included the possibility of looking at sites that's appropriate for multiple uses of things that we could do, like a public works yard or a convenience center.
  • 01:58:39
    Right.
  • 01:58:40
    So we're looking at land we own and we're also looking at land that we don't own but that has been proffered.
  • 01:58:46
    Thank you.
  • 01:58:47
    Which we could elect.
• • SPEAKER_19
  • 01:58:50
    So I thought we put out an RFP.
  • 01:58:52
    So what I'm hearing now is that staff is doing this work.
  • 01:58:55
    I thought there was an RFP.
  • 01:58:58
    It's just that staff is working.
  • 01:59:02
    So we did have consultants to do some of this work and you all are working with the consultant.
  • 01:59:08
    So I guess what I'm suggesting is that that facility study may be very informative if you think about it.
  • 01:59:18
    This building is full, right?
  • 01:59:21
    We're renting space downtown for our economic development.
  • 01:59:25
    That pains me immensely.
  • 01:59:29
    Maybe not everyone, I understand why we're doing it, but it pains me to be paying rent to the city for one of our departments.
  • 01:59:37
    The school division is, I think, needing extra space.
  • 01:59:41
    We're needing extra space.
  • 01:59:44
    I would suggest that, and I don't know how we go about this idea of a convenience center, but it does seem like to me that we have the opportunity when the facility study comes back, looking at some of the proffered land that is proffered to the school division and the board of supervisors, that we could look at how best to use that property or any other property that might come up through that study.
  • 02:00:13
    So that's where I am.
  • 02:00:15
    And I've been sitting very quietly.
  • 02:00:18
    Well, maybe not so quietly.
  • 02:00:19
    I'm sitting and trying to wait.
  • 02:00:22
    I felt a sense of urgency with this because there are some real opportunities that we have with about 61 acres of proffered land that we share with the school division.
  • 02:00:34
    Now, I'm throwing that out there.
  • 02:00:36
    And I mean, it's not like I've talked to the school division or the school board.
  • 02:00:41
    But I'm just saying that.
  • 02:00:43
    When we get this facility study back, I think it would behoove us to sit down with the school administration and the school board and look at what that study shows and what we have and what's available and then look at something like, I would suggest that we need a satellite police station up on 29 North as well.
  • 02:01:01
    I think that would probably be something that they would like.
  • 02:01:04
    A convenience center.
  • 02:01:06
    There are other things that we could use and if we have
  • 02:01:10
    Land that we might be able to utilize, I think that it would be advantageous for us to take a look at that.
• • SPEAKER_03
  • 02:01:17
    I think in terms of the site selection, that makes perfect sense.
  • 02:01:21
    But I think in terms of the budget, is there any reason we couldn't take a commitment of an amount of money?
  • 02:01:28
    If you go back, Gloria, I think one or two slides, you actually would have shown.
• • SPEAKER_19
  • 02:01:32
    Because I'm looking at, Donna, and I'm sorry.
  • 02:01:34
    The huge part of the budget is the property.
  • 02:01:37
    Which is kind of property.
• • SPEAKER_03
  • 02:01:45
    You know, you have $420,000 projected this fiscal year.
  • 02:01:49
    If we took a portion of that, and I don't know what it would be, and we obligated it so that once that study is done, we know we've got the money to get started on the project.
  • 02:01:58
    Because my concern is if we don't make a commitment now, it's going to be another year and another year.
• • SPEAKER_19
  • 02:02:03
    And I don't have a problem with that.
  • 02:02:05
    I'm just throwing that out there because I wouldn't want us to rush into anything right now on a site
  • 02:02:11
    until we're talking about what we might be able to do with the school board, school administration, and us.
  • 02:02:17
    And maybe it wouldn't even work out.
  • 02:02:19
    I had no idea.
• • SPEAKER_18
  • 02:02:20
    But I don't think anybody's suggesting that, actually.
  • 02:02:24
    I thought we were talking more about what Donna was talking about, of getting it on the list so that we have something that we're going to work on in the future when all this other information comes out.
• • SPEAKER_19
  • 02:02:31
    Well, I heard something about first just seeing a property, and I'm just saying that.
• • SPEAKER_02
  • 02:02:38
    I'm just going to say this.
  • 02:02:40
    Lance has been looking at all these properties, and he recognizes that they're out there, and there are a variety of concerns.
  • 02:02:49
    So I think Donna's made an excellent suggestion is let's get the money in the budget so that once that's done, then Lance has something to work with and a commitment on the board's part to move forward, and maybe that's
  • 02:03:07
    You know, the second half of the fiscal year, but at least it's getting going in this fiscal year.
• • SPEAKER_19
  • 02:03:15
    So we would take this money, this money would not impact our current, what we're talking about is using money that would come from 3.8 million, minus $300.
• • SPEAKER_08
  • 02:03:41
    The whole point of it was that over years we've had things come up to us out of budget cycle and the board would like some to be nimble
  • 02:04:08
    For me, to obligate the funds now, we still have the flexibility to obligate the funds when we have more picture of where it could be the site and the operating costs behind it because it does carry an annual cost to it.
  • 02:04:18
    It seems to me why would you obligate something now that could be shifted to another strategic
  • 02:04:38
    So you prefer to wait a little while on it.
  • 02:04:47
    It's just it's not necessarily even so much waiting at this point I you know I'm used to but we we see so many things a snapshot in one side how could any of us look at that and go we don't agree I don't agree with that I don't think we should spend money on that none of us with this sitting at this table would do
• • SPEAKER_18
  • 02:05:04
    Well, that's 15 years of Albemarle County history doing just exactly what you just said.
• • SPEAKER_08
  • 02:05:07
    Well, then somebody should have pulled the trigger and got it done.
  • 02:05:10
    But I suspect why it didn't happen in the past is because they put it up against a list of other items and said these things rank higher.
• • SPEAKER_02
  • 02:05:17
    Actually, I have to disagree with that.
  • 02:05:20
    I really do.
  • 02:05:21
    Because what we did when we started this hole in 2014 with solid waste, we were looking at actually closing the only facility we had in the county.
  • 02:05:33
    And what we recognized that after 14 years of being out of compliance with the DBQ, we had first with the investment.
  • 02:05:42
    If we're going to put investment into solid waste, we had to first correct the long-term issue that we had.
  • 02:05:49
    And that was very much the opinion of the Solid Waste Committee, who we had our experts and very professional people saying, let's get
  • 02:06:06
    And so you first had to get the transfer station done.
  • 02:06:10
    And once we got the transfer station done, which is wonderful, and I appreciate that we had the commitment from the board to do that, we then said, well, how do we tackle this issue of not in my backyard?
  • 02:06:22
    And so we said, OK, well, let's put a convenience center at Ivy.
  • 02:06:27
    It's valuable for the community, but it also allows us to have a place where we can send people and say, this is what it's going to look like.
  • 02:06:35
    If you're worried about it being a dump overflowing with trash because that's what happened in 2014.
  • 02:06:40
    People came in with pictures of what the dump used to look like in Albemarle County.
  • 02:06:46
    Overflowing wild animals, stray cats, all that kind of thing.
  • 02:06:51
    And so we said, OK, well, let's put that at Ivy.
  • 02:06:56
    And then we recognized that we had to deal with those other sites.
• • SPEAKER_08
  • 02:07:00
    So it's not been just around for 15 years getting passed over.
  • 02:07:03
    It was a legitimate, thoughtful plan to get us to this point.
• • SPEAKER_02
  • 02:07:07
    I mean, I'm hearing two different versions.
  • 02:07:11
    The last six years is what she's talking about.
  • 02:07:13
    It was a thoughtful plan to get us to this point.
  • 02:07:16
    Prior to that, Ann was on the board.
  • 02:07:19
    I did not think it was all that thoughtful.
  • 02:07:22
    But what the move was, was to privatize solid waste.
  • 02:07:26
    And we now know from what happened over those years that that wasn't the best thing to do.
  • 02:07:34
    And so this has been an issue ever since 2000, 2001 when we closed the landfill.
  • 02:07:41
    I don't have to go into all that history.
  • 02:07:43
    But when we closed the landfill, the then board decided to put in a transfer station that
  • 02:07:50
    was suboptimal, and it didn't meet DEQ standards.
  • 02:07:55
    And I will say, when I sat down with the DEQ representative back in 2014, and I said, this thing has been out of compliance for 14 years.
  • 02:08:03
    Why didn't you close it down?
  • 02:08:05
    And he said, because I couldn't do that to the people of Albemarle County, because that's the only place.
  • 02:08:14
    And at that point, he said, man, it's a big deal with Albemarle County Board of Supervisors who's now willing to tackle this.
  • 02:08:25
    So that's what we've been trying to do for the last six years.
  • 02:08:27
    But it's never gotten into the CIP process.
  • 02:08:31
    And I have asked staff about that in the past.
  • 02:08:35
    Our previous county executive, how do I do that?
  • 02:08:38
    How do we do that?
  • 02:08:39
    And it hasn't.
  • 02:08:40
    So I don't see this coming out of the blue.
• • SPEAKER_08
  • 02:08:48
    And we set this reserve fund up for that because it's basically circumventing the CIP process that would be a capital improvement project that we as a board would decide to do with funds we set aside and it doesn't really matter what the CIP process says.
  • 02:09:00
    That was the whole point of setting the fund up.
  • 02:09:03
    So my point is there's other projects on there
  • 02:09:06
    that this should be weighed against if we're going to do that just because it's there.
  • 02:09:10
    And then to obligate it when we may not have the ready to execute, when we may need that money to execute on some other things that we think are priorities is my point.
  • 02:09:19
    This, I think, is a reasonable amount of money.
  • 02:09:21
    I can draw the line to the strategic priorities.
  • 02:09:24
    But the timing of obligating the funds now before we've even scrutinized what other possibilities are that are maybe
  • 02:09:31
    That's sort of what the chair, I think, Mr. Chair, this is kind of what you're saying is we were modeling one internal
• • SPEAKER_05
  • 02:09:48
    project that had been brought forward by three board members.
  • 02:09:51
    And this slide was to lead the board to say, are there other potential uses that you're interested in at this time?
  • 02:10:00
    This won't be the only time you can talk about it.
  • 02:10:02
    The staff is prepared to take direction from the board tonight if that's what the board wants.
  • 02:10:08
    But also, you can talk about other uses.
  • 02:10:13
    We also have additional time later in this process.
  • 02:10:17
    You and I talked about that today.
  • 02:10:19
    They'll have another opportunity to come back, I believe on March the 5th.
  • 02:10:23
    Is that correct?
  • 02:10:25
    On March the 5th.
  • 02:10:26
    And so we're not trying to box you in.
  • 02:10:28
    We're trying to allow this work session format to work for all the board members in terms of whether there are four or more votes to move ahead on any particular item.
  • 02:10:40
    And we can go forward.
• • SPEAKER_08
  • 02:10:44
    We're so used to doing this stuff during budget process that the question for this budget is if whether or not we want the additional 1.8 to go into the strategic reserve versus some other area for it to land.
  • 02:10:59
    To decide how to use the strategic priority reserve, while it makes sense to do during the budget season, does not have to happen during the budget.
  • 02:11:07
    For the two million that's already there that was designed for us to use,
  • 02:11:11
    Yes, sir.
  • 02:11:12
    For any of these projects at any given time.
  • 02:11:14
    Yes.
  • 02:11:14
    So this is not like we have to decide this by March or April for the current two.
  • 02:11:19
    We do have to decide if we want to plug into that reserve for that flexibility in the future the additional 1.8 or should some of that 1.8 get shaved off to other places.
  • 02:11:28
    So I just want to be clear with what we're doing.
  • 02:11:30
    It gets a little bit
  • 02:11:33
    I don't want it to get confused with other budgetary decisions we're making, but this is something that we specifically set up the dot boxes into only being able to do these decisions for budget time.
• • SPEAKER_02
  • 02:11:43
    I will say that I wasn't expecting to make this decision a final decision tonight, but I think it's really good to hear from board members that this is a priority.
  • 02:11:54
    I do like Donna's suggestion.
  • 02:11:56
    I didn't think we were actually going to vote on it tonight.
  • 02:12:02
    But I agree that I'd like to see, I understand what you're saying.
• • SPEAKER_08
  • 02:12:08
    But you can do that at any, like if we close this budget up, and then this conversation comes up after we close budget, that's well within how we design the strategic board priority and preserve to work.
  • 02:12:19
    So this is, I just want to be clear on that because I feel like sometimes we get ourselves locked into the deadline of the budget and that's very different than this particular reserve fund and what the intent was when we set this up.
• • SPEAKER_02
  • 02:12:30
    But it also gives, if we do do it during the budget season or during this budget season,
  • 02:12:37
    Clarifying question, I guess.
  • 02:12:38
    I think people have been alarmed by the word allocating it.
  • 02:12:41
    I would prefer to think about it as we're making a list.
• • SPEAKER_18
  • 02:13:05
    of things that people want to include that may or may not, where we don't know where they're going to fit.
  • 02:13:12
    And I probably have the same one that Ned has, but maybe not.
  • 02:13:19
    But I am very grateful that there is support on the part of the whole county operation that solid waste is a public responsibility.
  • 02:13:28
    Because that's what we were lacking before 2014, was the fact that there should
  • 02:13:34
    And we were the laughing stock of the state and it was an embarrassing place to be.
  • 02:13:39
    So we're way ahead of that point now.
  • 02:13:41
    And to me, this is a baby step.
  • 02:13:44
    Back in 2008, there was actually $250,000 in the budget for a recycling center in Crozet.
  • 02:13:49
    And they're still jumping up and down about the fact that they don't have it yet.
  • 02:13:52
    So that's a reality that I deal with all the time.
  • 02:13:56
    And the northern part of the county, way down in the southern part, there are great needs and interests
  • 02:14:02
    in doing this.
  • 02:14:03
    And having something good that we can operate, that people can go and see, helps us keep control of the discussion.
  • 02:14:11
    So when we get ready to have it, whenever it is, we have some really good concrete things to go forward with.
  • 02:14:17
    So to the extent that I'd like us to start building a list for whichever category it goes in, that's what I was hoping we would be talking about today with this.
  • 02:14:27
    But to reiterate that we hopefully will try not to just
  • 02:14:32
    because it's pretty small compared to many other things we're doing and it's probably smaller than those numbers there if we're using some practice we already have.
  • 02:14:42
    Because Nelson got theirs for 200 grand a piece.
• • SPEAKER_17
  • 02:14:45
    My concern is if we push it off it won't happen.
  • 02:14:49
    Obviously this has been a great need.
  • 02:14:51
    We've needed it for years and years.
  • 02:14:53
    We don't have any convenience centers.
  • 02:14:56
    I want to make sure that it doesn't get pushed off.
  • 02:15:00
    I don't mind
  • 02:15:02
    putting it on the top of the list or allocating some money or something to make sure, beginning to do that, to make sure that it gets done.
  • 02:15:10
    And I also think it's a great way to let the community know that we're thinking about you and your needs because we don't have a convenience center and people have to drive miles and miles and miles.
  • 02:15:22
    Not everyone has someone coming and picking up their trash.
  • 02:15:28
    They're either burning it, tossing it, and that's not good for the environment either.
  • 02:15:33
    But I think that really sends a good message.
  • 02:15:35
    I think if we put this out to the public, that's something that they would really embrace because we're meeting the needs of the county, of the community.
• • SPEAKER_03
  • 02:15:46
    I concur with Chair Galloway's
• • SPEAKER_19
  • 02:16:05
    and that gives us time, we have time to discuss.
• • SPEAKER_17
  • 02:16:08
    As long as we're not kicking the can down the road.
• • SPEAKER_08
  • 02:16:11
    Well if we do kick it down the road, it's the six of us sitting here where we're responsible.
  • 02:16:17
    We couldn't say it was staff, we can't say it's the finance experts.
  • 02:16:20
    It would be us.
• • SPEAKER_17
  • 02:16:23
    I can't say it's Lance's fault.
• • SPEAKER_08
  • 02:16:25
    I agree with the process.
  • 02:16:29
    Now if staff is asking, because you want time to be able to do the homework on it,
  • 02:16:37
    you know if there are pressing and other budget concerns that are specifically need to be decided on for this budget and I say well this project I'd like to see for consideration for strategic board priority I don't necessarily want that side weighing and put you know what I mean if that can with some time give staff time to focus on budget when something that can be done through the strategic board priority can happen at post budget
  • 02:17:05
    You know what I mean?
  • 02:17:05
    The same concern I would want to give to staff.
  • 02:17:09
    Now some of the things, I'll throw the project out that I've had in mind and went on the list.
  • 02:17:14
    The intersection at Earliesville and Ray's Fork Road.
  • 02:17:17
    We have plenty of transportation projects that are smaller in nature that we know will never make it to the smart scale system.
  • 02:17:25
    Secondary six year road program, the priorities are way down the list.
  • 02:17:29
    It's a known safety issue at that intersection.
  • 02:17:33
    I applaud VDOT and Kevin and the transportation staff and the current plan for the permanent radar signs and the stop signs that they're putting out there that that should help.
  • 02:17:46
    But I think they were using the word temporary in there because we were still thinking about perhaps a mini roundabout to go in.
  • 02:17:52
    A mini roundabout will never get through our transportation priorities and are through the way we are going to focus it on state funding.
  • 02:18:01
    and I'm sure maybe the VDOT plan which is
  • 02:18:06
    This is one that I think is one that I will pursue to see that can be used for this.
  • 02:18:09
    The other two I'll put out in just kind of a category and won't give the specific items because I know it'll be coming later in the budget, but there should probably be something related to transit.
  • 02:18:35
    and some different ideas on that.
  • 02:18:36
    And that's something that I expect that we're going to have to discuss further when the transit and the transportation piece comes up to us down the road.
  • 02:18:43
    But this county may need to have some funds available to help dealing with some transit issues that are not currently, that are not in the current way or framed.
• • SPEAKER_19
  • 02:18:52
    And we have a budget work session scheduled to discuss all that.
  • 02:18:57
    So that's going to need some serious work.
• • SPEAKER_08
  • 02:18:59
    So some specifics could come out of that.
  • 02:19:03
    and then perhaps I'll reserve some of my other thoughts on it until the March 5th time.
• • SPEAKER_19
  • 02:19:10
    Does that help?
• • SPEAKER_08
  • 02:19:12
    Others are obviously invited to put things out there.
  • 02:19:15
    I know that that's what staff was asking for.
  • 02:19:17
    Yes, sir.
  • 02:19:18
    But I don't see myself having to decide on this idea of early zone race forward just as condensed into this, I would love it, just like the convenience that you'd love to see it done as soon as possible.
  • 02:19:32
    But it's one that also doesn't have to be locked and loaded in during the budget time because we have flexibility outside of that.
• • SPEAKER_19
  • 02:19:40
    And that would be, I think, several of us would agree with you certainly on that project as well.
  • 02:19:45
    So it's worthy of consideration.
• • SPEAKER_18
  • 02:19:48
    Daniel's bringing forward new information into the March meeting.
  • 02:19:55
    So the dictated language from Vietnam to say put this into your plan so that we can
• • SPEAKER_08
  • 02:20:03
    Okay, is there anything else anyone else wants to put on the table at this point?
• • SPEAKER_20
  • 02:20:31
    This is just, as we're thinking about processes, we're in the middle of a process right now.
  • 02:20:36
    We also have next year's process.
  • 02:20:38
    We just wanted to mention to you what we're planning for the CIP process for next year, that we plan for it to be modified for what we did last year because we have a lot of information already in it that we would just update the revenues, update timing and costs for the current projects in the CIP, update spend plan timing so that we can manage the debt timing,
  • 02:21:01
    and we have this thing we used to do where we had like an amendment year and a full-blown year so it would be amendment in some way although we don't know if we're going to do that every other year moving forward but consider any urgent or emerging needs for fiscal year 22 to 26
  • 02:21:17
    and consider any additional projects for that last year.
  • 02:21:21
    So a project could come on the table for fiscal year 26 and then move its way up through the process.
  • 02:21:27
    So that's basically, I just wanted to share that with you as we're thinking for next year's process for
  • 02:21:36
    And then this is just my last slide.
  • 02:21:39
    This is just your capital budget.
  • 02:21:40
    As we mentioned, the CIP is a plan.
  • 02:21:43
    The capital budget is what will be appropriated by the board after the board approves the budget.
  • 02:21:48
    And the capital budget is the first year of the plan.
  • 02:21:51
    And so the capital budget right now that's in your document is $49 million.
  • 02:21:57
    It includes maintenance and replacement programs.
  • 02:22:00
    It includes the bike pad quality of life project
  • 02:22:04
    put in before but this is when it would actually be appropriated in in the transportation leveraging program and includes an amount for ACE and includes a million of the economic development funding as we mentioned earlier and Crozet Elementary addition and improvement project would begin in 21.
  • 02:22:25
    And that's just a summary.
  • 02:22:27
    And you do have, and I think that Ann maybe going there, you have, we used to call it blue sheet, but you have a sheet in your chapter on page 221 that basically talks about all the existing projects that are being carried forward from the past and that are in the CIP and then the first year's capital budget.
• • SPEAKER_17
  • 02:22:46
    I don't know if this is the right time to bring it up or not, but I know we're also facing a shortage in the fire rescue.
  • 02:22:56
    And I know that we could actually benefit by hiring or having five additional personnel because we're also talking about reallocating staff to meet the need in other areas.
  • 02:23:13
    I mean, we are growing as a county.
  • 02:23:17
    and our volunteer departments are shrinking and I think not only fire but especially EMS services and ALS services are extremely critical.
  • 02:23:29
    I know in my area, in Pan Tops, we have probably the largest amount of probably EMS calls because of, you know, we have Westminster Canterbury, we have Commonwealth, we have
  • 02:23:43
    all these facilities.
• • SPEAKER_08
  • 02:23:45
    So not to interrupt, but this is focused on capital.
  • 02:23:50
    There will be a point where we'll address public safety as a separate budget item as we work through the process.
  • 02:23:54
    So I think that would be the most appropriate time.
  • 02:23:57
    Obviously, though, heads up.
• • SPEAKER_20
  • 02:24:00
    Thank you.
  • 02:24:03
    OK, so unless there's more dialogue that you'd like to have.
• • SPEAKER_18
  • 02:24:09
    I have a question.
  • 02:24:10
    OK, sure.
  • 02:24:11
    Can you help me remember or help us remember under your transportation leveraging quality, what are those because I have a hard time figuring out which ones they are still
• • SPEAKER_20
  • 02:24:27
    We talked about while Tia's looking up some information we talked about the bike ped projects if you remember we did the quality of life and we said let's put some money towards quality like yes fiscal year 19 and we said about six million yeah towards these projects and so she's pulling up the ones that
• • SPEAKER_18
  • 02:24:53
    and we hear all this stuff so I don't know.
  • 02:24:58
    I was looking on the list on the big sheet to see if I could figure it out.
  • 02:25:02
    It's probably not listed on the sheet.
  • 02:25:06
    And if you want to send it later, that's fine.
  • 02:25:09
    Thank you.
  • 02:25:10
    We'll send it out to all the board members.
  • 02:25:12
    It's a continual source of confusion about what those projects are.
• • SPEAKER_20
  • 02:25:21
    This is the kind of showing you the next steps in our process so our next meeting is March 3rd.
  • 02:25:27
    We'll talk about general government functional areas.
  • 02:25:30
    This is where we'll talk about public safety and all the other categories.
  • 02:25:33
    We'll talk about more about your reserves.
  • 02:25:35
    Anything else Andy?
• • SPEAKER_10
  • 02:25:38
    Community agencies for the operating contributions will be part of that, not just county departments.
• • SPEAKER_20
  • 02:25:43
    So that's our next meeting and then you can see we'll have a public hearing on March 4th and then March 5th is the day that you'll receive a revenue update.
  • 02:25:51
    It'll also be the day that the board would approve their proposed budget for advertising for the next public hearing and finalize your tax rate.
  • 02:26:00
    and then March 11th we have a work session scheduled in transit.
  • 02:26:04
    You have a work session placeholder if needed so there's an actual date in there if there's any other conversations you'd like to have and then there's another public hearing on April 13th and then there'll be approval of the budget on the 20th.
  • 02:26:17
    So thank you very much.
  • 02:26:19
    I hope that this was useful to you.
  • 02:26:20
    15 minutes to 8.

3. From the Board: Committee Reports and Matters Not Listed on the Agenda.

• • SPEAKER_18
  • 02:26:39
    Senior Center is hosting a paper shredding event, March 10th, from 10 to 1130 in the morning, $5 a bag or giant box.
  • 02:26:50
    And it is spectacular to have three cars full of stuff and it disappears.
  • 02:26:55
    And you watch them do it, so it's not like they're taking it away and supposedly shredding it in some secret location.
  • 02:27:00
    March 10th, 10 to 1130 in the morning.
  • 02:27:06
    And I will just announce, and I'll do this in writing later too, I've scheduled three town halls.
  • 02:27:11
    The early spring town hall is March 24th and Crozet at Brownsville Elementary, March 26th and early still at Broadus Wood, and March 28th.
  • 02:27:20
    Those two are the evening at 7 and the March 28th, which is the Saturday, 10 in the morning, out at the Whitehall Community Hall.
• • SPEAKER_02
  • 02:27:39
    We have a private company that wants the cooking oil, which is a great thing for our sewer infrastructure because we're always trying to talk people into not pouring oil into the public septic system.
  • 02:27:59
    But they are taking the oil and recycling it into biofuels and something else.
  • 02:28:06
    I'm blanking.
  • 02:28:09
    So will restaurants or clubs be able to use that as well?
  • 02:28:12
    We have at Greencroft, we have a very specific, anyway, we've handled
• • SPEAKER_19
  • 02:28:38
    and other clubs.
  • 02:28:41
    So restaurants and clubs can be open to anybody.
  • 02:28:44
    That's great.

4. From the County Executive: Report on Matters Not Listed on the Agenda.

5. Adjourn to March 3, 2020, 3:00 p.m., Room 241.