Board of Supervisors Budget Work Session #1   3/8/2023

Hi, good afternoon everyone and welcome to 241.

Thank you, Ms.

Jones.

Kelsey Burch, chief financial officer, and Mr. Bowman, whose title I don't ever remember correctly.

About a year ago at a public hearing, a community member referred to the CFO in Andes, so we're just going through that.

Good afternoon, Mr. Bowman.

I will be walking through today's presentation and we'll be turning it over to various staff along the way.

So I will take the first of many pauses just for a show of hands if there's any process procedural questions from the board before we start diving into content.

There we go.

Thank you for having us.

It's not so much parking lot, but hey, can these be provided before that?

decreasing related to those changes.

Thank you.

trying to give the board some of the just awareness about how we're thinking through some of these things and taking Dr. Bailey's report and applying this into the budget.

So I just wanted to connect that.

While we're here, not a revenue item, but this is very natural detour to talk about tax relief for the owner and the seller.

Could you say it another way, Andy, or could you explain it again or else?

Sure.

Go for it.

Yes.

It would have to be cut.

Sure.

And we'll see what other questions you have.

Well, I guess my point was would it be enough

And so it would likely have to be a combination of revenue and expenditure reduction cuts.

Thank you.

Thanks, Sandy.

Thank you.

But in a nutshell, that's where we are right now on tax relief.

Thank you.

What is the Wednesday Elderly visit?

That's all right.

Do you expect our

So I know what went on.

I believe by the 15th, but I'm going to ask the people in the front row to tell me if that is unrealistic.

We should be able to have something.

Thank you.

So thank you.

That is a policy option that was not available 365 days ago, but it could be in the future if that is something that the board wants to consider.

It was somewhere in the $5 to $7 million range, if I remember right.

Yes.

It's an add up of lost revenue.

In the same way that the lowered or effective rate for real estate is lower than the recommended rate, if you had a comparable rate to say what would be the rate that would bring in the same amount as revenue last year for personal property, that would be higher than the recommended rate.

That's capturing the fact that the values have not dropped as fast as inclined.

Correct.

I'm happy to pause here for any questions the board may have.

We both brought order, Supervisor McKeel.

Sure, and while you have that slide up, in the, just for clarification, mainly for the public, because we are receiving lots of, not lots, that's really the truth, a handful of questions about what they're referencing, the 43.4 million, the fund, and referring to it as

But I just think it's important to talk about it a little bit more

Did I help?

All right.

And we would run out of it someday if we kept doing that.

It absolutely is.

Yes it is.

That is the recommendation that we received from our agencies.

Yep, which allows us to access the capital markets and get the best interest rate possible.

I kind of figured that, but in my head, I was also thinking about the Department of Education and the younger administration, their mistake

So that's a question for us both today.

And curious about what you all thought the implications of that was.

And maybe there's not an answer right now, but I just thought it was interesting.

The machinery and tools that really reflects the trend that we've seen over time, based on kind of the number of businesses who are paying that age of equipment and there are other things they use in the manufacturing process to track that.

We're not manufacturing as much as we were maybe.

But if it's a trend line and what it says about businesses in our community and

Yeah, we could certainly provide as a follow up kind of beyond it's all we really have is three years here.

Yeah.

How does that strategy project enable some of those other actions out there?

And I've always been told three years makes a turn.

I'm pretty sure I've said that more than once.

So it's an excellent question that we'll, you know, we'll provide a response to the board to see if it's a different.

There are revenues from businesses opposed to... You see where I'm going with this?

Yep, yep.

Okay, we'll get to that.

You're predicting a much, much, I don't understand predictions.

I just want the public to understand, and myself to understand as well.

Is that the question?

Well, yes.

For all of us to understand how that would play out for our bottom line, given that if we didn't take that decrease into account, did that help at all?

I'm speaking of if there's a significant decline in exchange.

So that, I guess that's where I'm trying to go with this too.

So that's one area that we've tried to cushion the potential impact next year if we get the projections wrong and if the economy does something that we cannot expect at this moment based on where we are.

uh due to the primarily the assessment growth we have to be able to show you what the uh consequences of that are and we have to be able to show you in a way to where how we can scale it accordingly if it's capital then it has to match uh the the uh uh uh operating or if it's just operating and what does that mean in terms of service delivery right hope that helps yes that does and just a quick follow-up to that um would it be easy

But we need to just, because you talked about numerous capital projects that would have to be, could you just give us a list at some point of those projects?

Just so that we can share that with the public, if they ask, that would be great.

Well, that is part of Monday's work session as well as the big way of meeting you.

and I'm sorry to be belabored this, but is page 71 within what we're talking about now?

Yes.

And I'm trying to reign on that.

Page 71 is the state revenue or one of the state revenue pages.

around the University of Virginia and their taxes.

And I don't think people really understand, and I'm not sure I completely do, I think I know the basics, but the university has a foundation, the university has the academic views and the medical stuff, right?

Anyway, that's probably enough said.

Yeah.

Would that be fair to say regarding with the 2% adjustment?

And we have done and made decisions, recommended it to the board, that really doesn't put the county in a position to not handle what the future might hold.

Last year, a year ago, did we have a projection what the assessments would be?

We would have assumed this time a year ago that the calendar year 23 risk reassessment would have been three and a half percent growth.

Okay, and for the assessments for real estate property?

Correct, yes.

Okay, and it's a lot?

Yes, 13.46.

Either way, would we consider making a mid-year budget adjustment or not?

And make sure that we are not overspending and doing things that we can't afford to do.

And so that's why I was saying, if we're being cautious, what are the other with the 2%?

Again, I hope we don't have the three month budgeting process, but beyond that, we can treat that as a budget management issue, rather than having to kind of redo the budget.

When you talk about the total housing fund with the $2.9 million addition, what would that bring the total housing fund to?

There's some funding that is apparently not planned for yet, so this $3.9 adds to that to get to a total of $4.7.

$4.7 total.

Is that now taking into account this new assessment?

Yes, that reflects the board adopting or anticipating the adopting the recommended rate and the new reassessments there.

Did the budget as adopted take into account your projection as to how much you thought the rate, the assessment would go up?

Then from that 209 million, we then, okay, what are our assumptions for fiscal year 24 that then build upon to a projection of 228?

Like where do we think the numbers are going to come out this year and then we build the budget off of that for 24 and then they get refined?

from the previous year.

And then when you look at the total assessed value, that would include everything, because we base all of our figures on that.

And what I'm trying to say is, is there a way in which the people who would least be able to afford the personal property tax are getting relief that we then recover, but they don't, but they didn't have to pay.

Um, okay.

That's essentially $8.5 million actually

It's just a question of where does that come into play and I think it's important to the public

So it's zero to 1,000.

You don't pay anything.

I think it's 1,001.

There's no receipts.

I forgot what the current rate is.

What is it?

342.

Thank you.

Thank you, Jim.

Is there a difference there?

Excuse me, but as I look at it the revenue chapter appears to be consistent from the other so we will get that cleaned up the adopted document but there is no definition there is no difference between estimated projections.

Yes.

Supervisor Malek?

Thank you.

So if there is any way to summarize, here's how our working assumptions have changed since the fall.

and so it's more of some of those incremental kind of around the edges changes on particular revenues about trying to match up the two kind of that statement of looking at the macro economic indicators and then how does that relate to our revenue projections and then how does it actually play out does that help yeah it's it's it's Jim supervisor Andrew started to get at this though when we think of okay do we you know a choice could be do you equalize the tax rate or do you increase the real the card stuff back up

and trying to understand that full picture, not just in how we project what our revenues are going to be and our expenditures, but what our, our residents are committing as we make all of these decisions.

I think that I get what you're saying.

And yet sometimes there's a sense that we are really not doing much for mental health

If we don't know the answer to that today, I'd like to know that.

$13.6 billion.

Is that the number?

In there somewhere.

But we could put that together.

It was in the Q&A, right?

That would go up, yeah.

Around 13.8, is it plus?

Something like that, I may be missing.

Thank you.

So it's not that big of a deal.

We need to detail the other couple of lines, make up that.

I mean, we are pretty constrained on what we can do.

without a lot of changes in those policies.

And that really provides us greater stability and security in the event of substantial economic changes as happened with the pandemic.

Yes, that coupled with uncertainty with state would be another area.

We've been able to use well over half our time in the first section.

Good.

I'll have a list of actually what makes up that 12.5 in just a couple slides.

And we're talking about salaries.

So Albemarle County Public Schools is not going to receive 7% to pay off their, I'm just saying it's really important.

Well, in reality, as it goes through the composite index.

And just for SOQ supported positions.

So it is very nuanced.

Yep.

Bursch to speak to on this.

So that is what that is.

Thank you, Christy, for joining us.

Hello.

So the full CSM includes all of that work.

There is a dollar amount.

We actually started with that five-year plan last year and I'm going to look to Mr. Behm and appoint you to the right page.

There are operating and capital components and as a follow-up we can make it clear what those are in total and the different pieces.

One of these really expensive elements that we have to be able to identify.

So the number I remember is the total.

And so it's really exciting and I'm glad we are where we are.

And so this new modernized system will be able to replace those manual things that we've not been able to overcome.

Schiffman.

It has a lot of effect with our workforce.

One more slide before we open up to board questions and discussion on administration.

I'll now open it up to the board for any discussions.

Supervisors, can you hear me?

I don't think it's in the book.

No, it is not, but we can provide that.

Absolutely.

Having said that, one of the

possibilities that is being investigated through TJPDC and the Regional Transit Partnership is the possible thought of going to an authority.

I'm just, you know.

So I see it as kind of two parts depending on where the regional transit partnership work

Yeah, they have a consultant doing that work, too.

Yeah.

Yeah.

The administration, what's involved in administration is always counterintuitive to people.

There are companies that would die for an administration of 7%.

Is the step increase longevity for level of education?

Thank you, that was what I was trying to say.

So it's for longevity, do we have anything or maybe in the future thinking about something that would a step increase would include if they do above and beyond certification or training or something like that that isn't offered but they do that on their own?

Yeah there are components for education and other stipends that can be very limited by department based on certifications

Supervisor Andrews?

Obviously, the $2.8 million for social services positions continuing

We'll speak to the additional theme of SABRE just a little bit.

They fit in this category.

of those, as well as there's a transportation position and community development tube is included in that count as well, but mostly within the facilities planning construction staff.

And I take it users are also part of this process in addition to staff.

It's not just putting in a system and putting the switch.

Okay.

Supervisor Maddox?

Thank you guys.

Thank you.

Thank you for being here today and taking the two plus hours out of your very business.

Thank you, Commonwealth Attorney.

And does that conclude your part, Mr. Chair?

But while he took from the seat, this may be a good time for the board if they have questions for me.

You have one comment.

That concludes my comments on judicial.

Supervisor McKeel?

And I don't have any questions.

Supervisor Malek.

And in addition to the serious offenses you talked about and the misdemeanors you talked about, there's all those middle people, the neighbor-to-neighbor conflicts that you have helped us so much and we should very much provide that public safety in people's homes and neighborhoods.

Do we know?

There's a lot of variables when we go into that, but I can imagine we could put something together, and I'm not sure whether documentation may already be done in the community to speak to that, that Commonwealth Attorney's Office and others may be aware of.

I'm trying to match to say, well, is there a real increase in the actual cost in the big picture of the budget or not, if that makes sense?

And so I think that's also a piece of it that we want to dig into.

Yeah, they are affect.

Mr. Richardson.

Well, thank you, sir.

Before we go to the next section,

I'm not sure what the board's desire is on an end time and a break, but I would just want to pose that question to the chair just so we can plan accordingly.

So just something to think about.

So what exactly, I mean, I've finished by six today, because you've got somewhere to go.

Well, I would like to leave at least if I could by six or very shortly, because I built my schedule around.

Thank you.

I would be respectful of them coming downtown for the afternoon as well.

We just had a lot of good questions and it's been a great discussion.

We've included in the local cost for a match what we would need of $178,000, but we have additional slide on the details that I'll ask Mr. Puckett to speak to.

Welcome.

So I'll remain around for any questions.

I'll turn it over to the Chair.

I just wanted to thank the thought that it never occurred to me as we're going denser and going up about the ladder trucks.

We have a ratio of police officers to population.

And are we at are we

Colonel Reeves is here and probably has the data off top and said that you're here to speak today.

And I'm sorry, go ahead.

Yeah, and that three sworn officers as part of that plan, as population tends to grow, factor in response times of our officers and our ability to provide services.

Thank you for watching!

1.3 is about where we are, but we'll provide the exact ratio as part of the follow up.

Thank you.

So I'm very supportive.

It's sort of the mental health, I think is what you're looking at.

Yes, exactly.

I agree.

Thank you.

Supervisor Mallek?

The development of the models.

Yes ma'am.

The FEMA grant, just the current ladders are at 8 and 12, right?

Yes, we have one at Seminole, Alameda, and one in Crook Bay.

So as far as 11 would get one.

Yeah, we would replace an existing truck out there with less.

Oh, OK.

Thank you.

I'm so sorry.

You've had staffing, you've had significant vacancies in where you are right now, because I think that's part of your story.

I thought you said 60, and I was about to say 60.

I was going to be blown out of the room screaming.