Board of Supervisors Meeting   5/4/2021

Call to order this meeting, May the 4th of 2021, here at 7 p.m. in the general program.

First item of business, if it is okay with the board, I'd like to move the secondary six-year plan to the top of the agenda for the sake that Mr. Robert gets down to Charlotte Courthouse at a reasonable hour.

Tonight, I'd like to present the FY22-2227 Nelson County Secondary Road Destruction Program.

I think everyone on the board received a draft copy.

That draft has not changed with the exception of our prioritization of upgraded roads from our last work session.

That information was not available when this original draft was done.

What you have in front of you is the same draft, but if you look on page three,

For FY24, I'll be line 9 and line 10 and line 11.

You see in the comment section the priority of the projects that we prioritized our work session last month.

And if you'll notice, we prioritized eight projects during our work session.

And the number one project was Campbell's Mountain.

And anyway, that was a mistake on my part.

The existing project in the six year plan that covers Campbell's Mountain completes that route.

Somehow we got off on our mileage.

So the project that is currently in the six year plan completes all of Campbell's Mountain, which is a good thing.

It gives us more to work with than other places.

I have extra copies here if anybody in the audience would like a copy.

I'll be glad to give you one.

How big?

The good news is we can always change this.

And I'll just start at the beginning of the plan on page one and just bring you up to date on where we're at.

You'll recognize some projects in here that have already been completed, but we haven't closed them out financially.

If you look on page one, one of four has our allocations.

projected throughout the next six years.

And they're holding pretty steady, a little increase in the latter years of the plan, but that really doesn't mean a whole lot right now, because that's five or six years out if it changed.

But if you look at our, on page two or four, Carnhill Road, that road has been completed.

We completed construction on that, and we are awaiting financial closure on that.

Route 612, Bottoms Lane, that road has been reconstructed and hard surfaced and we're waiting on financial closure for that.

Route 612,

The initial construction of that road has been completed, but we have found a discrepancy in where our N.L.

State Finance is located at, so there's a little more additional work to do up there that we're working on now and getting that clear environment so we can start work, finish that project.

I think it's about three or four hundred more feet that we need to build, and that would get us up to where

They probably split up there.

At some point now, our sign got moved because it's too short.

It's not in the right place.

And if you go up there and look where the entrance is forecalled to the different properties, it makes sense where the right measurement is, makes sense.

That's the interstate bank.

So we're working on that.

High Peak Road is a project that's fully funded.

I anticipate us starting on that

It is ready to construct.

We just didn't get to it last year, but we will be starting on that very soon and looking forward to completion of that.

The next project is another mile section of Cedar Creek, and that is fully funded.

It was fully funded last year in FY21.

We are planning to start on that just as soon as possible.

And then our next project,

Wilson Road, there was some thought of delaying this until after the bridge was constructed, but given some additional thought, the bridge construction is going to be relatively central, located on the end closest to 653.

and I don't think it's going to have a major impact on the rest of the road.

Yes, we may have to do a little touch it up after the red bridge is built, but I don't see that being a major issue.

So we will proceed with that one also.

And then if you turn to page three or four, you'll see another, the final section of Campbell's Mountain Road.

and FY, I guess that'll be FY 22 next year.

And then you see Norfolk Road, right 687, that will follow that.

And that was what was in the previous plan, FY 21.

And then if you look on line nine, you'll see a balance

of Nelson County Rural Rustic Funds.

And here you'll see in FY24, we are looking to complete Jacks Hill.

We're looking to complete C3.

Then in FY25, that'd be line 10, 2.10.

That's physical year 25.

We're looking to do Ball Mountain, route 643.

Route 648, Whippoorwill, Route 765, Honeysuckle Road, and Route 674, Calhalla, and start partially fund Route 623, Davis Creek, and FY 25.

And then in FY 26, we see the remainder of Davis Creek being funded in FY 25.

We don't have all the funding in FY26 program or 2017 program, but we maxed out and we're able to get all of the priorities that you all set at our work session into the plan.

So sometime in next year when we do our work session, we'll need to come up with a

We'll need to finish prioritizing and add anything else you want to the list of prioritizing.

This is the draft of the six-year plan.

You also have a rural-rustic priority list, and this is the list that we worked off on our work session.

And if you look on that list, you'll see our priorities from one to seven, and as I said,

That's as far as we prioritized in our work session.

So these rows below it, those will be rows we could consider doing additional prioritization, say, next time this year.

Or if you have constituents that bring you requests, we can add them to this list and we can include those in the priority type of progress.

But this list right here, it gives us a list that we can pull off of that has your input as well as public input on what goes into the plan.

And that is what this list is for.

So typically speaking, obviously this is still, even though we're accepting this today, it's still a living document.

It's always a living document.

I mean, really, when you get right down to what you, it's called a six-year plan, but really the only thing you'll improve in this is the first year.

Because we're going to do all of this again next year.

with everything that's in FY 23.

So really, all you're doing is approving the first year or six year plan.

But it does, but setting the priority is important because it gives us a plan to work to and helps us make adjustments along the way to meet, you know, to meet the needs.

When it hits this plan,

I mean I know this board has been very faithful to those folks who have made the trip up here say three years ago to make requests and I admire you for not changing priorities once they hit this plan because that would be tough on a constituent who thought their project was in there, their road was in there and

You wouldn't want to do that.

Another quick question.

Will the upcoming stimulus potentially impact or potentially expand on rural russet projects that you're aware of yet?

I don't look for it.

I don't look forward to having a major impact because that money will be federal money and none of these unpaid roads are federal aid highway.

The only way, it could have some impact to free up state dollars to go on unpaid roads.

State dollars, it could replace, that stimulus could replace state dollars

and other areas that could be channeled to unpaid relevant projects.

Like the lottery money, it's all going to the schools, but yet they took it at the bottom and funded everything else.

Good answer.

Great.

Any further questions for Robert?

That means if you have a seat, we'll open the public hearing.

Okay.

Great.

We have the public hearing for FY22 through FY27 secondary six year plan R2021-26.

For those who have signed up, I will read your name.

There will be a three minute time limit.

There's only two of you.

I believe you were, did you want to speak today?

If you could just come on up, yes ma'am.

My name is Marjorie Finer and I live in Woods Mill.

And we have, in our neighborhood, two and a half miles of unpaid, privately owned roads.

We each have right-of-way through our property.

And we have a homeowners association, of which I am the president, to the only purpose is road maintenance.

When I moved into the neighborhood 20 years ago, there were maybe five families that lived in there.

and there are now 20 and there will probably be more.

And it is becoming beyond our capacity to keep up with that road system.

I don't think it's safe.

I think if there were fire trucks, police trucks, ambulances, they're going to have a hard time at times getting in and out of there.

Old Ridge Road, which is the main road that comes in from the Barry's Bar to the end,

is a mile point four and that road has to be used by everybody regardless of where they live.

They're all coming in the same way.

It's the only entrance into that property.

So we just spent $7,000 to improve 1400 feet of that road and we just, I'm asking the county for help.

That's what I'm here for.

I would love to be included in this six year plan if that's at all possible.

You're shaking your head.

That's not good.

But that's what we would like to figure out a way.

Just before the meeting, Robert mentioned something about revenue sharing.

That would work for us.

I think if we could do something like that.

We do the best we can with what resources that we have.

Yeah and so I understand that and this is not to interact too much because that's not the purpose of a public hearing but if you could have the opportunity to speak with Robert at the end of this you guys could get some good context in there of what revenue sharing is how the details are it's a good bit of information it's a lot of work the county doesn't necessarily take that on immediately there's some pieces that the county has to participate in

Robert will apprise you of what that is because it's going to be the duty of your association to kind of front the effort on there.

That would be considered a rural addition because it's privately owned and it's called a rural addition to take another road into the highway system.

It used to be part of the state system.

It actually has a number.

It's Route 700.

It could be that much.

Gotcha.

Perfect.

Thank you, ma'am.

Okay, thank you.

Would you like to speak, sir?

It's the same thing.

All right, with that being, Dr. Eagle, you put your name on the sixth year, but I know you mean the budget, right?

Got it.

With that being said, is there anybody else who wishes to speak in regards to the secondary six-year plan?

Hearing nothing, I close the public hearing.

That's closed.

At this time we are looking to do action on the FY22 through FY27 Secondary Six Year Plan R 2021-26.

Is there, what is the pleasure of the board?

I'll move that we approve the

We have a motion for Mr. Parr to approve this.

We can go to discussion after we get a second.

So this particular plan here, this one right here, this packet, this piece of paper,

So he, we just made a motion to approve it as presented.

So you remember that list of roads that's over here on the resolution?

The very last page.

Now this can change, Skip.

It's not necessarily married, but we try to keep it as consistent as we can.

And as Mr. Robert had mentioned, you know, we just basically essentially, we're not doing budget.

Skip Barton seconds.

Mr. Barton?

Yes.

Mr. Barton?

Yes.

Mr. Barton?

Yes.

Yes.

Great.

So that is approved.

If you all could make an opportunity to follow Mr. Robert and get some info, that would be great.

Robert, I got something else for you.

Yeah, well I'm, we're tough.

I've got a call today from the fire department from Africa.

And I don't know if you can get to the first.

State police use that for truck checking sections.

And it's turned the road all to pieces.

Huh?

No.

built that one down there and it never did work because they had a wreck here coming down.

But they were looking for something they don't expect anybody to do at all, but they were willing to, you know, they're going to continue to do it than they expect somewhere.

Yeah, because the lower end of that driveway where they pull in there,

at the end.

All right.

All right, thank you, Robert, again.

Moving forward onto our next item of business, we have a public hearing for proposed FY21 through 22 county budget, all funds.

As a, just a informational point, today is just a public hearing.

The board will be taking no actions.

We will only be taking the comments from the public.

So with that being said, we only have one particular person signed up, but if you're okay,

Is that alright with you?

That'd be great.

Alright, good evening.

As Mr. Rutherford said, this is just a public hearing tonight and there's a seven day waiting period before any action can be taken on the budget.

Alright, so this is for fiscal year 2021-22 from July 1st, 21 to June 30th, 2022.

Our tax year 2021 tax rates have remained the same.

There's no change.

All tax rates are levied for $100 in assessed value.

Real estate mobile home tax rate is $0.72, personal property tax rate is $3.45, machinery and tools is $1.25.

The county utilizes a fund accounting system for tracking vegetarian financial activity.

The board is considering proposed budgets for each of the seven funds denoted on the screen.

And we will briefly overview the two largest funds, which is the general fund and the school fund.

Compared to the current budget year as amended through March of 21, the proposed general fund budget reports a decrease of $170,509.

which is a negative 0.40% decrease.

Budgeted revenues and expenditures are balanced at $42,090,576 for FY22.

We'll start by looking at the FY22 proposed revenues totaling $42,090,576.

So this graph shows the FY22 proposed revenues by major category.

Local revenue consisting of general property taxes and other local taxes make up 76.8% of the overall budgeted revenue.

Our total anticipated local revenues are $32,305,943.

State revenues account for 10% at $4,210,223.

And federal revenues are 9.7% of the total budget at $4,087,851.

and that includes anticipated American Rescue Plan Act funding of $2.9 million.

Our non-revenue receipts of $275,777 include a transfer into the general fund of reassessment set-aside fund and also a $1.2 million year ending balance which is anticipated FY21 revenues over FY21 expenditures.

Those together are 3.5% of total revenue.

FY22 local revenue makes up about 76.8% of the total general fund budget at $32.3 million.

The primary source of local revenue is general property taxes, which account for 61% of all local revenue.

Increases of $715,180 in general property taxes

and 164,765 in other local revenue are offset by decreases of 225,826 in other local revenue.

Some significant local revenue factors are shown on the screen.

In terms of general property taxes, real estate taxes shown here do not include any adjustment changes in values that may result from the 2022 reassessment effective January 2022.

The FY22 tax collection is calculated using half of the 2021 tax levy and half of the 2022 estimated tax levy.

And a collection rate of 99.48% is then applied.

The per-pending tax rate equivalent of the FY22 estimated tax levy is $250,322.

The increase in public service tax as shown here is likely attributable to the Central Virginia Electric Co-op, Firefly, Broadband,

to build out in the county.

Personal property taxes are increasing due to increased NADA values of used vehicles and potentially an increase in taxes relating to large trucks and heavy equipment that are classified as personal property within the general fund budget.

Additionally, local sales and use taxes are up in part due to a suspected increase in intermittent sales due to the pandemic and an increase in overall purchases due to travel limitations and economic stimulus payments.

In terms of the other local revenue, recordation taxes have been increasing due to the favorable interest rate climate that has facilitated an increase in borrowing.

Meals and lodging taxes are anticipated to increase due to anticipated increases in lodging tax collections and meals tax revenue returning to a more global level.

These increases are offset by expected declines in permit fees, court fines and forfeitures, and interest on investments.

State revenue makes up about 10% of the total general fund budget in FY22.

The FY22 estimate reflects a decrease partially due to the completion of VDOT reimbursements for the Blue Ridge Tunnel grant and other state grants received in FY21 that will likely be received in FY22 but not yet included in the budget.

These funds will be appropriated as awarded or received throughout the fiscal year.

State reimbursements of shared local expenses for constitutional offices reflect the state's share of a 5% salary increase for those offices and an increase in the state's share of public assistance and welfare funding for Title IV-E, which is locally administered foster care programs.

Federal revenue makes up about 9.7% of the total general fund budget.

Generally, these

Federal sources include social services funding, Children's Services Act funding, payment in lieu of taxes relative to national forest land located in Nelson County.

The net comes from the U.S. Bureau of Land Management and other various federal grants.

The increase reflected here is due to an increase in federal support of Title IV-E locally administered foster care programs and COVID-19 federal American Rescue Act funding of $2.9 million expected to be received in FY22.

The U.S. Treasury guidance is forthcoming regarding eligible expenditures related to these funds, which may carry over into FY23.

Local, state, and federal revenues and non-revenue sources together with prior year ending balance make up all the projected revenues supporting the FY22 proposed expenditures.

FY22 non-revenue sources include $20,000 in anticipated insurance recoveries,

and a transfer into the general funds of $255,000 in reassessed and synthesized funds.

The 2022 general reassessment is in process and is expected to conclude by December 31st, 2021.

Consideration of resulting values and equalization of the real estate tax rate will occur thereafter and any change in tax rate will be effective for the 2022 tax year.

The year ending fund balance for FY22 includes carryover of anticipated FY21 revenues

that exceed FY21 expenditures in the amount of $1,210,782.

These funds are best used for one-time expenditures such as capital outlet items.

And all sources of revenue total, the total budget of $42,009,576.

As with the revenue side, our FY22 proposed expenditures equal

The same amount of $22,090,576.

Compared to the current year budget as amended through March of 2021, the proposed general fund budget reflects a decrease of $170,508, which is a 0.40% decrease.

Total FY22 expenditures equal revenues, and in looking at how revenue dollars are spent, this graph shows the major categories of expenditures as a percentage of total budget.

The largest category of expenditure shown is education at 41.9%, which equates to about $17.6 million, including debt of $1.8 million and the school resource officer reserve funding of $207,132.

Following the school division, departmental operations overall, including debt, will cost around $7 million, or about 16.7% of the budget.

This includes general government and judicial administration, public works, parks and recreation, and community development, including debt.

Public safety, including debt, is 15.5%, or $6.5 million, with health and welfare and agency and non-departmental being 10% and 9.9% respectively.

Non-Departmental includes the 2021 anticipated COVID-19 American Rescue Plan funding of $2.9 million in an expenditure line within that department.

Capital Outlay is expected to be $789,386, or 1.9% of the budget, and will be covered by the FY22 year new balance of $1.2 million.

The budget also includes refunds and unallocated contingency reserves of $1.6 million.

Additionally, the school resource officer reserve of $207,132 is maintained in FY22, shown here as part of the school division funding.

Some expenditure highlights for FY22 budget related to personnel are our 5% salary and benefit adjustment, 3.7% increase in health insurance premiums, some new positions are included, including the full-time buildings and grounds position,

full-time solid waste transfer station scale house operator position, part-time social media specialist for tourism and economic development, and a full-time library position, which was included in the library's budget request.

Also included are four full-time school resource officers, which are maintained, including the state SRO funded grant position.

expenditure highlights related to public safety and emergency services are shown.

The budget does not include funding for police vehicles and equipment or any new vehicles at this time.

Contingency funding may cover these costs as the budget is amended.

It does include the remaining 80% funding to support the purchase of one tanker from the Montebello Volunteer Fire Department.

Additionally, regional jail cost increases are due to higher utilization.

The jail uses a five-year average prisoner population to help speed out annual increases.

However, with annual utilization on the rise, average annual costs will also rise over time.

This budget also includes upgrades to the Emergency Communication System and the ECC itself, plus additional funding for local EMS council.

Other highlights to note, the budget also includes level funding of most agency contributions, with no new agency contributions included.

Also included are miscellaneous capital outlay items as noted and unallocated contingency reserves of $1.4 million, with $613,713 being recurring revenue and $812,856 being non-recurring revenue.

Non-recurring contingency funds are best used for one-time expenditures.

However, recurring contingency funds can be used for one-time expenditures without impacting future operations.

The next largest fund to be discussed tonight is the school fund at $27,487,335.

The FY21 school fund budget as amended through March 2021 and based upon an enrollment of 1,589 students compared to the FY22 advertised budget based on an enrollment of 1,507 students

reflects an overall increase of $224,522, or 0.82%.

This is the operations budget only, excludes capital debt and SRO funding, and does not include anticipated COVID-19 American Rescue Act funding.

In terms of school funding revenue, in addition to local operational funding of $15.8 million,

The school division also receives revenues from other sources such as state, federal, and other which is comprised of reimbursements, field trips, dual enrollment, telecommunications, rebates, etc.

The school division will also receive estimated K-12 funding from the COVID-19 American Rescue Act of $3.6 million which may or may not include $721,446 for learning loss.

We're just not sure if that's included in $3.6 million or if it's in addition to.

As noted previously, one of the largest components of the general fund budget is the local contribution to the schools, including then about 55% of local funds within the general fund budget are allocated to the school division, and it is 42% of the total general fund budget.

Local contributions to school operations and school nursing programs for FY22 is presently funded at $206,800 more than FY21, as was requested by the school division.

Four school resource officers are funded at the same level as in FY21 within the general fund budget.

Also in FY21, $500,350 was reserved for school capital with almost all of the funds being expended.

Additionally, the board authorized the transfer of FY20 school division year ending balance of $441,546 to the school capital fund for their use.

The county also funds $1.8 million in school related debt.

Given the total contribution, not including debt, approximately 88.8% or 63.9 cents out of every 72 cents in real estate tax rate supports the schools.

When you include the debt, this percentage increases to 99% or 71 cents out of every 72 cents in real estate tax rate collected.

Throughout the year, as shown, the board considers requests for additional funding for school-related needs, as shown here.

Local composite index is the state's formula for determining a locality's ability to pay.

The higher the index, the lower the amount of funds received from the state.

Nelson's LCI is high primarily due to the fact that total real property values unadjusted for the county's land use program are used in the calculation which oversees the county's potential real property tax revenue and therefore the county's ability to pay.

Nelson County schools are well funded.

Operational funding for schools including the nursing program is proposed at $15,801,622.

For student enrollment of 1507, this funding exceeds the required Virginia Department of Education's required local effort funding of $7.9 million by almost $7.8 million, which equates to 31.6 cents in real estate taxes.

Board of Supervisors provides local contributions to the school division.

However, the school board and administration decide how to budget and spend those funds.

This slide shows school funding expenditures by major category for instruction, administration, transportation, maintenance, food services, debt service, technology, and the fund transfer for a total of $27,487,335.

And then to summarize by fund, all of the funds that make up the county bus routes noted here, totaling about $74 million.

General Fund at $42 million, School Fund at $27 million, Textbook Fund at $531,000, Cafeteria Fund at $267,000, Capital Fund at $705,000, Piney River Water and Sewer Fund at $146,000, and the Debt Service Fund at $3.1 million, totaling $74,371,696.

Great.

Candy, you did a great job.

That was a wonderful presentation.

It was one of the more clear ones we've had.

It's been a good time to have you doing this now.

At this time, is there any particular question, I guess?

It's a small thing.

We were having our discussions and we noted the fact that the $179,000 increase in money for

But if you look at the budget expenditure detail in the non-departmental section, it's there.

It's listed individually there.

Great.

Thank you, Ganny.

Moving forward, let's go ahead into our public hearing.

So with that, I open the public hearing for FY21 to 22 county budget, all our funds.

We currently only have one person signed up, Dr. Eagle.

Good evening, good evening, Martha Eagle, Division Superintendent.

It has been a while since I've seen you guys up here.

I know you've missed me.

Good evening, good evening, Mr. Carter, board members, Ms. McGarry.

I appreciate the time and I just want to say thank you.

That's the main reflection in my comments this evening.

So as you can imagine, this past year has been extraordinary as a school division has faced many challenges.

I stood here last year during the public hearing and spoke of the worry we had for the many unknowns facing the new school year.

I asked for assurance from you as a board that you would partner with us as we planned to work through all of the forthcoming changes and continue to provide the best possible education for the restrictions and limitations would allow.

and I am very thankful for your continued support.

I am so very proud of our teachers, our administrators and our support staff who have all worked tirelessly through this past year in so many new and unique ways.

We have all experienced professional and personal challenges from the pandemic crisis, but as an educational team, we maintained our vision of providing our students with the best opportunities possible.

I noted last year that we would need your help to get through this crisis should the worst case scenario come to fruition.

with fewer students and lower state funding.

Although we did not experience but a slight drop in both enrollment and state funding over this past year, it was not an unbearable decrease as we continue to adjust and readjust our finances throughout the school year.

As in previous years, we remain fiscally responsible and look to effectively and efficiently manage our resources.

I stand here this evening with a grateful heart and to say thank you

On behalf of the school division, our school board, and our staff for providing the funding last year and for also partnering with us this year to re-envision our capital improvement planning process moving forward.

I believe we have made great strides to build a stronger bond between our boards and I look forward to continuing this.

I definitely want to say thank you for the SROs and that continued funding and of course for the nurses.

And so we thank you for the support for the proposed division operational budget for the FY 21-22 school year.

I appreciate your time.

Thank you, Dr. Eagle.

All right.

We have nobody else on the list.

Claire, would you like to say anything?

No?

Anybody else like to speak?

Hearing and seeing none, I close the public hearing.

So at this time, there is no action we are allowed to take by the state.

It is the approval or disapproval of this budget.

Those actions will be taking place at 7 p.m. next Tuesday, correct?

Yeah.

And is it 7 or 6.30?

Seven.

Well, that would be exactly seven days.

Two, is that two?

Okay, at two.

So that is when the discussion of the budget and adjustments take place.

With that being said, the only action that I'm aware of that we would need, is there any other business that may be presented at this time?

Hearing none, we need to continue this meeting, correct Steve?

So moved.

We have a motion to adjourn.

We have a second from Mr. Harvey.

Yes.

Yes.

Thank you all staff.

Great job.

Thank you.

Have a good trip.