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|Board Present:||Fitzgerald A. Barnes, Willie L. Gentry, Jr., Willie L. Harper, Allen B. Jennings, and Jack T. Wright|
|Board Absent:||Richard A. Havasy; and Eric F. Purcell|
|Others Present:||C. Lee Lintecum, County Administrator; Ernie McLeod, Deputy County Administrator; Kevin Linhares, Director of Facilities Management; Amanda Lloyd, Office Manager; and April Jacobs, Deputy Clerk|
CALL TO ORDER
On motion of Mr. Barnes, seconded by Mr. Jennings, which carried a vote of 5-0, the Board voted to reconvene the meeting.
Chairman Wright called the March 14, 2007, 2007 meeting of the Louisa County Board of Supervisors to order at 6:00 p.m. Mr. Jennings led the invocation, followed by the Pledge of Allegiance.
DISCUSSION OF THE NEW ELEMENTARY SCHOOL
Mr. Wright stated he would like the Board to discuss the new elementary school but he would like to delay any decisions until the regular meeting on Monday when all Board members are present.
Mr. Wright referenced a spreadsheet that Mr. McLeod provided for informational purposes. The spreadsheet included total payback figures for a $24.5 million loan. Mr. Wright said according to the spreadsheet, the total payback amount at 5.75% would be $39,174,479. Mr. Barnes questioned if the spreadsheet was for a five-cent tax increase. Mr. Wright commented this is a substantial amount of payback.
Mr. Barnes stated he has spoken with citizens within his district and they all agree the County needs to build a school. Mr. Barnes added he would like dialogue to continue between the two Boards. Mr. Barnes stated he doesnt want the kids to suffer because of the two Boards inability to come to a consensus. Mr. Barnes said he thinks a dialogue needs to be put together immediately. Mr. Barnes said both Boards need to mediate costs and set aside differences and move forward with this project.
Mr. Jennings said that this project needs to be continued but the primary issue is the cost factor. Mr. Jennings stated the price of the school could be reasonable because of evidence from other schools built in Virginia. Mr. Jennings said both Boards need to keep this project to a minimum cost. Mr. Jennings added if other schools can build for low costs, then Louisa should be able to build for just as cheap or cheaper.
Mr. Gentry said it is obvious that the County is in need for a school but he feels like a school can be built much cheaper than proposed by the School Board. Mr. Gentry said the School Board hasnt mentioned redesigning the school, but that is what needs to be done in order for the project to be cheaper. Mr. Gentry said the new school doesnt necessarily have to be 90,000 square foot and he thinks that the two Boards can play with numbers and get the school down to less than $19 million. Mr. Gentry stated mediation and meetings are great if both parties are listening. Mr. Gentry added he felt at the last meeting, the School Board wasnt listening to what the Board of Supervisors said and he isnt sure how much the School Board is willing to mediate. Mr. Gentry said if he was put back on the committee, he could discuss numbers with the School Board, but he thinks the Board of Supervisors needs to set an amount and let the School Board take it from there.
Mr. Harper stated he agrees a lot with what has been said and stated that any problem needs dialogue in order to be resolved; however, both sides have to enter that dialogue in good faith. Mr. Harper said he is content with the numbers presented by Mr. Linhares at the last meeting. Mr. Harper said he could care less about the design of the school and he thinks the Board of Supervisors needs to set the money level and the minimum accommodation and let the School Board deal with functionality of the school. Mr. Harper added dialogue is important, but only if both parties enter in good faith.
Mr. Wright said for communication, there needs to be a transmitter and a receiver. Mr. Wright said people can listen but that doesnt mean they have to agree. Mr. Wright said Harold (Hal) Schaffer, member of the School Board, asked if Mr. Linhares and a member of the Board of Supervisors could meet with the School Board. Mr. Wright questioned Mr. Linhares if they have met with the School Board yet. Mr. Linhares stated they met last week and during the meeting, he tried to get Mr. Schaffer to understand the construction management form. Mr. Linhares said the problem was Mr. Schaffer didnt fully understand the form for the construction management fees. Mr. Linhares added after explaining the fees, Mr. Schaffer had a better realization of what the form said. Mr. Linhares said he thinks there was misrepresentation by the construction management firm. Mr. Linhares said the firm should have more thoroughly explained the fees to the School Board so that they would have had a better understanding.
Mr. Wright said a contractor told him that they werent going to bid on this project because he looked at the plans and the footings were included with the site work. Mr. Linhares said the footings are not included in the site work; they are in the concrete number under construction costs. Mr. Linhares said the civil engineering drawings only show the site work; they dont show anything relating to the building pad or the footings. Mr. Linhares added all of the footing work is shown on the architectural drawings; the site drawings dont refer to footings.
Mr. Barnes said the County needs a school and cost is a concern, therefore, redesign is going to have to happen. Mr. Barnes said children are the concern and the County owes a new school to the students.
Mr. Gentry said he and Mr. Havasy attended the meeting with Mr. Schaffer as well. Mr. Gentry said Mr. Schaffer mentioned about getting another architect and another construction manager. Mr. Gentry said he thought that was very interesting how Mr. Schaffer brought that into the discussion because he hasnt heard the School Board talk about those alternative matters. Mr. Gentry said he was concerned about the fact that the architect and construction manager have already been paid over $900,000 and to get a new firm would be doubling expenses. Mr. Gentry said the same firms should look at redesigning the school. Mr. Wright said it is not the Board of Supervisors priority or responsibility to make the decisions for the School Board.
Mr. Wright stated the actual square footage in Mr. Linhares presentation should have actually reflected 90,907 square foot. Mr. Wright said the Board of Supervisors should only go as far as setting a price and the capacity for the school based on state standards. Mr. Gentry commented that is what the Board did a year ago. Mr. Wright said he thinks the School Board has been getting some insight based on the information and facts that Mr. Linhares has provided.
Mr. Wright questioned what Board members were on the Construction Committee with the school. Mr. Jennings and Mr. Barnes stated they were on the Construction Committee, but they have never met for that reason. Mr. Jennings and Mr. Barnes said they would be glad to have a meeting for the new elementary school. Mr. Wright said Mr. Linhares could work with them as a consultant.
Mr. Barnes said he talked with a member of the School Board who is going to present to the School Board that both Boards need to work together to make this construction happen. Mr. Wright said the Boards need to move quickly to get this project completed because time is money.
Mr. Wright appointed Mr. Jennings and Mr. Barnes to the Construction Committee on the basis that they will use Mr. Gentry and Mr. Harper for resources as needed and use Mr. Linhares as a consultant. Mr. Wright said the Committee can come back to the Board with a report after they meet with the School Board.
Mr. Gentry stated he would like Mr. McLeod to give the Board a spreadsheet for the total payback figures for a $17 million school as well. Mr. McLeod stated total payback figures for $17 million would be $27,182,292. Mr. Barnes questioned if Mr. McLeod could give the Board a spreadsheet showing the total payback figures from $17 to $24 million as a guide. Mr. McLeod said he would send an email to the Board with that information.
BUDGET OVERVIEW Lee Lintecum
Mr. Lintecum said what the Board just discussed is a good lead into this years budget. Mr. Lintecum said the five-year capital is a “monster.” Mr. Lintecum stated the County was in a very fortunate position to “pay as you go” for years.
Mr. Lintecum said one of the positive things on the budget was that the County had a lot of growth in real estate. Mr. Lintecum added assessment is up about eight percent and because of the growth, real estate has expanded to help with a lot of requests.
Mr. Lintecum said the budget this year is more difficult than last year because the County is playing catch up on things like sewer and water. Mr. Lintecum said the budget is built on setting the real estate tax rate to sixty-three cents per one hundred.
Mr. Lintecum said the biggest component in Operations Budget is the Schools. Mr. Lintecum added the Schools are asking for $1.7 million more in local funding this year. Mr. Lintecum said one issue that has to be looked at for the Capital Improvement Plan is debt retirement and proffers. Mr. Lintecum said debt retirement is listed in the Operation Budget and not in the Capital Improvement Plan.
Mr. Gentry said the proffer the County has is based on the Schools Capital Improvement Plan. Mr. Gentry said once the County uses the money, it is lost because it transfers to operational and questioned how to manipulate the proffer to make the schools understand it is part of the formula at some point. Mr. Lintecum
stated the money from proffers would be used up first on Capital Improvements and then funds would be borrowed to complete the capital need.
Mr. Wright said it is going to take the County a long time to collect money because the way the proffers are set up is based on when the building permits are issued. Mr. Wright said the way it will end up is the owners are going to have to pay the proffers instead of the developers.
Mr. Gentry questioned how Stafford County, who has a $40,000 proffer, does that without the need of the schools. Mr. Lintecum said the schools are there initially and then when it goes to debt retirement, it comes out. Mr. Gentry questioned if you dont continue to put the same amount of money into the Capital Improvement Plan for the School before the money is actually borrowed, then the proffer has to go down. Mr. Lintecum said borrowing money justifies the Capital Improvement Plan. Mr. Lintecum said it is the debt retirement that doesnt come in and help. Mr. Lintecum noted a lot of pennies go into debt retirement. Mr. Barnes said a lot of debt is for the James River Project and two sewer plants that are needed. Mr. Wright added that they are investments, not just cash spent out. Mr. Barnes said the budget doesnt show what the County is getting back in return from economic development. Mr. Lintecum said the future growth and growth in economic development will help offset some of these costs to benefit the budget, as well as the citizens.
Mr. McLeod stated he went back to the pre-budget hearing to compare where the budget was thought to be and where it actually is. Mr. McLeod stated the Board had talked about real estate going up $1.5 million and is it up over $2 million. Mr. McLeod said new construction was over $312 million and this was brought into the budget because of pro-ration. Mr. McLeod stated public service was expected to go down $300,000 and it actually went down $516,000. Mr. McLeod added personal property, sales tax, cost of decals, planning and zoning fees, water connections, and interest have all increased. Mr. McLeod said for Capital Projects, the total is $16.5 million, $10 million for the School and $6.5 for the County. Mr. McLeod stated the County is talking about going from the “pay as you go” method to matching the capital asset to the appropriate length of debt service, but the future operational budget is affected when funds are borrowed.
Discussion - Revenue - Ernie McLeod
Mr. McLeod stated overall, revenue is $77,786,286. Mr. McLeod added this represents a 6.55 percent increase in funds over FY 07. Mr. McLeod further added the Louisa County Public Schools revenue of $23,461,401 is included in the Countys total revenue and those funds are from State, Federal, and other local funds.
Mr. McLeod said the general property tax revenue had an increase of $2,159,000, which is a 5.53% increase. Mr. McLeod stated this increase is mostly attributable to new construction. Mr. McLeod said as new construction was prorated last year for the first time, it was more than 312 million.
Mr. McLeod stated other local taxes had an increase of $656,000, a 23.97 percent increase. Mr. McLeod added this increase in revenue is attributable to an increased collection of sales taxes and personal property taxes.
Mr. McLeod said Governor Gilmores no car tax initiative (PPTRA) changed into a new program last year; it is now a fixed amount of funds allocated to each county based on the amount of personal property taxes collected in FY 05. Mr. McLeod added this will impact the County over a period of time, as the amount collected in FY 06 was larger than FY 05, but the amount of funding will be level going forward. Mr. McLeod said the County is required to establish the percentage of tax relief for personal property during each budget process. Mr. McLeod said the Commissioner of Revenue has reviewed the current values on the qualified properties and the fixed amount established by the State Auditors to create the percentage of tax relief for tax year 2007, which is FY 08. Mr. McLeod added that the calculation created a tax relief of 49.78%. Mr. McLeod stated currently, the Board of Supervisors has approved that personal property valued under $1,000 will be tax-exempt. Mr. McLeod said since the Treasurer says some individuals with tax-exempt personal property believe they are not required to purchase the vehicles decals, the Commissioner has calculated what the rate would be without the tax-exemption and the overall percentage for all citizens would increase to 52.78%. Mr. McLeod noted the Board may want to review this exemption.
Mr. McLeod said the new Communication tax was implemented January 2007 and it is expected to be revenue neutral, but counties with higher growth rates will not receive their fair share of this tax. Mr. McLeod said at this point, it is best to use last years budgeted amount, with last years general ledger numbers, until more information is available.
Mr. McLeod stated the Permit, Privilege, and Regulatory Fees have increased $281,560, which is an increase of 25.13 percent. Mr. McLeod said this increase is attributable to the Community Development Department modifying their fees to match the continued rise in services required to assist citizens with their questions and processing permits. Mr. McLeod added if these fees are approved, these new fees will become effective July 1, 2007. Mr. McLeod added another increase in revenue is the water and sewer connection fees from the water authority.
Mr. McLeod stated the revenue from the use of money increased $330,500, a 45.15 percent increase. Mr. McLeod said as interest rates have risen, so has the amount interest gained in the General Fund. Mr. McLeod added after going through the Banking RFP process, the Treasurer has selected the Bank of America as the Countys new bank and it is anticipated that this change in banks will reduce fees and further increase interest collected.
Mr. McLeod stated the Charge for Services increased $154,933, which is an increase of 6.21 percent. Mr. McLeod added the increase is attributed to the Schools sale of lunches.
Mr. McLeod said an initiative from last year that is still in progress is the Revenue Recovery task team. Mr. McLeod added that this year started by having a presentation from a leading company in the industry and the team is currently creating a round table discussion with other counties to discuss the pros and cons.
Mr. Gentry questioned how much revenue the County would receive if the Revenue Recovery take team is started. Mr. McLeod said about $800,000 on a conservative guess. Mr. Gentry stated if put into prospective, there is almost enough money to cover the debt on the school each year.
Mr. McLeod stated the landfill revenue budget has not increased and the projected revenue generated from the tipping fees is $465,000. Mr. McLeod said since more than two-thirds of the revenue from the landfill enterprise fund is coming from the general fund, it has been requested that the landfill fees be reviewed. Mr. McLeod added it was requested that any update to the fees be submitted for the Boards review at the March 28th meeting. Mr. McLeod further added it is known that some practices, such as for RVs and tires, need to be reviewed.
Discussion - Operations - Ernie McLeod
Mr. McLeod said the recommended operational budget is $74,993,953, which is a 8.79 percent increase in funds over FY 07. Mr. McLeod added the budget includes funding for the School system, the Department of Social Services, the Constitutional Officers and the County.
Mr. McLeod stated the General Government Administration increased $107,898, which is a 3.73 percent increase, and this increase is mostly attributable to increases for Commissioner of Revenue, the Treasurer and Elections. Mr. McLeod added the Commissioner has two employees that have received certification as Master Deputies and the Treasurer has one employee that will receive their certification as Master Deputy and requires additional part time help.
Mr. Harper questioned if the State Compensation Board pays for the increase in salaries for the employees certifications for Master Deputies. Mr. McLeod stated he thinks they pay for part of it but the County pays the other part. Mr. Harper stated he doesnt have a problem with it, as long as the State pays their part.
Mr. McLeod noted Elections increases are the result of elections, programming machines, and printing the ballots.
Mr. Wright said there is a bill in process and if this bill is approved, on July 1, 2007, the County will not be able to buy any more of the machines currently being used. Mr. Barnes questioned if the Federal Government will fund money to replace those machines. Mr. Wright said the County will be ok for a few more years because extra machines were bought, but if the bill is approved, on July 1, 2007, these machines will no longer be available. Mr. Lintecum said the change has something to do with the printout of the machine. Mr. Gentry said he thought the Board had talked about approving these machines and he thought the machines had what is necessary for the paper trail. Mr. Barnes said to closeout, a button is pressed a button and paper trail is received. Mr. Wright said if the paper trail shows how someone voted, it is a violation of confidentiality and privacy. Mr. Gentry said we have a paper trail but it may not be the correct one. Mr. Lintecum said we have designated them but we may have to go back and change them.
Mr. McLeod said the Judicial Administration increased $198,060, which is a 13.23 percent increase. Mr. McLeod added this increase is a result of truing up employees between Court Services and the Sheriffs Department. Mr. McLeod said the total number of fulltime employees is correct, but not in the correct budget. Mr. McLeod stated the Clerk is requesting one new full-time employee and one part-time employee to help with their very busy schedule. Mr. McLeod noted the Compensation Boards review on the workload shows a deficit of two and a half positions, but they have not approved any new positions even through it reflects the need, and therefore, this would be a county funded position.
Mr. McLeod stated Public Safety increased $294,366, which is a 4.55 percent increase and this increase is attributed to funds included for the Regional Jail. Mr. McLeod said it was thought to be prudent to start collecting contingency funds for the Regional Jail and currently, the Regional Jail does not cost the County.
Mr. McLeod stated the Sheriffs department is requesting two new deputies to help with the growth in the County. Mr. McLeod added, instead of requesting supplements for all employees, the Sheriff is requesting targeted supplements. Mr. McLeod said these supplements are for additional salaries for the leadership positions because currently, the separation in salary is very small between the grade levels. Mr. McLeod noted the Sheriff is also requesting funds to allocate for career development.
Mr. Gentry questioned how would two additional deputies cover the expected growth of the County. Mr. McLeod said the verbiage is deputies but one position is for a detective and the other is to cover a position of a deputy that was sent to Iraq. Mr. Gentry clarified that they are not field deputies. Mr. Gentry stated when growth is talked about, he thinks more field deputies are needed. Mr. Wright added that the budget needs more specific verbiage.
Mr. Barnes said this Board has done an excellent job paying the Countys deputies but he would still like to receive copies of adjoining localities salary reports to make sure Louisa is on target because if not, a couple years from now, the County will be playing catch up. Mr. Barnes noted it helps having the comparison scales from other counties when salaries are looked at.
Mr. Harper stated he thought that supplements were gotten rid of when the Board went through salary adjusting. Mr. McLeod said there is no supplement in the budget, it is additional funding. Mr. Harper said the Board just got rid of supplements and they are now built into salaries. Mr. McLeod stated the additional funding requested is not as much as the supplements were; it is funding to put a differential between positions.
Mr. Harper questioned how does the Board know that the deputies are where the County needs them. Mr. Harper stated he knows the Sheriffs Department is in the certification program and questioned what does the certification do for the citizens in Louisa County. Mr. Harper said the Department of Criminal Justice came in and did a survey on the Sheriffs Department and questioned if they are receptive to doing that again to see if personnel are properly allocated. Mr. Harper questioned if the County gets reimbursed for classes for career development. Mr. McLeod stated salaries would be bumped up for a degree, but also, if an employee was on the Special Response Team, salaries would go up unless the employee was no longer on that team, they wouldnt get the extra monies anymore. Mr. Barnes added recruitment should be included as well.
Mr. Wright questioned what positions received supplements in the past. Mr. McLeod stated at first everyone except the Major and the Sheriff got it and then somewhere within the three years, the Major started receiving supplements and the Sheriff didnt. Mr. Harper stated that came up several times and he thought it was clear that the Board would not give the Major supplements. Mr. McLeod said the Board voted to give supplements to the Major. Mr. Harper stated he would like to see that motion. Mr. Barnes clarified that the Board did vote on that.
Mr. McLeod said the Facilities Management budgets increased $418,953, which is an increase of 11.67 percent and this increase is attributed to the costs to maintain the Animal Pound, as no funding was allocated in FY 07. Mr. McLeod added the operational increases range from the cost of having to rent extra recycling boxes at the refuse sites, to increased electrical and heating costs, to building enhancements. Mr. McLeod said the Landfill Enterprise fund has increased $87,732, which is a 6.21 percent increase. Mr. McLeod added the cost of the Countys contract to operate the landfill is anticipated to increase and other increasing expenses at the Landfill are ground water monitoring and professional services. Mr. McLeod noted additional labor in the litter budget is for two part-time employees to help clean the roads of litter.
Mr. Wright suggested the Board take the $20,000 that was paid to the part-time Litter Control Officer and use that money to hire employees to actually pick up trash. Mr. Wright added the County has a lot of conversation and programs but no litter is getting picked up because the County hasnt been able to use help from the jails. Mr. Gentry questioned if it was ever decided if help could be used because of safety reasons. Mr. Gentry added the number of people getting involved with community service from the court systems has increased. Mr. Wright stated people that are involved in community service only want to pick up trash a mile or two from their residence. Mr. Barnes stated other counties are having jails pick up trash so there has to be a way to do it. Mr. Lintecum stated the County has requested it but it has not been approved. Mr. Harper stated the County doesnt have the “trustees” to do this, whereas before, the guards were paid to supervise. Mr. Harper said when offenders do this service, they have to get time off of their sentence and judges wanted them to pull full time.
Mr. Gentry said he attended the Volunteer of Louisa meeting and they talked about employees doing community service. Mr. Wright said the Board needs to come up with a suggested program to make this service work.
Mr. McLeod said the Health and Welfare increased $379,561, which is a 7.10 percent increase. Mr. McLeod stated the funding required for At Risk kids is rising and the increase in funding for JAUNT is based on additional demand from the intra-county and midday services, along with rising costs of labor and fuel. Mr. McLeod added the Health and Welfare section of the budget funds the Housing Trust Fund and it is budgeted at one-fourth of a percent of one penny of real estate taxes, which is $147,500.
Mr. McLeod stated the Department of Social Services has increased $214,564, which is an increase of 7.65 percent and the local dollars of the budget has increased $103,549, which is a 15.64 percent increase.
Mr. McLeod said the Parks, Recreation, and Cultural increased $207,473. Mr. McLeod added the funding for the Louisa Arts Center and the Mineral DMV has been move into this budget because the cost maybe capital, but its not an asset of the county. Mr. McLeod noted the request from the Historical Society is restoration of the Sergeant Pettit house is included.
Mr. McLeod said the Community Development Department increased $178,997, an 11.08 percent increase. Mr. McLeod added the Department has requested to increase the fees paid for building inspections and planning & zoning and these fees would offset the three new positions in the departments budget request. Mr. McLeod said the department is requesting an additional Planner, Code Enforcement Officer, and an Assistant Building Official.
Mr. McLeod said the non-department budget is a collection of items that could be moved to other departments and items within this budget include salary increases for county employees, workers compensation, unemployment compensation, continuing education and funds for a contingency.
Mr. McLeod stated Debt Services increased $1,133,260, which is a 60.22 percent increase. Mr. McLeod said the County Administrators recommended budget anticipates borrowing $12 million in FY 08 to fund an Elementary school, the regional water and sewage plate and the Zions water and sewage plant. Mr. McLeod added it is projected the County will have to continue to borrow funds for capital projects. Mr. McLeod further added the current five year capital plan has debt services increasing until FY 14 and at that point, it will start to decline.
Mr. McLeod said as a recap of new positions, it is recommended to add six new positions, two of which will be part of the emphasis in Public Safety, three new positions are within the Community Development Department and the last position is with the Clerks office.
Discussion - Capital Improvement Plan - Ernie McLeod
Mr. McLeod stated the AS400 is the computer that runs the Bright Software that runs the systems for the Commissioner, the Treasurer, and the Finance departments. Mr. McLeod noted that this system is seven years old and it is in need of replacement.
Mr. McLeod said the Capital Improvement Plan contains funding for eight replacement vehicles for the Sheriff along with two additional vehicles for the new deputies. Mr. McLeod said the Sheriff is requesting the PSAP, the 911 telephone switch, be replaced. Mr. McLeod stated the County has received a grant for $150,000 from VITA to replace the switch.
Mr. McLeod said for Emergency Services, funds are recommended for the building and equipment needs of the volunteers.
Mr. McLeod said for Facilities, funds are recommended for additional parking at the Administration building and the Intergenerational Center/Pool. Mr. McLeod added, also included are funds to modify the Bunting home for a Foster Care Facility, an additional refuse site, emergency power, and design of a new animal shelter.
Mr. McLeod said for the Schools, funds are recommended for the security system program, to start the electrical upgrade at two of the elementary schools, six modular classrooms, technology improvements, refurbishment of the kitchens, and eight new busses for the School System.
Mr. McLeod stated for Parks and Recreation, funds are recommended for the skate park and park development.
Mr. McLeod noted the County has several water/sewage projects underway and funds are included for the Louisa Regional Wastewater Treatment Plant, Zions Crossroad Wastewater Treatment plant, and the James River Water Project with Fluvanna.
Mr. McLeod stated that funds are included for the second year of well upgrades for the Water Authority and options for property to create an industrial park.
Discussion - Budget Recommendations - Ernie McLeod
Mr. McLeod stated the assessment, pro-ration of real estate, and new contraction has increased the general property 5.53 percent and the assessment of real estate increased 8.5 percent. Mr. McLeod stated the lowered rate necessary to offset the increased assessment is two pennies, therefore, the recommendation is to lower the rate one cent.
Discussion - School Board Budget - Ernie McLeod
Mr. McLeod said the School Board is requesting a total of $2.9 million, which is a 6.94 percent increase and they are requesting local funds of an 8.52 percent increase. Mr. McLeod added the State increase is $1.2 million and the state increase is for the increase of the number of students. Mr. McLeod stated the proposed School budget approves average salary increases as follows: teachers 3.76 percent classified six percent and administrators 3.25 percent. Mr. McLeod added it requests twelve new employees, one for compliance, ten for growth and one for support.
Mr. McLeod stated it is recommended to reduce the local contribution by $109,398 for the principal at the new elementary school and the local contribution would be $23,310,751, which is an increase of $1,670,257.
Mr. Gentry stated he hasnt had a chance to study the School budget at this point but he did hear the Superintendent report to the School Board. Mr. Gentry said in the Louisa County School Board Efficiency Report that was completed last fiscal year, the numbers in the report said there was a total savings of $738,000 and the savings for recommended increases of positions was $209,000. Mr. Gentry added that amount of savings equals $526,000. Mr. Gentry said according to this report next year there is supposed to be a total savings of $772,769. Mr. Gentry stated he hasnt heard those numbers used by the School system saying that is what they are doing. Mr. Gentry stated his concern is when the efficiency report is read, he would think it would be a guideline for the School Board to use. Mr. Gentry said looking at the budget, administration cost in Louisas division is 34.7 percent higher than the division average. Mr. Gentry added there needs to decrease in administration costs. Mr. McLeod said the only discussion he has been included in with the School Board is for the poor quality of the efficiency report. Mr. Gentry said his concern is that he hasnt heard any discussion about these savings and Louisa is 34.7 percent higher than the other divisions. Mr. Gentry said he thinks the School Board should discuss this.
Mr. Lintecum said normally on the budget schedule there is a joint meeting for the School Board. Mr. Lintecum added the Boards usually have a meeting as part of the budget process. Mr. Wright stated he thinks the Board should ask the School Board to specifically have the information about the status of the efficiency report available to the Board of Supervisors. Mr. Lintecum said he would consult with the Superintendent for specific answers for the Board.
Discussion - Five Year Forecast - Ernie McLeod
Mr. McLeod stated the large Capital Improvement Plan will require the County to pursue other methods of financing large projects, such as new or upgrading water systems. Mr. McLeod said the pennies of the real estate to pay for these projects are staggering. Mr. McLeod noted for FY 08, it will cost 2.27 additional pennies to pay for half of the new elementary school and the initial start of the wastewater projects. Mr. McLeod said the high point for debt services is FY 14, where 24.24 additional pennies would be required.
Mr. McLeod said the School Superintendent is requesting a new elementary and high school within the next five years and a new middle school is expected in the next ten years. Mr. McLeod said if it were a redistribution of students, then no new state funding would be expected. Mr. McLeod said in the Capital Improvement Plan request, it has been identified for seventeen new employees for the new elementary school and thirty-three new employees for the high school. Mr. McLeod stated the additional funds would be $1.35 million for the elementary school and $3.735 million for the high school and these dollars do not include funds for the cafeteria, transportation, building maintenance or any debt services of the new schools. Mr. McLeod noted these funds are in todays dollars and the funds will be higher once the schools are built.
Mr. McLeod said for the teachers, this is the second of three years to make the salaries more competitive. Mr. McLeod added in their budget submittal, the average teacher pay increase is 3.76 percent increase.
Mr. McLeod stated the multi-year forecast attempts to show all of the additional revenue and expenditures of the County to show where the County is headed in the future. Mr. McLeod said the County goes from $32.3 million in the fund balance to $8.3 million at the end of FY 12.
Mr. McLeod said GASB 45s (other post employment benefits) impact will be one penny in the FY 09 budget and at this point, it is unknown which financial mechanism the County will use to fund the un-funded liability. Mr. McLeod said a bill was defeated this year to allow VRS be the investor for the Countys trust funds.
Mr. Gentry questioned if the anticipated revenue for long-term projects such as the Zion Crossroads area was included in the five year forecast. Mr. McLeod said until a development is in the area, it is hard to project, but there is an increase for some based on what is seen so far. Mr. McLeod said a five-year look ahead is something good to do. Mr. Gentry said the major revenue isnt included in the forecast. Mr. McLeod said he doesnt think the Board does enough on the five-year plan and he thinks more needs to be learned and methods need to be refined. Mr. Barnes said this is a good forecast and the Board needs to look further down the road. Mr. Barnes said having a high school in the forecast is pre-mature because there is a vocational center in the forecast and if that happens, then the vocational classrooms could be renovated for extra space in the High School. Mr. Barnes there is some decisions that havent been made because it is cheaper to build vocational center than to build a new high school. Mr. Gentry said the Superintendent was looking at a seven-year plan for a new high school. Mr. Barnes commented that the Boards vision with Zion Crossroads will come into play with taxes when the revenue starts coming in for large projects. Mr. Wright said he would much rather see the forecast be conservative rather than over estimated. Mr. McLeod said the five-year plan is not good news for operational cost because the increase is twenty-four pennies by 2014. Mr. McLeod added there is a steady increase.
Discussion/Adoption Revised Budget Schedule
Mr. McLeod said there needs to be a joint meeting with the School Board and there are meetings scheduled for appeals from the agencies. Mr. Barnes questioned if Mr. McLeod could bring updated figures on tax relief to the Board at the next meeting. Mr. Lintecum said he would let the Board know of the revisions of the budget schedule based on when the School Board could meet.
On motion of Mr. Barnes, seconded by Mr. Gentry, which carried by a vote of 5-0, the Board voted to recess the March 14, 2007 meeting at 7:35 p.m. until March 19, 2007 at 4:00 p.m.
BY ORDER OF
JACKSON T. WRIGHT, CHAIRMAN
LOUISA COUNTY BOARD OF SUPERVISORS
LOUISA COUNTY, LOUISA, VIRGINIA