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HomeMy WebLinkAbout10/31/2002 - Special October 31,2002 699 Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 October 31,2002 The Board of Supervisors of Roanoke County, Virginia met this day at the Salem Civic Center, Salem, Virginia, this being an adjourned meeting from October 22, 2002 for the purpose of attending the Greater Roanoke Valley Leadership Summit meeting with area legislators. IN RE: CALL TO ORDER Chairman Church called the meeting to order at 12.:45 p.m. The ro)1 call was taken. MEMBERS PRESENT: Chairman Joseph B. "Butch" Church, Vice Chairman Joseph P. McNamara, Supervisors Richard C. Flora and H. Odell "Fuzzy" Minnix MEMBERS ABSENT: STAFF PRESENT: Supervisor Harry C. Nickens Elmer C. Hodge, County Administrator; Diane S. Childers, Clerk to the Board LEGISLATORS PRESENT: Senator Malfourd W. "Bo" Trumbo, Senator John S. Edwards, Delegate A. Victor "Vie" Thomas, Clifton A. "Chip" Woodrum, Delegate H. Morgan Griffith OTHERS PRESENT: Elected officials and staff from the City of Roanoke, City of Salem, Town of Vinton, County of Bedford, City of Covington, County of Botetourt: and representatives from the Roanoke Valley Allegheny 700 October 31,2002 Regional Commission. INRE: WELCOME AND INTRODUCTIONS Mayor Tarpley, City of Salem, welcomed the participants and introductions were made. Wayne Strickland, Executive Director of the Roanoke Valley Allegheny Regional Commission, reported on the history of the leadership summit meetings. He indicated that the key purposes of these meetings are to: (1) Allow local officials the opportunity to get to know one another and build a sense of trust between localities. (2) Gain a greater appreciation of the issues facing other localities. (3) Guide leaders in focusing on a "regional" economic strategy. He indicated that the legislative issues being addressed today were developed by the local officials. INRE: DISCUSSION OF AGENDA ITEMS . Taxina and Fundina: Sonny Tarpley, Mayor, City of Salem, stated that counties should possess the same authority as cities to levy taxes on tobacco products, lodging, meals and admissions. The Tax Commission recommended the elimination of this distinction in taxing authority. Wayne Angell, Chairman, Franklin County Board of Supervisors, stated that the General Assembly should not limit or restrict existing local revenue sources, and asked that this be taken into consideration during the October 31,2002 701 evaluation of the tax structure which is currently underway. Joseph B. "Butch" Church, Chairman, Roanoke County Board of Supervisors, reported that the General Assembly should require state agencies, such as the Virginia Department of Housing and Community Development, to use specific income data from towns when assessing grants-in-aid programs. Currently, data for counties are used when towns apply for grants and often the economic conditions in a town differ significantly from the economic conditions of the county in which they are located. This places the towns at a disadvantage when applying for competitive state grants. Mr. Church indicated that he was presenting this item on behalf of the Town of Vinton, and illustrated the discrepancy between the Town of Vinton's demographics and those of Roanoke County. Mr. Church indicated that he believes this concept has merit, and the County would like to assist the Town of Vinton in any way possible that would not adversely affect Roanoke County. He indicated that Paul Mahoney, County Attorney, would be willing to work with area legislators in this regard. . Education: Linda Wyatt, Roanoke City Council Member, reported that legislators who publicly support the importance of quality education, define what that quality education must look like, and require that local school boards carry out those mandates should be willing to fully fund these requirements. She 702 October 31,2002 emphasized that funding for public education is a State responsibility. Ms. Wyatt reported that the standards of quality have been underfunded by $1.06 billion in this biennium. While the State of Virginia ranks 13th in education, they are 49th in state aid per pupil. She stated that legislators need to raise taxes to adequately fund public education in Virginia. . Transportation: Steve Clinton, Chairman, Botetourt County Board of Supervisors, reported on the need for the Virginia Department of Transportation (VDOT) to find a funding mechanism to expedite the widening and improvements to Interstate 81. He stated that 1,000 individuals are killed on Virginia's highways each year, and that traffic crashes are the leading cause of death for Americans age 3-34. He indicated that 1-81 is currently supporting three times the percentage of truck traffic that it was designed to handle. He reported that each $1 billion spent on road construction results in $2.05 billion in economic activity. He emphasized that public demand exists for this project, but the decision to go forward and supply the funding is lacking. He urged the General Assembly to require VDOT to find a funding mechanism to handle these improvements. Bill Bespitch, Roanoke City Council Member, reported that the General Assembly should fund implementation of passenger rail service in the Roanoke to Bristol corridor. Rail service will provide a good multi-modal addition October 31,2002 703 to the highways and airports currently serving the region. He stated that he has attended numerous workshops pertaining to transportation, and indicated that one topic that has been consistently emphasized is the need to consider all modes of transportation, not just highway construction. He stated that it is time to evaluate the economic effectiveness of simply building additional highways and strive to achieve a better balance, particularly in the Roanoke area which celebrates 150 years of rail service tomorrow. Joe McNamara, Roanoke County Board of Supervisors, stated that the VDOT six-year plan adopted in June 2002 encompasses $7.3 billion which is a 28% reduction from the $10.1 billion in the prior year. He stated that the Salem district is challenged to begin with due to the length of Routes 220 and 460 bisecting the area. Specifically, he voiced concerns regarding the 33% funding reduction to the Salem District, from which $36 million over the next six years must be allocated for the Smart Road. He stated that the Smart Road is a tremendous economic development asset for the entire Commonwealth and challenged the fairness of the Salem District bearing the financial responsibility to develop it. The Salem District has been reduced by 33% and over one-third of this amount is tied up in funding for the Smart Road, thus making the actual reduction significantly greater than 33%. Stated another way, Mr. McNamara reported that of the percentage 704 October 31,2002 of each district's program remaining for fiscal year 2002-2007 from last year, Salem has 55.89% dollar value of their projects remaining. He indicated that reductions to other districts ranged from 5.73% for Northern Virginia to the Salem District whose total reduction is 44.11 %. These inequalities can be solved by funding the Smart Road first and then considering reductions to the various districts in the Commonwealth. . Local Authority: Temple Kessinger, Mayor of the City of Covington, reported that the General Assembly should not pass legislation that takes away local government authority over land use issues. If there is legislation to be considered in the 2003 session that will allow "by right" all residential zoning districts to permit manufactured homes, it was requested that the legislature leave zoning issues under the authority of the local governments. IN RE: CLOSING COMMENTS Don Davis, Mayor of the Town of Vinton, stated that there is no need in trying to place blame for the current budget problems. He indicated that it was a series of events which led to the current shortfall, and legislators must now work together to solve the problems. When state funding cuts were implemented, localities were faced with two choices: cut services or raise taxes. In many cases, localities have had to do both. The key areas which the localities October 31,2002 705 represented at the meeting today feel are important are: (1) Education - in the year 2000, the State of Virginia was ranked 32nd in education but 1st in prisons. (2) Public Safety - 599 funding reductions affect the amount of police protection that can be offered to citizens. (3) Tourism - localities need new businesses to generate tax revenues that can be used in providing essential services and offset the cost of state funding reductions. Mr. Davis stated that budgets at the local level do not contain excesses, and localities cannot continue to provide essential services to citizens if the State continues to implement funding reductions. The localities will call upon the legislators to consider implementing tax increases if that is what is needed to offset the current budget shortfall. The State of Virginia currently ranks 15th in per capita income, in the 40's in tax effort, and yet it has a bare bones budget. He emphasized that tough decisions need to be made, and local representatives are available to provide assistance in helping the legislators meet the citizens' needs. Possible recommendations for offsetting the shortfall included raising taxes, reducing the car tax relief, or relaxing the Dillon rule. INRE: LEGISLATORS COMMENTS . Senator Malfourd W. "Bo" Trumbo: Senator Trumbo indicated that state representatives should be able to come together in the same manner as the local representatives have to 706 October 31,2002 address these issues in a global sense. He then addressed the following issues that were raised: (1) Financial: The Governor has made $850 million in budget reductions, and it is anticipated that the budget shortfall over the biennium will increase to approximately $1.6 billion. The current reductions only cover approximately half of the anticipated shortfall. Additional factors which were not included are SOQ funding for student increases in the K-12 population over the next several years, as well as increased Medicaid costs, which will result in an additional $500 million expenditure. This brings the potential shortfall to $2 billion over the biennium. Allocations to individual localities totals 50% of the general fund budget, so there is no way that reductions in spending alone will be sufficient to account for the existing budget shortfall. He indicated there will be difficulty in prioritizing needs, and legislators are depending on their constituents to inform them of their priorities. He indicated that in his opinion revenue enhancements would be needed to meet the budget shortfall, as well as continued funding reductions. (2) Taxina and Fundina: The differentiation between counties and cities has passed and counties are now providing the same type of infrastructure needs previously provided by cities. He feels that there should not be a difference in taxing authority, but limitations may be imposed (Le., implementation of uniform, state-wide limitations). He also indicated that the General Assembly should not limit or restrict existing local October 31,2002 707 revenue sources. With regard to evaluating the existing tax structure within Virginia, he indicated that this is a massive undertaking that will take time and needs a state-wide approach. He also stated that he was not aware of the problems for towns with regard to applying for grants, and he supports these reforms in the guidelines. (3) Transportation: He indicated that 1-81 is in limbo at the present time, but he agrees that it is an issue that must be addressed. He indicated that support for passenger rail service would involve significant costs and planning efforts. With regard to Smart Road funding, he agrees that the Salem District should not bear the cost of this project. He stated that perhaps revenues generated from the Smart Road technology should be distributed back to the Salem District. (4) Land Use Issues: He indicated concerns about defining "smart growth", and stated that in his view it is nothing more than a state-wide land use pattern. . Senator John S. Edwards: Senator Edwards emphasized that the budget situation is getting worse and most of the issues presented today require additional money. He stated that to resolve the problems facing us, we will need to continue to make reductions or enhance revenues. Citizens need to speak out to make legislators aware of their priorities. He also encouraged support for the bond referenda to support higher education and parks. 708 October 31,2002 Deleaate A. Victor "Vic" Thomas: Delegate Thomas indicated that the standards of quality shortfall has continued to grow. He encouraged the media to get the word out to citizens on this issue so they can notify legislators of their opinions. He stated that it is critical to pass the bond referendum for education and parks. He also indicated that zoning issues should be a local government issue. . Deleaate Clifton A. "Chip" Woodrum: Delegate Woodrum indicated that the structure of government services is not being supported by revenues and that the car tax relief is an unequal appropriation. He supports increasing taxes on tobacco products, but stated that placing taxes on "sin" products will not be sufficient to offset the current budget shortfall. . DeJeaate H. Moraan Griffith: Delegate Griffith reported that he does not believe the standards of quality will be cut. While they will not be fully funded this year, this will occur in our lifetime. He agreed that the distinction in taxing authority between cities and counties should be eliminated if counties are providing the same level of services as cities. He particularly felt that counties should be on an equal par with cities with regard to the tobacco tax. Regarding restriction of local revenue sources, he indicated that the General Assembly would probably not change the manner in October 31,2002 709 which local revenues are currently handled. He supports changing guidelines for towns applying for grants, and he supports improvements to 1-81. He indicated that he favors the current proposal which would place tolls on trucks. Delegate Griffith stated that he did not favor rail service in the Roanoke to Bristol corridor as he did not think the population centers were large enough to get sufficient ridership to make the system functional. Regarding funding for the Smart Road, Delegate Griffith stated that if the Salem district is paying for the construction they should get the benefits from it. He stated that land use issues need to be evaluated and compromises worked out. He pointed out that the Administrative Rules Commission is a group in the legislature that can ask that regulations be placed on hold if the impact is too adverse or doesn't make sense for a locality. He encouraged local legislators to use this resource if needed. INRE: ADJOURNMENT Chairman Church adjourned the meeting at 2:15 p.m. Submitted by: Approved by: fJjJ2AQj Jt. tXit4a Diane S. Childers Clerk to the Board x~ ¡.~;~ æ- Chairman 710 October 31, 2002 This paae left blank intentionallv.