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HomeMy WebLinkAbout3/8/2006 - Special March 8, 2006 147 Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 March 8, 2006 The Board of Supervisors of Roanoke County, Virginia, met this day at the Roanoke County School Administration Office, 5937 Cove Road, N.W., Roanoke, Virginia, this being an adjourned meeting from March 6, 2006, for the purpose of a joint budget work session with the School Board. IN RE: CALL TO ORDER Chairman Stovall reconvened the School Board meeting at 5:35 pm. MEMBERS PRESENT: Chairman Mike Stovall, Vice-Chairman William A. Irvin, III Drew Barrineau, Jerry L. Canada, Marion G. Roark MEMBERS ABSENT: None STAFF PRESENT: Dr. Linda H. Weber, Superintendent; Dr. Lorraine S. Lange, Deputy Superintendent of Instruction; Thompson H. Hall, Assistant Superintendent of Personnel; Allen W. Journell, Assistant Superintendent of Administration; Penny Hodge, Assistant Superintendent of Finance; D. Patrick Lacy, Attorney; Brenda Chastain, Clerk; Darlene Ratliff, Deputy Clerk Chairman Wray called the meeting to order for the Board of Supervisors at 5:35 p.m. The roll call was taken. 148 March 8, 2006 MEMBERS PRESENT: Chairman Michael A. Wray, Vice-Chairman Joseph P. McNamara, Supervisors Michael W. Altizer, Joseph B. "Butch" Church, Richard C. Flora, MEMBERS ABSENT: None STAFF PRESENT: Elmer Hodge, County Administrator; Diane Hyatt, Chief Financial Officer; Brent Robertson, Director of Management and Budget; Dan O'Donnell, Assistant County Administrator; Paul Mahoney, County Attorney; Teresa Hamilton Hall, Public Information Officer; Brenda Holton, Deputy Clerk IN RE: OPENING REMARKS Chairman Stovall and Chairman Wray thanked the members of the Board of Supervisors, School Board and staff for attending this work session to discuss the 2006-2007 budget issues. Chairman Stovall advised that Richard Flora was retiring today as the Director of Operations for the schools. He expressed appreciation to Mr. Flora for his years of public service. Supervisor Flora advised that he appreciated the support of the School Board members and Dr. Weber during his service with the school system. He advised that the school system has some very talented employees and that he had previously commended Ms. Hodge for her professionalism which has enabled the School Board to come closer to adopting a pay-as-you-go process. He acknowledged that this is a joint County project and expressed appreciation to Ms. Hyatt for her efforts. He thanked Chairman Stovall for his kind wishes. March 8, 2006 149 Mr. Stovall advised that in past years, the School Board met approximately three or four times with staff to consider the budget; however, this year they held a budget summit meeting on March 2, 2006, to consider all of the items together. He advised that the Chairman and Vice-Chairman of both Boards, Dr. Weber, Mr. Hodge, Ms. Hyatt, and Ms. Hodge met on March 7, 2006, to discuss budget matters. He advised that the school staff had distributed an agenda with attachments and that a review of shared revenues and expenditures would be presented by Ms. Hodge and Ms. Hyatt. IN RE: REVIEW OF SHARED REVENUES Ms. Hyatt advised that the budget projections were completed using a four percent salary increase. She advised that the County is anticipating approximately $7.8 million in new revenues for fiscal year 2006-2007; however, that amount might be over- stated by approximately $300,000 due to the actual personal property figures received. She also noted that there may be a decrease in revenues of $500,000 for fiscal year 2005-2006. She advised that the new revenues will be reduced by funds for the new economic development incentive agreements and $100,000 for the gainsharing agreement with the Town of Vinton. Ms Hyatt advised that after these reductions, $7,469,000 in new revenues will be available for other County needs in fiscal year 2006- 2007. Ms. Hodge advised that state revenues are 500/0 of the schools' budget, and it is coincidental that the schools' new revenues are predicted to be approximately 150 March 8, 2006 $7.8 million which is the same estimate for the County's new revenues. She advised that the budgets being discussed by the Governor, the House and the Senate vary with respect to the amount of new revenues, and staff hopes to obtain more accurate budget estimates before the General Assembly adjourns. IN RE: REVIEW OF SHARED EXPENDITURES 1: Virainia Retirement System (VRS) Ms. Hyatt advised that in the 2005-2006 budget, the County had a substantial increase in the costs for the Virginia Retirement System (VRS); however, there is no increase for the fiscal year 2006-2007. Ms. Hodge advised that the schools' expenditures for VRS include an increase in rates for the mandated statewide teacher retirement pool. She reported that the proposed House and Senate budgets have different rates and while these rates are less than what has been stated by the VRS actuary, staff remains concerned about the cost for these mandated funds. Ms. Hodge advised that the schools are anticipating an increase of more than $4 million in premiums for the VRS and life insurance rates. Ms. Hodge reported that the schools estimate that the health insurance rate will increase ten percent; however, the dental insurance rate which has not increased in recent years, will remain at five percent. Ms. Hodge advised that the schools are anticipating an increase of approximately $5 million in non-optional benefits. March 8, 2006 151 2. EmDloyee Salary Costs Ms. Hyatt advised that a one percent increase in salaries would cost the schools $875,000 and the County $425,000. She reported that staff submitted their version of the budget using a four percent salary increase because the Governor's budget was based on that percent. She further reported that staff prepared another scenario of budget information using a five percent salary increase. 3. CaDitallmDrOyement Plan (CIP) Ms. Hyatt advised that the contribution to the CIP is $300,000 each for the County and schools, in accordance with the agreement which was implemented last year that provides for an incremental increase of $300,000 per year. The $600,000 amount includes the initial $300,000 and the additional $300,000 for the second year. She advised that there has been some discussion among the members of the Board of Supervisors that the contribution should be increased; however, the same amount which was approved last year was budgeted. 4. Community Policy and Manaaement Team (CPMT) Ms. Hyatt advised that there was an increase of $250,000 each for the schools and County this year for the CPMT which was funded by the County. She advised that the usage seems to be split evenly between cases referred by the court system and the school system. Ms. Hyatt advised that after reducing the revenues by the expenditures and a four percent salary increase, there will be a balance of $1,655,005 each remaining for County and schools for other needs. She advised that 152 March 8, 2006 using a five percent salary increase, there would be $1,005,005 each remaining for other County and school needs. 5. School ~ eXDenditures. other than Dersonnel. CPMT and CIP Ms. Hodge advised that the schools' new expenditures, other than personnel, CPMT, and capital contributions, were reviewed by the School Board at their budget summit last week. She advised that this list which includes increases in laptop initiative funding stream, fuel, and utilities, would require funding of $2,048,185. She advised that there are insufficient funds under either of the budget scenarios presented to cover these costs. In response to Supervisor Wray's inquiry, Ms. Hodge advised that the laptop program would be completely funded in three years if the School Board were able to fund $400,000 in new revenues each year. 6. County ~ eXDenditures. other than Dersonnel. CPMT and CIP Mr. Robertson advised that the County's list of major initiatives was shared with the Board of Supervisors in a previous work session. He advised that the following items have been included in the County's list of expenditures: (1) Art Museum contribution - $200,000; (2) Community Development Department reorganization - $400,000; (3) additional police patrol district - $500,000; (4) amount needed to correct underfunding of the Length of Service Award Program (LOSAP) - $58,000; (5) new program for fire and rescue volunteers - $150,000; (6) renovations to the existing March 8, 2006 153 Salem-Roanoke County Jail - $500,000; (7) outsourcing of jail prisoners while the regional jail is under construction - $500,000; (8) additional Virginia Department of Transportation (VDOT) revenue sharing funds - $500,000; and (9) increases for utilities and fuel. IN RE: POSSIBLE REAL ESTATE TAX REDUCTION Mr. Hyatt advised that a one cent reduction in the real estate tax rate would impact the fiscal year 2005-2006 budget by a reduction of $322,312 and the fiscal year 2006-2007 budget by a reduction of $665,575. IN RE: SCHOOL BOARD BUDGET COMMITTEE RECOMMENDATIONS ON PERSONNEL NEEDS Mr. Stovall advised that during the summit meeting last week, the Superintendent's budget committee was asked to report back to the School Board regarding personnel needs. Mr. Tom Hall advised that Mr. Canada and Mr. Barrineau serve on the teacher salary committee, and Mr. Irvin and Ms. Roark serve on the classified salary committee with representatives from the Roanoke County Education Association. Mr. Stovall requested that Mr. Hall report on the committee's recommendations. Mr. Hall stated that the budget committee's recommendations are as follows: (1) Funding for a five percent increase for all employees. (2) Degree proposal that would eliminate the plus twelve and plus twenty-four hour degree supplements and replace them with the flat dollar amount supplements for master and doctorate degrees. 154 March 8, 2006 This would cost approximately $190,000 in new funds over the next four years to fully implement the plan in the fifth year. (3) Increase the tuition assistance from $50 to $75 per credit hour. (4) Funding for payment of true daily rate for teachers who have extended contracts and are above step 20 on the teacher scale. (5) Funding for a $20 per month deferred compensation match plan. Mr. Hall discussed a handout which compared the salaries of Roanoke County teachers to those in the surrounding localities. He advised that while Roanoke County salaries are competitive at the beginning of the scale, except for the City of Salem, after ten, twenty or thirty years, the salaries are less than those of Botetourt and Franklin Counties, the City of Salem, and the City of Roanoke. Mr. Hall advised that this was the reason that the salary committee is recommending a five percent salary increase. Supervisor Altizer advised that other localities may be able to fund large salary increases because they have a higher pupil/teacher ratio, and he feels that Roanoke County's salaries are lower due to their lower pupil/teacher ratio. Mr. Stovall advised that he felt this was an accurate observation and that the School Board's charge to Dr. Weber when she was hired was to lower the pupil/teacher ratio. Dr. Weber advised that approximately five or six years ago, the Botetourt School Board and Board of Supervisors made a commitment to increase salaries for their administrative staff and teachers. Mr. Hall stated that Botetourt County's March 8, 2006 155 commitment for six percent salary increases for approximately five years has been completed. Dr. Weber advised that Montgomery County is discussing a possible commitment to increase their teachers' salaries. Mr. Stovall advised that a survey was recently conducted among teachers which indicated that teachers prefer the lower pupil/teacher ratio. Mr. Stovall advised that several weeks ago, a salary increase was announced for the school principals which was funded by more effectively utilizing their existing funds and through attrition. Supervisor Church advised that there should be a balance between the concerns of education and public safety. He advised that he feels there are serious deficiencies in public safety, especially considering the increasing time of responses by the Police Department. He advised that funding must be provided for both. Supervisor McNamara advised that both Boards need to consider collective solutions to resolve the budget concerns. He advised that the School Board made a commitment to their employees, and the Board of Supervisors made a commitment to support the School Board. He advised that he did not think that the lower teacher/pupil ratio should equate to lower teacher salaries. He recommended that the funding for the CIP be increased from $300,000 to $450,000 per year because there is a different cost environment now and the increase would help to complete the projects sooner. Mr. Hodge advised that he understands that the School Board's priority is a five percent salary increase and advised that both Boards should work toward that 156 March 8, 2006 goal. He advised that the County will begin moving into the new Public Safety Center in December 2006 or January 2007, and the move will be completed by June 2007. Mr. Hodge questioned what use the schools anticipate for the old William Byrd High School. He advised that the County needs space, even on an interim basis if available, for a satellite operation with lifts for the County garage because they are servicing vehicles for the Western Virginia Water Authority (WVWA). Supervisor Flora advised that he felt that the CIP funding should be increased to $450,000 because the schools and County have tremendous capital needs. He also recommended a five percent salary increase for employees rather than creating new positions which will need additional funds. He advised that they need to be very prudent in the way that they spend the taxpayers money and that capital needs are always going to exist. Supervisor Church advised that he feels that public safety needs are an absolute necessity. He requested that staff estimate what increases will be needed in future years to keep the CIP adequately funded. He advised that Ray Lavinder, Chief of Police for Roanoke County, described the lack of coverage at a recent Board meeting, and Supervisor Church advised that he is not willing to let the County facilities, schools or citizens and their property be unprotected. He believes that the needs of both education and public safety must be considered. March 8, 2006 157 Supervisor Altizer stated that he would advise caution. He stated that he understands the necessity for increased funding for the CIP and employee salaries; however, in the past three years, the response times to emergency police calls have become worse. He advised that he wanted everyone to be aware that a five percent salary increase is not final, and indicated that the budget priorities for the County and schools need further review. Mr. Hodge advised that Supervisor Altizer had an excellent point, and he suggested that another meeting be scheduled after the school and County staffs have the opportunity to further review the budget needs. Mr. Stovall agreed that an additional meeting was necessary and advised that it is anticipated that staff will have the final General Assembly budget figures at that time. IN RE: POSSIBLE BENCHMARKING PROJECT Chairman Stovall advised that the contributions to the CIP could become part of the benchmark project. Dr. Weber suggested that benchmarks could be set for all projects in each area of the County and schools. She stated that the taxpayers have a right to this information, and this list could serve as an excellent budget document for the future. IN RE: POSSIBLE REAL ESTATE TAX REDUCTION Mr. Stovall advised that this subject was discussed at the budget meeting which he attended yesterday. He stated that a reduction of the real estate tax rate will be considered by the Board of Supervisors at their meeting on March 28, 2006. 158 March 8, 2006 IN RE: FUTURE MEETING It was the consensus of the School Board and Board of Supervisors that the Chairmen, Vice-Chairmen, Mr. Hodge, Dr. Weber, Ms. Hodge and Ms. Hyatt will meet on March 21, 2006, at 7:30 a.m., at the Roanoke County Administration Center to continue discussion of the budget. IN RE: ADJOURNMENT Chairman Altizer adjourned the Roanoke County Board of Supervisors meeting at 6:43 p.m. until Tuesday, March 14, 2006, at 3:00 p.m. for the regularly scheduled Board meeting. Chairman Stovall reconvened the School Board in closed meeting at 6:45 p.m. Submitted by: Approved by: ~9·~ Brenda J. Holton, CMC Deputy Clerk to the Board "'0ì~ Q.~ Michael A. Wray Chairman