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HomeMy WebLinkAbout1/17/2009 - Special 29 January 21, 2009 Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 January 21, 2009 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 January 13, 2009, for the purpose of a joint budget work session with the School Board. IN RE: CALL TO ORDER – SCHOOL BOARD Chairman Barrineau called the meeting to order at 5:35 p.m. The roll call was taken. MEMBERS PRESENT: Chairman C. Drew Barrineau, Vice-Chairman Michael W. Stovall, Jerry L. Canada, H. Odell “Fuzzy” Minnix, David M. Wymer MEMBERS ABSENT: None STAFF PRESENT: Dr. Lorraine S. Lange, Superintendent; Thompson H. Hall, Deputy Superintendent; Allen W. Journell, Assistant Superintendent of Administration; Penny Hodge, Assistant Superintendent of Finance; Dr. Martin W. Misicko, Director of Operations; Carol Whitaker, Director of Personnel and Staff Development; Angela Robertson, Deputy Clerk; Darlene Ratliff, Deputy Clerk; Brenda Chastain, Clerk IN RE: CALL TO ORDER – BOARD OF SUPERVISORS Chairman Altizer called the meeting to order at 5:35 p.m. The roll call was taken. 30 January 21, 2009 MEMBERS PRESENT: Chairman Michael W. Altizer, Vice-Chairman Joseph P. McNamara, Supervisors Joseph B. “Butch” Church, Richard C. Flora, Charlotte A. Moore MEMBERS ABSENT: None STAFF PRESENT: ., John M. Chambliss, JrCounty Administrator; Diane D. Hyatt, Chief Financial Officer; Dan O’Donnell, Assistant County Administrator; Paul M. Mahoney, County Attorney; W. Brent Robertson, Director, Management and Budget; Teresa Hamilton Hall, Public Information Officer; Brenda J. Holton, Deputy Clerk IN RE: OPENING REMARKS 1. School Board Chairman Barrineau advised that it has been a long tradition for the School Board and Board of Supervisors to meet and discuss upcoming budget issues. He stated that both the County and schools are experiencing difficult budget times. He reported that the state allocation of funds to the school system will be reduced by at least $7.5 million. He stated that the School Board has been aware of the state reductions and has been working on its budget since November 2008. 2. Board of Supervisors Chairman Altizer advised that when times are good, it is easy to do things in a manner that will make everyone happy; however, during difficult times such as these, he feels that true character will be shown. He stated that he believes in maintaining an optimistic outlook for the future. 31 January 21, 2009 IN RE: CLERK’S NOTE The minutes for the following discussion items reflect some of the content of the minutes of the joint work session prepared by Brenda Chastain, Clerk, and approved by the School Board at their meeting on February 5, 2009. IN RE: DISCUSSION OF REVENUES AND EXPENDITURES 1. Revenues and Expenditures Scenarios Ms. Hodge distributed and discussed a comparison of the Governor’s Budget Proposals for fiscal year 2009-2010. She compared the state operating revenues for fiscal year 2008-2009 in the amount of $79,883,615, and advised that this amount was based on a projected average daily membership (ADM) of 14,600 students. She reported that 50 percent of the school system’s budget relies on the state funding. Ms. Hodge stated that the projected ADM for fiscal year 2009-2010 may be closer to 14,500 students. She reported that the Governor’s budget reduction in the state transfer to the school division is projected to be approximately $7.1 million. Ms. Hodge advised that the Governor’s budget is expected to be the best case scenario, noting that the actual amount could be close to $10 million. Ms. Hyatt distributed information containing expenditure scenarios for the County for fiscal year 2008-2009 through fiscal year 2010-2011. She reported that the County will realize a $2.9 million deficit in tax revenues for fiscal year 2008-2009. Ms. Hyatt discussed ways of offsetting the shortfall which included County-wide expenditure reductions, personnel savings, GASB 45 implementation, deferring new police patrol 32 January 21, 2009 district, and deferring capital expenditures. She reported that an amendment for the current budget will be presented to the Board of Supervisors for approval at its February 10, 2009 meeting. Ms. Hyatt stated that the County is projecting a reduction in local tax revenues of $2.2M for the fiscal year 2009-2010 budget along with several committed expenditure increases resulting in an estimated shortfall of $4.8 million. Ms. Hyatt stated that the County is looking at departmental expenditure reductions, deferring police patrol staffing, and deferring capital to address the expected shortfall for fiscal year 2009-2010 budget. Ms. Hyatt stated that a meeting of the Chairmen and Vice-Chairmen was held on January 15, 2009, to discuss the budget, and that both Boards plan to continue appropriating $300,000 each for the joint capital improvement program. Ms. Hyatt stated that it was good news that the Community Policy and Management Team’s (CPMT) share for the County and school system did not increase. She advised that the agreed upon local appropriation for the school system would be $1,625,942. Ms. Hodge reported that Bedford County has informed the school system that it may withdraw from the R. E. Cook Regional Alternative Program that it shares with Roanoke County Schools. Ms. Hodge reported that this would result in a loss of tuition and grant revenues in the amount of $315,000. Mr. Stovall stated that the program has been an enormous success and is the last chance for many students to remain in school. 33 January 21, 2009 2. Budget Reductions and Use of Revenues Mr. Barrineau advised that the School Board and staff have identified $5 million in estimated budget reductions at this time. Dr. Lange stated that her top priorities are to maintain a low pupil/teacher ratio and retain jobs. She advised that a meeting was held this week with elementary principals concerning staffing and it appears that the school system is on target. Mr. Stovall stated that the school system plans to complete round two of budget cuts by the February 5, 2009, School Board meeting. Mr. Barrineau stated that school employees are being informed of the budget plans. Ms. Hyatt and Ms. Hodge discussed the use of health insurance reserves, and Ms. Hodge provided information about the historic health insurance reserve balances. Ms. Hodge and Ms. Hyatt suggested the possibility of using a portion of the reserves during the budget shortfalls in the next two years to offset health insurance premium increases for employees and other operating budget needs. Supervisor McNamara expressed concern about using the health insurance reserves and questioned the amount that would be used and if there would be a maximum amount utilized. Dr. Lange and Ms. Hodge advised that the school system was considering the use of $2 million from the reserves for the current year and $1 million for next year. Ms. Hodge advised that the school system had planned to reduce the use of reserves in the future. Supervisor Flora stated that using funds from the reserves made him nervous; however, he understood the need for this action. He 34 January 21, 2009 stated that it was his desire to make it through the budget process without any employees losing their jobs. Mr. Stovall reported that the School Board voted to extend the Employee Extended Work Plan (EEWP) from five to seven years for employees who may wish to retire. Supervisor McNamara questioned the deadline to participate in the plan. Mr. Canada stated that the deadline is currently January 31, 2009. Mr. Chambliss advised that the target budgets which were distributed to County departments included the $2.9 million budget deficit, and that the departments were required to submit plans to address the deficit. IN RE: CLOSING COMMENTS Chairman Barrineau stated that the School Board will continue to identify spending reductions in anticipation of ongoing economic difficulties for the next few years. He stated that the members of the Board have been good partners in education. Mr. Minnix stated that he was grateful for the relationship between the two boards and that both understand the serious financial problems facing the County and schools. Mr. Stovall expressed appreciation to the Board of Supervisors for its support of public education. Chairman Altizer stated that the School Board and Board of Supervisors have always been good partners, in good and bad times, and that the County will continue to work on their budget. He advised that the results of the unknown Federal Economic Stimulus Package could be positive. Chairman Altizer offered reassurance January 21,2009 35 that both Boards will sustain the current budget crisis. INRE: ADJOURNMENT Chairman Barrineau recessed the School Board meeting at 6:10 p.m. Chairman Altizer adjourned the Roanoke County Board of Supervisors meeting at 6:10 p.m. until Tuesday, February 10, 2009, at 3:00 p.m. for the regularly scheduled Board meeting. Submitted by: Approved by: ~k~.~ Brenda J. H Iton, CMC Deputy Clerk to the Board Michael W. Altizer Chairman 36 January 21, 2009 (This page left intentionally blank)