HomeMy WebLinkAbout3/1/2011 - SpecialMarch 1, 2011 113
Roanoke County Administration Center
5204 Bernard Drive
Roanoke, Virginia 24018
The Board of Supervisors of Roanoke County, Virginia met this day at the
Roanoke County Schools Board Meeting Room, 5937 Cove Road, Roanoke, VA, for the
purpose of a joint work session with the Roanoke County School Board to discuss fiscal
year 2011 -2012 budget development. Audio recordings of this meeting will be held on
file for a minimum of five (5) years in the office of the Clerk to the Board of Supervisors.
IN RE: CALL TO ORDER
Chairman Wymer and Chairman Church called their respective boards to
order at 5:30 p.m.
SCHOOL BOARD
MEMBERS PRESENT:
Chairman Michael
Wymer, C. Drew
"Fuzzy" Minnix.
W. Stovall, Vice Chairman David M.
Barrineau, Jerry L. Canada, H. Odell
SCHOOL BOARD
MEMBERS ABSENT:
None
SCHOOL ADMINISTRATION
STAFF PRESENT: Lorraine S. Lange, Superintendent; Allen W. Journell,
Deputy Superintendent of Administration; Penny A. Hodge,
Assistant Superintendent of Finance; Carol Whitaker,
Assistant Superintendent of Personnel; Brenda F. Chastain,
Clerk to the School Board; Darlene M. Ratliff, Deputy Clerk;
Angela B. Roberson, Deputy Clerk
MEMBERS PRESENT: Chairman Joseph B. "Butch" Church, Vice Chairman Eddie
"Ed" Elswick, Supervisors, Charlotte A. Moore
MEMBERS ABSENT: Supervisors Michael W. Altizer and Richard C. Flora
STAFF PRESENT: B. Clayton Goodman III, County Administrator; Daniel R.
O'Donnell, Assistant County Administrator; Diane D. Hyatt,
Assistant County Administrator; Paul M. Mahoney, County
Attorney; Brent Robertson, Director of Management and
Budget; Rebecca Owens, Director of Finance; Deborah C.
114 March 1, 2011
Jacks, Clerk to the Board; Teresa H. Hall, Director of Public
Information
IN RE: REVIEW OF SCHOOL REVENUES
Ms. Hodge reviewed a worksheet detailing school revenues comparing the
impact of the Governor, House and Senate Budget proposals. A copy of this
spreadsheet is on file in the Clerk to the Board of Supervisors office. Ms. Hodge
explained all of the numbers would change based on the final numbers. Ms. Hodge
outlined the Department of Education numbers will not be available until March 4, 2011,
and are anticipated to be somewhere between the House and Senate versions. She
noted there is a decline in numbers as the graduating classes are larger than the
incoming kindergarten classes and will be looking at different ADM scenarios based on
this count. Additionally, she noted next year's budget does not include the ARRA
stimulus funds. Ms. Hodge noted on the expenditure side, the Virginia Retirement
System (VRS) rate that was adopted is the Senate version.
IN RE: REVIEW OF COUNTY REVENUES
Ms. Hyatt reviewed the County revenues from the County of Roanoke
Revenue Detail spreadsheet and indicated revenues had been updated slightly upward
in the last month. A copy of this spreadsheet is on file in the office of the Clerk to the
Board of Supervisors. She pointed out the total County revenue increase is $2.8 million,
less the numbers designated for social services and the jail. Ms. Hyatt stated staff is
not seeing much of an increase in real estate or person property; the increases are
coming from the Clearbrook Walmart. She further indicated staff is anticipating stable
real estate with less than one percent (1 %) growth.
IN RE: REVIEW OF REVENUE SHARING ALLOCATION WORKSHEET
Ms. Hyatt and Ms. Hodge reviewed the allocation for each of their
respective areas. A copy of this worksheet is on file in the office of the Clerk to the
Board of Supervisors. Chairman Church asked what the previous numbers were for
Lawson (payroll hosting), with Rebecca Owens, Director of Finance responding this
number was originally $150,000 with five percent (5 %) increases each year.
Ms. Hodge indicated VRS made up most of the expenditures on the
School side.
March 1, 2011 115
Ms. Owens indicated there were no health insurance increases included
as the increases are being funding through the health insurance reserves. She
indicated the preliminary information showed a four point eight percent (4.8 %) increase
and this information would be presented to the Board of Supervisors during a work
session on March 8, 2011. Ms. Owens explained the benefits were basically the same
with the changes being the extension of the dependent child to age 26 and expanded
wellness benefits.
School Board Member Canada indicated he felt the people with unhealthy
lifestyles, i.e. smokers should pay a different premium and asked Ms. Owens to take
this into consideration. Ms. Owens indicated the committee would be looking at
additional plans in the fall. Mr. Canada indicated that should be a choice and felt the
School Board had the ability to provide a tobacco -free discount, which would not impact
the County side.
Ms. Hyatt returned to the worksheet review and indicated the shortfall
balance is $779,047, with each side picking up a deficit of $389,524 explaining with the
House version the number would be a deficit of $136,566 and the Senate version the
number would be a deficit of 725,676. She further indicated the template should be
available on Friday, March 4, 2011 and the localities would be able to run through their
own numbers. Ms. Hyatt indicated she was of the opinion the number would be
between the House and Senate versions with a positive outcome.
IN RE: DISCUSSION OF ONE -TIME PAYMENT TO EMPLOYEES
Chairman Wymer advised this agenda item was held over from the
October 14, 2010 joint meeting as at that time, both Boards were not sure of how the
budget would fall and left the funds alone. He indicated the funds are earmarked for
compensation, i.e. salary or bonus and the total is a little over $3.0 million. He stated
that if the money is still available, the School Board will be requesting the funds for
teacher compensation and at this point is not sure whether it will be in the form of salary
or bonus as the teachers had not received any other compensation over the last two
years.
Chairman Church requested Ms. Hyatt review each of the different
scenarios. Ms. Hyatt indicated the first option was a three percent (3 %) across the
Board with a $250 incentive for part -time workers and went through the sources for this
allocation. She explained the second option was a flat amount option with $1,200 for
full -time employees and $250 for part -time employees. Finally, she explained option
three would be three percent (3 %) of salary for full -time with a $2,000 maximum and
$500 minimum and $250 for part -time employees. Ms. Hyatt indicated this would be a
one -time payment.
School Board Member Canada asked if the $3.0 million was to be used for
both Schools and County, with Ms. Hodge responding the $3.0 million was for Schools
only and drew their attention to the note on the allocation sheet.
116 March 1, 2011
Supervisor Elswick inquired when will staff know when the funds are
received with School Board Member Stovall indicated the funds were already received.
Ms. Hodge explained the question was whether it will be reduced from the School Basic
Aid funds in the State budget. Supervisor Elswick asked if a joint announcement could
be made, with Chairman Wymer responding in the affirmative. Supervisor Elswick
stated he would like to see attention toward the lower -paid personnel, as an employee
making $100,000 is not hurting as much at the $35,000 employee. Chairman Wymer
responded that would not be a problem.
School Board Member Stovall indicated he felt this would be a balancing
act, as the Schools have been behind for two years. He stated he would like to see
what the outcome is on Friday, get the concrete numbers and then do something jointly.
School Board Member Minnix stated he could see the possibility of losing
the $3 million because of the current situation, i.e. if you don't have it, it cannot be
approved.
Chairman Church responded he felt things are more positive this year,
stating he is glad the County waited. He stated he is of the opinion there is a better
opportunity to give this bonus this year.
School Board Member Minnix asked if the $3 million is for schools and
$1.5 for Roanoke County with Ms. Hyatt responding the School cost would be $2.4 and
Roanoke County would be $1.2 with combined savings to fund a one -time adjustment.
School Board Member Canada asked what would the Roanoke County
amount be with Ms. Hyatt responding $1.5 million.
School Board Member Barrineau stated he felt one thing to consider
would be for both sides to take their amount and decide on each respective side how to
allocate.
Ms. Hodge also indicated the one positive aspect would be the lower FICA
rates if given before December.
School Board Member Canada stated he felt the schools should be given
this prior to July 1, 2011, with Ms. Hyatt indicated the money can be given in this fiscal
year. Mr. Canada then inquired how long it would take to process with Ms. Hyatt
indicating approximately one month. Mr. Canada then inquired if this would be by
special check or with the normal payroll with Ms. Owens responding a separate check.
Chairman Church indicated he was in agreement with the current formula
and has spoken with other Boards who are at the "drawing board" every year and is
impressed with our revenue sharing formula. Chairman Wymer indicated he agreed as
there was no guesswork. School Board member Stovall indicated he was in agreement
with working together and the transparency it affords.
School Board Member Barrineau asked if the bonus could be enhanced,
with Mr. Goodman asking what type of enhancement. Mr. Barrineu stated during the
budget process if there was a source of one -time funds that could be used to enhance
the bonuses. Ms. Hyatt responding that would need to be brought up during the budget
process.
March 1, 2011 117
IN RE: DISCUSSION OF ADDITIONAL SCHOOL BOARD PRIORITIES FOR
THE 2011 -2012 BUDGET
Ms. Hodge explained the School Board's priority for the coming year
would be technology, as for the past two years they had been operating under a "band -
aid" approach. She indicated during November and February a technology inventory
was done in order to match the inventory and the warranties. Additionally, she noted
the Schools would be required to do all SOL testing online. She indicated a plan is
being prepared for a year by year projection for the next three years and would be a
very large item. Chairman Church inquired if a cost number had been projected, with
Ms. Hodge explaining the presentation will be made to the School Board on Thursday,
March 3, 2011.
Chairman Wymer indicated it will address the current need for middle
schools, not just laptops but all inclusive, i.e. servers, routers, etc.
IN RE; DISCUSSION OF ADDITIONAL COUNTY BOARD PRIORITIES FOR
THE 2011 -2012 BUDGET
Ms. Hyatt indicated on the County side, the new South County Library
would be the priority for the upcoming year with $330,000 in operating costs, increased
utilities, maintenance and three new staff members. School Board Member Barrineau
inquired what the plans were for the 419 Library were with Ms. Hyatt explaining it is
anticipated the building will be kept but is not sure of the use at this point.
Ms. Hyatt also indicated another watch item is the gasoline prices.
Chairman Church stated he would like to talk about the ramifications on
the gas prices as they could wreck a budget.
Mr. Robertson indicated several years ago when gas prices were up, the
County had a shortfall of $250,000 which was covered and the prices went back down,
however this time there is no room to absorb.
Mr. Goodman indicated these prices would also affect the NADA values,
which would impact the personal property values. He indicated there was some good
news in the form of new car sales. He indicated a contingency should be planned in
case this happens.
IN RE: CLOSING COMMENTS
Chairman Wyman stated he knew everyone is acutely aware of all the
things there is no control over. Additionally, he noted the Schools have benefitted
greatly from stimulus money and those days are almost over.
School Board Member Minnix stated, "we are not out of the woods yet"
and the Middle East situation could result in the economy getting worse.
118 March 1, 2011
Supervisor Elswick stated the Board appreciated the Schools and all the
things they do. He indicated they do a wonderful job of managing the dollars and
providing information. He then asked if there was anything that should be brought up
with regard to Bent Mountain Schools. Mr. Goodman responded there have been two
meetings and will be able to bring back to the Board after a couple more meeting. He
indicated staff wanted to move forward in small steps. He indicated people have been
stepping up to pledge certain programs, but there is no finalization on what would fit
financially. School Board Member Minnix inquired if the Economic Development Staff
could assist with Mr. Goodman responding they are and everything is being pulled
together into one complete package. Supervisor Elswick pointed out the main thing to
consider is that at some point, the place would be self- sufficient as the citizens do not
want to be reliant on either the Schools or Roanoke County.
Supervisor Moore stated with what is happening in the Middle East, unless
everyone starts looking at alternative fuels, it would only become worse.
Chairman Church thanked all of the "financial" people stating the Board
cannot function without them. He further stated the Board values the relationship with
the Schools, indicating it is very important and you cannot separate Schools and the
County.
IN RE: ADJOURNMENT
f/1 Chairman Wymer adjourned the meeting at 6:44 p.m.
Submitted by: Approved by:
peborah C. ks oseph 11. "Butch" Church
Clerk to the E(oard Chairman
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