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Home My WebLink About2/19/2014 - Regular AGENDA Roanoke County Board of Supervisors and Roanoke County School Board Board Room,Roanoke County Public Schools Administration Center Building 5937Cove Road, Roanoke, Virginia24019 February 19, 2014, 6:00 p.m. A. Roanoke County School Board Call to Order - Chairman C. Drew Barrineau B. Roanoke County Board of Supervisors Call to Order Joseph P. McNamara C.Budget 1. Proposed revenue sharing formula change 2. Fiscal year 2014-2015 priorities 3. Employee raises D. Glenvar High School project overview and timing E. Discuss future meetings F. Other G.Adjournment Page 1 of 1 Memorandum of Understanding between Roanoke County School Board and Roanoke County Board of Supervisors Regarding the Revenue Sharing Formula This Memorandum of Understanding was made and entered into this ___ day of ______, 2014 by and between the Roanoke County School Board and the Roanoke County Board of Supervisors regarding the revenue sharing formula. During each annual budget preparation cycle, School Board staff and County staff shall meet along with the Chairman and Vice-Chairman of each board to determine the increase or decrease in the operating allocation to schools from the County. It is the intent of this Memorandum of Understanding to establish a formula to share revenues and through the application of this revenue sharing formula avoid unnecessary budgetary conflict, provide a stable and verifiable allocation method, and demonstrate good stewardship of the taxpayer dollars. The key elements of this Memorandum of Understanding (MOU) are as follows: Increases and decreases in County population impact demand for County services and should be factors in the allocation of county revenues to schools. Increases and decreases in student enrollment impact staffing and school infrastructure and should be factors in the allocation of county revenues to schools. The provision of education services is by its very nature labor intensive and requires the dedication of a significantly higher portion of the school budget to personnel costs than the like allocation for county services. A payroll factor should be included in the allocation formula to account for this difference in personnel costs that limit budget flexibility on the school side. In order to arrive at a revenue sharing methodology that addresses the key elements above, the allocation formula includes the following calculations: 1. Establish a three year rolling average index for the changes in county population and student enrollment. Using a rolling average eliminates significant fluctuations from year to year while recognizing that these trends affect the provision of services. The statistics used for this index will be derived from publicly available sources as follows: County population - Population numbers published in the statistical section of the Roanoke County Comprehensive Annual Financial Report (County CAFR). Student enrollment - Average Daily Membership (ADM) published in the statistical section of the Roanoke County Schools Comprehensive Annual Financial Report (School CAFR) and the Budget and Salary Scales (adopted budget). 2. Calculate a payroll factor using the percentage of school personnel budget to total personnel budget for the County and the Schools for the current year. The payroll factor should be applied to the change in the three year rolling average index and then applied to the current year index to arrive at a net tax allocation change for the new budget year. 1 3. Apply the net tax allocation change to the allocation percent calculated in the prior year to arrive at the new percent of adopted budget net taxes. This percent is then applied to the projected County revenues for total general property taxes and total other local taxes as published in the Roanoke County Annual Financial Plan (General Fund Summary of Revenue) less the amount budgeted as pass through expenditures to the Convention Visitors Bureau (previously committed by Board of Supervisors action) to arrive at the increase or decrease in the school transfer. 4. New economic development incentives will be subtracted from the county revenue projection and added back when each incentive arrangement expires. 5. The increase or decrease in the school transfer is then added to or deducted from the transfer to schools for the previous year to arrive at the total transfer to schools for the next budget. Other elements of the MOU include: 1. This Memorandum of Understanding will be reviewed annually and amended as deemed appropriate by the Roanoke County Public School Board and the Roanoke County Board of Supervisors. There is an expectation of stability in the formula but annual reviews will be performed to ensure all factors are working as intended along with the acknowledgement that there may be a need for a temporary adjustment if or when there are extreme financial pressures, insufficient new revenues, or significant mid-year changes in revenue forecasts. 2. This Memorandum of Understanding and the allocation of revenues are subject to annual appropriations by the Board of Supervisors. 3. The School Board approved this Memorandum of Understanding on _____ __, 2014; and the Board of Supervisors approved this Memorandum of Understanding on _____ __, 2014. Roanoke County School Board Roanoke County Board of Supervisors Chairman Chairman Date: Date: 2 Calculation of School Transfer 2014-2015 Instructions: Update highlighted cells each year with current information. All other cells are formulas. Calculate 3-Year Average: ADM (1)Population (2)ADM/Population FY201214,08192,68715.1920 FY201313,95893,25614.9674 FY201413,83593,25614.8355 Avg. of FY 2012-1441,874279,199 14.9979 FY201313,95893,25614.9674 FY201413,83593,25614.8355 FY201513,83593,25614.8355 Avg. of FY 2013-1541,628279,768 14.8795 (1) ADM per adopted School Budget - Student Enrollment Table and School CAFR Table (2) Population from CAFR Table 12 Calculate Net Allocation Change: Difference in the ADM/Population Index0.1184 Payroll Factor65% ADM/Population Index times Payroll Factor0.076982 Divide ADM/Population Index by Avg. of FY 2013-15 Index0.005174 Net Allocation Change (1-.005174)0.994826 Calculate Increase/(Decrease) in School Transfer: 2013-20142014-2015Increase/(Decrease) School Transfer $ 65,045,318$ 65,933,510$ 888,192 Property and Local Taxes 151,259,000154,133,350 Adjustments: Lodging Tax-Roanoke Valley Convention and Visitors Bureau (447,168) (467,168) Economic Development Incentives - - Net total taxes$ 150,811,832$153,666,182 Percentage of School Transfer/Net Total Taxes43.1301% Net Allocation Change applied to Percentage of School Transfer42.9070% Comparison of State Revenues in Governor's Budget, House Budget, Senate Budget, and General Assembly Budget As of December 16, 2013 - Governor's Budget Current YearNext Year ApprovedGovernor'sInc (Dec) BudgetBudgetfrom 2013-142014-152013-14 ADM1383513835 SOQ Programs: Sales Tax Appropriation13,886,793 14,403,255 516,462 Basic Aid36,247,075 38,375,275 2,128,200 Vocational SOQ447,553 531,426 83,873 Gifted SOQ403,675 409,459 5,784 Special Education SOQ5,923,490 5,723,718 (199,772) Prevention, Intervention, Remediation465,104 592,409 127,305 Retirement3,896,340 4,817,680 921,340 Social Security2,334,294 2,352,213 17,919 Group Life149,184 165,526 16,342 Remedial Summer School SOQ67,505 93,677 26,172 Compensation supplement- - - Addl Assistance with VRS, PreK, inflation630,559 - (630,559) 67,464,63864,451,572 3,013,066 Lottery Funded Programs: Foster Care323,344 244,625 (78,719) At Risk260,503 329,300 68,797 K-3 Class Size358,979 451,918 92,939 Alternative Education- 121,196 121,196 Special Ed - Regional Tuition41 1,2755,593(25,682) Spg,55,593(5,68) CTE - Equipment (breakout into 3 lines)8,096 - (8,096) CTE - Adult Ed1,517 - (1,517) CTE - Occup/Tech Ed59,387 84,876 25,489 ESL167,921 151,597 (16,324) 1,399,1051,221,022 178,083 Categorical Programs: Special Ed - Homebound23,799 26,713 2,914 26,71323,799 2,914 State Operating Revenues65,696,393 68,890,456 3,194,063 State Grants: Adult Ed Basic8,392 8,392 - Special Ed - Jails (regional jail)116,074 93,318 (22,756) Virginia Preschool Initiative479,531 551,617 72,086 Reading Intervention136,644 145,751 9,107 Mentor Teacher Program9,321 9,321 - Algebra Readiness85,153 94,250 9,097 GED Funding (ISAEP)15,717 15,717 - 850,832 918,366 67,534 Textbooks 838,259787,429 50,830 Technology VPSA 726,000726,000 - Alternative Education - move to state in FY15 -15,280 (15,280) School Nutrition & Breakfast 108,71595,000 13,715 Balance to DOE Printout68,170,934 71,481,796 3,310,862 \\Bos\bos\Board Meetings\2014\02-19-2014\Notes\RevBudget-State-2-19-14 joint mtg_1 Comparison of State Revenues in Governor's Budget, House Budget, Senate Budget, and General Assembly Budget As of December 16, 2013 - Governor's Budget Current YearNext Year ApprovedGovernor'sInc (Dec) BudgetBudgetfrom 2013-142014-152013-14 ADM1383513835 State revenues - Operating Fund only68,890,456 Factor out sales tax estimate used by state(14,403,255) Local estimate of sales tax13,886,793 Factor out Alternative Ed from state (Bedford)(121,196) Factor in Alternative Ed based on Salem program15,280 Factor out Career & Tech Ed estimate by state(84,876) Factor in Career & Tech Ed based on actual p/y69,000 Adjusted state revenues - operating fund68,252,202 Increase (decrease) in operating fund2,555,809 Mandatory VRS rate increases: Professional group (11.66% to 14.50%)2,051,847 Non-professional group (5.22% to 5.90%)42,986 VRS retiree health credit (1.11% to 1.18%)50,574 VRS life insurance (1.19% to 1.33%)109,997 $2,255,404 $2,255,404 $300,405 Net impact on school budget for 2014-15 \\Bos\bos\Board Meetings\2014\02-19-2014\Notes\RevBudget-State-2-19-14 joint mtg_1 Planning for Glenvar High School Funding and VPSA Bond Issues __________________________________________________________________ Glenvar High School Funding Timeline – The following dates are planned for SB and BOS action in order to ensure the optimal use of the summer construction months for beginning the Glenvar High School renovation project. The issuance of VPSA bonds is coordinated by school and county staff and involves a significant amount of paperwork and coordination with bond counsel with certain required resolutions. This schedule identifies the dates in which those resolutions must be considered for approval in order to begin construction in June 2014, complete the project in August 2015, and ensure the full funding of the project. Funding Sources: FY12-13 $10 million borrowing deferred – Joint County and School Plan FY14-15 $10 million borrowing planned – Joint County and School Plan Major Capital Amount to be determined – School cash reserves on hand Action to date: October 27, 2011 $100,000SB appropriates cash reserves for feasibility study of GHS July 12, 2012 $50,000SB appropriates cash reserves to move mobile classrooms to site June 6, 2013 $1,347,687SB appropriates cash reserves for A&E June 13, 2013 SB adopts Reimbursement Resolution July 9, 2013 BOS adopts Reimbursement Resolution January 23, 2014 $70,000SB appropriates cash reserves for value engineering $1,567,687 Estimated future dates (: Best Case Scenario) Feb 6, 2014 Value engineering presentation to SB Feb 19, 2014 Joint SB & BOS meeting incl. review of GHS project and timeline Mar 31, 2014 Design work and final bid specs completed April 1, 2014 RCPS issues RFP for construction contract April 30, 2014 RFP proposals due back to RCPS May 8, 2014 SB approval of contract award and request for VPSA bond sale (RESOLUTION) st May 13, 2014 BOS – public hearing and 1 reading for bond sale (RESOLUTION) nd May 27, 2014 BOS – 2 reading for bond sale and adoption (RESOLUTION) May 28, 2014 Release of award to low bidder June 9, 2014 Begin construction (cash funds in Major Capital Reserve to fund expenses until bonds become available in Nov 2014) July 2014 VPSA application released for Fall 2014 bond issue Aug 2014 VPSA application due (includes SB and BOS resolutions) Oct 2014 VPSA sells bonds Nov 2014 Funds available to school system Updated 2/7/14