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HomeMy WebLinkAbout2/18/2003 - Special 121 February 182003 , Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 February 18, 2003 The Board of Supervisors of Roanoke County, Virginia met this day at the Roanoke County Public Service Center, 1216 Kessler Mill Road, Salem, Virginia, this being an adjourned meeting from February 11, 2003 for the purpose of conducting a budget work session. IN RE: CALL TO ORDER Chairman McNamara called the meeting to order at 5:27 p.m. The roll call was taken. MEMBERS PRESENT: Chairman Joseph McNamara, Vice-Chairman Richard C. Flora, Supervisors Joseph B. “Butch” Church, H. Odell “Fuzzy” Minnix MEMBERS ABSENT: Supervisor Michael W. Altizer STAFF PRESENT: Elmer C. Hodge, County Administrator; Diane S. Childers, Clerk to the Board; John M. Chambliss, Assistant County Administrator; Dan O’Donnell, Assistant County Administrator; Diane D. Hyatt, Chief Financial Officer IN RE: WORK SESSION 1. Overview of Budget Methodology. (Brent Robertson, Budget Director) The budget work session was presented by Brent Robertson and was held from 5:27 p.m. until 6:55 p.m. 122 February 182003 , Mr. Robertson provided an overview of the budget development process which includes identification of core departmental values and determining the department’s goals, objectives, and strategies. The departmental business plans provide an overview of these issues. 2. Departmental Budget Reviews: (a) Economic Development (Doug Chittum, Director of Economic Development) Mr. Robertson introduced Doug Chittum, Director of Economic Development, and indicated that the departmental budget for fiscal year 2003-2004 is $541,000 and the department maintains three cost centers. Mr. Chittum outlined the philosophy of the Economic Development Department which focuses on three segments: supporting existing businesses, attracting new businesses, and serving as a liaison between government and businesses to provide a favorable climate to foster economic growth. Mr. Chittum reported that marketing efforts have been focused on advertisements for the Center for Research and Technology (CRT), participation in Chamber of Commerce events, and joint regional efforts. He indicated that the department strives to present Roanoke County as a vital partner in the regional economy. He noted that the Economic Development Department coordinates with the Department of Community Development with regard to funding contracting costs at CRT. 123 February 182003 , In response to a question from Supervisor McNamara, Mr. Chittum stated that investment in CRT offers the greatest potential for future development. He stated that the visual enhancement project at CRT has begun, which involves installation of interior signage and landscaping, entrance signage, and overall presentation of the Center. He noted that development of the Vinton Business Center (formerly McDonald Farm) is a long-term goal and the Town of Vinton has taken the lead role in this project with support from the County. He also stated that it is important for the County to focus on opportunities driven by the private sector, and indicated he would support the private sector taking the lead role in industrial development projects. Supervisor Minnix indicated a need to address a long-term goal of establishing partnerships with Virginia Tech and Carilion Health Systems. Mr. Chittum reported that staff has met with both these organizations, and they are working to build relationships with a regional perspective. Supervisor Church concurred with Mr. Chittum that CRT should receive the County’s top priority. He also emphasized the need to maintain relationships with existing businesses. Supervisor McNamara asked if the $1.07 million previously allocated to CRT will continue to be used for the same purpose. Mr. Chittum stated that there is always work remaining to be completed, and if additional businesses locate in CRT, work will need to be done to prepare those sites. Mr. Chittum indicated that this money would continue to be needed at CRT. 124 February 182003 , (b) Treasurer (Fred Anderson, Treasurer) Mr. Robertson introduced Fred Anderson, Treasurer, and reported that his departmental budget for fiscal year 2003-2004 is $676,000. Mr. Anderson stated that short-term strategic issues facing the Treasurer’s Office include: (1) The possibility of continued state funding reductions. (2) Inability to convert to an electronic system of distributing tax bills due to the HP migration. The General Assembly passed legislation last year that would allow the Treasurer to send tax bills via e-mail, which would result in a decrease in postage and personnel costs. (3) Increasing postage rates. Mr. Anderson reported that the cost of mailing tax bills to citizens comprises approximately 10% of the Treasurer’s budget. (4) The equipment used to code tax bills needs replacing and the service contract costs continue to rise. Unless the equipment is upgraded, the service contracts will continue to rise with increases approaching 5% – 10% annually. This equipment is necessary because it reduces the number of staff necessary to handle the tax bills. The possibility of implementing a document imaging system was discussed, and Mr. Anderson indicated that a determination would need to be made on the cost effectiveness of conversion. In response to a question from Supervisor Minnix, Mr. Anderson reported that the cost of replacing the coding equipment would be approximately $150,000. Supervisor McNamara inquired about the possibility of contracting these services through a bank (lockbox processing), and Mr. Anderson indicated that this would be a possibility. Supervisor McNamara stated that the problem facing the 125 February 182003 , Treasurer’s Office is the surge in manpower needed to handle tax bills during the month of May. In response to a question from Supervisor Minnix, Mr. Anderson reported that delinquent tax sales have not proven to be an efficient method for recouping delinquent funds for the County. At present, the Treasurer turns delinquent notices over to the County Attorney’s office for collection. The possibility of staggering the sale of County decals to correspond with the expiration of State license tags was discussed. It was noted that this would eliminate the large surge of business that is transacted in May, resulting in lower personnel costs and smoother work flows. Mr. Anderson also reported that beginning in Spring 2003, he will have the ability to work through the Division of Motor Vehicles (DMV) to place a “stop” on a person’s ability to purchase State license tags if their personal property taxes are delinquent. (c) Libraries (Diana Rosapepe, Library Director) Mr. Robertson introduced Diana Rosapepe, Library Director, and reported that the County spends approximately $2.0 million annually for library services. Ms. Rosapepe reported that positive issues within the library system are: library usage is increasing, citizens are requesting more services, libraries continue to pursue innovations in technology, classes and programs are full with many containing waiting lists, Roanoke County is the library of choice in the Roanoke Valley with 55-60% usage ratios, and customer service standards remain high. Ms. Rosapepe reported that 126 February 182003 , the average work day at the Headquarters library will involve interaction with approximately 250 individuals. Ms. Rosapepe stated that issues facing the libraries are as follows: (1) A decade of level funding has translated to a decline in funding due to inflation. The library’s allocation from the State is declining, further impacting their ability to adequately fund book purchases. (2) The popularity of databases has increased significantly, but they are prohibitively expensive to purchase. Citizens are demanding remote access for these types of services and while demand for databases continues to increase, the demand for books remains steady. Ms. Rosapepe indicated that in order to keep the libraries open, the budget for purchasing books has been reduced and the funds shifted to cover personnel costs. She indicated that it has not proven feasible for the library to reduce operating hours because citizens will return on the next operating day, thus overwhelming staff. The need to revise the fine ordinance, which was adopted 12 years ago, was discussed. Ms. Rosapepe stated that due to the rising cost of books, there needs to be greater fluidity in the fine ordinance. It was the consensus of the Board that this issue should be re-examined. In response to a question from Supervisor McNamara, Ms. Rosapepe reported that her budget for purchases is $205,000, which is a decrease from $254,000. Ms. Rosapepe stated that the key long term issue facing the Libraries is the need for renovations at several of the buildings. She stated that there are 49,000 127 February 182003 , registered citizens transacting business at County libraries each year who make repeat visits. There were in excess of 800,000 visitors to the libraries last year. Ms. Rosapepe noted that the majority of the operating budget is spent on research and circulation (77% of budget) and automation (17% of budget). Supervisor Church stated that the Board needs to find a method to continue meeting the needs of the library. Supervisor McNamara questioned what had prompted the reduction in book purchases from $254,000 to $205,000. Ms. Rosapepe stated that funding needed to be shifted to cover part-time personnel costs and a test server which was part of the library consortium costs. In addition, Botetourt County’s costs increased an additional $3,000, and this impacted the County as well. Supervisor McNamara stated that the one-time cost of funding the test server should be covered from year-end balances. In response to a question from Mr. Hodge, Ms. Rosapepe reported that the add-back request with the highest priority is the periodicals database, a $28,000 unfunded mandate, which is a recurring cost. She also noted that funding of vehicle purchases is an issue for the department. (d) Human Resources (Joe Sgroi, Director of Human Resources) Mr. Robertson introduced Joe Sgroi, Director of Human Resources, and reported that the Human Resources budget for 2003-2004 is $464,000. Mr. Sgroi reported that the Human Resources Department strives to be a business partner with diverse departments, to provide professional consulting services, 128 February 182003 , and to offer a staff that is proactive in employee relations. He stated that staff tries to focus on value added activities (high touch and high tech) versus transactional activities to improve the organization. Issues facing the Human Resources Department include: (1) The Lawson payroll system is being challenged by hardware constraints and improvements are subject to completion of the HP migration. In response to a question from Mr. Hodge, Mr. Sgroi indicated that this system handles payroll for both County and School employees. (2) Staff continues to place emphasis on minority recruitment of a diverse workforce. Mr. Sgroi noted that additional funding is needed to increase efforts in this area. (3) Increased emphasis on E-government has resulted in approximately 60% of employment applications being received online. The need for laser printers to handle printing of these applications was noted. (4) Document imaging is needed for improved file management. (5) The Health Insurance Portability and Accountability Act (HIPAA) is an unfunded mandate which will increase the responsibilities of the human resources department. Mr. Sgroi reported that recruitment and retention of employees is a key issue facing human resources. He noted that the demographics are changing and the County has experienced a record number of retirements. The environment for recruitment of new employees is very competitive, but staff is targeting colleges and career fairs throughout the region. In response to a question from Supervisor Minnix, 129 February 182003 , Mr. Sgroi reported that County salaries remain competitive but students are facing greater ranges of job opportunities across different industries. Mr. Sgroi emphasized the need for employee training and stated that there has been a gradual “flattening” of the organization through increased employee responsibilities. This produces a greater need for employee recognitions, pay for performance, and competitive benefits packages. Mr. Sgroi stated that the health of the organization is good and he reported that grievances have been declining. In response to a question from Supervisor Minnix, Mr. Sgroi reported that Human Resources’ role in the grievance process is not only to facilitate the process, but also to meet with the employee and discuss the grievance in an attempt to resolve the issue. In response to a question from Supervisor Minnix, it was reported that approximately 50% of County employees who leave their jobs do so for what appears to be higher paying jobs. In response to a question from Supervisor McNamara, Mr. Sgroi reported that the highest turnover rates exist in the lower skilled jobs and indicated that it might be beneficial to examine the wage base. He noted particular difficulty in replacing professional positions due to higher salary demands. The importance of employee recognition programs was emphasized. In response to a question from Supervisor McNamara, Mr. Sgroi reported that the County issued an Employee Benefits Statement in 2002, which was produced 130 February 182003 , in-house at a great cost savings. This statement will continue to be issued to employees annually to keep them apprised of their benefits package. There was discussion regarding the adequacy of the Lawson payroll system, and it was stated that the system is adequate but the problem relates to insufficient server capacity and the need to upgrade the hardware. Supervisor McNamara suggested the possibility of buying software on a lease/purchase plan. IN RE: ADJOURNMENT Chairman McNamara adjourned the meeting at 6:55 p.m. until Wednesday, February 19, 2003 at 10:00 a.m. at the Roanoke County Administration Center for an economic development announcement and related action. Submitted by: Approved by: ________________________ ________________________ Diane S. Childers Joseph P. McNamara Clerk to the Board Chairman