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HomeMy WebLinkAbout3/11/2010 - RegularMarch 11, 2010 93 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 2010-2011 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 Stovall and Chairman Church called their respective boards to order at 5:00 p. m. SCHOOL BOARD MEMBERS PRESENT: Chairman Michael W. Stovall, Vice Chairman David M. Wymer, C. Drew Barrineau, Jerry L. Canada, H. Odell "Fuzzy" Minnix. 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 Richard C. Flora, Charlotte A. Moore MEMBERS ABSENT: Supervisor Michael W. Altizer 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; Becky R. Meador, Clerk to the Board; Teresa H. Hall, Director of Public Information 94 March 11, 2010 IN RE: DISCUSSION OF SCHOOL BUDGET Caboose budget (2009-2010) -House and Senate (HB29/SB29) Ms. Hodge discussed the Caboose (or current year) budget. The mid-year reduction in State aid is estimated to be $1 million. The elimination of the textbook funds will be a reduction of $1.1 million. The fourth quarter holiday savings from the Virginia Retirement System (VRS) will be $2.4 million. The net mid-year reduction in revenues and VRS holiday will be $0.3 million. Ms. Hodge cautioned that the numbers reflected information distributed by the Department of Education and are subject to change by both the State and staff. She stated that staff is looking at breaking even at the current time. House Version 2010-2011 Budget (HB30) Ms. Hodge stated that the House budget was the least favorable. It included a $10.4 million estimated reduction in State aid; $2.5 million payback for VRS savings to the State by local governments; $0.5 million in new expenditure increases for Capital Improvement Programs (CIP) and utilities; and $4.2 million in VRS savings from lower rates. Ms. Hodge stated that the reductions net $9.2 million before County funding and school cuts, which are to be determined. Pending decisions include enrollment for next year, final State revenues from the Conference Committee, County transfer and elimination of the Virginia Public School Authority (VPSA) technology grant in the amount of $830,000. Ms. Hodge stated that the 2009-2010 enrollment count of the graduating senior class is larger than the incoming kindergarten class by approximately 250 students. Senate Version (2010-2011 Budget SB30) Ms. Hodge explained that the Senate version included a $10.4 million estimated reduction in State aid; no payback of VRS savings to the State; $0.5 million in new expenditure increases for CIP and utilities; and $3.7 million in VRS savings from lower rates. Reductions net $7.2 million before County funding and school budget cuts, which are to be determined. The Senate version restores the technology grant. She reported that pending decisions included enrollment for next year, final State revenues from the Conference Committee and the County transfer. Student Enrollment Ms. Hodge reported that roughly 50 percent of the budget funding depends on a correct Average Daily Membership (ADM). She reported that the correlation between the ADM and actual September enrollment has been 99 percent for most of the past ten years. Ms. Hodge stated that the school division is currently experiencing a decline in enrollment and reviewed the 2010-2011 projected enrollment by using the roll-up method. The projected enrollment will be 14,332 using this method. Multiplying the 99 percent correlation from past years by the roll-up calculation of 14,332, equals 14,189. At its March 10, 2010, budget work session, School Board members concurred with the recommendation by staff to use the figure of 14,200 as the projected ADM for 2010-2011 State funding. March 11, 2010 95 IN RE: DISCUSSION OF COUNTY BUDGET Senate Version Ms. Hyatt discussed new County revenues in the amount of $363,865. Savings on previously shared debt service on the four elementary schools under renovation were $683,512. The local appropriation to schools would be $3,407,695 under the Senate scenario. Mr. Goodman stated that it would mean closing fire stations and the possibility of reducing the fleet by 10 percent; however, minimum standards must be maintained. Mr. Goodman is pushing his departments to cut their budgets. He has directed County departments to present an additional 10 percent cut on top of the 10 percent they have already given. House Version Ms. Hyatt discussed revenues according to the proposed House budget. The increase in the County transfer to schools would exceed $4 million. At this level, the County would need to eliminate personnel and programs. Ms. Hyatt added that actually the Senate budget may be worse for the County from a revenue standpoint. She advised that everything is dependent upon final numbers. Mr. Goodman reported that he has reviewed all departmental budgets and frozen vacant positions. The County is trying not to eliminate positions; however, some personnel may not remain in the same job. He advised that the Board of Supervisors has continuously stated that education is a priority. Supervisor Church stated that staff understands the difficult budget and that the Board of Supervisors may have to take extraordinary measures. He stressed that the board is trying to be transparent and is grateful for the relationship it has with the School Board. Comparison of Total Operating Budgets Ms. Hyatt compared the County and school operating budgets. The true operating cost for the County is $85,570,588, which represents 39.69 percent of the total operating budget; and the operating cost for the school system is $130,020,469, which represents 60.31 percent. The total operating budget for both is $215,591,057. Mr. Goodman stated that he will reconvene the revenue committee to find every available dollar and to appropriate funds correctly. He advised that real estate is a concern. Building permits are down by 50 percent. Mr. Goodman stated that he is also trying to better project personal property revenues. IN RE: BUDGET DISCUSSIONS Mr. Canada stated the School Board has spent quite a bit of time on the 2010-2011 budget and is already starting on the 2011-2012 budget. He felt that the School Board has not been as fortunate as the Board of Supervisors regarding elimination of staff and will have to displace some teachers and programs will be impacted. 96 March 11, 2010 Mr. Barrineau reported that the reduction of as many as 150 employees over two years has been discussed. He stated that should the School Board lose another $8 million next year, personnel would be impacted. Mr. Goodman reported that his staff completed a five-year budget projection, which indicated that the year 2012 would be worse than next year. He advised that the Board of Supervisors shares the same concerns as the School Board. Staff will begin working on next year's budget as soon as the current budget is approved. Mr. Canada expressed concern that the amount of the local transfer discussed this day may not be the actual amount that the School Board receives. He also discussed the possibility of mid-year emergency reductions, questioning whether the Board of Supervisors would agree to a transfer of funds (possibly $1 million) from the capital budget to cover operating costs should amid-year emergency occur. Supervisor Church stated that he did not see a problem with the transfer. Supervisor Flora advised that he would not have a problem transferring the funds as a band aid to cover State revenue reductions. Supervisor Moore concurred noting that the County needs to provide a good education to its students. Mr. Stovall stated that it appeared that everyone is fine with the 2010-2011 budget; however, the 2011-2012 budget will be catastrophic. He expressed appreciation to all in attendance for doing such a great job on the budget. Supervisor Flora concurred with Mr. Stovall, noting that next year will be a bigger concern. He noted that the Board of Supervisors cannot fund the House version of the budget. He also expressed concern about what would happen when stimulus funding is no longer available. He stated that educating students requires funding and the Board of Supervisors should not abandon the School Board now, noting that the School Board had provided funding to the County during positive budget years. Supervisor Church stated that the Board of Supervisors will support schools. He stressed the need for both boards to work together and hold regular meetings to avoid any unknowns. IN RE: FUTURE USE OF BENT MOUNTAIN ELEMENTARY SCHOOL BUILDING Mr. Stovall reported that the School Board voted to close Bent Mountain Elementary school in February 2010 due to budget reductions. He advised that the School Board wanted to maintain the aesthetics of the building in the event it would be reopened as a school in the future; however, the School Board is more than willing to work with the County regarding use the building. Mr. Barrineau stated during budget deliberations last year, the closing of Bent Mountain Elementary School was on Tier 3. He advised that stimulus funding helped keep the school open one more year. He concurred with Mr. Stovall regarding March 11, 2010 97 the future use of the building as an elementary school and would like for the School Board to continue ownership of the building and land; however, the County could use it. Supervisor Elswick expressed his perspective on the future of the Bent Mountain Elementary building. He stated that the citizens of Bent Mountain would like to continue to use the building as a school in some way, which would enhance the County and to use it as a community center, recreational center, for art, drama, and music classes and fish fries. He stated that the citizens do not have the same facilities as citizens in other parts of the County. Residents have been very close to the school for 99 years and the children are exemplary. He advised that the citizens would like the title of the building to go to the County and not stay with the School Board. There would be no expense to the County or schools. Mr. Stovall questioned why the citizens do not want to work with the School Board. Supervisor Elswick responded that the School Board is subject to too many restrictions. Mr. Canada questioned County Attorney Paul Mahoney as to whether a Christian Academy could be held in the school. Mr. Mahoney will research the matter. Supervisor Elswick disagreed that the building would ever be needed as a school again, noting that the Poage Farm had been purchased for the building of a new school. He suggested a study to substantiate the School Board's position and felt that the School Board is being possessive. There was discussion of the County leasing the property. Mr. Barrineau stated that the School Board is willing to work with the County regarding leasing the building; it just wants to be able to give proper notice to turn the building back into a school. Mr. Barrineau noted that the School Board has not had these types of problems in the past with other buildings it has leased to the County. Supervisor Elswick responded that the citizens do not want the School Board to kick them out of the building. Supervisor Flora stated that the school is the only public property on the mountain other than the fire station. He concurred that it be used to serve the public. Whether it reopens as a school is a big question. He cautioned the School Board to maintain ownership of the school for the right reasons. IN RE: ADJOURNMENT Chairman Church adjourned the Board of Supervisors at 6:27 p.m. to the special meeting scheduled on March 16, 2010, at 6:00 p.m. at the Roanoke County Administration Center. 98 March 11, 2010 Submitted by: Approved by: ~~ '~ Becky R. eador Jose h B. "Butch" Church Clerk to the Board Chairman 1 i