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HomeMy WebLinkAbout4/3/2012 - RegularApril 3, 2012 215 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 Administration Center, this being a special meeting for the purpose of holding work sessions to discuss fiscal year 2012 -2013 budget development and a continuation of the discussion concerning the resolution authorizing the lease financing of certain fire and rescue vehicles. Video 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. Audio recordings of the work sessions are not available due to technical difficulties with the recorder. IN RE: CALL TO ORDER taken. Chairman Flora called the meeting to order at 5:00 p.m. The roll call was MEMBERS PRESENT: Chairman Richard C. Flora; Supervisors Michael W. Altizer, Joseph B. "Butch" Church, Eddie "Ed" Elswick and Charlotte A. Moore MEMBERS ABSENT: None STAFF PRESENT: B. Clayton Goodman III, County Administrator; Diane D. Hyatt, Assistant County Administrator; Daniel R. O'Donnell, Assistant County Administrator; Paul M. Mahoney, County Attorney; Teresa H. Hall, Director of Public Information and Deborah C. Jacks, Clerk to the Board IN RE: WORK SESSIONS 1. Work session to discuss fiscal year 2012 -2013 budget development (Brent Robertson, Director of Management and Budget) a. General update b. Review of contributions to outside agencies c. General Services reductions (Anne -Marie Green, Director of General Services) 216 April 3, 2012 The work session was held from 5:01 p.m. until 5:52 p.m. In attendance for this work session were B. Clayton Goodman III, County Administrator; Diane D. Hyatt, Assistant County Administrator; W. Brent Robertson, Director of Management and Budget; Anne Marie Green, Director of General Services. Mr. Goodman advised staff was still waiting on the General Assembly and the conferees are currently working on the budget and hope to have something by the end of the week. Mr. Robertson advised all department budgets had been done and were in a holding pattern waiting on the final outcome from the General Assembly. Diane Hyatt advised the schools have forwarded preliminary budgets, but did not address the five percent (5 %) employee contribution for the Virginia Retirement System. She advised they would resend once the General Assembly is done. Mr. Goodman then advised of the following new proposed budget schedule: April 24, 2012, work session to present to the Board, May 22, 2012, public hearing and first reading; June 12, 2012, second reading and adoption. It was the consensus of the Board to change the schedule as outlined. Mr. Robertson reviewed the contributions to outside agencies; stating there were three open issues staff would need to do additional research. First was the Greenway Commission, which Roanoke County pays Liz Belcher's salary, benefits and any operating expenses. Supervisor Elswick requested a copy of the Parks and Recreation survey as it related to greenways. Second was the Roanoke Regional Partnership, which all other localities are paying on a per capita basis and recommends Roanoke County doing the same. Third, the Convention and Visitors Bureau (CVB) with Mr. Goodman recommending $39,000 increase over a three -year period. It was the consensus of the Board that Mr. Goodman advise the CVB that the additional funds are contingent upon results. Mr. Goodman advised he is the County representative on the CVB Board. Supervisor Church asked that the Board consider increasing the contribution to the Christmas Store. He explained there is no paid staff and everything is done on a volunteer basis. After discussion, it was the consensus of the Board to increase the contribution to $2,200. Ms. Anne Marie Green explained the suggested reductions in General Services. After discussion, it was the consensus of the Board to proceed with the changes to the "freeloaders ", but not to change the services for the condominiums. 2. Work session to discuss Roanoke County participation in the Community College Access Program (CCAP) with Virginia Western Community College (B. Clayton Goodman III, County Administrator) The work session was held from 5:52 p.m. until 6:01 p.m. Mr. Goodman outlined the program and advised there was one more payment due in 2013, but there were no funds for a new program. It was consensus of the Board not to include in the April 3, 2012 217 budget, but would take a look at year -end to see if there were any leftover funds that could be reallocated. 3. Work session to review Roanoke County debt (Rebecca Owens, Director of Finance; Laurie Gearheart, Assistant Director of Finance) The work session was held from 6:01 p.m. until 6:10 p.m. Ms. Owens went through several slides in a PowerPoint presentation. There was no discussion and the only comment was Chairman Flora stated staff may need to look at for longer than five (5) years. 4. Work session to provide an update on the Fire and Rescue System including Station Profiles (Richard E. Burch, Jr., Chief of Fire and Rescue) The work session was held from 6:11 p.m. until 6:44 p.m. Chief Burch went through a PowerPoint presentation entitled Fire and Rescue System Review. Also in attendance was Division Chief Steve Simon. Supervisor Altizer asked Chief Burch for the number of Botetourt calls that were answered for Read Mountain. Supervisor Elswick commented on having lunch with the Cave Spring squad and the comforting nature of the rescue work. Supervisor Altizer stated circumstances have changed in certain areas and would like to sit down with Chief Burch and Mr. Goodman as it related to Read Mountain. 5. Work session on public transportation — County of Roanoke Transportation Program (CORTRAN) (B. Clayton Goodman III, County Administrator; Laurie Gearheart, Assistant Director of Finance; Terrie Cochran, Executive Secretary) Due to time constraints, this work session was postponed until April 10, 2012. Chairman Flora opened the evening session at 7:00 p.m. with all Board members in attendance IN RE: NEW BUSINESS 1. Resolution authorizing the lease financing of certain fire rescue vehicles in an amount not to exceed $1.6 million (Richard E. Burch, Jr., Chief of Fire and Rescue; Rebecca Owens, Director of Finance) 218 April 3, 2012 Ms. Owens reviewed the three financing options for the Board. She explained this was postponed from the March 27, 2012, meeting to provide additional time for the Board the review all options. Supervisor Church asked Mr. Goodman to explain the staff's recommendation. Mr. Goodman responded that one concern is the levels of the reserves. The staff recommendation to go with lease financing would allow the County to maintain its reserves at the present level and pay off the purchase of these vehicles over six years with funds that have already been appropriated. Supervisor Moore inquired how much will be put back into this minor capital reserve this year; an estimate is acceptable with Mr. Goodman responding on a preliminary basis approximately $1 million at June 30 Chairman Flora inquired as to the purpose of major and minor capital with Mr. Goodman responding the major fund is for big ticket items and typically, minor capital has been for the purchase of land, architectural engineering design work and actual construction. Chairman Flora reiterated so it is for capital projects with Mr. Goodman responding affirmatively. Supervisor Altizer remarked in looking at Attachment C and reviewing the reserves and expenditures the County has had, has anything negatively impacted our bond rating because of the history of what has been done to minor capital in the last four (4) years. Mr. Goodman responded to the best of his knowledge, he was not aware of any negative impact. Supervisor Altizer reiterated so in 2007/2008 $5 million was taken out for radios and the balance was taken down to $1.5 million. The following year, only $81,000 was extracted. In 2009/2010, $2.3 million was removed and put back in. In 2010/2011, $2.2 million was added and $863,000 was withdrawn leaving a balance of $2.1 million. Supervisor Altizer remarked the County had actually received an upgrade in its bond rating last year. Accordingly, he does not feel if the Board proceeds with borrowing the funds from the minor capital it will have an impact on the bond rating based on the history just mentioned. He indicated this year an additional $1.2 was put into minor capital and $57,000 was deducted. He indicated if $1.6 million were taken out of the account it would leave the fund with a balance of $1.6 million and at year end an estimated $1.6 will be put in. Mr. Goodman stated staff was looking at all reserves as a whole; and their concern is they feel the County should hold onto its cash as it goes through a still uncertain future and would allow staff to address any concerns that might arise. Supervisor Moore stated she thought it would be a good business decision to borrow this from minor capital because all the other expenses for one thing that we have spent the money on over the years has not been a loan and we have not replenished that. If the funds are taken from the minor capital account, it will save the County on interest and perhaps we should discuss no interest. This is taxpayer money. We could refurbish this account every year. The Fire Department will be paying back $300,000, which is $17,000 or so more each payment that the County will make versus April 3, 2012 219 paying SunTrust Bank. She reiterated she thinks it would be a good business decision to go this route. Supervisor Elswick stated based on staff's recommendation and the practices of the Board in the past, we need to keep an adequate amount in reserve account and in anticipation of when times becoming worse than what they already are. We keep those reserves so that we can obtain a good bond rating and with a good bond rating the County would be able to borrow at a lower interest rate. Today's interest rates are around two percent (2 %) and that is because we have had adequate reserves, which shows the financing people that we are in good financial standing. He reiterated he likes the idea of maintaining an adequate reserve; not more than what we need, but an adequate one. Supervisor Church stated the Board depends on the financial folks and Ms. Hyatt is a CPA. He feels they could be taking a calculated chance and is not sure what is around the corner and stated he thinks it would be wise for the Board to take the advice and advantage of our financial staff who have kept the County afloat and in good condition for many years. He reiterated the capital may be needed down the road. He stated he fully supports the staff recommendation. Supervisor Altizer stated he thinks whatever is decided today and every Board member believes what they believe is right and none of us are able to look into a crystal ball. We certainly respect the staff and the majority of the time, the Board goes with their recommendation and there are a few times when we do not. Based on what he has seen over the last four or five years, with what has been pulled out and what has been maintained, he has seen the bond ratings grow. Based on what was discussed in work session, and if we do elect to pay for this out of minor capital, we do not need to be paying ourselves interest; that is just cost shifting. It is an accounting maneuver and he does not know that we ought to charge ourselves interest and if you do it like that there is truly about $97,000 in savings. He stated he thinks when the year -end adjustments are made he feels that a million dollars will be going back into this account and if Fire and Rescue pays us $300,000, it is a net $1.3 million to $1.6 million and who knows maybe it will be even better than a million dollars, maybe even $1.2 million to $1,250,000. He stated he thinks the Board shows a history of being pretty prudent in the things we have taken out of this account and they were deserving things. For example the $5 million for the digital radio. If we save $97,000, then we save $97,000 and when the Board sits in work session and talks about getting $33,000 here and $43,000 there, he thinks $97,000 is that much money so he would support taking the funds out of the minor capital account. Mr. Goodman stated the reason the interest is charged is due to the funds not being able to earn interest. Chairman Flora stated this County, at least for the last ten (10) plus years has taken a very conservative approach to finance, which is the reason that we can do what we do. It was that planning that occurred even before the current members were on the Board. In 2015, the County will be self- funding our own projects and will not be 220 April 3, 2012 taking any money out of the general fund other than what we have already accumulated. We have had a very prudent financial policy. Furthermore, he stated he does not have a problem with SunTrust Bank, but does have a problem with using $105,000 of our money when we do not have to. Chairman Flora commented he spent eight years in banking so he really knows how it works and maybe that is why he is so conservative when it comes to the financial end. He further commented to him, if you have the money available and can actually fund a project without going out and borrowing the money, he thinks that is a great thing and it saves the taxpayers $105,000. He further stated he agreed with Mr. Goodman in adding the interest on because it makes the whole playing field more even, plus we reimburse ourselves for what would have been lost. Hopefully, in the next six years the interest rates will ease back up. He stated it is a good, ultraconservative approach to be able to use your own money to finance your own projects and pay yourself back rather than going out and borrowing it outside. RESOLUTION 040312 -1 AUTHORIZING THE BORROWING OF $1,587,023 FROM THE MINOR CAPITAL FUND BY THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA TO FINANCE THE ACQUISITION OF CERTAIN FIRE VEHICLES WHEREAS, the Board of Supervisors (the "Board ") of the County of Roanoke, Virginia (the "County ") has determined that it is necessary and desirable to acquire certain equipment for the County, including without limitation certain fire rescue vehicles (the "Equipment "), and to provide for an internal financing for the Equipment through a loan from the Minor County Capital Fund in an amount not to exceed $1,587,023, and WHEREAS, the Board of Supervisors (the "Board ") of Roanoke County, Virginia, (the "County ") has determined that it is necessary and expedient to borrow an amount not to exceed $1,587,023 from the Minor Capital Fund to finance the acquisition of certain fire vehicles, and WHEREAS, On July 26, 2011, the Board of Supervisors adopted a reimbursement resolution that declared its intention under Treasury Regulations Section 1.150 -2 to reimburse itself from the proceeds of a finance for certain costs of the purchase of three fire vehicles. NOW THEREFORE, BE IT RESOLVED, BY THE BOARD OF SUPERVISORS OF ROANOKE COUNTY, VIRGINIA, as follows: 1. The Board hereby determines that it is advisable to loan monies available in the County Minor Capital Fund to County Fire and Rescue Department to purchase fire vehicles (the "Loan "). The Loan shall be made on the terms set forth in this resolution. The County Minor Capital shall lend an aggregate principal amount not to exceed $1,587,023. There will be a net interest charge of one point seven nine percent (1.79 %) annually for this loan. April 3, 2012 22 2. The Fire and Rescue Department will repay the Minor Capital Fund with six (6) annual payments. The Fire and Rescue Department will repay the Minor Capital Fund $300,000 in beginning in July 2012 and continuing with an installment of $300,000 through July 2016 and a final payment in July 2017. The loan from the County Minor Capital Fund will be fully paid and satisfied in July 2017. 3. The Fire and Rescue Department may prepay the Loan at any time without penalty. 4. This resolution shall take effect immediately upon its adoption. On motion of Supervisor Moore to adopt the resolution, and carried by the following recorded vote: AYES: Supervisors Moore, Altizer, Flora NAYS: Supervisors Church, Elswick IN RE: REPORTS AND INQUIRIES OF BOARD MEMBERS Supervisor Church asked Mr. Mahoney and Mr. Goodman to come forward. He advised he had received several telephone calls and emails last night regarding target practice shooting near the Glenvar School area and have forwarded the emails to Mr. Goodman and Mr. Mahoney. They involved citizens on Daughtery Road and Windsor Hills and would ask that Mr. Goodman and Mr. Mahoney to try to find out the details. He stated he thinks the police were called and they determined nothing was done illegal. One of the ladies called him back today said she thought there was an error in the distance as she thought the one hundred (100) yard requirement by State Code could come into play with either a road and /or the school. He asked that Mr. Mahoney and Mr. Goodman follow up on this issue. Supervisor Elswick inquired if at some point the Board is going to have a review of take -home vehicles and his only other comment is "Go Big Blue ". Chairman Flora stated he has something for staff to look into. He advised that Delegate Greg Habeeb had advised two Board Members of another county that every jurisdiction in his district has misread the Virginia Retirement System (VRS) change that was made. He advised Mr. Habeeb had stated there is no additional cost to localities and there is no loss to the employees and everyone has just miscalculated; they do not know how to do the math. He asked that someone please check with Mr. Habeeb's office and obtain a clarification on that because that could really change the way jurisdictions are doing their budgets this year if there is no cost to the locality or no loss in employees' payment. 222 April 3, 2012 IN RE: ADJOURNMENT Chairman Flora adjourned the meeting at 7:32 p.m. Submitted by: Approved by: Deborah C. Ja6s Clerk to the Board Richard C. Flora Chairman 1 1