BEDFORD COUNTY BOARD OF SUPERVISORS AND THE ...

MINUTESJOINT MEETING BETWEEN THEBEDFORD COUNTY BOARD OF SUPERVISORSAND THE BEDFORD COUNTY SCHOOL BOARDCENTRAL VIRGINIA COMMUNITY COLLEGE, BEDFORD CAMPUSDECEMBER 4, 20127:00 P.M. JOINT MEETING - BOARD OF SUPERVISORS AND SCHOOL BOARD1. Welcomea. Pledge of Allegianceb. Moment of Silencec. Approval of Agenda2. 2013-2014 Budget Planninga. Budget Calendarb. Revenue/Expendituresc. Bedford City – Town Reversion.3. Othera. 2011-2012 Carryover fundsb. Long Range Facility Plan/CIPc. Potential curfew ordinanceBoard of Supervisors:Steve Arrington, Chairman – District 5; John Sharp, Vice-Chairman, District 4; Bill Thomasson, District1; Curry Martin, District 2; Annie Pollard, District 6; Tammy Parker, District 7Absent: Roger Cheek, District 3----------Draft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 1 of 7

School Board:Gary Hostutler, Chairman – District 4; Julie Bennington, Vice-Chairman – District 5; Richard Downey –District 1; Jason Johnson – District 2; John Hicks, Jr. – District 3; Kelly Harmony – District 6; KevinWillis – District 7 and Mickey VanDerwerker – City----------School Staff Present:Doug R. Schuch, E. A. Hoisington, R. L. Edwards, C. C. Whitehurst, T. L. Parker, S. L. Ratliff,Randy K. Hagler, S. S. Staton, F. M. Duis, M. S. Blankenship and Karen S. Foutz, Clerk----------Staff Present:Frank Rogers, Carl Boggess, Susan Crawford and Brigitte Petersen(1) Welcomea. Chairmen Arrington and Hostutler led the Pledge of Allegiance.b. Chairman Arrington called for a moment of silence.c. Chairman Arrington and Chairman Hostutler called for motions from their respective Boardsto approve the agenda.Supervisor Pollard made a motion to approve the agenda as presented; motion passedunanimously by acclamation.Mrs. VanDerwerker made a motion to approve the agenda as presented, which wasseconded by Ms. Bennington; motion passed unanimously by acclamation.----------(2) 2013-2014 FY Budget Planning(2a) Mr. Hostutler stated that the proposed dates on the School Board’s Budget Calendar for 2013could change as the state adopts its budget, but it was the School Board’s decision to share the calendarnow in order to be aligned with the Supervisor’s budget adoption schedule. Supervisor Pollard stated thatshe was concerned that the Supervisors will receive the School Board’s adopted budget on March 20,while they must authorize the ads for the tax rate on March 21 st . Chairman Hostutler said that the March20 th date could be adjusted. Dr. Schuch stated that they are hoping the actual state funding figures will beknown by late February.Chairman Arrington received consensus from the Supervisors that they would work within thedates of the School Board’s budget calendar unless it becomes problematic.------------Draft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 2 of 7

(2b) Mr. Hostutler stated that, due to the upcoming reversion, the Schools will have additional utilityand custodial expenses, while funding from the city will be eliminated. Frank Roger, Interim CountyAdministrator, distributed a handout with questions and challenges that the reversion will create in theCounty and School’s revenue and expenditures:REVENUESIn early 2013 county staff will present the Board of Supervisors with county revenueprojections for the coming fiscal year. This enables us to have six months of current data toinform our projections.In advance of those projections, it will be helpful for the Board to provide policy direction asto how you would like the draft budget documents prepared. Specifically staff would lookfor direction on the following points:o What is the Board’s philosophy as to County funding for education in the comingbudget?o The adopted Fiscal Year 2013 budget included $2.5 million in “one-time” funding forschools. These funds were taken from the County’s available fund balance. What isthe Board’s intent as to these funds moving forward?o The City funded a contribution to the school division. Does the County anticipateoffsetting that contribution with Town tax base revenues in the coming budget?o The County and School Division anticipate receipt of additional aid for education as aresult of reversion. Does the Board have any expectations as to the use of thosefunds?EXPENDITURESThere are certain known impacts on the expenditure side of the schools’ budget for FiscalYear 2014. These include, but are not limited to:o Loss of federal jobs (stimulus) fundingo Increased costs associated with VRSo Additional costs associated with the maintenance and custodial needs of facilitiespreviously maintained by the City (Bedford Elementary and Bedford Middle)QUESTIONS THAT REMAINWhat, if any, impact will sequestration have on federal funding?How will the reversion to Town status affect basic aid for education outside of the additionalfunds based upon the lower LCI?What will local revenues look like?What will costs associated with health care coverage do?Draft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 3 of 7

Board of Supervisors does have an obligation to make the funds up that will be lost as revenue from theCity in order to educate those children. The County is also anticipating that a portion of the state fundingwill be used for debt service on a new middle school, since the School Board has established that as anumber one capital project.Chairman Hostutler commented that there are new members on both the School Board and theBoard of Supervisors. He said that, years ago, no one could have predicted that the state would cut $11million from the school budget or that employees would go years without an increase in pay. The $6.5million from the State would give the School Board the funds to repair many things, in addition to aportion being set aside for operations.Supervisor Pollard stated that the Boards need to be careful, since the State will review thefunding every two years. She said that there was no guarantee that the funds will continue to be given forfifteen years.Chairman Arrington said he would like to give the School Board direction this evening. He saidthat assumptions have been made that a new middle school will cost approximately $28 to $30 million,increasing debt service by an estimated $2.3 million. He stated that it is also assumed that approximately$6 million will be coming from the state through the local composite index (referred to as the LCI), andthere had previously been discussion to pay off the middle school in fifteen years.Vice-Chairman Sharp referenced bullet #3, “The City funded a contribution to the schooldivision. Does the County anticipate offsetting that contribution with Town tax base revenues in thecoming budget?” He asked if the county anticipates offsetting the lost revenue from the City to theSchool Board through the tax base, with the Board of Supervisors consenting that the county would makeup the lost revenue from the city to the School Board.Chairman Hostutler then turned the conversation to the School Board’s Capital Improvement Plan(CIP), projected through 2030. He stated that there were several small projects that have been included inthe CIP because there is no money anywhere else in the budget to pay for them, and that these projectscould be completed by adding them to the debt service along with the new middle school. He reiteratedthat the additional $6 million in state aid could be split between debt service and school operations, andcommented that the CIP could change based upon school enrollment, facility needs, etc., especially in thelater years. He said he felt more comfortable with the initial five years of the plan, and that the SchoolBoard will review the CIP annually.Vice-Chairman Sharp expressed his concern that the $6 million would end at the fifteen-yearmark, which would be a tremendous amount of revenue that will no longer be available. He said that thedebt service should drop as well, as he did not want a future board to have to raise taxes. ChairmanArrington agreed with Vice-Chairman Sharp, and asked the School Board to create a long-range plan toDraft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 5 of 7

put aside half-a- million each year. He said this would generate $7.5 million, and should also includeanticipated increases in the areas of medical insurance and a long-range retirement plan, etc. Hecommented that it’s a question of how to best use dollars to fund these things; raising taxes would be alast resort and he doesn’t consider doing so an answer to the problem.Chairman Hostutler said that he would like to balance facility and classroom needs. ChairmanArrington responded that the supervisors want to work with, not against, the School Board.Vice-Chairman Sharp said the Boards must plan for the money that will go away in fifteen yearsso at that time everyone isn’t scrambling when the funding has ended. The debt service needs to dropsignificantly so the county doesn’t have to raise taxes or cut into the schools’ operations.Chairman Hostutler moved on to the carryover funds from the 2011-2012 fiscal year, reportingthat the school division would have an estimated $655,000, or less than 1% of the total budget left over.While in the past these funds gone back into the Maintenance Fund, it is recommended that this year theyoffer the employees a one-time bonus in appreciation for the years they have gone without a salaryincrease. He recommended $400 to full-time employees and $200 to part-time employees. ChairmanHostutler said the School Board has not voted on the carry-over funds, but will consider the bonuses inJanuary.Chairman Arrington inquired whether the carry-over funds were from utility savings. RandyHagler, Chief Financial Officer for the Schools, responded that approximately $250,000 came from theelectrical and fuel lines; the rest was from a savings on salaries and revenue from an accelerated E-Ratereimbursement at the end of the year. Chairman Arrington asked Mr. Hagler if he anticipated any areas ofsavings that will impact the budget; Mr. Hagler replied that there would be technical adjustments thatwould be shown as a savings, but commented that there would also be unavoidable increases. Line itemsthat are coming in substantially under budget would be adjusted downward. Mr. Downey stated that ifthe School Board were to approve a one-time bonus for school employees, they would not want it tojeopardize a wage increase later in the year.Mr. Hostutler then turned the meeting over to Dr. Schuch to discuss a potential curfew ordinance.Dr. Schuch reminded the Supervisors of the recent tragic looses of several students in traffic accidents,which had occurred late in the evening. The School Board thinks it’s worth investigating whetherenacting a curfew ordinance for Bedford County, such as the ordinance already on the books in the Cityof Bedford, has may help prevent future accidents. County Attorney Carl Boggess reviewed the City’scurfew ordinance. He said that the city curfew was adopted in 1984 and prohibited minors under the ageof 18 to be on the city streets, unless accompanied by a parent or guardian, between the hours of 10:00p.m. and 5:00 a.m.Draft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 6 of 7

Chairman Hostutler pointed out that this could potentially be another tool for parents to use tokeeping a closer eye on their children. Dr. Schuch stated that the School Board did not have arecommendation for the Supervisors, but wanted to take the time this evening to bring the suggestionforward. Chairman Arrington said the Board would discuss this suggestion with Sheriff Mike Brown (asto its feasibility and enforceability) and would get back with the School Board with their findings.Mr. Downey announced that a forum would be held at Staunton River High School in theauditorium on December 17, 2012 at 7:00 p.m. to discuss ways of preventing traffic accidents.Representatives from the Virginia Tech Drivers Research Program, Yovaso, BedCo Cares, the Sheriff’sDepartment, and other community leaders will be in attendance. He encouraged everyone to show theirsupport and attend if possible.Chairman Arrington thanked the School Board for the opportunity to meet together and get anearly start on budget discussions. He said the Board of Supervisors will take the School Board’s requestsinto consideration and wished everyone a Merry Christmas and Happy Holidays.Chairman Hostutler reiterated that the School Boards had had many assumptions to make, andrecommendations to bring to the Board of Supervisors. He said that this meeting served to outline theproposed reversion money, as well as recognize expenses that will be added to the School Board’s budget.The Chairmen then called for motions to adjourn.Mrs. VanDerwerker of the School Board moved to adjourn the meeting, with Mr. Willisseconding the motion to the call of the chairman; the motion passed by unanimous acclamation.Supervisor Thomasson made a motion to adjourn the meeting; the motion passed byunanimous acclamation.The meeting adjourned at 8:25 P.M.__________________________ChairmanDraft - Board of Supervisor’s Meeting MinutesDecember 4 th , 2012Page 7 of 7