Monthly Archives: August, 2017

Fluvanna Considers Short Term Rentals

By. Bryan Rothamel, Field Officer

If you operate a shImage result for airbnbort-term rental in Fluvanna County, bad news, it is a zoning violation. Good news, the Board of Supervisors wants to make it legal with limited government regulation.

The board was briefed on the item during its August 16 meeting because county staff was alerted to a new ‘bed and breakfast’ in the locality. It was a home listed on Airbnb.

Upon review, staff determined there was no legal way to operate such using the current laws. The supervisors gave overwhelming support to allowing the operation.

Currently if there was a complaint, staff would determine it was a commercial operation (hotel) operating in a residential zoned property. This would be a zoning violation.

Staff proposed making short-term rentals a by-right operation in residentially zoned properties. There would be no special use permit, there would be no need to register.

Still, even that Don Weaver (Cunningham District) was against. He wanted even less government regulation than that. Staff said unfortunately if the board wanted to allow the operations, the only recourse was to add it to the zoning laws.

A zoning ordinance change will have to go through the Planning Commission before it works its way back to the Board of Supervisors for final approval.

Also during the meeting staff briefed the board on approval of a grant for the burn building. The grant will help the county build a practice facility for the volunteer firefighters. The anticipation is the county will have to match up to $300,000 for the building.

One option staff previously discussed was getting donations or using staff man hours to ‘match’ the funds. For example, if a cement company donated the slab the building sits, the value of the cement would be considered part of the county match funding.

The county will soon be able to accept debit and credit cards along with online payments, through a contract with PayGov. The county will install multiple card readers throughout to handle various payment needs.

The lease with Fluvanna Christian Service Society (FCSS) is finalized. FCSS, which operates a food bank, will lease ground space behind Carysbrook Gymnasium. The lease is for $15 a month and FCSS can pay in yearly checks.

FCSS will put moveable sheds on the leased area. FCSS currently operates a shed and a stick-built building behind Social Services building, mere yards from the new location. The move will make it easier to load and service those in need. The county is buying the stick-built building from FCSS once the move is complete.

The supervisors will next meet on Sept. 6 at 4 p.m. There will be a work session scheduled for after. At the Sept. 20 session, supervisors will discuss the Emancipation Monument that will be donated.


https://freeenterpriseforum.files.wordpress.com/2015/10/bryan-rothamel.jpg?w=151&h=151The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

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Greene Supervisors Approve $28.16 Million School Bond

By. Brent Wilson, Field Officer

The Greene County Board of Supervisors took the final step to approve going forward with a general obligation school bond not to exceed $28.16 million at their August 22nd meeting. . Virginia Public School Authority (VPSA) will purchase the bonds by the fall of this year.

The agenda item was presented during a public hearing – but no one showed up to comment. Chairperson Michelle Flynn (Ruckersville) took this to be a favorable commentary on the open process for the past two years leading up to tonight. She also indicated that she has received only positive feedback related to the project. Former Chairperson Bill Martin (Stanardsville) echoed the same sentiment and that the project will be good for the community and the school system.

Supervisor Jim Frydl (Midway) is the Board’s liaison to the schools and has been involved in the process over the past 30 months. He further stated that high schools are the most expensive schools to build and the project to renovate the high school and other schools in the Greene County School System is the most efficient way to provide quality educational facilities. At the same time, the study was a forward looking process with a look toward 20 years into the future.

Finally, Flynn said that the best way she could summarize the process is to quote Supervisor David Cox (Monroe) – “do it once and do it right”.

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Greene County School System Project

The gross cost of the project of $28.16 million will cost nearly $41 million ($1.63 million x 25 years) assuming an interest rate of 3 % over 25 years. The accumulated Capital Fund Balance of $2.814 million represents excess tax revenue that taxpayers have paid in previous years. When Supervisor Dale Herring (At-Large) was asked if these funds should be used to help pay for the project, he indicated that Tracy Morris, Finance Director and Stephanie Deal, Treasurer indicated that these funds should be released over a period of time and not in a lump sum.

This raises the question – why?

Herring also indicated that the project will solicit quotes from multiple vendors and the project may cost less than the architects estimated – $28.16 million.

Logically, spending the $2.814 million at the beginning of the project would reduce the need for new tax revenue. Plus this is tax revenue already collected from taxpayers. One explanation not to spend it all up-front, has been that the unspent capital needs to be held back for unexpected capital requirements. That may be true to some degree, but it seems excessive to some observers.

The other comment in response to spending the $2.814 million excess capital is it would draw down cash too far. This seems to beg the question, how low should the cash balance be allowed to get down to – especially right before personal property taxes are collected in June and December (the lowest points each year).

The county has a Reserve Fund target, which includes cash and all assets which their auditors have recommended. But you can’t write checks against total assets, you have to have cash in the bank. As nationally known financial advisor Dave Ramsey advises – you need 3-6 months of living expenses on hand for emergencies.

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Dave Ramsey, Financial Advisor

Perhaps Greene County could look to live by Dave’s advice.

If the Board is so inclined, they could easily agree on a transparent Cash Reserve Fund calculation so that a clear, well thought out policy can be developed.

Such a policy could provide the data to clearly determine how much cash could be spent to pay for the school project from excess capital funds. The concerns raised by the Treasurer and Finance Director are testament that there needs to be some safeguard – but it should be formalized. The current board may not spend too much but who is to say that a future board may be too aggressive and get the county back on the edge of bankruptcy.

The final question is – who determines if spending is to be made from the excess capital funds that the school system has accumulated. Per Herring, while the funds are designated for school capital funds, it is part of the overall county reserve position.

Currently, the determination of the usage of the excess capital reserve has not been decided. This needs to be clearly defined so that funds can be easily consumed when needed and done in conjunction with a Cash Reserve Policy so that the county doesn’t revert back to where it was several decades ago – nearly bankrupt.

Brent Wilson is the Greene County Field Officer for the Free Enterprise Forum a privately funded public policy organization.  The Free Enterprise Forum Field Officer program is funded by a generous grant from the Charlottesville Area Association of REALTORS® (CAAR) and by readers like you.  To support this important work please donate online at www.freeenterpriseforum.org

Photo Credit: Greene county, Dave Ramsey

Greene PC Recommends Approval of US29 Rezoning

By. Brent Wilson, Field Officer

US29 North (Subject Parcel to the right)

US 29 North (Subject parcel to the right)

One of the larger Ruckersville tracts (16.404 acres) is seeking a rezone from A-1, Agriculture to B-3, Business. The potential buyers of the parcel that lies between two B-3 parcels on the east side of Route 29 just north of the parcel that has several businesses including Early & Powell law firm came to the August Greene County Planning Commission meeting to request the rezoning to expand the potential uses of the property.

Potential purchasers, Darrell & Brandon Payne, along with George Tennyson (the current owner) are looking to rezone the property to allow more business options.

County Planning Director Bart Svoboda reviewed the request with the commission explaining that the parcel has B-3 zoning on either side of the parcel and it sits opposite of Blue Ridge Café and the former Wayne Homes business. The rezoning would make the parcel more marketable as a commercial property and with the stream going down the middle of the property it probably isn’t as suitable for residential development.

Svoboda continued stating that the rezoning is supported by the Comprehensive Plan and that the proposed uses would have no impact on the school system. The applicant representative, engineer Justin Stimp, agreed that the stream going down the middle of the property presents design challenges but he feels that there can be commercial development along Route 29 west of the stream and then possibly storage units to the east of the stream with a roadway following the stream.

Stimp addressed the access to the parcel and felt that a right in / right out heading northbound would be acceptable at the beginning of the project since there is no current crossover. The possibility also exists to tie into Deane Road south of the parcel to have a crossover available to head southbound.

The hearing then was open to the public with one speaker, Matthew Woodson, addressing the commission.  Woodson has several interests in the parcel – he is part owner of the parcel to the south – Piedmont Commons – and he represents the seller of the property seeking rezoning. He definitely supports the rezoning and hopes that having more B-3, business property, will help development along the Route 29 corridor leading into Ruckersville. Commissioner Frank Morris asked about connecting the property requesting rezoning through his property (to connect to Deane Road) and Woodson was agreeable to the interconnectivity.

Planning Commission Chairman Jay Willer asked Svoboda if there would be a need for water connectivity (the line runs on the west side of Route 29, the opposite side of the rezoning). Svoboda indicated that if an office with a restroom was constructed with the storage units (what this plan shows as the first development) then a hook up would be required.

The rezone request was approved 3-0 with Commissioners John McCloskey and Steven Kruskamp absent.  Willer explained to the applicant that the approval of the Planning Commission was a recommendation to the Board of Supervisors and the Supervisors would review the request in the next few months.

Brent Wilson is the Greene County Field Officer for the Free Enterprise Forum a privately funded public policy organization.  The Free Enterprise Forum Field Officer program is funded by a generous grant from the Charlottesville Area Association of REALTORS® (CAAR) and by readers like you.  To support this important work please donate online at www.freeenterpriseforum.org

Photo Credit: Google Street View

The Hindsight Report Asks ‘What If?’

By. Neil Williamson, President

Often the most enlightening questions start with, “What if?”

Working with co-author Derek Bedarf, we looked at developing empirical data to answer the question, “What if Charlottesville’s annexation was successful compared with the results of the negotiated Revenue Sharing Agreement?”

After significant research and deliberation, it was determined that this information was available but not assembled in a manner that made such calculations easy. Utilizing Geographic Information System (GIS) technology for the real estate assessment data and 15 years of Albemarle County budget documents for the other taxes (sales taxes, consumer utility taxes, business taxes, motor vehicle licenses  and prepared food and beverage taxes.  Other taxes excluded from this study, for a variety of reasons, include utility consumption tax, short term rental tax, clerk fees, transient occupancy tax, penalties  interest, and audit revenues), The Free Enterprise Forum calculated the tax revenue generating power of the study area.

The resulting “Hindsight Report” examines the tax generating power of the proposed annexation area as it compares with the revenue sharing payments.

  •  The Hindsight Report indicates that over the study period (2001-2016), Albemarle County received, from the study area, over $277 million in local tax revenue compared with the $212.9 million revenue sharing payments made to the City of Charlottesville (+$64.1 million).

  • Had Charlottesville been successful in the annexation and the revenue sharing agreement not been in place, the City would have received $304.7 million in tax revenue from the study area during the study period compared with $212.9 million in revenue sharing payments from Albemarle County (-$91.8 million).

 

  • During the study period, study area property owners paid $72 million less in real estate taxes by being in Albemarle instead of the City of Charlottesville. This “Non-Annexation” Dividend averaged saved (Albemarle) property owners between $3 million and $4 million annually topping out at $6 million in 2007.

The question the data does not answer is whether the Revenue Sharing Agreement was a good deal for all involved.  This is a subjective question that can only be answered in context.

At the time, the historical record suggests annexation was a very real threat and revenue sharing negotiations were heated.

The historical public record also shows many citizens at the public hearing raising some of the same questions regarding equity and fairness that remain part of the discussion today.

Was it a good deal?

Hopefully this data will help you decide.

The Albemarle County Board of Supervisors is scheduled to discuss the Revenue Sharing agreement during their second August meeting on Wednesday August 9th.

Founded in 2003, The Free Enterprise Forum is a privately funded, public policy organization focused on Central Virginia’s local governments.

The entire Hindsight Report can be accessed at www.freeenterprisefoum.org under the reports tab.

Respectfully Submitted,

Neil Williamson, President

Neil Williamson is the President of The Free Enterprise Forum, a privately funded public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa and  Nelson County.