Category Archives: budget

Greene Supervisors Approve Capital Improvement Plan

By. Brent Wilson, Field Officer

The Greene County Planning Commission had recommended approval of the county’s Capital Improvement Plan (CIP) to the Board of Supervisors back in December.   At the February 14th meeting the BOS held a public hearing to consider adopting the CIP.

Planning Director Bart Svoboda presented the CIP and, while it has taken time to get to this point, he stated that the CIP will provide a  good budgeting tool for the Supervisors. Two of the largest projects for the county are the water impoundment system  and the school expansion projects.

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The CIP process has been refined to delete the maintenance items and set a threshold for inclusion at buildings of $20,000 and $5,000 for equipment items. Svoboda continued that the CIP will help the Board be forward looking as the plan goes out five years at a time.

Commissioner Bill Martin (Stanardsville) hopes to make the document part of the budget process in the next budget period. Svoboda indicated that the county may not have enough funds to do all the projects in the plan so that prioritizing is critical. The next step to be done is a facilities assessment study to determine what needs to be done in what order. And then to sort based on safety and legal requirements as being the most important.

Supervisor Dale Herring (At-Large) agreed that the goal of the Board should be to conduct a facilities assessment and incorporate that into the CIP. Supervisor Jim Frydl (Midway) thanked Jay Willer (Chairman of the Greene County Planning Commission) and those that helped him to get the plan to this point. Frydl stated that “this is a positive step that needs to go further”.

Chairperson Michelle Flynn (Ruckersville) agreed that the Board needs to be forward looking and that the Capital Improvement Plan will help them do just that and will allow them to be proactive instead of reactive. The CIP was unanimously approved by the Board of Supervisors.

Unfortunately the delay of the approval of the CIP until after the budget data has been received back from the county’s departments has made the current Capital Improvement Plan useless for the budget cycle that is currently underway.

The CIP needs to lead the process so that it can be used to guide the Supervisors to include or exclude projects in the new budget cycle and incorporate the cost of the projects in their budget. Hopefully the Board of Supervisors will start the cycle of the next CIP before the 2019 budget process begins. Otherwise it is just a wish list on a spreadsheet.

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

Albemarle Passes The Bucks ($1.4 Million) To Unelected CACs

By Neil Williamson, President

piggy-bankIn Wednesday’s (2/1) meeting, without so much as a formal public hearing, Albemarle County’s Board of Supervisors plans to send a $1.4 million dollar piggy bank to the unelected Citizen Advisory Councils so that the elected officials don’t have to make the hard budget choices.

Nothing they are doing is illegal, it’s just not right.  Please let me explain.

Albemarle’s annual Capital Improvement Plan (CIP) Budget is laborious and involves significant number of staff hours to determine the staff priority for Capital projects such as vehicles, buildings and renovations.

Over the last 13 years the Free Enterprise Forum has been impressed with the level of detail and careful consideration the CIP committee (including citizen representation and 2 elected BOS members) have put into these discussions.  There have been times when one geographic portion of the development areas had CIP projects that garnered higher scores by the committee and these were funded rather than less urgent projects.

The new “Neighborhood Funding Initiative” would siphon off $1.4 million of the annual CIP budget and allocate it geographically and by population.  The staff has proposed a formula to accomplish this task:

17-155 - Proposed Allocation of Funding - View

Staff has simply developed this Board driven concept.  In fact, the staff report hints at a better manner to utilize citizen involvement along with the elected officials within the current CIP process.

staff has conducted best practices research which is summarized as Attachment A that revealed that the majority of these types of community focused improvement funding programs fall into three basic categories:  neighborhood matching grants; formal citizen involvement in capital planning; and citizen-driven Capital Improvement Programs. After hearing the Board’s discussion, staff thinks that the third category may most clearly align with the Board’s preferences, so the program has been designed along those lines.  If the Board would like this program to be more closely incorporated in the already existing CIP review, evaluation and ranking process that would be another viable approach.

The Free Enterprise Forum has long been a critic of the unelected CACs.

In 2009 we wrote:

The Free Enterprise Forum believes citizen groups (including us) should have the ability to be active participants in the workings of local government.  That being said, we are increasingly concerned that the leadership function of some Boards and Commissions may be inappropriately delegating to community organizations.

With the proposed policy change, beyond effective regulatory veto power over development projects that would advance the community vetted comprehensive plan, Albemarle now seems poised to give these unelected “mission creeping” Citizen Advisory Councils the county purse strings as well.

As the Supervisors continue to delegate, I wonder what will be left for them to do … besides run for reelection.

As we said in 2009:

In the end, elected leaders must lead, not delegate, if citizens don’t like the direction they should replace the leaders.

The more things change, the more they stay the same.  Stay tuned.

Respectfully Submitted,

 

Neil Williamson

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Neil Williamson is the President of The Free Enterprise Forum, a public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna and Nelson County.  For more information visit the website www.freeenterpriseforum.org

Greene Supervisors and School Board Kick Off Budget Season

By. Brent Wilson, Field Officer

Prior to the second January Board of Supervisors meeting, the Greene County Board of Supervisors and the School Board held a workshop to begin the budget process. Leah Paladino, School Board Chair, led the discussion and reviewed the schools needs and priorities.

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Leah Paladino

Specifically the next school budget is looking several major issues – 1) a Virginia Retirement System (VRS) increase, 2) health insurance increase and 3) a one-time bonus – depending on Richmond’s decision. The impact of the increased local cost of the VRS is being estimated at $326,000 or a 10% increase.

Superintendent Andrea Whitmarsh’s understanding is that this increase statewide would fully fund the VRS system per what state auditors estimate is required. Health insurance is estimated to increase by 15% or $357,000 and the impact of the potential one-time bonus  is estimated at $291,000.

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At the same time, this reporter has been in communication with Delegate Rob Bell asking him about fully funding the VRS fund. His reply on January 18th was “I continue to supports efforts to achieve full funding with legislation……one of the challenges is that the budget can supercede other bills, which makes it harder to create long-term policy”. I replied asking would he sponsor a bill to prohibit “borrowing” VRS funds for anything other than retirement and when will the VRS fund be fully funded per the states independent auditors. I am still awaiting a response to that email.

clip_image005Supervisor Jim Frydl (Midway), the School Board liaison, commented that the increased VRS cost and the bonus are examples of state mandated costs being passed to the counties while the state maintains they are balancing the state The three items total nearly $1 million before addressing any operational needs – such as new text books, additional teachers and aides, updated computer equipment, etc.

As the school board pointed out, the school staffing in 2009 was 511 and over the next five years the staffing was reduced by 41 to 470 or an 8% reduction while over the same period the number of students rose from 2,852 to 3,099 or 9%. The combination of more students with fewer staff caused the ratio of students vs. staff to increase by 18% from 2009 to 2014.

Whitmarsh’s comment on the dramatic change was that reductions in staffing have been made by 2014 and since then the staff have been in sync with the increase in student population.

County Administrator John Barkley asked Whitmarsh if salaries in Greene were competitive?

Superintendent Whitmarsh indicated that there is an ongoing issue in regards to losing teachers with several years experience to Charlottesville and Albemarle County due to both wages and benefits lagging.clip_image007

Kristie Spenser, Director of Business and Facilities, addressed the health insurance increase and attributed it to four major claims which is causing the loss ratio in Greene to be higher than normal as opposed to last year when claims were below the norm.

Supervisor Bill Martin (Stanardsville) asked Whitmarsh how the morale of the staff in the schools is. Whitmarsh felt that in general it is improving, you always have some happy and some unhappy, but raises have been given recently and Paladino felt that teachers have been empowered, encouraged to innovate and moral is increasing.

Whitmarsh thanked the Board of Supervisors for the meeting and it will help them at their budget work session the next night – Wednesday, January 25th. She asked that if the Supervisors needed any further information to just ask and they will be glad to provide any data needed to help them understand the school’s needs. Likewise Martin offered to meet with the School Board if they felt it would help the budget process.

At the regular meeting of the Board of Supervisors, Michelle Flynn was elected to the Chair for 2017 and Dale Herring was elected to the Vice Chair position.

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

Fluvanna Goes Green & Saves Green

By. Bryan Rothamel, Field Officer

Energy-Conservation-dollar-sign photo credit xconomyFluvanna’s Board of Supervisors unanimously passed a resolution to pay for energy upgrades via debt financing.

The annual debt payment of $560,000 is offset by the upgrade savings. Trane, the company providing the upgrades guarantees the county will save over $600,000 annually in operation and maintenance costs.

The most frequent update of facilities will be building envelopes at every county facility. The second is changing lighting at all buildings except the administration building. Other planned upgrades are programmable thermostats.

The highest dollar upgrade is at Central Elementary, a planned $3.4 million upgrade to the central plant and controls.

Also at the January 18 meeting, supervisors made a policy regarding salaries of newly elected constitutional officers. There was no current stated policy but the county was paying any newly elected officer the same as the outgoing officer.

The state mandates a salary minimum but the county often increases the salary and pays the difference. On a 3-2 vote, the supervisors made the policy to be the minimum. Chairperson Mike Sheridan (Columbia District) and vice-chairperson Mozell Booker (Fork Union District) dissented.

The salary of an incoming constitutional officer can still be increased by Board of Supervisors action.

At the next meeting the county administrator Steve Nichols will present his budget proposal as the budget season heats up. The county departmental requests for FY18 were an increase of $2.5 million over the current fiscal year. That does not include the School Board request.

Few things are guaranteed in life. The energy savings might be, but all departments getting their full request in the Nichols budget is definitely not.


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

Photo Credit: Xconomy.com

2016 – A Year of Exits (Executive and Grade Separated)

By. Neil Williamson, President

https://freeenterpriseforum.files.wordpress.com/2015/12/top-ten-list.jpg?w=179&h=161At this time each year, I take time to look in the rearview and see what issues we have covered that have garnered the most attention.  As usual, I am amazed, and thankful, for the large number of people who read and financially support our work.

Here are the Free Enterprise Forum Top Ten 2016 Shaking My Head (SMH) Moments

#10 Is Charlottesville the $17.86 Million Court Jester?

Imagine you are a mayor or a City Manager, if a major employer and economic driver in your city was poised to leave, how would you respond?Image result for Court Jester

Perhaps its just me, but I would likely fight like heck to keep them in the city.  It is much easier to retain a major employer than to attract one.

But what if the employer is actually an arm of a neighboring government, should that matter? …

If Albemarle decides to bring $17.86 million of ‘County’ economic activity back to Albemarle, Charlottesville may end up looking as wise as the Court Jester this Halloween.

 

#9 Bananas and Albemarle’s Outdated Economic Opportunity Map

Imagine being in the banana business — and you have no way to obtain fruit.Image result for Albemarle county development area

That is Albemarle County’s current economic development sales position: “Yes, we have no bananas.”

“If a manufacturer calls interested in locating near a highway, we tell them, ‘We have nothing for you,’. Prospect businesses are looking to move within three to six months if they are not looking to build. We tell them, ‘We have no product ready to go today.’” – Faith McClintic, Albemarle County’s economic development director

#8 Greene Supervisors Approve Overspending FY17 Budget

By. Brent Wilson, Field Officer

In just the second month of the new budget cycle, the Greene County Board of Supervisors discussed clip_image002two issues last night (8/23) that would allow the county to spend nearly $33,000 over the approved FY17 budget.

The first issue that County Administrator John Barkley explained was that several positions are needed to be brought up to market value. He further explained that supplemental funds are being requested to fund the $27,250 for the reclassification of positions. Surplus funds from the FY16 budget will allow the county to be able to fund this request.

#7 C’ville’s Hydraulic Houdini

What would you call it when Charlottesville works to make a primary pillar of an integrated

Trafficit knot  @ Proff Rd             Trafficlymead Town Center             @ Hol                       knotTrafficLakes ...

transportation program disappear?

The Hydraulic Houdini.

Please let me explain.

Those with even decent short term memory can remember the argument over the now defunct Western Bypass and the Route 29 “Solutions”.  Rather than building a limited access bypass around Charlottesville’s congestion (The Free Enterprise Forum supported), Bypass opponents proposed a series of integrated “solutions” would increase the existing roadway capacity.

My friend Jeff Werner of the Piedmont Environmental Council (PEC) even had a nifty PowerPoint Presentation regarding the  congestion

#6 Albemarle’s Executive Exodus x 2

Albemarle Executive Foley Finds Greener Pastures

Thomas FoleyWith rumors flying around Albemarle County (and Social Media) all day, a 4 pm Stafford County announcement made it official; County Executive Tom Foley is leaving Albemarle County to take up the same post in Stafford County.  In the announcement Stafford highlighted Foley’s service and temperament as key qualities they were looking for in their new administrator:

Albemarle is Losing Faith

leavingyourjobAs anticipated as the sun rising in the east, it is with absolutely no surprise that Albemarle County’s first Economic Development Director, Faith McClintic, will be leaving her position later this year.  In her short  18 month tenure, McClintic often found herself at odds with Planning Commissioners, some members of the public, this writer, and some elected officials.  In addition, she found herself without product as she said in August of this year:

“If a manufacturer calls interested in locating near a highway, we tell them, ‘We have nothing for you,’. Prospect businesses are looking to move within three to six months if they are not looking to build. We tell them, ‘We have no product ready to go today.’” – Faith McClintic, Albemarle County’s economic development director

#5 Albemarle and VDOT Create US29+Rio Lemonade

While the Free Enterprise Forum lost the battle against the US29/Rio Grade Separated Interchange (GSI), we have found Albemarle County (and Virginia Department of Transportation (VDOT)) to be working exceedingly well together and significantly positively impacting the challenging business environment due to the roadway construction.

rio gsiIn the most recent Route 29 Solutions Project Delivery Advisory Panel meeting, former VDOT Commissioner and PDAP facilitator Philip Shucet indicated the next phase of the Rio GSI project, where the intersection will close for up to 103 days,  “Isn’t going to be a birthday party”.  This might be the understatement of the year.

#4 SOMEONE’s Shameful Sensationalism

Over the last dozen years, I have read literally hundreds of Albemarle County staff reports.  I tend to find the reports to be professional, concise, factually correct and devoid of generalizations or editorial commentary – until last week when I determined that SOMEONE  improperly and sensationally  used a tragedy to further an advocacy position in what was presented as an impartial staff analysis.

In an attempt to sensationalize the need for closing of Earlysville Road to truck traffic, SOMEONE has stooped so low as to cite a terrible teenage 2002 drunk driving accident as justification to overrule the technical analysis of professional traffic engineers.

#3 ‘Snob Zoning’ Crozet Master Plan in the Works?

Recently, C-ville magazine cover story posed the question, “Can Crozet maintain its small town charm snob-zones-640-for-web-194x300.jpgas its population increases?”

Perhaps the question should be “After millions of dollars of planning and infrastructure spending, should Crozet residents be allowed to stifle population and economic growth by hijacking the master planning process?”

We’ve recently learned such a plan is in the works.  And it is a bad idea….

The reality is the CCAC is opposed to density in the development area that is critical to achieve the philosophical goals of the Comprehensive Plan. The community vetted plan calls for densely populated development areas filled with amenities and services surrounded by less populated rural areas that are supportive of agriculture, forestry and open space.

In her seminal book “Snob Zoning”, Liza Prevost, exposed what happens when NIMBY zealots are able to change plans and regulations

#2 Fluvanna Land Use Fireworks

By. Bryan Rothamel, Field Officer

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“I’m a little surprised board members are so happy to push this under the rug,” said Supervisor Tony O’Brien. . .

O’Brien said there were supervisors who should recuse themselves from the vote because they should know they aren’t compliant with the program.

Eager asked O’Brien to name who he thinks is not compliant as she has done everything to be compliant. He replied he never thought she wasn’t but questioned if Supervisor Don Weaver and chairperson Mike Sheridan (Columbia District) were compliant. He also thought Supervisor Mozell Booker might not be compliant but she was in a different arm of the program.

Sheridan said he asked a cooperative agent if he was in compliance and was told his practices were.

Fred Payne, county attorney, gave a legal opinion that supervisors do not have to recuse themselves just because they participate in the program.

O’Brien also suggested Mike Sheridan should recuse himself because Mel Sheridan is his brother.

Payne’s said Mike Sheridan had no need legally reason to recuse himself. He continued supervisors can always recuse themselves if they feel it is necessary but there was no legal reason to do so.

Weaver, who was quiet for the discussion, called for a vote which ended the discussion.

O’Brien said under his breath after the vote, “Embarrassing.”

#1 $52.5 Million Dollar Indecent Proposal – Albemarle Backs Off Threat to Wedding Industry

Last Tuesday evening, a rare joint meeting of the Albemarle County Planning Commission and Board of Supervisors heard a great deal from both wedding venues and the vendors that support them.  Albemarle staff had prepared a proposed ordinance that, among other things, would limit the ability of wineries, breweries and distilleries to 24 events a year.  In the end the supervisors backed away from the most restrictive portion of the ‘indecent proposal’.

The testimony Tuesday was insightful and passionate.    Wedding Photographer Jen Fariello asked pointedly “Why are weddings being attacked?”  Wedding planner Adam Donovan-Groves [name correction 9:01 6/20 nw] told of one recent wedding whose local fiscal impact exceeded $250,000 musicians, gift packs, invitations, transportation, jewelry, photographer, etc.

Yes, 2016 has been a year of executive exits, speedy construction and threats of overregulation.  Through it all the Free Enterprise Forum continues to blog, tweet (@neilswilliamson) and Facebook about local issues of significant importance.

The year ahead is filled with promise: the promise of a national search for a new Albemarle County Executive, the promise of so called “Solutions” 29 being completed earlier than scheduled (looks like June), the promise of new form based code development in Charlottesville, as well as the promise of elections across all localities.

seats available2016 will also bring us the opportunity and privilege of attending and participating in  many more government meetings where important policy decisions are made and #SeatsAvailable.

Thank you for your support!

 

Happy New Year

Neil Williamson

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.

Service District SuperTax – A Tax By Any Other Name

By. Neil Williamson, President

A-rose-by

Increasingly a number of Central Virginia localities are finding that so called ‘Service Districts’ may provide a new revenue generation mechanism that is less politically repugnant than simple property taxes.  While both options are based on property value, 2017 may be the year of the Service District due to several interesting new taxation possibilities and complexities – please let me explain.

Albemarle County has been rather transparent in their pursuit of new service districts dating as far back to the discussion of a regional transit authority in the early 2000s.  The Free Enterprise Forum was a little surprised to find a suggestion of a service district buried deep in Greene County Administrator John Barkley’s December report:

Initiatives on the Horizon for 2017 – As the new year approaches, staff will continue working to improve the County’s financial reporting capabilities . . .  New initiatives will include addressing blight and the process and legalities associated with blight abatement, consideration of special assessment districts aimed at targeted infrastructure improvements, and conducting a full structural assessment of County facilities. Emphasis Added – nw

In their December 7th “Balanced Two Year Fiscal Plan” discussion the Albemarle Board of Supervisors were provided an illustration of the SuperTax Service Districts:

Eastern Ave – Phase 1 – Rt. 250 to Westhall, including Lickinghole Creek Bridge (Crozet)

This is a conceptual illustration of a specific project in Master Plan/CNA

Assumptions:

Project cost, $10.5 M (2022 $s for assumed year of construction–ends in 20 years)

Service District boundary = Crozet Development Area boundary

project funded with 60% state funds, 40% service district generated funding

Scenario 1 Crozet “Service District” provides 100% of Local Contribution – Annual cost to an increase of 2.8 cents on tax rate beginning in 2022

Scenario 2 County contributes $2M Crozet “Service District” provides remainder of Local Contribution – Annual cost equivalent to an increase of 1.6 cents on tax rate starting in 2022

Illustration: For a house assessed at $350,000, an increase of 2.8 cents on the tax rate would equate to an annual increase of $98.00; a 1.6 cent increase on the tax rate would equate to an annual increase of $56.00.

Logically this specific example raised a number of concerns.  Supervisor Ann Mallek mentioned her belief that this Eastern Connector had been promised to Crozet as a part of the concurrency of infrastructure that was the County’s responsibility under the Neighborhood Model.

This failure was identified as early as 2006 when the neighborhood model was still in it’s infancy.  In an October 4, 2006 staff report, when the Neighborhood Model was still in its infancy and the great recession had not yet hit) staff highlighted the hypocrisy of demanding developer infrastructure improvements while not holding up Albemarle’s end of the bargain:

The Comprehensive Plan has also established what public facilities are necessary at what locations to support development of the Development Areas and has anticipated developer provision of facilities along with VDOT and the County’s CIP.  However, the ability of developer and VDOT funding and the County’s CIP to adequately pay for the cost of public infrastructure to support the Development Areas as the priority areas for new development, public services and public infrastructure has become increasingly difficult.  Because this investment in infrastructure is critical to achieving the quality of life necessary to make Development Areas what is envisioned in the Neighborhood Model, the timing of infrastructure development associated with the rezoning of property within the Development Areas may need further consideration.

The Neighborhood Model has redefined how the Development Areas should develop to provide an active, vibrant urban place that will be perceived as a more desirable place to live than the Rural Areas.  It puts a greater reliance on public facilities and urban services in the Development Areas to achieve the urban form. It continues to anticipate developer provision of facilities along with VDOT and the County’s CIP providing a greater emphasis on concurrency with development.  It emphasizes Master Planning of areas within the Development Areas to best define how the Neighborhood Model can be achieved in these areas. . .

. . .Without the infrastructure needed to address the impact of the up-zoned property, concerns regarding the quality of life in the Development Areas will need to be considered.

Emphasis added-nw

Albemarle staff also presented the concept of using the Service District Supertax to fund sidewalks in the urban areas, small area planning, as well as city/county cooperative ventures.

Interestingly, the staff did not mention one VERY attractive part of Service District SuperTax funding – Local government gets all the money – unlike a tax increase where by Board policy Albemarle splits increased revenue 60%/40% with the schools this would be all local government money.  To get the same level of funding for capital projects the tax increase would need to be 60% higher than the Service District SuperTax.

While we appreciate and understand the demands placed on localities to fund the needed infrastructure, the Free Enterprise Forum believes the Service District SuperTax is a flawed model that may create a balkanization of any locality utilizing it.  Further we have significant issues with an existing Board of Supervisors sitting in 2016 approving a Service District SuperTax that does not go into effect until 2022.  While this may be legal, it does not seem right.

Concurrent funding of infrastructure to support locality’s comprehensive plan is the locality responsibility.  If there is a problem with the Board policy of sharing new revenue with the schools, change that policy rather than creating a new Service District SuperTax to work your way around it.

Respectfully Submitted,

Neil Williamson, President

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Neil Williamson is the President of The Free Enterprise Forum, a public policy organization covering the City of Charlottesville as well as Albemarle, Greene, Fluvanna, Louisa  and Nelson County.  For more information visit the website www.freeenterpriseforum.org

Photo Credit: www.planetofquotes.com

Greene PC Forwards Capital Improvement Plan

By. Brent Wilson, Field Officer

At their December 21st meeting, the Greene County Planning Commission endorsed (4-1) the Capital Improvement Plan (CIP) and sent it on for consideration by the Board of Supervisors for their first January 2017 meeting.

The required Public Hearing was held at the November Planning Commission meeting. Chairman Jay Willer prepared a memo to go with the CIP when it is presented to the Board of Supervisors. This memo stressed the importance of two projects – the water and sewer project and the school expansion project – both have been vetted by outside consulting firms.

Unfortunately, the timing of the passing of the CIP to the Supervisors is too late to benefit the upcoming budget cycle which has already started. The proper timing would be to have completed the CIP in the fall to be able to use the results to help project the expense budget of the county. Hopefully this template can be used at the beginning of the next budget cycle as the document is intended.

clip_image002Willer expressed satisfaction with the format of the CIP and stated that it is a major step going forward. The only change to his current memo would be to stress the priority of the water and sewer project and school project should take priority.

 

With a vote of 4-1 – Commissioner Frank Morris voting no – the Planning Commission endorsed the plan agreed to forward to the Board of Supervisors for their action.

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

Greene Property Reassessment Increases

By. Brent Wilson, Field Officer

mailboxAlong with the holiday cards and sales circulars, Greene County property owners recently received their biennial  Assessment Change for 2017 in the mail; and property values are up.  Some Greene County residents fear this increase in property value will make it easier to increase local revenue (and spending).

Fred Pearson of Pearson Appraisal Service performed the assessment for Greene County.  In County Administrator John Barkley’s December report to the Supervisors, he stated that the average assessment increase is 5%.

During the December 13th meeting, Supervisor Jim Frydl (Midway) commented that the increase in assessed values is indicating an increase in the value of property in Greene County. (The assessment form indicates that the assessed value is at 100% of fair market value). The impact of the tax is dependent on the increased value of your property.  For example, at a property tax rate of $.775 an increase of $10,000 in assessed value would generate an increase of $77.50 in tax.

While the above analysis is accurate, the driver for the assessed value assignment is the marketplace. The fact that your home may have appreciated and you have more equity does not put more cash in your pocket to pay the tax bill. Only if you are selling your home (or in some cases refinancing) do you get the increased equity converted into cash.

Greene County’s reassessment process next moves into an appeal process.  Property owners who disagree with the assessors valuation can make an appointment by calling 434-985-5201 no later than December 20, 2016. The County notice states the appeal appointment will be with the Assessor (interestingly Greene County does not have an Assesor on staff).  When the Free Enterprise Forum inquired we were told that the meeting would be with Fred Pearson.

The small, nonscientific,  sampling of reassessments from the area north and west of Stanardsville showed a property value increase of nearly 10%. So one may naturally assume that some areas in the county are below the 5% average to offset those assessments that are above the overall average.

The appeal process allows the property owner to discuss with Pearson the basis of the new value. Since the assessed values are to represent market values, aggrieved property owners are encouraged to identify sales in the past two years in their neighborhood of houses with comparable features and size of property to see if their assessed value could be argued to be reduced. If after the meeting with Pearson, the property owner still is not satisfied with the value assigned to their property there is a Board of Equalization review that starts February 1, 2017 and goes until February 15, 2017.

If the overall property value in the county increases then the impact would be to increase tax revenue assuming that the tax levy stays the same as the prior year. Virginia State code mandates that before the tax rate is set next year there will be a calculation to determine what the new tax rate would generate the same tax revenue as the prior year. In this case, since the assessed values are increasing the tax rate would likely need to be be lowered to generate an equalization rate.

The supervisors will make the decision of what the tax rate will be which may or may not be all the way down to the equalization rate. What is interesting is that Barkley’s December report also indicated that the county will have a surplus in tax revenue for the recently completed  current fiscal year (FY16).

So what will the county do with the excess tax revenue?

  • Will the Supervisors keep the money and build the Reserve Fund?
  • Will they direct the funds be used toward the water impoundment system and school capital projects?
  • Will the Supervisors take the additional revenue into account when setting the tax rate for the new fiscal year and lower the rate even below the equalization rate?
  • Or a novel approach – will the Supervisors refund the extra tax revenue to the taxpayers and start fresh in the next fiscal year?

Only time will tell but given the size of the projects mentioned above, Greene County (like most Virginia  localities) is looking for sources of revenue wherever they can.

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

There You Grow Again–Albemarle’s Latest Government Expansion

By. Neil Williamson, President

“They think that the cure to big government is to have bigger government… the only effective cure is to reduce the scope of government – get government out of the business.” – Economist Milton Freidman

Freidman’s prescription for big government came to mind as Albemarle County is now hearing from their various departments regarding their increased staffing needs in a series of reports and presentations in preparation for the FY18 Budget cycle.

Tonight (11/2) Community Development is charged with supporting their request for two additional planners and a new administrative position.  It is unfortunate that this departmental analysis does not calculate the unprecedented increased demands of Planning Commissioners and Supervisors that are far beyond the mandated legislative review.  We will say it again the best economic development strategy is to make it easier to develop in the development areas.

Clearly some of the perceived need for additional Community Development staffing is driven by the increased demand for staff at project community meetings, and citizen advisory councils.  Rarely, if ever, are such increased staff costs calculated as a new “engagement initiative” is developed.  The Free Enterprise Forum has long complained about the increased complexity and cost of such regulatory hurdles on private developers, this report exposes the increased cost of regulation on taxpayers in the form of expanded government staffing.

Albemarle’s Community Development FY16 staffing is 66.5 Full Time Employees (FTEs) and a payroll of around $3.75 Million dollars (an average salary+benefit cost of ~$56,000)

CDD funded positionsBut the question before the Supervisors should not be just how many planners, inspectors and managers they have in the department but how efficient and effective are those employees.

 

The report highlights the variable nature of the development review process:

CDD workload is largely a function of the number of applications submitted. Most applications (e.g. site plans, subdivisions, rezonings) have State defined timeframes for acting on the application and some applications (e.g. VSMP) are automatically approved if CDD does not meet that timeframe. Recognizing the County doesn’t control the number of applications and has legal timeframes for acting, the remaining strategies for managing workload are to 1) adjust the staff resources to match the workload and 2) adjust the expectations to match the workload.

While the report is accurate regarding state mandated timelines for review, Albemarle also has a significant pre-application process and does not start the state clock running until they accept the application as complete.  This increases the timeframe, and cost, for a project to gain approval.

In addition, not all development reviews are created equal the site plan for the bank on the corner should be significantly easier to manage than the Stonefield development.  The charts provided regarding rezonings and site plans fail to capture the differentiation between complexity of reviews.

The staff report also contradicts itself regarding the philosophical underpinnings of the department.  In an early section of the report, staff suggests reviewers are in a high pressure position:

Additionally, given the adversarial nature of development review, that additional 10 hours/week adds considerable stress to those workers and decreases the discretionary time to “decompress”. This can accelerate burnout and increase turnover.

Later in the document, staff suggests the exact opposite for some applications:

Finally, these applications are much harder to track in terms of review efforts, as they often call for a collaborative approach, rather than formal submissions, to address comments raised by staff, the public, Planning Commission or Board. While this informality in process improves the overall review quality and provides for better customer service, it makes it makes formally defining a “review” difficult.

So which is it, adversarial or collaborative approach results in a more time consuming review?

Then there is an issue of turnover in the department.  Ignoring significant retirements, over 18% of Community Development’s workforce left the employ of Albemarle County in FY16.

CDD TurnoverThis “brain drain” is distressing and expensive as it is anticipated that it takes a minimum of 6 months to bring a new employee to the level where they may work independently.  This Albemarle exodus might present the best argument for increasing the staffing levels or it might be a canary in the coal mine suggesting the policies and procedures are not supportive of good, efficient planning practices.

As we watch the Albemarle Planning Commission meet on a quarterly basis to discuss “big topics” where they have little to no jurisdiction, the Free Enterprise Forum has to ask “Who is calculating the cost of such a meeting to the taxpayer?

As applicants are routinely requested to defer their state mandated right for a “speedy” hearing to provide the commission or board their requested more detailed information in an additional meeting, it is important to recognize it is not just the applicant that is incurring cost – it is the taxpayer.

While we appreciate the limited metrics provided by Community Development staff, we believe better metrics could be developed for this important review.  In addition, we would welcome a review of the Development Review Task Force recommendations that were finalized and presented to the Supervisors almost a decade ago (2007) but never fully enacted.

Despite our misgivings, we predict Community Development will get the two new planners and one more administrative person to bring their headcount to nearly 70 employees.

Increasing employees, increasing payrolls and ever increasing complexity of regulatory regimens – this, unlike Freidman’s prescription, – will continue to grow government, increase cost and reduce our regions economic development opportunities.

Respectfully Submitted,

Neil Williamson, President


Neil Williamson is president of the Free Enterprise Forum, a privately funded non-profit public policy organization focused on local governments in Central Virginia. For more information visit www.freeenterpriseforum.org.

Photo Credits: Albemarle County

Greene Discusses Schools Expansion

By. Brent Wilson, Field Officer

Growing at over 7% a year, Greene County’s is in the top 10 Virginia localities for population growth.  More people translate into more children going to school.  Superintendent Andrea Whitmarsh and the School Board have been working with the Charlottesville architectural firm of VMDO   to develop a prioritized plan to expand the Greene County schools to meet the demand – including a new elementary school.  Prior to the Supervisors meeting of Tuesday, October 25th the supervisors held a joint work session with the School Board.

VMDO’s Robert Moje and Bruce Powell have helped the school system refine the facilities study  and have prioritized the projects into Short Term, Mid Term and Long Term groups with the Short term/High Priority projects ranging from $16.7-$19.0 million comprised of…

H1A      High School Dining / Kitchen / Media Center

gcps-expansion

S1          Monroe Drive Reconfiguration

S2          William Monroe High School and Nathanial Greene Elem. Parking

S4          Ruckersville Elem. Parking / Circular

M1A     Middle School Dining / Kitchen / Media Center

In addition, Whitmarsh pointed out that there would also be some additional staffing required.

Supervisor Michelle Flynn (Ruckersville) asked VMDO if there were cost efficiencies to do the high school and middle school projects at the same time since they both need some of the same projects.  Moje said that yes there are potential savings but the amount of funds available will decide if similar projects can be combined and the savings realized.

Supervisor Jim Frydl (Midway) brought up the issue of the reduction of debt payments that grow each year as a source of funding for some of the projects.  In FY 2017 there is a reduction of $230M, in FY 2018 the reduction increases to $333M, FY 2019 = $515M and by FY 2020 = $827M which is a cumulative total of $1,905M in four years.  After 10 years the cumulative reduction in debt service is $7,273M and it grows to over $18 million by the FY 2033.

$(000)  
Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024
Per Year $230 $333 $515 $827 $843 $855 $867 $880
Cumulative $230 $563 $1,078 $1,905 $2,748 $3,603 $4,470 $5,350

 

$(000)
Fiscal Year 2025 2026 2027 2028 2029 2030 2031 2032
Per Year $933 $990 $1,002 $1,301 $1,764 $1,764 $1,765 $1,766
Cumulative $6,283 $7,273 $8,275 $9,576 $11,340 $13,104 $14,868 $16,634

 

$(000)
Fiscal Year 2033 2034 2035 2036 2037
Per Year $1,768 $1,766 $1,764 $1,764 $1,764
Cumulative $18,402 $20,167 $21,932 $23,696 $25,460

 

The discussion shifted to the timing of when the Short Term projects could be completed which Moje indicated it would take 9 months to design and approve and about 18 months to build which would be by September, 2019.

The question of timing relative to the next budget cycle was brought up by Whitmarsh and she explained that it is critical that the Short Term projects be included in the next budget cycle in order to keep the project moving forward.  Board of Supervisors Chair, Bill Martin, had concern about needing to know how much additional cost the project would add to the taxpayers of Greene County.  Moje suggested that Short Term projects design phase be started and the actual construction could be decided in early 2018.

Supervisor David Cox (Monroe) requested a complete detail of all of the debt service by year by project which was agreed to be provided to him this week.  Frydl clarified that the School Board doesn’t need the approval of the Supervisors to spend up to their approved budget.  Cox complimented the School Board in presenting the project to the Supervisors which is a change on how these types of projects have gone forward in the past.  Martin reconfirmed that he needs to be able to understand the impact of taxpayers to their tax rate in combination with the cost of other projects, primarily the water impoundment.  Frydl suggested that the School Board go forward with the project similar to the manner the Board of Supervisors is progressing with the water and sewer project.

The Free Enterprise Forum applauds the School Board and Whitmarsh for being being proactive with the Board of Supervisors regarding their projected capital needs.  We also recognize the Board of Supervisors must balance the capital needs of the entire county.  While schools are the largest portion of any localities operating budget, the Board of Supervisors must accumulate all reductions in Debt Service as a source of funding of all projects needed in the county.  This public list of “needs” is accumulated in the Capital Improvement Plan  which is a county wide list and prioritization of capital projects year by year so that the Board of Supervisors can prioritize all of the needs of the county vs. debt service reductions vs. tax increases.

In addition, the Free Enterprise Forum believes it is important that all calculations include the annual contribution of unspent operating expense being rolled into the capital projects fund (projected to be $1.3 million for the schools by the end of this school year).

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