Tag Archives: board of supervisors

What Albemarle Can Learn From Amazon’s HQ2 Search

By. Neil Williamson, President

This afternoon, in an alphabet soup of a joint meeting Albemarle County’s Economic Development Authority (EDA), Planning Commission (PC), and Board of Supervisors (BOS) discussed Site Readiness from a Site Selectors Prospective in an effort to focus on growing business.

Timmons Group Joe Hines presentation “Are your sites and community prospect ready?” was eye opening to many in the room.  Hines suggested the locality should own or control parcels under consideration and that the locality needs to make infrastructure investment on the parcel to become most attractive in the site selection process.

Assistant County Executive Lee Catlin (in likely her last public presentation prior to retirement) used much of Hines Presentation talking points to present an overview of the Deschutes Brewing competition that Roanoke won.   The discussion was very good and highlighted the areas where Roanoke was better prepared for the opportunity.  (Check out  @Neilswilliamson Twitter feed for more details)

In a seemingly unrelated news event, Business Insider reports on Amazon’s search for a new 2nd North American Headquarters.

The company’s press release lays out a few details of what it’s looking for: metro areas with more than one million people; a “business-friendly” environment; a strong technical workforce; be “urban or suburban locations with the potential to attract and retain strong technical talent,” and “communities that think big and creatively when considering locations and real estate options.”

Ignoring the obvious million people hurdle, how do you think Albemarle, or Charlottesville for that matter stacks up regarding “communities that think big and creatively when considering locations and real estate options”.

Considering Catlin’s presentation,  one portion that was not mentioned was the “community” response to Deschutes.   Over two years ago, I wrote in Da Lessons from Deschutes.

4.  While the Supervisors recognize the economic reality, the public is notnimby1 yet sold on the concept of increased economic development.  This lack of public support is seen by outsiders as “unwelcoming” and is clearly a competitive disadvantage.   As Lisa Provence reported in C-ville regarding the Planning Commission denial of the CPA, some are not convinced that economic development (AKA Growth) is a good thing:

 

Watching the various states and localities compete for the Amazon 2nd Headquarters, I am amazed by the deftness of their marketing and efforts to show community support:

This challenge is actually an opportunity.  Notice Amazon did not say “governments” who think big and creatively.  They are looking for a community that will not only welcome them but allow them to become one with them.  The communities competing for HQ2 are attempting to present their community as complimentary to the creative class.  Don’t think this is only in big time economic development.  Roanoke’s “Hashtag” campaign was a big part of the Deschutes Decision.

Albemarle Supervisor Rick Randolph thought the presentation corrected a “myth” that Albemarle lost Deschutes – he said instead Roanoke won it.  Sounds like splitting hairs to me but I still have the core question.

Is Albemarle ready to energetically embrace economic development?

Randolph said he was supportive of “smart” economic development where jobs went to Albemarle citizens and no traffic was generated – sounds like a unicorn hunt to me.

Supervisors Liz Palmer and Brad Sheffield both expressed interest in redevelopment sites.

One positive suggestion came late in the meeting from Planning Commissioner Jennie More.  More thought that economic development should be a part of the community vetted Master Plan process.  This might be a first step in developing the kind of community buy in that can be more than “accepting” of economic development instead can cheer for it.

This meeting was a good first step, but I remain concerned that not everyone is equally energetic about economic development and the community is clearly not yet fully engaged.

If everyone understands the net benefits of economic development and brings positive energy to support the effort, perhaps then Albemarle can be in a position to “Win”.

If not, we may want to ask if Albemarle should be (or is) in the game at all.

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.

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Greene Supervisors Hears Five Year Regional Hazard Mitigation Plan

By. Brent Wilson, Field Officer

It makes good common sense to hope for the best but plan for the worst.  For Virginia localities it is more than common sense, it is mandated by state law.clip_image002

In response to this requirement, Billie Campbell, Senior Program Manager, and Wood Hudson, Planning Manager, of the Thomas Jefferson Planning District Commission  addressed the Greene County Board of Supervisors at their first meeting of October (10/10). They presented a draft of the 2017 Update of the Regional Hazard Mitigation Plan . The Disaster Mitigation Act of 2000 set out requirements for State and local governments to update their plans every five (5) years.

clip_image005The purpose of plan is prepare for natural disasters before they occur and it covers all jurisdictions in the Thomas Jefferson Planning District – Albemarle County,  the City of Charlottesville, Greene County, Louisa CountyFluvanna County, Nelson County, and the towns of Scottsville, Stanardsville, Louisa and Mineral. The first plan was approved in 2006, then in 2012 and it is now due to be updated by December 17, 2017.

In August a draft of Regional HMP was submitted to the Virginia Department of Emergency Management (VDEM) who will then forward it to FEMA for their review and comments and once they have approved it, each jurisdiction must adopt the plan.

According to the draft plan:

Natural hazards tend to be low-probability, high-impact events. One year could be mild with natural
events scarcely interrupting communities, while the next could be literally disastrous. The purpose of hazard mitigation is to make an effort to minimize the damage and loss of life caused by disasters when they do occur. Hazard mitigation is one component, along with emergency response and post-disaster recovery, to the larger strategy of dealing with the human impacts of natural hazard

With more people living in areas susceptible to natural hazards, the costs associated with such hazards have been steadily increasing over time. The localities of the Thomas Jefferson Planning District (the Counties of Albemarle, Greene, Fluvanna, Louisa, and Nelson, the City of Charlottesville, and the Towns of Scottsville, Columbia, Stanardsville, Louisa, and Mineral) are impacted by variety of different hazards. In order to lessen the growing cost of disaster recovery on the localities and minimize the disruption of business during a disaster, there is a growing need to mitigate the impact of known hazards. Through proper planning and the implementation of policies and projects identified in this Hazard Mitigation Plan, the region and the localities can reduce the likelihood that these events will result in costly disasters.

The Hazard Identification and Analysis section of the plan describes natural hazards which pose the greatest threat to the Thomas Jefferson Planning District. Hazards are profiled in terms of prevalence, intensity, and geographical scope. The section includes a description of the hazard as well as analysis based upon historical and scientific data.

The specific areas of the plan are:

        1. flooding and dam failure
        2. winter weather
        3. wildfire
        4. temperature extremes, drought and landslides, and
        5. tornado and earthquakes.

The plan calculates a risk factor for each event within the TJPDC study area.

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Within each category are specific actions recommended to be taken that include describing the hazard, potential mitigation, lead responsible entity, estimated cost, funding method and the time period of the issue.

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Campbell asked that the Board consider making the resolution supporting the plan. All of the supervisors supported the plan but wanted to wait until the second board meeting of the month to allow time for them to review the proposal. The request was deferred until the October 24, 2017 meeting and it is hoped that the Supervisors will approve the resolution at that time.

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’s Proactive Economic Development Effort

By. Bryan Rothamel, Field Officer

Fluvanna County is preparing the way for development in the Zion Crossroads area. Water and sewer will start construction in the coming year, but Fluvanna County staff have an idea to make properties in development area ‘shovel ready.’

The proposed program, Fluvanna Shovel Ready Sites Program (FSRSP), will provide money to property owners to help them have land ready for development quicker.

Jason Smith, director of community and economic development, has vocal approval to develop the program. His idea is a play off of a similar state program, Virginia Business Ready Sites Program.

The statewide program has a minimum acreage of 100 acres. Fluvanna has two cooperating landowners who can combine to be eligible but most properties in Zion Crossroads area are smaller.

FSRSP would fill the gap for properties 2 to 99 acres.. Smith said several property owners he speaks to are willing to have their land developed, but they don’t fully know the process or what it entails.

“This is a program creates an avenue to have a conversation,” said Smith.

Virginia classifies property for development in five tiers. The higher the tier, the easier it is to develop. Most Fluvanna land is sitting in tier one.

“One of the core features of the Fluvanna Shovel Ready Site Program is rezoning. That takes two to three months. Developers don’t want to fiddle with that paperwork and two or three meetings,” said Smith.

Rezoning a property from Agricultural-1, which the vast majority of Fluvanna is zoned, to a business friendly zoning jumps property to tier three.

Along with zoning, the program would help landowners take care of various other due diligence programs like surveying or environmental studies. Smith said developers don’t want to hear there is an issue that needs to be mitigated because they’ll move to another location in another locality.

Smith said, “If we can do all the red tape, if we can take care of that, [developers] want to open up and make money. They don’t want to sit around for a year.”

He briefed the Board of Supervisors of the program during a work session in September. He will bring it back for final approval in November in hopes of rolling it out by January 1.

“We can’t wait. We can’t,” said an anxious Smith.

He said his office gets request for information every few months with questions that automatically disqualify any county property. Water infrastructure will help but moving properties to tier three or four will help speed things along.

Smith proposes moving $35,000 from a microloan program to FSRSP. The microloan money has been budgeted for several years with no businesses applying or using the money.

Just like the idea behind microloans, anyone interested in getting financial assistance through FSRSP would have to apply through the Economic Development Authority of Fluvanna. Once approved, landowners would work with county staff to complete the proposal.

“[The program will] provide a financial assistance opportunity to actually do something with the property, instead of just letting it sit and watch the property two miles up the street in Louisa county be developed,” said Smith.

Smith’s intention is to get final supervisor approval during the November 1 session. If approved, he would then have community meetings to publicize to landowners.


The 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: Ryan Pace Communications Management, LLC

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

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

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.

Greene Supervisors Endorse Schools Project Fund Application

By. Brent Wilson, Field Officer

Last night (7/25), the Greene County School Board presented their Phase I proposal for updating the Greene Schools facilities to the Board of Supervisors. The School Board requested the Supervisors endorse the Virginia Public School Authority (VPSA) application for funding for the project . VPSA offers options for market financing with competitive interest rates.

clip_image004Greene County Schools Superintendent Andrea Whitmarsh addressed the Board and summarized the process that began 31 months ago with the formation of a community committee to review all the school facilities in the county and make recommendations. The total recommendation is broken down into three phases with Phase I currently being requested for funding.

Kristie Spencer, Director of Business and Facilities added the retirements by year to her previous financial presentation. And then she showed the impact of consuming the $2.81 million excess capital funds that have been accumulated by underspending schools budgets in the past few years.

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Kristie Spencer

Spencer also pointed out that the first payment would not have to be made until July, 2018, which will allow for more debt to be paid down. Per Spencer, there are several options on how to structure the debt repayment that VPSA may allow. The length can be 25 or 30 years, the debt could be back loaded, etc. Greene County can make suggestions but the final decision is made by VPSA.clip_image008

Supervisor Bill Martin (Stanardsville) asked Spencer why would the school board not use the excess capital funds to reduce the higher debt in the beginning of the repayment schedule?

Spencer stated that there may be other capital projects to use the funds. Martin suggested using the $2.81 million excess capital funds for the school project since it would have a large financial impact at the beginning of the repayment schedule, until more debt is paid off.

Supervisor Jim Frydl (Midway) thanked Spencer for the detailed planning with all of the options presented in a format easy to understand. Supervisor Martin complimented Frydl on his idea several years ago to accumulate unspent funds for future capital projects.

Jim Frydl

Frydl asked Whitmarsh if the Supervisors agreed to endorse the VPSA application could the project be put out to bid? Robert Moje, one of the principals of VMDO, the architects working on the project – agreed that it is important to move forward quickly to minimize cost increases and raising interest rates. However, funds must be available in order to enter into contracts.

Spencer indicated that there are still several steps to occur and that it would be November, 2017 before the bonds would be sold and the costs finalized.  Moje clarified that this should be accomplished by November 6th.

Frydl asked Moje how long he expected the request for bids to be out. Moje said that it typically takes a month with the goal to have the funding and the quotes come in at the same time. Supervisor Dale Herring (At-Large) asked Moje if he expected any problems in getting bids for the project. Moje anticipated that the project should get multiple bids.

Chairman Michelle Flynn (Ruckersville) stated that Greene County doesn’t have other separate facilities – and therefore the school buildings are very important assets beyond their primary function of providing classrooms to the students. The Board unanimously agreed to approve the request of the School Board to endorse the VPSA application.

Finally, as Moje was departing the meeting, he addressed the Board and said that it is rare that a community works as well together as Greene County did on this project.

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 Supervisors Get School Project Update

By Brent Wilson, Field Officer

At the July 11th  Greene County Board of Supervisors meeting, three residents spoke in favor of the proposed school facility study. The third speaker used the military term, FUBAR, to describe the current traffic patterns at the Stanardsville campus.

As background, School Board President Leah Paladino outlined the 31 month process to date. A committee was selected to oversee the process and the company VMDO https://www.vmdo.com/ from Charlottesville has been contracted by the School Board to study and make recommendations for the project.

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Leah Paladino

Paladino indicated that VMDO prioritized the project with 1) safety / security, 2) increase capacity for the 7th fastest growing county in Virginia, 3) adaptability and 4) space for the community to use.

Paladino then introduced Bryce Powell from VMDO to go over the detail of the project.  The plan concept is to tie the school project in with the Main Street project and reduce traffic conflicts on the school campus.  The plan is iterative with each step in the project builds toward the next phase.

Per Powell, the total presentation is a forward look 15-20 years into the future with the “dark blue” section being the first phase that is being discussed tonight. The emphasis is on safer cross walks, improved outdoor dining, having all the buses go to the back of the high school for drop off and pick up of students and the front to be used for parent dropping off students. The pedestrian crossings may have a raised, colored surface to highlight these areas to drivers to ensure safety.

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As the Greene County is the 7th fastest growing county in the state, the plan is to expand the high school and the middle school to be able to hold an additional 200 students each – more than the current demand. At the high school the dining room congestion is a primary focus. The middle school also needs the kitchen and cafeteria enlarged. The space to enlarge the middle school will come from pushing Monroe Drive farther away from the school to allow for an expansion at the front of the building.

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Powell discussed the cost of the project vs. what had been projected last fall. While the plan has become more focused in the past 8 months, construction costs have risen significantly this spring – 15-20%. He attributed this to contractors from Charlottesville to Harrisonburg having a large volume of work that enables them to raise prices in addition to a skilled labor shortage that drives up their costs. The Free Enterprise Forum has seen this trend in many municipal projects in recent months.

Chairperson Michelle Flynn (Ruckersville) asked Powell what he expects will happen to operating costs. Powell indicated with upgrades to the HVAC systems and improved lighting he expected the energy costs to decline. In addition, he indicated that there are relatively small increases in square footage (approximately 3,000 square feet at the high school and middle school each) and it was mainly a reconfiguration of the existing footprint.

Supervisor Jim Frydl (Midway) asked Powell how firm the costs were. Powell indicated that they were at the high end. For example, the increased space for 200 students at both the high school and middle school might only require seating for 320 to start. It wouldn’t be the maximum day one as the plan has room for growth.

Supervisor Bill Martin (Stanardsville) stated the presentation while detailed was excellent. It was well thought out and presented well.

Perhaps in a measure of full transparency, the School Board prepared an amortization schedule for the project. The project must be sent out to bid before the Board of Supervisors approves the final expenditure (and determines the financing mechanisms).

The financial pages of the presentation were addressed by Kristie Spencer, Greene County Schools Director of Business and Facilities.

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Kristie Spencer

The first page she presented was the retiring of current schools debt, by year and cumulatively. The reductions  started at $230k going into 2018. The next three years show the largest reductions 2018 = $103K, 2019 = $183K and 2020 = $312K so that the cumulative amount by 2020 grows to $828K. The next seven years range from increases of $12K to $57K and then spike back up to $298K in 2028 and $463K in 2029. By 2029 the cumulative amount of retired debt reaches $1,765K.

As a reminder to the supervisors, Spencer stated the current unspent Capital Fund Balance which has accumulated to a balance of $2,815,000.As the supervisors had not decided to use these accrued funds, Spencer did not show using these funds to pay for the project even though these funds could pay for the first two and one half years.

The next two pages showed four scenarios, two with 25 year loans one at 3% and another at 3.5%. The other two scenarios used 30 year financing with 3% and 3.5%. The gross annual cost with the 25 year and 3% scenario is $1,630,000.

However, each year as more existing debt is paid off (see two paragraphs above) thus reducing the net payment for the project to where in 2029 there is actually a reduction below the current level of debt service.

 

Year Net Increase in Thousands Tax Rate Impact Less Capital Fund Balance in Thousands
2018  $1,297  0 0
2019  $1,115  0 0
2020  $803  0.02  $399.00 
2021  $786  0.04
2022  $774  0.04
2023  $762  0.04
2024  $749  0.04
2025  $696  0.04
2026  $639  0.03
2027  $627  0.03
2028  $328  0.02
2029  $(135) -0.01
2030  $(135) -0.01
2031  $(135) -0.01
2032  $(136) -0.01
2033  $(138) -0.01
2034  $(136) -0.01
2035  $(135) -0.01
2036  $(135) -0.01
2037-42  $(135) -0.01

Average Tax Rate Impact = $.02/Year

Average Tax Rate Impact less Capital Fund Balance = $.01/Year

The current projected cost of the project of $28 million would cost nearly $41 million ($1.63 million x 25 years) with interest at 3% over 25 years, the net additional cost accumulated over 25 years would equal approximately $7 million in total above current levels. Plus the accumulated Capital Fund Balance of $2.814 million represents excess tax revenue that taxpayers have paid in previous years.

While there are many infrastructure demands on the Capital Fund Balance, we ask that Supervisors consider using this dedicated fund prior to increasing the tax rate.

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 Adding Debt and Reducing Regulations to Boost ZXR Development Potential

By. Bryan Rothamel, Field Officer

The Fluvanna County Board of Supervisors are adding another $8.5 million to the county’s debt total.

The supervisors voted 4-0 to finance $8.5 million for the Zion Crossroads water and sewer project.Chairman Mike Sheridan (Columbia District) had a pre-planned absence.

Current estimates has the project at over $10 million. The remaining amount will be paid in cash from the county’s reserves.

Tony O’Brien (Rivanna District) wanted to include in the financing the first year’s payment but it failed to reach a second. Patricia Eager (Palmyra District) moved to pay the first year’s payment in cash. This payment was not budgeted for in FY18.

The supervisors originally applied and were approved for $8.5 million through the Virginia Resource Authority but debated on financing less than the full amount. The county’s reserves are sitting at $4.8 million above policy of keeping 12 percent of the budget in reserves. This additional amount above policy is called the ‘fund balance.’

With financing of $8.5 million for the project, the county will still pay $1.7 million in cash from the fund balance.

“Flexibility [in the cash balance] is important. $2 million is not a lot of flexibility,” said O’Brien.

The county’s debt total will be over $100 million. Starting in FY19 the county will be retiring $6 to $7 million a year of debt.

Also at the June 21 meeting, the supervisors approved a number of changes in the the zoning ordinances.

The only one not to get an unanimous vote was the one regarding planning unit developments. Fluvanna still does not have an approved PUD and only one has come to a vote, Walker’s Ridge.

The changes would restrict PUDs to the Zion Crossroads community planning area and would require use of public water and sewer. O’Brien raised concern if a developer needed more capacity than the county could offer at the time, it would stop development.

County staff said if a developer wanted a PUD, the developer would help finance an expansion of the system to make it work.

Wayne Stephens, director of public works, said he thought it would be a huge mistake to allow people to build a private system in a community planning area.

O’Brien envisioned a scenario where the developer would have a private system that later would connect when the capacity would allow.

“Trust me, if you have an out…someone will take it,” said Stephens.

The ordinance change passed 3-1 with O’Brien against it.

The other zoning text amendments passed without dissension. The sign ordinance became less restrictive including allowing larger signs in the Zion Crossroads urban development area. The ZXR sign overlay district will have similar dimensions as Louisa County but slightly smaller.

The other change was increasing the maximum height of Industrial 2 zoned properties. It also will now require less setback unless bordering a residential zoned property.

All of the changes are geared to helping development in the Zion Crossroads’ area with the anticipating of the aforementioned planned water system.

In other news, the supervisors approved the county applying for a grant to build a fire training tower building at the Fork Union Fire Station. The goal of the application is for the county’s match to be provided by staff work or already budget resources instead of additional cash contribution.

The supervisors approved a new private secondary school at the old ABC Preschool by Slice Road. The facility is a six week program geared to helping students return to the public school classroom by working on social skills and classwork. The private school has agreements with Fluvanna, Albemarle, Charlottesville, Greene, Nelson and Madison already.

The board transferred money to pay for county attorney services. The FY17 projected cost is $273,000. The county’s attorney costs have increased each of the last four years. The supervisors briefly discussed during the budget season hiring a full time county attorney, however that discussion didn’t go far.

Also at the June 21 meeting the supervisors extended the contract for the county attorney services at the same rates as the current fiscal year.

The supervisors will next meet on July 5 at 4 p.m. and 7 p.m. The supervisors have no second meeting in July. A public hearing on issuance of the ZXR bonds will be on the 7 p.m. docket.


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: Fluvanna County

Fluvanna Finances $8 Million for ZXR Water Project; Discusses Refinancing School Debt

By. Bryan Rothamel, Field Officer

The Fluvanna County Board of Supervisors have a tentatively agreed to finance the Zion Crossroads (ZXR) water project with $8 million of debt.  The county was approved to finance up to $8.5 million through the Virginia Resource Authority.

The ZXR project is projected to cost $10.2 million. The county has $4 million in cash savings, most commonly called the fund balance.  Supervisors debated how much they would feel comfortable financing between $6 million and $8 million and for how long.

“I would encourage you to go $8 [million],” said county administrator Steve Nichols.

OBrien2014 photo credit Fluvanna County

Tony O’Brien

Tony O’Brien (Rivanna District) said, “The more flexibility we have in regards to the fund balance, the better.”

The county was advised by staff to go no more than 25 years on the bonds to avoid financing a project longer than the project’s replacement cycle.  The estimated lifespan of the project is 50 years for the water tower, 15 to 20 years for mechanical parts and 70 to 80 years for the pipes.

“You should view this debt as an investment,” said O’Brien.

Don Weaver (Cunningham District) said, “It is definitely an investment.”

Also at the June 7 meeting, supervisors decided it will sit back and watch the market in regards to how to reinvest $58 million worth of bonds.  In third quarter 2018, the school bonds will have about a 100-day span where money can be reinvested. The proceeds of the investments would be profit for the county.

“I don’t think you will make less [later] than you are going to make today,” said Patricia Eager (Palmyra District).

The county explored a float agreement where the county would now offer companies an opportunity to invest money when the chance arises in 2018. The companies would pay the county now for the opportunity later.

Another option is to buy state and local government series (SLGS) securities. However, the government regulates when those can be purchased. Currently SLGS securities are not allowed to be purchased but it is expected to open again.

As the opportunity to reinvest the bonds gets closer, the float agreement becomes less advantageous because companies would not be ‘betting’ on the market. Another issue with the float agreement is the county would pay fees which would take away maximum income.

If SLGS window is closed during the reinvestment period, the county could purchase treasury bonds for a similar rate.

“In other words, [by not doing anything now] we are taking a risk?” said Mozell Booker (Fork Union District).

Eager responded, “Not a very big risk.”

The county administration recent discovered a new ‘bed and breakfast’. Staff has discovered 20 to 25 homes are listed on popular sharing economy website airbnb, where owners can rent out spare rooms to strangers.

The state now allows localities to regulate this new type of lodging options. Many localities have had an adversarial relationship with airbnb because many owners are failing to pay lodging (and business) taxes. [Albemarle County is considering a new lodging tax and business tax ordinance this Wednesday]

However Fluvanna has no lodging taxes. County staff asked the supervisors for direction regarding the issue. Weaver found no issue if renting your own home was legal.

“Have you had any issues?” Weaver asked and received a no. “Then leave it alone.”

County attorney Fred Payne said, “I think [the market] is so new, it is still shaking down.”

Staff offered an opportunity to require airbnb hosts to register with the county. “I think it is a very fluid market,” said O’Brien.

Staff research and return to the board with opportunities or regulations.

The next Fluvanna Board of Supervisors meeting is June 21 at 7 p.m.


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: Fluvanna County