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2009-11-16 MinutesJOINT BOARD OF SUPERVISORS AND SCHOOL BOARD MEETING MINUTES u O November 16, 2009 Supervisors in Attendance: Staff in Attendance: Mr. Arthur S. Warren, Chairman Ms. Janice Blakley, Mr. Daniel A. Gecker, Vice Chrm. Clerk to the Board Ms. Dorothy Jaeckle Mr. Allan Carmody, Dir., Mr. James "Jim" Holland Budget and Management Ms. Marleen K. Durfee Ms. Marilyn Cole, Asst. County Administrator Mr. James J. L. Stegmaier Ms. Mary Ann Curtin, County Administrator Dir., Intergovtl. Relations School Board Members in Colonel Thierry Dupuis, Attendance: Police Department Dr. Lyle Evans, Asst. Mr. Marshall Trammell, Jr. Supt. for Human Chairman Resources and Facilities Mr. David Wyman, Vice Chrm. Dr. Dale Kalkofen, Asst. Ms. Dianne Pettitt Supt for Instruction Mr. Omar Rajah Ms. Mary Lou Lyle, Acting Ms. Patricia Carpenter Deputy County Admin., Management Services Legislators in Attendance: Mr. Steven L. Micas, County Attorney Senator Stephen H. Martin Mr. David Myers, Asst. Senator John Watkins Superintendent of Delegate Roslyn R. Dance Schools, Business Delegate G. Manoli Loupassi and Finance Delegate Delores L. McQuinn Dr. Marcus Newsome, Supt. Delegate Samuel A. Nixon, Jr. of Schools Delegate R. Lee Ware, Jr. Chief Edward Senter, Fire Department Mr. Shawn Smith, School's Assistant Director of Community Relations Ms. Sarah Snead, Acting Deputy County Admin., Human Services Dr. Sharon Thomas, Executive Asst. to Superintendent Ms. Carol Timpano, Clerk to the School Board Mr. M. D. Stith, Jr., .Deputy County Admin., Community Development WELCOME AND CALL TO ORDER Mr. Warren called the joint meeting to order at 4:51 p.m. He expressed appreciation to the members of the delegation. 09-636 11-16-09 Mr. Trammell called the School Board meeting to order. Mr. Warren expressed appreciation to the members of the delegation for attending the meeting. He stated it is very important to have good relations heading into the next General Assembly session due to the difficult economic times we are facing. He stated the Board of Supervisors and School Board are taking advantage of the downturn in growth by partnering together with the business community to develop a new Comprehensive Plan. He further stated Chesterfield still enjoys a wonderful quality of life . He stated it is important to work together for the good of the citizens of Chesterfield. Mr. Trammell stated the School Board appreciates the opportunity to share information with the members of the delegation and expressed appreciation to the delegation for their support in the past. COUNTY ADMINISTRATOR'S COMMENTS Mr. Stegmaier welcomed the members of the General Assembly and expressed appreciation for their attendance at the joint meeting of the Board of Supervisors and School Board. He stated the county looks forward to working together to get through the next session of the General Assembly on behalf of the citizens. He further stated the county understands the coming year is going to be more difficult than the past year. He stated the county embarked on a series of conversations with the community about the fiscal situation that the county is facing. He further stated the community meetings allow the citizens to offer their ideas and input to help guide the decision making process. He stated at this time the county is not trying to solve the problem but simply get the message out to the public. He further stated staff is closely monitoring what is happening at the state level. He stated the situation for the members of the General Assembly is going to be challenging. He further stated government services the citizens have come to know are likely to change in the coming year. SCHOOL SUPERINTENDENT'S COMMENTS Dr. Newsome expressed appreciation to the Board of Supervisors as well as the School Board for hosting the event. He further expressed appreciation to the delegation members for their service to the citizens of Chesterfield County and the Commonwealth of Virginia. He stated he is proud to call Chesterfield County home due to the quality of life it provides for his family. He further stated the school system was recognized by the Department of Education under the Bush and Obama Administrations as a model for high performing school districts across the nation. He stated the school system is operating with $32 million less than last year. He further stated next year the school system anticipates to operate with $30 million less and perhaps $15 million in 2012 and there will be more students each year. He expressed appreciation to the members of the delegation for advocating for public education. He stated the school system's top legislative priorities are the full 09-637 J J J 11-16-09 ^~ 0 ^i funding of the Standards of Quality and a cap on support positions. He further stated the school system is doing everything possible to make sure every dollar spent is spent in an efficient manner by requesting the Department of Education to do an efficiency review of the school system. He stated the auditors completed their onsite review and stated Chesterfield County public schools is the most efficiently run school division in terms of cost per pupil. He further stated as soon as the recommendations are received the school system will review them carefully. He stated the school system has staff members ready to assist members of the delegation with any requests for information . ECONOMIC OUTLOOK. AND THE 2011 BUDGET Mr. Carmody stated staff has had five budget community meetings throughout the county to inform the citizens of the challenges for the upcoming year. He further stated the information relayed to the citizens in the meetings has been well received. He reviewed the FY2010 budget as adopted. He stated the county is able to provide services to our community at a lower cost than other large localities. He further stated in FY2010 the county was delivering services on par with FY1997. He stated it is easy to deliver services at a low cost, but the county is able to deliver services with high value. He further stated outside independent agencies give excellent ratings for Chesterfield County's quality of life. He stated the school system is the lowest cost provider of public education in the Commonwealth among large localities. He reviewed the process taken by the Board of Supervisors and County when adopting the FY2010 budget. He stated if the school system had not received the State Fiscal Stabilization funds from the Federal Stimulus Act, the fiscal picture of the school system would have been dramatically different. He provided a detailed review of how focused the reductions were made in the FY2010 budget. He stated some relief to the taxpayers was provided due to declining property values. He reviewed how other large Virginia jurisdictions handled the challenges faced with their budgets. He stated Chesterfield took the deepest reduction of any other jurisdiction in Virginia without adjusting the real estate tax rate. He provided a breakdown of the county's general fund and stated almost 60 percent of the total revenue in the general fund is affected by consumer's spending habits. He further stated Chesterfield County has lost over 9,000 private sector jobs since 2007. He stated the decline in real estate values will continue as long as there is an abundance of homes on the market. He further stated the impact of the economic conditions is seen not only on residential properties but also the commercial properties. He stated the Governor's proposed reductions to the current year's budget were comprised of a majority of one time options which represented approximately 60 percent of the solution for the $1.5 billion projected revenue shortfall. He provided a comparison of the gross domestic product levels and unemployment levels. He stated positive growth of gross domestic product will probably occur for at least 18 months. He reviewed the pressures on the expenditure side of the budget on both the school system and the general 09-638 11-16-09 fund and stated there are needs for major equipment replacements. He further stated the reduction or elimination of Federal Stimulus funding by 2012 will put additional pressure on the local government and school system. He stated the estimated budget shortfall for FY2011 is expected to be $55 to $60 million. He provided a detailed list of services which can be provided to the citizens for $55 to $60 million. He reviewed the process being used at ,the community meetings. He stated staff will compile all of the information received at the meetings and report back to the elected officials. He further stated it is likely that programs and services will have to be changed. Mr. Warren expressed appreciation to Mr. Carmody for the presentation. He invited members of the delegation to attend the community meeting in the Clover Hill District. He stated the county still enjoys a AAA bond rating from all three bonding agencies. PROPOSED 2010 LEGISLATIVE PROGRAM - COUNTY Ms. Curtin briefly reviewed the county's draft 2010 legislative program. She stated the guiding principle for the 2010 legislative program is to maintain the county's AAA bond rating, the county's financial independence and fiscal integrity. She further stated staff will be contacting individual members of the delegation for assistance with a couple of transportation items. She stated the county will be asking JLARC to do a study about incentives for localities to work together in terms of constructing facilities and providing operating services. She further stated the county is looking at a charter change which would allow the County Administrator access to tax information. She stated the county will be looking for an amendment to the Public Procurement Act relating to how K9 dogs are handled when their trainers leave the police force. She further stated the Board is scheduled to adopt the program at their meeting on November 18, 2009 and copies of drafts of both county and school legislative programs were available for legislators. PROPOSED 2010 LEGISLATIVE PROGRAM - SCHOOLS Mr. Smith stated the School Board's legislative program is still in draft form and will be adopted in December. He noted that the school system's top legislative priority will be full funding of the Standards of Quality. He stated the school system will review any new statutory regulatory requirements to ensure the funding is there for the school system. He further stated the .school system is going to look for maximum discretion for the division to make their own budget decisions where reductions are possible. He stated the school system will support flexibility within the mandates. He then reviewed the school system's legislative program. He requested the opportunity for the Board of Education to review any changes to graduation requirements to determine if there are funding or staffing implications for the changes. He stated the school system strongly supports the state fully funding the testing which is required. He further stated J J J 09-639 11-16-09 ^i- 0 C since 2005, local school divisions have been required to full fund testing for both state accreditation standards as well as No Child Left Behind. He stated the county is fortunate to have one of the best career and technical education programs not only in Virginia but across the country. He further stated the program has grown year after year and the school system is now turning away students. He stated the School Board is looking. at the current Clover Hill High School as a facility to be used for the career and technical education program. He further stated as the legislature looks at career and technical education, the school system encourages that there are no more mandates which may tie up the school system from a facility and staff standpoint. He requested that staff, the Superintendent, and the School Board be utilized as a resource by the legislators. COMMENTS ON 2010 SESSION Senator Watkins expressed concerns relative to the terminology utilized for the proposed charter change. In response to Senator Watkins' question, Mr. Stegmaier stated in most urban and large suburban jurisdictions there is a finance director who has access to all of the tax information to utilize when making revenue projections. He further stated Chesterfield County operates under the traditional form of government with constitutional officers in the finance area, noting that the budget staff does not have access to the kind of information that a finance director would have access to. He stated the county is trying to make it possible for budget staff to have access to the same information as in other jurisdictions. He further stated although the county has an outstanding Commissioner of Revenue, the Code of Virginia does not permit that information to be shared with budget staff. Senator Watkins stated the language being used needs to be a whole lot more specific. He further stated finance directors are not given full liberty in terms of who they disclose individual tax revenues to. He stated the legislation needs to be more specific as to what Chesterfield is requesting with the charter change. Mr. Stegmaier stated the county is asking for the same ability to view the information which would be allowed in other localities. In response to Mr. Warren's question, Senator Watkins stated he would work with the county administration on recrafting the language of the charter change item. After further discussion relative to the proposed charter amendment, Senator Martin stated he would be happy to work with Senator Watkins on the language of the charter change. He further stated he is a senior member of the Senate Local Governments Committee and would be happy to patron the proposed legislation. Mr. Warren requested Ms. Curtin to work with the delegation on the wording of the charter change. 09-640 11-16-09 Delegate Ware stated when the Governor came before the money committees in August, he said that federal tax revenue has been down year after year. He further stated he contacted the state's appropriations staff prior to this meeting and projections were underperforming at the state level by $250 to $300 million since August. He stated it is going to be a difficult year for ,the state also. He further stated it is important for localities to have flexibility and discretion in decision making, particularly on school matters. Mr. Warren stated the county has a School Board Liaison Committee which can work on getting a coalition of people together. Senator Watkins stated there have been discussions which recommend the abandonment of sovereign immunity at the local government level. In response to Senator Watkins, Mr. Micas stated if Chesterfield County was to lose immunity it would have a multiplying effect on being able to provide low-cost quality services. Senator Watkins advised Chesterfield County to have people working on sovereign immunity because legislation will be introduced this year in the General Assembly. He inquired about the impact of the ordinances adopted by the county in regard to the fines collected which go to the general fund instead of being sent to the State Literary Fund. He stated the Literary Loan Fund has not grown over the past ten years, and it is one of the sources which has been used to offset downturns in the budget for education. Mr. Warren reviewed the police statistics from October 31 to November 6. Delegate Nixon advised Chesterfield County to pay even closer attention to what is happening with the state budget. He stated state revenues are declining at a rate much faster and deeper than anyone anticipated. He further stated the fix for the budget from the Governor in September caused a structural imbalance in the budget. He stated the 2010 and 2011 budgets were built in large part using stimulus money, and the stimulus money will have to be removed from the equation at the end of the 2011 budget. He further stated the state is facing pressures in regard to rebenchmarking and Medicaid reimbursements and what may or may not happen around healthcare reform. Delegate Dance stated she will be at the House Appropriations retreat on November 17, which is going to last for two days. She further stated a lot of time will be spent learning where the state is financially and what the best projections are going to look like. She stated there will be some harsher cuts than were expected because the revenue is not trending upward. She further stated due to the state of the budget, the retreat is being held at the Capital this year. She requested the county have a representative present at the retreat. Mr. Warren stated the county will have a representative from Chesterfield at the retreat. 09-641 11-16-09 J J J GENERAT. DISCUSSION U 0 09-642 11-16-09 Ms. Durfee expressed appreciation to the members of the delegation for attending the joint meeting: She inquired from the members of the delegation as to what their interests are as they move forward with the General Assembly. Delegate Dance stated all of the members of the delegation have pretty much the same priorities such as transportation, education, public safety and healthcare. She further stated the Governor-Elect is going to address transportation in his first year in office. She stated improving the economy is another priority because the state is working on stimulus money which will be gone at the end of 2011. Senator Martin stated the on what legislation will environment and what will a positive way. He furt: the General Assembly has difficult on a business to top priority has to be have an affect on the affect the state econom her stated every action the potential to make succeed and prosper. to focus business ically in taken in it more Mr. Warren stated when a business prospers it translates into jobs, which is a big item on the Governor-Elect's and Lieutenant Governor-Elect's agenda. Mr. Trammell expressed appreciation to Delegate Ware for his comments on allowing leeway on what mandates may be passed. He stated every candidate for attorney general over the past 39 years has campaigned on the issue of fewer regulations. He further stated the legislators need to review what it takes to help the school divisions around the Commonwealth get through the budget crisis. He stated the School Board along with Dr. Newsome will put together a list of items which will help the school division survive the budget crisis. Mr. Warren requested Mr. Trammell to compile the list and forward it to all of the delegation. Ms. Durfee again inquired whether there were any other legislative concerns that the delegation would like to share at this point. She referenced the impact fee bill and asked if anyone wanted to comment on that at this time, or if there was any other legislation that they felt might be of importance at the local level. Senator Martin stated he doesn't think there is anything unknown with regard to where the individual legislators stand on those issues, noting that the things that have been discussed here including the budget are impactful on, and should be of interest to, the local government. He stated some of the _actions taken at the transportation level and others may need some corrective action in order to make sure the state can recover from this recession. He further stated the reason for the decline in revenues is the slow housing starts and automobile sales. .. .. ~ _ _ . ,._ _ _ ._ . ,. a Mr. Holland expressed appreciation to the members of the delegation for attending the meeting. He stated now would be an opportune time to review the state income tax system to see what can be enhanced going forward in a new economy. Mr. Wyman expressed appreciation to the Board of Supervisors for pushing the agenda through this budget cycle. He stated during the last several months, the county and school system have started early in the process of assessing the budget. He further stated the Budget and Audit Committee is looking at the long term impact of the changes on the county and school system. He stated over the last 18 months, the Budget and Audit Committee has been reviewing efficiency audits and energy savings and are now into the classroom. He further stated the impact that will be seen is in the classroom and will affect the students. He stated education is the revenue engine for the state. He further stated the county has been fortunate over the last 10 years in terms of investments that have been made in education. He stated the county has made substantial progress fixing some fundamental issues relating to achievement gaps. He further stated the real question is where the county will be 10 years from now with the decisions that will be made in the next six months. In response to Ms. Durfee's question, Delegate Dance stated the stimulus money for 2011 has been used for budget shortfalls for 2010. Senator Martin stated the stimulus money has been spent, and things are looking worse than expected at the state level. He further stated the General Assembly starts with a structural budget imbalance plus inflation and the $3.5 billion shortfall. Delegate Dance provided the details of the Appropriations meeting. Mr. Warren expressed appreciation to the members of the delegation for attending the meeting. He noted that at a recent Chesterfield Chamber meeting where about 200 business people attended, it was stated the county and the business community are working together better than in years past. He stated in the five years prior to the dip in the economy, over 400 new businesses located in Chesterfield creating 7,500 new jobs and invested $1.5 billion in the economy. He further stated there are going to be tremendous opportunities for Chesterfield County to return to this level of activity as this recession ends. On motion of Mr. Gecker, seconded by Mr. Holland, the Board adjourned at 6:05 p.m. to November 18, 2009 at 3:00 p.m. in the Public Meeting Room. Ayes: Warren, Gecker, Jaeckle, Holland, and Durfee. Nayes: None. On motion of Ms. Pettitt, seconded by Mr. Wyman, the School Board adjourned at 6:05 p.m. Ayes: Trammell, Wyman, Pettitt, Rajah, and Carpenter. Nayes: None. J mes J. Stegma'er thur S. Warren ounty dministrator Chairman J J J 09-643 11-16-09