Board of Supervisors - June 22, 2012 Recessed Meeting

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The Wise County Board of Supervisors met in a Recessed Meeting on Friday, June 22, 2012 @ 4:00 PM in the Board of Supervisors meeting room located in the Wise County Courthouse.  The following members were present:

Honorable Robert R. Adkins – Chairman
Honorable Virginia Meador – Vice-Chair
Honorable Dana Kilgore
Honorable Robert E. Robbins, Jr.
Honorable J. H. Rivers
Honorable Steve Bates
Honorable Ronald L. Shortt
Honorable Fred Luntsford – members of said Board and
Shannon C. Scott – County Administrator
David L. Cox – Finance Administrator
Karen T. Mullins – County Attorney
Annette Underwood – Executive Secretary

IN RE:  PUBLIC HEARING CNW SECOND SERVICE AGREEMENT AMENDMENT

A public hearing was duly advertised for this date to receive citizens’ comments regarding amendments to the CNW Second Service Agreement.

There being no one to speak, the public hearing was closed.

IN RE:  CNW SECOND SERVICE AGREEMENT

A motion was made by Ronnie Shortt, seconded by Fred Luntsford, to approve the CNW Second Service Agreement as amended.  The motion was unanimously.

IN RE:  CNW THIRD & FOURTH CAPACITY PURCHASE AGREEMENT

A motion was made by Robby Robbins, seconded by Ronnie Shortt, to approve the CNW Third and Fourth Capacity Purchase Agreement as presented.  The motion was unanimously approved.

IN RE: ORDINANCE MINERAL SEVERANCE LICENSE TAX

A public hearing was held on June 14, 2012 to receive citizens’ input on an amendment to the Mineral Severance License Tax Ordinance #1-2012.  There were no public comments on the proposed amendment.

A motion was made by J. H. Rivers, seconded by Virginia Meador, to approve the amendment to the Mineral Severance License Tax as presented.  The motion was unanimously approved.

IN RE:  SUPPORT AGREEMENT COEBURN MOUNTAIN WATER IMPROVEMENT PROJECT

Attorney Mullins asked that this agreement be tabled until the July meeting for further information.

A motion was made by Dana Kilgore, seconded by J. H. Rivers to table the Support Agreement for Coeburn Mountain Water Improvement Project until the July meeting for further information.  The motion was unanimously approved.

IN RE:  HAZ-MAT TEAM RESPONSE AGREEMENT

A motion was made by Dana Kilgore, seconded by Ronnie Shortt, to table any action on the Haz-Mat Team Response Agreement until the July meeting.  The motion was unanimously approved.

IN RE:  APPOINTMENT – IDA

A motion was made by Steve Bates, seconded by Ronnie Shortt, to table the appointment to the IDA until the July meeting.  The motion was unanimously approved.

IN RE:  RESOLUTION PPTRA BUDGET

There was some discussion on when the PPTRA Budget Resolution should come before the Board.

Finance Administrator Cox explained that in the past the PPTRA Budget Resolution has been placed on the agenda for adoption at the same time as the County Budget.   

A motion was made by Dana Kilgore, seconded by Ronnie Shortt, to approve the PPTRA Budget Resolution as presented.  The motion was unanimously approved.

RESOLUTION #              2012

(Said resolution is on file in the County Administrator’s Office)

IN RE:  RESOLUTION SCHOOL BOARD BUDGET FY 2012/13

A motion was made by Dana Kilgore, seconded by Steve Bates, to approve the School Board Budget as presented.

There was a lengthy discussion on the proposed savings that were to be reaped from school consolidation.

Supervisors Rivers questioned how the County would be financing the payment for the $60M for this coming year.

Finance Administrator Cox explained that the $2M payment will come from the $9M dedicated toward the high school construction.

Supervisor Rivers asked if approving this budget for 2013 would obligate the Board to take that $2M from the $9M.

Attorney Mullins stated that she did not believe approving this budget would include that.  Approval would only be for level funding of the School Board Budget and the $2M would be addressed at the time of need.  She noted that the Board would have the option of financing that payment or take it from the $9M.  She also noted the $2.5M commitment that the Board made for the additional monies for the Central Project.

Finance Administrator Cox stated that the FY 2013 budget includes drawing approximately $2M from the $9M.  That is how he was able to balance the budget.
When asked if the bond rating depending on keeping the $9M in place, Mr. Cox stated that there was no actual commitment except that the County would try to keep that funding intact.

Supervisor Kilgore explained that it was made known to the Bond Counsel that the County may have to use some of that funding until such time that the Power Plant come on line.

Supervisor Rivers brought to the Board’s attention that this is the second year that the School System has been level funded since consolidation and he has seen no savings.  However, the County will have to finance the debt service on that $60M bond beginning this year.   If there are savings, Mr. Rivers says its time the School Board applies a portion of that savings toward the $60M debt service.  With that being said, he stated that he cannot support this budget as presented.

Supervisor Kilgore stated that if the School Board had not had any savings, they would not have had anything to make up the deficit because of the federal and state funding cuts.  Also, if savings had not been incurred from consolidation, more money would have been needed from the County or schools would have been closed this year.

Supervisor Rivers noted that the school system did receive $890,000 additional money in this bi-annual budget from the state.

Finance Administrator Cox explained the school enrollment process and how it affects the funding that is received from the state.  The original amount that the Board was told the School System would save is $3.2M.  He said there were substantial cuts from the state, but he was not able to come up to the $3.2M.  Mr. Cox suggested to the Board that a plan be put in place now on how the Board will address potential revenue cuts.  Even though the County has a fund balance of $12M, there is $60M owed on the new school construction projects.  There will need to be cuts or a tax increase in the future based upon the economic climate after 2013.  He further noted that 2014 is a concern for him.

Supervisor Meador noted that its time the County recognizes the fact that the money the County once had is no longer there and something should be done about that now rather than later.

Supervisor Luntsford asked for an explanation from Mr. Cox on the $750,000 and what that means for 2014.

Mr. Cox explained that based upon the $3.2M savings as told by the school system, he did several scenarios and he estimated 75% savings for several years.  He looked at an amount that could be financed long term and $750,000 is the amount he arrived at.  This was based upon doing debt service in future years and with Dominion revenue coming on line this would provide an opportunity to avoid a tax increase for several more years.  This would be done by moving the $750,000 from operations to debt service in the school budget.

Fred Luntsford made a substitute motion to adopt the School Budget for FY 2012/13 based upon Mr. Cox’s scenario as noted above.  J. H. Rivers seconded the motion.

There were comments made that if this motion is adopted there will be teachers laid off and / or salary cuts.  Also, funding given to different organizations would be cut, which would cut the quality of life for some.

Mr. Cox explained that if the Board would commit to a plan starting 2014 and go forward with that plan, the needs could be addressed.  On short term, there is money to finance the level funding, but on long term there could be repercussions that will have to be dealt with in 2014 and beyond.

Supervisor Bates said the County could make cuts in other areas without affecting people’s jobs and salaries.

There was some discussion on possible cuts that could be made to make up the difference of $300,000 needed to adopt Mr. Luntsford’s motion.

Supervisor Shortt supported the motion to level fund the school system and move forward with a strategic plan that would allow some savings.

Supervisor Rivers felt the School Board should be making the cuts and not the County.

Supervisor Robbins said he did not believe it was up to the County to cut its services because the school system decided it needed two new schools & a renovated school.  The cuts need to come from the school system.  He commented on economic downturn with the decline in coal severance and the jobs that have recently been cut.

After further discussion, Mr. Luntsford withdrew his motion
J. H. Rivers withdrew his second.

Supervisor Rivers made a substitute motion to adopt the proposed School Board Budget as presented with the caveat that within sixty days there is a MOU between the School Board and the Board of Supervisors on how much money will be applied next year from the School Board funds to fund the debt service. 

Mr. Rivers commented that the County should not put this burden on the Sheriff’s Department, Social Services, or any other departments nor cut programs to compensate the $300,000.  This is a School Board issue and should rest with the School Board.  Tonight is the night to start planning.

Attorney Mullins advised that this motion would not be enforceable once the budget has been adopted.  Once that budget has been adopted, it goes to the School Board to be spent based on what they proposed.  A meeting could be scheduled to do a MOU as a suggestion, but it would not have any affect on the dollars to be spent. 

With this information, Mr. Rivers withdrew his motion stating that could not support the budget as presented.

The vote on the main motion to adopt the School Board Budget for FY 2012/13 as presented follows:

Aye-    Steve Bates                  Nay- J. H. Rivers
            Ronnie Shortt                         Virginia Meador
            Bob Adkins
            Dana Kilgore
            Robby Robbins
            Fred Luntsford

Motion carried.

RESOLUTION #                     2012

(Said resolution is on file in the County Administrator’s Office)

IN RE:  RESOLUTION WISE COUNTY FY 2012/13 BUDGET

A public hearing was held on June 14, 2012 to receive citizens’ comments regarding the proposed FY 2012/13 budget for Wise County.  There was no one to speak regarding the proposed budget.

A motion was made by Ronnie Shortt, seconded by Steve Bates, to adopt the resolution approving the  Wise County FY 2012/13 Budget as presented, which totals $56,610,241.00 with modification recognizing that the reduction of the $90,200.00 for the Regional Jail Budget be re-allocated for an additional dispatcher in the amount of $40,000.00 and to cover the 1% increase to all the constitutional offices salaries to cover for a total of $50,200.00.  Steve Bates seconded the motion. 

Finance Administrator Cox explained that the condition on the 1% increase for constitutional offices is that during the preparation of the budget there was an indication that the General Assembly might approve an increase for constitutional offices for FY 2013.  That, however, was passed on to 2014.  It is his understanding that when the 2% increase is approved by the General Assembly in 2014, and if the Board gives them the 1% this year, the Constitutional Offices would forgo 1% of the 2% increase in 2014. 

After further discussion, the motion to approve Supervisor Shortt’s motion was unanimously approved.

RESOLUTION #                  2012

(Said resolution is on file in the County Administrator’s Office)
 
IN RE:  APPROPRIATIONS FIRST QUARTER

A motion was made by Dana Kilgore, seconded by Ronnie Shortt, to approve the first quarter appropriations for 2013 as presented and to authorize the Finance Administrator to execute budget transfers for FY 2012 between departments if necessary to maintain positive budget balances by departments.  The motion was unanimously approved.

IN RE:  LETTER OF SUPPORT

A motion was made by Fred Luntsford, seconded by Ronnie Shortt, to approve the Letter of Support on behalf of Scott County Telephone Cooperative in the submission of an application for Rural Utilities Service funding to bring broadband services to Wise County.  The motion was unanimously approved.

IN RE:  JOINT MEETING WISE COUNTY SCHOOL BOARD

After discussing the request from Dr. Perry to consider having a joint meeting with the School Board on July 9th, a motion was made by Dana Kilgore, seconded by Steve Bates, to schedule a Workshop meeting for July 9th at the School Board Office at 6:00 PM subject to the School Board setting that meeting as a Workshop informational session.  The motion was unanimously approved.

ADJOURN

A motion was made by Ronnie Shortt, seconded by Dana Kilgore, to adjourn the meeting.  The motion was unanimously approved.

 

ATTEST:                                                                     WISE COUNTY BOARD OF SUPERVISORS

 

__________________________________________            ______________________________________
Shannon C. Scott, Clerk                                                           Robert R. Adkins, Chairman

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