The Wise County Board of Supervisors met in a Recessed meeting on Thursday, April 25, 2013 @ 6:00 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 Fred Luntsford
Honorable Ronald L. Shortt
Honorable Steve Bates – members of said Board and
David L. Cox – Finance Administrator
Karen T. Mullins – County Attorney
Annette Underwood –Executive Secretary
Shannon C. Scott – County Administrator
IN RE: SCHOOL BOARD BUDGET PRESENTATION
Dr. Jeff Perry, Superintendent of Public Schools, provided a power point presentation on the schools budget as follows:
The Operating Budget Increases for 2002 – 2010 were reviewed with an average Increase of $2,992,528.
The Operating Budget Decreases for 2009 – 2013 were reviewed with a total loss of -$14,130,900 and an average loss of $4,710,300.
A Budget summary for 2002 – 2013 was reviewed touching on the reduction in Force and the savings reaped through retirements, consolidation, insurance and other means.
The Operational Budget Challenges for 2013-2014 were reviewed showing a deficit of $3,150,000 as follows:
State revenue (Student enrollment) $900,000
State revenue (basic aid) $150,000
Increase on insurance renewal $600,000
Reduction of BOS funding $800,000
Reduction of federal funding $300,000
Increase 2% raise to all staff (less state funding) $300,000
VRS mandatory 1% raise $ 50,000
The school budget potential solutions were reviewed as follows:
Eliminate or transition insurance renewal costs $600,000
Reduce equipment/supplies in every department $500,000
Reallocate federal monies to salaries $200,000
Realize savings from retirement program $100,000
Activate hiring freeze $400,000
Implement self-insurance with benefit reductions $800,000
Reduce central office/support/professional services $100,000
Reduce BOS cuts $300,000
Other cuts to be determined $100,000
The Operating Budget Analysis Category for 2012 – 2013 was reviewed.
The 2012 – 2013 Operating Budget Analysis was reviewed.
Ron Vicars, Director of Business/Finance for Wise County Schools, reviewed the FY 2013-2014 budget by line item with the following total proposed budget summary for FY 2013-2014:
School Operation $60,415,000
School Debt Service $ 3,827,100
School Capital Outlay $28,515,000
Dr. Perry explained that this budget has been cut wherever possible to prevent any layoffs. However, the employees will be paying more for their health insurance with less take home pay.
There was some discussion on cuts that have been made to the school system, and the loss of students as well as a rise in health insurance, which has made a huge impact on the school budget.
Supervisor Rivers, noting these cuts and the cost to the school employees for health insurance, suggested giving 6% above the amount that is being asked for, which would be sufficient funds to cover the health insurance cost for the school employees.
Finance Administrator Cox explained how this would affect the proposed budget.
Supervisor Kilgore, regarding more funding for the school system, suggested funding $200,000 for the buses out of the designated fund balance for the schools, and $700,000 for operational.
Supervisor Rivers asked Dr. Perry if the Board commits to the $200,000, will it be used to offset the cost for employee insurance or will it be applied to personnel cost such as salary so the impact on their pay check is not as great?
Dr. Perry stated if additional money is received, and that was the intent of the Board, he said he would bring that to the School Board’s attention. Not being able to speak for his Board, he did not think his Board would see this as a problem and they would make sure it was given to those individuals to offset the increased health insurance cost.
There was some discussion on the $9M that has been set aside for the schools. Finance Administrator Cox explained that out of the $9M set aside for the schools, almost $2.2M has been used in the current FY 2013 budget and $900,000 for Eastside. If $1.7M is used in the proposed budget for 2014 plus $200,000, that would leave a balance of approximately $4M.
When asked what else the School Board plans to use the $2.7M in their capital Improvement budget, Mr. Cox explained that he understood $2.5M would be spent on the existing school projects with the majority being spent at Central and $200,000 would be spent on the school bus leases.
After further discussion on the intent for additional funding, Attorney Mullins advised that a motion needs to be contingent upon the acceptance of the School Board to those terms for which the Board intends the money to be used for. She noted that once they have the funds, the Board has no control on how the funds are to be spent.
A motion was made by Dana Kilgore, seconded by J. H. Rivers, that the capital outlay budget be increased for public schools from $1.7M to $2.7M and the source of funds would be taken from the School Reserve Fund Balance. The motion was unanimously approved.
A motion was made by Dana Kilgore, seconded by J. H. Rivers, that the County change its proposed budget (page 74), the account out of the appropriation for school’s operational fund, and change it from $13,191,600 to $13,391,600, which will be used to offset the employee insurance increase of $200,000. The motion was unanimously approved.
IN RE: BLACKWOOD LANDFILL EXPANSION IVB CONTRACT
Bill King, representing T&L, stated that since the last meeting, Summers-Taylor, the contractor, has been awarded the project for the Blackwood Landfill Expansion IVB. Mr. King explained that the documents are in order except for one minor exception. VRA requires that the contractor name VRA and the trustee as an oblige on the payment performance bond. Summers-Taylor did that on the performance bond but not the payment bond. They have been made aware of this omission and will provide that documentation Friday. Mr. King recommended execution of the contract subject to receiving this noted omission on the payment bond and the County Attorney having reviewed said documents.
A motion was made by Ronnie Shortt, seconded by J. H. Rivers, to authorize Administration to execute the Blackwood Landfill IVB Expansion Contracts upon notice that the payment bond has been modified. The motion was unanimously approved.
IN RE: COUNTY FY 2013-2014 BUDGET – ADVERTISEMENT
A motion was made by J. H. Rivers, seconded by Fred Luntsford, to set a public hearing May 23, 2013 @ 6:00 PM on the proposed FY 2013-2014 County budget. The motion was unanimously approved.
IN RE: BUDGET AMENDMENTS
A motion was made by Ronnie Shortt, seconded by Fred Luntsford, to approve budget amendments #23 and #24 as presented. The motion was unanimously approved.
IN RE: COURTHOUSE PARKING LOT PROCUREMENT & PAYMENT
Attorney Mullins explained that the Wise Inn construction started earlier than anticipated, which has created a parking problem behind the Courthouse. There also is anticipated a heavy court docket for the next two (2) months. The wall behind the Courthouse is almost completed and the paving portion needs to be implemented as soon as possible. Since there is not sufficient time to do the full procurement for this project, she ask that the County Administration be authorized to proceed with procurement on an emergency basis or a sole source basis and come back to the Board for ratification at the May meeting if all the information can be gotten within the next week to ten days.
Finance Administrator Cox advised that the paving for the parking lot is not in the FY 2013 budget but has been included in the FY 2014 budget. He noted that it was not anticipated that the paving would be ready prior to the 2014 budget being approved. This amount could be taken from the fund balance and would require a budget amendment of $75,000, which includes paving of the area now graveled, re-striping , and sealing the entire parking lot.
A motion was made by Ronnie Shortt, seconded by Robby Robbins, to authorize the Administration to proceed with procurement on emergency or sole source basis for the Courthouse Parking Lot paving. The motion was unanimously approved.
A motion was made by J. H. Rivers, seconded by Ronnie Shortt, to adjourn the meeting. The motion was
ATTEST: WISE COUNTY BOARD OF SUPERVISORS
Shannon C. Scott, Clerk Robert R. Adkins, Chairman