Board of Supervisors - April 10, 2014 Regular Meeting

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The Wise County Board of Supervisors met in a Regular meeting on Thursday, April 10, 2014 at 6:00 PM in the School Board education Center located on Lake Street in Wise.  The following members were present:

Honorable Robert R. Adkins – Chairman
Honorable Virginia Meador – Vice-Chairman
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
Shannon C. Scott – County Administrator
David L. Cox – Finance Director
Karen T. Mullins – County Attorney
Annette Underwood – Executive Secretary

PRAYER

Bob Adkins led in prayer.

PLEDGE

All led in the pledge of allegiance to the flag.

MINUTES

Supervisor Meador noted an error on the vote for setting a public hearing on tax rates increase, which has been corrected.

A motion was made by Virginia Meador, seconded by Robby Robbins, to approve the minutes as corrected.  The motion was unanimously approved.

AGENDA

A motion was made by Robby Robbins, seconded by Steve Bates, to approve the agenda as presented to include items in red.  The motion was unanimously approved.

IN RE:  PROCLAMATION CHILD ABUSE PREVENTION

Christine Blair, representing the Department of Social Services, addressed the Board and read a Proclamation proclaiming the month of April as Child Abuse Prevention Month.

ROAD AND HIGHWAYS

Supervisor Meador noted that the sign located above the entrance to the new access road to MECC needs to be relocated.

IN RE:  PUBLIC HEARING – SETTING PROPERTY TAX RATES

A public hearing was duly advertised for this date to receive citizens’ comments regarding a proposed tax rate increase for FY 2014/2015.

The following individuals addressed the Board opposing any tax increase:

William Grant - Wise
Elmer Phillips – Wise
Judy Prichard –
Doug White – Coeburn Mountain
Walter Crouse – Hurricane
Jeff Foster - Pound
Harold Greear – Pound

Their opposition was due to unemployment, those on fixed income, wasteful spending, school debt, no jobs for the young people, decline in coal severance, people on social security, school waste, and the economic downturn.

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

IN RE:  PUBLIC HEARING – LICENSE TAX FOR MOTOR VEHICLES (WHEEL TAX)

A public hearing was duly advertised for this date to receive citizens comments regarding a proposed license tax for motor vehicles, trailer, or semi-trailer registered with the DMV (Wheel Tax).

Thelma Gilley spoke regarding the License Tax for Motor Vehicles.

There being no further comments, the public hearing was closed.

IN RE:  PUBLIC HEARING – CHANGE OF REAL ESTATE DUE DATE

A public hearing was duly advertised for this date to receive citizens comments regarding a proposed change in the real estate tax due dates.

Walter Crouse voiced his support for changing the real estate tax due dates.

There being no further comments, the public hearing was closed.

IN RE:  ORDINANCE MOTOR VEHICLE LICENSE TAX (DECAL ORDINANCE)

A public hearing was duly advertised for this date to receive citizens’ comments on rescinding the Motor Vehicle License Tax (Decal Ordinance).

Those individuals speaking against rescinding the decal ordinance were as follows:
                Elmer Phillips
                Walter Crouse
                Judy Prichard
                Harold Greear
                Doug White

The following reasons were given to keep the decal ordinance:

  • Decal is more fair

  • People are use to the decal

  • Citizens cannot afford more taxes

  • More taxes is not the answer to the County’s financial situation

  • Need better management of tax payers money

  • Don’t need a wheel tax – decal is sufficient

There being no further comments, the public hearing was closed.

IN RE:  COMCAST

Russell Byrd, representing Comcast, addressed the Board with an update on services being provided to Comcast customers.  Regarding WYMT, efforts are ongoing to get that station back on for the Wise County citizens.  He noted that there have been some technical issues that have hindered making more progress.  He spoke briefly on service calls and the way they are handled and the time frame in which they are answered.

IN RE:  NASA  DEVELOP  GROUP

The NASA DEVELOP Group addressed the Board regarding two of their projects – Virginia Ecological Forecasting, which focused on monitoring mine reclamation in Southwest Virginia and Rwanda Agriculture, which details how their research can help monitor rice cultivation in Rwanda.

IN RE:  SCHOOL BOARD BUDGET

Dr. Perry noted that this budget is basically the same as was presented last year minus the 5% cuts that has been requested by the County. 

Ron Vicars, Director of Business/Finance, stated that the 2014/15 budget is based on an average of 5,800 students. He explained that some of the state funds have been changed because the composite index changed due to the increase in real estate property in Wise County.  There has been almost a 5% jump in the composite index, which lowers the amount of the state income.  The governor’s Education Budget has gotten a substantial increase in state funds for education, which offsets a majority of that drop.  Also, there has been a 15% increase in VRS rates that is built into this budget.  He reviewed the following:

School Operating Budget

  • State Funds
$ 31,407,600
Increase of
$442,600
  • Federal Funds
$   5,996,900
Increase of
$226,300
  • Local Funds
$ 12,722,000
Decrease of
(669,600)
  • Sales Tax
$   5,846,300
Decrease of
(   21,600)
  • Other Funds
$   3,998,300
Decrease of
( 621,600)
Total Revenues
$ 59,971,100
Decrease of
( 643,900)

 

Debt Service Budget

  • Beginning Balance
$        1,500
Increase of
$            800
  • Local Appropriations
$ 2,307,000
Decrease of
($ 1,519,400)
Total Revenue
$ 2,307,000
Decrease of
($ 1,519,400)
  • Total Funds available
$ 2,308,500
Decrease of
($ 1,518,600)

 

Capital Outlay Budget

  • Beginning Balance
$    300,000
Decrease of
($   400,000)
  • Local Appropriation
$    200,000
Decrease of
(   2,500,000)
  • QSCB Bond Proceeds
0
Decrease of
(   3,900,000)
  • Lottery Funds
0
0
  • Lottery & Const. Local Match
0
0
  • Other Funds
0
Decrease of
(21,215,000)
Total Revenues
$     200,000
Decrease of
(27,615,000)
Total Funds available
$     500,000
Decrease of
(28,015,000)

 

Mr. Vicars noted that this budget does not include any raises for employees.

Supervisor Rivers advised Dr. Perry that the Board has asked other components if there is any surplus money in their budgets this year that it be carried forward  to next year’s budget.  Historically, the School Board has had no surplus money .  He asked if there would be surplus money in the school budget this year that could be carried over into next year’s budget.

Dr. Perry stated that the school budget has taken so many hits this year that it has taken any extra money available to take up that slack, and no surplus is anticipated this year.

IN RE:  REFINANCING UPDATE

Kyle Laux, representing Davenport and Jesse Bausch, representing Sands Anderson, provided the Board with a power point presentation on budget strategies to meet the challenges now facing the County.

In December of 2013, Davenport & Company met with Wise County to discuss challenges in balancing the County’s budget.  Due primarily to significant current and projected declines in revenue from coal severance, the budgetary challenges represents a “structural imbalance” and must be dealt with for the County to continue to deliver the same standard of services to its citizens without harming its historical strong financial standing.

In cooperation with County staff, Davenport has preliminary identified a multi-faceted strategy for addressing the County budgetary challenges.  This strategy centers around the need for the County to adapt to the new, lower level of coal severance, which includes a combination of: (1) strategic debt restructuring (2) selective tax increases, and (3) Budget cuts/use of fund balance.

The Challenge

Over the past two fiscal years the County has used approximately $3M of excess Unassigned Fund Balance in order to balance its budget due to the decline in coal severance.  This level of annual depletion is no longer available to the County if it is to remain in compliance with its Policy.

Not only would breaching its Unassigned Fund Balance Policy harm the County’s Municipal Credit ratings, but doing so could impact its ability to operate annually without needing to resort to Tax Anticipation Notes or other interim financing measures in order to pay its bills.

The revenue needed to correct the Structural Imbalance is approximately equivalent to 10 cents on the real estate tax rate.  Raising the real estate tax rate by 10 cents would increase the rate from 57 cent to 67 cents.

The strategy

County staff, working with Davenport, can develop a balanced, multi-faceted, strategy to address the County’s structural budget imbalance for the next several years.

The strategies include:

  • Target debt restructuring to free approximately $1.5M per year of cash-flow for a three year period

  • Target real estate (3 cents) and personal property tax increase (5 cents to 10 cents)

  • Budget cuts/use of fund balance

Rationale

This multi-faceted strategy, which combines Strategic Debt Restructuring with a moderate tax increase as well as other budgetary measures would keep the County in a competitive position vs. its neighbors and signal to the Credit Markets and potential lenders, including the VPSA, that the County is serious about dealing with its structural budgetary imbalance.

The proposed 3 cent real estate tax increase from 57 cents to 60 cents would provide an estimated $1M of additional revenue, and still keep the County’s real estate tax rate in line with the regional average.

Overview:  Restructuring Plan of Finance

As of June 30, 2013, the County had approximately $80M of debt outstanding with the majority of this debt being school-related.

With the majority of the County’s restructuring candidates being VPSA or Literary Loan obligations, the Plan of Finance for the potential restructuring assumes that the restructuring takes place via VPSA.

Historically, as a matter of practice, local governments have not been able to refinance or restructure VPSA Pool Debt at their discretion.

However, given the unique nature of the County’s situation, the County’s Board and Staff – in concert with Davenport and Sands Anderson – were able to convince the VPSA to allow the strategic restructuring of County debt.

Existing Debt Profile – BAN Termed – out

For the purpose of restructuring analysis, Davenport assumed that the BAN is taken out with the anticipated 2% Literary Fund monies and amortized at level principal for 20 years (FY 2018/2037)

Note that due to a lack of funding for Literary Loans in the Commonwealth’s Budget for 5+ years, it is unclear when the County may receive the Literary Loan.

As such, Davenport recommends monitoring the Commonwealth’s funding for Literary Loans in the current budget and forming a plan of action with respect to the Literary Loan based on the outcome of the budget.

Restructuring Approach

Based on the nature of the County’s debt profile, and the extent of the near-term cash-flow requirements, the following County obligations were identified as candidates for the Potential Restructuring:

Potential Restructuring Candidates:
Par Outstanding
6/30/13
Amount to be
Refunded
Literary Loan #1 – Wise Primary
$ 1,480,000
$ 1,295,000
Literary Loan #2 – Coeburn Primary
$ 1,178,227
$ 1,028,227
Literary Loan #3 – Adams Combined
$ 2,000,000
$ 1,750,000
2008A  VPSA Bonds
$ 4,839,341
$ 2,224,925
2011B  VPSA Bonds
$ 28,830,000
$ 6,710,000
Total
$ 38,327,568
$13,008,152

 

The primary objective of the restructuring are:

  • Achieve approximately $1.5M in cash-flow savings per year through FY 2017

  • Preserve the County’s options as it relates to obtaining 2% Literary Loan financing for its $14,885,000 outstanding BAN or some other permanent financing solution if a Literary Loan proves not to be viable due to lack of funding from the Commonwealth; and,

  • Not extend the final maturity of the County’s current aggregate debt profile.

If possible, additional, “Secondary Objectives” of the restructuring are:

  •  If possible, achieve an All-in Interest Cost for the restructuring at or below the current average interest rate; and

  • If possible, minimize the Net Present Value (NPV) cost of the restructuring to the County to under 2% of total County debt outstanding.

Preliminary Results

Preliminarily, the restructuring is estimated at current market rates to meet all five of the Primary and Secondary Objectives:

  •  The County achieves roughly $4.5M in total cash flow savings through FY 2017, or an average of $1.5M per year

  • The 2011 BAN is not included in the restructuring and as such the County will retain all of its options with respect to the BAN, including waiting for a Literary Loan

  • The final Maturity of the restructuring (2037) does not exceed the Final Maturity of the aggregate debt profile of 2037

  • At 3.62%, the estimated all-in Interest cost for the restructuring is estimated to be below the current average interest rate of the restructured bonds (4.13%)

  • At 1.88%, the Net Present Value Cost of the restructuring as a percentage of total outstanding County debt is currently estimated to be below 2%

The Preliminary Timetable for action to affect the potential restructuring was reviewed.

The chart showing the County’s debt profile as of 6/30/13 was reviewed.

The chart showing the preliminary results for the restructuring was reviewed.

The existing debt breakout was reviewed.

Jesse Bausch, representing Sands Anderson, reviewed the proposed resolution before the Board that authorizes the issuance of its general obligation refunding school bond to be sold to the Virginia Public School Authority for the purpose of refinancing and restructuring all or a portion of certain existing general obligation school bonds.  He said this is a standard resolution for restructuring a loan such as this.

IN RE:  RESOLUTION ISSUANCE OF BONDS

A motion was made by J. H. Rivers, seconded by Robby Robbins, to approve the resolution authorizing the issuance of not to exceed $15,500,000 general obligation refunding school bonds of the County of Wise, Virginia to be sold to the Virginia Public School Authority and providing for the form and details thereof.  The motion was unanimously approved.

RESOLUTION # 15 - 2014

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

Finance Administrator Cox reminded the Board that this does not involve any new debt but restructures the existing debt to free up cash flow for the County.

Supervisor Kilgore voiced her concern that they should not do this unless the Board is committed to cutting expenditures.

Supervisor Robbins stated that if the Board is not committed to reducing the debt service, another tax increase will be forthcoming at a much higher rate. Money left from the $9M should go directly toward debt service.  If it doesn’t, the County will be facing another tax increase.  He asked that the Board consider making this official by adopting a resolution on making a motion to that effect.

Finance Administrator Cox said he has talked with Davenport about the Board considering the transfer of that money to a debt service fund from where it is currently allocated to be used for future debt service for this debt and other debt for the school system.  He said this would be his recommendation also.

Supervisor Rivers asked that this be placed on the agenda for next month for Board consideration.

IN RE:  COUNTY FY 2014/15 BUDGET UPDATE

Finance Administrator David Cox, provided a power point presentation on a draft budget for FY 2014/15 as follows:

Reviewed the 2015 Projected Revenues
                Total Funds Required for Balanced Budget…….. $49,747,804

Virginia Budget Not Final

Analysis of Shortfall (Major Adjustments)

  • Local Revenue Decline from FY 2013/14                                 $ 1,979,397

  • Deficit Projected for FY 2015                                                       741,889

  • Total revenue Shortfall                                                           $ 2,721,286

Major Factors in Deficit

  • Regional Jail Increase                                                           $    455,744

  • VRS Rate Increase                                                                    115,000

  • Increased Debt Service Phase IVB Landfill                                   185,341

  • Mandated Increases                                                                    75,000

  • *Note other mandated increases offset with decreases

FY 2014 Year-End Projected Fund Balances

  • Unassigned Fund Balance – 2013                                        $11,033,225

  • Projected Shortfall Revenue                                                 $(2,054,839)

  • Projected Savings Expenditures                                         $     100,000

  • (County Administration & Other)

  • Projected 06/30/14 Fund Balance                                         $9,078,386

*Note our current fund balance policy requires
Approximately $5.5M in reserve

Reserved Fund Balance – schools                                                  $7,049,862
Amount Projected to be Used                                                         (2,400,000)

Projected 06/30/14 Fund Balance                                                   $4,549,862

FY 2014 Year-End Projected Fund Balances
Projected Fund Balances with Current Budget

  • Projected Unassigned Fund Balance – 2014                         $9,078,386

  • Projected Shortfall Revenue vs. Expenditures                           (741,889)

  • Projected 06/30/15 balance                                                 $8,336,497

  • Reserved Fund Balance – Schools                                       $4,549,862

  • Amount Projected to be used for capital needs?                       (200,000)

 

Projected 06/30/15 Fund Balance                                                   $4,349,862

Reductions to Deal with Shortfall

  • Refinance VPSA School Debt                                             $1,500,000

  • 5% Reduction in local funding to schools                                  669,580

  • Proposed change in health insurance                                       115,500

  • Use of surplus loan funds – landfill capital                                 285,000

  • Proposal to close conv. Centers one day a week                         52,338

  • Reductions across departments*                                             300,000

                                                                         Total                   $2,922,418
*Included operation expenditures, debt service, capital outlay
And contributions.  Also health insurance rate change included in
Savings offset by VRS.  Does not include any reductions for mandated
Costs, fire & rescue funds

Changes From Prior Presentation

  • Transfer $13K of CNW operations cost to Wise County PSA (Approved by PSA)

  • Include 250 insurance plan in draft budget

  • Include VRS alternate rate (subject to BOS approval)

  • Further cuts to various departments – approaching average of 4%

Note:  Does not include any full-time personnel cuts

Recommendations
Concerns

  • $1.5M cash flow savings is pushing principal payments out into the future at slightly lower interest rates (Provides current cash flow)

  • Projected continued increases in Regional Jail costs

  • Other one-time savings included in numbers

  • Economic stability of coal is major variable

Options

  • Recommend 3 cent real estate tax increase

  • Recommend 10 cent personal property tax increase

  • Use any surplus revenue to fund debt service fund

  • Budget cuts included do not include personnel cuts

Tax Increase Affect

  • Projected collection real estate at 3 cents is …. $975,000

  • Projected collection Personal Property at 10 cents is ….. $400,000

  • Rescinding decal will be ($100,000) reduction

  • Will cover revenue shortfall of …. $742,000

  • Will provide funds of up to $533,000 to place in debt service fund (Assuming revenue projections are stable) (Funds used to plan for repayment of school debt)

Without refinancing school debt, an additional 5 cents on real estate would be required for balanced budget

Fund Balance

  • Current minimum fund balance policy requires 10% of general fund budget

  • This amount is $5M on a $50M budget

  • My recommendation has been to work toward 15% which would be $7.5M on a $50M budget

  • The 15% target is the policy of many Virginias counties

  • All funding agencies promote balanced budgets for localities

Importance of fund balance

  • Funds to carry the County through economic uncertainty

  • Maintain good credit ratings for Wise County

  • Lower borrowing cost if county borrows money

  • Funds for any emergency situations that the county could face

Supervisor Shortt suggested leaving the decal in place and do away with the wheel tax.  The decal also helps to monitor the convenience centers for those bringing outside garbage into the County.

Supervisor Kilgore suggested more cuts to allow more money to put aside to pay off the debt.  She further suggested closing the convenience centers one day a week plus Sunday.

Treasurer Delores Smith discussed with the Board the methodology that is used in collecting the decal.

PUBLIC EXPRESSION

Amy Bond, Director Lonesome Pine Regional Library, addressed the Board regarding the 5% cut that has been proposed by the Board for the upcoming year.  She explained that the library receives a sufficient amount of state grant aid funding from the Commonwealth of Virginia.  To receive the State provided funding, a library system must meet state mandate requirements.  In the upcoming fiscal year, the library system is estimated to receive approximately $448,865.00 in state aid.  The proposed 5% reduction of $41,000 puts this amount of funding in jeopardy, and could also eliminate the library’s eligibility for federal funds.  She noted that both these funds are essential for the library’s day to day operations.  She asked that every effort be made to allow sufficient funding for the library to meet the statutory requirements without compromising the state and federal funding. 

Harold Greear, a resident of Pound, voiced his opposition to a tax increase.  He noted the burden this would bring on County residents especially those without jobs and those on fixed income.  He suggested cutting the school system more and to cut wasteful spending.

Walter Crouse, a resident of Hurricane, spoke regarding the following:

  • Place a guardrail at the Turkey Branch/Dotson Creek Intersection

  • Repair lines on the County roads that have faded

  • Recycle

  • Do more consolidating of positions to cut cost.  Some positions don’t have enough work to keep busy

  • Cut school funding

Clarence Gilley addressed the Board as a part of the Wise County Chamber Forward Wise County Leadership Program.  One of his assignments was to observe the local government at work.  He was pleased that the governing body has used different solutions to help resolve problems faced by the citizens.  He was pleased with Board members interest in working with the citizens and looking out for their well being.  This, he said, is government at work.

There being no further comments, the public expression period was closed.

BREAK

A break was taken at 9:15 PM
The meeting reconvened at 9:50 PM

IN RE:  CONSENT AGENDA

A motion was made by Ronnie Short, seconded by Steve Bates, to approve the consent agenda as follows:

IN RE:  COMPREHENSIVE PLAN FY 2015

Approved the FY 2015 CIP Plan as presented

IN RE:  SIX YEAR PLAN – PUBLIC HEARING

Set a public hearing (May 8, 2014 @ 6:00 PM) on the proposed Secondary Six-Year Plan for FY 2015 thru 2020 in Wise County and on the Secondary System Construction Budget for FY 2014/15

IN RE:  BLACKWOOD LANDFILL ENGINEERING SERVICES

Authorized advertisement for an RFP for Engineering Services at the Blackwood Landfill

IN RE:  RESOLUTION HONORING PAUL KUCZKO

Approved the resolution honoring Paul Kuczko for his services as Director of Lonesome Pine Office on Youth and the role he has played in meeting the needs of our youth and families in Southwest Virginia since 1980

RESOLUTION #16 - 2014

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

IN RE:  RESOLUTION COOPERATIVE EXTENSION CENTENNIAL CELEBRATION

Approve the resolution honoring the Centennial of The Smith-Lever Act Establishing Cooperative Extension  

RESOLUTION # 17- 2014

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

The motion to approve the consent agenda was unanimously approved.

IN RE:  RESOLUTION SETTING TAX RATES FOR FY 2014/15

A public hearing was held on April 10, 2014 to receive citizens’ comments on setting the property tax rates for FY 2014/15.  Several individuals spoke opposing any increase in taxes.

Supervisor Kilgore suggested setting the tax rates for real estate only at this point, and consider the personal property at another meeting.

Concerns were made regarding the downturn in the economy, the unemployment throughout the County and no State Budget being in place at this time.

Regarding cuts to the library, Attorney Mullins stated that they are waiting on more details on the state and federal funds and other avenues for cuts are being looked at also.

Supervisor Robbins expressed his views on the situation the County has found itself to be in at this time.  He said the Board is reaping the rewards of past actions regarding debt service.  The loss of coal severance came at a rapid pace and the County has been caught in a bind and the only way out is to raise taxes.  He felt the existing schools should have been renovated for consolidation and the debt would have been half as much.  When the $60M debt was being discussed, he said at that time there would be a tax increase to pay for that debt.  It came quicker than expected.
 
A motion was made by Robby Robbins, seconded by Dana Kilgore, to approve the resolution increasing the FY 2014/15 property tax rates 3 cents and take no action on the personal property at this time. 

Supervisor Kilgore was of the opinion that a tax increase is due to coal severance being used for operations rather than infrastructure.  Now that there has been a decrease in coal severance, a tax increase is needed to meet County obligations.  The power plant would have covered the school debt.

Supervisor Bates stated that school consolidation has saved the County money.  Operating six high schools would have doubled the County debt.

Supervisor Rivers reminded the Board that his proposal regarding consolidation included using the savings from school consolidation to offset the debt.  To date, the County has yet to receive one penny from the School Board to help offset this debt.  Other reasons for the shape the County is in at this time is the decline in coal severance, and school debt.  The County has, however, been able to provide a means of cash flow of  $1.5M to restructure some school loans.  The school system has only made the 5% cut that was asked for by the County from all other agencies.     

Supervisor Luntsford suggested having the school system pay ½ of the $1.8M, the cost for refinancing the school debt, which would be $900,000, to alleviate some of the burden off the County.

After discussion, a substitute motion was made by Fred Luntsford, seconded by Robby Robbins,  to restructure the County budget to reflect a $900,000 decrease in the School Budget, which is one half of the cost for refinancing the school debt. 

After discussing Mr. Luntsford’s motion, Supervisor Robbins suggested raising real estate tax 2 cents instead of 3 cents.

Supervisor Kilgore said this would not be sufficient to meet the need and there needs to be extra money put aside in a sinking fund for debt.

Attorney Mullins explained to the Board that the tax rates must be set at this time.  There is a dead line on setting those rates.  She further explained that Mr. Luntsford’s motion is well taken and can be worked into the final budget that goes to public hearing if that be what the Board wants.  But since the School Board has already approved its budget, the time frame for meeting the requirements for re-advertising a change in its budget may not be sufficient. 

Finance Administrator Cox noted that the $1.8M is the cost of the 20 year amortization of the school debt.  

After further discussion, Supervisor Luntsford withdrew his substitute motion and Supervisor Robbins withdrew his second.

Supervisor Luntsford made a substitute motion to raise the real estate tax 1 ½ cents.  Supervisor Robbins seconded the motion.

Supervisor Kilgore noted that this would cause for layoffs of personnel including the courthouse. 

Supervisor River said he felt that voting for this would cause a need for a higher personal property rate.

The vote on this motion follows:

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

Motion failed.

The vote on the main motion to increase the taxes on real estate 3 cents with personal property being voted on at a later date follows:

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

Motion carried.

RESOLUTION #18-2014

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

IN RE:  LICENSE TAX FOR MOTOR VEHICLES REGISTERED WITH DMV (WHEEL TAX)

A public hearing was held on April 10, 2014 to receive citizens’ comments regarding a proposed license tax for motor vehicles registered with DMV that is often called a wheel tax.  One individual spoke regarding the proposed tax.

Attorney Mullins stated that additional information and more planning is needed on the License Tax.  She suggested that this item be considered at a later date.

Finance Administrator Cox recommended considering this tax next year for more research on implementing the tax.  He feels it would be more beneficial to do the personal property rather than the wheel tax.

A motion was made by Robby Robbins, seconded by J. H. Rivers, that the license tax for motor vehicles, or commonly known as wheel tax, be removed from the agenda permanently.   The motion was unanimously approved.

IN RE:  ORDINANCE CHANGE OF REAL ESTATE TAX DUE DATE

Attorney Mullins noted that after the last meeting, and realizing the time involved, it would be helpful to both the Commissioner of the Revenue and the Treasurer to change the tax due date from May 15th to May 31st and from October 15th to October 31st.  This change would give additional time to get the tax tickets out in a timely manner.
 
 A public hearing was held on April 10, 2014, to receive citizens’ comments regarding a proposed change in the real estate tax due dates.  One individual spoke in support of the change.

After discussing the proposed change, a motion was made by J. H. Rivers, seconded by Robby Robbins, to change the real estate tax due date from May 15th to May 31st and from October 15th to October 31st.  The motion was unanimously approved.

AMENDMENT  DUAL REAL ESTATE TAX TICKET ORDINANCE #4-1998

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

IN RE:  ORDINANCE-REPEALING MOTOR VEHICLE LICENSE TAX  ORDINANCE (Decal Ordinance)

A public hearing was held on April 10, 2014 to receive citizens’ comments on rescinding the Motor Vehicle License Tax Ordinance often called the Decal Ordinance.  Several individuals spoke against rescinding the Decal Ordinance.

Attorney Mullins explained that any action taken on repealing the decal ordinance would not take effect until next year because most decals have already been purchased for this year.

After discussion, a motion was made by J. H. Rivers, seconded by Dana Kilgore, to table any action on the Motor Vehicle License Tax Ordinance until next month.  The motion was unanimously approved.

IN RE:  RESOLUTION VRS EMPLOYER CONTRIBUTION RATES

A motion was made by Dana Kilgore, seconded by Steve Bates, to adopt the resolution approving VRS employer contribution rates.  The motion was unanimously approved.

RESOLUTION #19 - 2014

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

IN RE:  BLACKWOOD 2013 GROUNDWATER MONITORING REPORT

A motion was made by J. H. Rivers, seconded by Steve Bates, to authorize the County Administrator to execute the contract for Blackwood 2013 Groundwater Monitoring Report.  The motion was unanimously approved.

IN RE:  PERSONAL PROPERTY TAX DUE DATE

A motion was made by Ronnie Shortt, seconded by J. H. Rivers, to set a public hearing for May 8, 2014 @ 6:00 PM for a proposed change to the personal property tax due date to October 31.  The motion was unanimously approved.

IN RE:  PERSONAL PROPERTY TAX RATE CHANGE

A motion was made by Robby Robbins, seconded by Steve Bates, to set a public hearing to change the personal property tax rate to $1.59.

Supervisor Rivers said he felt the School Board should step in and help the County offset this debt as proposed by Mr. Luntsford, and only increase the personal property tax 5 Cents as was advertised.

Supervisor Shortt noted that he understood that an item cannot be voted on  unless it is an agenda item.  This item was not on the agenda. 

Attorney Mullins said there would need to be a motion to add this item to the agenda for consideration.

Noting the error, Mr. Robbins withdrew his motion and Mr. Bates withdrew his second because this item was not an agenda item.

IN RE:  AGENDA ADDITION

A motion was made by Ronnie Shortt, seconded by Dana Kilgore, to add setting a public hearing for a change in the personal property tax rate.

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

Per agreement by the Board; agenda items added during a meeting must have full support from all members before it can be added to the agenda.

Motion failed due to lack of support from all members.

IN RE:  APPOINTMENT – PLANNING COMMISSION

A motion was made by Robby Robbins, seconded by Steve Bates, to appoint Dana Kilgore to fill the unexpired term of Joseph L. Slemp on the Planning Commission.  The motion was unanimously approved. 

IN RE:  APPOINTMENT – LONESOME PINE YOUTH SERVICES BOARD

J. H. Rivers nominated Jairus Wade to the Lonesome Pine Youth Services Board.

Ronnie Shortt made a motion that nominations cease and Jairus be appointed by acclamation.  J. H. Rivers seconded the motion.  The motion was unanimously approved.

IN RE:  CLOSED SESSION

A motion was made by Ronnie Shortt, seconded by Virginia Meador, to go into closed session as permitted by the Code of Virginia per the following Code Sections:

  • Section 2.2-3711(A)(6)   Investing of public funds

                                              (A)(1)      Personnel

The motion was unanimously approved.

After closed session, a motion was made by Dana Kilgore, seconded by Fred Luntsford, to reconvene the regular meeting.  The motion was unanimously approved.

IN RE:  RESOLUTION CLOSED SESSION

A motion was made by Fred Luntsford, seconded by Ronnie Shortt, to approve the resolution certifying that only public business matters lawfully exempted from open meeting requirements as were identified in the motion convening the closed meeting were discussed or heard by the Board of Supervisors.  The motion was unanimously approved by roll call vote.

RESOLUTION #20 - 2014

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

IN RE:  STORMWATER MANAGEMENT PROGRAMS RFP

A motion was made by Ronnie Shortt, seconded by Dana Kilgore, to authorize the advertisement of a RFP for administration of erosion and sedimentation control and stormwater management programs.  The motion was unanimously approved.

IN RE:  EARLY RETIREMENT INCENTIVE

Finance Administrator advised the Board that there was limited interest in the early retirement incentive that was offered to the County employees.  He recommended the early retirement incentive be denied.

A motion was made by Ronnie Shortt, seconded by Steve Bates, to not approve the retirement package that was offered to the County employees due to lack of interest.  The motion was unanimously approved.

ADJOURN

A motion was made by Dana Kilgore, seconded by Robby Robbins, to adjourn the meeting at 11:36 PM.  The motion was unanimously approved.

ATTEST:                                                                      WISE COUNTY BOARD OF SUPERVISORS

 

__________________________________                     _____________________________________
Shannon C. Scott, Clerk                                                                 Robert R. Adkins, Chairman

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