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4-06-2023 Work SessionWORK SESSION OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD IN THE ROBERT C. CLAUD, SR. BOARD ROOM OF THE ISLE OF WIGHT COUNTY COURTHOUSE LOCATED AT 17090 MONUMENT CIRCLE, ISLE OF WIGHT, VIRGINIA ON THURSDAY, THE SIXTH DAY OF APRIL IN THE YEAR TWO THOUSAND AND TWENTY-THREE BOARD MEMBERS PRESENT: William M. McCarty, District 2, Chairman Joel C. Acree, District 4, Vice -Chairman Richard L. Grice, District 1 Don G. Rosie, II, District 5 Rudolph Jefferson, District 3 STAFF MEMBERS PRESENT: Randy R. Keaton, County Administrator Donald T. Robertson, Assistant County Administrator Robert W. Jones, Jr., County Attorney Carey Mills Storm, Clerk CALL TO ORDER Chairman McCarty called the work session to order at 6:00 p.m. INVOCATION Supervisor Rosie delivered the invocation and led the Pledge of Allegiance. APPROVAL OF AGENDA Supervisor Rosie moved that discussions regarding an Energy Task Force and Dominion Energy be added to the agenda. The motion was adopted unanimously (5-0) with Supervisors McCarty, Acree, Rosie, Grice and Jefferson voting in favor of the motion and no Supervisor voting against the motion. Dispatchers from the Isle of Wight Sheriff's office were recognized followed by a motion by Supervisor Grice that the following Resolution be adopted: RESOLUTION TO DESIGNATE THE WEEK OF APRIL 9-15, 2023 AS NATIONAL PUBLIC SAFETY TELECOMMUNICATORS WEEK WHEREAS, emergencies can occur at any time that require police, fire or emergency medical services; and, 1 WHEREAS, when an emergency occurs the prompt response of police officers, firefighters and paramedics is critical to the protection of life and preservation of property; and, WHEREAS, the safety of our officers and firefighters is dependent upon the quality and accuracy of information obtained from citizens who telephone the Isle of Wight County emergency communications center; and, WHEREAS, Public Safety Telecommunicators are the first and most critical contact our citizens have with emergency services; and, WHEREAS, Public Safety Telecommunicators are the single vital link for our police officers and firefighters by monitoring their activities by radio, providing them information and ensuring their safety; and, WHEREAS, Public Safety Telecommunicators of the Isle of Wight County Emergency Communications Center have contributed to the apprehension of criminals, suppression of fires and treatment of patients; and, WHEREAS, each dispatcher has exhibited compassion, understanding and professionalism during the performance of their job in the past year. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Supervisors of the County of Isle of Wight, Virginia that the week of April 9-155 2023 be designated as National Public Safety Telecommunicators Week in honor of the men and women whose diligence and professionalism keep our County and citizens safe. BE IT FURTHER RESOLVED that the Board urges all citizens to take note of this special week and give due honor to our County's Public Safety Telecommunicators. The motion was adopted unanimously (5-0) with Supervisors McCarty, Acree, Rosie, Grice and Jefferson voting in favor of the motion and no Supervisor voting against the motion. Supervisor Jefferson recommended that the Resolution be displayed on all marquees throughout the County in honor of its dispatchers. Paul Matticks, VDOT Residency Administrator, introduced Shannon Ternes, an engineer in the VDOT Special Projects Department, who addressed the Board regarding the lifting cables replacement project to be performed on each of the towers of the James River Bridge. Chairman McCarty remarked that patients being transported to Riverside Hospital or Hampton Sentara could be put at risk during the bridge closure and he inquired if VDOT has contacted any first responders. Mr. Ternes responded that VDOT is currently in the process of doing that. 2 When asked if the James River Bridge lift cable project could be postponed until after the new Riverside Hospital is built in the County, Mr. Ternes responded that funding is already in place for that project and deferring it could potentially complicate funding scenarios for other VDOT projects. He encouraged the Board to contact VDOT with any concerns as that project is not anticipated to be awarded until late August or early September. Responsive to Supervisor Grice's inquiry if other needed bridge maintenance could be done while the bridge is shut down, Mr. Ternes replied that VDOT needs to be 100% focused during the cable replacement project and would not want another component to risk delaying the reopening of the bridge. Supervisor Rosie inquired how VDOT would address something unexpected happening during the replacement of the cables. Mr. Ternes responded that VDOT engineers and the contractor will be on site the entire construction period and will be able to make decisions very quickly. Supervisor Grice inquired if a barge not large enough to require bridge openings would be able to pass under the bridge. Mr. Ternes replied that VDOT has developed plans delineating a maximum range that a barge can be in the channel. Mr. Chris Gullickson, Director of Development & Transportation Policy, Virginia Port Authority, provided an update on the Port of Virginia and its six terminals. He stated the Port was a relief valve and benefited the entire supply chain nationwide and the Commonwealth in being able to attract new opportunities and investments to the State of Virginia. He stated that the Port Authority owns the following facilities: Norfolk International Terminals; Virginia International Gateway; Newport News Marine Terminal; Virginia Inland Port; Portsmouth Marine Terminal; and, Newport News Marine Terminal. He advised that the Port runs a fleet of 20,000 chassis, with an average age of 3.6 years old and has access to many markets and witnessed record growth during COVID. Supervisor Grice advised that the Board has been asked by a member of the Smithfield Town Council that the size of the Energy Task Force be increased to include a member from Windsor and Smithfield. It was the consensus of the Board that no action was necessary as the two existing at -large seats can be filled with Town Council from either Town. Supervisor Acree requested that a Dominion Power representative be invited to speak to the Board regarding the new meters that are being installed. Specifically, this representative should know the intent of the new meters and if there are any programs available for people already struggling to pay their power bills. County Administrator Keaton offered to make the necessary arrangements to have a Dominion Power representative speak to the Board. Following a break, County Administrator Keaton delivered the following message: Honorable Members of the Board: I am pleased to submit the FY 2023-24 budget for Isle of Wight County to the Board of Supervisors and our citizens. This Budget was prepared to meet the needs of a growing community by providing cost efficient and effective public services. The team of staff responsible for preparing the budget has attempted to create a document that is more transparent and understandable to every citizen and addresses the basic responsibilities of local government. The FY 2023-24 budget is notable for the fact that for the first time in 16 years, there will be a proposed reduction in the real estate tax rate from $.85 to $.75. The personal property tax rate has been returned from $3.90 to $4.50. One penny of real estate tax is expected to generate $618,500 based on preliminary information from the reassessment company. One of the key priorities for the upcoming fiscal year is to fund the necessary functions of Isle of Wight County while preparing for future needs. The General Fund budget totals $94,079,563. The largest source of these funds is from General Property taxes ($70.3 million) or 75% of the budget. The largest uses of County funds are for Education ($30.1 million, 32%), Public Safety ($15.9 million, 17%), and Debt Service ($12.1 million, 13%). Our goals include diversifying our revenue sources to become less dependent on property taxes and reducing debt service as a percentage of our expenditures. Revenue Highlights Real Property Taxes — Housing starts declined slightly in 2022 (-3% from the previous year) but at a slower rate. There were 302 housing starts in 2022 compared to 312 in 2021. In 2022, 84% of all housing starts occurred in the northern end of the county, 56% in the Newport District and 27% in the Town of Smithfield. Commercial development and construction were basically non-existent in FY23 and represented only 1% of the total new construction assessments. A 23.5% change in assessments is forecast for FY 24 with total value of $6,146,792,000 and revenue of $45,108,737 based on the proposed tax rate of $.75 and a collection rate of 98%. Personal Property — Motor Vehicles — The value of used motor vehicles declined by 9% in 2022 relative to 2021 according to J.D. Power. In response to the decrease in values, the Board of Supervisors voted to return the personal property tax rate to its previous rate of $4.50. The Car Tax Relief percentage increased from 35% to 37%. A 4% growth is forecast for FY 24 with revenue of $14,100,000. 4 Machinery & Tools Tax —The Machinery and Tools category has experienced volatility during the past three years. An increase of 1% over current revenues for the M&T tax is expected to generate revenue of $5,190,000. Sales & Use Tax —The U.S. Supreme Court Case of South Dakota v. Wayfoir ruled that states may charge sales tax on purchases made from out-of-state sellers. The 2019 Virginia General Assembly adopted legislation enabling the Commonwealth to collect sales tax on out-of-state sellers. This has resulted in an increase in sales tax to the state and localities. Online sales tax now represents nearly 36% of all retail sales for Isle of Wight County. An increase of 6% is forecast for the current fiscal year compared to last year. The upcoming year's revenue forecast of 3% growth will generate $4,300,000 which is an increase of 7.5% over the FY23 budget. Public Service Corporation Taxes — Public Service assessments are adjusted annually based on the real estate sales ratio as determined by the Department of Taxation. As real estate sale prices exceed assessments, the county's sales ratio declines. It is anticipated that the assessments will decrease 3.7% in the next fiscal year which will result in revenue of $1,350,000. Recordation and Wills Tax — The tax on recordation of real property has followed the real estate market and continued to increase over the last several years. After collecting $906,000 in FY21, we saw a decline to $852,700 in FY22. I am projecting $700,000 for FY24 which is a decrease of $150,000 over last year's budgeted amount. Building Permits — Building permit fee revenue reflects the decrease in housing starts throughout the County. $591,000 was received in FY22 and we expect to collect more than $400,000 in FY23. I am estimating $400,000 in FY24 which is a decrease of $150,000 over last year. Utilities Fund — Due to a 5.7% increase in the price of water from the Western Tidewater Water Authority, a 59-cent increase in the price/1000 gallons of water is proposed. This will result in a monthly increase of $2.95 or 3.9% for the typical customer who uses 5000 gals/month. Expenditure Highlights Public Schools — An increase of $2,791,814 is proposed in local operating funds for the Isle of Wight County Public Schools. A restoration of the local capital maintenance appropriation in the amount of $250,000 is also proposed. $715,830 is included in debt service to finance $7.9 million in improvements at Smithfield High School and Windsor High School for enhanced Career & Technical Program options for students. Public Safety — The budget continues the replacement schedule for Sheriff's Office vehicles by lease financing 7 new vehicles. A part-time kennel assistant in the Animal Control department is proposed to be upgraded to a full-time Shelter Manager. Fire and Rescue Response — In previous years, emergency volunteer responders who lived in Isle of Wight County could receive a tax credit for one vehicle up to $500. A revised program was approved in FY23 which provides all volunteer responders regardless of where they live or the value of their vehicle with a payment based on 5 years of service. The annual payment ranges from $100 to $500. The total cost of this program is $115,000. Public Works — The bulk of the increase in Public Works is a result of a $2 increase in tipping fees by SPSA and an estimated increase of 1000 tons of solid waste. Debt Service — Older debt service payments reached their peak in FY20 and have continued to decline. Bonds totaling $18.5 million were issued in February 2022 to fund the remainder of Hardy Elementary School, the replacement of Fire and Rescue equipment and other County projects. Our total Debt Service budget for the General Fund in FY24 will be $12.1 million. $7.4 million of the payments will be for principal. PPrtnnnPl Isle of Wight County competes for employees across the Hampton Roads region. We completed a new compensation study in FY23 which brought our salary ranges more in line with our neighboring localities. To maintain our competitiveness, I have included a 4% general wage increase plus an annualized payment of $1,000 for all full-time employees. The effective increase will range from 7.5% for our lower paid employees to 4.5% for higher paid employees. Part-time employees will receive a pro -rated amount. The County's contribution for Deferred Compensation has not increased in over 19 years. A $15/month increase is proposed which will bring the total to $50/month that is offered to employees on a matching basis. We currently have 195 employees that participate in deferred compensation. The increase will cost approximately $35,000. A vision/dental plan is proposed for employees that already have Health Insurance such as those with TRICARE. We estimate ten employees will be eligible with a County cost of $11,746. The employees will pay 19% of the total cost. Employees who decline our insurance represent a significant cost savings for the County but those plans often do not have adequate vision and dental coverage. We anticipate that this benefit will make us more competitive in attracting qualified employees. The County Health Plan experienced another good year with a 1.6% increase in rates. We are continuing the same County/Employee cost sharing plan for health insurance established in FY20. We are also continuing the High Deductible Health Plan (with Health Savings Account) which was added last year. This plan has the potential to provide savings for employees and the County. New Positions Six new full-time positions are proposed in the FY24 budget, (Emergency Services, Parks and Recreation, and Public Works. One new part-time position is proposed in Commonwealth Attorney and two current part-time positions are proposed to be converted to full-time positions, (Animal Control and Voter Registrar) M Fleet Upgrades In addition to new vehicles for the Sheriff's department, a total of 5 other vehicles are proposed to replace aging or high mileage vehicles in the following departments: Public Works, Parks and Recreation, and Emergency Services Capital Budget Consistent with the Board's adoption of the FY24-33 Capital Improvements Program, a Capital Budget of $7 million is included to move various capital projects forward. Significant capital expenditures include Parks & Recreation (Tyler's Beach) $750,000, Water line and Water tank projects ($3.1 million), Capital Reserve $500,000 and various Transportation projects ($2.2 million). The Capital Budget is fully funded with existing bonds, General Fund transfer, and grants. Acknowledgements I would like to thank all the Constitutional Officers, Department Heads, and staff for submitting conservative and well -researched budget requests. I have been impressed with the creativity and cost -saving suggestions from all our staff. I would especially like to thank Don Robertson, Stephanie Humphries, Teresa Morgan, and Marina Hitchings for organizing the budget requests and preparing countless budget scenarios. This has truly been a team effort. County Administrator Keaton provided an overview of the proposed FY2024-33 Capital Improvements Program (CIP) which has been drafted for the Board's review in the amount of $7 million. County Administrator Keaton informed the Board of a request received from the School Division for additional funds for school security in the amount of $2 million, the new Westside Elementary School and the enhancements to the fleet building. County Administrator Keaton informed the Board that the School Division is having a tough time working with Columbia Gas to serve the new Hardy Elementary School. He stated if Columbia Gas is not successful in getting their line upgraded and put in place, it could impact the start of the new school. ADJOURNMENT At 8:50 p.m., Chairman McCarty declared the work session adjourned. William M. Mc , Sr., Chairman • . it .r�I .�rl . ��• r r Mr k - - •