08-16-2012 Special MeetingSPECIAL MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF
SUPERVISORS HELD THE SIXTEENTH DAY OF AUGUST IN THE
YEAR TWO THOUSAND AND TWELVE
PRESENT: Alan E. Casteen, Chairman
JoAnn W. Hall, Vice - Chairman
Rex W. Alphin
Byron B. Bailey
Delores M. Darden
Also Attending: Mark C. Popovich, County Attorney
W. Douglas Caskey, County Administrator
Carey Mills Storm, Clerk
Chairman Casteen called the special meeting to order at 4:00 p.m. for
the purpose of discussing financial matters of the County.
Mr. Michael W. Terry, Director of Budget and Finance, updated the
Board relative to a change in the year -end project schedule, a copy of which
was originally provided to the Board at its July meeting and is included as
Attachment (A) to these minutes. He advised that he will have changes to the
FY2012 preliminary financial report for the Board at its September 20, 2012
meeting. He advised that he had previously indicated that he would have
preliminary first quarter FY2013 information for the Board at its September
20, 2012 meeting; however, that information will now be provided to the
Board at its October 18, 2012 meeting.
Relative to the approaching bond market trip, Mr. Terry advised that he
anticipates the County to break even; however, debt service expenditures and
unfunded mandate expenditures associated with Social Services, CSA, E -911
are still being assessed, as well as the impact on the general fund support
relative to the Fair and Museum.
Supervisor Darden, referencing the PACE Program, inquired if County
Department Heads have been notified about any funds that remain in their
accounts that need to be rolled over into next year.
Mr. Terry responded that all County Department Heads have been
notified and PACE is one of those programs with remaining earmarked
funds.
Supervisor Alphin inquired about the line item under the Unassigned
Fund Balance which reflects a deficiency in the Machinery & Tools tax.
Mr. Terry responded that a placeholder has been added based on
communications from the Commissioner of the Revenue for a certain amount
of fiends to be set aside for operations.
Chairman Casteen requested Mr. Terry to create a line item on the
schedule for long -term debt.
Supervisor Alphin requested Mr. Terry to create a line item for the debt
payment which includes the schools.
Chairman Casteen requested Mr. Terry, in conjunction with the
Director of General Services, to draft a preliminary report on a quarterly
basis identifying water revenues.
Gerald H. Gwaltney, Commissioner of the Revenue, utilizing a
PowerPoint presentation identified as "Attachment B" to these minutes,
advised the Board regarding a decrease in real estate property values
averaging 6 %. He advised the Board an increase of $.04 per $100 in the
County's tax rate is required in order to neutralize the County's revenues. He
advised additional revenue is anticipated from the Machinery and Tools tax,
but the exact amount will not be known until after the first of the year. He
advised the Board that it would need to conduct a public hearing and set the
tax rate change by its September 20, 2012 meeting as a delay in real estate
will also result in a delay in personal property billing because staff cannot
generate personal property bills until the real estate tax rate is set.
Supervisor Hall inquired if a public hearing is required if the Board
votes to make the tax rate revenue neutral.
County Attorney Popovich advised there is no specific requirement in
the Code of Virginia for a public hearing if revenue is neutral as there is no
tax increase consequence to the citizens of the County; however, the Board
could chose to conduct such a public hearing at its discretion. He advised
that it would be better if the Board would act on the tax adjustment rate at
this meeting rather than waiting until its next meeting so that staff can inform
the bond rating agencies of the Board's action.
Chairman Casteen requested County Attorney Popovich to advise the
rating agency that significant additional revenue from International Paper has
been identified which was not anticipated and not included in the budget.
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At 4:50 p.m., Chairman Casteen declared the finance meeting
adjourned.
Alan E. Casteen, Chairman
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Carey Mill Storm, Clerk