Supervisors amend budget process to cope with downturn

Facing an uncertain economic future, the Albemarle County Board of Supervisors has directed staff to further involve the School Board in the budget process and explore new methods of funding capital projects.
Those were the top two priorities identified by supervisors at a Wednesday meeting to develop a strategic plan to guide budget decisions during the next two years.
“We’re going to be living with the reality of reduced services levels and reduced resources,” said Tom Foley, the deputy county executive. “It’s a whole new future going forward.”
Since 2000, the county’s population has increased by about 12,000, according to data from the University of Virginia’s Weldon Cooper Center for Public Service. In that year, the county brought in about $65 million in property taxes. That figure had doubled by 2007 because of rising property assessments and population growth. Since then, local, state and federal revenues have been decreasing.
“The new economy is about redefining government over the long term in a significantly adjusted economic framework,” county spokeswoman Lee Catlin said. “Even if we do begin to see some stabilizing, and some positive signs, that is not an indicator that things are going back to the way they were.”
In previous years the board has held a planning retreat in the fall to kick off its involvement with the budget. However, the meeting was moved up to summer because a majority of supervisors asked to be involved with the next budget from the beginning.
All six supervisors agreed that the process by which schools are funded was the highest priority for study by county staff in the coming year. More than 60 percent of the county general revenues are transferred to the school division.
“We need to have a better understanding of where the money is spent and offer [the School Board] suggestions for change,” Supervisor Duane Snow said.
To try to build that understanding, both boards will hold at least four joint meetings during the budget process, beginning with a joint retreat in August. A second meeting in October will cover how the school division builds its budget.
Another effect of the downturn in county revenues has been decreased funding for the capital improvement program. In 2008, the county spent $42.4 million on capital projects for both schools and general government. It expects to spend about $8.1 million in the current fiscal year.
“We’re down to just a maintenance level of funding,” Foley said.
Supervisor Dennis S. Rooker said he wants to consider setting a target amount to set aside each year, and to suggest ways in which money could be reallocated toward priority projects. Supervisor Kenneth C. Boyd suggested that staff investigate if money could be saved by expanding the service life of county-owned vehicles to lengthen time between replacements.
Another area singled out by the board for discussion was the future of Albemarle County’s participation in the Jefferson-Madison Regional Library system. Several supervisors said they would like to alter the 1991 agreement that governs how the system is funded. Under the terms of the agreement, the county and city jointly fund the two branches in Charlottesville as well as Northside Library in Albemarle County.
“I’m fundamentally opposed to us paying 60 percent of the costs for the downtown Charlottesville library,” Snow said.
Staff will prepare a list of options for the board to consider before a joint meeting with the library system’s Board of Trustees. One option could involve a cost estimate for how much it would cost the county to operate an independent library system.
The board was also given details of how next year’s budget will be developed. A majority of supervisors requested it be put together using zero-based budgeting principles, meaning it is built from the ground up. Beginning this year, the board will have the opportunity to review detailed line items for the budgets of at least two departments.
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