VIRGINIA: At a Work Session of the Board of Supervisors of the County of Patrick, held at the Patrick County Veteran's Memorial Building on Monday, March 24, 2025, at 5:00 p.m. PRESENT: Jonathan Wood - Chair, Andrew Overby - Vice-Chair, C. Clayton Kendrick, Jr., Steve Marshall - Board Members. ABSENT: Doug Perry STAFF PRESENT: Beth Simms, County Administrator; Amy Walker, Clerk; Donna Shough, Assistant County Administrator, Human Resources Director; Lori Jones, Finance Director. Others present: Taylor Boyd - The Enterprise. Jonathan Wood called the meeting to order. Jonathan Wood gave the invocation. The Board recited the Pledge of Allegiance to the Flag followed by a moment of silence in honor of U.S. military serving here and abroad as well as public safety personnel. Approval of the meeting agenda: On a motion by Steve Marshall to approve the agenda as presented, seconded by Clayton Kendrick and carried unanimously. Voting Aye: Marshall, Kendrick, Perry, Overby, Wood Voting Nay: None March 24, 2025 Page 1 Closed Meeting: Pursuant to Section 2.2-3711 of the Code of Virginia, Andrew Overby moved that the Board convene in closed meeting pursuant to Virginia Code section 2.2-3711(a)(1) to discuss and consider the following personnel matters: Public Service Authority = Blue Ridge Dan River Alcohol Safety Action Program (ASAP) = At-Large, And pursuant to Virginia Code section 2.2-3711(a)(30) to discuss the award of a public contract involving the expenditure of public funds and terms or scope of such contract where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the County, seconded by Steve Marshall and carried unanimously. WHEREAS, the Patrick County Board of Supervisors has convened an executive meeting on this date pursuant to an affirmative recorded vote and in accordance with provisions of the Virginia Freedom of Information Act, and WHEREAS, Section 2.1-344.1 of the Code of Virginia requires a certification by the Board that such executive meeting was conducted in conformity with Virginia law, NOW, THEREFORE, BE IT RESOLVED that the Patrick County Board of Supervisors does hereby certify that, to the best of each member's knowledge, only such public business matters as were identified in the motion convening the executive meeting was heard, discussed or considered by the Board, BE IT FURTHER RESOLVED that the Patrick County Board of Supervisors does hereby certify that, to the best of each member's knowledge, only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification resolution applies. Roll Call: Marshall - aye Kendrick = aye Perry - absent Overby = aye Wood = aye March 24, 2025 Page 2 Doug Perry joined the meeting. Reconvene: Doug Perry moved that the Patrick County Board of Supervisors return to open session, seconded by Clayton Kendrick and carried unanimously. Roll Call: Marshall = aye Kendrick - aye Perry = aye Overby = aye Wood = aye Doug Perry moved to certify that to the best of each member's knowledge (i) only public business matters lawfully exempted from open meeting requirements and (i) only such public business matters as were identified in the motion to enter into closed session were heard, discussed or considered during the closed session seconded by Steve Marshall. Roll Call: Marshall = aye Kendrick - aye Perry = aye Overby = aye Wood = aye Action: None. March 24, 2025 Page 3 New Business: Mr. Sam Irby, Innovative Solutions = Health Insurance Update: The proposed FY 2025-2026 proposed budget includes $1,866,243 for health insurance premiums for 187 full-time employees. The Anthem increase of $355,872 would bring this total to $2,222,115. $2,154,103 is required to fund the 138 employees currently enrolled in the health insurance for the FY 2025-2026 plan year. Of this amount, $1,739,000 is the employer portion. The remaining $415,103 is paid through employee payroll deductions. Since it would be unprecedented that all full-time employees enroll in the county's health insurance, it would seem sufficient to increase the proposed budget by $200,000 for the employer portion with the employee share remaining consistent. Mr. Irby reviewed the RFPS for employee health insurance and recommended that the County continue with Anthem. March 24, 2025 Page 4 INNO ATIVE INSURANCE GROUP Patrick County EXECUTIVE SUMMARY March - 2025 This year's Anthem renewal increase was high due to claims, and it was decided to send the account out to bid in hopes of obtaining better pricing. Anthem's requested increase was approximately $500,000. The Innovative Insurance Group (IIG) team along with the Patrick County administrative team reviewed the proposals for health insurance coverage per the RFP released for FY26. Proposals were received from: 1. The. Jefferson Health Plan Medical Self-Funded 2. Anthem Medical Fully Insured and Self-Funded 3. Sentara Health Medical Self-Funded and ASO 4. Gateway Self-Funded Based on our review of the proposals, the benefit plans offered by Anthem, Jefferson Health, and Sentara Health are similar and are priced competitively. Based on the analysis we reached out to Anthem and asked for price concessions. The underwriter agreed to a $125,875 price concession without any change in benefits on March the 4th. We asked for a further price reduction, and they agreed in good faith to reduce their price by an additional $20,000 leaving the annual increase to cover current employees at $355,872. As you can: see in the attached workbook, all the carrier pricing is around $2,100,000. Since Anthem's pricing isi in line with the other carriers, we, and your administrative team, would suggest that you renew with Anthem for the FY 26 contract year and avoid disrupting your employees. In addition, it is our hope that since the County passed much of last year's increase on to the employees, that this year the County can add the $355,872 increase into its budget and not increase the employees' cost. Ihave enjoyed collaborating with your team and I appreciate their time, research, and effort on behalf of the County and its employees. We look forward to helping this year with your open enrollment and any other needs and you again you your employees have. Respectfully submitted, Soris h4y Chartered Financial Consultant March 24, 2025 Page 5 On a motion by Steve Marshall to approve that Anthem be awarded the health insurance contract for fiscal year 2025-2026 for fully insured coverage with the county assuming the full cost of the premium increase, and that $200,000 be added to the proposed budget for the increase in premiums seconded by Doug Perry and carried unanimously. Voting Aye: Marshall, Kendrick, Perry, Overby, Wood Voting Nay: None Mr. Jason Wood, Patrick County Public Schools Superintendent - Budget Update: Mr. Wood reviewed the school budget and is requesting the appropriation board to provide the required local effort/required local match. Patrick County Public Schools 2025-2026 Budget March 24, 2025 Page 6 Fiscal year 2025-2026 Approved ESSER/CARES Other Amendments Total Budget ESSER Employee Costs 2022- 2023 34,847,872.81 4,757,619.68 1,064,275.91 40,669,768.40 1,162,293.50 2023- 2024 36,775,551.98 1,708,560.80 1,777,180.71 40,261,293.49 730,762.50 2024- 2025 37,396,008.98 1,753,493.22 39,149,502.20 2025- 2026 36,747,259.98 36,747,259.98 * 5% Faclities $787,263.80 School Foods Service $1,751,968.48 Administration. andAttendance &Health 52,151.,179.14 % Blechnology $2,197,886.27 - PupilTransportation $2,598,135.44 65% Operation and Maintenance $3.239,911.36 - Instruction $24,020,915.49 PATRICK COUNTY PUBLIC SCHOOLS 2025-2026 Proposed Expenditure Budget March 24, 2025 Page 7 Categories Instruction Fac. & Maint. Transportation Technology Administration State Guidance 60-65% 10-15% 3-5% 3-5% 6-10% PCPS 65% 11% 7% 6% 6% Instruction $24.020.915.49 - Operation and Maintenance $3.239,911.36 e Pupil Transportation $2,598.135.44 Technology $2,197,886.27 - Admin.Altendance, Health $2.151,179.14 Food Service $1.751,968.48 Facilities $787.263.80 Total $36.747,259.98 Fiscal year 2025-2026 2024-2025 2025-2026 FROM STATE FUNDS Budget Budget Ditference 2225 ADM 2135 ADM Standards ofQuality Programs 240202 Basic Aid 11,912,646.00 11,229,180.00 (683,466.00) 240308 Sales Tax Receipts 2,911,619.00 3,039,584.00 127,965.00 240214 Textbooks 268,124.00 257,279.00 (10,845.00) 240217 Vocational Education 247,798.00 237,775.00 (10,023.00) 240207 Gifed Education 105,482.00 101,215.00 (4,267.00) 240212 Special Education 1,508,556.00 1,447,535.00 (61,021.00) 240223 VRS Retirement 1,393,028.00 1,335,074.00 (57,954.00) 240221 Social Security 647,959.00 621,749.00 (26,210.00) 240241 Groupl Life 40,184.00 38,558.00 (1,626.00) Englishl Learner Teacher Payments 112,759.00 103,094.00 (9,665.00) At-Risk 2,235,007.00 2,147,533.00 (87,474.00) 21,383,162.00 20,558,576.00 (824,586.00) March 24, 2025 Page 8 Fiscal year 2025-2026 2024-2 2025 2025 2026 FROMS STATE FUNDS Budger Budget Diflerente 2225ADM 2135A ADM Incentive Progroms 240211 Compensati on Suppi ement 457.90000 891.20:.00 433.301.00 240265 At-Risk 240281 Virginia Preschooi nitiative 450,055.00 (450,055.00) 240900 Supple ementai GFPayments inlieuofFood & Hygis iene Tax 463,823.00 456,563.00 17.260.00) ALLI inPerP Pupi Funding 240899 Rebenchmarkingr HoidHarmiess 410405 Tachnglogy VPSA 232,000.00 232,000.00 1,603,778.00 1,579,764.00 (24,014.00) Categorical Progroms 240215 School Lunch 11.725.00 13,690.00 1,965.00 240246 Special Education- Homebound 17.277.00 21,314.00 4,037.00 240295 Special Education- Jail 5 1,184.00 1,387.00 203.00 30,186.00 36,391.00 6,205.00 Fiscal year 2025-2026 24 2025 2025 209h FROM: STATE FUNCS Budget Ruizet Ditherence 2225ADM 2135 ADM Lottery-Funded Programs 340205 Foster Care 59.819.00 4146700 118.352.00) 240265 A:-Risk 816.961.00 773.389 CO (43.572.00) 240228 Early Reading intervention 13454200 12172900 (12,815.00) 340291 Mentor Teachi ing 259.00 921.00 68200 240275 K3P Pr mary Clas:szeReductien 659.089.00 57134000 167.749.00) 240215 Schoo Break'ast 46,687.00 40.29700 6.390.00 240405 S0L Agebra Readiness 52,41600 49.249.00 13.167.00) 240445 ProectGraduaticn 3.917.00 5,91700 240205 SAEP 8,203.00 8.027C0 (176.00) 240253 Career andTechnical Education 41.52100 56,498.00 15.023.00) 240286 nfrastructure and OperationsPerPup 747.99000 645,058.00 1104.952.00) 240248 Speci al Education Reg ional Tuition 76,014.00 258.515.CC 182,499.00 2,627,398.00 2,548,385.00 (79,013.00) March 24, 2025 Page 9 Fiscal year 2025-2026 2024-2025 2025-2025 FROM STATE FUNDS Budzet Budget Difference 2225 ADM 2135 ADM Early Childhood Care and Education Progroms Virginiap Preschool initiative 502.562.00 502.562.00 Virg iniaF Preschool Initiative AdditionalPrograms 502,562.00 502,562.00 Totol Statel Funds 9 25,644,524.00 5 25.225.678.00 (418.846.00) Fiscal year 2025-2026 2024 2025 2025 2026 FROM FEDERAL FUNDS Buciset Budger Differente 2225 ADM 2135 ADM 105530 Schooi Breakfast Program Meai Rem. 577,508.80 577.508.80 105550 National Schoci LunchProgram? Meal Reim. 1.156.203.90 1.156.203.90 840020 Basic AduitEducation 50,89178 50.891.78 840100 Titie 842.56..00 B42,561.00 840270 Titevi B- IDEAFIow Through 672.59256 672.592.56 84C480 Carl Perkin ns -Vocatic ional 55,65215 55.65215 841730 Pre-school Handicapped (ECSE) 22,04629 22,04629 843580 Titiev Part3- Rural & Low ncome Program 71.146.00 71,146.00 845650 Title Limited Engii ishProficient 5,140.00 5.140.00 843670 Titie - PartA Supporting Elfective instr. 115,85352 113,853.52 $44240 Titie V- PartA- Students Support& AcademicE Enric ichnient 59,856.24 59,856.24 3,627,432.24 3,627,432.24 TotalFederalFunds 3,627.132.24 627.45221 March 24, 2025 Page 10 Fiscal year 2025-2026 2024 2025 2025 2026 FROM OTHER FUNDS Budget Rudget Dilfe erence 2225 ADM 2135ADM 150201 Rents for Facil ities 1,25000 1.250.00 161202 Speci al Fees from Students 15,000.00 15,000.00 161204 School Food Service Cash Received 132.452.10 132,452.10 161205 Transportations ofs Students 42.055.64 42,055.64 180303 Other Rebates and Refunds 425,000.00 425,000.00 189905 Saleso ofSuppl ies 1.500.00 1.500.00 189910 Insurance Adjustments 5,00000 5,00000 190101 Tuition from Another Agency P&HCC Dual Enrollment 295.000.00 295.00000 917,257.74 917,257.74 Total Other Funds 917,257.74 917,257.74 Fiscal year 2025-2026 2024 2025 2025 2026 FROM COUNTY FUNOS Budget Butet Ditference 2225 ADM 2135ADM 510500 Apprepn ation County 7.206.795.C0 6.976.892.00 1229.903.C0) 7,206,795.00 6,976,892.00 (229,903.00) Total County) Funds 1206795.05 5.375.493.00 029,503.001 TOTAL REVENUE 3739600858 35.247.255.98 (545,749.001 March 24, 2025 Page 11 Fiscal year 2025-2026 Highlights Proposed percentage pay increase Maintain employee contributions to health insurance Additional Reading Specialist (required) . Special Education Intervention Specialist Additional Elementary Guidance Counselor Fiscal year 2025-2026 Senate Budget Proposal DirectAid 1. Fully remove the support cap (27. 89 positions per 1,000 students) - $222.9 million 2. Special Education Add- On $52.8 million 3. $1,000 Bonus Payment to Teachers - June 1, 2025. No local match required. $135 million. 4. Literary Fund $35 million to help support teacher retirement costs. House Budget Proposal Direct Aid 1. Fully remove the support cap $222.5r million 2. Special Education Add- On $52.8 million 3. $1,000 Bonus Payment to Teachers September 1, 2025. No local match required $140.5 5 million 4. School Construction Grants Added $150 million 5. Literary Fund $50 million to help support teacher retirement costs Amendment would result in approximately $270K additional state funding for FY26 March 24, 2025 Page 12 Patrick County School Board and Board of Supervisors Working Together - Makes PC Better!!! Previous Reimbursements to Appropriation Board 2022- $402.792.74 2023- $265,000 a 2024 - $275,000 2025- $375,000 $1,317.792.74 FY26- $200,000 Previous School Board Office o Possible Future Office Space for County Administration March 24, 2025 Page 13 Old Business: Budget Discussion: Beth Simms provided an overview of the recent adjustments. Doug Perry asked to re-visit access control. Beth Simms noted that a representative from the Department of Homeland Security is coming to give a consultation. Andrew Overby asked about the possibility of selecting another type of flooring in the Circuit Court. It was explained that due to the acoustics in the building, carpet is preferred. He also stated that the courthouse needs painting. It was requested to level fund Patrick & Henry Community College. Doug Perry asked about the bottled water. Jonathan Wood requested a quote on having the water fountains be fitted with filters and bottle fillers. Beth Simms recommended retaining Davenport's financial advising services. It was also recommended by the Board to discontinue using the Berkely Group. The additional budget adjustments made by department heads were reviewed. The majority of the cuts were made to office supplies. Contributions were reviewed. It was decided to contribute $10,000 to the Patrick County Food Bank and $10,000 to Caring Hearts Free Clinic. Andrew Overby stated that funding should be provided to Mountain Top Park for well repairs. Beth Simms noted that the County does not own the park, it is deeded to Patrick County Parks and Recreation Association. Clayton Kendrick asked what steps had been taken to repair the well = raising the pump, filter changes. Doug Perry asked about the departmental cuts and future needs. Sheriff Dan Smith expanded on the cuts he had made for the Sheriff's Office. Steve Marshal! noted that if the Board maintains 20% in the unassigned fund balance, it would provide funding for emergency needs. March 24, 2025 Page 14 On a motion by Doug Perry to give the Berkley Group a thirty-day notice to terminate services seconded by Steve Marshall and carried unanimously. Voting Aye: Marshall, Kendrick, Perry, Overby, Wood Voting Nay: None Based on the adjustments made, the deficit remains about $635,000. March 24, 2025 Page 15 FY2026 CHANGES TO BUDGET AFTER INITIAL REQUESTS 3.24.2025 FY2026 Deficita as of02-13-2025 (2,421,972) DEPT REVENUE CHANGES AMOUNT 12310COR Comp Board Reimbursement! Estimate Increase 2,966 12410Treasurer CompE Board Reimbursement! Estimatel Increase 4,608 21700Clerk Circuit Court Comp BoardF Reimbursement! Estimatel Increase 4,669 22100CommAtty Comp Board Reimbursement! Estimatel Increase 5,832 24000State VAD Department of Taxationl Local Sales Tax Revenue Increase in Estimate 206,347 31200 Law Enf CompE BoardF Reimbursement! Estimate Increase 222,178 31200 Law Enf Transfer from Inmate Daily Fund 38,000 71100 Recreation Increase in Admission Fees 5,200 81600 Tourism Decreasei inl Transferf from TOTF Fundduet to Cuts (stays inl TOTE Fund) (16,740) 90000 DSS Increasei in Reimbursement duet tol Increased Expenditures 233,389 90000 CSA Decreasei in Reimbursement due to Departmental Cut (145,489) 91200 Capitall Imp Remove Generator Grant (347,175) 91200 Capitalimp CIPI Items tob bet fundedy withr reserves 1,235,484 TOTALI REVENUE CHANGES 1,449,269 DEPT EXPENDITURE CHANGES AMOUNT Cuts Made by BOS 12240Auditor CutF Financial Advisor (15,000) 12110County Admin Cut Water Cooler (936) 22100 CommAtty Cut Water Cooler (181) 32600EMS Cuty Water Cooler (298) 33401 Jail Cut Water Cooler (4,259) 71100Recreation Cut Water Cooler (279) 81200 Contributions Remove Feeding SWY Virginia: Reduce Library! Increase from 5%t to3% (33,055) Total Cuts Made by BOS (54,008) Cuts Made by Department Heads 12110 County Admin Cut Travel, Workforce Training. Employee Appreciation. Vehicle Fuel, Other Operating (3.366) 12113_Finance Cut Travei & Office Supplies (660) 12310COR Cut Office Supplies, Code Books (1,470) 12315DMV Cut Office Supplies. Travel (267) 12410/Treasurer Addf fore erroneously omittee $1, 5001 IT Equipment and then cut that equipment 12510TaxN Mapping Cut Postage, Office Supplies (515) 13100 Electoral Board Cut Machine Setup- MamtemamcefTameivaingt Eqiupment (3,200) 13200/Registrar Addf forr replacement of 2012 Printer erroneously omitted; Reduce Postage/Advertising 900 21100 Circuit Court Cut Office Equipment (241) 21200GDC Cut Office Supplies (208) 21300/Magistrates Cut Dues & Memberships (50) 215008DRC Court Cut Office Supplies (290) 21700 Clerk Circuit Court CutT Travel, Offices Supplies (1,199) 22100CommAtty CUtITE Equipment (Current) Year Vacancy Savings toPurchasei inFY2025) (4,500) March 24, 2025 Page 16 FY2026 CHANGES TO BUDGET AFTER INITIAL REQUESTS 3.24.2025 31200 LawE Enf CutD Dues, Office Supplies, Code Books, Other Operating.Equipment (30,400) 31401E 911 Cut Part Time Dispatcher Pay (7,804) 34100 Bldg Insp Cut Advertising. Postage, Travel, Office Supplies, Other Operating (1,156) 34102 E8S/Stormwater Cut Vehicle Fuel (233) 35102 Animal Shelter Cut Animal Food Supplies (1.473) 42400Transfers Station Cut Travel (Meals), Vehicle Fuel (3,000) 43200M Maintenance Cut Travel (Meals) (1,750) 43213/Voting Precincts Reduction duet tor movingy voting location (300) 71100/Recreation Add $500/park for Electricity: Cur $2501 frome each park contribution," Travel, Repairs (4.387) 81500Econ Dev Cut EDA Contributionf for Incentives (7.423) 81600Tourism Cut Sponsorships. Marketing (16,740) Total Cuts Made by Department Heads (89,732) Additional Cuts- Staff Recommendations 32200 Volunteer Fire LevelFundingt for Contributions. Capital Equipment, SCBA, Volunteer Appreciation (103,265) 32300 Volunteer Rescue LevelF Fundingf for Contributions. Capital Equipment, Volunteer Appreciation (18,500) 71100Recreation Remover request tof fundr new wella at Mountain Top Park (25,658) Level Fund PARC, Pat Col Devtp Ctr, Southside Survivor Resp; Remove VAL Legal Aid, 81200 Contributions Reduce CaringHearts to $10K (54,000) 90500 CSA Cut Services (195,000) 91200 Capitall Imp Cut Capitall Improvements (337,766) 94150 Debt Estimated Savings from School Debt Refinancing (7,875) Total Additional Cuts Staff Recommendations (742,064) New Requests 12240Auditor Increaset for ai lyear contracte extensiony with RFC 1.833 31208 Courtroom Security increase Hourly Rate for Guards (Paidf for w/Inmate DailyFees) 5,585 Increase for 31 Positions approved fori FY2025; Increase Operating Expenditures: 90000DSS Increase for Comp Plan (Merit Iincreases-Promotions) 486.821 Total New Requests 494,239 TOTAL EXPENDITURE CHANGES (391,565) NEW GENERAL FUND SURPLUS (DEFICIT) (581,138) March 24, 2025 Page 17 FY2026 PROPOSED BUDGET CAPITAL IMPROVEMENT PROJECTS 3/24/2025 YEAR 1 FY2026 YEAR 2F FY2027 YEAR 3FY2028 YEAR 4FY2029 YEAR5 FY2030 PROJECT TOTAL 91200 CAPITAL IMPROVEMENT PROJECTS ACCESS CONTROL SYSTEM- COUNTY BUILDINGS 190,000 83,347 o o o 273,347 ADULT EDE BUILDING ROOF 5,000 55,000 o o o 60,000 ARARAT DAMS 89,603 443,550 298,750 356,250 o 1,188,153 COMMUNITY CENTER/COLLEGE VINYL FLOORING o 0 o o o 0 COUNTYA ADMIN BLDG GENERATOR 486,045 o o 0 o 486,045 COURTHOUSE CARPET 50,000 o o o o 50,000 EMS NEW AMBULANCE 400,000 o o 0 o 400,000 EMS NEWF FACILITY 0 MAINTENANCE VENTRAC TRACTOR 0 41,420 o 0 ol 41,420 RECREATION DEPARTMENT- ZERO TURN MOWER 14,500 0 o o o 14,500 REGISTRAR- VOTING EQUIPMENT REPLACEMENT 0 o 216,000 o o 216,000 TRANSFERS STATION LOADER (PURCH FY2025) 49,025 49,025 49,025 49,025 o 196,100 TRANSFERS STATION SCALE UPPER 44,311 0 o o 44,311 91200 CAPITAL IMPROVEMENT PROJECTSTOTAL 1,328,484 672,342 563,775 405,275 0 2,969,876 Adjourn: On a motion by Steve Marshall to adjourn until April 14, 2025 seconded by Clayton Kendrick and carried unanimously. Voting Aye: Marshall, Kendrick, Perry, Overby, Wood Voting Nay: None - I ACU Jonathan Wood, Chairman March 24, 2025 Page 18