* * * * Agenda * k Worksession #6 * Budget * Thursday, April 3, 2025 at 3:00 PM i Administration Building Auditorium 1792 414 North Main Street, Madison, Virginia 22727 ailison CoMes Call to Order, Pledge of Allegiance & Moment of Silence Determine Presence of a Quorum/Adoption of Agenda Public Comment FY26 Budget Worksession 1. Economic Development & Tourism's Budget Presentation - Economic Development & Tourism Director 2. Davenport's Financing & Leasing Recommendations - Kyle Laux 3. Follow-Up Budget Discussion - Finance Director and County Administrator a. CY25 Tax Rates b. FY26 Administrative Fees C. Tax Collection Deadline Resolution #2025-3 (Extension to the Tax Deadline) d. CIP & CARP Public Comment Closed Session Adjourn 125 IPage MADISON COUNTY BOARD OF SUPERVISORS MEETING Date: 3:00PM Thursday, April 3, 2025 Location: Admin. Building Auditorium, 414 N. Main Street MEETING #17 April 3rd At a Budget Workshop (#6) ofthe Board ofs Supervisors on Thursday, April 3rd at 3:00PM in the Admin. Building Auditorium: PRESENT: R. Clay Jackson, Chairman Jud Buchanan, Member Dustin Dawson, Member (Arrived at 3:11 pm) James Jewett, Member Jonathon Weakley, County Administrator Brian Gordon, Deputy County Administrator Jennifer Warren, Finance Director Kimberly Turner, Deputy Clerk ABSENT: Carty Yowell, Vice-Chairman Hannon Wright, County Attorney CALL TO ORDER, PLEDGE OF ALLEGIANCE & MOMENT OF SIILENCE Chairman Jackson called the Board to order. Chairman Jackson stated he would like to start with the Pledge of Allegiance and follow with a moment of silence. DETERMINE PRESENCE OF A QUORUMIADOFTION OF AGENDA Chairman Jackson advised that a quorum was present. Chairman Jackson mentioned Vice Chairman Yowell was watching online and Supervisor Dawson was running a few minutes late. Chairman Jackson advised adding the following to the agenda: #4. Resolution #2025-3 (Extension to the Tax Deadline) The County Administrator mentioned that the Resolution #2025-3 was a part ofitem 3c on the agenda. Supervisor Jewett made a motion to approve the agenda as presented, seconded by Supervisor Buchanan. Aye: Jackson, Buchanan, Jewett. Nay: (0) Abstain: (0) Absent: Dawson, Yowell. PUBLIC COMMENT Chairman Jackson opened the floor for public comment. With there being no public comment brought forth; the public comment opportunity was closed. FY26 BUDGET WORKSESSION 1. Economic Development & Tourism's Budget Presentation - Economic Development & Tourism Director 126 I Page The Economic Development & Tourism Director reported minor changes to their budget, including cutting back on some historical maintenance costs. The Finance Director highlighted the 3% COLA for the department. Supervisor Jewett inquired about a presentation on site readiness planning. There was further discussion regarding scheduling the site readiness planning presentation for April 22nd. 2. Davenport's Financing & Leasing Recommendations - Kyle Laux The County Administrator introduced Mr. Kyle Locks from Davenport for a financial analysis presentation. The Finance Director mentioned she met with Davenport on March 24th after putting all the budget presentations and outside agency applications into a mass budget spreadsheet to better know how all requests impacted the opening balance, appropriation, and capital. The Finance Director requested Davenport prepare a worst-case scenario that showed how it affected the fund balance, and strategies they would recommend. Supervisor. Dawson arrived at 3:11 pm. Mr. Kyle Laux discussed the importance of fund balance and the decline in financial reserves from 2020 to 2025. Mr. Kyle Laux presented two scenarios for capital funding, with different impacts on the budget and fund balance. The Finance Director mentioned the Board was provided a capital overview/detailed breakdown document. The Board and staff had further discussion regarding Madison County's current interest rates and potential new interest-bearing accounts. Mr. Kyle Laux reviewed the County's interest rate trends. Mr. Kyle Laux discussed the potential use oft the SNAP program for reinvesting borrowed funds. There was further discussion about the SNAP Program, the potential of doing a ballot measure for bonds, and increasing tax for specific projects temporarily. The was further discussion regarding the potential ofborrowing money for the capital projects. 3. Follow-Up Budget Discussion - Finance Director and County Administrator d. CIP & CARP The Board and staff reviewed the CIP and CARP budgets. 127 IPage The Finance Director mentioned the printed capital overview document included numbers for purchasing EMS equipment, not the leasing options. Chairman Jackson advised getting leasing numbers for the equipment SO they can compare the cost. The County Administrator reviewed the County's and Schools' capital improvement projects for FY26 including the need for a membrane roofr replacement at the CID building, plating ofa a concrete wall at the Transfer Station, and paving at Social Services. The Finance Director provided lease costs for the cardiac monitors and mechanical CPR devices, totaling $104,179 in FY26. The Board discussed the benefits ofleasing to preserve the fund balance and requested staff bring back the expected life of the EMS equipment. The Board and staff continued to review the capital budget items, highlighting the call handling equipment replacement (911 equipment with a potential grant), Axon & CAD equipment, Information Technology's four servers' replacements, and Dell desktop replacements. There was discussion on the potential for cloud hosting versus on-premises servers and the number ofl Dell computers they should replace this fiscal year. Chairman Jackson questioned certain school projects, such as the AV system and intercom system and felt they needed to discuss them further. The Finance Director mentioned a five-year lease for an ambulance would be annual payments of$102,250 which would start in FY27. There was further discussion on the intercom system and the AV system at the School as well as other School capital items. Chairman Jackson and the County Administrator discussed the acquisition ofvehicles and equipment for EMS, Sheriff's office, and Building and Zoning. After further discussion, the staff S recommendation was to approve four new explorers for the Sheriff with one used vehicle and a drone, with a grant covering part of the drone cost. The Board agreed on the need for a new Building and Zoning truck for various County needs. The Board discussed the School's bus request, the shortage of drivers, shrinking student population, and the consolidation ofbus routes. The Board agreed to reduce the number of new school buses to one. The Board discussed the Schools' facilities request for a new truck which they agreed with. 128 I P a g e Chairman Jackson transitions the discussion to the facilities and CIP list for the County, mentioning specific projects and funding sources. The Board and staff further discussed removing several items from the Schools' capital budget and the reprioritization of various projects. a. CY25 Tax Rates The County Administrator discussed the upcoming tax rate public hearing and the need to balance the budget. The County Administrator discussed how the reassessment impacted the tax rate. Supervisor Jewett suggested comparing property tax rates to inflation and the rate of spending to provide context. The County Administrator explained the process of advertising and setting the tax rate as well as the impact oft the equalized rate on property values. The Finance Director discussed the need for a three-cent tax increase to balance the operating budget, considering the impact on capital funding. The County Administrator mentioned staff would like to review the outside agencies' funding list, Departments' funding list, and the Administration recommendation that would help work towards a balanced budget. Chairman Jackson advised coming back later to discuss what to advertise for the CY26 Tax Rate and the FY26 Administrative Fees. Chairman Jackson advised reviewing a document provided by the Finance Director with Administrative recommendations. The Finance Director presented the outside agency funding list, highlighting flat funding and reductions in requests. Supervisor Jewett inquired ift the Library funding was mandatory. The County Administrator explained that counties are required to fund a medium per capita to get the State funding portion. Chairman Jackson inquired what the actual number they should be funding was. The County Administrator responded that he was pretty sure it was what the Library requested. The Board discussed the Madison Learning Center' S request and ift they planned to increase their rates. After discussion, Supervisor Jewett stated he would follow up. The Finance Director mentioned they had not yet talked to department heads about their Administration recommendations for their budget and planned to do that before the final 129 I P ag e presentation next week. The Finance Director discussed the process of reviewing and trimming the various departments' budgets. The County Administrator discussed EMS' budget requests, including a power shift and new Community Paramedicine full-time employee. The Administration recommendation is to remove the power shift as well as the Community Paramedicine full-time employee. There has been a recent personnel change that allows existing staff to manage it at its current level. The County Administrator reviewed other items that were removed. The Finance Director reviewed the EMS overall increase, which would change when they added the equipment leasing amounts. The Finance Director reviewed the changes in their overtime budget and attrition. The Finance Director mentioned the Commonwealth Attorney requested an additional $15,000 for a third attorney position. The Finance Director recommended leaving that position at $75,000 and having the Commonwealth Attorney come back to the Board to request an increase to take out of contingency should she find an applicant. Chairman Jackson advised have $15,000 earmarked in contingency for that purpose. The Finance Director stated for the Information Technology department's budget; they reduced the consulting time to three months for Mr. Bruce Livingston after his retirement. The Finance Director stated that the Parks and Recreation department is requesting a part-time to full-time conversion. The Finance Director stated they took that out and did flat funding on the Parks & Recreation contribution from last year. Chairman Jackson inquired ift they were going to merge Parks & Recreation as a County Department. The County Administrator agreed and stated they will achieve that this calendar year. The Board further discussion the part-time to full-time conversion request from Parks & Recreation. After discussion, the Finance Director stated she would talk to Parks & Recreation to see if they could realign their budget and downsize other expenses to allow the conversion to take place. The County Administrator discussed the request for a new position for Animal Control and the potential benefits and schedule. This position would also assist the Facilities & Maintenance Department when needed. Supervisor Dawson stated it was a step in the right direction, they just cannot do it this year. There was further discussion regarding the suggested new position for Animal Control. After discussion, the Board agreed to remove this new position for this year. 130Page The Finance Director mentioned the need for an increase in funds for CSA and suggested they use the joint services stabilization fund as needed rather than increasing their budget. The Finance Director discussed the School's budget, including the need for a 3% COLA and the remaining funds they have every year. The Finance Director mentioned she did not know if they plan attrition but felt that it may help save money. The County Administrator explained the uncertainty around new monies for school support positions due to the General Assembly's actions. The Finance Director mentioned they could do a contingency line-item for the schools. Chairman Jackson suggested leaving it where it was and have the Finance Director produce a scenario that includes a contingency line-item. Supervisor Buchanan inquired how much they could pull from their unassigned fund balance, while still being in compliance. The Finance Director stated she could run that number for next week's meeting. There was further discussion regarding the draft Administration recommendation and the impact on the overall budget. b. FY26 Administrative Fees The County Administrator proposed increasing the dog adoption fee and the commercial hauling rate at the Transfer Station. There was further discussion about increasing the cost of adoptions and the cost compared to other localities. Supervisor Buchanan suggested a tiered approach for dog adoption fees to encourage adoptions of older dogs. The County Administrator agreed to follow up with the Animal Shelter Manager and bring back more information to the Board regarding a potential tiered approach. Chairman Jackson stated Parks & Recreation may need their requested full-time position and inquired if the Finance Director could prepare a scenario for the next budget worksession that reflected this. There was further discussion regarding the pay grade and the minimum salary for this proposed position. Supervisor Jewett inquired about personal property tax. 131 IPa age e The County Administrator mentioned that to balance the budget, they have only looked at real estate tax increases. Supervisor Jewett expressed concerns about the potential impact of tariffs on used car values and new car prices. The Finance Director agreed, questioning the potential decline in new vehicle purchases and its effect on revenue. The County Administrator mentioned a list of vehicle categories and the importance ofi real estate in revenue generation. Supervisor Jewett suggested leaving the valuation rate unchanged due to uncertainties. Chairman Jackson proposed running scenarios to solidify the budget next week. Supervisor Jewett expressed appreciation for the staff's efforts in managing the budget. C. Tax Collection Deadline Resolution #2025-3 (Extension to the Tax Deadline) Chairman Jackson inquired if anyone had issues with Resolution #2025-3. The County Administrator mentioned June 19th was the original motion to extend the tax deadline from the initial deadline of June 5th, however, June 19th is a holiday. The County Administrator provided a history of tax deadline extensions and requested the tax deadline be temporarily extended to June 20th. Supervisor Dawson made a motion to approve Resolution #2025-3, seconded by Supervisor Buchanan. Aye: Jackson, Buchanan, Dawson, Jewett. Nay: (0) Abstain: (0) Absent: Yowell. *** RESOLUTION # 2025-3 A RESOLUTION TO AUTHORIZE THE EXTENSION OF THE JUNE 5, 2025, REAL ESTATE TAX INSTALLMENT PAYMENT DUE DATE TO JUNE 20, 2025. Whereas, on December 17, 2008, the Madison County Board ofSupervisors adopted Ordinance 2008-9 that had the effect of establishing June 5 and December 5 as semiannual installment due dates for the payment ofreal estate taxes; and Whereas, various factors have resulted in a delayed completion of the 2024 real estate reassessment process, and 132 I P a g e Whereas, advertising requirements associated with a real estate tax increase following such a reassessment process have resulted in a later than usual public hearing date on that proposal; and Whereas, the Commissioner of the Revenue and Treasurer requires time to process and issue bills between the adoption oft the tax rate and issuance ofbills and have suggested an extension ofthe June 5, 2025 due date to allow ratepayers adequate time to remit after receiving tax bills; and Whereas, $58.1-3916 ofthe Code of Virginia authorizes the Board of Supervisors to provide by resolution for reasonable extensions of time, not to exceed 90 days, for the payment ofreal estate taxes; Now, therefore, be it resolved that the Madison County Board of Supervisors authorizes the extension of the June: 5, 2025 semiannual real estate tax installment due dates for the payment of real estate taxes to June 20, 2025. *** The County Administrator discussed the possibility of advertising for administrative fees and public hearings. There was further discussion regarding the CY25 Tax Rate advertisement. After discussion, the Board agreed to advertise the three-penny rate with the potential to do less. d. CIP & CARP Discussed item 3d. previously. PUBLIC COMMENT Chairman Jackson opened the floor for public comment. With there being no public comment brought forth; the public comment opportunity was closed. CLOSED SESSION None. ADJOURN With there being no further business to conduct, Supervisor Jewett made a motion to adjourn, seconded by Supervisor Dawson. Aye: Jackson, Buchanan, Dawson, Jewett. Nay: (0) Abstain: (0) Absent: Yowell. R. Clay Jackson, Chairman Madison County Board of Supervisors Jonathon Weakley, Clerk Adopted on: April 22, 2025. 133 IPage