BEDFORD COUNTY OFFICE OF THE COUNTY ATTORNEY 122 East Main Street, Suite 201 Bedford, Virginia May 4, 2012

Transcription

1 BEDFORD COUNTY OFFICE OF THE COUNTY ATTORNEY 122 East Main Street, Suite 201 Bedford, Virginia Telephone: Fax: G. Carl Boggess Patrick J. Skelley, II County Attorney Senior Assistant County Attorney May 4, 2012 Susan B. Williams, Esq. Local Government Policy Manager Department of Housing and Community Development Commission on Local Government 600 Main Street, Suite 300 Richmond, VA Dear Ms. Williams: The County of Bedford submits to the Commission on Local Government the following responses to the Commission s request for additional information as set forth in the Commission s letter dated April 11, The County has restated the Commission s questions in the order presented and has noted its answer below. Additionally, the Commission requested further information by to the City and County received on April 18, 2012 and answer to these questions follow those from the aforesaid letter. 1. Please provide one copy each of the following documents: a. Current adopted County budget; The County s adopted budget for the FY is located on the County s website at b. Proposed FY 2013 County budget; Because of the prolonged budget impasse in the General Assembly, the County s FY budget remains proposed. It is anticipated the County s Board will take action on the budget at its meeting to be held on the 21 st day of May The County s proposed FY budget is located on the County s website at Tabs2012.asp

2 Page 2 c. Most recently adopted Capital Improvements Plan (CIP); The County s most recent Capital Improvement Plan is attached to this letter as Exhibit 1. Source: Susan Crawford, Director of Fiscal Management d. Current adopted zoning and subdivision ordinances; The current zoning and subdivision ordinances for the County can be found on the Municode website at An update of the zoning ordinance as to urban development areas can be found on the County s website at e. Comprehensive Annual Financial Reports (CAFRs) for FY 2007 through FY 2011 for the Bedford County Public Service Authority; and The Public Service Authority s Comprehensive Annual Financial Reports can be found on the PSA s website at Source: Brian Key, Director of the Bedford County Public Service Authority f. Significant proffers, if any, associated with zoned properties in any of the proposed boundary adjustment areas. Fiscal Impact and Analysis Bedford County has not implemented the use of cash proffers. There have not been any significant land use proffers in any of the proposed boundary adjustments areas. Source: Frank Rogers, Interim County Administrator 2. Provide the tax rates by major classification for the current fiscal year and the preceding 10 fiscal years. Tables 5 and 6 in the County s FY 2011 Comprehensive Annual Financial Report (CAFR), which was included in the submission in Volume II at Exhibit 5, pages 87 to 88 indicate the total direct tax rates and real estate tax rates, respectively, but do not provide the tax rates for the other major classifications. Tax rates by major classification are attached to this letter as Exhibit 2.

3 Page 3 3. Restate the Fund Balance portion of the General Fund Balance Sheet for FY 2011 to conform to the same section from the FY 2010 CAFR. The County Fund Balance portion of the General Fund Balance Sheet for FY 2011 is attached to this letter as Exhibit What reasons does the County believe are responsible for the decline in General Fund revenues in each year since FY 2008? The decline in General Fund revenues from fiscal year end 2008 to fiscal year end 2009 of $2.5 million is due to: $1.8 million of Group Home Charges for Services revenue being reflected in the General Fund for 2008 and in a proprietary fund for An increase in EMS cost recoveries of $0.5 million nets the Charges for Services revenue decline to $1.3 million. The remainder of the decrease can be attributed to declining interest rates and less Jefferson Forest High School Renovation Project bond proceeds available for investment as project expenditures continue. The decline in General Fund revenues from fiscal year end 2009 to fiscal year end 2010 of $4.0 million is attributable to: A decrease in personal property values and therefore related tax collections of $2.1 million. As the economy continued to recess, fewer new automobiles were purchased and the automobiles that were purchased were smaller, more gas efficient and less expensive. Increases in real estate, public service, interest and penalty collections netted the property tax revenue decline to $1.3 million. Interest rates continued to decline, resulting in $0.6 million less in interest earnings. Decrease of $0.2 million in recovered costs from the City as related expenditures decreased. Decrease of $1.7 million in reimbursable grant expenditures and therefore related revenue. $0.9 million of the grant expenditures related to capital projects. Decrease of $0.2 million due to the timing of the receipt of Railroad Rolling Stock Tax from the State. Revenue was received in September and therefore not picked up in the modified accrued revenue. The County uses a 60 day window for modified accrued revenues. The decline of General Fund revenues from fiscal year end 2010 to fiscal year end 2011 of $0.2 million resulted from: Declining Real Estate values of approximately 3.6%. The reassessment was effective January 1, In addition the Board decided to maintain the current real estate tax

4 Page 4 rate of $0.50 instead of equalizing the rate at $0.53, which resulted in $2.1 million less in real estate collections. Increases in delinquent tax collections, other property tax assessments and collections, sales tax and meals tax help offset this decline in real estate assessment values and non equalized tax rate. For further amplification, Exhibit 4 is attached. 5. How does the county plan to manage its financial situation in the first fiscal year after the Incentive Payments expire? Bedford County has experienced over the past twenty years one of the highest growth rates of any locality in the Commonwealth west of Charlottesville. Although the growth over the past five years has diminished, the County continues to experience population growth at a rate of approximately one percent per year. With this continued growth, the County expects revenues to be at a level to make up for the loss of enhanced payments from the Commonwealth. 6. How much could the County expect to collect in Consumer Utility taxes from customers located within the current City limits? Electrical power in the current city limits (as well as the proposed Phase I boundary adjustment area) is provided by the City of Bedford Electric Department. Pursuant to (C), a county cannot impose a consumer utility tax within the town as such tax cannot be assessed on an electric company owned by a municipality. Source: Susan Crawford, Director of Fiscal Management Planning, Zoning and Subdivision of Land 7. Provide the number of building permits for new construction, by category (i.e., residential, commercial and industrial), for the County as a whole and, if available, for the proposed Phase I boundary adjustment area for FY 2011 and each of the preceding 4 fiscal years. The County does not have statistics within the proposed Phase I boundary adjustment area. Building permits for the County as a whole are as follows: FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 SFD MFD Commercial

5 Page 5 8. How many new residential subdivision lots have been recorded in the County in the last five years? FY ,318 FY FY FY FY Are private roads permitted in subdivisions? Private roads are not permitted in subdivisions in Bedford County. Exceptions to this general rule would be for family subdivisions and for townhouse developments. Source: Tim Wilson, Director of Community development 10. The submission indicates that the County has adopted use value assessment. Provide (a) the date of initial adoption of use value assessment; The County s first adopted valuation of real estate based upon its use was on 11 July 1977 (b) the categories of uses eligible for such benefit; The current categories of uses are agricultural, horticultural and forest uses. (c) the methodology used for determining the percentage of the fair market value of land that is waived (or deferred ) from local taxation for each usage category. The Commissioner of Revenue of Bedford County determines the amount of value deferred by setting agricultural, horticultural and forest land values at an average value of such real estate as made by the State Land Evaluation Advisory Council, pursuant to Section of the Virginia Code. Source: Faye Eubank, Commissioner of the Revenue of Bedford County 11. How many County staff members are devoted to the administration of zoning, subdivision and land use regulations? There are eleven County staff members that are devoted to the administration of zoning, subdivision and land use regulations. Source: Tim Wilson, Director of Community Development

6 Page 6 Utilities 12. Provide an overview of all water and sewer facilities and services that are currently owned, operated and/or maintained by the Bedford Public Service Authority (PSA) and indicate how many customers are served by such public utilities. Include data relating to capacity, average daily usage/flow, etc. Overview: %20Forest%20Central.pdf Customers: 8,794 water and 1,628 sewer Capacities / Daily Flows HighPoint WTP: 1.0mgd / 0.6mgd Moneta WWTP: 0.5mgd / 0.05mgd Montvale WWTP: 0.05mgd / 0.01mgd Forest Central Water Purchase Contract: unlimited / 1.5mgd Forest Central Sewer System Contract: 1mgd / 0.3mgd 13. Provide the water and sewer rates and fees (including connection/capacity fees, etc.) paid by Bedford PSA customers in the County Has the Bedford PSA increased its water and/or sewer rates or fees in the past five fiscal years? Yes If so, indicate the years in which those increases were effected and the amount of the increase. Date of Increase: Water Rate (per 1000 gal) / Sewer Rate (per 1000 gal) 1/17/2006: $4.10 / $4.10 7/17/2007: $4.26 / $4.26 9/1/2008: $4.50 / $5.00 7/1/2009: $5.00 / $6.00 7/1/2010: $5.00 / $7.00 7/1/2011: $5.40 / $ What percentage of County residents and businesses rely on well and septic systems instead of public utilities? The PSA serves 8,794 water and 1,628 sewer customers. If you assume that each connection serves 2.1 people (based on historical water use data), that would equate to 18,467 people served by water and 3,419 people served by sewer. The County CAFR stated that the population of Bedford in 2010 was 68,676. Therefore, approximately 27%

7 Page 7 of the population is served with water from the BCPSA and 5% of the population is served with sewer from the BCPSA. 16. Provide the number of fire hydrants located in the proposed Phase I boundary adjustment area and indicate how many, if any, are located on water lines of less than six-inches. Solid Waste Water and sewer in the Phase 1 boundary adjustment area is being provided by the City of Bedford. This has been discussed with the City and they will respond to this question. Source: Brian Key, Director of Public Service Authority 17. Describe how solid waste collection and disposal is handled in the County, addressing services, facilities and fees. If residents in the proposed boundary adjustment areas currently must dispose of their own trash, where is the nearest disposal facility? The County operates twenty-five residential drop-off centers. Citizens may deliver bagged household waste to any of these centers. In addition, appliances, furniture, and recyclables (newspaper, cardboard, mixed paper, glass, plastic, cans, and textiles) are accepted at many centers. Ten drop-off centers are gated and operate daily 7:00 a.m. to 7:00 p.m. The remaining centers are 24-hour operations. No fees are assessed to users of the drop-off centers. Businesses are not allowed to utilize these centers. The operating of drop-off centers is largely funded by the County s General Fund. However, collection system maintenance, capital improvements of centers, and the hauling of recyclables are funded by the Solid Waste Enterprise Fund (see fund description below). Citizens within the proposed boundary adjustment areas currently utilize either the drop-off centers provided by the County or utilize the services of private curbside collection vendors (see response to Question 18). The County does not operate any dropoff centers directly within the proposed adjustment areas. However, there are several conveniently located within a relatively close proximity to the City of Bedford and the proposed adjustment area. Bunker Hill (1833 Bunker Hill Loop, approximately 3 miles from proposed adjustment area) Falling Creek (1974 Falling Creek Road, approximately 1 mile from existing boundary) Northside (5316 Peaks Road, approximately 2 miles from proposed adjustment area) Thaxton (1010 Little Apple Drive, approximately 3 miles from proposed adjustment area)

8 Page 8 The County owns and operates a landfill, transfer station, and a material recycling facility. These facilities are located on Route 43, seven miles south of the City of Bedford. These facilities only accept materials generated from within Bedford County. The funding of these facilities (including both operating expenditures and capital improvements) is provided through the Solid Waste Enterprise Fund. The Solid Waste Enterprise Fund is funded through user fees and the sale of recyclable materials. Incoming commercial/business waste is charged a fee of $38 per ton. Incoming waste originating from the County s drop-off centers is charged to the County at a fee of $57 per ton. County residents may deliver 1000 pounds free per month per household; quantities over 1000 pounds are charged at the rate of $57 per ton. A $1 surcharge per passenger size tire disposed is charged in addition to the fees listed above (households are allowed 8 free per year). Within the County s facility, scrap metal, newspaper, cardboard, mixed paper, plastic, and cans are sorted. These materials are then sold to industrial users with revenues also supporting the Solid Waste Enterprise Fund. 18. Indicate the typical monthly cost for a County resident to contract for private solid waste collection services. Bedford County citizens may choose to utilize curbside solid waste collection services provided by private vendors. Citizens choosing this collection method enter into a contract directly with the vendor. There are several vendors providing this service in the County. The typical cost for this service ranges from $15 to $28 per month for once a week collection (cart rental fees, if selected, are extra). 19. Does the County use the Region 2000 Regional Landfill or does it use its own landfill exclusively? Bedford County owns and operates a landfill on Route 43. Commercial haulers, citizens, and businesses are not required to utilize the County Landfill for disposal. Due to the proximity of the Region 2000 landfill to Eastern Bedford County, some waste generated in this portion of the County, is transported to the Region 2000 facility. However, all waste materials collected from the County s drop-off centers is exclusively transported to the Bedford County facility for disposal. Source: Sheldon Cash, Director of Public Works Police, Fire and Rescue Services 20. Provide the number of Bedford County sheriff s department personnel primarily assigned to law enforcement responsibilities. Of that number, indicate the number of law enforcement personnel primarily assigned patrol responsibilities.

9 Page 9 The County has a total of 78 officers which are comprised of the divisions of field, investigation, school resource, civil and court house. Of that number 31 officers are assigned to the patrol division. All 78 sworn officers handle different aspects of law enforcement duties. Source: Kevin Adams, Captain with the Bedford County Sheriff s Office 21. For the most recent calendar year, provide the total number of calls for service responded to by County sheriff s deputies as well as the number of calls that originated in the Phase I boundary adjustment area, if available. There were 40,241 calls in which Bedford County sheriff s office responded to in the calendar year We have not been able to break down the calls originating from the Phase 1 boundary adjustment area. 22. Provide the average countywide response time as well as the average response time for responding to calls in the Phase I boundary adjustment area. The average countywide response time for the Bedford County Sheriff's Office for calendar year 2011 was 20.5 minutes. The average response time for just the Phase I boundary adjustment area cannot be calculated; however, it is estimated that the average response time from the Bedford County Sheriff's Office to the phase I boundary area would be 3-5 minutes. The Sheriff s Office does not know where a deputy maybe responding from so these times could be different depending on the location of a deputy at the time the call was dispatched. Source: Jeff Johnson, Manager of the E-911 Dispatch Center 23. What is the minimum number of sheriff s deputies currently on patrol duty at any given time? There is a minimum of 5 sheriff s deputies on patrol at any given time. 24. Does the sheriff s office offer any supplemental services or programs, such as those relating to crime prevention and education or benefitting the elderly? The Sheriff s Office has a program called R.S.V.P. Retired Seniors Volunteer Patrol. This program is for those citizens who would like to serve the community by working with the local sheriff s office. The volunteers are trained through a citizen s police academy and then mentor with senior members of the R.S.V.P. group. The volunteers do such things as running errands for staff members, funeral escorts, house checks, assist

10 Page 10 citizens and write warning tickets. The Sheriff offers a citizens police academy to the public; any citizen, after completing a background check, man take this course, including the elderly. Further, the Sheriff s Office meets with communities throughout the County interested in forming neighborhood watch groups. The Sheriff also has a program called T.R.I.A.D. This program allows retired people who have administrative skills to come work with members of the staff. They perform duties such as filing copying, answering phones and any other office work that we may need help with. One of the services offered to the elderly is a program called Project Lifesaver. In this program, citizens who have Alzheimer s/dementia or are adults have special needs, have a band placed around their wrist. The band is a tracking device that allows the Sheriff s office to track them, should they wander off. Source: Kevin Adams, Captain with the Bedford County Sheriff s Office Other 25. Provide the most recent Insurance Services Office (ISO) fire protection classification for the County. See attached Exhibit 5. Source: Jack Jones, Director of Fire and Rescue 26. Currently, the land use plans contained in the County s comprehensive plan promote rural residential as well as some commercial use for approximately five miles along U.S. 460, west of the current City limits. Section 7.1 (B) and (E) of the Voluntary Settlement Agreement provide that the County s comprehensive plan must be amended within six months to concentrate development into the new Town and Growth Management Areas. a. How does the County intend to accomplish this in their comprehensive plan? To make the possibility of commercial development on the 460 corridor immediately west of the new town limits an incompatible or unavailable option, the plan s future land use map would need to modified. The comp plan can further stipulate the intent to limit or prevent concentrated development in this area by adopting policies in the plan not supporting the planning, funding, or approval of public infrastructure (particularly public central water and sewer) typically needed to support concentrated development of property.

11 Page 11 b. Will the large area designated for development along US 460 West be reduced? The Board of Supervisors would be guided by the terms of the Voluntary Settlement Agreement. It is impossible to predict what will be the final action by the Board; however the Board will follow the directives of the Settlement Agreement. c. Is there any potential for controversy in accomplishing this comprehensive plan amendment, which is required by the terms of the proposed agreement? This will have to be answered when the time comes for the Board to initiate the required comp plan amendments, and by the number and nature of citizens comments that are heard by the Board at its public hearing. Source: Tim Wilson, Director of Community Development 27. Does the County have a housing authority or housing program? No Source: Frank Rogers, Interim County Administrator 28. Is public transportation available in the County? No Source: Frank Rogers, Interim County Administrator 29. Does the Commonwealth Transportation Board's current six-year improvement program include any projects located in any of the proposed boundary adjustment areas? If so, describe these projects. Yes. The Virginia Department of Transportation, the City of Bedford and the County of Bedford are all jointly involved in a project to regrade a portion of west bound 460 and to replace the current intersection of Old Turnpike Road and Woodhaven Drive with the new intersection located to the west of the existing intersection. Although the intersection itself is in the City, the majority of the land lying south of the intersection is located in the County of Bedford. The portion located in the County involves an entrance road for a project known as Harmony which also includes a new army reserve center which is located in the County. Source: Tim Wilson, Director of Community Development

12 Page Are there any capital projects currently planned in any of the proposed boundary adjustment areas? If so, describe these projects. No Source: Tim Wilson, Director of Community Development Additional Questions from dated April 18, 2012: 1. Does the County have a policy that defines optimal levels for its unrestricted fund balance for the General Fund and Enterprise Fund? The County has General Fund Policy, which is attached as Exhibit 6. The County does not have a policy concerning Enterprise Fund net assets. 2. Does the County own any buildings or machinery with a book value in excess of $1 million that is over 65% depreciated? If so, please describe those items and provide their book values. See attached Exhibit Please explain the changes in net assets on the Government-Wide statements from 2007 to In late June of 2006, the County issued lease revenue bonds for the Jefferson Forest High School Renovation, Group Homes Building and Refinancing of the Nursing Home borrowing. The 2007 CAFR incorrectly reflected the unspent bond proceeds and related bond amortization charges for the school portion as invested in capital assets or restricted net assets. They should have been reflected as Unrestricted net assets as the asset related to the debt is included in the School s Invested in capital assets, and not the County s net assets. The Commonwealth of Virginia requires that counties, as well as their financially dependent component units, be financed under a single taxing structure. This results in counties issuing debt to finance capital assets of public schools, for their component units. GASB Statement No. 14, The Financial Reporting Entity, requires that the primary government and its component units, which make up the total reporting entity, be

13 Page 13 accounted for separately on the face of the basic financial statements. Therefore, the debt is reflected on the County s side and the related asset on the School s side. The 2008 CAFR, Statistical Table 1, correctly reflects all three components of net assets for FYE 6/30/2007 and 6/30/2008. In addition, net Unrestricted Net Assets of the County decreased between years as the bond proceeds were spent to fund the project. A spreadsheet with two tabs is attached as Exhibit 8 to show original nets assets and restated assets, with affected items being hilighted. 4. Please provide a copy of the restated 2007 financial statements. Restated financial statements were not produced. Note 20 in the FYE June 30, 2008 CAFR explains the restatement of Net Assets. Additionally Findings-08-1 on page 106 of the same CAFR further explains the restatement. The restatement was related to Unearned Revenue (2 nd half real estate collections). Source: Susan Crawford, Director of Fiscal Management The County certifies that the responses above, and their listed sources, are correct to the best knowledge of County officials. Should you need any further information, please feel free to contact me. Sincerely, GCB:cnm G. Carl Boggess, County Attorney Cc: Carter Glass, IV, Counsel, City of Bedford William W. Berry, IV, City Attorney