Since taking office in 2012, Goochland County’s current
board of supervisors refused to accept govern by status quo. From restructuring
the massive Tuckahoe Creek Service District debt to securing a AAA bond rating,
these supervisors take their responsibility as stewards of public funds very
seriously.
Changes in cash proffer laws in 2016, coupled with a
dramatic rise in residential rezoning applications brought the potential for new
fiscal stress to the top of the supervisors’ worry list. As they considered a
drop off in cash proffers—monetary mitigation for the capital expense caused by
growth—the supervisors realized they need a better estimate of looming
expenditures countywide over the next few decades.
The county retained the services of a consultant to gather
data and interpret data on the cost of residential growth to better gauge the county’s
ability to absorb it. One component of this project is a long range capital
improvement plan.
Typically, the county CIP looks five years into the future
to prudently plan expenditures for items with a useful life of more than three
years and costing at least $50,000. This year, the Board asked for a 25 year
CIP.
At a special workshop on December 11, County Administrator
John Budesky presented a draft of this document to the supervisors. It was a
daunting undertaking that required a
substantial amount of work for every department, especially that of Financial
Services, under the direction of Barbara Horlacher. “I would not have done this
with any other board,” he said at the start of his remarks.
Projected costs assumed a two percent annual increase in the
consumer price index. They did not address possible savings resulting from
repurposing existing buildings for other uses. Budesky explained that a sitting
board of supervisors cannot obligate a future board to raise taxes to meet the cost
of debts it incurs. The numbers included in this CIP, said Budesky, do not reflect
a tax increase. However, he opined that, at some point down the road, the Board
an citizens may need to have a “discussion” about capital funding in the form
of a referendum to allow the county to issue general obligation bonds to fund capital
projects.
County Attorney Tara McGee cautioned that, under the new
state proffer law, jurisdictions many not use proffer dollars to fund capital
projects that are not directly affected by new construction. For instance, proffer
money generated by new residential communities in the east end may not be used
to pay for a new fire-rescue station in
District 2.
The report is a very detailed, diverse mix of needs and
issues. It includes schools, new and improvements; a courthouse; several fully
equipped fire-rescue stations; parks; n east end convenience center; and
recurring expenses such as replacement of HVAC systems and roofs. The list is all inclusive.
Specific sites for new facilities, have not
yet been identified
The 25 year CIP reiterates that all three of the county’s
elementary schools are about 60 years old. Our
existing fire-rescue stations, most built on donated land literally by
the volunteers, are not sited to deliver optimal service to citizens.
For instance, District 2 has no fire-rescue station, even though it
has experienced significant residential growth since the turn of the century, especially
around Sandy Hook. Fire-rescue Chief Bill MacKay contended that it can take 25
minutes for firefighters from Courthouse
Company 5 to reach a blaze at the end of
Rock Castle Road, even if there are crews on duty ready to deploy when dispatched. This increases the cost of
homeowner’s insurance and potential for loss of life and property from fire.
A structure fire last
week that destroyed a home in the upscale Meadows subdivision may add urgency
to this issue.
The draft 25 year CIP, on which there will be a public
hearing at the Board’s January 3, meeting, also includes, in later years,
upgrades for firearms and radio systems for the sheriff’s office; a new east end library; and park improvements.
Please take a look for yourself at http://goochlandva.us/ on the right side of the page “proposed CIP
budget FY 2019-FY2043.”
A timeline for expenditures is part of the document. This helps
the supervisors decide whether items will be funded on a pay go basis, or will
require debt financing.
Budesky said that he is confident about the costs in the
near term, in the outlying yeas, not so much. Peering far into the future is
tricky. Indeed, had a similar task been undertaken 25 in the past, it seems
unlikely that funding for information technology would have included cloud
servers, software permits, and a hardware replacement cycle.
At the conclusion of the presentation, Supervisor Ken
Peterson, District 5, accessed the abacus in his mind when he observed that, to
build a new school and fire-rescue station every five years, the county will
need to set aside at least $6 million annually, above and beyond all other
expenses, for the next 25 years.
During the “great recession” the county slashed spending and
delayed recurring replacements to keep its head above water as real estate
values—taxes on which are the main source of local government revenue—plummeted.
Time is past due for catching up. Doing it all at once sets up the county for a
repeat performance of things wearing out at the same time in the future.
For instance, fire-rescue bought six 2,200 gallon tanker
trucks about 15 years ago, and six new engines a few years later, all with the
same expected useful life. Staggered, planned replacement will ease the cost
and lessen the stresses of an entire fleet of aging apparatus. The same is true
of most items in the plan.
Planning for upgrades and replacements of HVAC systems;
bathrooms; carpet; roofs; software and computers; and vehicles rather than
playing catch up and making expensive,
emergency repairs to keep things going beyond their useful lives, saves money
in the long run. Figuring out how to pay for everything in a timely manner is the tricky part.
The supervisors adopted a fiscal policy earlier this year,
which says in part:
“In the Commonwealth of Virginia, there is no statutory limitation on
the amount of debt a County can issue. The County has set its own debt ratio guidelines
as part of sound financial management practices. Debt ratios will be annually
calculated and included in the review of financial trends.
The County will comply with the
following debt ratio guidelines:
a) Net debt as a percentage of
estimated market value of taxable property should not exceed 2.75%. Net debt is
to include general obligation, capital leases, and enterprise fund revenue
bonds, including accreted interest.
b) The ratio of debt service
expenditures as a percent of total general fund expenditures (including
transfers to other funds) should not exceed 12%. Limiting debt service
expenditures in this way provides flexibility for other expenses in the budget.”
Costs and timing of road improvements are included in the 25
year CIP. Unlike other capital items, road projects require the blessing of, and
at least some funding from, VDOT. The list of road projects includes: realignment
of Hockett Road; four laning Ashland Road to the Hanover line; the Fairground
Road extension to Rt.6; a bridge over Rt. 288 to reconnect Three Chopt Road to Broad Street Road; and the bridge over
Tuckahoe Creek to connect Ridgefield Parkway to Rt. 288.
The grand total for the 25 year CIP is $592,176,006. Paying
for infrastructure will be a daunting task.