Money in the time of Covid

If you are so inclined, please pray for all involved in our educational system who must make difficult decisions and hard choices regarding the upcoming school year. Following a lengthy and somewhat contentions school board meeting on Tuesday evening, the school board deferred its vote on a revised, mostly virtual, reopening plan until its August 11 meeting.

The Goochland Board of Supervisors held its monthly meeting on August 4. Ribbon cutting ceremonies for the new business center and registrar’s office were rescheduled to September 1 due to the hurricane, which happily was out of the county by mid-morning.

The county audit committee met before the board’s afternoon session. Mike Garber, CPA, MBA, who is a partner and state and local government co-team leader of PBMares, https://www.pbmares.com/ the county’s outside auditor, explained the ground rules for completing Goochland’s Certified Annual Financial Report (CAFR).  He said that a manager and partner will be onsite during the audit process to answer questions and make decisions. PBMares has completed the county CAFR, which will be completed by the end of November, for several years. It will focus on financial operations of the county and school division. Related activities include Virginia Retirement System tests.

Covid restrictions, said Garber,  and working remotely require more effort. The Commonwealth has mandated that social services audits must be done in person. Garber confirmed that Goochland remains a low risk auditee.

Due to the virus, new Government Accounting Standards Board (GASB) regulations for 2020 have been delayed. Guidance about proper use of CARES fund disbursements and other federal Covid relief programs has not yet be released, said Garber. This could require completion of additional reports after the CAFR is finalized, which Garber said is not that unusual.

Audit Committee Chair Ken Peterson, District 5 said that Goochland financial operations are “better and stronger” for PBMares’ oversight and guidance.

Director of Social Services Kimberly Jefferson commended PBMares for being so “good and helpful” during the audit process. As social services is funded by a myriad of sources and participates in many different state and federal programs, its audit is especially complicated. Jefferson and staff work extremely hard to comply with a bewildering array of regulations.

Peterson announced that the county has refinanced a significant portion of the Tuckahoe Service District Debt, which at one time threatened the county’s solvency. Last fall, the supervisors authorized financial advisors to investigate opportunities to refinance some of the debt at rates substantially lower than those secured in a 2012 bond issuance.  The board set a three percent savings target. The projected savings resulting from the refinancing is 15.2 percent or approximately $8.5 million. On July 29, the county closed on $61.3 million of bonds sold through the Virginia Resources Authority to partially replace the 2012 bonds.

Continued TCSD growth with accompanying appreciation in its real estate, should retirement these bonds sooner rather than later possible. When the debt is satisfied, the 32 cents per $100 of valuation ad valorem tax levied on all TCSD property will end. In addition, 100 percent of real estate tax revenue resulting from appreciation over the 2004 assessed valuation threshold will go to county coffers. Currently, 55 percent of that revenue is used for debt service.

Goochlanders paid their first half taxes at a rate slightly less than normal, said Treasurer Pam Duncan.  She was less optimistic about second half payments due in December. Duncan estimated that 85 percent of real estate taxes are paid by mortgage companies. She cautioned that some residents are living off their savings and may be unable to pay their personal property tax bills at the end of the year.

Director of Finance, Barbara Horlacher presented a preliminary budget update for FY 2020, which ended on June 30.

Horlacher reported that, for FY 2020, which ended on June 30, the county is in good shape. Revenues came in well ahead of the budget adopted in April based on expectations of drastic revenue shortfalls. Expenditures were below budgeted amounts, resulting in a projected surplus (the final numbers are not quite in) of $5.4 million. Peterson commended county staff, especially the Sheriff’s Office and Fire-Rescue, for continuing to provide a high level of service to citizens under difficult conditions in a fiscally responsible manner. He also commended citizens for paying their taxes in these trying times.

 A list of budget amendments to fund items removed from the pre-Covid budget was presented to the supervisors for approval following a public hearing at the evening session. State law requires localities that intend to amend budgets by an amount greater than one percent of their current adopted budget to hold a public hearing on the matter before voting. The combined budget amendments were approximately $1.5 million, greater than one percent of the FY2021 budget in force since July 1.

A $50k sum appropriated for a broadband study was returned to the general fund. The partnership recently announced between the county and CVEC and its wholly owned subsidiary Firefly Broadband will perform this study at its own expense.  Horlacher said that using CARES funds for broadband expansion may not be possible.

Items to be funded by the amendment—mostly capital improvement items— include eight new sheriff vehicles; a new ambulance; a new rescue boat; a replacement backhoe for the convenience center; the information technology replacement cycle; and $150k of CARES act funds to the Goochland Economic Development Authority for local small business grants.

Extensive documentation of expenses to deal with Covid will be required to qualify for reimbursement under these grants. These could include restaurants who need to buy tents or print new menus. The application portal is scheduled to open on August 20. Go to http://www.goochlandforbusiness.com/241/COVID-19-Business-Information for more information. #GoochlandForBusiness

Neil Spoonhower, District 2 said “We don’t know what the future will bring, but we are very grateful for everyone for stepping up and paying their taxes. We will spend it wisely for the citizens for what we need.”

Peterson cautioned that while FY2020 ended on a positive note, the future may not be as bright. The board will review the county’s current fiscal each month going forward and adjust as warranted.