At a regular/land use meeting of the Westmoreland County Board of Supervisors …€¦ · ·...

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A continued meeting of the Westmoreland County Board of Supervisors was held Wednesday, May 17,

2017, in the public meeting room of the George D. English, Sr. Memorial Building, located at 111 Polk

Street, Montross, Virginia. Those members present were Darryl E. Fisher, W. W. Hynson, Russ Culver,

Dorothy Dickerson Tate and Larry Roberson. Also present were Norm Risavi, County Administrator, Karen

Lewis, Assistant County Administrator, Richard Stuart, County Attorney, and LaToya Ball-Tate, Executive

Assistant.

RECONVENE

Chairman Fisher reconvened the meeting at 4:10 p.m.

On motion by Dr. Wallace, second by Ms. Lane and carried unanimously, the School Board convened in

open session at this time.

The Industrial Development Authority was called into session by Chairman Latane.

JOINT MEETING WITH WESTMORELAND COUNTY SCHOOL BOARD AND INDUSTRIAL DEVELOPMENT

AUTHORITY RE: FINANCING OPTIONS FOR NEW HIGH SCHOOL

The following members of the Westmoreland County School Board were present for this portion of the

meeting: Chairman Ralph Fallin, Vice Chairman Dr. Daniel Wallace, Sandra Ramsey, Iris Lane, and Patricia

Lewis. Dr. Michael Perry, Superintendent, and Cathy Rice, Deputy Superintendent, were also present.

The following members of the Westmoreland County Industrial Development Authority were present for

this portion of the meeting: Chairman James W. Latane, Jr., Robert T. Lynch, Stephen B. Allen, Stanley W.

Dixon, and Zebulon Brundage. Rebecca Gillions and James W. Johnson, Jr. were absent.

Chairman thanked all for being present for this joint meeting.

Courtney Rogers of Davenport & Company was recognized and presented the following slideshow

summarizing the capital funding analysis for the new high school:

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There then followed an opportunity for comments from the Board of Supervisors.

Mr. Hynson expressed concerns regarding the best approach to implementing the projected real estate

tax increase that will be needed to meet the debt service payments for the new high school. He suggested

that it might be best to implement the increase all at once rather than to phase it in as has been proposed

in this analysis.

Mr. Rogers further explained the cash flow impact and the proposed phased in approach to the tax rate

increase.

Mr. Risavi commented on steps that will be taken to reduce the amount that the County will need to

borrow in order to fund the project.

Members of the School Board were given an opportunity to comment at this time.

School Board Chairman Fallin commented that the school system is very excited about this project. He

then asked if the design plans are finished in the spring of 2018 rather than the summer, does that do any

good in terms of being able to start earlier.

Mr. Risavi explained the application process for Rural Development, noting that once the application has

been submitted, the County will wait to receive the Letter of Conditions from Rural Development. It could

take up to a year to receive the Letter of Conditions from Rural Development. The Letter of Conditions

establishes certain requirements to be met by the County before the loan closing. The County will also

need to secure interim financing for the project.

Members of the Industrial Development Authority were given an opportunity to comment at this time.

Mr. Lynch pointed out that the Town of Colonial Beach has recently built a new Elementary School. He

asked if that project had anything to do with the County, or if it was funded by the Town. He also asked

how the proposed tax increases for this new high school will impact the Town of Colonial Beach.

Mr. Risavi noted that the County was not involved in the construction of the new Colonial Beach

Elementary School. He then explained that the school district tax rates are not billed in the Town of

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Colonial Beach. It is up to the Town to decide whether to apply those rates.

Mr. Dixon commented that it will serve the County better to implement the tax increase up front rather

than phase it in. Mr. Dixon shared his experience as a former member of the Westmoreland County

School Board with respect to the construction of Washington District and Cople Elementary, as well as the

Northern Neck Vocational Center (now known as the Northern Neck Technical Center).

Discussion ensued regarding how to implement the proposed tax rate increase.

Dr. Wallace noted that the tax increase will be easier to sell if the taxpayers can see something tangible

as the design phase is completed and renderings of the proposed building become available.

School Board Chairman Fallin noted that the taxpayers will not only be getting a new school, but a

performing arts center, as well as a recreation complex.

Ms. Ramsey stated that she has shared previously with the County Administrator sample brochures from

other counties of how they keep the community informed. Ms. Ramsey suggested a similar brochure

would be beneficial for this project.

Webster Day, Attorney with the firm of Spilman, Thomas & Battle, was recognized and stated that he has

served as bond counsel for Westmoreland County for a number of years. Mr. Day briefed the group on

the statutory authority outlined in the Code of Virginia which allows the Industrial Development Authority

to issue long term debt. He then described the bond issue process, noting that the process would be

similar to that of the financing for the Judicial Center. He then outlined the legal requirements of the

financing structure, and summarized the Facilities Development Agreement, a copy of which was included

in the table packet. The target date for getting this document approved and signed is by the time the

County makes application to Rural Development and receives the Letter of Conditions.

Mr. Lynch asked if the IDA is charged with making a decision as to whether Rural Development is the best

option for financing this project.

Mr. Day confirmed that under the Industrial Development Authority statutes, the IDA is charged with

making certain determinations.

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Mr. Dixon expressed concerns about moving forward with the application for funding without knowing

what the actual cost of the project will be.

Karen Lewis, Assistant County Administrator, was recognized and summarized the following list of project

planning factors:

Ms. Lewis informed the group that the Environmental Assessment has been submitted to Rural

Development for review. Staff has received positive feedback based on a preliminary review of that

submission. Staff has been advised of some changes in the agency’s review process which should work

to the County’s favor.

Mr. Roberson asked if staff feels the projected architectural and engineering fees are on target.

Dr. Perry indicated that the school system is comfortable with those projections.

Mr. Culver asked what is included in the estimated equipment cost.

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Dr. Perry provided further explanation regarding the equipment and fixture costs, noting that these

equipment costs include anything that is not movable and is part of the construction.

School Board Chairman Fallin commented that the School Board was provided a very detailed and specific

description of the architectural tasks to be performed.

Mr. Dixon asked if the projected costs are based on a contractor’s estimation of the construction cost.

Discussion ensued among the group.

Mr. Risavi stated that the IDA is requested to take action on the submission of an application to Rural

Development to fund this project.

Mr. Lynch offered a motion to approve the submittal of a Community Facilities Application through USDA

– Rural Development for funding the proposed new high school and to further authorize the Chairman of

the Industrial Development Authority to execute any and all documents relative to this application. The

motion was seconded by Mr. Allen and carried unanimously with Mr. Dixon, Mr. Allen, Mr. Lynch, Mr.

Brundage, and Mr. Latane voting “aye”. (IDA members Rebecca Gillions and James Johnson were absent

from the meeting.)

Chairman Fisher thanked the IDA for initiating this process and expressed appreciation for their time and

input on this matter.

School Board Chairman Fallin thanked the Board for the opportunity to meet jointly and expressed

appreciation to the IDA for their approval to submit the application.

On motion by Ms. Ramsey, second by Ms. Lane and carried unanimously, the School Board adjourned at

6:00 p.m.

On motion by Mr. Allen, second by Mr. Lynch and carried unanimously, the Industrial Development

Authority adjourned at 6:00 p.m.

OLD BUSINESS

Appointment: Wetlands Board (Alternate) – Mr. Culver advised the Board that Joe Karbonit, a resident

At a regular/land use meeting of the Westmoreland County Board of Supervisors …€¦ · ·...

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