Albemarle County Board of Supervisors Meeting: Financial Plan, AC44 Land Use, Tax Relief - November 20, 2024

The Albemarle County Board of Supervisors held its regular second meeting on Wednesday, November 20, 2024, beginning at 1:00 p.m. in Lane Auditorium, with all six supervisors present (Chair Jim Andrews, and Supervisors Ned Gallaway, Bea LaPisto-Kirtley, Ann H. Mallek, Diantha H. McKeel, and Mike Pruitt). Agenda items included a homestay special exception, a five-year financial plan work session, scheduling a public hearing on real estate tax relief for elderly and disabled persons, a closed meeting on a Board of Zoning Appeals case, and a work session on the AC44 comprehensive plan's development areas land use draft actions. All recorded votes were unanimous.

Consent Calendar

• Approved by recorded vote: Personnel Policy Amendments (24-466).
• Received for information: FY 25 First Quarter Financial Report (24-465), Facilities and Environmental Services Quarterly Update (24-433), and VDOT Monthly Report November 2024 (24-467).

Public Comments & Testimony

• Neil Williamson (president, Free Enterprise Forum): Criticized the county's binary 'rural area/development area' choice, noting the rural area covers over 95% of county land mass, and argued that the AC44 plan does not meaningfully increase density to address the housing crisis. He advocated a 'lasagna plan' with four tiers (urban, suburban, transitional, rural), modeled on Loudoun County.
• Emily Dreyfus (Rio District, representing a coalition of seven organizations): Requested the board establish a housing trust fund with at least $10 million and dedicated annual funding, improve the ACER emergency relief program (calling the current $800-per-household cap inadequate), strengthen AC44 with upzoning in growth areas, a future growth area expansion plan, stronger inclusionary zoning, climate-aligned housing incentives, manufactured housing preservation, land banks, land trusts, and increased board discretion over parking minimums. Coalition signers included the Blue Ridge Area Coalition for the Homeless, Charlottesville Albemarle Affordable Housing Coalition, Charlottesville Low Income Housing Coalition, Community Climate Collaborative, Impact, Livable Scottsville, and Virginia Organizing.
• Sue Friedman (Rio District, Charlottesville Area Alliance), accompanied by intern Brooke Hughes: Thanked the board for its support; reported that AARP selected the alliance as its number one priority in Virginia for age-friendly community initiatives; 2025 focus areas include transportation, walkability, and housing.

Action Item: 3065 Gables Run Homestay (SE202400022)

• Staff: Lisa Green, Manager of Code Compliance. The application sought a special exception (County Code 18-5.1.48) for owners Michael and Cheryl Trice to operate a homestay in a two-story accessory structure (built 1992) on a 4.229-acre parcel in the rural area - just under the five-acre minimum. The upper level is a one-room studio with a kitchenette but no stove; the nearest neighboring dwelling is over 650 feet away. Staff recommended approval. Supervisor Pruitt moved approval; Supervisor Gallaway seconded. The board approved unanimously (6-0).

Work Session: Five-Year Financial Plan

• Andy Bowman, Assistant Chief Financial Officer, presented; no action was requested. Revenues were characterized as 'partly sunny, partly cloudy': no recession expected, but some cooling in late 2024-2025 followed by moderate growth. Long-term average general fund revenue growth is about 4.7%. The plan shows no gap in FY 2025, a 3% gap in FY 2026, and a 5% gap in FY 2027, with out-year gaps larger. FY 2025 revenues are tracking close to budget; staff does not anticipate a mid-year revenue update after having done so in two of the prior three years.
• County Executive Jeff Richardson highlighted three foundational strategic goals - safety and well-being, education and learning, and workforce/customer service - and major obligations, including three new schools in five years, regional jail renovations (debt/operations just under $1 million in FY26 rising to $2 million by 2030), and new courts (about $1 million in operating/security funding next year).
• Fire/EMS: Four competitive FEMA SAFER grants support 57 additional firefighter positions. Local cost obligations begin at $2.3 million in the coming year and top out at $6.5 million in FY30.
• Workforce: Employee Care Clinic leases are signed for two locations (29 North and Peter Jefferson Parkway); the first opens at the end of February 2025, with services including primary care, physical therapy, behavioral health, occupational health, and a registered dietitian. Core systems modernization: HR system live, community development system going live in January, financial management system in April. A $250,000 re-engineering savings target in FY25 is projected to grow to $500,000 by FY26.
• Khaki Demick, Chief Human Services Officer, reported $17.744 million invested in affordable housing over the last five years. She cited a March 2024 median home value of $122,000 (as stated in the presentation), 44% of renters and 16% of homeowners spending more than 50% of income on housing, and an estimated need for about 10,000 affordable units by 2040.
• Supervisor Pruitt characterized the plan's near-term outlook as 'grim,' stating the board faces either somewhat significant real property tax increases or very substantial cuts to services. He requested analysis of the relationship between property tax increases and rental prices, and of the county's authority to rebate taxes for low-income homeowners.
• Supervisor Gallaway called for a housing trust fund rather than a general contingency fund, an expenditure trend graph comparable to the revenue graph, and a development-area vs. rural-area fire service investment breakdown. He stated that affordable housing should be elevated from 'quality of life' to 'safety and well-being' in strategic framing, and identified housing affordability as a priority for budget season.
• Supervisor Mallek urged finishing what the county starts on capital projects. Supervisor McKeel confirmed the gaps are per-year, not cumulative. Chair Andrews noted healthcare cost inflation of roughly 10-12% since COVID, questioned how a housing trust fund would grow, and asked about ACER program mechanics. Staff agreed to provide follow-up information.

Action Item: Real Estate Tax Relief for Elderly and Disabled - Schedule Public Hearing

• Jennifer Matheny, Chief of Revenue Administration, requested scheduling a public hearing to amend Chapter 15 for tax year 2025. Current program: 857 participating households; approval rate rose to 95% in 2024 (from 94% in 2023 and 89% in 2022); only 6% of recipients are at the 50% relief threshold.
• Proposed changes: income limit from $88,800 to $97,650 (80% of area median income for a family of four), and financial net worth from $305,000 to $312,000 (inflation-adjusted). Anticipated expansion: approximately $120,000 in relief, with minimal administrative impact. The cost will be included in the FY26 recommended budget.
• Supervisor Pruitt noted the program assists only elderly homeowners, leaving what he described as a 'massive blind spot' for elderly renters. Supervisor LaPisto-Kirtley questioned whether increasing the income limit by more than the net worth limit could produce odd eligibility outcomes; staff clarified income and net worth are separate criteria. The board voted unanimously to schedule the public hearing.

County Executive Report

• Jeff Richardson reported: county staff connected with over 3,000 community members at 14 events with 26 staff volunteers; a new public engagement internship program launched with two UVA students; the County received the GFOA Distinguished Budget Award; a climate-resilient cohort funded by an EPA Environmental Justice Grant includes 10 community-based organizations; benefits and wellness fair held in October; and the Veterans Day Operation Greenlight ceremony was held November 11.
• Recognitions: Lt. Col. Terry Walls (retiring after 27 years of service) and Officer Andy Muncie (retiring after 12 years with the county) were recognized. Security specialist Josh Mentor was highlighted for outstanding front-desk customer service.

Work Session: AC44 Development Areas Land Use - Draft Actions

• Tonya Swartzendruber and Michael Barnes presented the chapter's goal statement, four objectives (increase infill/higher-density development, adaptive reuse, and redevelopment; increase jobs and housing units; invest in existing neighborhoods; increase tree coverage), and actions. Direction was requested on: (1) reduced or eliminated parking requirements for activity centers; (2) incentives for redevelopment and higher density in activity centers; and (3) balancing efficient use of development areas with quality of life, environmental stewardship, and tree coverage/preservation/street trees.
• Parking: Supervisors broadly supported reducing or eliminating commercial parking requirements in activity centers, but were more cautious about residential parking reductions. Supervisor McKeel noted that structured parking can cost up to $75,000 per space.
• Mixed-use: Supervisors cited the historically poor track record of commercial ground-floor with residential above (e.g., Stonefield and North Point), and Supervisor Mallek noted the earlier county requirement for first-floor commercial was a 'fiasco' for financing.
• Tree coverage: Supervisors debated the inherent tension between maximizing development density and preserving/planting trees. Supervisor Gallaway argued that in a constrained development area, not all amenities can be maximized and tree choices must be realistic for the built environment; Supervisors Mallek and McKeel emphasized shade trees as essential for walkability and described how wrong-sized street trees at Old Trail have damaged sidewalks and required costly pruning.
• Wording: Supervisor McKeel objected to language implying residents should live in development areas 'to protect the rural area'; staff acknowledged the feedback and said the wording would be fixed.
• Rationale: Supervisor Gallaway requested a staff report showing how each action connects to its stated objective and why it was selected, rather than having to infer the rationale during the meeting. He also suggested an email-based Q&A process similar to the budget cycle to improve efficiency.
• Activity centers: Supervisor Mallek noted the four activity centers in Crozet differ greatly (Old Trail, downtown, JV Barnes, and the smaller Wickham Pond proposal), and requested more distinguishing information.
• Schedule: Staff will take the discussion to the Planning Commission, return to the board around February with revisions, and target adoption in June-July 2025, with the cadence possibly slowing based on the board's feedback.

Closed Meeting

• The board unanimously convened a closed meeting under Code of Virginia §2.2-3711(A)(8) to consult with legal counsel regarding the Board of Zoning Appeals decision in Case No. VA2024-00002, and unanimously certified the closed meeting afterward.

Key Outcomes

• Adopted the final agenda (unanimous).
• Adopted the consent agenda (unanimous).
• Approved the 3065 Gables Run Homestay special exception (unanimous, 6-0).
• Scheduled a public hearing on the ordinance to modify real estate tax relief for elderly and disabled persons (unanimous).
• Convened and certified the closed meeting (unanimous).
• Staff to revise the AC44 development areas land use chapter/actions, including wording and rationale documentation, and return around February 2025.
• Next regular meeting: Wednesday, December 4, 2024, at 1:00 p.m. in Room 241, including a joint meeting with the School Board on the capital program.