Joint Work Session on Five-Year Financial Plan – Albemarle County Board of Supervisors and School Board – December 4, 2024

The Albemarle County Board of Supervisors and the Albemarle County School Board held a joint work session on December 4, 2024, from 1:00 PM to approximately 4:00 PM in Room 241, followed by a closed meeting and public appointments. The primary focus was the Five-Year Financial Plan and the School Board's Capital Improvement Program (CIP) request for fiscal years 2026–2030. Key discussions centered on enrollment growth, aging facilities, school bus replacement, high school capacity strategies, and funding constraints. No formal votes were taken on the CIP, but both boards agreed on next steps for public communication.

Joint Work Session: Five-Year Financial Plan & CIP Request

School Board Capital Request Overview

• Maya Kumazawa, Director of Budget and Planning for Albemarle County Public Schools (ACPS), presented a five-year CIP request totaling $560 million, covering capacity projects, renovations, and ongoing programs (e.g., school bus replacement, facilities maintenance).
• Enrollment projections show an increase of 133 students above the 2024–25 forecast, totaling 13,757 K–12 students. Over 10 years, growth is expected to be 7.8% (over 1,000 students), driven by development in the 29 North Corridor and other areas.
• Capacity projects include: Mountain View Upper Elementary School (opening 2026–27), Albemarle High School second floor connector wing, High School Center Two, and a new northern feeder pattern elementary school (600-student capacity, revised from 500).
• Renovations are requested for elementary and middle schools based on facility condition assessments, with priority on schools like Stony Point (91 years old), Community Lab, Walton, and Burley. High school renovations are phased: Albemarle (Year 1), Western (Year 2), Monticello (Year 3).
• The school bus replacement program requests $23.8 million over five years to replace 89 aging buses (12-year cycle). Currently, 17 buses have over 215,000 miles. The cost per diesel bus is about $137,000; state funding covers approximately $2,000 per bus.
• New projects include land acquisition (no specific site) for a future school, a community lab school expansion (from 240 to 400 seats), a high school capacity placeholder ($10M design in FY29, $100M construction in FY30), and a preschool center (early concept, would free up 11 classrooms).

School Board Positions

• School Board members expressed concern about the persistent gap between requested and funded CIP projects (slide 27). Vice Chair Kate Acoff stated that the board presents a "needs-based budget" and that underfunding leaves schools "a generation behind."
• Chair Judy Lee was absent; Vice Chair Acoff reiterated commitment to the high school center model, not a new comprehensive high school. She noted that a new high school would cost ~$200 million and require massive redistricting, diverting capital from other projects.
• School Board members emphasized the importance of small class sizes for vulnerable populations (13% English language learners, 12% special education, 30.3% low-income, 354 homeless students last year).
• School Board member Graham Page questioned the rationale for a new high school placeholder, noting that the board had not approved such a direction.

Supervisors' Questions and Comments

• Supervisor Ned Gallaway requested detailed rationale for the community lab school expansion and high school capacity placeholder, noting that community discussion should be based on realistic options. He suggested that a new high school placeholder should reflect board policy.
• Supervisor Diantha McKeel raised environmental concerns about continued diesel bus purchases, noting the pending regional transit authority discussion (December 2024). She also asked about land acquisition and preschool center specifics.
• Supervisor Ann Mallek questioned the priority order of renovations, noting Stony Point's low facility condition score but not being first in line. She also recalled that school bus funding was moved to the CIP with state aid assumptions that have since diminished.
• Supervisor Jim Andrews asked about class size assumptions; Kumazawa confirmed that long-term planning uses current class sizes, but operating budget discussions for next year are separate.
• Supervisor Bea LaPisto-Kirtley emphasized the need for equity across schools, not equal spending, but standardizing facilities.

County Staff Presentations

• Andy Bowman, Assistant Chief Financial Officer, reviewed the county's current adopted CIP ($330 million), revenue sources (cash equity and borrowed proceeds), and debt capacity. The county maintains a AAA bond rating, with headroom to borrow up to 8% of operating revenues (about $60M in additional bonds) without exceeding policy limits, but cash implications would require ~$5M annual debt service.
• Bowman outlined potential strategies: reassessment growth, tax rate changes, use of one-time funding, reprioritization of operating-to-capital, and state legislative action for a 1% local sales tax referendum for school construction (vetoed in 2024, but may be reintroduced).
• County Executive Jeffrey B. Richardson explained the Rivanna Futures acquisition (460 acres around Rivanna Station) as a defensive and economic development move to protect a $1.2B defense industry, second only to UVA in regional impact.
• The 911 center (Emergency Communications Center) was identified as a $20M county project (regional facility with UVA and city) to address aging infrastructure and 40–50% daytime call volume growth.

Discussion on Funding Trade-offs

• Supervisor Gallaway noted that fully funding all school board requests, housing trust fund expansions, and other county priorities would require significant tax rate increases (e.g., 10 cents for housing alone). He urged transparent communication with the public about what various asks would cost.
• Supervisor Susan Lassiter (county) agreed that a one-page summary explaining funding flows (operating vs. capital, tax rate impacts) would be helpful for community understanding.
• School Board members supported the idea and requested detailed analysis of the total tax rate impact if the full school CIP were funded over five years.

Closed Meeting and Appointments

• The Board of Supervisors convened a closed meeting at 4:00 PM (motion by Supervisor Gallaway, second by Supervisor McKeel) to discuss appointments to various boards and commissions, as permitted by Virginia Code §2.2-3711(A)(1).
• After the closed meeting, the board certified that only public business lawfully exempted was discussed.
• The board voted unanimously (6–0) to:
  • Reappoint Hamilton Moses, Sharon Merrick, David Emmett, and Peter Taylor to the Albemarle Conservation Easement Authority.
  • Reappoint Elizabeth Palmer to the Blue Ridge Committee for Shenandoah Park Relations.
  • Reappoint Sarah Spears to the Historic Preservation Committee.
  • Reappoint Christopher Keene and David Harlow to the Historic Preservation Committee (note: same body? Transcript lists both separately, but likely same committee).
  • Recommend to the City of Charlottesville (joint appointments) Susan Hayes Lotte to the Charlottesville-Albemarle Airport Authority, and Mike Gaffney to both the Rivanna Solid Waste Authority and the Rivanna Water and Sewer Authority.

Key Outcomes

• No formal vote was taken on the School Board's CIP request; it will be considered during the upcoming budget process ending in May 2025.
• Both boards agreed to produce a one-page handout explaining how capital projects are funded (tax rate implications, debt service, operating vs. capital) for public use.
• Staff will provide additional rationale for the community lab school expansion and high school capacity placeholder, and will analyze the full tax rate impact of fully funding the school CIP request (including the $560M request) for discussion in future work sessions.
• The county will continue to advocate for the 1% local sales tax referendum for school construction at the state level.
• The Board of Supervisors approved several reappointments and recommendations to joint boards and commissions (unanimous).
• The meeting adjourned at approximately 5:00 PM, to reconvene at 6:00 PM in Lane Auditorium.