Albemarle County Budget Work Session on Affordable Housing, CIP, and Human Services - April 7, 2025
Albemarle County Board of Supervisors Budget Work Session - April 7, 2025
The Board of Supervisors held its fifth budget work session on Monday, April 7, 2025, at 3:00 PM in Room 241. The session focused on affordable housing funding within the Capital Improvement Program (CIP), the human services funding process, and identification of remaining board adjustments to the FY 2026 proposed budget. Key decisions included reallocating $1.2 million from the Board Strategic Priorities Reserve to the housing investment fund and emergency rental assistance.
Discussion Items
Affordable Housing and the Capital Improvement Program (CIP)
- Staff presented three scenarios for leveraging the proposed 0.4 cent real estate tax dedication ($1.2 million ongoing) through borrowing for affordable housing projects. Scenario A (no borrowing), Scenario B (half leveraged, $7.3 million one-time project funds), and Scenario C (full leveraged, $14.6 million one-time project funds).
- Bond counsel advised that eligible expenses for borrowing include grants for construction, infrastructure/public facilities, and land acquisition. Ineligible expenses include setting up a revolving loan fund from bond proceeds.
- Board members expressed concerns about the long-term cost and reduced flexibility. Supervisor Pruitt argued that borrowing would provide a one-time boost but hinder reaching the $10 million annual funding goal. Supervisor Mallek supported exploring leveraging to attract outside funding, while Supervisor Gallaway emphasized the need to consider CIP as a tool for larger projects like acquiring expiring complexes.
- Staff noted that any borrowing for affordable housing would need to be bundled with other CIP debt issuances, planned for spring 2026.
Human Services Funding Process
- Staff reviewed the revised human services funding process (formerly Agency Budget Review Team), which allocates $1.6 million among 25 programs. A new tiered prioritization system directs resources to direct services for vulnerable populations (Tier 1) and critical services (Tier 2), with Tiers 3 and 4 receiving no funding.
- Board members discussed the evaluation process, including the use of audits and outcome metrics. Supervisor Mallek requested deeper organizational health reviews, which staff indicated will be expanded for a third of applicants in future years.
- No votes were taken on human services allocations.
Board Adjustments and Straw Votes
- The board considered several motions to reallocate funds from the Board Strategic Priorities Reserve ($1.9 million available).
- Motion (Supervisor Gallaway, seconded by Mallek): Reallocate $1.2 million to the Albemarle Housing Investment Fund (AHIF). Passed 6-0.
- Motion (Supervisor Pruitt, seconded by Mallek): Amend to allocate $1 million to AHIF and $200,000 to the Albemarle County Emergency Relief Program (ACERP). Passed 6-0.
- Motion (Supervisor LaPisto-Kirtley, seconded by Pruitt): Further amend to $800,000 to AHIF and $400,000 to ACERP. Failed 3-3.
- Motion (Supervisor Mallek): Move 0.4 cents from schools to housing. Failed for lack of second.
- Motion (Supervisor Pruitt): Reallocate $1 million from Economic Development Fund to AHIF. Failed for lack of second.
Key Outcomes
- The board adopted a motion to reallocate $1.2 million from the Board Strategic Priorities Reserve: $1 million to the Albemarle Housing Investment Fund (one-time) and $200,000 to the Albemarle County Emergency Relief Program (one-time). This brings the total proposed one-time housing funding to $4.2 million (including the previously proposed $3 million).
- The board did not amend the proposed CIP to include affordable housing borrowing, but staff advised the option remains available for future consideration.
- Final budget adoption is scheduled for May 7, 2025, following public hearings on April 23 and April 30, and town halls on April 9 and April 10.
Meeting Transcript
I'm pleased to call to order this meeting of the Alden Royal County Board of Supervisors on the 7th of April, 3 p.m. in room 241 back to our office building. Like the table, we have Supervisor Mike Run of the Scottsville District, Supervisor East McCurve, the Ravana District, Supervisor Donatin McKeel of the Jack Jewett district. Supervisor Ned Galloway of the Rio District, Supervisor Ann Malik and the Whitehall District, and myself, Jim Andrews representing the Samuel Miller district. The forum is present. We're also joined as always by our county executive, Mr. Jeff Richardson, our county attorney, Mr. Andy Herrick. Our clerks, Ms. Claudette Orkerson, Senior Deputy Clerk Travis Morris. Also, please let me welcome Albora County Police Officers present, Master Police Officer Paul Quillen and Officer Brookchenko. Thank you for your service today and every day on behalf of colleagues. And of course, Randy's in the back there. And unless recognize that we have a lot of other people present as well. And uh and let me also note at the table we have uh our deputy county executives, and while Trevor Henry, uh our chief financial officer, Jacob Sumner, and our assistant chief financial officer Andy Bowman will be joined eventually by our chief operating Christie Shepler. But for now, I'm gonna turn things over to Mr. Bowman. Uh, after mentioning at least one supervisor is having a first day today on the mention. And also, um, as I was just reminded, uh the microphones are in the ceiling, so speak up in both senses of the work. Uh thank you, Mr. Bowman. Good afternoon to the board, and thank you to the chair for the introduction. Uh, today is work session number five with the fiscal year 26 proposed budget. Uh, we have a few topics, but we're gonna spend most of our time talking about affordable housing and the CIP to continue the discussion or kind of an idea that began at the last uh budget work session or in March 19th. Uh just a few slides to recap. It's been a couple weeks since we've been together. Uh we have completed all the activities in March through the work sessions in the town halls. Uh after today's work session, there are two town halls later this week at Western Morrow High School and North Fork Research Park, uh, followed by the uh seventh final town hall next week at journey middle school. Uh this month we'll conclude with the public hearings on the tax rates and the budgets, and then we'll budget process be wrapped up on May 7th. So this is the last work session that is scheduled at this time for uh today, though, certainly not the last opportunity for the board to engage with the budget. There are three topics uh for today. Uh, the first of which is really spending some time with affordable housing and the CIP. Uh as this is the first time there is ongoing funding uh dedicated to affordable housing or into the affordable housing investment fund. Uh, this would be uh the board's uh desire to look at what if something were to be done different in terms of the CIP, what could that look like? Uh Mr. Sumner is going to lead that part of the presentation. Uh after that, uh I would I will come back and do a brief presentation uh to continue previous human services funding process discussion uh based on uh you know comment from a board member to just bring that back in case the board would like to consider any adjustments. And then finally, is just a a time for the board if there's anything else they would like to identify, knowing that this is the last work session. The board, of course, may amend the budget all the way up to April 7th, and then beyond that during the year. This is just if staff helps the board uh get ready to finalize the tax rates in the budget on May 7th. Is this anything we can do for that? Um, that would be part of that. I will share that all the QA's. Uh there's actually one final one for prior work sessions we we have getting uh to send to you all today. All of the questions have been responded or on the website, but it certainly will add to that should any follow-ups come from today's meeting. So, one slide before I turn it over to Mr. Sumner. This is a slide the board has seen many times during the work sessions of the four cent real estate tax increase included in the proposed budget. Uh we've talked uh at length before about the dedications to public safety, schools, and to affordable housing. Uh, that affordable housing amount of 0.4 cents uh is 1.2 million dollars of ongoing funding.
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