AT A SPECIAL MEETING OF THE RAPPAHANNOCK COUNTY BOARD OF SUPERVISORS HELD ON THE 26th DAY OF JUNE, TWO THOUSAND AND SIX AT SEVEN O'CLOCK P.M. AT THE COURTHOUSE IN WASHINGTON, VIRGINIA

Present Absent

Robert P. Anderson, Chairman None

Ronald L. Frazier, Vice-Chairman

S. Bryant Lee Peter H. Luke, Como Attorney

Roger A. Welch John McCarthy, County Adm.

Thomas G. Taylor Diane Bruce, Clerk

Chairman Anderson called the fiscal year-end meeting to order.

AGENDA: On motion of Mr. Welch, seconded by Mr. Lee, the Board voted unanimously to approve the revised agenda. The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

(1) Public Hearing--Conservation Easement Service District Ordinance: Mr. McCarthy explained that the proposed Service District Ordinance (copy filed with papers of meeting) would allow the county to use funds to purchase development rights from landowners. The proposed FY07 budget contains a 2¢ tax levy which would raise approximately $300,000 annually, to be earmarked specifically for such purchases. The proposed levy would apply only to real estate although the levy could apply to personal property as well. He added that applicants are evaluated on a "point" system. Among other things, at least one member of the family must derive the majority of their income from the farm and that a Schedule F income tax form must be filed. These requirements are important because the program is designed to try to preserve "active" farmland; not to benefit wealthy investors. Mr. McCarthy also explained that the Commonwealth provides funds on a 100% match basis based upon the amount that the locality appropriates. The locality's contribution must be a dedicated source of funds.

Chairman Anderson opened the public hearing. Thirty six persons offered comments.

Favoring the proposed ordinance were Sharon Pierce, who also submitted petitions containing the names of 180 persons who favor adoption of the ordinance, Reid Folsom, Fran Krebser, Dick Reidinger, Monira Rifaat, Beverly Hunter, Emory Lazar, Philip Strange, Paul Farmer, Gary Schwartz, Nels Parson, Bill Dobrovir, Nancy Dillon, Henry Gorfein, Don Locke, Henry Eastwood, Eugene Leggett and Pat Curry. Their comments were consistent with the favorable remarks reported in the minutes of the June 5, 2006 Supervisor's meeting, with emphasis on controlling growth, investment in the future, lower taxes in the long range, and ability to gain additional funding from other grant programs. (Petitions with papers of meeting.)

Opposing the proposed ordinance were Demaris Miller, Daniel Norman, Saundra Richardson, Bobby Carter, John Marocchi, Pat Saltonstall, Aline Johnson, Peggy Ralph, Jean Lillard, who submitted petitions containng the names of 584 persons who oppose the adoption of the ordinance, John Kiser, Mary Wiley, _______ Carol, Dave Gillis, Ruth Kiger, Bud Corder and Ann Ellis. Their comments were consistent with the opposing remarks reported in the minutes of the June 5, 2006 Supervisor's meeting, with emphasis on fairness and ever increasing taxes. (Petitions with papers of meeting.)

Comments were also heard from James Mills, David Dwyer, Al Henry and Betty Waldron who had questions and/or suggestions for alternative methods of raising revenue to support the proposed program.

At the conclusion of all public remarks, Chairman Anderson closed the public hearing at 9:00 o'clock p.m. and called for discussion among Board members. Thereupon motion of Mr. Frazier, seconded by Mr. Welch, the Board voted unanimously NOT to adopt the proposed Conservation Easement Service District Ordinance that would amend Chapter 151 of the Rappahannock County Code. The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

The net effect of the failure of the ordinance to pass reduced the proposed tax levy for FY2007 from 62¢ to 60¢ -- a reduction of 2¢ to the proposed tax increase.

(2) Public Hearing--FY2007 Budget: Chairman Anderson opened the public hearing.

Sheriff Larry Sherertz explained reasons for the increase in his budget request and articulated the need for the locality to hire an additional, entry-level, road deputy at a cost of $44,318.

Jim Gannon, Hampton District, commented on the proposed 24% tax increase as being exceedingly high. He also inquired about the Bank Road and Avon Hall properties recently purchased by the county and questioned the need and wisdom of building county office facilities outside the town of Washington. In light of these two property purchases and the proposed Conservation Easement Ordinance discussed above, both of which received little or no publicity, he urged the Board to try to improve communications with the public and to practice restraint in growing government and increasing taxes.

Jean Lillard, Wakefield District, opposed the proposed 3¢ tax levy for construction on the Bank Road property. She suggested taking time to analyze capital needs and also suggested that consideration be given for all capital improvements to be built on the Avon Hall property located directly behind the courthouse complex. She suggested that the county may want to consider purchasing the Social Services building.

Ms. Lillard opposed the increased taxes for the Fire Fund; questioned the need for an additional deputy sheriff; objected to the cost of the football program that was promised at no cost to the county but which now appears in various line items in the school budget and includes 6 coaches.

Mary Wiley, Stonewall, suggested that future county buildings would be better located within the town of Washington because there will be public water and sewer.

Al Henry, Hampton, commended the Board on the purchase of the Bank Road and Avon Hall properties.

Pat Saltonstall, Wakefield, asked the Board to keep the public better informed. She cited the purchase of the Bank Road and Avon Hall properties and the proposed Conservation Easement as items of significance about which the public was poorly informed. She submitted a written statement that she requested be made a part of the records. (w/papers of meeting.)

Aline Johnson, Piedmont, explained that the School Budget requires increasingly large contributions of local revenue because the state does not contribute as much toward education in Rappahannock County as it does to other counties as a result of how the Composite Index is calculated.

Joy Sloan, Piedmont, opposed moving county offices outside the town of Washington and she also opposed public funding of the football program at the schools.

Paul Farmer offered support of a government building on Bank Road and an extra deputy sheriff.

Sharron Proper, Piedmont, opposed construction of county offices on Bank Road.

Reid Folsom supported the Sheriff's budget requests.

Vivian Yancey, Jackson, Peggy Ralph, Wakefield and Monira Rifaat, Piedmont, all commented on general aspects of the budget process.

There being no further comments, Chairman Anderson closed the public hearing at 10:30 o'clock p.m. and called for discussion among the members of the Board.

Mr. McCarthy made the following responses to some of the issues raised during the hearing. (1) Adhering to the Town's Architectural Review Board makes construction outside the town less expensive than within the town limits. (2) The Health Department, Social Services Department and Extension Office can be located elsewhere and all three have a link with the school system. (3) Owning property will save on rent expended for office space. (4) The County could lose the rental spaces it now has if the property owners were to sell or not renew a county lease.

Following discussion, the Board members agreed to reduce the budget proposals as follows:

(1) Reduce 1¢ from the levy for an office building on Bank Road, leaving 2¢ in that category. Net reduction: $150,000.

(2) Reduce the Sheriff's budget request by $10,000 for overtime.

(3) Reduce the farmland preservation line item by $32,000, leaving $68,000 in that category. This amount is generated by roll-back taxes.

(4) By earlier action of this Board, the 2¢ levy for conservation easement is deleted. Net reduction: $300,000.

FY2007 BUDGET ADOPTION: On motion of Mr. Welch, seconded by Mr. Lee and the affirmative vote of the Board, the Summarized Forecasted Financial Statements dated June 26, 2006 are adopted as the Budget for the Fiscal Year ending June 30, 2007. (See first portion of Exhibit A attached hereto and made a part of these minutes.) The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None. (The Budget document is filed with the papers of this meeting and is made a part of these minutes.)

FY2007 ANNUAL APPROPRIATIONS: On motion of Mr. Lee, seconded by Mr. Welch and the affirmative vote of the Board, the Annual Appropriations in the total amount of $19,384,482.00 for Fiscal Year ending June 30, 2007 are unanimously approved as shown on Exhibit A attached hereto and made a part of these minutes. The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

PROPERTY TAX LEVIES, TAX YEAR 2007: On motion of Mr. Frazier, seconded by Mr. Lee and the affirmative vote of the Board, the Property Tax Levies for Tax Year 2007 were unanimously approved as set forth in Exhibit A attached hereto and made a part of these minutes. The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

FY2006 APPROPRIATION OF FUNDS EXPENDED BY SCHOOLS: The School Board has requested an appropriation in the amount of $3,005,532.34 for funds disbursed during FY06 from the $4,000,000 loan account. On motion of Mr. Welch, seconded by Mr. Lee, the Board voted unanimously to appropriate $3,005,532.34 to the FY06 School Fund (page 27 of FY2006 budget). The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

YEAR END ACCOUNTS: On motion of Mr. Welch, seconded by Mr. Lee, the Board voted unanimously to approve accounts payables dated June 26, 2006. The following recorded vote was taken: AYE: Frazier, Welch, Lee, Taylor and Anderson. NAY: None.

There being no further business, the meeting adjourned at 11:15 o'clock p.m.

_________________________________________

Robert P. Anderson, Chairman