memorandum - carroll county, va

MOUNT ROGERS PLANNING DISTRICT COMMISSION

TIM REEVES, Chairman BRENDA THOMPSON, Treasurer WILLIE GREENE. Vice-Chainnan AARON SIZEMORE. Executive Director

1021 Terrace Drive Marion, Virginia 24354 Phone 276-783-5103 Fax 276-783-6949

MEMORANDUM

TO: MRPDC EXECUTIVE COMMITTEE MEMBERS

FROM: AARON SIZEMORE EXECUTIVE DIRECTOR

DATE: February 26, 2020

RE: EXECUTIVE COMMITTEE MEETING - March 5, 2020

Attached is the agenda for the meeting of the Executive Committee of the Mount Rogers Planning District Commission to be held in the MRPDC conference room on Thursday, March 5, 2020 at 7:00 pm.

Sandwiches will be provided.

AS/sp

Enclosures

SERVING LOCAL GOVERNMENTS IN BLAND - CARROLL - GRA YSON - Sit'TYTH - WASHINGTON - WYTHE

BRISTOL - GA LAX

MRPDC is an equal opportunity provider and employer.

AGENDA MOUNT ROGERS PLANNING DISTRICT COMMISSION

EXECUTIVE COMMITTEE MEETING 1021 TERRACE DRIVE

MARION, VIRGINIA MARCH 5, 2020

7:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE: All who are citizens of the United States of America please join in the Pledge of Allegiance.

IN VOCATION

WELCOME VISITORS

ROLL CALL

APPROVAL OF MINUTES FOR JANUARY 2, 2020

ADOPTION OF AGENDA FOR MARCH 5, 2020

CITIZEN'S TIME

OLD BUSINESS

None

NEW BUSINESS

1) Revolving Loan Fund Program (RLF)

The staff will provide an update on the status of the Revolving Loan Fund, the Intermediary Relendng Programs, and the RBEG Program.

2) MRPDC Financial Summary

The Executive Director will report on the MRPDC Financial Summary.

3) Executive Directors Report

The Executive Director will report on the activities of the Commission.

4) Locality Updates from Executive Committee Members

ADJOURNMENT

Cellell Dalton

From: ERD FAC <[email protected]> Sent: Wednesday, March 4, 2020 4:02 PM

To: [email protected]; [email protected]; Cellell Dalton

Subject: Single Audit Submission Accepted - COUNTY OF CARROLL, VIRGINIA (2019), Report ID:

831439

ORIGINAL DATE ACCEPTED BY FAC: 2/19/2020

AUDITEE NAME: COUNTY OF CARROLL, VIRGINIA REPORT ID: 831439 FISCAL YEAR END DATE: 6/30/2019

The Single Audit submission for the above referenced organization has been accepted by the Federal Audit

Clearinghouse (FAC). No further action is needed.

Your Original Date Accepted by FAC is: 2/19/2020. Please retain this e-mail for your records.

Sincerely,

Federal Audit Clearinghouse

https://harvester.census.gov/facides

govs.fac. [email protected]

1

COMMONWEALTH of V]LRQINIA DEPARTMENT OF HEALTH

OFFICE OF DRINKING WATER Abingdon Field Office

February 28, 2020

407 E. Main Street, Suite 2 Abingdon, VA 24210 Phone: 276-676-5650 Fax: 276-676-5659

SUBJECT: Carroll County Water — Town of Hillsville PWSID No. — 1035295 Project — Water System Improvements

Ms. Retta N. Jackson, Town Manager Town of Hillsville P.O. Box 545 Hillsville, Virginia 24343

Dear Ms. Jackson:

This office is in receipt of the engineer's partial completion statement, dated February 27, 2020, for the subject project, including all pressure/leakage and bacteriological test results. This completion statement covers the replacement of water mains along West Stuart Drive between Station Nos. 10+00 and 17+50, Victory Lane, Red Bud Drive and Valley View Street.

The required pressure/leakage testing and bacteriological water sampling appear to have been conducted properly.

An on-site inspection of the water pipe installation is not required.

We concur with the engineer's completion statement, and you may put this portion of the project into service. Further inspection of this portion of the project is not necessary.

Please contact me if you have any questions or if I can be of further assistance.

Sincerely,

Eric R. Herold, PE District Engineer

ERI-I/kb

cc: Dennis A. Amos, PE, Hurt & Proffitt Eddie Smith, PE, USDA — Rural Development - Richmond Dy. Karen Shelton, Carroll County Health Department

/arroll County Administrator Carroll County Building Official

HVIRGINIA

DEPARTMENT OF HEALTH

Protecting You and Your Environment

www.vDH.vIRGINIA.Gov

COMMONWEALTH of VIRQILNIA DEPARTMENT OF HEALTH

OFFICE OF DRINKING WATER Abingdon Field Office

February 28, 2020

407 E. Main Street, Suite 2 Abingdon, VA 24210 Phone: 276-676-5650 Fax: 276-676-5659

SUBJECT: Carroll County Water — Town of Hillsville PWSIDNo.— 1035295 Project-.--Water System Improvements

Ms. Retta N. Jackson, Town Manager Town of Hillsville P.O. Box 545 Hillsville, Virginia 24343

Dear Ms. Jackson:

This office is in receipt of the engineer's partial completion statement, dated February 27, 2020, for the subject project, including all pressure/leakage and bacteriological test results. This completion statement covers the replacement of water mains along West Stuart Drive between Station Nos. 10+00 and 17+50, Victory Lane, Red Bud Drive and Valley View Street.

The required pressure/leakage testing and bacteriological water sampling appear to have been conducted properly.

An on-site inspection of the water pipe installation is not required.

We concur with the engineer's completion statement, and you may put this portion of the project into service. Further inspection of this portion of the project is not necessary.

Please contact me if you have any questions or if I can he of further assistance.

Sincerely,

Eric R. Herold, PE District Engineer

ERHIkb

cc: Dennis A. Amos, PE, Hurt & Proffitt Eddie Smith, PE, USDA — Rural Development - Richmond Dr. Karen Shelton, Carroll County Health Department Carroll County Administrator

l4arroll County Building Official

H VIRGINIA DEPARTMENT

OF HEALTH Protecting You and Your Environment

WWW.VDH.VIRGINIA.GOV

OLL COU1 c,p'

JI

CARROLL COUNTY GOVERNMENTAL COMPLEX TERESA ISOM - DIRECTOR

DEPARTMENT OF SOCIAL SERVICES

March 3, 2020

CARROLL COUNTY DEPARTMENT OF SOCIAL SERVICES EXPENDITURES

Local Social Services Appropriation 20 19-2020 $618,757.00 Less 2/24/20 Budget Reduction (30,000.00) Local Social Services Expenditures through 02/20 (351,018.59)

LOCAL SOCIAL SERVICES BALANCE FY20 $237,738.41

Tere Isom, Director

605-8 PINE STREET • HILLSVILLE, VIRGINIA 24343-1404

(276)730-3130 (276) 236-8008 F (276)730-3135

CARROLL COUNTY CHILDREN'S SERVICES ACT

605-8 PINE STREET HILLSVILLE, VA 24343

Local CSA Appropriation for FY20 $1,105,147.00

Local CSA Expenditures through 02/20 (608 545.65)

LOCAL CSA BALANCE FY20 $ 496,601.35

Tere Isom, Fiscal Agent

CARROLL COUNTY EMERGENCY SERVICES EMS CALLS RESPONSE SUMMARY

County-Wide Summary

N Missed Calls GRAND TOTAL

CCFR Total inter- Facility Returns to SNF / Total of Volunteer Total Volunteer

Total Answered Total Answered

by oil Month ANSWERED CALLS

Dispatched CCFR 911

Transports Hornet Calls Dispatched CoIls Unable to

with CCFR Assist without CCFR

Volunteers ALLAGENCIES Respond Assist

Coon bin ed

Jan-20 402 315 276 24 15 158 56 26 76 35%

Feb-20 0 0 0 0 0 0 0 0 0 0%

Mar-20 0 0 0 0 0 0 0 0 0 0%

Apr-20 0 0 0 0 0 0 0 0 0 0%

May-20 0 0 0 0 0 0 0 0 0 0%

Jun-20 0 0 0 0 0 0 0 0 0 0%

Jul-20 0 0 0 0 0 0 0 0 0 0%

Aug-20 0 0 0 0 0 0 0 0 0 0%

Sep-20 0 0 0 0 0 0 0 0 0 0%

Oct-20 0 0 0 0 0 0 0 0 0 0%

Nov-20 0 0 0 0 0 0 0 0 0 0%

Dec-20 0 0 0 0 0 0 0 0 0 0%

2020 TOTAL 402 315 276 24 15 158 56 26 76 0%

Laurel Rescue

Month Total Dispatched Total Answered

w/o Assistance

Total Answered w/

CCFR Assistance

Total Not

Answered

N Answered

Without

Assistance

N Calls Answered

With and Without

Assistance

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

49

0

0

0

0

0

0

0

0

0

0

0

20

0

0

0

0

0

0

0

0

0

0

0

13

0

0

0

0

0

0

0

0

0

0

0

16

0

0

0

0

0

0

0

0

0

0

0

41%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

67%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

2020 TOTAL 49 20 13 16 4% 6%

Outside agencies also responded to the

following number of rescue calls within

Carroll County:

Fries Fire & Rescue 7 Galax Grayson EMS 11

Laurel Fork Rescue Pipers Gap Rescue

Month Total Dispatched Total Answered

w/o Assistance

Total Answered w/

CCFR Assistance

Total Not

Answered

N Answered

Without

Assistance

% Calls Answered

With and Without

Assisrance

Total Dispatched Total Answered

w/o Assistance

Total Answered w/

CcFR Assistance

Total Not

Answered

N Answered

Without

Assistance

N Calls Answered

With and Without

Assistance

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20 Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

27

0

0

0

0

0

0 0

0

0

0

0

0

0

0

0

0

0 0

0

0

0

0

0

0

0

0

0

0

0 0

0

0

0

0

0

27

0

0

0

0

0 0

0

0

0

0

0

0%

0%

0%

0%

0%

0% 0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0% 0%

0%

0%

0%

0%

0%

82

0

0

0

0

0 0

0

0

0

0

0

56

0

0

0

0

0 0

0

0

0

0

0

13

0

0

0

0

0

0

0

0

0

0

0

13

0

0

0

0

0 0

0

0

0

0

0

68%

0%

0%

0%

0%

0%

0% 0%

0%

0%

0%

0%

84%

0%

0%

0%

0%

0%

0% 0%

0%

0%

0%

0%

2020 TOTAL 27 0 0 27 0% 0% 82 56 13 13 6% 7%

CARROLL COUNTY EMERGENCY SERVICES FIRE CALLS RESPONSE SUMMARY

County-Wide Summary

Total Calls Structure Vehicle Month

Dispatched Fires Fires Brush Fires MVC Other

Jan-20 55 14 5 1 19 16

Feb-20 0 0 0 0 0 0

Mar-20 0 0 0 0 0 0

Apr-20 0 0 0 0 0 0

May-20 0 0 0 0 0 0

Jun-20 0 0 0 0 0 0

Jul-20 0 0 0 0 0 0

Aug-20 0 0 0 0 0 0

Sep-20 0 0 0 0 0 0

Oct-20 0 0 0 0 0 0

Nov-20 0 0 0 0 0 0 Dec-20 0 0 0 0 0 0

2O2OTOTAL 55 14 5 1 19 16

Note: CCFR responds on ALL calls with the volunteer

fire departments to provide man-power support with air-pack qualified personnel, to be used at the discretion of the fire chief.

Cana Fire Department Laurel Fork Fire Department

Total Calls Structure Vehicle Total Calls Structure Vehicle Month

Dispatched Fires Fires Brush Fires MVC Other -


Jan-20 27 4 1 1 9 12 2 0 0 0 2 0

Feb-20 0 0 0 0 0 0 0 0 0 0 0 0

Mar-20 0 0 0 0 0 0 0 0 0 0 0 0

Apr-20 0 0 0 0 0 0 0 0 0 0 0, 0

May-20 0 0 0 0 0 0 0 0 0 0 0 0

Jun-20 0 0 0 0 0 0 0 0 0 0 0 0

Jul-20 0 0 0 0 0 0 0 0 0 0 0 0

Aug-20 0 0 0 0 0 0 0 0 0 0 0 0

Sep-20 0 0 0 0 0 0 0 0 0 0 0 0

Oct-20 0 0 0 0 0 0 0 0 0 0 0 0

Nov-20 0 0 0 0 0 0 0 0 0 0 0 0

Dec-20 0 0 0 0 0 0 0 0 0 0 0 0

2O2OTOTAL 27 4 1 1 9 12 2 0 0 0 2 0

Hillsville Fire Department

Total Calls Structure Vehicle Month


Jan-20 26 10 4 0 8 4

Feb-20 0 0 0 0 0 0

Mar-20 0 0 0 0 0 0

Apr-20 0 0 0 0 0 0

May-20 0 0 0 0 0 0

Jun-20 0 0 0 0 0 0

Jul-20 0 0 0 0 0 0

Aug-20 0 0 0 0 0 0

Sep-20 0 0 0 0 0 0

Oct-20 0 0 0 0 0 0

Nov-20 0 0 0 0 0 0

Dec-20 0 0 0 0 0 0

2O2OTOTAL 26 10 4 0 8 4

Outside agencies also responded to the following number of fire calls within Carroll County:

Galax Fire Department 10

CARROLL COUNTY TOURISM BLUE RIDGE PLATEAU VISITOR CENTER DATA

VISITOR CENTER DATA

J Department

21112020 to 2129/2020 23112019 to 2328/2019

• J Q...• Ext PriceJ Total Mar...) Qty S... Ext PriceJ Total Mar...)

Wood Craft 24 349.00 52.45 0 0.00 0.00

Health & Beauty 15 142.78 21.42 0 0.00 0.00

Souvenir Clothing 10 141.60 51.80 0 0.00 0.00

Jewelry 14 137.00 21.40 0 0.00 0.00

Needle Craft 19 122.25 18.81 0 0.00 0.00

Floral Craft 3 108.00 16.20 0 0.00 0.00

Ceramics 12 108.00 16.20 0 0.00 0.00

Food Items 14 89.49 14.42 0 0.00 0.00

Home Decor 1 87.98 0.00 0 0.00 0.00

FineArt 6 71.50 4.34 0 0.00 0.00

Souvenir Non Clothing 20 62.45 29.22 0 0.00 0.00

Media- Books CDs DVDs 4 57.00 9.93 0 0.00 0.00

Metal Craft 1 35.00 5.25 0 0.00 0.00

Natural Material Craft- Fibers 3 32.00 4.80 0 0.00 0.00

Other-Non Classified 9 26.45 8.22 6 48.00 4&00

Souvenir 0 0.00 0.00 7 47.50 24.79

Art&Craft 0 0.00 0.00 98 1153.43 193.78

155 1,570.50 274.46 111 1,248.93 286.57

Sales increased 25.74% over LY even with Sunday closures. Items Sold increased by 39.6%. GP improved by 2.95%

CrroLI County Tourlont Merth,ndi,e Sold

I U

WSOfl H4SIB..*

PickPlayStay WEBSITE Data-

Carroli County Tourisrr

• Analytics All Web Sfte Data Go to report

Audience Overview

O I DOUO Jnss

Feb 1,2020 - Feb 29,2020

Overview

• Users

30

feb 2 Fes 3 Feb 6 Feb 5 FeD ID Feb 12 Feb t4 Feb 16 'es 16 FeD 2t Feb Fes Z Feb26 FeD 26

• New Visitor U Returning Visitor

Users New Users Sessions

382 366 421

Number of Sessions per User Page.iews Pages / Session

1.10 954 2.27

—.

Avg. Session Duration SOJfl05 Pete

00:01:30 76.96%

Language Users % Users

3

359

6

93.98%

157%

I 1.05%

4. 1.05%

5. I'c 0.79%

6. e -.;lr: 2 0.52%

7. 1 0.26%

1 026%

1 026%

10. :l-.: 1 026%

• Users • Organic Search

• Direct

• Referral

Sociol S • Goal Conversion Rate

100.00%

coot,

Feb10 Feb17 Feo24 FetiD Feb17 Feb24

Carr&l CounW Tour'sm

•p Analytics AU Web Site Data C,oto report

Acquisition Overview

O All Users 100.031c Users

Feb 1,2020-Feb 29,2020

Primary Dimension Conversion.

Top Channels All Goals Edit Channel Grouping

lop Channels Users Conversions

Conversions

Acquisition

Users I New Users Sessions

Behavior

Bounce Pale Pages/ Session

Avg. Session Duration

382 366 421 76.96% 2.27 00:0130

1 Organic Sean 209 _______ 80.43%

2 Direct 96 81.82% Set up a goal

To see outcome metrics, define one or more goals.

3 Referral 74• 60.76%

4 Social 2 1 5000%

To see all 4 Channels dick here.

CarroJi County Touñsrn

Analytics All Web Site Data

Overview

O AU Users I 0U.% Pageeews

Co to report

Feb 1, 2020- Feb 29,2020

Overview

• Pageiewa

300

230

100

Feb C Feb e Fe 9 FeD 10 Feb 12 Feb 14 Feb 9 Feb 16 Feb20 Feb 22 Feb 24 Feb 2ô Feb 29

Pageviews Unique Pageviews Avg Time on Page Bounce Rate % Exrt

954 741 00:01:11 76.96% 4413% — A,

Page

-—--'

Pageviews % Pageviews

172 16.03%

2. {ace5/united-states/virginia/11illsvilIeJdinirboJ506-n-brewt-wf 81 8.49%

3. whece-10-eatJ 40 419%

4 /ptacesiunitetates/vafwoodlai!venuest1he-estabIio11nient.' 26 2.73%

5 /arlisa is-at-the-v 001-center! 2.62%

6 trtp-ideas/ 22 2.31%

7. wheee-to-soayl 21 I 2.20%

B. /evelltse 17 1.78%

9 eve1its/Categorv/evits-1! 17 1.78%

1O 'abou1-carrol-coisityt 14 I t47%

2020 Google

CARROLL COUNTY TOURISM FACEBOOK INSIGHTS

Total Page Likes as of Today 3087

Total Page LiKes

Total Page iJkes

3,087 Mar 4. 2020

Ck or drag to eiect

Page Likes Post Reach Post Engagement

- \d1c 3

52 8,490 1,758 V Jjj -3Cr a.12% crr v399

Top Carroll County Tourism Facebook Posts

Lifetime Post Total

Lifetime Post Paid

Lifetime Post Total Impressio

Post Message Type Posted Reach Reach ns

SO EXCITED! The Carroll County Historical Society is offering a brand new Frank Levering play for this years recounting of the events surrounding the Historic Courthouse Shooting. Tickets go on sale March 19 and shows sell out quickly. The Haie Wilkinson Carter Home wili be serving meals before each performance. It will surely be another sell out event #loveva #SWVA Photo 2/19/20 5:30 AM 4391 0 4813

GIVEAWAY TIME! Valentines Day is just around the corner and our friends at Beagle Ridge Herb Farm and Environmental Education Center have an Exquisite Lavender Gift Basket Giveaway for that special someone in your life (even if that special some is you©) This basket is filled with lavender scented products of all kinds and is valued at $89.00. And it COULD BE YOURS! The rules are simple: 1) LIKE this PAGE Carroll County, Virginia Tourism and LIKE Beagle Ridge Herb Farm and Environmental Education Center page. 2) SHARE this POST 3) COMMENT 'Done' Beagle Ridge will choose a WINNER at random from the list of folks who successfully completed these steps on February 12. ThIs incredible gift basket will be available for pick up by the winner at the Blue Ridge Plateau Regional Visitors Center. Photo 2/4/20 5:52 AM 4097 1380 4716

The Carroll County Historical Society and Museum hosted a meeting to plan for celebrations of the centennial of the 19th amendment which gave women the right to vote. A series of events/activities are planned here in 2020 to commemorate this historic event. Pictured at todays planning session Shelby Inscore Puckett of The Carroll County Historical Society and Museum, Betty Sutton planning committee member, Ken Miller Carroll County, Virginia Tourism, Elizabeth Huff Hale Wilkinson Carter Home Foundation, Etheleen Sehen Appalchlan Trail DAR and Brenda Lindsey GFWC Hillsville Women's Club/ Carter Home Board Photo 2/13/20 1:19 PM 2077 0 2144

We really hope you like our 'Did you know" series in conjunction with The Carroll County Historical Society and Museum because we LOVE sharing these tidbits with you. Did you know the Carroll Hosiery Mill --one of the first textile mills in Carroll--was built in 1938 and was started by B. P. and Belva Goad? The picture shows the initial grading process on May 19, 1938 with Mrs. Goad present. She worked tirelessly to raise funds to build the mill. To find Out more about the mill and the Goads, stop by the Carroll County Historical Museum, Main Street, Hillsville. Hours are Tuesday to Friday 10:30am to 4:00pm and Saturday 10:00am to 2:00pm. No admission charge. If you like our 'Did you Know" series, give us a Like and Share to let us know #swva, #loveva

We won't spill the beans but crew and anchor Chad Tucker from WGHP Fox 8 have been in town this week filming segments to air on TV and Podcasts. Local energy is high as Carroll County continues to explore Its rich and interesting history #loveva, #SWVA

Photo 2/13/20 12:18 PM 1412 0 1430

Photo 2/28/20 1:52 PM 1098 0 1128

CARROLL 1COUNTY

Terry Woods Animal Control Officer

Cellell Dalton Interim Administrator

Blazing New Business Thails

(

www.CARROLLCOUNTYVA.oRG

J4 nimat Cont rot Of 605 -1 Pine Street

Hillsville, VA 24343 276-730-3011

February 29. 2019

Animal Control received 45 animal related calls, 6 follow up calls, and 29 animals were taken into custody by animal control. Investigated 3 dog bites. 3 calls of livestock out. 1 wildlife calls, Picked up one snake from traffic stop on I 77. Picked up 1 potbelly pig.

7e Wood4

T.L. Woods Chief Animal Control Officer Carroll County

(276) (730-3011) twoodsc@carrollcountvI'. org (276) (730-3004) —fax

Grow. Connect. Read. Learn.

GCRL News Volume 6, Issue 3

Galax-Carroll Regional Library Newsletter March 2020

•Galax-Carroll

Regional Library .'

Galax Public Library, 276-236-2351 Carroll County Public Library, 276-728-3334

610 West Stuart Drive, Galax, Virginia 101 Beaver Dam Road, Hillsville, Virginia M-W-F-Sat 9am - 5pm, T-Th 9am - 7pm M lOam - 8pm, T thru F lOam-6pm, Sat lOam - 2pm

h ttps: Ilgalaxcarroll. jib. Va. us

MARCH AUTHORS A t'y1

.- Ralph Waldo Ellison (March 1, 1914- April 16, 1994), an American

novelist, literary critic, scholar and writer, best known for his novel Invisible Man, which won

the National Book Award in 1953

- Theodore Geisel (March 2, 1904- September 24, 1991), better known as Dr. Seuss, an American

writer, poet, and cartoonist, was most widely known for his children's books written and

illustrated as Dr. Seuss.

- Elizabeth Barrett Browning (March 6,1806-June 29, 1861), one of the most prominent English

poets of the Victorian era. Her poetry was widely popular in both Britain and the United States

during her lifetime.

- Kenneth Grahame (March 8, 1859- July 6, 1932), a Scottish writer, most famous for The Wind in

the Willows (1908), one of the classics of children's literature. He also wrote The Reluctant

Dragon; both books were later adapted into Disney films.

- Jean-Louis "Jack" Kérouac (March 12, 1922- October 21, 1969), an American novelist and poet,

considered a literary iconoclast and, alongside William S. Burroughs and Allen Ginsberg, a pioneer

of the Beat Generation. He became an underground celebrity, an originator of the hippie

movement.

.- Thomas Lanier "Tennessee" Williams III (March 26, 1911- February 25, 1983), an American

playwright, author of many stage classics. Williams adapted much of his best work for the cinema,

and also wrote short stories, poetry, essays and a volume of memoir.

7 - Robert Frost (March 26, 1874- January 29, 1963), an American poet. His work was initially

published in England before it was published in America. He is highly regarded for his realistic

depictions of rural life and his command of American colloquial speech.

-il- Anna Sewell (March 30, 1820- April 25, 1878), an English novelist, best known as the author of

the classic novel Black Beauty. Sewell sold the novel to local publisher Jarrolds on 24 November

1877, when she was 57 years of age. Although it is now considered a children's classic, she

originally wrote it for those who worked with horses.

GROUP EXERCISE

o EZ EXERCISE & CARDIO

Mondays, Thursdays, 11 a.m. o FITNESS FRIDAYS, 1 p.m.

Happy Birthday 3 Dr. Seussi

March 2, 1904

> A NOVEL BUNCH Library Book Club for Adults

o March 25th, 7 p.m.

o Once Upon A River— Diane Setterfield

> MOVIE & LEGOs - March 3Vt, 3:15-5 p.m.

o "Frozen 2"

SURVIVAL SKILLS

o March 10th 4-5 p.m.

o Purifying Water Sources -Johnny Vegas

GCRL Foundation — March 13th, 12-1 p.m.

- GCRL Board — March 16th, 4:30-6 p.m.

CRAFTERNOON — March 17th, 35 p.m.

o Make Leprechaun Traps!

CARROLL COUNTY GALAX

L

* -

PUBLIC LIBRARY PUBLIC LIBRARY /

' JIGSAW PUZZLE ANYTIME . JIGSAW PUZZLE ANYTIME

> BOOKTOMOVIE

o March 5th, 6 p.m.

o Hidden Figures — by Margot Lee Shetterly

o Read the book, then watch the movie!

'- BOOK BINGO

o March 3rd a.m. - 12:30 p.m.

o March 17th 6— 7:30 p.m.

o Prizes are books & puzzles!

Carroll County Historical Society

o March 2nd 6 p.m.

COLOR!

o March 4th& 18th 3-5 p.m.

STORY TIME — March 5, 12, 19, 26

o Thursdays, 10:30 a.m.

FAMILY SHARE --GENEALOGY

o March 4th, 11th, 18th, 25th

o 10 a.m. — 12 Noon

o Genealogy Resources

p.

o Tuesdays, 2 p.m.

o Embroider. Crochet. Knit. Needlepoint.

STORY TIME — March 4, 11, 18, 25

o Wednesdays, 10:30 a.m.

Story Time & 12th

> CREATIVE WRITERS — Thursdays

o Critiques 4:30-6 p.m., March

o WRITERS OPEN HOUSE

IN THE LOOP Knit & Fiber Group

• March 19th 4:30 — 6 p.m.

> Blue Ridge Buddies - Fridays, 9 a.m. — Noon

o For children with disabilities

G.E.D. Classes - Mondays, Tuesdays, 12-3 p.m.

(not 31d)

ELECTION DAY— March 3rd

Friday Night Bible Study - Fridays, 6 p.m.

COVERED DISH & RECIPE SWAP

o March 19th, 6:30 p.m.

o Bring food from your favorite movie

' MOVIE & LEGOs - March 30th, 4:15-6 p.m.

o "Frozen 2"

SURVIVAL SKILLS

o March 9th 4-5 p.m.

o Purifying Water Sources -Johnny Vegas

MSSupportGroup

o March 10th, 6 p.m.

CRAFTERNOON — March 16th, 3-5 p.m.

o Make Leprechaun Traps!

CHESS MEETUP

o Saturdays, 1-3 p.m.

o Bring friends and your own chess sets!

AGENDA FOR THE REGULAR MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY

HELD AT THE TOWN OF WYTHEVILLE, MUNICIPAL BUILDING

IN WYTHEVILLE, VIRGINIA THURSDAY, JANUARY 16. 2019, AT 10:00 A.M.

RE: CALL TO ORDER, QUORUM

RE: INVOCATION AND PLEDGE OF ALLEGIANCE

RE: CONSENT AGENDA

RE: CITIZENS' TIME

RE: VENDOR TIME

RE: APPROVAL OF INVOICE

1.AEP $15,226.49 2. Town of Wytheville (December) $53,447.55

RE: CHIEF OPERATOR'S REPORT

1. Elevator 2. 1St Quality Air 3. New Permit 4. NewpH Meter 5. Surplus 6. Operators Meeting

RE: BOARD TIME

1. Budget Development

Chief Operators Notes

1. Elevator inspection was performed on 12/17/19; the inspector found a building code violation, the alarm bell was not working. I have contacted our maintenance company and it was fixed on 12/23/19. It was a dead baffery.

2. 1St Quality Air was onsite 12/17/19 to perform regular maintenance on our air blower and compressor.

3. We received the newly issued Waterworks Operation Permit on December 20, 2019. The variance of 4 hour evenings, and 10 hours Sunday and Holidays is still included. We have 30 days to appeal if necessary.

4. Our benchtop pH meter started showing signs of issues recently and they we geffing to be more frequent. I ordered a new benchtop meter on 12/30/19 as a replacement.

5. Seeking approval to sell old turbidity meters, and non-working pressure washer.

6. Operators Meeting was held on 1/9/19 with a total of 12 people present. These included representatives from each locality and Peed and Borfz engineers. The main 2 topics covered were the staffing and scheduling at NRRWA and the distribution system of NRRWA, Wythe County, and Wytheville. There were 5 recommendations that came out of the meeting.

a. Seek approval to hire another operator at NRRWA. b. Request the Town of Wytheville to be the NRRWA fiscal agent. This

would allow operators at both NRRWA and Town of Wyfheville water plants to be under the same umbrella, the ability to form an operator pool, it could provide salary uniformity to aft ract operators to our vacant position(s), and promote stability in staffing.

c. Have one operator from a locality to establish contacts with our high water users in order to obtain and share the projections of water use with each of us.

d. Add Lots Gap tank to the water distribution system to help the management of water for each locality and provide buffer for high use times.

e. Add controls at Fort Chiswell Pump Station that would allow Wythe County to monitor and control the pumps.

MINUTES OF THE SPECIAL MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY


IN WYTHEVILLE, VIRGINIA Thursday, November 14, 2019 AT 10:00 A.M.

Members present: C. Wayne Sutherland, Jr. (Wytheville, Stephen Bear (Wythe County), Dana Phillips (Carroll County), Gene Homey (Wythe County), Tim Reeves (Wythe County), Joseph E. Hand, Jr. (Wytheville), Cellell Dalton (Carroll County)

Members absent:

Others present: Zachary Slate, Don Crisp, Elvan Peed

RE: CALL TO ORDER. QUORUM

Chairman Sutherland established that a quorum of Authority members was present and called the meeting to order at 10:05 am.


Chairman Sutherland led those present in the Pledge of Allegiance.

RE: CITIZENS' TIME

Chairman Sutherland inquired if there were any citizens present with topics of discussion during the meeting. With no one to address the Authority, Chairman Sutherland proceeded with the agenda.

RE: VENDOR TIME

Chairman Sutherland inquired if there were any vendors present who wished to address the Authority. There being no vendors to address the Authority, Chairman Sutherland proceeded with the agenda.


Chairman Sutherland turned the meeting over to Mr. Slate.

Mr. Slate reported on work based learning with Wythe County Public Schools. Work based learning is a program that allows businesses to open their doors to students to come in and gain experience. This can range from job shadowing to apprenticeship opportunities. I have attended a meeting on this program on October 29th, 2019 at the Wythe County School

1

Board office. We could offer internship opportunities for the Wythe County students starting in January 2020. Currently this internship would last for one semester of their senior year. My original thought was to pair up interns with a classed operator to fill the 2nd person slot. After attending this meeting, I believe the primary focus in this program should be public awareness of water treatment, the job itself, and allowing the interns to work for this time period to gain experience for the job market. A few items left to explore is insurance approval and hourly pay. I have to give them this week a job description.

There was further discussion amongst the board members and Mr. Slate about pay, the process, the type and amount of kids, the purposes and benefits, and the future outlook of this program. A consensus was reached to look into the work based program with Wythe County Public Schools next year in August. This would give us time to train new employees, work out the hours per week, and work with the school system.

Mr. Slate reported an overview and his recommendations based on the salary study results made up of response data from the Town of Wythevflle, City of Galax, City of Radford, Town of Hillsville, NRV Regional Water Authority, and Pulaski County. Mr. Peed provided financial impact data of different scenarios of increases.

Board members inquired as how the recommendations were formed and further details resulting in moving into closed session.

Chairman Sutherland proceeded with the agenda.

RE: CLOSED SESSION

Chairman Sutherland proceeded with the next agenda item a Closed Session as permitted by the Code of Virginia Section 2.2-3711 (A)(1)to discuss Personnel Matters. Mr. Reeves motioned, and Mr. Hand seconded the motion that the New River Regional Water Authority go into a Closed Session as permitted by the Code of Virginia Section 2.2-3711 (A)(1) to discuss Personnel Matters. The motion was approved with the following voting in favor and there being no opposition: For: Stephen Bear, C. Wayne Sutherland, Jr., Tim Reeves, Joseph Hand, Cellell Dalton, Gene Homey, Dana Phillips. Against: None. The motion passed unanimously, with all members present voting to go into a Closed Session.

RE: RECONVENE TO OPEN SESSION A motion was made by Mr. Reeves and seconded by Ms. Phillips in accordance with Code of Virginia Section 2.32-3711 (A)(1) Personnel whereas 2.2-3712 Code of Virginia requires a certification that only lawful business matters subject to the meaning for which we went into closed session were discussed I hereby request approval to that certification. A motion was made by Mr. Dalton and seconded by Mr. Hand to reconvene to open session. The motion was approved with the following voting in favor and there being no opposition: For: Stephen Bear, C. Wayne Sutherland Jr., Tim Reeves, Cellell Dalton, Dana Phillips, Joseph Hand, Gene Homey Against: None.

2

RE: BOARD TIME

A motion was made by Mr. Dalton and seconded by Mr. Reeves to request Wythe County to look at the current pay scale and work it out with the long standing employees.

Mr. Dalton discussed looking at proposals for privatization. A motion was made by Mr. Dalton and seconded by Mr. Homey to pursue information on privatization and authorize Mr. Elvan Peed, of Peed and Bortz to use money in the engineering line item to gather that information. For: Stephen Bear, C. Wayne Sutherland , Jr., Tim Reeves, Cellell Dalton, Dana Phillips, Joseph Hand, Gene Homey Against: None.

Mr. Elvan Peed reported there will be a committee meeting [with DEQ] on the November 19th 2019 at 12:00 p.m. at the New River Regional Water Treatment Plant.

RE: ADJOURNMENT

Chairman Sutherland inquired if there is any other business to come before the Authority. There being no other business, Chairman Sutherland carried to adjourn the meeting at 10:26 a.m.

C. Wayne Sutherland, Chairman

Stephen Bear, Secretary/Treasurer

3

CERTIFICATION OF CLOSED MEETING UNDER VIRGINIA FREEDOM OF INFORMATION ACT

Date: 11/14/19 Work Session: Yes — NoX

VA Code, Section 2.2-3711(A) 1 Subject: Personnel Matters

CERTIFICATION OF CLOSED MEETING

WHEREAS, the New River Regional Water Authority has convened a closed meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and,

WHEREAS, Section 2.2-37 1 1 (A) of the Code of Virginia requires a certificate by this Authority that such closed meeting was conducted in conformity with Virginia law;

NOW, THEREFORE, BE IT RESOLVED that the New River Regional Water Authority hereby certifies that to the best of each member's knowledge, (1) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to which this certificate resolution applies, and (2) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Authority.

Vote: Ayes Nays C. Wayne Sutherland, Jr. X Tim Reeves X Cellell Dalton X Stephen Bear x Joseph E. Hand, Jr. X Dana Phillips x Gene Homey x

(For each nay vote, the substance of the departure from the requirements of the Act should be described.)

Absent during meeting:

Absent during vote:

Secretary/Treasurer New River Regional Water Authority

4

MOTION FOR CERTIFICATION OF CLOSED MEETING AFTER RECONVENING IN A PUBLIC MEETING

I move that the New River Regional Water Authority certify that, in the closed meeting just concluded, nothing was discussed except the matter or matters (1) specifically identified in the motion to convene in a closed meeting and (2) lawfully permitted to be so discussed under the provisions of the Virginia Freedom of Information Act cited in that motion.

Roll Call Vote Aye Nay*

C. Wayne Sutherland, Jr. X

Tim Reeves X

Cellell Dalton X

Stephen Bear X

Joseph E. Hand, Jr. X

Dana Phillips X

Gene Homey x

*For each nay vote, describe the substance of the departure from the requirements of the act.

5

MINUTES OF THE REGULAR MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY


IN WYTHEVILLE, VIRGINIA Thursday, November 21, 2019 AT 10:00A.M.

Members present: C. Wayne Sutherland, Jr. (Wytheville, Stephen Bear (Wythe County), Dana Phillips (Carroll County), Tim Reeves (Wythe County), Joseph E. Hand, Jr. (Wytheville), Cellell Dalton (Carroll County)

Members absent: Gene Homey (Wythe County),

Others present: Zachary Slate, Robby Krunich, Trevor Hackler, Andrew Austin, Elvan Peed


Chairman Sutherland established that a quorum of Authority members was present and called the meeting to order at 10:03 a.m.



RE: CONSENT AGENDA

Chairman Sutherland presented the Consent Agenda consisting of the minutes of the regular meeting of October 17, 2019 to the Authority members for approval. Chairman Sutherland inquired if there was any discussion on the minutes as presented. Being none, Mr. Dalton made a motion, which was seconded by Mr. Bear, to approve the Consent Agenda including the minutes of the October 17, 2019 meeting. The motion passed unanimously with all members present voting to approve the Consent Agenda, including the minutes of the October 17, 2019 meeting. Chairman Sutherland proceeded with the agenda.

RE: CITIZENS' TIME


RE: VENDOR TIME

Chairman Sutherland inquired if there were any vendors present who wished to address

1

the Authority. There being no vendors to address the Authority, Chairman Sutherland proceeded with the agenda.

RE: APPROVAL OF INVOICES

Chairman Sutherland advised that the next item on the agenda was the Approval of the Invoices as follows:

1. AEP $10,716.14 2. Town of Wytheville (October) $20,107.26 3. Wythe County (September) $25,623.29

Chairman Sutherland inquired if there was any discussion on the invoices presented. There being no discussion, Chairman Sutherland inquired if there was a motion to pay the invoices. A motion was made by Mr. Bear and seconded by Ms. Phillips to pay the invoices as presented. The motion passed unanimously with all members present voting to pay the invoices.



Mr. Slate reported on the following:

1. Mr. Jonathan Hanks, a class two operator, resigned on 11/10/19. 2. Jamie Rickman and Gregory Porter have started working for us this month. 3. AMR (American Mine Research) has been given the go ahead to start with the

SCADA upgrade project. AMR was onsite 10/24/2019 to correct hopefully the last SCADA networking problem for a while. On 11/13/19 we came into all three filters being drained. We lost 2 hours of production after backwashing and gethng everything back to where we needed to be. AMR has been contacted to help find a solution to this problem.

4. Elvan has been working with his contact at the Department of Environmental Quality (DEQ) a [committee] meeting was on November 19th, 2019 at the New River Regional Water Authority to discuss the withdrawal permit renewal.

5. Surry Chemical delivered sodium permanganate on 11/1/19. Them pumping the totes was a much better than us dealing with the barrels as before.

6. Raw Pump maintenance quotes came in from 2 different companies. Operators were concerned about getting quotes due to the Christmas hams from our current contractor. We look to save around $12,000+/- for a basic rebuild by switching companies. Maybe we could approve purchasing hams with the savings? Raw well access. Currently there is a, I believe, 40 foot extension ladder tied into place in the raw well for access. It has been in place for many years. We have $10,000 budgeted in construction to add a ladder. Instead of adding a ladder from the top, I

2

have started discussing with Russell Jackson about adding an access on the outside, near the bottom, for a much safer access to the raw well for pump maintenance and/or cleaning. Feasibility is yet to be determined.

7. McCraw Trucking was onsite 11/4/19 to begin cleaning Lagoon #2. The Lagoon has been cleaned and is back in service.

8. VACORP will discuss with WCPS (Wythe County Public Schools) whenever we are ready to pursue internships.

9. Generators were filled with fuel on 11/15/19 by Homestead Oil. 10. Basin number 2 was cleaned 11/20/19.

Mr. Dalton made a motion to approve a $100 net pay bonus to each employee of the New River Regional Water Authority. The motion was seconded by Mr. Reeves. The motion passed unanimously with all members present voting to pay each employee of the New River Regional Water Authority a $100 net pay bonus.


RE: BOARD TIME

Elvan Peed reported on the DEQ committee meeting held on November 19th, 2019. Mr. Peed reviewed the items covered at the meeting. The main topics discussed being the need to justify our request for allotted withdrawal capacity and keeping our current raw water intake screen size intact. Mr. Peed does not recommend bringing this before a panel. The application for our withdrawal permit needs to be submitted 270 (two hundred and seventy) days prior to the expiration of our permit, January 8, 2021. Target date is January, 2020.

Mr. Dalton reported he knew of 2 (two) biologist if we need to do an impingement study.

Mr. Peed reported we need to fix one of the air lines used for cleaning the screen in the river.

RE: ADJOURNMENT


C. Wayne Sutherland, Chairman


3

MINUTES OF THE REGULAR MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY


IN WYTHEVILLE, VIRGINIA Thursday, December 19, 2019 AT 10:00 A.M.

Members present: C. Wayne Sutherland, Jr. (Wytheville, Stephen Bear (Wythe County), Dana Phillips (Carroll County), Tim Reeves (Wythe County), Joseph E. Hand, Jr. (Wytheville), Gene Homey (Wythe County)

Members absent: Cellell Dalton (Carroll County)

Others present: Zachary Slate, Robby Krunich, Trevor Hackler, Andrew Austin, Elvan Peed, Billy Anderson


Chairman Sutherland established that a quorum of Authority members was present and called the meeting to order at 10:00 am.



RE: CONSENT AGENDA

RE: CITIZENS' TIME


RE: VENDOR TIME

Chairman Sutherland inquired if there were any vendors present who wished to address the Authority. There being no vendors to address the Authority, Chairman Sutherland proceeded with the agenda.


Chairman Sutherland advised that the next item on the agenda was the Approval of the Invoices as follows:

I

1. AEP $12,201.68 2. Town of Wytheville (November) $84,079.58 3. Wythe County (October) $23,572.10 4. Wythe County (November) $23,816.13 5. Enel-X (Credit) $1,320.40

Chairman Sutherland inquired if there was any discussion on the invoices presented. There being no discussion, Chairman Sutherland inquired if there was a motion to pay the invoices. A motion was made by Mr. Reeves and seconded by Mr. Homey to pay the invoices as presented. The motion passed unanimously with all members present voting to pay the invoices.




1. Basin 1 was cleaned on 11/25/19.

2. The power bills were late. They were turned in Monday 18 and due the 19. The fees total $160.74 if they all go through.

3. Our heat pump began making noise. It is still under the 15 month warranty. I contacted the original installer's company to look at it. They found 2 sensors bad and are on order.

4. Water demand has increased, and my understanding is it will remain so, with the exception of Christmas, until March. I have been working the difference this month of the evening when allowed by our variance but I intend to do something different in January2020. My calculation iswe need around 13.5-14.0 hours perweek dayto meet demand while remaining on 12 hour weekends. The difficultly is the demand is beyond the 12 hour threshold, each trainee has to be paired with a classed operator, and only a classed operator can work solo during the permitted times of our current variance. A few possible options I can see, aside from continuing as is, to meet the demand is the following:

I. Schedule change using three (3) teams

Mr. Slate continued on to describe the three (3) team schedule, how it would work, the amount of coverage it would provide or not provide, and he also addressed potential pros and cons.

Discussion followed including the risks of losing classed operators if this was

2

implemented.

Mr. Slate reported our current job opening has been posted for over a month (11/7) and only one classed operator has applied. Unfortunately they will not be an option.

II. Allow the Town of Wytheville to make up the difference by their water treatment plant working extended hours until we are staffed to effectively use the above schedule.

Mr. Slate reported how this work and the effect it would have on the Town's Water Treatment plant.

Mr. Slate reported I don't like either option. We're at a run a major risk with our current staff as it is. How far are we willing to push it or how much risk are we willing to assume? The plant is an asset to each locality served, the people in those localities, and to the businesses we provide for. In being proactive, I have recommended salary increases recently as a means to attract and hold operators. It still remains that we will be in significant trouble when classed operators do decide to leave especially if our trainees aren't class 2 or higher at the time. Another recommendation I have is to hire additional trainees in preparation for that time. To summarize, these are 2 options I see to meet the demand: Accept more risks and change the schedule, or let the Town Water Plant make up the difference. In the end, I believe ultimately having 2 shifts is what we need, but with the staff available to do it. Hopefully we will receive class 1 or 2 applicants soon as it is a scary situation to be in. How would you like me to proceed with this?

Discussion ensued about staffing insufficiency, the open position, schedule, salaries, part time operator options, cost effectiveness, overtime options, and water rate increase and debt service impact. It was requested for Mr. Slate to prepare a report on what is needed to have the necessary staff coverage.

There was discussion about current storage tanks and the future Lot's Gap tank impact.

Mr. Slate report the Town of Wytheville has received over 80% of their capacity allocation a few days so far this month. Per our Waterworks Business Operation Plan, a locality would have to average 80% or higher of their capacity allocation for 3 months. One potential issue that has surfaced in light of this is currently the Town can receive around a maximum of 1.33 million gallons per day (MOD).

5. Our sprinkler system was inspected on 12/11/19, and everything was fine.

6. We are starting to jar test different coagulants to hopefully find a better product. We have been using DelPac 2020 for many years. As mentioned before it could allow for cost savings, better performance, and reduce or eliminate line/pump clogging. I

3

have noticed we have been having trouble after mud events with fine suspended floc carrying through our basins when it should ideally be settling out. I really hope to find a chemical that will check all these boxes. It's going to be a very educational experience for the entire staff.

7. Mr. Peed contacted me that we need to authorize payment of the $25,000 for our withdrawal permit renewal. We have enough in the contingency fund to cover this permit.

A motion was made by Mr. Bear and seconded by Ms. Phillips to authorize payment in the amount of $25,000 for the withdrawal permit. The motion passed unanimously with all members present voting to authorize payment of $25,000 for the withdrawal permit.

Chairman Sutherland asked Mr. Slate have an operators meeting and discuss the NRRWA situation before the next board meeting.


RE: BOARD TIME

Elvan Peed reported we look to get the DEQ withdrawal permit [application] submitted in February.

There was further discussion of water storage, Lots Gap, demand, high water users, and managing the water and time.

RE: ADJOURNMENT


C. Wayne Sutherland, Jr., Chairman


4

Town of Wytheville Invoice No. 1034 P.O. Box 533, 150 E. Monroe St. Wythevi!Ie, VA 24382 276-223-3333 fax 276-223-3315

INVOICE Customer

Name NEW RIVER REGIONAL WATER AUTHORITY Date Address City State ZIP Phons 1

12/26/2019

Qty Description Unit Price TOTAL MONTHLY INVOICE-DECEMBER 2019

1 EXPENSES FOR DECEMBER 2019 $53,447.55 $53,447.55

NRRWA

,/— Payment Details SubTotal $53,447.55

$0.00 ® Check

Check #

Make Checks Payable to: Town Of Wytheville TOTAL $53,447.55

Amount Due 30 Days from In voice Date

r

80. 00- 80 00- 16,421 fl 99 67

9,000.00 90.00 49,326. 90 89. 68

4,224. 36 35.11 4,504. 84 90. 00 3,420.00 54 76 5,697.03 2?. 13

420 00 100 00 159,5,13. 18 51.96 94,850. 56 56. 02 5,679,58 59.16

469.00 2.60 4955 12.30

292.94 97.64 885.00 68.5.0 913.40 60.89 25.71 3.67

4,803. 39 60 85 30903 7700

72,591.83 48.07 2,002. 40 50. 06 3,767.50 53.82

437.91- 87.58- 300. 00 100. 00 22.67 283

1,584.1.2 79 20 301.00 75.25

1,691.00 84.55 321.52 18.91

44,429 08 100 00 43,813.65 98.42 78,436.14 30.67 363O3.00 24.30

200,649.75 25.69 844,521. 36 40.5.2

.00 844,5.21.36 40.52

.00 844,521.36 40.52

12/2,5/2019 14 14 (106.0

F$*(D 8-005 42(010 EXIH5ES

ACCII D[SCRIPTIOM

--Off All --

3000 OF 31IHEUIILE ERI4I1139E 51J11427

7/01/2019 - 12/3112019 --DETAIL--

8000(3 *R. WE3(T 7-1-9 El1W48*(CE 08585001(9RD 11 110301 842(341 84218(1 8(111841 81(3)81 (OLANCE IV

997 N103 E)8'ENIES - 46000 4(9 RIVER 8(0808*1 IMIER AUIHIRIIY

3110 P80FESSII)8*L NCN.TH SERVICES 190 03 100 00 180.00 190.00 3130 0 S P001(15108*1 50RVICE 16,535 (1' 16,535 00 .00 53.78 3140 EMEERINE 5(801(15 10,000.30 10,000.00 .00 1,000.00 3160 REPAIR 8*ThTE8*(CE 0 1 854(84 55,000.00 55,000.00 505.00 5,674.00 3161 0 5 IHSIRIJ1EHTATIE84 5(9011.11 12,000.00 12,000.00 (84 7,785.64 3162 0 1 14(84*1(847 TEETIME 5,000 (0) 5,000.00 40.80 495.66 3163 0/5 0(14009 - (139185 6,300 80 6,330 00 .00 2,850.00 3180 ILUDGE (01)U0L 20,010.00 21,000.00 6,643,22 15,302.17 3600 300(0 111185 420 00 420. 00 . 00 . 00 3841 71811W OIlIER £8101111 - OYIHE 10 306,981.00 306,981,00 23,899.93 147,467.22 51.11 EIECIRIC*1 SI84JICES 167,860.00 167,860.00 12,278.79 73,007.44 5231 1(LEC424281C*IIl8(S 9,900, (Xl 9,600.00 635.18 3,920.42 5302 FIR(/11411119/ffiI84(RIY 1(4S184810E 19,000 01' 18,000.00 .00 17,531.00 5510 18*851 PtILECOE 420.00 420.00 . 00 15.0. 42 5530 18*851 85855 300(3 300.00 .00 7.06 5540 18*851 CIIWJEI41I00S 0 (016*1106 1,000.90 1,090.00 .00 315.00 5810 7(08115, LICENSES I NEJIKP.SKIP5. 1,500.00 2,500.00 126.30 586.80 6001 OFFICE 01iI'UES 700 08 700.00 .00 674.29 6004 180(8491(849 5110811(5 6.000,09 6,090.00 743.13 2,396.61 6305 J8411(PI9L 52)9911(5 500 03 500 (3 ((0 1.10. 97 6006 P(03CE15 CNC(UCAL.5 150,970.00 150,990.00 5,768.42 72,398.17 6007 801(91*1. 840 5149#UE,5 4,000.03 4,000.00 953.47 1,997.80 6008 UE}IICIE *4(0 780(0 (00178591 S(P(1.IE 7,000.00 7,000.00 1,024, 07 3,232.50 6009 (IAIMIE9AM(1 (0027851(1 500. 00 500. 00 . 00 937. 91 6012 ('lOWS 04(0 54 CR1971033 300.00 300.00 .00 .00 6014 OTHER O(8*TI85 539911(5 800.00 800.1.0 00 777 33 6015 0(1480 PLANT 1390001(84815 2,300 00 2,000 (0 .00 415.89 6019 1801.5 04 5084911E5 400 90 408.03 .00 99.00 6023 0(PAIR/8*I8TE90)CE I95184J85W1ATIUN 2,000.00 2,000.03 319.00 309.00 6027 584T17 (001(31(01 1,780.00 1,700.00 320.76 1,378.42 8000 C80HNEEHCE 44,429 00 44,429.00 .00 .00 8010 (005100(1108 COIl 44,500 (3 44,500. (Xi 00 686. 35 9100 548850 DUO 5(00111 255,700 30 255,700.00 .00 177,263.86 9115 18*14 - U S 0081 2008* 140,393 00 149,393.00 .00 103,090.00 9120 1009 - U S 8*81 20159 780,781. (81 780,781.00 .00 580,131.25.

(((II RIVER 0(5108*1 181(0 81i1985157 2,003,749.00 2,063,749.00 53,447.55 1,239,fl?.64

((CU 0PJE92 8(518801 901(9 011311117 2,803,737 8) 2,083,T19. (33 53,447.55 1,239,221.64

--1429 10901.-- 2,083,749 00 2,003,749.00 ( 53,447.55 }1,239,22?.64

REF * DATE 12/02 18,473.43 12/02 29,785.50

12/04 21,360.00 12/30 26, 995.25

AMOUNT REF * DATE AMOUNT REF # DATE AMOUNT 12/31 16,541.40

NadOn1 Vow Futul% Your Baflk.

100 South Main Street P.O. Box 90002 Blacksburg, Virginia 24062-9002 540-552-2011 • 800-552-4123 www.nbbank.com

iIi.i73 12/31/2019

30-0 5 2

**********AUTQ**ALL FOR AADC 240 4024 0.7510 AB 0.412 14 2 202

'IIiIiIiII'I'IIIuI,IiIlIIIIlIIIII'iIiIIIII'IIIuIIIIi,Iuhu'III'II NEW RIVER REGIONAL WATER AUTHO P0 BOX 966 WYTHEVILLE VA 24382-0966

LOCAL BANK. PERSONAL SERVICE.

NOW - PUBLIC FUNDS ACCOUNT 7511173

LAST STATEMENT 11/29/19 6 CREDITS 2 DEBITS

THIS STATEMENT 12/31/19

1,962,578.55 115, 977.63 137, 527.13

1,941,029.05

DEPOSITS

OTHER CREDITS DESCRI PT ION DATE AMOUNT INTEREST 12/31 2,822.05

CHECKS CHECK IL .DATE AMOUNT CHECK *. .DATE AMOUNT CHECK IL .DATE AMOUNT

1280 12/03 84,079.58 1281 12/31 53,447.55

INTEREST

AVERAGE LEDGER BALANCE: INTEREST PAID THIS PERIOD: INTEREST PAID 2019: INTEREST RATE:

*

1,950,848.06 INTEREST EARNED: 2,822.05 2,822.05 DAYS IN PERIOD: 32 27,489.39 ANNUAL PERCENTAGE YIELD EARNED: 1 - 66%

1 - 650 0% * * CONTINUED * * *

Member FDK NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORM4T1ON

'.LI1/J 12/31/2019 V

YourRYOinBank

100 South Main Street P.O. Box 90002 Blacksburg, Virginia 24062-9002 540-552-2011 • 800-552-4123 www.nbbank.com

NEW RIVER REGIONAL WATER AUTI-lO

NOW — PUBLIC FUNDS ACCOUNT 7511173

— — — ITEMIZATION OF OVERDRAFT AND RETURNED ITEM FEES — — —

****************************************************** ***************** * TOTAL FOR TOTAL * * THIS PERIOD I YEAR TO DATE * * *

* TOTAL OVERDRAFT FEES: $ . 00 $-00 *

* *

* TOTAL RETURNED ITEM FEES: $-00 s -aD *

******************************* ********** ******************************

DAILY BALANCE DATE BALANCE 12/02 2,010,837.48 12/03 1,926,757.90

DATE BALANCE 12/04 1,948,117.90 12/30 1,975,113.15

DATE BALANCE 12/31 1,941,029.05

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION

Member FDK LENDER

28O1

l23 NEW RIVER REGIONAL WATER AUTHORITY

.,rl.4aa

7'1a1.cI.' Sr$y-

' 74f. I' - 'OOEBO' :cs'.I3I22: ?5?3.

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1280 -$84,079.58 -12/3/2019

12S1

1 NEW RIVER REGIONAL WATER AUTHORITY

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/aJy £Tt .'/ .00&8I. :aSII.O32: ?S1?

1281 -$53,447.55 -12/31/2019

AGENDA FOR THE REGULAR MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY


IN WYTHEVILLE, VIRGINIA THURSDAY, FEBRUARY 20, 2019, AT 10:00A.M.


RE: PLEDGE OF ALLEGIANCE

RE: CONSENT AGENDA

RE: CITIZENS' TIME

RE: VENDOR TIME

RE: APPROVAL OF INVOICE

1.AEP 2. Town of Wyfheville (January) 3. Wythe County (December)


1. Raw Water Communication 2. Coagulant Tank 3. Flow Meters/Instrumentation 4. VDH Inspection 5. Water Demand 6. Chemical Prices 7. WCC 8. Flood 9. HVAC 10. Austinville Pump Station

RE: BOARD TIME

1. Audit Acceptance 2. Budget Development

$13,734.70 $26,869.13 $26,595.02

Chief Operators Notes

1. We have had communication failures with the Raw Pump station intermittently on 1/20/2020 the Raw pumps had to be started at the river and we regained communication later that day. The nect day was the same, but it never came back, After talking to Roger, with American Mine Research, and Citizens Internet we were able to resolve it. It was an internet service provider issue. We had a similar issue occur multiple times; it was easy to catch after the last event. Citizens Internet was able to correct it quickly that day. On 2/12-13/20 it occurred again. This time Citizens was on site and found poor signal. They worked to resolve,

2. We are working toward cleaning out the sediment in our coagulant tank. We are/have been running out of a temporary tank until it is cleaned,

3. Our flow meters readings were verified on 1/23/2020 by Instrumentation Services Inc. We have shipped back an inline turbidity meter that is covered under warranty to be repaired. Installed raw water turbidity meter 2/14/20

4. Mr. Eric Herold was onsite for an inspection on 2/4/20. Overall the inspection was positive. Most everything was corrected from his previous list. Currently our loss of head gauges need to be calibrated. We will have to replace a small pressure gauge or 2 and have the readings synced with the SCADA system. Conversations later in the week with Eric resulted in testing changes that will save us money in lab chemicals as well as easier testing. (Go over list)

5. Water demand has increased. It seems to be an on and off pattern varying by the week. We have produced 1.24 MG more this January and on track to produce 5.9MG this month compared to last February.

6. Brenntag is now manufacturing sodium hypochiorite. We're going to save $105/load for a total savings of around $525/year. There is a chance it will go even cheaper.

7. 2 operators are scheduled to affend the Wytheville Community College class in March to get the continuing education credits needed to keep their waterworks operator license.

8. There was a high water event that started on 2/6/20. The town was shut down later that night so we worked late. On 2/7/20 the Town's intake clogged up causing them to shut their plant down again. Later they used pumps to bypass the clog so they could operate. Discussion was made about Town of Wytheville employees working at NRRWA a 3rd shift to help out us both out. There were concerns as to how pay and how insurance would work. It was decided to not use this option unless necessary. I believe if the Town does become our fiscal agent it will be a more feasible option for future emergencies. We were able operated some extended hours as permitted to help in this event.

9. HVAC was repaired on 2/12/20. 10. APS was left on night of Feb. 8th, 2020

MINUTES OF THE REGULAR MEETING OF THE NEW RIVER REGIONAL WATER AUTHORITY HELD IN THE COUNCIL CHAMBERS OF THE

TOWN OF WYTHEVILLE MUNICIPAL BUILDING ON THURSDAY, JANUARY 16, 2020, AT 10:00 A.M.

Members present: C. Wayne Sutherland, Jr. (Wytheville), Stephen Bear (Wythe County), Joseph E. Hand, Jr. (Wytheville), Gene Homey (Wythe County) Cellell Dalton (Carroll County)

Members absent: Dana Phillips (Carroll County), Stacy Terry (Wythe County)

Others present: Zachary Slate, Robby Krunich, Trevor Hackler, Andrew Austin, Elvan Peed, Billy Anderson, Betty Taylor


Chairman Sutherland established that a quorum of Authority members was present and called the meeting to order at 10:02 a.m.

RE: PLEDGE OF ALLEGIANCE


RE: CONSENT AGENDA

Chairman Sutherland presented the Consent Agenda consisting of the minutes of the special meeting of November 14, 2019, and regular meetings of November21, 2019, and December 19, 2019, to the Authority members for approval. Chairman Sutherland inquired if there was any discussion on the minutes as presented. There being none, Mr. Hand made a motion, which was seconded by Mr. Bear to approve the Consent Agenda consisting of the minutes of the special meeting of November 14, 2019, and regular meetings of November 21, 2019, and December 19, 2019, as presented. The motion passed unanimously with all members present voting to approve the Consent Agenda, as presented.

RE: CITIZENS' TIME

Chairman Sutherland inquired if there were any citizens present with topics of discussion during the meeting. There being none, Chairman Sutherland proceeded with the agenda.

RE: VENDOR TIME

Chairman Sutherland inquired if there were any vendors present who wished to address the Authority. There being none, Chairman Sutherland proceeded with the agenda.

I


Chairman Sutherland advised that the next item on the agenda was the Approval of the Invoices, as follows:

1. AEP $15,226.49 2. Town of Wytheville (December) $53,447.55

Chairman Sutherland inquired if there was any discussion on the invoices presented. There being none, Chairman Sutherland inquired if there was a motion to approve payment of the invoices. A motion was made by Mr. Dalton and seconded by Mr. Hand to approve payment of the invoices, as presented. The motion passed unanimously with all members present voting to approve payment of the invoices, as presented.


Chairman Sutherland advised that the next agenda item is the Chief Operator's Report. He then turned the meeting over to Mr. Slate.


1. Elevator inspection was performed on 12/17/19. The inspector found a Building Code violation, and the alarm bell was not working. I have contacted our maintenance company, and it was fixed on 12/23/19. It was a dead battery.

2. 1st Quality Air was onsite 12/17/19, to perform regular maintenance on our air blower and compressor.

3. We received the newly issued Waterworks Operation Permit on December 20, 2019. The variance of four-hour evenings, and ten-hour Sundays and Holidays is still included. We have 30 days to appeal, if necessary.

4. Our benchtop pH meter started showing signs of issues. I ordered a new benchtop meter on 12/30/19, as a replacement.

5. Seeking approval to sell old turbidity meters, broken flow meters, riding lawn mower, push lawn mower and non-working pressure washer.

A motion was made by Mr. Dalton and seconded by Mr. Bear to declare the old turbidity meters, broken flow meters, riding lawn mower, push lawn mower and non-working pressure washer as surplus. The motion passed unanimously by all members present.

6. Operators' meeting was held on 1/9/20, with a total of 12 people present. Those present included representatives from each Locality and Peed and Bortz engineers. The main two topics covered were the staffing and scheduling at the NRRWA and

2

the distribution system of the NRRWA, Wythe County and Wytheville. There were five recommendations that originated from the meeting.

Mr. Peed discussed the history of the NRRWA plant, past year water totals, increased production/demand, efficiency, financial changes, and, he reported on the following recommendations by the representatives (Wytheville, Wythe County, Carroll, NRRWA, Peed and Bortz) at the Operators' meeting:

a. Seek approval to hire another operator at the NRRWA in the next fiscal year, due to increased demand and to help scheduling.

b. Request the Town of Wytheville to be the NRRWA fiscal agent. This would allow operators at both the NRRWA and the Town of Wytheville Water Plants to be under the same umbrella, the ability to form an operator pool, cross training, possibly provide salary uniformity to hire operators and promote stability in staffing.

c. Have a volunteer from the Town of Wytheville staff (Robby) establish contacts with our high water users, in order to obtain and share the projections of water use with each of us.

d. Add the Lots Gap tank to the water distribution system to help the management of water for each locality, provide a buffer for high use times, plant operational flexibility and prevent over pressurizing the system.

e. Add controls at the Fort Chiswell Pump Station that would allow Wythe County to monitor and control the pumps.

There were explanations and discussions about the recommendations, costs and how to cover the costs of the recommendations, and how to proceed in the future.

Mr. Dalton requested the Industrial Development Commiftee meet with the two big users (Gatorade and Pepsi) for a 10 year projection.

Chairman Sutherland inquired if there were any question or comments for Mr. Slate. There being none, he proceeded with the agenda.

RE: BOARD TIME

Mr. Dalton discussed the budget development and the recommendation of developing a true rate or cost of the water.

RE: ADJOURNMENT

Chairman Sutherland inquired if there was any other business to come before the Authority. There being none, he carried to adjourn the meeting at 10:39 a.m.

3

C. Wayne Suther'and, Jr., Chairman


G \NRRWA\MINUTES2020\011620- NRRWA Minutesdoc

4

YD11 DEPARTMENI OF HEAtTH

PPOScWV Yaufl YOW Ent*w,nwt

Office of Drinking Water

PWSID: 1197435 Shading Identifies a Potential Significant Deficiency

PROBLEMS IDENTIFIED AT LAST INSPECTION CORRECTED? 2/12-4. It is recommended the roof at the sludge handling tanks be extended over the concrete floored sections so that these sections may be protected from rain and be allowed to dry to a point where the operators could place the partially dried sludge onto the drying beds for further drying. Currently access and cleaning of these facilities is limited to periods of extended dry weather according to the operators.

Not Corrected

NEW COMMENTS FROM THIS INSPECTION 2/20-1. Repair or replace at least one of the three broken fluoride-metering pumps so that you have a backup. Funding may be available from Jeanette Bowman, Community Water Fluoridation Coordinator, by applying for a grant as discussed during the inspection. 2/20-2. Perform the required annual calibration of the filter Loss-Of-Head gauges as soon as possible and properly adjust the transmitter and SCADA system to record the correct filter Loss-Of-Head. 2/20-3. Repair or replace the broken sodium permanganate-metering pump at the raw water intake. 2/20-4. Evaluate the Streaming Current Monitors (SCM) settings and follow the manufacturer's recommendation for zeroing the equipment. It appears the units may not have been properly zeroed after making recent repairs as noted by the wide variation between Train 1 (-15) and 2 (+ 10) SCM results when both trains were receiving identical treatment. 2/20-5. Perform the required annual calibration of the polyaluminum chloride, soda ash, sodium permanganate hydrofluosilicic acid, powdered activated carbon, sodium hypochlorite and orthophosphate corrosion inhibitor. These annual calibrations are due in 2020. 2/20-6. The waterworks industry recommends evaluating the filter media depth and condition annually. This is especially important for older filter media like the NRRWA (filter media is approximately 11 years old). Media (both the anthracite and silica sand) should have sharp edges (not rounded) and there should be 18-inches of anthracite media, 12-inches of silica sand, and 3-inches of torpedo support sand in accordance with your Operation Permit Waterworks Description Sheet. 2/20-7. Complete the required annual testing of the water treatment plant backflow preventers due in March 2020. 2/20-8. Complete the installation of the new raw water surface scatter turbidimeter as soon as possible and make sure to properly calibrate this unit with primary turbidity standards. 2/20-9. We encourage the NRRWA to send recently hired operator trainees to local and regional training events. These include the Virginia Tech Waterworks Operator Short School in early August 2020, and the Wytheville Community College Waterworks Operators course.

Attachments: Part Il-A Part Il-B Part II-D

PART 1 6

VID' I VIRGINIA

DEPARTMENT I I OFHEAI.TH

flcMeS Yeu.nd Va., EaaPo.w

Shading Identifies a Potential Significant Deficiency

Office of Drinking

Wateq

PWSID: 1197435

SUMMARY

PROBLEMS IDENTIFIED AT LAST INSPECTION CORRECTED? 12/19-1. Perform the required annual calibration of the polyaluminum chloride, soda ash, sodium permanganate hydrofluosilicic acid, powdered activated carbon, and sodium hypochiorite and orthophosphate corrosion inhibitor as soon as possible. These calibrations were due in 2018 or Januaiy 2019.

omp e 1 ted in 2019

2/19-2. Repair or replace the two broken fluoride-metering pumps and the inconsistent bench fluoride residual testing equipment. Funding may be available from Jeanette Bowman, Community Water Fluoridation Coordinator, by applying for a grant as discussed during the inspection.

Not Corrected. Only 1 pump operational

2/19-3. Repair or replace the third carbon metering pump currently been used for spare parts so that it may be placed into service if one of the two existing metering pumps feeding the two treatment trains breaks.

Corrected

2/19-4. Perform annual filter bed expansion tests on all three filters during 2019 to document the condition of the aging filter media. The expansion rate should be between 15% and 30% of the depth of the filter media. A more in depth evaluation of the filter and filter media should be performed if the expansion rates falls below 15% or historic values (approximately 20%) in order to determine if additional media needs to be added or if media needs to be replaced.

Completed

2/19-5. Perform the quarterly filter drop test and filter rise test on all filters to verify filtration rates are below the permitted 4 gpm/ft2 and the backwash rate is above 15 gpm/ft2. These tests can alert staff to changes in the filter rate-of-flow controllers as well as the condition of the aging filter media.

Com leted I'

2/19-6. Obtain new primary turbidity standards and complete the required quarterly calibration of the inline turbidimeters as soon as possible. Several inline turbidimeters are several quarter over-due

Corrected Expire January 2021

2/19-7. Complete the repairs to the inline pH monitoring system downstream of Flash Mixer No. 2. Corrected

2/19-8. Adjust the flows to Treatment Train No. 1 to equal to the flow going to Treatment Train No. 2 so that equal detention times occur the flocculation and sedimentation basins. The slightly higher flow rate to Treatment Train No. 1 may be a reason for documented slightly higher settled water turbidities found at the end of Sedimentation Basin No. 1.

Corrected

8/18-3. It is recommended the proposed new SCADA systems at Wytheville and Carroll County waterworks be integrated into the NRRWA SCADA system so that coordination of the operation of treatment plants and pump stations can occur between Authority members. It may be necessary to replace the NRRWA system in order to make this integration possible due to the age of the NRRWA SCADA system. This Office must review new SCADA systems at the Wytheville and NRRWA water treatment plants if the new SCADA systems are to include the required continuous recording of pH, turbidity, and free chlorine residuals at each water treatment plants.

New SCADA h d P1

P e ed7

d ll 500fl an wi OW

monitonng of other

2/17-2. The addition of new operators and/or operator trainees to replace the recent departure of an operator trainee is recommended in order to provide the needed staff to operate the plant over all shifts. The current 3 full time operators, I part time operator, and 2 trainee may not be able to cover holiday operations and to cover the plant operation due to staff illness.

N ted Ad ye ismgor new

p

8/16-2. Complete the calibration of the Filter Aid/Polymer feeders prior to placing the feed equipment into service. N cted 0 orre

8/15-2. Continue to closely monitor, calibrate, and repair the problematic inline turbidimeters and pH meters as needed. These units are critical to complying with the Waterworks Regulations as well as informing the operating staff of important water quality changes. The manufacturer no longer supports the current inline turbidimeters, so funding for replacement units is needed as the equipment breakdowns.

NA — Replaced settled/filtered/finished water units with Hach.

Have new Hach Surice Scatter Unit for raw awaiting installation.

8/13-3. Audible alarms are recommended throughout the treatment plant building and grounds in order for operators to be informed of critical alarm situations when not in the laboratory. The alarms should include but not limited to high filtered water turbidity, low fimshed water chlonne residual, pump failures, etc., as reported/recorded by the SCADA System.

Not Corrected

PART I 5

Town of Wytheville Invoice No. 1041 P.O. Box 533, 150 E. Monroe St. Wytheville, VA 24382 276-223-3333 fax 276-223-3315

INVOICE Customer

Name NEW RIVER REGIONAL WATER AUTHORITY Date Address City State ZIP Phone

'I

1/31/2020

Qty Description Unit Price TOTAL MONTHLY INVOICE JANUARY 2020

1 EXPENSES FOR JANUARY 2020 $26869.13 $26869.13

N RRWA

Payment Details SubTotal $26,869.13

$0.00

® Check Check#

Make Checks Payable to: Town Of Wytheville TOTAL $26,869.13

Amount Due 30 Days from In voice Date

13360 1-095

ASCII

199 46000

3110 01.30 3140 31.60 3161 3162 3163 3180 3600 3841 5111 5211 5302 1510 5530 5540 1810 6003. 6004 6005 6086 6033? 6000 6009 6812 6811

- 6015 6019 6023 6027 3000 8010 91.00 91.15 9120

1/31/2020 10 30 GI.00'3

--351811--

R1816 EXPEWSES

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?,'01/2019 - 1/31/2020

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0 100100115808 01310 sErOrCIS 12,000 no 12,000.00 .00 7,785 64 .00 4,214.16 35.11 0 0 16000313000? pr" 5,000.00 5,000.00 657.57 1,153.23 00 3,846.?? ?6: '2/S 0(6300 - 011016'; 6,300 1)' 6300.00 .310 2,850.08 00 3410.00 54.76 010361 860)10311 21.000 01) 21,800 00 .00 15,102.17 06 1,697.83 27.13 APIJERTISX10 4513.00 410.00 .00 .00 00 458. 00 100. 011 P1111 OF OTHER Eoiia:o - Wi THE CO 8)6,901,00 106,981.00 110.00 147,577.22 00 159,403 78 51 92 111C181581 0(081:51 167,860 1333 167,860.00 15,226.49 89,035 93 01) 78,824 0? 46,95 TELEC080J8ICATI0,r' 9,03)0 1)l 9,00I3 03) 637.19 4,558.81 30 5,1341.99 57 52 FERE/LCHOILI3Y/6013'3j303 113213040Cr 16,000 1-3 1.8,000 06 .00 17,531.00 033 469.00 2 60 1RAV 1111(065 11)0. I' 400. 00 - 00 350. 41 00 49. 55 12. 30 TO8USI. 300813 100.00 300.00 68. 31 75. 3? - 00 220. 61 74 87 TRAVEL 51303850110/0 3, E08'01tW 1,000 31I3 1,000.00 307.00 622.00 .00 378.06 3? 80 P51131113, 115583(0 #CC31ii' 1,563) 0') 1,500.00 340.00 926.60 013 571.40 36.22 ITTICE TIJPPIT.53 71313 93 700. 00 11. 00 601.29 - 00 1-1. 71 2. 13) LAE)0081000f 10P?L''1 .1,0101) 81) 6,000 00) 1,095.04 3,491.65 00 ,S0.3. 25 41.01) .3461100111 3008w:-: 503: 16 500.00 .00 110.9? 00 389.00 77.81) P005(30 CHEMICAl: 150,990 00 150,990.013 1,894.97 79,493.14 333) 71,496.06 47.35 £34050101 0033) IUPI'16E$ 4,0130 00 4,000 00 140.14 2,145.74 01) 1,814.26 46.35 VEHICLE 0833 00311.11 EOIJIPIII3' OIJPFIOE 7,000.03) 7,0330 00 2,482.52 5,715.02 .00 1,284.98 18.35 'IAIHTEHOHCE 210135333 501300 500 81) .101 937.91 01) 437;91- 07.58- 000 P.S 883) 0000661011583 3330 33) 060.00 .00 .031 .00 300.00 100.00 OTHER 005001386 IOPPLI6.3 8330.08 003.00 234.06 1,011.33 .00 211. 03- 26.41- 811306 01.001 IWR)IVEHEOTO 2,060.08 2,000 00 .00 415.88 00 1,504.12 7?20' 1)1013 8833 00PP1,0 4)0.00 488.00 .00 99.00 DI) 301.00 75.25 3)EPAIR/NAIHREHW:3. 10303fll1.KTATIDH 2,000 0/ 2,000 80 .00 109.00 00 1,691.00 84.55 SAFETY 58131031(31? 1,7033.01) 1,700.00 91.56 1,474.84 .00 225.96 13.29 -1601HREHC? 44,159 3" 44,419.00 .00 .00 .80 44,459.00 100.00 CIOCOTR116TIOH 5351 44,501) 10 44,500.80 2,671.14 0,361 49 08 41,138.51 92.44 53180(0 0(01050811)1 255,700.033 251,780.08 .00 177,263.86 00 7L43614 30.6? 103)8 - U S 63)80 203168 149,393.00 149,391.00 .00 U3,090. 01) 00 16,103.00 24.10 L0416 - '2 S 68100 2'3154 780,781.00 780,781.00 .00 580,131,21 .00 100,649.75 25.69

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817,652.23 31.23

- -FI83D 10081-- 2,06,?4? 000 2,083,749.00 26,869.33 1,268,096.77 .00 817,652.23 39.23

Finance Director's Office 340 South Sixth Street — Administration Building

Wytheville, VA 24382-2598 Telephone (276) 223-4526

FAX (276) 223-4515

Bruce Grant M.B.A. Finance Director

January 23, 2020

IN VOICE

New River Regional Water Authority Attn: Mr. Zachary R. Slate Post Office Box 533 Wytheville, VA 24382

Please accept this letter as an invoice for the New River Regional Water Authority payroll cost for the month of December 2019.

Monthly Operations of Payroll for NRRWA $26,595.02

Adjustments:

Net Billable Expenses $26,595.02

Total Due $26,595.02

If you have any questions, please feel free to call.

Sincerely,

Bruce Grant Finance Director

CC: Mr. Michael Stephens

Accounting ref: 11003-319019 F:\Finance Director\FY2020\lnvoices\NRRW\lnvoice to NRRWA for payroll December 2019.docx

01/23/2020 09:00 4952bgrant

Wythe County YEAR-TO-DATE BUDGET REPORT

P 1 glytdbud

FOR 2020 06

ACCOUNTS FOR: 1100 General Fund

ORIGINAL APPROP

REVISED BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES

AVAILABLE BUDGET

PCT USED

44013 New River Regional Water Autho

44013 411100 SALARIES 219,387 219,387 110,633.48 19,175.53 .00 108,753.52 50.4% 44013 412100 PART-TIME PAY PERSONN 16,952 16,952 .00 .00 .00 16,952.00 .0% 44013 413300 OVERTIME PAY 5,336 5,336 58.11 .00 .00 5,277.89 1.1% 44013 421100 HEALTH INSURANCE - AN 45,663 45,663 18,460.00 3,148.00 .00 27,203.00 40.4% 44013 421120 \TRS - GROUP LIFE EMPL 1,141 1,141 498.14 85.56 .00 642.86 43.7% 44013 421130 HYBRID DISABILITY (42 539 539 158.78 28.22 .00 380.22 29.5% 44013 422100 FICA 18,488 18,488 8,066.67 1,427.91 .00 10,421.33 43.6% 44013 423100 VRS - RETIREMENT 18,165 18,165 7,920.11 1,362.26 .00 10,244.89 43.6% 44013 423150 VRS - RETIREE HEALTH 197 197 85.02 14.78 .00 111.98 43.2% 44013 425100 UNEMPLOYMENT INSURANC 532 532 13.13 .00 .00 518.87 2.5% 44013 426100 WORKERS COMPENSATION 9,765 9,765 4,058.28 1,352.76 .00 5,706.72 41.6%

TOTAL New River Regional Water Au 336,165 336,165 149,951.72 26,595.02 .00 186,213.28 44.6%

TOTAL General Fund 336,165 336,165 149,951.72 26,595.02 .00 186,213.28 44.6%

TOTAL EXPENSES 336,165 336,165 149,951.72 26,595.02 .00 186,213.28

Finance Director's Office 340 South Sixth Street — Administration Building

Wytheville, VA 24382-2598 Telephone (276) 223-4526

FAX (276) 223-4415

Bruce (irant MBA. Finance Director

January 31, 2020

Mr. Zachary Slate New River Regional Water Authority

Post Office Box 533 Wytheville, VA 24382

Dear Mr. Slate:

Wythe County is beginning the budget process for Fiscal Year 2021. Please send your budget

request to the attention of Mrs. Martha Collins, Clerk of the Board at the above address by 12:00 Noon on Tuesday, February 25, 2020.

Please provide a detailed explanation of the funds that are needed and how they are to be

expended. Include with your request details of current year expenditures.

Also enclosed is the budget calendar for the FY 2021 budget process. If you have already

submitted your budget request please disregard. Please note March 23-25 are scheduled

budget presentation days.

If you have any questions concerning this matter, please call.

Sincerely,

Bruce Grant Finance Director

Enclosure

F:\Fin Dir\2021 FV\Budget 2021\Budget Letters\initial\44013.docx

1/30/2020 72

WYTHE COUNTY EXPENDITURE BUDGET WORKSHEET FY 2021 - 1/30120

OBJECT Account Title Spent FY18

Spent FY19

Approved FY20

YTD Dec FY2020

Requested Budget

NOTES

44013 NEW RIVER WATER AUTHORITY

411100 SALARIES ' 194,206' 206,768 219,387 110633

412100 PART-TIME PAY PERSONNEL 0 16,952

413100 BONUS PAY 0

413300 OVERTIME PAY 1,766 9,449 5,336 58

421100 HEALTH INSURANCE 36,080 33,966 45,663 18,460

421120 VRS - GROUP LIFE EMPLOYER 893 882 1,141 498

421130 HYBRID DISABILITY INSURANCE 287 320 539 159

422100 FICA 13,917 15,535 18,488 8,067

423100 VRS - RETIREMENT 14,863 14,250 18,165 7,920

423150 VRS - RETIREE HEALTH CRED 189 155 197 85

425100 UNEMPLOYMENT INSURANCE 147 113 532 13

426100 WORKERS COMPENSATION 7,094 5,890 9,765 4,058

433202 NON EMPLOYEE COMPENSATION 0

TOTAL 269,440 287,330 336,165 149,952 0

F:\Finance Dir\2021FY\Budget FY 2021\Requested Budget 2021\FY2021 Expenditure Budoet Worksheets O1O2fl Isv

iy. National Bank

Your Future. Your Bank.

L LU UN I /51111.3 UI/31/2020 100 South Main Stret P.O. Box 90002 Blacksburg, Virginia24062-9002 540-552-2011 80-552-4123 www.nbbarik.com

**********AUTO**ALL FOR AADC 240 4237 0.5890 AB 0.419 14 2 215

IiIiiIitIiiIuIiiuiIiIIIiIIiiIuiIitIuiiiIIiIIItIiIIIIuIiiitIiiItii NEW RIVER REGIONAL WATER AUTHO P0 BOX 966 WYTHEVILLE VA 24382-0966 30-0

3 0

LOCAL BANK. PERSONAL SERVICE.


LAST STATEMENT 12/31/19 4 CREDITS

DEBITS THIS STATEMENT 01/31/20

1,941,029.05 78,522.55

.00 2,019,551.60

DEPOSITS

REF # DATE AMOUNT REF # DATE AMOUNT REF # DATE AMOUNT 01/02 21,227.50 01/21 18,697.19 01/30 35,836.44

OTHER CREDITS DESCRIPTION DATE AMOUNT INTEREST 01/31 2,761.42

INTEREST

AVERAGE LEDGER BALANCE: INTEREST PAID THIS PERIOD: INTEREST PAID 2020: INTEREST PAID 2019: INTEREST RATE:

1,970,518.30 2,761.42 2,761.42

27,489.39 1.6500%

INTEREST EARNED: 2,761.42 DAYS IN PERIOD: 31 ANNUAL PERCENTAGE YIELD EARNED: 1.66%

- ITEMIZATION OF OVERDRAFT AND RETURNED ITEM FEES -

************************************** * ********** ******* ************************ * I TOTAL FOR TOTAL I PREVIOUS * * I THIS PERIOD I YEAR TO DATE I YEAR TOTAL * * * * TOTAL OVERDRAFT FEES: $.00 I $.00 I $.00 * * * * TOTAL RETURNED ITEM FEES: I $.00 I $.00 $.00 * *************************************** *****************************************

* * * CONTINUED * * *


Member

FDIC

JYP National Bank

Your Future. Your Bank.

J.L/ .J4/ _V.0

100 South Main Stre P.O. Box 90002 Blacksburg, Virginia 24062-9002 540-552-2011 • 800-552-4123 www.nbbank.com

NEW RIVER REGIONAL WATER AUTHO


DAILY BALANCE DATE BALANCE DATE BALANCE DATE BALANCE 01/02 1,962,256.55 01/30 2,016,790.18 01/21 1,980,953.74 01/31 2,019,551.60


?vleinber

FDIC

10.8%

12.7%

12.3%

14.7%

13.2%

13.6%

14.4%

12.9%

11.7%

13.0%

28.5%

33.7%:

32.6%

39.0%

35.0%

36.0%

38.0%

34.2%

31.0%

34.3%

Capacity Used per month Year 2019

Month January

February

March

April - May June July August September October November December

Carroll County

Avg MGD % Capacity % Allocation

0.509 - 12.7% 52.2%

0.455 11.4% 46.6%

0.524 13.1% 53.7% 0.532 13.3% 54.5% 0.632 15.8% 64.8% 0.617 15.4% 63.2% 0.681 17.0% 69.8%

0.659 16.5% 67.5%

0.586 14.6% 60.0%

0.540 13.5% 55.4% 0.534 13.4% 54.7% 0.525 13.1% 53.8%

Town of Wytheville Avg MGD % Capacity % Allocation

0.861 21.5% 56.9%

1.01 25.3% 66.8%

0.865 21.6% 57.2%

0.882 22.1% 58.3%

0.957 23.9% 63.3%

1.05 26.3% 69.4%

1.010 25.3% 66.8%

1.030 25.8% 68.1%

0.888 22.2% 58.7% 0.766 19.2% 50.7%

0.794 19.9% 52.5%

0.720 18.0% 47.6%

Wythe County

Avg MGD

0.426

0.560

0.431

0.510

0.493

0.589

0.529

0.544

0.575

0.518

0.469

0.519

%Capacity % Allocation

NRRWA Plant Total Avg MGD %Capacity

1.796 44.9%

2.025 50.6%

1.820 45.5%

1.923 48.1% 2.082 52.0% 2.256 56.4% 2.220 55.5% 2.233 55.8% 2.049 51.2% 1.824 45.6% - 1.797 44.9%

1.764 44.1%

Allocated Capacity

Allocation %

Avg Daily Capacity

80% of Allocation

New River Regional Water Treatment Facility

Capacity Allocation

Wytheville Wythe County

37.8% 37.8%

1.512 MGD 1.512 MGD 1.210 MGD 1.210 MGD

Carroll

24.4%

0.976 MGD

0.781 MGD

NRRWA Plant Total

100.0%

4.0 MGD 3.2 MGD

Carroll

Town of Wytheville Avg MGD % Capacity % Allocation

0.956 23.9% 63.2%

1.130 28.3% 74.7%

24.4%

0.976 MGD

0.781 MGD

Wytheville

37.8%

1.512 MGD 1.210 MGD

Wythe County 37.8%

1.512 MGD 1.210 MGD

0.514

Carroll County

Avg MGD % Capacity % Allocation

52.7% 12.9%

NRRWA Plant Total

100.0%

4.0 MGD 3.2 MGD

NRRWA Plant Total

% Capacity Avg MGD

1.951 48.8%

1.130 28.3%

New River Regional Water Treatment Facility

Capacity Allocation

Allocated Capacity

Allocation %

Avg Daily Capacity

80% of Allocation

Capacity Used per month Year 2020

Month January

February

March

April

May June July August September October

November

December

BLUERI DGECROSSROADS economic deveiopment authority

Carroll — Galax — Grayson VIRGINIA

Carroll-Grayson-Galax Regional Industrial Facilities Authority Regular Meeting Agenda

Monday, February 24, 2020 Time: 3:00 PM

Location: Crossroads Institute

1. Call to Order

2. Year ended June 30, 2019 Audit — Mr. Corbin Stone

a. Acceptance of Audit as presented

3. Consent agenda:

a. Minutes from the January 27th meeting

b. Treasurer's report

4. SBDC Report

5. Wildwood Commerce Park

a. ANG Natural Gas Project Update (if available)

b. Wildwood's provision of water from CC PSA

6. Director's report

a. Budget spreadsheet as of 12/30/19

b. Interim Director Schedule

c. Other Items of interest

7. Announcements

8. Closed Session: Pursuant to VA Code Section 2.2-3711 (A)(1) Discussion,

consideration, or interviews of prospective candidates for employment; assignment,

appointment, promotion, performance, demotion, salaries, disciplining, or resignation of

specific public officers, appointees, or employees of any public body.

9. Adjourn

The Blue Ridge Crossroads Region is Virginia's "Entrepreneurial Region."

1117 East Stuart Drive Galax, Virginia 24333 Tel: 276.236.0391 www.brceda.orq

ROBINSON, FARMER, Cox ASSOCIATES, PLLC

Certified Public Accountants CPAs I CONSULTANTS

January 21, 2020

To the Members of the Board of Directors Carroll-Grayson-Galax Regional Industrial Facilities Authority

We have audited the financial statements of the Carroll-Grayson-Galax Regional Industrial Facilities Authority for the year ended June 30, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 9, 2019. Professional standards also require that we communicate to you the following information related to our audit.

Siqnificant Audit Matters

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Carroll-Grayson-Galax Regional Industrial Facilities Authority are described in Note B to the financial statements. As described in Note L to the financial statements, the Carroll-Grayson-Galax Regional Industrial Facilities Authority changed accounting policies related to the treatment of other post-employment benefits by adopting GASB Statement No. 88 Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. The implementation of this standard did not require a restatement of previously issued financial statements. We noted no transactions entered into by the Carroll-Grayson-Galax Regional Industrial Facilities Authority during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was:

The Authority participates in retirement and other post employment benefit (OPEB) plans offered by the City of Galax, Virginia and Carroll County Virginia. Estimates of the Authority's pension and OPEB liabilities and related deferred inflows and outflows are based on prorated amounts from the aforementioned retirement and OPEB plans based on relative expense. We evaluated the key factors and assumptions used to develop the retirement liability (and related deferred inflows and outflows) in determining that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures(s) affecting the financial statements were:

The disclosure of pension and OPEB plan actuarial assumptions used to determine financial statement amounts relative to same.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements for presentation in the financial statements. Our recommended adjusting entries are attached hereto.

Disagreements with Management

For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated January 21, 2020.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Carroll-Grayson-Galax Regional Industrial Facilities Authority's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Carroll-Grayson-Galax Regional Industrial Facilities Authority's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters

We applied certain limited procedures to the schedules related to pension and OPEB funding, as presented in the financial report, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the pension and OPEB schedules and do not express an opinion or provide any assurance on this RSI.

Restriction on Use

This information is intended solely for the information and use of the Board of Directors and management of the Carroll-Grayson-Galax Regional Industrial Facilities Authority and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,

K6Z4,&OO,L, cen.t.t, 4c J"'-

Blacksburg, Virginia January 21, 2020

2/18/2020 12:58 PM

Client: Carroll-Grayson-Galax Regional Industrial Facilities Authority Engagement: 2019 - Carroll-Grayson-Galax Regional Industrial Facilities Authority Period Ending: 6/30/2019 Trial Balance: TB-01 - Trial Balance Workpaper: Adjusting Journal Entries Report - 2

Account Description WIP Ref Debit Credit

Adjusting Journal Entries JE #1 AJE to adjust deferred, recognized revenue, and AR related to Tobacco Grants

1105 GRANTS RECEIVABLE 2750 GRANT FUNDS ADVANCED 4011 GRANT REVENUE VA TOB #3009 4011 GRANT REVENUE VA TOB #3009

R-03

47,669.00 222,526.00

47,66g.00 222,526.00

Total 270,195.00 270,195.00

Adjusting Journal Entries JE #2 0-04 AJE to reclass interest payable out of accounts payable. AJE to reclass ST/LT debt portions

2000 ACCOUNTS PAYABLE 4,944.00 2650 NOTES PAYABLE - GNB 12,546.00 2655 ST PORTION OF LT DEBT 12.546,00 2800 INTEREST PAYABLE 4,944.00

Total 17,490.00 17,490.00

Adjusting Journal Entries JE #3 E-10 AJE to reclass amt due to SBDC (GMU reimbursement)

2000 ACCOUNTS PAYABLE 7,624.00 2101 DUE TO/FROM SBDC 7,624.00

Total 7,624.00 7,624.00

Adjusting Journal Entries JE #4 CAP-03 Immaterial adjustment to depr exp

6130 OFFICE EQUIPMENT 1.00 6800 DEPRECIATION EXPENSE 1.00

Total 1.00 1.00

Adjusting Journal Entries JE #5 CAP-03 Special Item - recovery of sale of inventory

1200 LAND INVENTORY 379,714.00 1110 Due from Carroll IDA 125,000.00 9000 Special item - recovery of inventory of land sold in FY18 254,714.00

Total 379,714.00 379,714.00

Adjusting Journal Entries JE #6 E-14a AJE to adjust GASB 68 balances

2801 DEFERRED INFLOWS PENSION 10,541.00 1801 DEFERRED OUTFLOWS PENSION 3,583.00 2810 NET PENSION LIABILITY 1,055.00 6002 EMPLOYEE RETIREMENT 5,903.00

Total 10,541.00 10,541.00

Adjusting Journal Entries JE #7 E-14b AJE to adjust GASB 75 balances

6007 GROUP LIFE INSURANCE 1,599.00 1802 Deferred Outflows - OPEB 60.00 2803 Deferred inflows - OPEB 202.00 2811 Net OPEB liability 1,337.00

Total 1,599.00 1,599.00

1 of 1

2/18/2020 12:58 PM

Client: Carroll-Grayson-Galax Regional Industrial Facilities Authority Engagement: 2019 - Carroll-Grayson-Galax Regional Industrial Facilities Authority Period Ending: 6/30/2019 Trial Balance: TB-02 - SBDC Trial Balance Workpaper: Adjusting Journal Entries Report - 3

Account Description W/P Ref Debit Credit

Adjusting Journal Entries JE #1 Immaterial adj (rounding) to beginning balance

3900 FUND BALANCE 6072 OFFICE SUPPLIES

TB-04

1.00 1.00

Total 1.00 1.00

Adjusting Journal Entries JE #2 R-04 AJE to record AR

1200 ACCOUNTS RECEIVABLE 6959.00 4210 VA SBDC GRANTS 6,959.00

Total 6,959.00 6,959.00

Adjusting Journal Entries JE#4 E-15a AJE to adjust GASB 68 balances

2801 DEFERRED INFLOWS PENSION 430.00 2810 NET PENSION LIABILITY 5,687.00 1801 DEF OUTFLOWS PENSION 2,426.00 6002 EMPLOYEE RETIREMENT 3,691.00

Total 6,117.00 6,117.00

Adjusting Journal Entries JE #5 E-15b AJE to adjust GASB 75 balances

1803 DEFERRED OUTLFOW-OPEB 323.00 28011 DEFERRED INFLOW-OPEB 132.00 2811 NET OPEB LIABILITY 110.00 6005 VRS INSURANCE 345.00

Total 455.00 455.00

Adjusting Journal Entries JE #6 D-16 AJE to adjust current year compensated absences balances

6000 SALARIES & WAGES 496.00 2802 ACCRUED LEAVE 496.00

Total 496.00 496.00

1 of 1

CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACILITIES AUTHORITY FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2019

CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACILITIES AUTHORITY FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2019

TABLE OF CONTENTS

FINANCIAL SECTION

Exhibit Page

Independent Auditors Report 1-3

Basic Financial Statements:

Statement of Net Position 1 4

Statement of Revenues, Expenses and Changes in Net Position 2 5

Statement of Cash Flows 3 6

Notes to the Financial Statements 7-29

Required Supplementary Information:

Pension Plan:

Schedule of the Authority's Proportionate Share of the Net Pension Liability (Asset) 4 30

Schedule of Authority Contributions 5 31

Notes to Required Supplementary Information 6 32

Other Postemployment Benefits Plan - Group Life Insurance Program (GLI):

Schedule of the Authority's Proportionate Share of the Net OPEB Liability (Asset) 7 33

Schedule of Authority Contributions 8 34

Notes to Required Supplementary Information 9 35

COMPLIANCE SECTION

Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of FinanciaL Statements Performed in Accordance with

Government Auditing Standards 36-37

Schedule of Findings and Responses 38

FINANCIAL SECTION



Independent Auditors' Report

To the Board of Directors Carroll-Grayson-Galax Regional Industrial Facilities Authority Galax, Virginia

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities of the Carroll-Grayson-Galax Regional Industrial Facilities Authority, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Carroll-Grayson-Galax Regional Industrial Facilities Authority's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Authorities, Boards, and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also incLudes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

-1-

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of the Carroll-Grayson-Galax Regional Industrial Facilities Authority, as of June 30, 2019, and the changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principles

As described in Note L to the financial statements, in 2019, the Carroll-Grayson-Galax Regional Industrial Facilities Authority adopted new accounting guidance, GASB Statement No. 88 Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary In formation

Accounting principles generally accepted in the United States of America require that the schedules related to pension and OPEB funding on pages 30-35 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 21, 2020, on our consideration of the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in

-2-

accordance with Government Auditing Standards in considering the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control over financial reporting and compliance.

(o/lacojL


-3-

Basic Financial Statements

Exhibit 1

Carroll-Grayson-Galax Regional Industrial Facilities Authority

Statement of Net Position

As of June 30, 2019

ASSETS

Current Assets:

General Fund

Small Business

Development Center

Total

Business-type

Activities

Cash and cash equivalents $ 505,032 $ 3,250 $ 508,282 Grants receivable 47,669 6,959 54,628 Internal balances (7,624) 7,624

Total Current Assets $ 545,077 $ 17,833 $ 562,910

Noncurrent Assets:

Restricted cash $ 41,567 S $ 41,567

Other Assets:

Land Held for Resale (Wildwood Park) $ 13,290,000 $ $ 13,290,000

Capital Assets:

Equipment, furniture, and fixtures $ 34,732 $ 14,639 $ 49,371 Accumulated depreciation (16,842) (13,694) 130,536)

Net Capital Assets $ 17,890 $ 945 S 18,835

Total Assets 13,894,534 $ 18,778 S 13,913,312

DEFERRED OUTFLOWS OF RESOURCES

OPEB related items $ 172 $ 731 $ 903 Pension related items 2,484 9,602 12,086

Total Deferred Outflows of Resources $ 2,656 $ 10,333 $ 12,989

LIABILITIES

Current Liabilities:

Interest payable $ 4,944 $ - $ 4,944

Accounts payable 6,635 10,480 17,115

Compensated absences, current portion 6,010 6,010

Note payable, current portion 104,917 104,917

Total Current Liabilities $ 116,496 $ 16,490 $ 132,986

Noncurrent liabilities:

Compensated absences, net of current portion $ $ 2,004 $ 2,004

Net pension liability 8,947 52,198 61,145

Net OPEB liability 3,561 6,268 9,829

Note payable, net of current portion 4,802,579 4,802,579

Total Noncurrent Liabilities S 4,815,087 $ 60,470 S 4,875,557

Total Liabilities S 4,931,583 $ 76,960 $ 5,008,543

DEFERRED INFLOWS OF RESOURCES

Pension related items $ 14,128 $ 8,142 $ 22,270

OPEB related items 448 663 1,111

Total Deferred Inflows of Resources $ 14,576 $ 8,805 $ 23,381

NET POSTION (DEFICIT)

Investment in capital assets $ 17,890 $ 945 $ 18,835

Restricted 41,567 41,567

Unrestricted 8,891,574 (57,599) 8,833,975

Total Net Position (Deficit) $ 8,951,031 $ (56,654) 5 8,894,377

The accompanying notes to financial statements are an integral part of this statement.

-4-

Exhibit 2


Statement of Revenues, Expenses, and Changes in Net Position

For the Year Ended June 30, 2019

Operating Revenues:

General Fund

Small Business

Development Center Total

Tobacco Commission Funding $ 451,599 $ $ 451,599

Small Business Development Center Grant 81,078 81,078

Local government contributions 405,600 70,875 476,475

Miscellaneous income 3,875 2,897 6,772

Total Operating Revenues $ 861,074 $ 154,850 $ 1,015,924

Operating Expenses:

Salary expenses $ 46,080 $ 79,087 $ 125,167

Fringe benefits 11,419 32,223 43,642

Professional fees 16,482 6,306 22,788

Advertising 936 2,212 3,148

Dues 98 108 206

Rent 3,000 4,000 7,000

Office expense 3,657 10,385 14,042

Training 38 115 153

Repairs and maintenance 10,550 10,550

Special Events 153 300 453

Depreciation 2,840 1,511 4,351

Insurance 2,593 2,593

Marketing 625 625

Contributions to Carroll PSA (Water Projects) 356,984 356,984

BRCC Park Project 5,700 5,700

Economic Development Grants 5,000 5,000

Travel 891 6,399 7,290

Total Operating Expenses $ 462,046 $ 147,646 $ 609,692

Net Operating Income (Loss) $ 399,028 $ 7,204 $ 406,232

Other Nonoperating Revenues (Expenses):

Interest expense $ (179,416) $ $ (179,416)

Interest income 493 493

Total Nonoperating Revenue (Expenses) $ (178,923) $ $ (178,923)

Income (Loss) Before Special Items $ 220,105 $ 7,204 $ 227,309

Special Item - recovery of inventory $ 254,714 $ $ 254,714

Change in Net Position $ 474,819 $ 7,204 $ 482,023

Net Position, (Deficit), beginning of Year 8,476,212 (63,858) 8,412,354

Net Position (Deficit), End of Year $ 8,951,031 $ (56,654) $ 8,894,377


-5-

Exhibit 3


Statement of Cash Flows


Cash flows from operating activities:

General Fund

Small Business

Development Center Total

Cash received from customers and operating contributions $ 651,276 $ 156,973 $ 808,249

Cash payments to employees for services (61,803) (114,850) (176,653)

Cash payments to suppliers for goods and services1 (703,882) (34,636) (738,518)

Net cash provided by (used for) operating activities $ (114,409) $ 7,487 $ (106,922)

Cash flows from noncapital financing activities:

Transfers from (to) other funds $ 7,624 $ (7,624) $

Principal payments on indebtedness (179,416) (179,416)

Interest payments on indebtedness (96,700) (96,700)

Net cash provided by (used for) noncapital financing activities $ (268,492) $ (7,624) $ (276,116)

Cash flows from investing activities:

Interest income $ 493 $ - $ 493

Change in cash and cash equivalents $ (382,408) $ (137) $ (382,545)

Cash and cash equivalents, at beginning of year (including restricted of $43,010) 929,007 3,387 932,394

Cash and cash equivalents, at end of year (including restricted of $41,567) $ 546,599 $ 3,250 $ 549,849

Reconciliation of operating income (loss) to net cash provided by (used for)

operating activities:

Net Operating Income (Loss) $ 399,028 $ 7,204 S 406,232

Adjustments to reconcile operating income (loss) to net cash provided

by (used for) operating activities:

Depreciation 2,840 1,511 4,351

(Increase) decrease in inventory held for resale (125,000) - (125,000)

(Increase) decrease in deferred outflows of resources 3,643 2,103 5,746

Increase (decrease) in net pension liability 1,055 (5,687) (4,632)

Increase (decrease) in net OPEB liability 1,337 110 1,447

Increase (decrease) in deferred inflows of resources (10,339) (562) (10,901)

Increase (decrease) in operating accounts payable (302,175) 189 (301,986)

Increase (decrease) in compensated absences 496 496

Increase (decrease) in deferred grant revenue (403,930) - (403,930)

(Increase) decrease in due from others 125,000 125,000

(Increase) decrease in operating grants receivable 194,132 2,123 196,255

Net cash provided by (used for) operating activities (114,409) $ 7,487 $ (106,922)

1. Includes activity related to inventory purchased for resale and sales of inventory. (development of industrial park)


-6-

CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACILITIES AUTHORITY NOTES TO THE FINANCIAL STATEMENTS


NOTE A - ORGANIZATION, DESCRIPTION OF THE ENTITY, AND ACTIVITIES

The Carroll-Grayson-Galax Regional Industrial Facilities Authority ("the Authority") was created as a joint venture between the County of Carroll, County of Grayson, and the City of Galax, Virginia. The Authority works with local businesses within the Twin Counties securing funding to create and preserve jobs, assisting with infrastructure projects, and industrial development.

In addition, the Authority is authorized to secure loans and grant funding for the purpose of obtaining and constructing facilities. Liability under the loans may be retained by the Authority or it may be assumed by the enterprises for whom facilities are constructed. The loans are payable solely from revenues generated from the contributions of the participating localities and may be secured by a deed of trust on those facilities.

The Authority also operates a small business development center under contract with George Mason University. The federally funded contract operates on a cost reimbursable basis and all activity related to the contract is presented in a separate fund within these financial statements.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Statement Presentation

The financial statements of the Carroll-Grayson-Galax Regional Industrial Facilities Authority have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

Measurement focus, basis of accounting, and financial statement presentation

The Authority uses the accrual basis of accounting. Under this method revenues are recognized in the accounting period in which they are earned, white expenses are recognized in the accounting period in which the related liability is incurred.

The Authority distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the Authority's principaL ongoing operations. The principal operating revenues of the Authority are grants. Operating expenses include the cost of administration and related expenses. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses.

The government reports the following major proprietary funds:

The General Fund is the government's primary operating fund. It is used to account for and report for all financial resources of the general government, except those required to be accounted for and reported in other funds.

The Small Business Development Center Fund (SBDC) is used to account for and report financial activity of the Authority's Small Business Development Center.

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CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACI LITI ES AUTHORITY NOTES TO FINANCIAL STATEMENTS (CONTINUED)


NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash and Cash Eciuivalents

The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Capital Assets

Capital assets, which include property, plant and equipment, are reported in the financial statements. Capital Assets are defined by the Authority as assets with a historical cost of $1 ,000 or more, and with an estimated useful life in excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not to be capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. There was no interest capitalized during the current or previous fiscal year.

Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Assets Years Equipment, furniture, and fixtures 5-7

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles includes the use of estimates that affect the financial statements. Accordingly, actual results could differ from these estimates.

Compensated Absences

The liability for compensated absences consists of unpaid accumulated vacation/sick leave balances. The liability is based on leave accumulated at June 30. Accumulated leave is paid at the employee's current wage upon retirement or termination.

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The Authority has one item that qualifies for reporting in this category. It is comprised of certain items related to the measurement of the net pension liability and net OPEB liability and contributions to the pension and OPEB pLans made during the current year and subsequent to the net pension liability and net OPEB liability measurement date. For more detailed information on these items, reference the related notes.

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CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACILITIES AUTHORITY NOTES TO FINANCIAL STATEMENTS (CONTINUED)



Deferred Outflows/Inflows of Resources: (Continued)

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority has one item that qualifies for reporting in this category. Certain items related to the measurement of the net pension liability and net OPEB liability are reported as deferred inflows of resources. For more detailed information on these items, reference the related notes.

Net Position

Net position is the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources.

Proprietary fund net position is divided into three components:

• Net investment in capital assets—consist of the historical cost of capital assets less accumulated depreciation and less any debt that remains outstanding that was used to finance those assets plus deferred outflows of resources less deferred inflows of resources related to those assets.

• Restricted—consist of assets that are restricted by the Authority's creditors (for example, through debt covenants), by the state enabling legislation (through restrictions on shared revenues), by grantors (both federal and state), and by other contributors.

• Unrestricted—all other net position is reported in this category.

Net Position Flow Assumption

Sometimes the Authority will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Authority's policy to consider restricted-net position to have been depleted before unrestricted-net position is applied.

Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority's Retirement Plans and the additions to/deductions from the Authority's Retirement Plans' net fiduciary position have been determined on the same basis as they were reported by the Virginia Retirement System (VRS). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

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Other Postemployment Benefits (OPEB)

For purposes of measuring the net VRS related OPEB liabilities, deferred outflows of resources and deferred inflows of resources related to the OPEB, and OPEB expense, information about the fiduciary net position of the VRS GLI OPEB Plan and the additions to/deductions from the VRS OPEB Plan's net fiduciary position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The cost of prepaid items is recorded as expenses when consumed rather than when purchased.

NOTE C - DEPOSITS AND INVESTMENTS

Deposits

Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and collateralized in accordance with the Virginia Security for Public Deposits Act (the "Act") Section 2.2-4400 et. seq. of the Code of Virginia. Under the Act, banks and savings institutions holding public deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth of Virginia Treasury Board. Financial Institutions may choose between two collateralization methodologies and depending upon that choice, will pledge collateral that ranges in the amounts from 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized.

At June 30, 2019, the Authority had no investments.

NOTE D - RESTRICTED CASH

Restricted cash consists of $41,567 restricted for marketing purposes.

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NOTE E - LONG-TERM OBLIGATIONS

The following is a summary of long-term obligation transactions of the Authority for the year ended June 30, 2019.

Direct Borrowings and Placements:

Balance July 1,2018

Increases! Issuances

Decreases / Retirements

Balance June 30, 2019

Notes payable $ 5,004,196 $ $ (96,700) $ 4,907,496 Compensated absences 7,518 6,135 (5,639) 8,014 Net OPEB liability 8,382 3,187 (1,740) 9,829 Net pension liability 65,777 55,479 (60,111) 61,145

Total $ 5,085,873 $ 64,801 $ (164,190) $ 4,986,484

Annual requirements to amortize the above note and related interest are as follows:

Year Ending

June 30

Direct Borrowings and Placements:

Notes Payable

Principal Interest

2020 $ 104,917 $ 171,199

2021 108,703 167,413

2022 143,665 163,491

2023 148,660 158,496

2024 153,829 153,326

2025-2029 742,022 685,806

2030-2034 803,707 552,155

2035-2039 959,558 396,304

2040-2044 1,145,631 210,231

2045-2047 596,804 24,461

Totals $ 4,907,496 $ 2,682,882

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NOTE E - LONG-TERM OBLIGATIONS (CONTINUED)

Details of long-term obligations:

Direct Borrowings and Placements: Notes payable

Interest Rates

Issue Date

FinaL Maturity

Date

Amount of Original

Issue

Balance Business

Activities

Amount Due Within One Year

Grayson National Bank 3.55% (Variable) 2017 2047 $ 5,000,000 $ 4,742,703 $ 104,917 MRPDC 3.00% 2016 2026 164,793 164,793 -

Total notes payable $ 4,907,496 $ 104,917

Total Direct Borrowings and Placements 5 4,907,496 S 104,917

Other Obligations: Compensated Absences n/a n/a n/a n/a $ 8,014 $ 6,010 Net OPEB Liability n/a n/a n/a n/a 9,829 Net Pension Liability n/a n/a n/a n/a 61,145

Total Other Obligations $ 78,988 $ 6,010

Total Long-term obligations 5 4,986,484 S 110,9L7

If an event of default occurs with the note payable issued by MRPDC, the principal of the note payable may be declared immediately due and payable.

NOTE F - INVENTORY HELD FOR RESALE

Inventory held for resale consists of land within the Wildwood Commerce Park (industrial park) located in Carroll County near exit 19 on Interstate 77. The industrial park comprises a total of 273 acres of industrial land, broken out into two parcels (106 acre tract and a 167 acre tract). Of the 167 acres, approximately 50 acres have been graded and an additional 50 acres can be graded for future industrial development. The remaining 67 acres will be used for storm management, site infrastructure (roads and utilities), and a natural buffer. The 106 acre tract is more significantly graded with on-site improvements such as a right of way, a 2,1 50 two lane access road, water and sewer and fiber conduit. The Authority values inventory held for resale at the lower of cost or market. An appraisal performed on October 17, 2016 estimated the industrial park's value at $13,290,000.

NOTE G - PROJECT REVENUE

The Authority sells shares to participating jurisdictions in industrial development projects initiated by the Authority. As of June 30, 2019, each participant (Carroll County, Grayson County and the City of Galax) has an equal interest in the Wildwood Commerce Park. Share purchases in the financial statements are recorded as operating grant revenue in the Statement of Revenues, Expenses and Changes in Net Position. Participating jurisdictions are entitled to profits generated by these industrial development projects, as presented in the participation agreement, to the extent taxes generated by the projects exceed project expense. The revenue sharing agreement further requires the participating jurisdictions to contribute amounts necessary to cover all expenses of the projects, to the extent that taxes generated by the project do not cover these expenses.

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NOTE H - CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2019 was as follows:

Capital assets, being depreciated:

Balance

July 1, 2018 Additions Deletions

Balance

June 30, 2019

Equipment, furniture, and fixtures $ 49,371 $ $ $ 49,371

Total capital assets, being depreciated $ 49,371 $ $ $ 49,371

Accumulated depreication:

Equipment, furniture, and fixtures $ (26,185) $(4,351) $ $ (30,536)

Total accumulated depreciation $ (26,185) $(4,351) $ $ (30,536)

Total capital assets being depreciated, net $ 23,186 $(4,351) $ $ 18,835

Net capital assets $ 23,186 $(4,351) $ $ 18,835

NOTE I - PENSION PLAN

Plan Description

All full-time, salaried permanent employees of Carroll-Grayson-Galax Regional Industrial Facilities Authority are automatically covered by either the Galax City Pension Plan or the Carroll County Pension PLan, which are cost-sharing multiple employer plans. These plans are administered by the Virginia Retirement System (the System) along with plans for other employer groups in the Commonwealth of Virginia. Members earn one month of service credit for each month they are employed and for which they and their employer pay contributions to VRS. Members are eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended. Eligible prior service that may be purchased includes prior public service, active military service, certain periods of leave, and previously refunded service.

Benefit Structures

The System administers three different benefit structures for covered employees - Plan 1, Plan 2 and Hybrid. Each of these benefit structures has different eligibility criteria, as detailed below.

a. Employees hired before July 1, 2010, vested as of January 1, 2013, and have not taken a refund, are covered under Plan 1, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced retirement benefit beginning at age 65 with at least 5 years of creditable service or age 50 with at least 30 years of creditable service. Non-hazardous duty employees may retire with a reduced benefit as early as age 55 with at least 5 years of creditable service or age 50 with at Least 10 years of creditable service.

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NOTE I - PENSION PLAN (CONTINUED)

Benefit Structures (Continued)

b. Employees hired on or after July 1, 2010, or their membership date is before July 1, 2010, and they were not vested as of January 1, 2013 are covered under Plan 2, a defined benefit plan. Non-hazardous duty employees are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of creditable service or when the sum of their age and service equals 90. Non-hazardous duty employees may retire with a reduced benefit as early as age 60 with at least 5 years of creditable service.

c. Non-hazardous duty employees hired on or after January 1, 2014 are covered by the Hybrid Plan combining the features of a defined benefit plan and a defined contribution plan. Plan 1 and Plan 2 members also had the option of opting into this plan during the election window held January 1 - April 30, 2014 with an effective date of July 1, 2014. Employees covered by this plan are eligible for an unreduced benefit beginning at their normal social security retirement age with at least 5 years of creditable service, or when the sum of their age and service equal 90. Employees may retire with a reduced benefit as early as age 60 with at least 5 years of creditable service. For the defined contribution component, members are eligible to receive distributions upon leaving employment, subject to restrictions.

Average Final Compensation and Service Retirement Multiplier

The VRS defined benefit is a lifetime monthly benefit based on a retirement multiplier as a percentage of the employee's average final compensation multiplied by the employee's total creditable service. Under Plan 1, average final compensation is the average of the employee's 36 consecutive months of highest compensation and the multiplier is 1 .7% for non-hazardous duty employees. Under Plan 2, average final compensation is the average of the employee's 60 consecutive months of highest compensation and the retirement multiplier is 1 .65% for non-hazardous duty employees. Under the Hybrid Plan, average final compensation is the average of the employee's 60 consecutive months of highest compensation and the multiplier is 1 .00%. For members who opted into the Hybrid Retirement Plan from Plan 1 or Plan 2, the applicable multipliers for those plans will be used to calculate the retirement benefit for service credited in those plans.

Cost-of-Living Adjustment (COLA) in Retirement and Death and Disability Benefits

Retirees with an unreduced benefit or with a reduced benefit with at least 20 years of creditable service are eligible for an annual COLA beginning July 1 after one full calendar year from the retirement date. Retirees with a reduced benefit and who have less than 20 years of creditable service are eligible for an annual COLA beginning on July 1 after one calendar year following the unreduced retirement eligibility date. Under Plan 1, the COLA cannot exceed 5.00%. Under Plan 2 and the Hybrid Plan, the COLA cannot exceed 3.00%. The VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia, as amended, assigns the authority to establish and amend benefit provisions to the General Assembly of Virginia.

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Contributions - Carroll County Plan

The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.

The Carroll-Grayson-Galax Regional Industrial Facilities Authority's contractually required employer contribution rate for the year ended June 30, 2019 was 10.08% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2017.

This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Carroll-Grayson-Galax Regional Industrial Facilities Authority were $7,900 and $8,530 for the years ended June 30, 2019 and June 30, 2018, respectively.

Contributions - Ga lax City Plan

The contribution requirement for active employees is governed by §51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.

The Carroll-Grayson-Galax Regional Industrial Facilities Authority's contractually required employer contribution rate for the year ended June 30, 2019 was 0% of covered employee compensation. This rate is because there are currently no full time employees from the Authority that are covered under the City of Galax's VRS plan.

This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the Carroll-Grayson-Galax Regional Industrial Facilities Authority were $0 and $3,952 for the years ended June 30, 2019 and June 30, 2018, respectively.

Net Pension Liability - Carroll County Plan

At June 30, 2019, the Authority reported a liability of $52,198 for its proportionate share of the net pension liability. For The Carroll-Grayson-Galax Regional Industrial Facilities Authority, the net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2017 rolled forward to the measurement date of June 30, 2018. The Authority's proportionate share of the same was calculated using creditable compensation as of June 30, 2018 and 2017 as a basis for allocation. At June 30, 2018 and 2017 the Authority's proportion was 0.9901% and 0.9821%, respectively.

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Net Pension Liability - Galax City Plan

At June 30, 2019, the Authority reported a liability of $8,947 for its proportionate share of the net pension liability. For Carroll-Grayson-Galax Regional Industrial Facilities Authority, the net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of June 30, 2017 rolled forward to the measurement date of June 30, 2018. The Authority's proportionate share of the same was calculated using creditable compensation as of June 30, 2018 and 2017 as a basis for allocation. At June 30, 2018 and 2017 the Authority's proportion was 0.7221% and 0.4396%, respectiveLy.

Actuarial Assumptions - General Employees

The total pension liability for General Employees in the Authority's Retirement Plan was based on an actuarial valuation as of June 30, 2017, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018.

Inflation 2.5%

Salary increases, including inflation 3.5% - 5.35%

Investment rate of return 7.0%, net of pension plan investment expenses, including inflation*

* Administrative expenses as a percent of the market value of assets for the last experience study were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However, since the difference was minimal, and a more conservative 7.0% investment return assumption provided a projected plan net position that exceeded the projected benefit payments, the long-term expected rate of return on investments was assumed to be 7.0% to simplify preparation of pension liabilities.

Mortality rates:

Largest 10 - Non-Hazardous Duty: 20% of deaths are assumed to be service related Pre-Retirement:

RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates.

Post-Retirement: RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with scale BB to 2020; males set forward 3 years; females 1 .0% increase compounded from ages 70 to 90.

Post-Disablement: RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years, 110% of rates; females 125% of rates.

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Actuarial Assumptions - General Employees (Continued)

All Others (Non 10 Largest) - Non-Hazardous Duty: 15% of deaths are assumed to be service related

Pre-Reti rement: RP-2014 Employee Rates to age 80, Healthy Annuitant Rates at ages 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates.


Post- Disablement: RP-2014 Disability Mortality Rates projected with scale BB to 2020; males set forward 2 years, 110% of rates; females 125% of rates.

The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from July 1, 2012 through June 30, 2016. Changes to the actuarial assumptions as a result of the experience study are as follows:

Largest 10 - Non-Hazardous Duty:

Mortality Rates (pre-retirement, post- Updated to a more current mortality table - RP-

retirement healthy, and disabled) 2014 projected to 2020

Retirement Rates Lowered rates at older ages and changed final

retirement from 70 to 75

Withdrawal Rates Adjusted rates to better fit experience at each year

age and service through 9 years of service

Disability Rates Lowered rates

Salary Scale No change

Line of Duty Disability Increased rate from 14% to 20%

All Others (Non 10 Largest) - Non-Hazardous: Mortality Rates (pre-retirement, post- Updated to a more current mortality table - RP-


Retirement Rates Lowered rates at older ages and changed final

retirement from 70 to 75

Withdrawal Rates Adjusted rates to better fit experience at each year

age and service through 9 years of service




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Long-Term Expected Rate of Return

The long-term expected rate of return on pension System investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension System investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:

Target

Arithmetic Long-term Expected

Weighted Ave rage

Long-term Expected

Asset Class (Strategy) A Uocation Rate of Return Rate of Return

Public Equity 4000% 4.54% 1.82% Fixed Income 15.00% 0.69% 0.10% Credit Strategies 15. 00% 3.96% 0.59% Real Assets 15.00% 5.76% 0.86% Private Equity 15.00% 9.53% 1.43%

Total 100.00% 4.80%

Inflation 2.50% *Expected arithmetic nominal return 7.30%

* The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the system, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 6.83%, including expected inflation of 2.50%.

Discount Rate

The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that System member contributions will be made per the VRS Statutes and the employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate consistent with the phased-in funding provided by the General Assembly for state and teacher employer contributions; the Authority was also provided with an opportunity to use an alternative employer contribution rate. For the year ended June 30, 2018, the alternate rate was the employer contribution rate used in FY 2012 or 90% of the actuarially determined employer contribution rate from the June 30, 2015 actuarial valuations, whichever was greater. From July 1, 2018 on, participating employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total pension Liability.

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CARROLL-GRAYSON-GALAX REGIONAL INDUSTRIAL FACI LIII ES AUTHORITY NOTES TO FINANCIAL STATEMENTS (CONTINUED)



Sensitivity of the Authority's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the Authority using the discount rate of 7.00%, as well as what the Authority's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:

Authoritys Proportionate share of

the Carroll County Plans

Rate

(6.00%) (7.00%) (8.00%)

Net Pension Liability

Authoritys Proportionate share of

the Galax Citys Plan

$ 98,275 $ 52,198 $ 13,947

Net Pension Liability $ 34,651 $ 8,947 $ (12,521)

Pension Expense and Deferred Outflows of Resources and Deferred In flows of Resources Related to Pensions

For the year ended June 30, 2019, the Carroll-Grayson-Galax Regional Industrial Facilities Authority recognized pension expense of $4,207 and $(6,115) related to the Carroll County and Galax City Plans, respectively. Since there was a change in proportionate share between measurement dates, a portion of the pension expense was related to deferred amounts from changes in proportion and from differences between employer contributions and the proportionate share of employer contributions.

At June 30, 2019, the Carroll-Grayson-Galax Regional Industrial Facilities Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected

Carroll County Plan Galax City Plan Deferred

Outflows of Resources

Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Inflows of Resources

and actual experience $ 1,406 $ 4,772 $ - $ 5,415

Changes in assumptions 828 633

Net difference between projected and actual earnings on pension plan investments 2,542 2,484

Changes in proportion and differences between employer contributions and proportionate share of contributions 296 8,080

Employer contributions subsequent to the measurement date 7,900

Total $ 9,602 $ - 8,142 $ 2,484 $ 14,128

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Pension Expense and Deferred Outflows of Resources and Deferred In flows of Resources Related to Pensions (Continued)

$7,900 and $0 reported as deferred outflows of resources related to pensions resulting from the Carroll-Grayson-Galax Regional Industrial Facilities Authority's contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future reporting periods as follows:

Year ended June 30 Carroll County Plan Galax City Plan

2020 $ (264) $ (5,671)

2021 (2,314) (5,313)

2022 (3,690) (494)

2023 (172) (166)

2024

Thereafter

Pension Plan Data

Information about the VRS Political Subdivision Retirement Plan is also available in the separately issued VRS 2018 Comprehensive Annual Financial Report (CAFR). A copy of the 2018 VRS CAFR may be downloaded from the VRS website at httix//www.varetire.or/Pdf/Publications/2018-annual-reiort.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA 23218-2500

NOTE J - GROUP LIFE INSURANCE (GLI) PROGRAM (OPEB PLAN)

Plan Description

The Group Life Insurance (GLI) Program was established pursuant to §51.1-500 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. All full-time, salaried permanent employees of the state agencies, teachers, and employees of participating political subdivisions are automatically covered by the VRS GLI Program upon employment. This is a cost-sharing multiple-employer plan administered by the Virginia Retirement System (the System), along with pensions and other OPEB plans, for public employer groups in the Commonwealth of Virginia.

In addition to the Basic GLI benefit, members are also eligible to elect additional coverage for themselves as well as a spouse or dependent children through the Optional GLI Program. For members who elect the optional group life insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums from members' paychecks and pay the premiums to the insurer. Since this is a separate and fully insured program, it is not included as part of the GLI Program OPEB. The specific information for GLI Program OPEB, including eligibility, coverage and benefits is described.

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NOTE J - GROUP LIFE INSURANCE (GLI) PROGRAM (OPEB PLAN) (CONTINUED)

Eligible Employees

The GLI Program was established July 1, 1960, for state employees, teachers, and employees of political subdivisions that elect the program. Basic GLI coverage is automatic upon employment. Coverage ends for employees who leave their position before retirement eligibility or who take a refund of their accumulated retirement member contributions and accrued interest.

Benefit Amounts

The GLI Program is a defined benefit plan with several components. The natural death benefit is equal to the employee's covered compensation rounded to the next highest thousand and then doubled. The accidental death benefit is double the natural death benefit. In addition to basic natural and accidental death benefits, the program provides additional benefits provided under specific circumstances that include the following: accidental dismemberment benefit, safety belt benefit, repatriation benefit, felonious assault benefit, and accelerated death benefit option. The benefit amounts are subject to a reduction factor. The benefit amount reduces by 25% on January 1 following one calendar year of separation. The benefit amount reduces by an additional 25% on each subsequent January 1 until it reaches 25% of its original value. For covered members with at least 30 years of creditable service, the minimum benefit payable was set at $8,000 by statute. This amount is increased annually based on the VRS Plan 2 cost-of-living adjustment and was increased to $8,279 effective July 1,2018.

Contributions

The contribution requirements for the GLI Program are governed by §51.1-506 and §51.1-508 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to state agencies and school divisions by the Virginia General Assembly. The total rate for the GLI Program was 1.31% of covered employee compensation. This was allocated into an employee and an employer component using a 60/40 split. The employee component was 0.79% (1.31% x 60%) and the employer component was 0.52% (1.31% x 40%). Employers may elect to pay all or part of the employee contribution; however, the employer must pay all of the employer contribution. Each employer's contractually required employer contribution rate for the year ended June 30, 2019 was 0.52% of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2017. The actuarially determined rate, when combined with employee contributions, was expected to finance the costs of benefits payable during the year, with an additional amount to finance any unfunded accrued liability.

Contributions to the Carroll County Group Life Insurance Program from the Authority were $423 and $408 for the years ended June 30, 2019 and June 30, 2018, respectively.

Contributions to the Galax City Group Life Insurance Program from the Authority were $0 and $232 for the years ended June 30, 2019 and June 30, 2018, respectively. The Authority had no employees covered by the City of Galax's VRS plan in 2019.

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GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred In flows of Resources Related to the GLI Program OPEB

Carroll County Group Life Insurance Program

At June 30, 2019, the entity reported a liability of $6,268 for its proportionate share of the Net GLI OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2018 and the total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation as of that date. The covered employer's proportion of the Net GLI OPEB Liability was based on the covered employer's actuarially determined employer contributions to the GLI Program for the year ended June 30, 2018 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2018 and 2017, the participating employer's proportion was 0.00041.

For the year ended June 30, 2019, the participating employer recognized GLI OPEB expense of $20. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.

Galax City Group Life Insurance Program

At June 30, 2019, the entity reported a liability of $3,561 for its proportionate share of the Net GLI OPEB Liability. The Net GLI OPEB Liability was measured as of June 30, 2018 and the total GLI OPEB liability used to calculate the Net GLI OPEB Liability was determined by an actuarial valuation as of that date. The covered employer's proportion of the Net GLI OPEB Liability was based on the covered employer's actuarially determined employer contributions to the Group Life Insurance Program for the year ended June 30, 2018 relative to the total of the actuarially determined employer contributions for all participating employers. At June 30, 2018, the participating employer's proportion was 0.00023% as compared to 0.00015% at June 30, 2017.

For the year ended June 30, 2019, the participating employer recognized GLI OPEB expense of $0. Since there was a change in proportionate share between measurement dates, a portion of the GLI OPEB expense was related to deferred amounts from changes in proportion.

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GLI OPEB Liabilities, GLI OPEB Expense, and Deferred Outflows of Resources and Deferred In flows of Resources Related to the GLI Program OPEB (Continued)

At June 30, 2019, the employer reported deferred outflows of resources and deferred inflows of resources related to the GLI OPEB from the following sources:

Carroll County Group Life Galax City Gorup Life

Insurance Program Insurance Program Deferred Outflows Deferred Inflows Deferred Outflows Deferred 1nf1ow5

Differences between expected and actual experier

Net difference between projected and actual

of Resources of Resources of Resources of Resources

$ 308$ 109$ 172$ 58

earnings on GLI OPEB program investments 208 115

change in assumptions - 257 152

Changes in proportion - 89 123

Employer contributions subsequent to the measurement date 423

Total $ 731 $ 663 $ 172 $ 448

$423 and $0 reported as deferred outflows of resources related to the GLI OPEB resulting from the employer's contributions subsequent to the measurement date will be recognized as a reduction of the Net GLI OPEB Liability in the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the GLI OPEB will be recognized in the GLI OPEB expense in future reporting periods as follows:

Year Ended June 30

Carroll County Group Galax City Group Life

Life Insurance Program Insurance Program

2020 $ (109) $ (72)

2021 (109) (72)

2022 (109) (72)

2023 (50) (43)

2024 10 (17)

Thereafter 12

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Actuarial Assumptions

The total GLI OPEB liability was based on an actuarial valuation as of June 30, 2017, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018. The assumptions include several employer groups as noted below. Mortality rates included herein are for relevant employer groups. Information for other groups can be referenced in the VRS CAFR.

Inflation 2.5%

Salary increases, including inflation:

General state employees 3.5% - 5.35%

Teachers 3.5%-5.95%

SPORS employees 3.5%-4.75%

VaLORS employees 3.5%-4.75%

JRS employees 4.5% Locality - General employees 3.5%-5.35%

Locality - Hazardous Duty employees 3.5%-4.75%

Investment rate of return 7.0%, net of investment expenses,

including inflation*

*Ad m i n ist rative expenses as a percent of the market value of assets for the last experience study were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide an assumed investment return rate for GASB purposes of slightly more than the assumed 7.0%. However, since the difference was minimal, and a more conservative 7.0% investment return assumption provided a projected plan net position that exceeded the projected benefit payments, the long-term expected rate of return on investments was assumed to be 7.0% to simplify preparation of OPEB liabilities

Mortality Rates - Largest Ten Locality Employers - General Employees

Pre-Retirement: RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates.



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Actuarial Assumptions (Continued)

Mortality Rates - Largest Ten Locality Employers - General Employees (Continued)


Mortality Rates (pre-retirement, post-

retirement healthy, and disabled)

Retirement Rates

Withdrawal Rates

Disability Rates

Salary Scale

Line of Duty Disability

Updated to a more current mortality table - RP-

2014 projected to 2020

Lowered retirement rates at older ages and

extended final retirement age from 70 to 75

Adjusted termination rates to better fit

experience at each age and service year

Lowered disability rates

No change

Increased rate from 14% to 20%

Mortality Rates - Non-Largest Ten Locality Employers - General Employees

Pre-Retirement: RP-2014 Employee Rates to age 80, Healthy Annuitant Rates to 81 and older projected with scale BB to 2020; males 95% of rates; females 105% of rates.



-25-




Actuarial Assumptions (Continued)

Mortality Rates Largest Ten Locality Employers - General Employees (Continued)


Mortality Rates (pre-retirement, post- Updated to a more current mortality table - RP-


Retirement Rates Lowered retirement rates at older ages and

extended final retirement age from 70 to 75

Adjusted termination rates to better fit Withdrawal Rates

experience at each age and service year

Disability Rates Lowered disability rates



NET GLI OPEB Liability

The net OPEB liability (NOL) for the GLI Program represents the program's total OPEB liability determined in accordance with GASB Statement No. 74, less the associated fiduciary net position. As of the measurement date of June 30,2018, NOL amounts for the GLI Program is as follows (amounts expressed in thousands):

GLI OPEB

Program

Total GLI OPEB Liability

Plan Fiduciary Net Position

Employers' Net GLI OPEB Liability (Asset)

$ 3,113,508

1,594,773

$ 1,518,735

Plan Fiduciary Net Position as a Percentage

of the Total GLI OPEB Liability 51.22%

The total GLI OPEB liability is calculated by the System's actuary, and each plan's fiduciary net position is reported in the System's financial statements. The net GLI OPEB liability is disclosed in accordance with the requirements of GASB Statement No. 74 in the System's notes to the financial statements and required supplementary information.

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NOTE J GROUP LIFE INSURANCE (GLI) PROGRAM (OPEB PLAN) (CONTINUED)

Long-Term Expected Rate of Return

The long-term expected rate of return on the System's investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of System's investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimate of arithmetic real rates of return for each major asset class are summarized in the following table:

Target

Arithmetic Long-term Expected

Weighted Ave rage

Long-term Expected

Asset Class (Strategy) Allocation Rate of Return Rate of Return

Public Equity 40.00% 4.54% 1.82% Fixed Income 15. 00% 0.69% 0.10% Credit Strategies 15.00% 3.96% 0.59% Real Assets 15.00% 5.76% 0.86% Private Equity 15.00% 9.53% 1.43%

Total 100.00% 4.80%

Inflation 2.50%

* Expected arithmetic nominal return 7.30%

*The above allocation provides a one-year return of 7.30%. However, one-year returns do not take into account the volatility present in each of the asset classes. In setting the long-term expected return for the system, stochastic projections are employed to model future returns under various economic conditions. The results provide a range of returns over various time periods that ultimately provide a median return of 6.83%, including expected inflation of 2.50%.

Discount Rate

The discount rate used to measure the total GLI OPEB liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made per the VRS guidance and the employer contributions will be made in accordance with the VRS funding policy at rates equal to the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the member rate. Through the fiscal year ended June 30, 2018, the rate contributed by the entity for the GLI OPEB will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly which was 100% of the actuarially determined contribution rate. From July 1, 2018 on, employers are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the GLI OPEB's fiduciary net position was projected to be availabLe to make all projected future benefit payments of eligible employees. Therefore the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total GLI OPEB liability.

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Sensitivity of the Employer's Proportionate Share of the Net GLI OPEB Liability to Changes in the Discount Rate

The following presents the employer's proportionate share of the net GLI OPEB liabiLity using the discount rate of 7.00%, as well as what the empLoyer's proportionate share of the net GLI OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current rate:

Authority's proportionate

share of the Carroll County

Group Life Insurance Program

Rate

1% Decrease Current Discount 1% Increase

(6.00%) (7.00%) (8.00%)

Net OPEB Liability

Authority's proportionate

share of the Galax City


$ 8,198 $ 6,268 $ 4,713

Net OPEB Liability $ 4,650 $ 3,561 $ 2,672

Group Life Insurance Program Fiduciary Net Position

Detailed information about the GLI Program's Fiduciary Net Position is available in the separately issued VRS 2018 Comprehensive Annual FinanciaL Report (CAFR). A copy of the 2018 VRS CAFR may be downLoaded from the VRS website at http://www.varetire.or/Pdf/PubLications/2018-annual-report.pdf, or by writing to the System's Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.

NOTE K - CONTINGENT LIABILITY

The Authority received a grant totaling $650,000 from the Virginia Department of Transportation (VDOT) for construction of an access road to the Wildwood IndustriaL Park. Terms of the grant require the Authority to repay same if a qualifying business does not invest a minimum of $3,250,000 in capital expenditures at WiLdwood Park by May 16, 2017. Under terms of the program, the Authority has requested a four year extension of the compliance period. The Authority is currently obligated to reimburse VDOT 20% of the grant, annually, until a qualifying business locates in the park; however, the Authority may defer payment until the expiration of the four year extension. In addition, under current program regulations the Authority may request a waiver for any payments due if a qualifying business Locates in the park during the extension period. If the quaLifying business does not invest a minimum of $3,250,000 by May 16, 2021 the Authority wiLl have to reimburse VDOT the $650,000. As of June 30, 2019, the Authority has not recognized any liabiLity in the financial statements as the ultimate amount of same (if any) cannot be reasonably estimated at the present time.

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NOTE L - ADOPTION OF ACCOUNTING PRINCIPLE

The Authority implemented the financial reporting provisions of Governmental Accounting Standards Board Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements during the fiscal year ended June 30, 2019. This Statement clarifies which liabilities governments should include when disclosing information related to debt. It also requires that additional essential information related to debt be disclosed in notes to financial statements. No restatement was required as a result of this implementation.

NOTE M - SPECIAL ITEM - RECOVERY OF INVENTORY

In the previous fiscal year, the Authority entered into a contract to sell a parcel in the Wildwood Industrial Park. Prior to closing, the agreement was voluntarily voided by both parties without penalty. The contract would have resulted in a loss on disposal of land totaling $254,714, with same being recorded in the prior fiscal year. The accompanying financial statements report the reversal of this transaction as a special item - recovery of inventory.

NOTE N - UPCOMING PRONOUCEMENTSC

Statement No. 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and local governments for accounting and financial reporting purposes and how those activities should be reported. The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.

Statement No. 87, Leases, requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.

Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period, provides guidance for reporting capital assets and the cost of borrowing for a reporting period and simplifies accounting for interest cost incurred before the end of a construction period. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.

Statement No. 90, Majority Equity Interests - An Amendment of GASB Statements No, 14 and No. 61, provides guidance for reporting a government's majority equity interest in a legally separate organization and for reporting financial statement information for certain component units. The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.

Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 1 5, 2020.

Management is currently evaluating the impact these standards will have on the financial statements when adopted.

-29-

Required Supplementary Information

Exhibit 4


Schedule of the Authority's Proportionate Share of the Net Pension Liability (Asset)

For the Measurment Dates of June 30, 2014 through June 30, 2018

Carroll County, Virginia's Pension Plan (a cost-sharing multiple employer plan administered by the VRS)

Date

(1)

Proportion of

the Net Pension

Liability (Asset)

(NPLA)

(2)

Proportionate

Share of the NPLA

(3)

Covered

Payroll

(4)

Proportionate

Share of the NPLA

as a Percentage of

Covered Payroll

(3)1(4)

(5)

Pension Plan's

Fiduciary Net

Position as a

Percentage of Total

Pension Liability (Asset)

(6)

2018 0.9901% $ 52,198 $ 76,161 68. 54% 85 .46%

2017 0.9821% 57,885 75,455 76. 71% 83 .27%

2016 0.9821% 76,191 71,076 107. 20% 77.5 1%

2015 0.9869% 60,273 70,312 85. 72% 81. 30%

2014 0 .9869% 49,774 71,345 69. 77% 83 .61%

Galax City, Virginia's Pension Plan (a cost-sharing multiple employer plan administered by the VRS)

Date

(1)

Proportion of

the Net Pension

Liability (Asset)

(NPLA)

(2)

Proportionate

Share of the NPLA

(3)

Covered

Payroll

(4)

Proportionate

Share of the NPLA

as a Percentage of

Covered Payroll

(3)/(4)

(5)

Pension Plans

Fiduciary Net

Position as a

Percentage of Total

Pension Liability (Asset)

(6)

2018 0.7221% $ 8,947 $ 45,953 19 .47% 95 .67%

2017 0.4396% 7,892 32,500 24.28% 93. 53%

2016 1.0720% 39,716 64,288 61.78% 87. 59%

2015 1.0926% 35,980 65,000 55.3 5% 86 .08%

2014 1.0926% 32,265 63,668 50.68% 83.30%

Schedule is intended to show information for 10 years. Information prior to the 2014 valuation is not available. However, additional years will

be included as they become available.

-30-

Exhibit 5


Schedule of Authority Contributions - Pension Plan

For the Years Ended June 30, 2015 through June 30, 2019

Carroll County, Virginias Pension Plan (a cost-sharing multiple employer plan administered by the VRS)

Contributions in

Relation to Contributions

Contractually Contractually Contribution Employers as a % of

Required Required Deficiency Covered Covered

Contribution Contribution (Excess) Payroll Payroll

Date (1) (2) (3) (4) (5)

2019

2018

2017

2016

2015

$ 7,900

8,530

8,451

8,650

8,557

$ 7,900

8,530

8,451

8,650

8,557

$ $ 78,373

76,161

75,455

71,076

70,312

10.08%

11.20%

11.20%

12.17%

12.17%

Galax City, Virginia's Pension Plan (a cost-sharing multiple employer plan administered by the VRS)

Contributions in





Date (1) (2) (3) (4) (5)

2019*

2018

2017

2016

2015

$ -

3,952

2,795

7,406

7,488

$ - 3,952

2,795

7,406

7,488

$ $ -

45,953

32,500

64,288

65,000

0.00%

8.60%

8.60%

11.52%

11.52%

1n FY 2019 there were no full time employees for the Authority that were included on the City of Galaxs VRS plan. Therefore, there

would be no amount to allocate for them for FY 2019.

Current year contributions are from Authority records and prior year contributions are from the VRS actuarial valuation performed each year.

Schedule is intended to show information for 10 years. Since 2015 is the first year for this presentation, only five years of data are

available. However, additional years will be included as they become available.

-31-

Exhibit 6


Notes to Required Supplementary Information - Pension Plan


Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions since the prior actuarial valuation.

Changes of assumptions - The following changes in actuarial assumptions were made effective June 30, 2016

based on the most recent experience study of the System for the four-year period ending June 30, 2016:

Largest 10 - Non-Hazardous Duty:

Mortality Rates (pre-retirement, post-retirement

healthy, and disabled) Updated to a more current mortality table - RP-2014 projected to 2020

Retirement Rates Lowered rates at older ages and changed final retirement

from 70 to 75

Withdrawal Rates Adjusted rates to better fit experience at each year age and

service through 9 years of service




All Others (Non 10 Largest) - Non-Hazardous Duty:

Mortality Rates (pre-retirement, post-retirement

healthy, and disabled)

Updated to a more current mortality table - RP-2014

projected to 2020

Retirement Rates Lowered rates at older ages and changed final retirement

from 70 to 75

Withdrawal Rates Adjusted rates to better fit experience at each year age and

service through 9 years of service




-32-

Exhibit 7


Schedule of the Authority's Proportionate Share of the Net OPEB Liability (Asset)


For the Measurement Dates of June 30, 2018 and 2017

Carroll County, Virginia's GLI Plan (a cost-sharing multiple employer plan administered by the VRS)

Date

(1)

Employer's

Proportion of the

Net GLI OPEB

Liability (Asset)

(2)

Employer's

Proportionate

Share of the

Net GLI OPEB

Liability (Asset)

(3)

Employer's

Covered

Payroll

(4)

Employer's

Proportionate Share

of the Net GLI OPEB

Liability (Asset)

as a Percentage of

Covered Payroll

(3)/(4)

(5)

Plan Fiduciary

Net Position as a

Percentage of Total

GLI OPEB Liability

(6)

2018 0.00041% $ 6,268 $ 76,161 8.23% 51.22%

2017 0.00041% 6,158 75,455 8.16% 48.86%

Galax City, Virginia's GLI Plan (a cost-sharing multiple employer plan administered by the VRS)

Date

Employer's

Proportion of the

Net GLI OPEB

Liability (Asset)

Employer's

Proportionate

Share of the

Net GLI OPEB

Liability (Asset)

Employer's

Covered

Payroll

Employer's

Proportionate Share

of the Net GLI OPEB

Liability (Asset)

as a Percentage of

Covered Payroll

(3)1(4)

Plan Fiduciary

Net Position as a

Percentage of Total

GLI OPEB Liability

(1) (2) (3) (4) (5) (6)

2018 0.00023% $ 3,561 $ 45,953 7.75% 51.22%

2017 0.00015% 2,224 32,500 6.84% 48.86%

Schedule is intended to show information for 10 years. Information prior to the 2017 valuation is not available. However, additional years will

be included as they become available.

-33-

Exhibit 8


Schedule of Authority Contributions


For the Years Ended June 30, 2017 through June 30, 2019

Carroll County, Virginias GLI Plan (a cost-sharing muttiple employer plan administered by the VRS)

Contributions in





Date (1) (2) (3) (4) (5)

2019

2018

2017

$ 423

408

393

$ 423

408

393

S S 78,373

76,161

75,455

0.54%

0.54%

0.52%

Galax City, Virginias GLI Plan (a cost-sharing multiple employer plan administered by the VRS)

Contributions in





Date (1) (2) (3) (4) (5)

2019*

2018

2017

$ - 232

142

$ - 232

142

S S 45,953

32,500

0.00%

0.50%

0.44%

*ln FY 2019 there were no full time employees for the Authority that were included on the City of Galax's GLI plan. Therefore, there

would be no amount to allocate for them for FY 2019.

Schedule is intended to show information for 10 years. Since 2018 is the first year for this presentation, only three years of data are

available. However, additional years will be included as they become available.

-34-

COMPLIANCE SECTION

Mortality Rates (pre-retirement, post-retirement healthy, and disabled)

Retirement Rates

Withdrawal Rates

Exhibit 9


Notes to Required Supplementary Information



Changes of benefit terms - There have been no actuarially material changes to the System benefit provisions

since the prior actuarial valuation.

Changes of assumptions - The following changes in actuarial assumptions were made effective June 30, 2016

based on the most recent experience study of the System for the four-year period ending June 30, 2016:

Largest Ten Locality Employers - General Employees

Mortality Rates (pre-retirement, post-

retirement healthy, and disabled)

Updated to a more current mortality table - RP-2014 projected

to 2020

Retirement Rates Lowered retirement rates at older ages and extended final

retirement age from 70 to 75

Withdrawal Rates Adjusted termination rates to better fit experience at each age

and service year

Disability Rates Lowered disability rates Salary Scale No change Line of Duty DisabiLity Increased rate from 14% to 20%

Non-Largest Ten Locality Employers - General Employees

Updated to a more current mortality table - RP-2014 projected

to 2020

Lowered retirement rates at older ages and extended final

retirement age from 70 to 75

Adjusted termination rates to better fit experience at each age

and service year

Disability Rates

Salary Scale Lowered disability rates

No change Line of Duty Disability Increased rate from 14% to 15%

-35-



Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

To the Board of Directors Carroll-Grayson-Galax Regional Industrial Facilities Authority Galax, Virginia

We have audited, in accordance with the auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Specifications for Audits of Authorities, Boards and Commissions, issued by the Auditor of Public Accounts of the Commonwealth of Virginia, the financial statements of the business-type activities of the Carroll-Grayson-Galax Regional Industrial Facilities Authority as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Carroll-Grayson-Galax Regional Industrial Facilities Authority's basic financial statements and have issued our report thereon dated January 21, 2020.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Carroll-Grayson-Galax Regional Industrial Facilities Authority's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we did identify certain deficiencies in internal control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We did identify a deficiency in internal control, described in the accompanying schedule of findings and responses, as item 2019-001 that we consider to be a material weakness.

-36-

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Carroll-Grayson-Galax Regional Industrial Facilities Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Carroll-Grayson-Galax Regional Industrial Facilities Authority's Response to Findings

Carroll-Grayson-Gatax Regional Industrial Facilities Authority's response to the findings identified in our audit is described in the accompanying schedule of findings and responses. Carroll-Grayson-Galax Regional Industrial Facilities Authority's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

r'


-37-


Schedule of Findings and Responses Year Ended June 30, 2019

Section I - Summary of Auditors' Results

Financial Statements

Type of auditors' report issued: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? Yes Significant deficiency(ies) identified? No

Noncompliance material to financial statements noted? No

Section II - Financial Statement Findings

Finding 2019-001

Criteria: An auditee should have controls in place to prepare financial statements in

accordance with current reporting standards.

Condition: The audit identified year end adjusting entries that were required for the financial

statements to be presented in accordance with current reporting standards.

Effect of There is a reasonable possibility that a material misstatement of the financial

Condition: statements will not be prevented or detected and corrected by the entity's internal

controls over financial reporting.

Cause: The auditee faled to identify all year end accounting adjustments for the accounts to

be prepared in accordance with current reporting standards.

Recommendation: Authority staff should review the audit adjustments for the current year and update

future financial reports, as necessary, to comply with reporting standards.

Management's Staff will review the audit adjustments in the current year in relation to future Response: financial statements and attempt to prepare the financial statements in accordance

with applicable reporting standards.

Section III - Status of Prior Audit Findings

Finding 2018-001 is recurring in the current fiscal year as finding 2019-001.

-38-

BLUERI DGECROSSROADS economic development authority


Carroll-Grayson-Galax Regional Industrial Facilities Authority January 27, 2020 Minutes

Roll Call • Cellell Dalton- Carroll County absent • Rex Hill- Carroll County present • Keith Barker- City of Galax present • C.M. Mitchell- City of Galax present • Bill Shepley - Grayson County present • Kenneth Belton- Grayson County present • Robbie McCraw- Carroll alternate absent • Mike Larrowe- Galax alternate present • Mike Hash- Grayson alternate absent • Others present-

o Dan Campbell- BRCEDA Interim Director o Mandy Archer- SBDC Director o Gitmy Plant- Administrative Assistant o Josh Lewis- VIAA

Call to Order

Mr. Mitchell called the meeting to order at 3:36 PM.

Selection of Officers for CY 2020

Mr. Campbell opened the floor for nominations for chairman. Mr. Barker nominated Mr. Mitchell for chairman. Mr. Belton seconded the motion. Hearing no other nominations, Mr. Campbell asked for those in favor of the nomination to say aye; the nomination carried unanimously.

Mr. Mitchell opened the floor for nominations for vice chairman. Mr. Barker nominated Mr. Belton for vice chairman. Mr. Shepley seconded the motion. Hearing no other nominations, Mr. Mitchell asked for those in favor of the nomination to say aye; the nomination carried unanimously.

Mr. Mitchell opened the floor for nominations for secretary/treasurer. Mr. Shepley nominated Mr. Barker for secretary/treasurer. Mr. Hill seconded the motion. Hearing no other nominations, Mr. Mitchell asked for those in favor of the nomination to say aye; the nomination carried unanimously.


1117 East Stuart Drive• Galax, Virginia 24333 Tel: 276.601-7727 www.brceda.orq


Carroll - Galax - Grayson VIRGINIA

Consent Agenda

Mr. Baker made the motion to approve the consent agenda, including the minutes and Treasurer's Report, as presented. Mr. Shepley seconded the motion, which carried unanimously.

VIAA — Josh Lewis

Mr. Lewis discussed VIAA, new staff and programs underway. He indicated that he is doing more marketing of the region. Thus, localities may need to use their funding in other areas. Business recruitment and retention is a focus going forward. Currently 5 of the 6 localities covered by VIAA do not have economic development staff; Mr. Lewis tries to assist localities as much as possible. VIAA is represented on the Go Virginia Board; their programs were mentioned. VIAA marketing grant dries up this year, however some funds will be available for next 2 years. Further discussion ensued with several questions and comments from BRCEDA Board members.

SBDC Report

Ms. Archer reported that the SBDC is closing out their CY 2019 budget year. We are estimating that a little less than $2200 will be left in remaining funds. This will be an $1100/$1100 split between SBA funds and local match. The state has approved the use of this money for training in the first half of CY 2020. Those additional funds will be added to our CY 2020 budget when final amounts are available. In February we will bring an amended CY 2019 budget to you for approval.

Today, we are presenting an updated CY 2020 budget for your review and approval. Some of the numbers have changed from the draft you saw back in September based on the additional funds given to SBA/SBDC by Congress. The Blue Ridge Crossroads SBDC was brought back up to past funding levels of $70,000 in SBA funds. In addition, our office has been provided with a performance award of $5,151. The additional funds must be matched in either cash or in-kind contributions. We have managed to reach the match with in-kind contributions so that we are not asking for further monies from the localities.

Mr. Hill made a motion to approve the amended 2020 budget. Mr. Shepley seconded that motion, which passed unanimously.

Mr. Shepley approved the ratified cash match letter/certificate. Mr. Hill seconded the motion, which passed unanimously.


1117 East Stuart Drive• Galax, Virginia 24333 Tel: 276.601-7727 • www.brceda.orq



Wildwood Commerce Park

Mr. Campbell has received a phone call inquiry regarding mowing and landscaping at Wildwood. We have been using Lineberry Lawncare for a few years and have been pleased with their work. Mr. Campbell asked the Board if they had any interest in soliciting proposals at this time. Following some discussion and given the upcoming change in BRCEDA's staff it was suggested that we continue with the present contractor for another year and then have the new director issue a formal RFP for the services needed.

Mr. Campbell shared a follow-up e-mail from John Loftus, VEDP, regarding the Business Ready Sites Program funding for the natural gas interconnect. The BRSP program would not allow for the amortization payback schedule that BRCEDA had inquired about. Mr. Loftus indicated that BRCEDA may be eligible in FY20 for Development Grant funding which will come out in the Spring of 2020. He expects that VEDP will return to guidelines that allow grants for private investment.

Director's Report

Mr. Campbell indicated that a Draft audit has been received from Robinson, Farmer, Cox Associates. He and Ms. Archer will review the Draft. Mr. Stone will be invited to the next meeting to discuss the audit and make any recommendations.

A brief discussion ensued regarding the Southwest VA Training Center legislation enacted by the General Assembly last year. It was mentioned that a budget amendment had been introduced this year to allow The Life Center of Galax and its ownership to purchase the property. Additional information will be sought pertaining to this proposal.

Announcements

Mr. Barker asked if meetings could be moved up to 3:00 pm from 3:30 pm. With no objections the meeting time will be changed to 3:00 pm.

With no further business, the meeting adjourned.

Respectfully Submitted- Keith E. Barker, Secretary

C. M. Mitchell - Chairman


1117 East Stuart Drive• Galax, Virginia 24333 Tel: 276.601-7727 wwwiirceda.orq

1 of 3 01/31/20 VA 0000153659575 BB&T

RECEIVW 39J3•31-30 908T1 0 C 001 30 50 00'

BLUE RIDGE CROSSROADS ECONOMIC DEV AGCY 1117 E STUART DR STE 178 GALAX VA 24333-2656

Your consolidated statement For 01/31/2020

Contact us BBT.com

(800) BANK-BBT or

(800) 226-5228

BB&T and SunTrust have merged to become Truist. Until our separate operating systems are fully integrated, well continue to use

the BB&T name. For now, keep banking as you always have. Find details about BB&T now Truist, your account(s), and the Truist

Disclosure at any BB&T financial center, BBT.comlTrulst or 800-226-5228.

Summary of your accounts ACCOUNT NAME ACCOUNT NUMSE BALANZE:L( - DETAILS ON

BASIC PUBUC FUND CHECKING ----.- 220,1/0.38 page 1

BASICPUBLICFUNDCHECKING . 24,160.15 page2

BAS(CPUBL(CFUNDCHECKING 8,963.53 page?

Total checking and money market savings accounts $253,894.06

Checking and money market savings accounts

• BASIC PUBLIC FUND CHECKING 0000153659575

Account summary

Your previous balance as o112131/2019 5238,007.48 Checks - - 115,360.03 Other withdrawals, debits and service charges - 0.00 Deposits, credits and interest + 91,522.93 'jour new ba'ance as of 01/31/2020 = $220,170.38

Checks

DATE CHECK C AMOUNT(S) DATE CHECK # AMOUNT(S) DATE CECK C AMOUNT(S)

01/09 2277 22,597.70 01/21 2285 13,452.93 01/29 2289 53.36

01/14 *2282 11,700.00 01/11 2286 1,114.90 01/21 2290 8/6.23

01/06 2283 175.00 01/21 2287 '1,899.32 01/31 *2293 82.35

01/10 2284 300.00 01/24 2288 48.24

indicates a skip in sequential check numbeis above this tern Total checks = S115,360.03

Deposits, credits and interest

DATE DESCRIPTON AMOUNT(S)

01/03 VENDORPAYM COVA Carroll-Grayson-Galax CUSTOMER ID 81288611 13,452.93 01/07 DEPOSII - 400.00

01/13 DEPOSIT 12,550.00

01/13 DEPOSIT 35,560.00

01/13 DEPOSIT 35,560.00

Total deposits, credits and interest = S97,522.93

A

BASIC PUBLIC FUND CHECKING - TIL

Account summary

Your previous balance as of 12/31/2019 $28,807.88 Checks - 17,500.66 Other withdrawals, debits and service charges - 0.00 Deposits, credits and interest + 13,452.93 Your new balance as of 01/31/2020 = $24,760.15

Checks

DATE CHECK AMOUNT(S) DATE CHECK # AMOUNT(S) DATE CHECK # AMOUNT(S)

01/22 1476 9,011.10 01/03 1480 4,000.00 01/17 1484 253.15 01/06 1477 335.00 01/03 1481 524.34 01/24 1485 4824 01/07 1478 400.00 01/15 1482 12.76 01/17 1486 440.00 01/07 1479 509.65 01/16 1483 136.59 01/21 1487 1,829.82

Total checks = $17,500.66

Deposits, credits and Interest

DATE DESCRIPTION AMOUNT(S)

01/21 DEPOSIT

Total deposits, credits and interest

13,452.93

$13,452.93

BASIC PUBLIC FUND CHECKING 0000253649267

Account summary

Your previous balance as of 12/31/2019 $8,963.53 Checks 0.00

Other withdrawals, debits and service charges - 0.00

Deposits, credits and interest + 0.00 Your new baLance as of 01/31/2020 = $8,963.53

PAGE 2 OF 3

VIRGINIA

SBDC BLU ERI DG ECROSSROADS economic development authority BLUE RIDGE CROSSROADS


SBDC Director Report: 2/20/20

VA State Office SBDC Updates (Funding)

Calendar Year 2019 Budget Update:

Attached is the CY 2019 amended budget for your approval. You will see the Budget vs Actual expenditures for both SBA and Cash Match funds. The far right column indicates how much in funds was moved in or out of that category. Since less than 10% of the budget was adjusted from categories only local approval is necessary.

ACTIONS NEEDED: 1) Approve amended 2019 budget

**Remaining Funds: $1,053 in SBA and $1,055 in local funds for a total of $2,108. These funds will be used for classes in partnership with UVA-Wise. (QuickBooks and Marketing)

Calendar Year 2020 Budget & Contract Update:

We have not received the CY 2020 Contract. We cannot process SBA reimbursement until the contract is received.

Blue Ridge Crossroads SBDC Updates

SBDC Public Appearances, Significant Meetings, Event Attendance, Trainings: 2/4/2020 — Met with members of General Assembly to discuss SBDC: 0 'Quinn, Campbell, Wampler, and Moorefield. Left information with those unable to attend the meeting: Stanley, Sutterlein, ChajIn, Pillion, and Kilgore. 2/6/2020 — BSU Meeting 2/18/2020 — Opportunity SWVA & Friends of SWVA

SBDC Projects

Website: Continue to develop content. Training: See training schedule for upcoming events.

Professional Development & Trainings:

February 4-5: Virginia SBDC Director Meeting in Richmond, VA

BUDGET JUSTIFICATION - YEAR 2019 v.4 2/10/20

ESTIMATED COSTS 2019 Blue Ridge Crossroads SBDC approved BRCEDA

DESCRIPTION SBA LOCAL LOCAL IN-

INDIRECT TOTAL

A. PERSONNEL Key Personnel Costs $ - (include all paid personnel) $ -

Mandy Archer, Director $ 35270 $ 13,103 $ 48,373 Ginny Plant, Administrative Assistant $ 2,316 $ 27,902 $ 30,218 X)00000(X, Business Analyst $ - Hourly Wage, 250 hrs @ 8 .00 lhr $ - Student Wage, hrs © /hr $ -

$ 37,587 $ 41,005 $ - $ 78,591

B. FRINGE BENEFITS Faculty- % $ 17,283 $ 5,825 $ 23,108 Admin Faculty- % $ 1,085 $ 12,152 $ 13,237 Classified- % $ - Wage- %rate S - $ - Total Fringe Benefits $ 18,368 $ 17,977 $ - $ 36345

C. TRAVEL - In-state: 2200 miles @ . 545 Imi. $ 2,752 $ 2,752 In-state: Lodging: $128.5*7 days $ 1,395 $ 1,395 In- state: Meals: $25*7 days (partial per diem) $ 503 $ 503 In-State: Parking or ofher $5*7 days $ -

Registration Fees for Continuing Education $ 373 $ 373 $

Out-of-state: (ASBDC Annual Meeting -California) $ - Airfare or Mileage: Airfare estimate $ - Lodging: 4 nights @ 200 mt. $ - Meals: 4 days @ 66 Iday $ - Parking or other 4 days © 5 per day $ - Registration $ -

Total Travel $ 5,024 $ - $ - $ 5,024 D. EQUIPMENT (Specify each item) $ - Total Equipment $ - $ - $ - $ -

E. SUPPLIES General office, operational, and computer supplies $ 1,245 994.88

$ - $ 2,240

Total Supplies $ 1,245 $ 995 $ - $ 2,240 F. CONTRACTUAL Rent, 2 offices (inc. phones, internets, support serv.) 264 Sq ft@ $15.15/sq. ft $ 4,000 Accounting Services $ 575 $ 790 $ 1,365 Accounting Contract Services (Client) 1 5hr5©$75/hr $ 844 $ 2,073 $ 2,916 Legal Accounting Contract Services (Client) l2hrs@$100/hr $ 440 $ 500 Computer Repairs & Maintenance $ 464 $ 1,499 $ 1,962 Cybersecurity Insurance / Shredding Service $ 400 $ 223 Total Contractual $ 6,722 $ 4,584 $ - $ 11,306

G. CONSULTANTS (Specify purpose, hours, and rate)

$ Total Consultants $ - $ - $ - $ -

H. OTHER -

$ Copying $ 741 $ 741 Postage $ 55 $ 55 Printing/Publications $ - Dues/Subscriptions $ 198 $ 198 Telephones $ 1,303 $ 1,303 Computer Software $ 875 $ 875 Website $ - Marketing $ 2,009 $ 2,009

$

$ $

Total Other $ - $ 5,182 $ - $ 5,182 TOTAL DIRECT COSTS 1$ 68,945 $ 69743 $ - $ 138688 I. INDIRECT I

Waived indirect I AUTO CALCI S Applicable indirect rate lxx % I

TOTAL BUDGET - - 1$ 68,945 1$ 69,7431 $ - IAUTO CALCI $ 138,688

Blue Ridge Crossroads SBDC 2019 Budget

Line Item SBA Budget CY 2019 SBA Actual CV 2019 CASH Budget CY CASH Actual

Difference Percentage

of Entire Budget

Salaries $ 36075 $ 37,587 $ 42,083 $ 41,005 $ 434 0.33%

Fringe $ 18,020 $ 18,368 $ 19,581 $ 17,977 $ 1,256 0.96%

Travel $ 5,744 $ 5,024 $ 720 0.55%

Equipment $ -

Supplies $ 4,561 $ 1,245 $ 995 $ 2,321 1.77%

Contractual $ 5,600 $ 6,723 $ 4,325 $ 4,585 $ 1,383 1.06%

Rent $ 4,000 $ 4,000

Accounting Services $ 575 $ 1,200 $ 790

Accounting Contract for Clients $ 844 $ 1,125 $ 2,073

Legal Contract for Clients $ 1,200 $ 440

Computer Repairs & Maintnenace (IT) $ 464 $ 2,000 $ 1,499

Cybersecurity Insurance $ 400 $ 400

Other Contract Labor $ - $ 223

Consultants $ -

Other $ 4,886 $ 5,181 $ 295 0.23%

Copying $ 1,000 $ 741

Postage $ 306 $ 55

Printing/Publications

Dues/Subscriptions $ 200 $ 198

Telephones $ 1,380 $ 1,303

Computer Software $ 1,000 $ 875

Website

Marketing $ 1,000 $ 2,009

$

$

$

Miscellaneous $ 77 $ 77 0.06%

$

TOTAL $ 70,000 $ 68,947 $ 70,875 $ 69,820 $ 6,486 4.96%

TOTAL BUDGET $ 130,875

Client Interaction Update

Jan 1, 2019 — Dec 31, 2019 Actual SWVA SBDCs Goal

BRC SBDC Goal

Percentage of local

goal Total Clients Served 133 440 110 121%

Long term clients (5+ hours) 36 83 21 171% Total Counseling Hours 525.52

Total Counseling Sessions 724 Accounting Referrals 19

Legal Referrals 2 Existing Business FundedlCapital 12

Start-up Businesses Funded 1 Purchase of Existing Business 0

Total Capital Formation $462,500 $9,350,000 $2,337,500 20% Business Starts 1 70 20 5% Jobs Created 44 58 76% Jobs Retained 75 70 107%

Ribbon Cutting Events 8 Number of Events 10 Event Attendees Estimate 186

Jan 1, 2020 — Dec 31, 2020 Actual SWVA SBDCs

Goal

BRC SBDC Goal

Percentage of local

goal Total Clients Served 31 440 110 28%

Long term clients (5+ hours) 1 83 21 4.76% Total Counseling Hours 65 765 8.5%

Total Counseling Sessions 112 Accounting Referrals 5

Accounting Counseling not available Legal Referrals 0

Legal Counseling 0 LLC 4 EIN 3

Incorporation / 1023 1 Business Start records 6

Existing Business Funded/Capital Start-up Businesses Funded

Purchase of Existing Business Total Capital Formation $9,350,000 $2,337,500 0%

Business Starts 20 Jobs Created 58 Jobs Retained 70

Ribbon Cutting Events Number of Events Event Attendees

VIRGINIA

SBDC BLUERIDGECROSSROADS economic development authority

GLUE ROGE CROSSROADS

BTue Ridge Crossroads Small Business Development Center Report 2/7/2020

2006-2011 2012 2013 2014 2015 2016 2017 2018 2019* Total Total Number of Clients 702 178 170 154 143 118 112 130 131 1838

Total Client Sessions 3618 465 592 575 731 583 748 884 724 8920

Total Hours of Counseling 6241 522 786 657 833 449 537 914 526 11464

Total Long Term Clients (5+ hours) 286 28 39 40 36 25 34 44 36 568

Business Plans completed 251 29 18 22 26 23 21 31 40 461

Businesses Creating Impact 128 17 25 34 25 29 33 26 14 331

New Business Starts 103 12 17 10 15 14 16 12 1 200

Expanded Businesses 25 5 8 24 10 15 17 14 13 131

Anticipated Jobs 975 23 97 101 157 23 26 40 28 1470

Actual Jobs Created I Retained 639 29 95 222 106 46 78 47 95 1357

FundingApproved $ 44,900,322 $ 947,900 $ 4,144,770 $ 2,115,239 $ 1,922,224 $ 677,655 $ 1,371,088 $ 1,591,680 $ 315,000 $ 57,985,878

BLUERIDGECROSSROADS economic development authority BLUE RIDGE CROSSROADS

VIRGINIA

SBDC Carroll — Galax — Grayson VIRGINIA

Upcoming Client Training / Events / Seminars

March 11th April 14th April 18th May 6th July 22nd October 14th

Grow with Google: Spring into Action Marketing Overview QuickBooks (partner with UVA-Wise and CIHE. Use CY2O 19 funds) Grow with Google: National Small Business Week Livestream Digital Skills Summer School Annual Holiday Livestream

Other topics: - Sustainability Planning - Google Places

Community Involvement & Partner Updates . None

BRCEDA Virginia Enterprise Zone Update

Applications are due to DHCD April 1st, 2020

Boards & Committees

Galax City Career and Technical Education Advisory Board — No update

New River/Mount Rogers Workforce Investment Board / Business Solutions Unit — • March 1 9th — Crossroads Career Fair

Breakfast Sponsorship

MySWVA Opportunity — The 2020 Economic Forum at UVA-Wise: May 20, 2020

Friends of SWVA Marketing Advisory Board — Spring Break Blitz 2020

a. March 16 - March 27th b. Time - 2:00 -6:30 PM c. Tentative Blitz days and locations.

1. Blue Ridge Parkway - March 17th — Stuart 2. New River - March 19th - Pulaski 3. Mount Rogers - March 26th - Whitetop Community Center 4. Makeup Blitz - April, 2nd at Heartwood

BRCEDA Operating Expenses Versus Budget

FY 2020 FY 2020 FY 2020

APPROVED Expenses

thru 12/30119 as % BUDGET NOTES

Personnel $ 63,866 $ 31,603 49% SALARY - 6000 $ 46,800 $ 23,348 50% FICA -6001 $ 3,580 $ 1,508 42% HEALTH INSURANCE - 6003 $ 13,486 $ 6,747 50% GROUP -6007 $ - $ - 0% VRS -6002 $ - $ - 0%

Contracted Services $ 27,475 $ 3,170 CONTRACTED SERVICES- LEGAL - 6031 $ 10,000 $ 1,255 13%

CONTRACTED SERVICES- CONSULTING - 6030/6031 $ 2,500 $ - 0% CONTRACTEDSVC-ACCOUNTING -6031 $ 6,000 $ 1,915 32%

CONTRACTED SVC- AUDIT - 6031 $ 8,975 $ - 0%

Office $ 8,703 $ 4,249 49%

INSURANCE COVERAGE - 6060 $ 2,993 $ - 0%

POSTAGE - 6070 $ 270 $ 59 22%

TELECOMMUNICATIONS -6071 $ 1,440 $ 408 28%

OFFICE SUPPLIES -6072 $ 1,000 $ 1,532 153%

OFFICE RENTAL - 6073 $ 3,000 $ 2,250 75%

Outreach/Marketing $ 3,000 $ 628 21% ADVERTISING AND OTHER MARKETING - 6040 $ 2,500 $ 628 25%

DUES/PROFESSIONAL MEMBERSHIPS - 6041 $ 500 $ - 0%

Travel/Training $ 4,500 $ 135 3%

TRAVEL - 6100 $ 2,000 $ - 0%

MILEAGE - 6101 $ 2,000 $ 135 7%

TRAINING/DEVELOPMENTTRAINING -6102 $ 500 $ - 0%

Captial Outlay (Non-construction) EQUIPMENT -6130 EQUIPMENT- COMPUTERS - 6200

Wildwood Expenses $ 35,500 $ 6,750 19% Maynard Drive marker (one-time expense) $ - 0%

Wildwood monthly mowing - 6120 $ 9,000 $ 3,900 43% Wildwood streetlights (electric) $ 1,500 0% Wildwood maintenance / stormwater $ 25,000 $ 2,850 11% Engineering exp.

Other items $ 7,500 $ - 0%

OTHER OPERATING EXPENSE $ 5,000 $ - 0% Annual LOC fee

SPECIALEVENTS -6160 $ 1,000 $ - 0%

New initiatives $ 1,500

Total Operational Expenses $ 150,544 $ 46,534 31% MRPDC Loan (Interest Only) $ 4,944 $ 4,944 100%

Wildwood Debt Service $ 271,173 $ 82,145 30%

TOTAL EXPENDITURES $ 426,661 $ 133,623 31%

Wildwood Debt Service Support $ 276,117 $ 138,060 50%

Localities' Operational Support $ 150,544 $ 87,850 58%

Other Revenues

TOTAL REVENUES $ 426,661

Total Revenues per Locality $ 142,220

Approx. $42,000 designated for "Marketing" in checking acct. $40,000 accrued in checking account for natural gas project

WYTHEVILLE COMMUNITY COLLEGE NEW GIVER MOUNT ROGERS REGION

JAI&A I

VlrglnlaEmployment Commission

. People inc. i Building Futures, RealizIng Dreams

VIRGINIA CAREER WORKS

Thursday, March 19 I 9:00am - 1:00pm Crossroads Institute, 1117 E Stuart Dr, Galax, VA

Healthcare, Information Technology, Manufacturing and Service Industry Employment Opportunities

a

Participating Companies

• Albany Industries - Galax

• Barker Microfarads

• Blue Ridge Designs, LLC

• Blue Ridge Home Health Care

• Census Bureau

• Darco Southern

• Galax Health and Rehab

• Grayson County Sheriff's Office

• Hansen Turbine Assemblies

• Heritage Hall-Laurel Meadows

• Life Center of Galax

• Luttrell Staffing Group

• Mary Kay

• Metalworx, Inc.

• Mount Rogers Community Services

• Oak Hall Cap & Gown

• Ottenweller

• River North Correctional Center

• Rooftop of Virginia, CAP

• RotoMetrics

• Skyline Nursing and Rehab Center

• Somic America

• TCRH

• Team Nurse

• The Results Companies

• Virginia Kares Home Care Services

• Waddell Nursing and Rehab

• Westaff

• WorkForce Unlimited

• And MORE...

Positions are available for all skill levels: entry to advanced. Please bring several copies of your resume and dress for success.

The Carroll County Economic Development Authority held its regular monthly meeting on Monday, March 2, 2020 at the Carroll County Governmental Complex in Hillsville.

Members present: Chairman Ricky Thomas, Vice-Chairman Richard Sowers, Larry Edwards. Kay Carter, Ronnie Collins, Mandi McCraw and Secretary Larry Chambers.

Also, EDA Treasurer Sandy West, and Cellell Dalton, interim county administrator.

iWi,, iites Mr. Collins presented a clarification for the Feb. 3, 2020 minutes plus the following motion. After a lengthy discussion, with what we were presented it appears the transaction was not handled correctly by the former administrator or the county attorneys. In the end we voted to declare the property surplus because it wasn't fair to the individual who sold the property to the county for a dollar. Mr. Chambers seconded the motion, and approved 7-0.

Mr. Sowers made the motion to approve the minutes of the Feb. 3, 2020 meeting with the amendment, seconded by Ms. Carter and approved by a 7-0 vote.

Claims Report Mr. Chambers made the motion to approve the monthly claims presented by Ms. West, with the exception of a $37.99 payment for alight fixture for the Carroll County Child Care Center to Lowe's Home Improvement until more information can be obtained from Maintenance Director Ricky Dowdy. Mr. Collins seconded the motion and approved by a 7-0 vote.

Treasurer's Report Mr. Chambers made the motion to approve the treasurer's report presented by Ms. West. Mr. Collins seconded the motion and approved by a 7-0 vote.

Updates Mr. Dalton provided a package of photos and other information describing property owned by the EDA in Carroll County. After a month to review, EDA members will discuss the properties at its April 6 meeting.

Chairman Thomas presented an updated report on the contract with Appalachian Natural Gas Distribution Co.

EDA Maintenance Request Mr. Thomas made the following motion: Beginning March 2, 2020 the Carroll County EDA requires that all non-emergency Maintenance Requests (for EDA properties) shall be submitted to the EDA board for approval at the earliest scheduled meeting. The board will then choose an appropriate course of action to proceed with the-request, either by county maintenance or by another outside vendor (subject to the vendor meeting existing county guidelines).

Mr. Edwards seconded the motion, and approved by a 7-0 vote.

It was noted that Chairman Thomas and Vice-Chairman Sowers would meet with the Carroll County Board of Supervisors budget committee on Thursday, March 5 at 3 p.m.

Adjournment Mr. Collins made the motion to adjourn, seconded by Ms. Carter, and approved by a 7-0 vote.

PLEASE NOTE: The next regular meeting of the EDA will be held April 6, 2020 at 4:30 p.m. EPA members will meet at 4:30 p.m. at the Carroll County Child Care Center. After visiting the child care center, EDA members will meet at Virginia Produce for a tour of the plant and then have its monthly meeting in the Virginia Produce conference room.

Agenda

Meeting with Town Manager of Hillsville

March 3, 2020

1- Current

a- Fireworks

b- Reassessment

c- Dispatch

d- Tourism

e- Schools

f- Land Use

g- Boundary Adjustment

h- Other

2- Future

a- Water/sewer

b- Other

memorandum - carroll county, va

Documents