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6 the following: develop plans and funding recommendation s to rehabilitate an additional 10 rental units. On motion by Mr. Lynch, seconded by Ms. Richards, the Annual Report, as amended, was approved by the following vote. Ayes: Mr. Caravati, Mr. Cox, Mr. Lynch, Ms. Richards, Mr. Schilling. Noes: None. PU BLIC HEARING/ORDINANCE : QUITCLAIM GAS EASEMENT IN DUNLORA TO VDOT Mr. O'Connell said VDOT has accepted the street and the City will quitclaim the gas easement to VDOT. The public hearing was opened, but as there were no speakers, the public hearing wa s closed. On motion by Mr. Caravati, seconded by Mr. Lynch, the ordinance entitled "AN ORDINANCE TO QUITCLAIM NATURAL GAS LINES LOCATED IN ROADWAYS IN THE DUNLORA SUBDIVISION IN ALBEMARLE COUNTY TO THE VIRGINIA DEPARTMENT OF TRANSPORTATION" was offered an d carried over to the next meeting for consideration. REPORT : GENERAL ASSEMBLY UPDATE Mr. David Blount, Legislative Liaison with the Thomas Jefferson Planning District Commission, provided an update on General Assembly action. He said it is hoped that a budget will be approved by the end of the week that will increase revenue by $1.3 billion. He said the budget should be beneficial to education. He said a cap was placed on the car tax payments to localities, and two separate tax rates will be require d, one for above $20,000 and one for below $20,000. Mr. Caravati asked if there is any hope for additional transportation funding, and Mr. Blount said he is not optimistic about that. Ms. Richards said that Charlottesville is a member of Virginia First Cities which opposed allowing localities to increase sales tax by 1/2 cent because this puts the heat on localities. She asked if administrative costs for the car tax will be reimbursed to localities, and Mr. Blount said no. Ms. Richards noted that the car tax is about the third largest state budget item. Responding to a question from Mr. Lynch, Mr. Blount said that half of the additional sales tax is to go to the general fund and half to education, but it is not specified how it will be divided. Mr. Cox said that the school budget was conservative regarding state funds, and asked if there is a mechanism for the City to recapture some of the funds provided to the schools if they get more from the state. Mr. Blount said the state funding for educatio n may be targeted for resource teachers, but could provide relief to the City since the City is paying for that now. Mr. O'Connell said the Council could discuss the matter with the School Board or could consider the amount provided to the schools. He s aid there are almost always mandates for state funding. Mr. Blount noted that several bills that the City opposed were defeated, including a cap on the BPOL tax, requiring a referendum for increases in meals tax; anti - living wage bill, and fees on solid waste and water. He said the photo red bill was defeated. He said bills approved include: authorizing the Rivanna River Basin Commission, authorizing mutual aid with utilities, and authorizing a transportation district.