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HomeMy WebLinkAboutMarch 31, 2003 Work Session 512 A budget worksession ofthe Frederick County Board of Supervisors was held on March 31, 2003, at 5:30 P.M., in the Board of Supervisors' Meeting Room, County Administration Building, 107 North Kent Street, Winchester, Virginia. PRESENT Chairman Richard C. Shickle; Vice Chairman W. Harrington Smith, Jr.; Robert M. Sager; Margaret B. Douglas; Sidney A. Reyes; Gina A. Forrester; and Lynda J. Tyler. FINANCE COMMITTEE Richie Wilkins. STAFF Administrator John R. Riley, Jr.; Assistant Kris C. Tierney; Deputy Clerk Carol T. Bayliss; Finance Director Cheryl Shiffler; and Budget Analyst Jennifer Place. Administrator Riley advised Board members where we are with the budget and that a final decision and vote will be taken at the Board meeting on April 9. He further explained that the budget has been advertised at 18 cents with an actual increase of 15 cents once proffers, incentives and contingencies are considered. Supervisor Forrester addressed the request of $29,000 by Commissioner of the Revenue Murphy for an additional staff person whom she is calling a data collector. Supervisor Forrester feels this position will be bringing in revenue to the County, therefore, making this a wash. Remaining Board members appeared to agree with Supervisor Forrester's position on this request. Administrator Riley advised the Capital Request of the Public Safety Communications Department in the amount of$56,700 has been added back into the budget. Supervisor Forrester asked if any additional funding would be available in the area of proffers. Supervisor Sager addressed the additional positions in Fire and Rescue, and the reduction of vehicles in the Sheriffs Department. He asked when the next reassessment was scheduled? Administrator Riley advised next year. Supervisor Forrester referred to pages five and six, bottom half, she feels travel is high. She would hope the Board would look at this closely. She further addressed the area of Operating Contingency. Chairman Shickle asked Board members to look at the vanous scenanos and gIve Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03 513 Administrator Riley some guidance as to their thoughts. Supervisor Tyler advised she has a preference toward the schools and is most comfortable with the 18 cents and would therefore favor Scenario #4. Chairman Shickle advised he favored Scenario #3. Supervisor Sager asked about the trailers belonging to the schools, how many and the cost involved in the moving of these trailers. Superintendent Bill Dean advised it cost $175,000 to move these trailers. Supervisor Forrester advised she would pass for now on her Scenario choice. Supervisor Smith selected Scenario #3. Supervisor Douglas selected Scenario #3. Supervisor Reyes selected Scenario #2 advising that he did not feel the figures submitted by the schools for this year would be coming in for a lesser amount next year. Administrator Riley spoke on behalf of county employees. He advised the Board that all county offices had reduced their budgets as instructed by the Board at the beginning of the budget process. He feels the employees did as they were asked to do, and if the School Board is going to be given a 2.5 COLA increase, then he feels county employees should receive the same. Supervisor Douglas advised that she feels travel and dues are there for a reason, and feels they should be allowed to remain. Supervisor Reyes advised in selecting Scenario #2 he takes his hat offto Administrator Riley as he feels he has to do what he feels is right, given many situations. He further stated that he knows travel, dues etc. can be cut some, and he knows that may hurt, but there are times when these types of choices have to be made. He knows too, that this scenario does not fully fund the opening of Millbrook High School. Finance Director Shiffler advised the current Fund Balance is $13.2 million. Supervisor Smith advised he could go with 15 cents. Supervisor Sager advised he is looking at 12 cents. Supervisor Forrester advised she is going with 12 cents, but does not feel good about this. She further advised that she feels there are some areas that can still be cut. She realizes this is a tough year. She does feel county employees should be treated the same as school employees. Supervisor Sager addressed the area of County contributions. He asked, given the figure for Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03 514 these contributions, ifthere is any way this could be reduced? After he reviewed the budget further, due to the shortfall, he felt perhaps this was a possibility. Director Shiffler advised that many of these are broken down into quarterly payments of $10,000 as they cannot wait for the full amount once ayear. Chairman Shickle asked if some of these contributions are commitments on the part of the county? Administrator Riley replied yes. Administrator Riley advised Supervisor Forrester that he would take another look at the figures and determine if any additional cuts could be made. He did want everyone to understand that in saying what he said earlier about a possible increase for county employees, he was just looking to give them the credit they deserve. Supervisor Sager asked if through the veto process there is any possibility that additional funds might be coming from Richmond? Administrator Riley said no. The six scenarios are included for the record. SCENARIO 1 10 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Revenue Shortfall carryover 3,100,000 4.500.000 1,400,000 Local Funding for Millbrook Local increase in School Debt Additional Firefighters Adjusted Projected Revenue Shortfall 3,700,000 (1) 936,000 275.000 6.311.000 Funding: 10 cent real estate tax increase Fund balance funding ( windfall) Fund balance funding 3,750,000 1,875,000 686.000 6.311.000 Notes: General Fund budgeted at present level as directed by BOS. All revenue growth applied to FY 03 deficit funding. Includes increase in local funding of School Debt of $936,000. Includes funding for new firefighters approved by BOS lan, 2003. (1) Funding level for Millbrook High at $3,700,000, not the requested amount of$5,427,642. Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31103 515 (1) Non-restricted state and federal additional funds of$1.7 million could be applied to opening Costs of Millbrook High. This would require other school operating costs to be maintained at present level. Does not fund increase in School Operating costs requested by the School Board. School funding includes: School Operating: SCENARIO 2 12 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Revenue Shortfall carryover Local Funding for Millbrook Local increase in School Debt Additional Firefighters Funding: 12 cent real estate tax increase Fund balance funding ( tax windfall) NOTES: 3,700,000 Local Operating 2.747,477 Additional State/Federal Funds 6,447,4 77 Represents 7.8% School Operating Increase 3,100,000 4.500.000 1,400,000 4,139,000 (I) 936,000 275.000 6.750.000 4,500,000 2.250.000 6.750.000 General Fund budgeted at Present level as directed by BaS. All revenue growth applied to FY 03 deficit funding. Includes increase in local funding of School Debt of $936,000. Includes funding for new firefighters approved by BaS Jan., 2003. (1) Funding level for Millbrook High at $4,139,000, not the requested amount of$5,427,642. (I) Non-restricted state and federal additional funds of $1. 7 million could be shared between costs associated with Millbrook High and increased school operating costs for the school system. Does not fund increase in school operating costs requested by School Board. School funding includes: School Operating: SCENARIO 3 15 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03 4,139,000 Local Operating 2.747,477 Additional State/Federal Funds 6,886,4 77 Represents 7.8% School Operating Increase 3, I 00,000 4.500.000 516 Revenue Shortfall carryover Local Funding for Millbrook Local Increase in School Debt Additional Firefighters Increase in School Operating Funding Funding: 15 cent real estate tax increase Fund Balance Funding ( windfall) Notes: 1,400,000 5,427,642 (1) 936,000 275,000 398.858 8.437.500 5,625,000 2,812.500 8.437.500 General Fund budgeted at Present level as directed by the BOS. All revenue growth applied to FY 03 deficit funding. Includes increase in local funding of School Debt of $936,000. Includes funding for new firefighters approved by BOS Jan., 2003. (1) Includes full funding requested in the amount of $5,427,642 to open Millbrook High. Non-restricted state and federal additional funds of$1.7 million could be used to fund increased school operating cost (other than Millbrook and debt), in addition to the $398,858 provided by the county. School funding includes: School Operating: SCENARIO 4 18 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Revenue Shortfall carryover Local Funding for Millbrook Local increase in School Debt Additional Firefighters Increase in School Operating funding Funding: 18 cent real estate tax increase Fund Balance ( windfall) Notes: 5,826,000 Local Operating 2.747.477 Additional StateIFederal Funds 8,573,977 Represents 10.3% School Operating Increase 3,100,000 4.500,000 1,400,000 5,427,642 (1) 936,000 275,000 2.086.358 (2) 10.125.000 6,750,000 3.375.000 10.125.000 General Fund budgeted at Present level as directed by the BOS. Minute Book Number 28 Board of Supervisors Budget W orksession of 03/31/03 517 All revenue growth applied to FY 03 deficit funding. Includes increase in local funding of School Debt of $936,000. Includes funding for new firefighters approved by BOS Jan., 2003. (1) Includes full funding requested in the amount of $5,424,642 to open Millbrook High. (2) Non-restricted state and federal additional funds of$l. 7 million could be used to fund increased school operating costs (other than Millbrook and debt), in addition to nearly full funding requested by locality for increased school operating costs in excess of$2 million. School funding includes: School Operating: 7,514,000 Local Operating 2.747,477 Additional State/Federal Funds 10,261,477 Represents 12.4% School Operating Increase SCENARIO 5 As Requested by Supervisor Forrester 7 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Revenue Shortfall Carryover 3,100,000 4,500,000 1,400,000 Local Funding for Increase School Operating Costs Local Increase in School Debt Additional Firefighters Data Collector - Commissioner of Revenue 3,700,000 936,000 275,000 29.000 6.340,000 Funding: 7 cent tax increase Fund balance funding (tax windfall) Fund balance funding (non-tax windfall) Proffer allocation - Schools Proffer allocation - Parks Additional Assessment Revenue Reduction in EDC Incentive Funds 2,625,000 1,312,500 1,657,500 507,000 59,000 29,000 150,000 6.340.000 Notes: Funding from unreserved fund balance equals $2,970,000. Funding from proffered funds equals $566,000. Additional position in Commissioner of Revenue's Office offset by additional budgeted revenue. Includes increase in local funding of school debt of $936,000. Local funding increase to schools of $3,700,000 includes proffer funds of$507,000 to be allocated to School Capital Fund. Non-restricted state and federal funds for $1.7 million would be used for increased operating costs or to assist in opening Millbrook. Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03 518 School funding (not including debt service) includes: Total local school operating increase School proffers transferred Additional State and Federal Funds (Represents 7.1 to 7.8 percent increase in school funding) SCENARIO 6 As Reauested by Supervisor Forrester 7 Cent Real Estate Tax Increase General Fund Revenue Growth FY 03 Budgeted Revenue Shortfall Revenue Shortfall Carryover Local Funding for Increase School Operating Costs Local Increase in School Debt Additional Firefighters Data Collector - Commissioner of Revenue Funding: 7 cent tax increase Fund balance funding (tax windfall) Fund balance funding (non-tax windfall) Proffer allocation - Schools Proffer allocation - Parks Additional Assessment Revenue General Fund Reductions: EDC Incentive Funds Cuts in Contributions to outside agencies Cuts in Books and Subscriptions Cuts in Memberships / Dues Cuts in Travel Cuts in Professional Services Notes: Funding from unreserved fund balance equals $2,595,000. Funding from proffered funds equals $566,000. 3,193,000 507,000 2.747,477 6,447,477 3, I 00,000 4.500.000 1,400,000 3,700,000 936,000 275,000 29.000 6.340.000 2,625,000 1,312,500 1,282,500 507,000 59,000 29,000 150,000 25,000 25,000 25,000 100,000 200,000 6.340,000 Additional position in Commissioner of Revenue's Office offset by additional budgeted revenue. Includes increase in local funding of school debt of$936,000. Local funding increase to schools of$3,700,000 includes proffer funds of$507,000 to be allocated to School Capital Fund. Non-restricted state and federal funds for $1.7 million would be used for increased operating costs or to assist in opening Millbrook. School funding (not including debt service) includes: Total local school operating increase School proffers transferred Additional State and Federal Funds Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03 3,193,000 507,000 2,747.477 6,447,477 519 (Represents 7.1 to 7.8 percent increase in school funding) THERE BEING NO FURTHER BUSINESS TO COME BEFORE THIS BOARD, THIS MEETING IS HEREBY ADJOURNED. (TIME: 6:30 P.M.) ~Q.~ Richard C. Shickle Chairman, Board of Supervisors ~ Jo . Riley, J . Clerk, Board 0 Supervisors Minutes Prepared By: d~~ ~ ~ Carol T. BaYliS~ Deputy Clerk, Board of Supervisors Minute Book Number 28 Board of Supervisors Budget Worksession of 03/31/03