Loading...
HomeMy WebLinkAboutFebruary 06, 2004 Work Session 335 A Worksession of the Frederick County Board of Supervisors and Finance Committee was held on Friday, February 6, 2004, at 9:00 AM, in the First Floor Conference Room, County Administration Building, 107 North Kent Street, Winchester, Virginia. BOARD MEMBERS PRESENT Chairman Richard C. Shickle; Vice-Chairman Barbara E. Van Osten; Gary W. Dove; Bill M. Ewing, Gina A. Forrester; and Lynda J. Tyler. BOARD MEMBERS ABSENT W. Harrington Smith, Jr. FINANCE COMMITTEE MEMBERS PRESENT Richie Wilkins; Ron Hottle; and Gary A. Lofton STAFF PRESENT John R. Riley, Jr., County Administrator; Cheryl B. Shiffler, Finance Director; Jennifer Place, Budget Analyst; C. William Orndoff, Treasurer. OTHERS PRESENT Dr. William C. Dean, Superintendent of Schools. CALL TO ORDER Administrator Riley convened the meeting. He began by explaining that this was the official "kick-off' of the budget deliberation and review process and this morning the group would begin by looking at different options for funding this year's budget. Administrator Riley distributed a summary of where the County is, the status of the budget requests to date, and the choices and/or funding options available. He then reviewed the sheet with the Board and Committee. Where are we with the FY 2005 Budl!et? RECOGNIZED FACTORS: (1) Board of Supervisors does not intend on raising taxes. (2) General Fund revenue for FY 2005 is $92,154,823. This amount recognizes an increase in revenue by $4,596,581 or approximately 5%. (3) Proposed non-school related General Fund growth in expenditures before cuts by County Administrator increased by $10,010,507. (4) County Administrator recommends $6 million in cuts to the $10 million in non-school General Fund expenditure increases to reach Board of Supervisors goal of not increasing taxes. (5) The School Superintendent is expecting approximately $5,178,757 in NEW revenues for Minute Book Number 29 Board of Supervisors Budget Worksession of 02/06/04 336 operating from state and federal sources. (6) The School Superintendent is requesting an additional $9,336,449 in local funds from the Board of Supervisors for the school operating fund. (7) School debt, which is funded from the General Fund, will increase $1,765,373. (8) School Construction Fund appropriations being requested for FY 2005 are as follows: 4th Middle School - Total cost $26,600,000 needs to have a continued appropriation. 11 th Elementarv School - Total cost $10,800,000. JWMS Renovations - Total costs $11,750,000 needs to have a continued appropriation. Transportation Facilitv - Total costs $8,400,000. Stonewall Elementarv School- water and sewer connection - $250,000. What are the increases in expenditures in the current proposed budl:ets? General Fund (after proposed cuts by County Administrator. Amount does not reflect recent budget adjustment for Sheriffs department. DOES NOT reflect any increase in school funding.) $4,010,507 School Operating Fund (Increase includes $5.1 million from state and federal sources and $9.3 from locality. Increase of $14.5 million does NOT include increase in school debt service of $1.7 million. ) $14,515,206 What is the current balance of Unreserved Fund Balance and what balance should be maintained as recommended by the auditors? Umeserved fund balance is $14.9 million. The county's auditors recommend 2 months of operating costs to be maintained for positive cash flow. The current general fund operating budget is approximately $91.5 million. Two months of the current general fund budget would equal $15 million. Decisions that need to be made.... How will the Proposed FY 05 Budget be funded? * Tax Increase Fund Balance Funding - Funding with fund balance is using a one-time revenue source to fund operational costs. If reserves are used to balance the FY 05 budget, the FY 06 budget could result in greater funding challenges and the inability to maintain revenue neutrality when calculating the tax rate that is impacted by the reassessment. * Reduced services and additional cuts. * Combination of any of the above Administrator Riley went on to say that he wanted to receive feedback from the Board and Committee and schedule work sessions on how to address the FY 05 budget. He concluded by saying that he would be happy to answer any questions. Supervisor Ewing stated that if the budget was to be funded as presented, then the County would be looking at a $0.40 tax increase and he did not think the tax payers would stand for that. Minute Book Number 29 Board of Supervisors Budget W orksession of 02/06/04 337 He went on to say they need to look at cuts and reduced services to see what can be funded with the revenue available. He concluded by saying that we need to see how far we can realistically go back. Administrator Riley advised that $4 million of the increase was retirement (VRS), salaries, and supplements for the Sheriffs Department and Fire and Rescue. Supervisor Ewing asked the school board to cooperate with the County and do the same with regard to looking at cuts and reduced services. The Board and Committee were advised that $2.1 million of the school's funding was for retirement (VRS) and another $1.5 was for health insurance. Director Shiffler advised that the County had budgeted an increase of 10% for health insurance and $1 million for retirement (VRS). Administrator Riley advised the Board that they should be aware of a loss of revenue neutrality in the re-assessments if they choose to utilize a one time funding option from the reserve funds. V ice-Chairman Van Osten asked for an example of a one time expenditure. Administrator Riley advised that it could be a capital expenditure in the General Fund budget. He stated that some of these projects have been removed after giving them close consideration. Administrator Riley also advised that the County would adopt new assessment values in January 2005 and they would be received in the June 2005 tax collections. He concluded by saying that another possible cost savings could come from leasing vehicles rather than purchasing them. Supervisor Forrester asked about cost ofliving adjustments (cola) and merit salary increases. Administrator Riley responded that they were looking at 6% or roughly $1 million. These increases have been budgeted as merit. Supervisor Tyler asked ifit was anticipated that the General Assembly budget deliberations would go past the March 13th deadline. Administrator Riley responded that it could, but we are not looking for increases in state funding. He went on to say that if something goes through at the state level then the County would take advantage of it in order to help with revenues. Administrator Riley went on to say that the County has asked for increased taxing power, similar to citics; however, the General Assembly reduced the cities' powers to tax. He stated that he is looking at scheduling a work session between Minute Book Number 29 Board of Supervisors Budget W orksession of 02/06/04 338 the Superintendent, School Board, and Board of Supervisors. He concluded by saying that staff would attempt to put together scenarios with the knowledge that the Board does not want to increase taxes. Dr. Dean advised that the school's numbers are from a presentation, which was given to some ofthe Board members. He stated that those numbers have been revised and the school's are asking for $8.87 million in local funds and a total of$14.049 million. Dr. Dean advised that the budget has been presented to the School Board. He explained that the School Board must adopt their budget before it can be presented to the Board of Supervisors. Dr. Dean stated that the first discussions will be held on February 10th and they should have a better handle on the budget afterwards. The public hearing will be held on February 17th with a budget workshop to follow the hearing. He concluded by saying that he hoped to have the budget adopted within a week following the public hearing. Director Shiffler advised that the hearing notice for the County would have to be at the newspaper by the first week in March or the Board could have the public hearing at a special board meeting. Administrator stated that the Board needs to work through our budget and the School Board needs to work through theirs. He advised that he would like to set up some work sessions. Chairman Shickle asked Administrator Riley to circulate a "drop dead date" when the budget must be finalized. Mr. Wilkins asked about the funding for the fourth middle school and stated that he would like to see emollment numbers. Dr. Dean advised that those figures would be contained in the budget packet for the citizen members. Treasurer Orndoff advised Dr. Dean that he would like to see more information on how a spending plan would be put into place. He stated that he would like to see actual expenditures for FY's '01, '02, '03, the '04 budget, year-to-date expenditures, and the proposed '05 budget. He concluded by saying that this information would help the Committee see where adjustments could be made. Supervisor Forrester advised that she felt the Board needed to see possible scenarios before they could do anything. The next Finance Committee meeting was scheduled for February 18, 2004 at 10:00 a.m. in Minute Book Number 29 Board of Supervisors Budget W orksession of 02/06/04 339 the first floor conference room. Chairman Shickle advised that he would like to see attention paid to disclosures on health msurance. Administrator Riley advised that he would get the information to everyone prior to the next meeting date. Supervisor Tyler asked to see the projected revenue growth for new business expansion. Administrator Riley thanked everyone for their patience and for battling the weather to get here. THERE BEING NO FURTHER BUSINESS, THIS MEETING WAS ADJOURNED. (9:45 A.M.) ~--J2 ~---LL~ Richard C. Shickle Chairman, Board of Supervisors &,(,(- Joh . Riley, Jr. Clerk, Board of Supervisors Minutes Prepared By: ~ C '-1~L Jay E. Ti s Deputy Clerk, Board of Supervisors Minute Book Number 29 Board of Supervisors Budget W orksession of 02/06/04