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HomeMy WebLinkAboutFebruary 18, 2004 Work Session 362 A Worksession of the Frederick County Board of Supervisors and Finance Committee was held on Wednesday, February 18,2004, at 10:00 A.M., 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; W. Harrington Smith, Jr., and Lynda J. Tyler. FINANCE COMMITTEE MEMBERS PRESENT Richie Wilkins; Ron Hottle; and Gary A. Lofton. ST AFF PRESENT John R. Riley, Jr., County Administrator; Cheryl B. Shiffler, Finance Director; Jennifer Place, Budget Analyst; C. William Orndoff, Treasurer. OTHERS PRESENT William C. Dean, Superintendent; Lisa Frye, Frederick County School Board Director of Finance. Administrator Riley advised the Board that in response to comments received at the February 6, 2004 budget work session, staff had prepared several budget scenarios and he was prepared to review them for the Board. He advised that Millbrook High School had been secured for Monday, March 29,2004 for the Budget Public Hearing. Administrator Riley briefly discussed the increases in health insurance and advised that the majority of the increase comes from the proposed new positions in Fire & Rescue, the Sheriffs Department, and Commissioner of Revenue. The net increase is $100,000. Supervisor Forrester asked if a memo could be circulated to the employees letting them know the County's cost for all benefits. This will be given further consideration. Administrator Riley advised that the School Board was ready to meet with the Board of Supervisors to present their budget. The following dates and times were suggested: 1. Wednesday, February 25,2004 at 5:30 p.m. 2. Thursday, February 26,2004 at 5:00 p.m. Superintendent Dean advised that he would talk to the School Board about the possible dates. Minute Book Number 29 Board of Supervisors Budget Worksession of 02/18/04 363 Administrator Riley reviewed possible budget scenarios with the Board and Finance Committee: Scenario A: All requests are fully funded. - $10,010,507 increase in non-school General Fund. - $14,515,208 increase in School Operating (local only) - $1,700,000 in School Debt. Funding Options: 1. $0.50 (68%) Real Estate tax increase would generate approximately $20,000,000. 2. Fund Balance Funding of$4,721,629 with a $0.39 (52%) Real Estate Tax Rate Increase. Scenario B: General Fund (non-school) requests have been reduced by approximately 60% (from $10 million to $4 million). School funding requests are fully funded. - $4,010,507 increase in non-school General Fund. - $14,515,208 increase in School Operating (local only). - $1,700,000 in School Debt. Funding Options: 1 $0.35 (48%) Real Estate tax increase would generate approximately $14,000,000. 2. Fund Balance Funding of$5,121,669 with a $0.22 (30%) Real Estate Tax Rate Increase. Scenario C: Recognizes additional school revenue from federal and local sources towards total percentage of expenditure increases. Maintains an average 11 % increase in expenditures. School operating and debt are both school expenditures when calculating percentage. $4,010,507 increase in non-school General Fund. - $8,309,395 increase in School Operating (local only). - $1,700,000 in School Debt. Funding Options: 1 Fund Balance Funding of$2,115,858 with a $0.14 (19%) Real Estate Tax Rate Increase. 2. Fund Balance Funding of$4,915,858 with a $0.07 (10%) Real Estate Tax Rate Increase. 3. Full Fund Balance Funding of$7,715,858. This option will result in financial challenges when balancing the FY 06 budget and opening a new middle school. Probability ofa full rate roll back during assessment is limited. Scenario D: After approximately 11 % increase had been allocated to school and non-school categories, the allocation is reduced by 25%, with the exception of debt service. - $3,007,880 increase in non-school General Fund. - $6,232,047 increase in School Operating (local only). - $1,700,000 in School Debt. Funding Options: 1. Fund Balance Funding of$l ,247,123 with at $0.12 (16%) Real Estate Tax Rate Increase. 2. Full Fund Balance Funding of$6,047,123 Administrator Riley advised that iffund balance funding was utilized then there did not need to be any supplemental appropriations next year. Minute Book Number 29 Board of Supervisors Budget Worksession of 02/18/04 364 Supervisor Forrester reviewed salary increase figures for Frederick County employees and state employees. She advised that the County has done a good job of preserving the employees' salaries, but she did not see how the Board could support a 6% increase this year. She stated that she would like to see the Board reduce that number and make it clear to the employees that they have a good benefits package. Administrator Riley advised that he supported Supervisor Forrester's comments, but felt it was a matter of priorities and if the State did not value its work force then they need to check their priorities. He went on to say that 85% of a budget is work force. He concluded by saying that he thought the employees were appreciative of the Board's support. Supervisor Ewing stated that he thought it would be helpful for the Committee to pick one scenario as a base and then create a detailed explanation ofthe budget and he would like to start with option D because it is easier to start low and work up rather than start high and work down. Administrator Riley advised that most ofthe cuts had been detailed in the original submittal, but he could add to that list if the Board selected option D (2) as a starting point. Vice-Chairman Van Osten advised that she would like to see option 2 under scenario C, because she felt the Board needed to look at the budget in the context of what they have to do and therefore she did not think scenario D was realistic. Treasurer Orndoff advised that he would like to again make the request, from the last meeting, to Dr. Dean regarding his need to see actuals, budget to date, and past year's figures. Director Frye advised that those figures have been provided and all that was missing from the information was the detailed line item from FY 05. Chairman Shickle stated that the indicators the County is receiving from the State are to shave revenue. There seem to be limits on our ability to tax and all of this points to a downsizing oflocal government by force. He felt the taxpayers of Frederick County deserve no tax increase this year; however, he did not see any alternative until there was movement on the State and Federal levels. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THIS BOARD THIS MEETING IS HEREBY ADJOURNED. (TIME 11:32 A.M.). Minute Book Number 29 Board of Supervisors Budget W orksession of 02/18/04 365 ("2 Q......J) ~J~ Richard C. Shickle Chairman, Board of Supervisors Jo~/- Cler , Board of Supervisors Minutes Prepared By: (}. . , c '-{ tJ . ~ J~s Deputy Clerk, Board of Supervisors Minute Book Number 29 Board of Supervisors Budget W orksession of 02/18/04