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HomeMy WebLinkAboutFebruary 21, 2007 Work Session 293 A Worksession of the Frederick County Board of Supervisors was held on Wednesday, February 21, 2007, at 9:00 A.M., in the Board of Supervisors' Meeting Room, County Administration Building, 107 North Kent Street, Winchester, Virginia. PRESENT Chairman Richard C. Shickle; Charlcs S. DeHaven, Jr.; Gary W. Dove; Bill M. Ewing; Philip A. Lemieux; and Barbara E. Van Osten. ABSENT Vice-Chairman Gene E. Fisher. OTHERS PRESENT John R. Riley, Jr., County Administrator; Cheryl B. Shiffler, Finance Director; Jennifer Place; Budget Analyst; Sharon Kibler, Assistant to the Financc Director; Jay E. Tibbs, Deputy County Administrator; Ellen Murphy, Commissioner of the Revenue; C. William Orndoff, Jr., Treasurer; Finance Committee members Richie Wilkins, and Ron Hottle; Patricia Taylor, Superintendent of Schools; Al Orndorff, Superintendent of Administration; Lisa Frye, School Finance Dircctor; and School Board members John Lamanna and Rick Howctt. Administrator Riley briefly reviewed the budget and advised that the County General Fund had been rcduced by $25 million with a reduction of$5.3 million in operations. The Schools have requested $12.3 million in additional local funds. He then asked Finance Director Shiffler to review possible scenarios. Finance Director Shiffler stated that she had prepared five scenarios, two of which include a tax increase. She then revicwed each of the scenarios: (2.5 cent RE (5 cent RE Tax Incr.) Tax Incr.) Scenario A Scenario B Scenario C Scenario D Scenario E FY 08 Additional Revenue 10,176,156 10,176,156 10,176,156 10,176,156 10,176,156 FY 07 Funding from Fund Balance 5,851,964 5,851,964 5,851,964 5,851,964 5,851,964 FY 07 Additional Funds Available 4,324,192 4,324,192 4,324,192 4,324,192 4,324,192 FY 08 Proposed Tax Increase 0 0 0 1,812,500 3,625,000 Minute Book Number 32 Board of Supervisors Budget Worksession of 02/21/07 294 Proposed FY 08 Fund Balance Funding - Operating 0 5,000,000 5,000,000 5,000,000 5,000,000 Proposed FY 08 Fund Balance Funding - Capital 0 0 1,500,000 1,500,000 1,500,000 Amended FY 08 Additional Funds Available 4,324,192 9,324,192 10,824,192 12,636,692 14,449,192 Allocation of Local Funding School Operating 1,457,691 4,357,692 4,357,692 5,408,942 6,460,192 School Debt 273,685 273,685 273,685 273,685 273,685 School Capital 0 0 750,000 750,000 750,000 General Fund Operating 1,055,570 3,155,569 3,155,569 3,916,819 4,678,069 General Fund Debt 1,537,246 1,537,246 1,537,246 1,537,246 1,537,246 General Fund Capital 0 0 750,000 750,000 750,000 Chairman Shickle asked to see the tax rate needed to fully fund the proposed budgets. Commissioner Murphy asked if there was a need to keep fund balance at current level. Finance Director Shifflerresponded that not replacing the fund balance appropriated last year would put us in a hole for next year. She went on to say that the amounts in the scenarios do not include other revenue sources. Administrator Riley informed the Board that last year the schools received an additional $8 million from the State due to a sales tax error; however, this year they would receive less. Supervisor Van Osten asked if Cost of Competing funds were included in the scenarios. Administrator Riley responded no. Supervisor Dove asked for a current split between the County's and School's General Fund. Finance Director Shiffler the local split is 58% Schools and 42% County; however, if the entire budget is included then that number goes up. Administrator Riley advised that the School Debt Service has not gone up as high as in prevIOUS years. Finance Director Shiffler asked for a time line for the public hearing and stated she would like to get some direction within the next two weeks, as she would like to have the budget adopted on April 11, 2007. Minute Book Number 32 Board of Supervisors Budget Worksession of 02/21107 295 Administrator Riley stated that he would like to have everything resolved by the March 14, 2007 Board Meeting. He suggested an additional worksession on March 8, 2007 at 12:00 p.m. Supervisor Van Osten stated that she would like to see what it would take to fund the schools. Chairman Shickle stated that it would be difficult to prepare a scenario to fully fund the schools without also including the County's requests. Finance Director Shiffler stated that she would prepare additional scenarios. Administrator Riley advised the Board that they should go into the public hearing with a budget that would allow room to adjust. The School Board then presented their budget overview. School Board Chairman John Lamanna stated the request for increased local funding is due to the lack of State funding. He went on to say that the increase in local funds requested was actually less than was received last year. He concluded by saying that he understood this request for additional local money puts a burden on the County. School Finance Director Lisa Frye reviewed the ledger sheet. She stated that revenue had increased only $944,000; however, expenditures had increased by more. She explained that it would cost an additional $1,9 million to continue what the schools are currently doing. Finance Director Frye then reviewed the expenditure increases, which included a 5.5% salary increase at a cost of $5.3 million. She went on to say that they are asking for an additional $13 million above FY 2007 with $12.1 million being requested from local funds. She concluded by saying that the capital fund requests included $1.2 million for repair projects and she hoped that budget would be fully funded. Superintendent Taylor stated that she "hoped this presentation would give the Board some sense of how the scenarios impact us". She went on to say that "we are in this together and finding a solution will require patience and cooperation." Supervisor Van Osten asked if the staffing increases were due to growth in the student population. Finance Director Frye responded there were five positions associated with the new Gainesboro School and about 32 of the requested teachers were associated with an increased population. Other staffing increases were associated with changes in the Standards of Quality Minute Book Number 32 Board of Supervisors Budget Worksession of 02/21/07 29 requirements. She went on to say there were additional bus drivers, buildings and grounds, and transportation driver trainer positions associated with growth. Superintendent for Administration OrndortJadded there were also additional bus aides and mechanics. Chairman Lamanna stated that the School Board had scheduled a worksession for next Tuesday and the School Board was seeking direction. Supervisor Ewing stated that the School Board needed to start working on cutting the budget, but he could not tell them how much should be cut or where. Superintendent Taylor advised that class size ratios were mnnmg beyond state recommcndations and they are also beyond what the School Board would like to see. Chairman Shickle advised the he had received a letter from Chairman Lamanna regarding clarification of the understanding between both boards regarding unspent funds. He stated that should be scheduled for another meeting. There being no further business, the worksession was adjourned at 9:53 A.M. \ L<-.1::. (I ( ~ (, V ~ / Richard C. Shickle Chairman, Board of Supervisors Joh Cler Minutes Prepared By: l In 01 (. ~1,1i. Jay E. iilib1) Deputy Clerk, Board of Supervisors Minute Book Number 32 Board of Supervisors Budget Worksession of 02/21 /07