HomeMy WebLinkAboutNovember 19 2008 Budget Work Session`124
A Worksession of the Frederick County Board of Supervisors was held on Wednesday,
November 19, 2008, at 9:00 A.M., in the First Floor Conference Room, County Administration
Building, County Administration Building, 107 North Kent Street, Winchester, Virginia.
PRESENT
Chairman Richard C. Shickle; Vice-Chairman Gene E. Fisher; Charles S. DeHaven, Jr.;
Gary W. Dove; Bill M. Ewing; Philip A. Lemieux, and Gary A. Lofton
OTHERS PRESENT
John R. Riley, Jr., County Administrator; Jay E. Tibbs, Deputy County Administrator;
Cheryl B. Shiffler, Finance Director; Sharon Kibler, Assistant to the Finance Director; Jennifer
Place, Budget Analyst; C. William Orndoff, Jr., Treasurer; Ellen E. Murphy, Commissioner of
the Revenue; Finance Committee members Stephen Swiger; and Ron Hottle; Al Orndorff,
Assistant Superintendent for Administration; Peter Vernimb, Assistant Superintendent for
Education; Dr. John Lamanna, Chairman of the Frederick County School Board; Ben Waterman,
Frederick County School Board; and Lisa Frye, Executive Director of Finance for Frederick
County Public Schools.
CALL TO ORDER
Chairman Shickle called the Worksession to order. He then turned the meeting over to
Administrator Riley.
Administrator Riley advised the County was projecting a $4 million revenue shortfall for
the current fiscal year (FY 2009). He then reviewed four scenarios for dealing with the projected
shortfall:
- Scenario A -represented doing nothing and absorbing the entire revenue shortfall
from unreserved fund balance.
- Scenario B -represented implementing spending cuts to the general fund and schools
proportionately to offset the revenue shortfall. Under this scenario non-school cuts
would equal $1.68 million and school cuts would equal $2.32 million.
- Scenario C - represented a combination of spending cuts and a windfall from a
calendar year 8 cent real estate tax rate increase. Under this scenario non-school cuts
would equal $420,000 and school cuts would equal $580,000.
- Scenario D - represented a combination of spending cuts, a windfall from a calendar
year 12 cent real estate tax rate increase and a reduction in funding from unreserved
Minute Book Number 34
Board of Supervisors Budget Worksession of 11/19/08
125
fund balance. Under this scenario non-school cuts would equal $210,000 and school
cuts would equal $290,000. Funding from fund balance would be reduced by $1
million.
Chairman Shickle stated the proposed tax increases of 8-cents and 12-cents were not
likely. He asked Administrator Riley if he had a plan.
Administrator Riley advised that staff was researching how to achieve the goal. He noted
there was a need to make up the revenue shortfall now instead of at year end. He went on to say
that he would like to meet with the Board again in December with a plan for implementation.
Treasurer Orndoff advised that tax collections were ahead of schedule versus the same
time last year (i.e. about 95%). He noted that December mail was coming in slow, but he
anticipated an increase on the real and personal property side.
Supervisor Ewing stated the County needed to look at freezing spending, possibly "where
it hurts".
Chairman Shickle stated that if this has to be done next year, the sooner the plan starts the
better.
Supervisor Dove stated he did not see how the County could have a budget larger than
the revenue being received.
Administrator Riley advised that staff would begin building next year's budget based on
where we start now.
Vice-Chairman Fisher stated he would like to see where Scenario B "lands us".
Finance Director Shiffler stated if cuts need to be made they should be done in January
instead of April.
Mr. Swiger stated he would like to see the County look at making up the $4 million as a
minimum, but wants to see what the best is we can do.
Administrator Riley advised that we still have 73,000 people in the County that need
services and enrollment in the school system continues to grow, but not as projected.
Chairman Shickle stated that government tends to spend what it has.
Mr. Swiger stated that we need to look at how that service is delivered.
Chairman Shickle stated if there was not attempt to get more revenue then positions
would have to be eliminated and the schools would receive less money than last year.
Minute Book Number 34
Board of Supervisors Budget Worksession of 11/19/08
126
Administrator Riley stated that based upon the Board's direction staff would be looking
at creating a budget from Scenario A in FY 2010, which assumes a revenue shortfall from sales
tax, recordation taxes, and business license tax that occurred in prior years will be eliminated.
Present level funding will result in a decrease in operations due to increases in debt service,
inflation, and FY 09 supplemental appropriations.
Chairman Shickle polled the Board regarding their thoughts on a flat tax rate or a revenue
neutral tax rate.
Supervisor Dove stated he would prefer a revenue neutral rate. IIe went on to say he
could not agree to a tax increase in these economic times.
Supervisor Ewing stated he would prefer a revenue neutral rate.
Vice-Chairman Fisher stated this year he did not have a problem holding the tax rate this
year, but next time he would prefer a revenue neutral rate.
Chairman Shickle stated he was thinking about a level tax rate.
Supervisor DeHaven stated he supported a level rate.
Supervisor Lemieux stated he supported a level rate.
Supervisor Lofton supported a revenue neutral rate.
Finance Committee members Swiger and Hottle supported a level rate.
Administrator Riley advised the next budget worksession would be held on Wednesday,
December 17, 2008 immediately following the Finance Committee meeting.
There being no further business, the worksession was adjourned at 9:45 A.M.
Q...--~
Richard C. Shickle J 'ley, r.
Chairman, Board of Supervisors Clerk, Board of Supervisors
--1 ~
Minutes Prepared By: ~ `-'1~~~'
Jay E. Ti s
Deputy Clerk, Board of Supervisors
Minute Book Number 34
Board of Supervisors Budget Worksession of 11/19/08