HomeMy WebLinkAboutDecember 17 2008 Work Session168
A Worksession of the Frederick County Board of Supervisors was held on Wednesday,
December 17, 2008, at 9:00 A.M., in the First Floor Conference Room, County Administration
Building, 107 North Kent Street, Winchester, Virginia.
PRESENT
Chairman Richard C. Shickle; Vice-Chairman Gene E. Fisher; Charles S. Dellaven, Jr.;
Gary W. Dove; Bill M. Ewing; Philip A. Lemieux, and Gary A. Lofton
OTHERS PRESENT
John R. Riley, Jr., County Administrator; Kris C. Tierney, Assistant County
Administrator; Jay F,. 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 Richie Wilkins, III; Stephen Swiger; and Ron Hottle; Patricia Taylor, Superintendent
of Schools; Al Orndorff, Assistant Superintendent for Administration; Dr. John Lamanna,
Chairman of the Frederick County School Board; Ben Waterman, Frederick County School
Board; and Lisa Fryc, Executive Director of Finance for Frederick County Public Schools.
CALL TO ORDER
Chairman Shickle called the meeting to order.
Administrator Riley advised that staff had prepared a list of proposed non-school budget
reductions to make up the County's $1.68 million share of the $4 million budget shortfall for the
current fiscal year. He went on to say cuts of this significance would impact both citizens and
employees of Frederick County. He noted the proposed cuts in the current fiscal year would
eliminate a minimum of four positions; however, additional cuts would result in a reduction of
additional personnel. The proposed cuts were as follows:
Awards Banquet (remaining funds) 5,000
Reduce Transportation funding (does not include carry forward) 100,000
Eliminate Fire & Rescue VIP program 93,120
Eliminate Fire & Rescue vaccination program 7,500
Reduce Fire & Rescue Company capital contribution (50% reduction) 50,000
Reductions in inspections, Engineering and Refuse (includes positions) S 19,739
Reduce Gypsy Moth Spraying 100,000
Cancel remaining budgeted travel 110,000
Eliminate position of Revenue Recovery Specialist 48,000
Eliminate employee Education assistance (funds remaining) 40,000
Fuel commuting costs (eliminate commuting in county vehicles) 20,000
Eliminate Public Safety Operations Supervisor 45,000
Eliminate Public Safety Radio Technician 50,000
Reduce repairs and maintenance (buildings and grounds) 100,000
Eliminate Planning'fechnician 40,000
Reduce office expenses -Planning Department 15,000
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
69
Reductions in EDC (professional fees /office )
Freeze all Salaries
Reductions in Sheriffs Dept. operating budget
Reduce Jail Operating funding
Eliminate Fire and Rescue Deputy Chief
18,500
97,435
80,000
50,945
100,000
Total $1,690,239
He noted the positions listed in the proposed cuts were currently vacant. Administrator Riley
then reviewed a memo which was distributed to staff listing initiatives to be implemented in FY
2010, if necessary. The proposed strategy included:
- Hiring Freeze -Employees who leave employment (voluntarily or not) will not be
replaced. Current employees may move into other positions, but there would be no
backfilling.
- Wage Freeze - As of December 10, 2008, all salaries were frozen, including
incentives, promotions, reorganization, etc.
- All overnight travel is canceled. Travel to Richmond during budget season to meet
with state officials concerning funding will be reviewed and considered an exception.
- Only critical Sheriff's and Fire and Rescue vehicles will be available for employee
commuting.
- All tuition assistance is postponed until further notice. If an employee is currently
taking a class then reimbursement will be made. If classes arc scheduled but have not
started then cancellation should be made if the employee expects reimbursement.
- HR will be contacting employees who are eligible to retire under the Virginia
Retirement System, but have less than 20 years of service with the county, to discuss
possible retirement incentives.
Administrator Riley went on to say he would be seeking suggestions from employees regarding
possible cost cutting measures. He advised that the above efforts would assist in reducing the
current year's deficit, but was unlikely to offset the FY 2010 deficit. Depending on the extent of
cuts needed, the following options would also be considered:
- Postpone Awards Banquet.
- Eliminate Gypsy Moth Spraying.
- Reduce contributions to outside agencies.
- Reduce contributions to Fire and Rescue companies.
- Overtime calculations in compliance with FLSA requirements.
- Eliminate employer paying employee's 5% contribution to VRS.
- Reducing work hours and pay.
- Reduce salaries.
- Mandatory staff reductions.
He concluded by saying with cuts of this magnitude service levels would be reduced.
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
1701
Chairman Shickle stated he would like to see an explanation of the proposed cuts shown
by department and object code. He also wanted to see a list of issues discussed but discarded.
Superintendent Taylor reviewed the school's proposed budget reductions for FY 2009.
She noted that over half of the school's personnel were licensed or contract employees instead of
at will employees, which affected the school board's ability to address reductions in personnel in
mid-year. The potential items for reduction were:
- Remaining FY 2008 funds returned to the County's general fund $633,420
Superintendent Taylor requested the Board approve the use of this money as part of the proposed
cuts.
- Projected surplus in vehicle fuel expenditures $350,000
- Hiring freeze for selected vacancies $282,183
- Projected NRF.P credit in current year $118,441
- Maintenance Projects (boiler replacement) $169,199
- Reduce school allocations $256,923
This proposal represented a 30% cut.
- Restrict overtime and substitute expenditures $174,277
- Reduce intervention and remediation services $335,557
Superintendent Taylor noted the reduction in intervention and remediation services affects
accreditation. She noted this list of proposed cuts touches all areas of the school system.
She went on to request if local funding to the school division be reduced in FY 2009 then any
remaining funds that may be generated in the school operating fund by the end of the fiscal year
be approved for transfer to the school capital project fund to address capital needs in FY 2010.
Chairman Shickle stated he would like to see these cuts listed by department and object
code as well. He went on to say he would like to see from both the County and the Schools
which of these cuts were one time and which ones were sustainable.
Superintendent Taylor stated she would like to get a consensus from the Board if the
proposed cuts would suffice.
Chairman Shickle stated he would try to get a consensus on the $633,420 which was
remaining FY 2008 funds returned to the General Fund.
Supervisor Lwing stated he would have a problem with utilising the FY 2008 funds as
part of the FY 2009 cuts.
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
171
Administrator Riley stated if the funds were kept in the operating budget they could be
looked at; however, these have already been returned to fund balance.
Finance Director Shiffler stated this was not truly a cut as she would have to reduce fund
balance if they were allowed to be utilized.
Vice-Chairman Fisher stated he could support the request knowing it was not an end all
for next year.
Treasurer Orndoff stated he would not recommend the funds be used as acarry-forward
or credit toward the School's $2.3 million cut. IIe went on to say those funds either need to
come from the County side or the School's side.
Superintendent Taylor reviewed the outlook for FY 2010. She advised the upcoming
year would be more challenging as they were looking at a $10-$16 million short fall next year.
She stated both bodies should be prepared for citizen comments due to the magnitude of the cuts
on both the County and School sides. In light of this possibility, the school board would be
considering the following options:
- Elimination or reduction of instructional programs;
- Elimination or reduction ofafter-school programs;
- Elimination or reduction of support programs;
- Reduction of workforce -loss of jobs;
- Salary reduction freeze;
- Longer bus rides;
- Reduced functionality of technology;
- Delayed opening of new school or closing of existing school(s).
She went on to say if the School Board tried to address a $16 million shortfall through personnel
only it would require the elimination of 300 teaching positions; however, if they were to look at
reducing support staff it would require even more positions. Superintendent Taylor stated such
reductions would result in major changes to the way the school system functions.
Chairman Shickle stated he did not know the answers to solving these problems, but he
was pleased both bodies could work together to find. them. He went on to say that the system for
funding education in Virginia is broken and needs to be fixed.
Dr. Lamanna advised that the School Board began working on the FY 201.0 budget after
the last Board of Supervisors and Finance Committee meeting. He stated the School Board
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
172
looked at what they could do to plan for next year and being allowed to count the $633,000 in
FY 2008 savings as a cut for FY 2009 buys them time. He said the School Board needed to have
the ability to focus on next year in order to plan rationally.
Chairman Shickle sought a consensus from the Board and Finance Committee as to the
use of the $633,000.
Supervisor Lofton stated the schools are under mandates they have to address; therefore,
he would support allowing them to count the $633,000 towards the FY 2009 cuts.
Supervisvr Dove stated he did not have comment on way or the other, as he was in the
middle on this issue.
Vice-Chairman Fisher supported allowing the $663,000 to count towards the FY 2009
cuts. He also noted the cooperation had been good.
Supervisor Lemieux stated he was in the middle right now.
Supervisor DeHaven stated he had grave concern about compounding the issue, but he
would support the use of the $633,000.
Finance Committee member Richie Wilkins stated there was a need to encourage savings
this year for next year.
Treasurer Orndoff stated the $633,000 should not be included in the cuts.
Commissioner Murphy stated she did not see the $633,000 as a cut.
Finance Committee member Stephen Swiger stated he did not see the $633,000 as a cut.
Finance Committee member Ron Hottle supported using the $633,000.
Chairman Shickle stated there was great sympathy for the school board, but he did not
see this as a dead issue.
Superintendent Taylor stated she hoped the Board would reconsider its position on
categorical funding, because in order to get through this time the schools would have to be able
to move "on a dime".
Chairman Shickle stated categorical funding does not get the job done. He went on to
say he only wanted some confidence that the budget that was sold was actually what was funded.
He concluded by saying he wanted a system to communicate any budget changes.
Supervisor Ewing stated he could consider giving up categorical funding.
Supervisor Lemieux agreed with Supervisor Ewing based on the current relationship and
the times. He concluded by saying "we" should allow the school board to do what it needs to do.
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
173
Vice-Chairman Fisher agreed.
Chairman Shickle then stated he wanted to get input on areas of local government that
have not been looked at.
Supervisor DeHaven preferred to look harder and dig deeper into issues of crucial but not
essential services (e.g. solid waste management and outside agencies).
Supervisor Dove stated there were two important things government provides, public
safety and schools, but everything else should be looked at very hard.
Treasurer Orndoff stated he had been around for 20 years and he felt the County would
be challenged in this environment. He suggested looking at ear marks on the local level. He
went on to say there was a need for open dialogue on how to proceed in the future. He said we
might have to cut certain programs and look at implementing fees to increase revenue.
There being no further business, the worksession adjourned at 10:00 A.M.
Richard C. Shickle oh .Riley, r.
Chairman, Board of Supervisors ~ erk, Board of Supervisors
Minutes Prepared By: ~ ~~,,_,Q
Jay E. Ti s
Deputy Clerk, Board of Supervisors
Minute Book Number 34
Board of Supervisors Budget Worksession of 12/17/08
74