February 18 2009 Budget Work Session245
A Worksession of the Frederick County Board of Supervisors was held on Wednesday.
February 18, 2009, at 8:10 A.M., in the First Floor Conference Room, County Administration
Building, 107 North Kent Street, Winchester, Virginia.
PRESENT
Chairman Richard C. Shickle; Vice - Chairman Bill M. Ewing; Charles S. DeHaven, Jr.;
Gary W. Dove; Gene E. Fisher; Philip A. Lemieux, and Gary A. Lofton.
OTHERS PRESENT
John R. Riley, Jr., County Administrator; Kris C. Tierney, Assistant 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 Richie Wilkins, III and Ron Hottle; Patricia Taylor, Superintendent of Schools; Al
Orndorff, Assistant Superintendent for Administration; School Board member Ben Waterman;
and Lisa Frye, Executive Director of Finance for Frederick County Public Schools,
CALL TO ORDER
Chairman Shickle called the meeting to order. He then turned the meeting over to
Administrator Riley.
Administrator Riley reviewed a memo which updated the Board on the FY 2010 Budget
and proposed general fund cuts, which include 15% reductions to the operating budgets of
county departments and 15% reduction to outside agencies. The remaining $1.5 million in
needed reductions will be achieved through a reduction in workforce, savings in health care
benefits, reduced overtime costs, and reductions in salaries. Administrator Riley noted the
current hiring freeze has allowed 44 positions to be vacated. He went on to say, due to the daily
changing funding levels, staff requests the budget resolution be approved by fund and not
category in order to allow greater flexibility to address the budget crisis. Administrator Riley
informed the Board of one particular issue he would like them to address /consider relative to
personal property tax. He then asked the Commissioner of the Revenue to provide an update to
the Board.
Commissioner Murphy informed the Board vehicle sales are down along with the book
values of existing vehicles. She went on to say she and her staff were in the process of
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Board of Supervisors Budget Worksession of 02/18/09
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compiling the necessary data in order to provide better numbers; however, she estimated we
would be facing a $2 million revenue short fall from personal property tax.
Finance Director Shiffler advised the decreased personal property revenue figures are not
included in the $4 million short-fall referenced in the memo.
Administrator Riley asked the Board if they would be willing to consider raising the
personal property tax rate to a revenue neutral rate in order to off -set the loss of revenue. He
went on to say that as values improve the rate would be adjusted downward. Based on current
values, it would take a $0.25 increase to reach a revenue neutral rate.
Chairman Shickle asked the Board for their thoughts on this request.
Supervisor Dove stated he needed to further digest this information and he would like to
know the exact amount of the short-fall before committing.
Vice - Chairman Ewing agreed with Supervisor Dove. He went on to say he needed more
facts before he could make a decision.
Supervisor Fisher stated he was not surprised given the information that came out at the
last meeting. He then asked the Treasurer about the delinquency rate.
Treasurer Orndoff advised the personal property delinquency rate was 3.25 %, which was
slightly higher than last year. The real estate delinquency rate was at 1.98 %. He went on to say
he felt comfortable with those figures.
The Board agreed to hold another worksession on Wednesday, February 25, 2009 at
6:00 p.m., prior to their Regular Meeting.
Treasurer Orndoff stated if the Board is inclined to consider the revenue neutral personal
property tax rate they might want to revisit the real estate tax rate. He also suggested the Board
might want to revisit outside agency contributions, as well.
Chairman Shickle stated the Board needs to know about the 44 positions which are
vacated and the reduced contributions to outside agencies. He urged staff to provide more
detailed information than usual.
Supervisor Dove reviewed the budget shortfall amounts for the county and the schools. It
was determined that it would take a $0.20 plus tax increase to off -set the entire short fall. He
went on to say that he did not want to continue cutting the schools, etc.
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Finance Director Shiffler advised she could provide the Board with information on the
vacant positions and the impact of the operating cuts. She went on to say she was still working
with the public safety departments regarding overtime and holiday pay issues.
Chairman Shickle stated he would like to know about proposed salary reductions in
comparison to what the school board announced.
Supervisor Fisher stated he would like to know about the positions in Social Services that
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would be vacated due to retirement and the amount of federal and state money used to fund
same.
Supervisor DeHaven asked if it was possible to revisit the issue of the flat tax rate versus
flat revenue.
Chairman Shickle stated if someone from the majority side wanted to revisit the issue
then it could be revisited.
Supervisor Lemieux stated, at this point, he believes everything is on the table.
Administrator Riley advised the Board needs to meet next Wednesday in order to "set the
course."
There being no further business, the worksession was adjourned at 8:48 A.M.
� � n 4
Richard C. Shickle Johtt R. Riley, Jr.
Chairman, Board of Supervisors Clerk, Board of Supervisors
Minutes Prepared By:
Jay E. Ti bs
Deputy Clerk, Board of Supervisors
Minute Book Number 34
Board of Supervisors Budget Worksession of 02/18/09