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February 27, 2002 Work Session 633 A Budget Worksession of the Frederick County Board of Supervisors and County Finance Committee was held on February 27, 2002, at 5:30 P.M. in the Board of Supervisors' Meeting Room, County Administration Building, 107 North Kent Street, Winchester, Virginia PRESENT Chairman Richard C. Shickle; Vice Chairman W. Harrington Smith, Jr., Robert M. Sager; Margaret B. Douglas, Sidney A. Reyes; Gina A. Forrester, and Lynda 1. Tyler. FINANCE COMMITTEE Members Ritchie Wilkins, Don Butler, and Ron Hottle. STAFF County Administrator, John R. Riley; Jr., Finance Director Cheryl B. Shiffler; Budget Analyst Jennifer Place; Deputy Clerk Carol T. Bayliss. Administrator Riley explained there were three exhibits - Budget Summary (Exhibit A); Proposed County Administrator's Cuts (Exhibit B); Proposed Budgeted Adjustments - General Fund (Exhibit C). He also presented a quick summary of remaining Gcncral Fund increases. The Finance Committee has discussed several budget funding options and recommend to the Board that they consider funding option l, 3, or 4. These options can be considered in whole or in part. Administrator Riley presented the following options, and in doing so, advised that he would like to present one of his own: Option 3 - Version 1 School Proffers (allocated to capital only) Decals Rainy Day Fund Unreserved Fund Balance $ 610,000 300,000 3,000,000 1.225.092 5,135,092 **Uses $4,835,092 of one-time funding sources To balance proposed budget** Option 3 - Version 2 School Proffers (allocated to capital only) Decals Rainy Day Fund Unreserved Fund Balance $ 610,000 - 0- 3,000,000 1.525.092 5,135,092 **Uses $5,135,092 of one-time funding sources to balance proposed budget** Minute Book Number 27 Board of Supervisors and County Finance Committee Budget Worksession of 02127/02 634 Option 4 - Version 1 School Proffers (allocated to capital only) $0.03 Real Estate Tax Increase Rainy Day Fund Increase Decals Unreserved Fund Balance $ 610,000 1,074,000 3,000,000 300,000 151.092 5,135,092 **Uses $3,761,092 of one-time funding sources to balance proposed budget** Option 4 - JRR Version School Proffers (allocated to capital only) $0.11 Real Estate Tax Increase Rainy Day Fund Increase Decals Unreserved Fund Balance $ 610,000 3,938,000 - 0- 300,000 287.092 5,135,092 **Uses $897,000 of one-time funding sources to balance proposed budget** After a total of more than $13 million in cuts, only $176,000 in operating increases survived. Over $4.5 million was cut in General Fund Fixed Assets requested by departments. Over $478,967 was cut in outside agency requested increases. $1.25 million was cut from construction costs for Warrior Drive. Cut $1 million from Fire and Rescue Capital Loan Fund. Only 1 new position survived. This position is for Millbrook High School. Supervisor Sager asked what the school population - enrollment is for 2002-2003. Dr. Dean replied 10,905. Supervisor Forrester referred to figures she had from the State dealing with House Bill 30. Discussion followed between Dr. Dean and Member Wilkins on the need for a new middle school. Dr. Dean advised it is a very difficult job trying to get this figure. He referred to the students enrolled in private, parochial and home bound schooling, and this makes it hard to know how many students will be coming back into the public school system. Member Wilkins stated that he would be interested in seeing these figures from past years if they are available. He is interested in the history of these students that are enrolled elsewhere and end up coming back into the public school system. Discussion followed as to possible savings within the school system, and comparisons were made between this year's figures and last year's. Member Butler felt certain information should have been provided to the Board earlier by the school board. Had this been done, the Board and Minute Book Number 27 Board of Supervisors and County Finance Committee Budget Worksession of 02/27/02 635 Finance Committee would have had more time to review these figures. School Finance Director Frye explained there are 7,000 account plus and the amount oftime that would be involved to provide this information. Member Wilkins advised if the Board were to support fully what the school board is asking for, it will mean a significant increase, one that he is not sure Frederick County is ready for. Supervisor Tyler advised that she has spent a great deal of time with Dr. Dean and staff concerning this budget, and she feels based on this year's budget, there will be a significant tax increase next year with the opening of Millbrook High School. Supervisor Smith stated that he felt the information provided has been very informative. Member Hottle stated that he can feel the frustration the county is experiencing; however, he feels this same frustration is being felt throughout the State. He does support the school budget. Treasurer Orndoff asked again about the school's health insurance plan. He was interested in comparing this year's figures to last year's. Chairman Shickle advised Board members that the county is looking at 3 scenarios. Dr. Dean stated that he would like to see figures start higher. Supervisor Forrester asked what is the time limit. Administrator Riley advised the public hearing on the county budget is scheduled for March 27. Chairman Shickle asked the Board Members to indicate which option they favored at this time, noting that none of the options would fully fund the schools. Supervisor Smith advised that he wanted Stephens City Fire Company fully funded with 24 hour service. Chairman Shickle stated that he was in favor ofthe retirement plan for county volunteer fire fighters. Supervisor Forrester advised that she felt more time was needed to digest the information that had been presented and discussed at this meeting. Chairman Shickle asked the Board and Finance Members to state which option they were leaning toward at this time. Hottle - Riley Option Butler - Board decision Wilkins - Board decision Minute Book Number 27 Board of Supervisors and County Finance Committee Budget Worksession of 02/27/02 636 Sager Option 4 - Version 1 Forrester - Pass Reyes - Pass Tyler - Riley Option Smith - Option #3 - Version 2 Douglas - Riley Option Shickle - Option #3 - Version 2 Supervisor Forrester advised that she would go with Riley's option. ADJOURNED. .... Jo~-t(r- Jo n R. Riley, Jr Clerk, Board of Supervisors \2---Q.......-. ~ ..lL-L.c...,; Richard C. Shickle Chairman, Board of Supervisors Minutes Prepared By: /JnJ . t:\.1<n" ~ Carol T. Baylis~ Deputy Clerk, Board of Supervisors Minute Book Number 27 Board of Supervisors and County Finance Committee Budget Worksession of 02127/02