December 20 2011 Minutes of Budget Work Session with Finance Com.16t'
A Work Session of the Frederick County Board of Supervisors and the Frederick County
Finance Committee was held on Tuesday, December 20, 2011, at 8:30 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; Christopher E. Collins;
Charles S: DeHaven, Jr.; and Gary A. Lofton.
ABSENT
Gene E. Fisher and Ross P. Spicer.
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;
Jennifer Place, Budget Analyst; Sharon Kibler, Assistant to the Finance Director; Finance
Committee members Ritchie Wilkins, and Ron Hottle; Ellen E. Murphy, Commissioner of the
Revenue; C. William Orndoff, Jr., Treasurer; Lisa Frye, Executive Director of Finance for
Frederick County Public Schools; Dr. David Sovine, Superintendent of Schools.
CALL TO ORDER
Chairman Shickle called the work session to order.
FY 2013 BUDGET WORK SESSION
Finance Director Shiffler began by reviewing revenue projections. She noted revenue
projections for FY 2012 were running about $1.2 million over budget. She briefly reviewed the
new Government Finance Officers Association recommendations for Fund Balance. They
recommended a fund balance of 17 -18 %. Our normal practice was to maintain between 15 -20 %.
She then reviewed six budget scenarios for FY 2013.
Scenario A showed a proposed budget of $122,884,664, which is a decrease of $2.9 million.
This scenario recognizes new growth of $1.3 million in revenue, no use of fund balance, and no
tax increase.
Scenario B showed a proposed budget of $125,034,664, which is a decrease of $815,274. This
scenario recognizes new growth of $1.3 million in revenue, $2.15 million in fund balance
funding, and no tax increase.
Scenario C showed a proposed budget of $127,184,664, which is an increase of $1.3 million.
This scenario recognizes new growth of $1.3 million in revenue, $4.3 million in fund balance
funding, and no tax increase.
Minute Book Number 37
Board of Supervisors Budget Work Session with Frederick County Finance Committee
on 12/20/11
163'
Scenario D showed a proposed budget of $129,434,664, which is an increase of $3.5 million.
This scenario recognizes new growth of $1.3 million in revenue, $4.3 million in fund balance
funding, and a 3 cent tax increase.
Scenario E showed a proposed budget of $130,934,664, which is an increase of $5 million. This
scenario recognizes new growth of $1.3 million in revenue, $4.3 million in fund balance funding,
and a 5 cent tax increase.
Scenario F showed a proposed budget of $134,684,664, which is an increase of $8.8 million.
This scenario recognizes new growth of $1.3 million in revenue, $4.3 million in fund balance
funding, and a 10 cent tax increase.
Administrator Riley advised the tax increases were proposed because we have operated
for three years at present level funding, but the system is being stressed severely. He went on to
say we are a 24/7 agency and our product is service. Since certain areas of service are being
stressed, he felt it was appropriate to begin looking at some new revenue. He concluded by
saying we have made an exemplary effort to maintain services, but they are beginning to slip.
Vice - Chairman Ewing suggested staff look at a budget based upon Scenario C.
Supervisor Lofton stated he would like to see expenditures first and then look at
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Vice - Chairman Ewing stated he would like to see a proposed budget reflecting those
areas where staff would like to see increases.
Supervisor Lofton asked what a I% salary increase for county employees would mean to
the budget.
Finance Director Shiffler responded that a 1% increase would cost a little over $200,000.
Frederick County Schools Executive Director of Finance Lisa Frye noted a 1% increase
for school employees would equate to $900,000.
Administrator Riley noted the proposed scenarios do not reflect Fee for Service. He went
on to say we need to get Fee for Service kicked up with a July 1, 2012 implementation date. He
stated there needs to be a work session with the Board of Supervisors and the Finance Committee
in order to see how the numbers work.
The next budget work session will be held on January 18, 2012.
Treasurer Orndoff advised there was a need to look at Shawneeland's budget.
There being no further business, the work session adjourned at 8:45 A.M.
Minute Book Number 37
Board of Supervisors Budget Work Session with Frederick County Finance Committee
on 12/20/11
164
Richard C. Shickle Jo n & Rile Jr.
Chairman, Board of Supervisors Clerk, Board of Supervisors
Minutes Prepared By: (::::I
Ja�f i s --
Deputy Clerk, Board of Supervisors
Minute Book Number 37
Board of Supervisors Budget Work Session with Frederick County Finance Committee
on 12/20/11