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HomeMy WebLinkAboutJanuary 18 2012 Minutes of Work Session with Finance Committee.A Work Session of the Frederick County Board of Supervisors and the Frederick County Finance Committee was held on Wednesday, January 18, 2012, at 8:30 A.M., in the First Floor, Conference Room, County Administration Building, 107 North Kent Street, Winchester, Virginia. PRESENT Vice - Chairman Bill M. Ewing; Christopher E. Collins; Charles S. DeHaven, Jr.; Gary A. Lofton; and Ross P. Spicer. ABSENT Chairman Richard C. Shickle (arrived 8:40 a.m.); Gene E. Fisher. 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 Stephen Swiger, 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; and Dr. John Lamanna, Frederick County School Board. CALL TO ORDER Vice - Chairman Ewing called the work session to order. FY 2013 BUDGET WORK SESSION Finance Director Shiffler reviewed the tentative budget calendar, FY2011 -2012 outside agency contributions, real estate tax comparison chart, % of eligible students receiving free or reduced price meals, and a locality statistical comparison table. She then reviewed the table of known budget factors for FY 2012 -2013. She noted there were $1.25 million in mandatory increases that must be absorbed in other areas, possibly positions or changes in fringe benefits. She noted if the elimination of positions was needed to offset these increases then it would take 30 positions. She went on to say probably half of those would come from the public safety side since that made up lh of the employees. Finance Director Shiffler then reviewed projects and initiatives that would be delayed if there was no new revenue. Minute Book Number 37 Board of Supervisors Budget Work Session with Frederick County Finance Committee on 01/18/12 M Administrator Riley advised there were no salary increases included in the projected numbers. He went on to say if they looked at increasing fringes the cost to employees should be considered. He noted that VRS increased 2.5% and VRS Life Insurance increased 1.9 %. Finance Director Shiffler advised the scenario C recognized $600,000 in new revenue for Frederick County and $800,000 for Frederick County schools. She stated that if we have to make cuts to meet the $1.2 million budget shortfall in known factors, we still have to deal with increasing costs of fuel and utilities. She noted that under scenario D, which proposed a $0.03 per $100 increase to the real estate tax rate would net $1.5 million for Frederick County and $2 million for Frederick County schools. The proposed $0.03 rate was in increase of 5.5% and would equate to a $61 increase to the average tax bill. Treasurer Omdoff asked about the length of service program and questioned its use as a recruiting tool. He asked if the program had become stale. Administrator Riley noted the program was probably more a retention than recruitment tool. Vice - Chairman Ewing turned the presentation over to Dr. Sovine, Superintendent of Schools. Dr. Sovine reviewed the budget history of Frederick County schools from 2009 through 2012. He noted there had been a reduction or elimination of a number of programs. Class sizes have increased while staff has decreased. He then reviewed the budget known and unknowns for FY 2013. Dr. Sovine noted VRS would increase $4.9 million. He went on to say a budget shortfall of $4.47 million was projected; however, it was less than expected. Supervisor Collins asked how Frederick County's student/teacher ratio compared to other localities. Dr. Sovine responded it was difficult to compare because some localities calculate their ratios differently. Supervisor Lofton asked if the state was funding its full share of mandates, etc, Dr. Sovine responded no. Administrator Riley advised that it was staffs hope to provide enough information that the Board of Supervisors could provide direction for crafting the spending plan. He went on to say a direction needed to be set soon as the budget public hearing will be held in March. Minute Book Number 37 Board of Supervisors Budget Work Session with Frederick County Finance Committee on 01/18/12 N Vice - Chairman Ewing asked what it would take to make scenario C work, in particular, what areas and programs would be affected. Supervisor DeHaven stated he would like to have a backup plan that gives the board a few days to "chew" on things. There being no further business, the work session was adjourned at 9:40 A.M. Richard C. Shickle Chairman, Board of Supervisors A - - Jo R. Riley, Jr. Clerk, Board of Supervisors Minutes Prepared By: C_ _._[4 C. `1 41 Jay E. I f ibjNs Deputy Clerk, Board of Supervisors Minute Book Number 37 Board of supervisors Budget Work Session with Frederick County Finance Committee on 01/18/12