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HomeMy WebLinkAboutFebruary 22 2012 Minutes of Budget Work Session with Finance CoA Work Session of the Frederick County Board of Supervisors and the Frederick County Finance Committee was held on Wednesday, February 22, 2012, at 6:30 P.M.jn the Board of Supervisors' Meeting 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.; Gene E. Fisher; Gary A. Lofton; 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; Sharon Kibler, Assistant Finance Director; Jennifer Place, Budget Analyst; Paula Nofsinger, HR Director; C. William Orndoff, Jr., Treasurer; Finance Committee members Ron Hottle and Stephen Swiger; Stuart Wolk, Chairman of Frederick County School Board; Lisa Frye, Executive Director of Finance for Frederick County Public Schools; and Dr. David Sovine, Superintendent of Schools. CALL TO ORDER Chairman Shickle called the work session to order. He then turned the presentation over to County Administrator John R. Riley, Jr. Administrator Riley advised the purpose of this work session was to try to bring the budget process to conclusion. He advised that staff bad prepared additional information requested by the Board to include tax rate and median income comparisons, a list of vehicles in excess of 100,000 miles, and the vehicle maintenance policy. He noted that Frederick County was below the average of the comparison localities when it came to tax rates and median income. Administrator Riley then asked Finance Director Shiffler to review the revenue sheet, which illustrated the various areas from which revenue is derived. Administrator Riley then asked Lisa Frye, Frederick County Public Schools' Executive Director of Finance, to review the impact of the various funding scenarios on the school division. Director Frye advised that Virginia Retirement System was by far the biggest question mark. She went on to say if employees were to be kept whole then it would come at a cost. She noted that under scenario C employees would see a decrease in their rate of pay because of VRS. (227 Minute Book Number 37 Board of Supervisors Budget Work Session with Frederick County Finance Committee on 02/22/12 ■ She concluded by saying a salary increase was not possible under scenario C, was questionable under a 3 -cent tax increase, and a slight increase was possible under a 5 -cent tax increase. Administrator Riley noted there were some positive signs: He advised there were increases in funding to certain areas not anticipated before. He concluded by saying staff was seeking direction to from the Board regarding a funding scenario to advertise for public hearing. Supervisor Collins asked how much of a proposed tax increase would go to salary increases to keep employees whole. Administrator Riley responded that a majority would go to salaries. He advised the county would receive a windfall of revenue in June and that could be used to address some capital needs. Chairman Shickle advised that he would poll the Board, but wanted to hear from the voting members of the Finance Committee. Supervisor Spicer stated he felt this vote was about where to start the discussion regarding the tax rate and that endorsing scenario C ends the debate. He believed a 5 -cent tax increase was prudent and allowed for the replacement of sheriff's vehicles, funding of libraries, and allowed schools to re- implement 9` grade sports teams. He concluded by saying that our deputies, teachers, and other positions are not paid as well as other jurisdictions. Vice - Chairman Ewing stated that without a tax increase we would operate with a lean budget. He noted there were items he would like to see included in the budget that a level tax rate would not provide. He went on to say the economy would not support a tax increase at this time, so he supported scenario C. Supervisor Collins stated there has been a lot of misinformation circulating in the community. He noted there were teachers with children who received reduced priced lunches and that upset him. He went on to say he did not want a tax increase but there was an obligation to the citizens that could not be reached under scenario C. He stated he was in favor of advertising a 5 -cent tax increase. Supervisor Lofton stated this is not the time to increase taxes. He advised that he knew of small business owners who were foregoing salaries in order to keep their business afloat. He went on to say they are struggling now and he hated to raise taxes on anyone; however, for the sake of discussion, he would support the advertisement of a 5 -cent tax increase. Minute Book Number 37 Board of Supervisors Budget Work Session with Frederick County Finance Committee on 02122/12 Finance Committee member Ron Hottie stated he supported advertising a 5 -cent tax increase. Finance Committee member Stephen Swiger stated he had heard several complaints about a proposed tax increase, Chairman Shickle polled the Board regarding which budget scenario to advertise. Supervisors Lofton, Collins, and Spicer selected scenario E, which was a 5 -cent tax increase. Supervisors DeHaven and Fisher, Vice - Chairman Ewing, and Chairman Shickle selected scenario C, no tax increase. The majority consensus was to advertise scenario C or a level tax rate. There being no further business, the meeting adjourned at 6:50 P.M. Richard C. Shickle Jo ey, Jr. Chairman, Board of Supervisors CIA, Board of Supervisors Minutes Prepared By: Jay E. s Deputy Clerk, Board of Supervisors Minute Book Number 37 Board of Supervisors Budget Work Session with Frederick County Finance Committee on 02!22/12