HomeMy WebLinkAboutFebruary 27 2013 Minutes of Budet Work Session260
A Budget Work Session of the Frederick County Board of Supervisors was held on
Wednesday, February 27, 2013 at b:05 P.M., in the Board of Supervisors' Meeting Roam,
County Administration Building, 107 North Kent Street, Winchester, Virginia.
PRESENT'
Chairman Richard C. Shickle; Charles S. DeHaven, Jr.; Bill M. Ewing;
Christopher E. Collins; Gene E. Fisher; Robert A. Hess; and Gary A. Lofton.
CALL TO ORDER
Chairman Shickle called the work session to order.
County Administrator Jahn R. Riley, Jr. provided an update on the FY 2014 General
Fund budget. He reviewed the proposed revenues and expenditures, highlighting various items
for which funding was committed last October. Administrator Riley reviewed steps taken since
the Iast work session.
- Health Insurance — Proposed rate increase of 11.3% and increased costs to fund at
maximum liability rate of 17.8 %, The current proposal included maintaining the
- current health care plan due to minimal savings through changing plans. The out of
pocket cost paid by the employee would be between $50 to $100 depending on their
selected plan. Rates would be funded at expected rates instead of maximum rates.
The potential cost to an employee making a $40,000 annual salary would be between
$600 - $1,200 .annually depending on the chosen plan coverage. Administrator Riley
noted a salary increase of 1.5% to 3 %would be needed to offset this increase.
- Merit Increases —The original goal was a 4 % -5% merit increase for county
employees with an implementation date of July 1, 2013. The estimated cost of this
was $1,000,000. Two scenarios have been proposed.
o Scenario I includes a 3.5% merit increase fax county employees with an
implementation date of October 1, 2013, which reduces costs by 25% by
deferring for 3 months. The estimated cost is $600,000. The drawback of this
scenario is erployees will have four months of increased costs with no salary
increase to help offset this expense.
o Scenario II includes a 3.5% merit increase for county employees with an
implementation date of July 1, 2013 with an estimated cost of $800,000. The
drawback of this scenario is an additional cost of $200,000 to the County.
- Jail Funding —The Jail Board directed the Jail Finance Committee to reduce costs by
50 %. With these cuts, the net increase to the General Fund would be . $400,000.
These figures do not reflect any funds for salary adjustments.
Administrator Riley noted there were a number of unknown factors regarding this budget process
that needed to be kept in mind:
- Can the Jail reductions proposed realistically happen and can they can include a
salary increase;
- Salary increases for Social Services' employees;
- Line of Duty of Act premium increase;
Minute Book 1�'umber 38
Board of Supervisors Budget Work Session of OZ127113
261
- VRS Disability shift for new employees equal to 1 % of their salaries;
- Budget considerations by the Board of Supervisors.
With regard to fund balance funding, staff recommends that fund balance funding should remain
at $4.3 million. Administrator Riley advised after year -end, fund balance should be reviewed to
fund one -time capital expenditures with requests for re- appropriation for Schools and General
Fund to be submitted to Finance Committee for funding consideration from fund balance.
The presentation concluded with a review of requests from various departments, which
were deferred to future years. The items listed totaled $6.2 million, excluding large facilities and
new positions, which were included in the original budget detail.
Administrator Riley advised it was siaffls intent to hold the public hearing on the FY2014
budget on March 27, 2013 with a zero tax increase, new revenue of $S.S million, and $4.3
million in fund balance funding. With revenue determined, the proposed budget could be
advertised while the expenditure detail continues io be worked out.
Supervisor Collins asked about the health insurance proposal.
Administrator Riley responded it was cheaper to have the employees with more out of
pocket expense than to change plans. He reiterated the strategy of this budget, which was to
focus on benefits, some salary increase, and jail expenses.
Vice - Chairman Ewing asked when the deadline was far board members to ask questions,
etc, before the budget is advertised.
Finance Director Cheryl Shiffler responded March 6th was the deadline to deal with the
budget prior to the public hearing.
Supervisor Fisher appreciated staff's work on the budget and the format of the
presentation.
There being no further business, the work session adjourned at b:27 P.M.
1 G— �- �--- -Q +
Richard C. Shickle
Chairman, Board of Supervisors
. Ri ey, Jr.
rk, Board of Supervisors
Minutes Prepared By:
Jay E Ti s
Deputy Clerk, Board of Supervisors
Minute Boak Number 38
Board of Supervisors Budget Work Session of 02/27/13