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April 3 2013 Minutes of Budget Work Session with Finance Com321 A Joint Budget Work Session of the Frederick County Finance Committee and Board of Supervisors was held on Wednesday, April 3, 2013 at 12:00 P.M., in the Board of Supervisors' Meeting Room, 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. OTHERS PRESENT Finance Committee member Judy McCann - Slaughter; 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; Rod Williams, County Attorney; and Ellen Murphy, Commissioner of the Revenue. CALL TO ORDER Vice- Chairman Ewing called the work session to order. Administrator Riley advised staff had provided information concerning outside agency funding requests. He noted there were two types of outside agencies, discretionary and non- discretionary. He concluded by saying he would be happy to answer any questions. Supervisor Lofton stated outside agency funding has been his focus for a number of years. He went on to say he would like to make some recommendations because he is not sure why the County continues to fund some of these programs. He advised that he would like to find out more about some of them. He particularly cited decreased contributions to Lord Fairfax Community College. He noted part of these funds went to provide scholarships to Frederick County students; however, the reduction in funding resulted in a reduced number of county scholarships. Administrator Riley stated that staff would listen to whatever the Board wanted to do. Vice - Chairman Ewing noted he shared many of the same concerns. He went on to say he had a couple of funding requests that were still under study, particularly the Discovery Museum. He went on to say there were some contributions the County should look at phasing out. Supervisor Lofton stated he would like to understand the affect this year. Vice - Chairman Ewing responded that he was okay doing whatever the Board wanted to do this year or wait until next year. Minute Book Number 38 Board of Supervisors Budget Work Session with Finance Committee on 04/03/13 322 Supervisor Lofton responded that he would like to have information regarding increases and decreases in particular areas. Chairman Shickle stated that his interpretation would be to hold the budget as is, but not disburse funds until later. Supervisor Hess noted it was easier to start funding an organization rather than stop funding. Supervisor Collins asked about The Laurel Center. Administrator Riley noted the new request was a capital donation as part of the new construction project. Supervisor Lofton asked how the process would work to recommend increases or decreases in funding. Chairman Shickle suggested letting the Finance Committee handle it and make a recommendation to the entire board. Vice - Chairman Ewing suggested putting youth football and Youth Development Center under the Parks and Recreation budget. Administrator Riley noted those were typical outside agencies that provided services the County does not have to provide, but agreed it was probably right that they be placed under a department for oversight. Supervisor Fisher stated his concern was that the agencies funded were doing good work. He asked if there were agencies providing services that the public sector would have to provide if that group did not. He concluded by asking if there was any accountability besides the audit reports. Chairman Shickle responded that several years ago the County had contracts with certain groups, which outlined the responsibilities and expectations. Vice - Chairman Ewing advised he had no problem approving the budget as proposed, as long as no funding was disbursed until the Board has had a chance to look at the requests. Supervisor DeHaven asked if the discussions continued at the Finance Committee, could staff redistribute the lists of agencies, etc. Finance Director Shiffler advised the outside agency requests would be part of the Finance Committee agenda. Minute Book lumber 38 Board of Supervisors Budget Work Session with Finance Committee on 04/03/13 323 Supervisor Lofton stated he would like to get copies of any contracts between the County and outside agencies (e.g. Our Health, Youth Development Center, Discovery Museum, etc.). Administrator Riley advised staff would have the budget resolution at Tuesday evening's meeting for adoption. Vice - Chairman Ewing asked if revenue recovery would be part of this year's budget. Administrator Riley responded the County would be hiring a billing clerk in the Fire & Rescue Department and we would work under the City's contract with Valley Health regarding billing. He went on to say when the program goes online, staff would provide quarterly reports on revenue received, but not distributed. He concluded by saying he was not sure if there would be an appropriation out of that fund during the fiscal year. Supervisor DeHaven stated, with regard to the outside agencies, the Board needs to make sure it is not misleading agencies while reviewing their funding. Finance Director Shiffler responded she would hold the funding letters until after the Finance Committee discusses outside agency funding in April. Vice - Chairman Ewing asked if there was an operational contingency fund. Finance Director Shiffler responded that line item was a holding place for funds until it can be determined which remaining departmental requests will be funded. Vice - Chairman Ewing asked what staff had in mind in the way of a salary increase. Administrator Riley responded staff was looking at an average 3.5% merit increase for employees. The raises would take effect October 1, 2013. Funds would be allocated per department. Administrator Riley concluded by saying this budget would be funded with a total of $4.3 million from fund balance. There being no further business, the work session was adjourned at 12:42 P.M. Richard C. Shickle Chairman, Board of Supervisors iFihijkt Rik y, Jr. erk, Board of Supervisors Minutes Prepared By: Jay bs Deputy Clerk, Board of Supervisors Minute Book Number 38 Board of Supervisors Budget Work Session with Finance Committee on 04/03/13