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February 5 2014 Minutes of Budget Work Session with Finance Com2�9 A Budget Work Session of the Frederick County Board of Supervisors and Finance Committee was held nn Wednesday, February 5, 2014, at 12:00 P.M., in the Board of Supervisors' Meeting Room, 107 North Kent Street, Winchester, Virginia. PRESENT Chairman Richard C. Shickle; Vice- Chairman Charles S. DeHaven, Jr.; Christopher E. Collins; Gary A. Lofton; Robert A. Hess; and Robert W. Wells. ABSENT Gene E. Fisher. OTHERS PRESENT Finance Committee members Angela Rudolph, Judith McCann - Slaughter, and Ron Hottle; John R. Riley, Jr., County Administrator; Kris C. Tierney, Assistant County Administrator; Jay E. Tibbs, Deputy County Administrator; Commissioner of the Revenue Ellen Murphy; Treasurer C. William Orndoff, 3r.; Finance Director Cheryl B. Shiffler; Assistant Finance Director Sharon Kibler; Budget Analyst Jennifer Place; Dr. David Sovine, Superintendent of .Schools; and Executive Director of Finance for Frederick County Public Schools Lisa Frye. CALL TO ORDER Chairman Shickle called the work session to order. Administrator Riley advised staff was hoping to get direction from the Board regarding outside agency funding. He then reviewed the agenda materials, which included: - General Fund Budget Summary; - General Fund Capital Request Summary; - General Fund Expenditure Detail; and - Five -Year Capital Request Projections. He concluded by saying staff would like to leave this work session with direction regarding funding scenarios. OUTSIDE AGENCY FUNDING The Board discussed the outside agency requests. Agencies the Board agreed should he funded were: Lord Fairfax Community College, Handley Regional Library, Health Department, Lord Fairfax EMS Council, Tnc., and Northern Shenandoah Valley Regional Commission. Minute Book Number 39 Board of Supervisors Budget Work Session with Finance Committee on 42/45/14 220' Supervisor Collins asked about the request from the Cedar Creek Battlefield Foundation. Administrator Riley stated he believed this was aone -time request for funds to promote the Civil War Sesquicentennial event to be held at Cedar Creek Battlef eld. Supervisor Lofton stated it was his understanding these funds would be used for a promotional campaign. He went on to say he had contacted representatives from the Battlefield Foundation about other funding sources, but he has not gotten a response. Chairman Shickle asked Administrator Riley to inquire from the tourism board about their role in this event. He stated he wanted some oversight of the monies spent. The Board then discussed those agencies whose funding should be reduced or eliminated. Supervisor Laftan suggested reducing or eliminating Northern Virginia 4 -H Educational Center, Our Health, Inc., and Shenandoah Valley Discovery Museum. Supervisor Hess suggested eliminating Blue Ridge Legal Services, Inc. as well. Supervisor Collins expressed his agreement with Our Health, but he did not agree with eliminating funding. for Blue Ridge Legal Services. He had no opinion on the other agencies suggested. Administrator Riley advised the Child Advocacy Center utilized office space an the Our Health Campus and the lease payment was Frederick County's share of funding for that particular program. He went on to say the Director of Social Services says this is a worthwhile program and the County's contribution of a lease is good. Supervisor Collins stated he would rather the County directly contribute to the Child Advocacy Center rather than the way it is currently being handled. With regard to the request from the Youth Football Program, Chairman Shickle stated he would rather have the Parks and Recreation Commission decide on funding of this program versus the Board. Administrator Riley responded that staff would accommodate that request. Chairman Shickle asked if there was any merit to putting funding for the Shenandoah Apple Blossom Festival in the Tourism budget. Administrator Riley responded Frederick County is a sponsor and there is a fairly large return on investment. Supervisor Lofton stated he would like to see numbers specific to Frederick County from CLEAN, Inc. Minute Book Number 39 Board of Supervisors Budget Work Session with Finance Committee on 02/65/14 22� Chairman Shickle asked the Board if there was merit in developing a purpose statement regarding outside agency contributions, since we are using taxpayer dollars. The Board's consensus was to develop a purpose statement. REVENUE SOURCES Supervisor Lofton stated he had the various revenue sources by department. Based on current fees, we need to look at possibly increasing fees to cover our casts. He went on to say the fees shauld be reflective of current costs and he would like to see them updated. county. Chairman Shickle suggested maintaining a file regarding the various fee schedules in the FUNDING SCENARIOS Vice- Chairman DeHaven asked if the salary and fringes shown in the materials included the mandated VRS increases, etc. Administrator Riley responded yes. Supervisor Collins stated the Board needs to make sure the employees do nat "take a hit" due to VRS, Health Insurance, associated taxes, etc. He wanted to ensure they do not lose money. Supervisor Lofton stated he did not want to see a scenario with a tax increase. Supervisor Wells stated the Board needed to support the schools' request. He went on to say he was not in favor of a tax increase, but it might be necessary. Vice - Chairman DeHaven stated he wanted to see a scenario reflecting the current tax rate, without the proposed bump in salary requested by the schools, shaving current requests, and what it would take to get there under the current tax rate. He went on to say the schools did an excellent job of presenting needs. He concluded by saying we need to look hard at some stuff. Supervisor Hess stated he was reluctant to make the tax rate the driver. He suggested looking at the needs, what is appropriate, and then deal with the tax rate. Commissioner Murphy stated she like the strategy suggested by Supervisor Hess. Administrator Riley responded staff cauld get there with a flat tax rate, but it would not pay for any new expenditures or initiatives. Chairman Shickle asked the Board to discuss the use of fund balance. Minnte Book Number 39 Board of 5npervisors Budget Work Session with p'inance Committee on QZ /U5114 222 Vice - Chairman DeHaven stated, in an ideal world, we would plan expendiiures through the budget process. He went on to say he thought the way we have been doing it, using one time funds at year end, was responsible, but he would prefer it be done through the budget process. Administrator Riley responded that staff would look at trying to put together scenarios based on today's discussions. Fund balance in the amount of $4.3 million would be used to construct the new budget with the understanding those monies would be returned at the end of the year. Based on the Board's discussions, Finance Director Shiffler stated staff would give multiple scenarios showing what can and cannot be funded.. She went on to say the budget work session scheduled for February 12, 2014 would be canceled because the information could not be .\ turned around that quickly. The nest budget work session would be after the February 19, 2014 Finance Committee meeting. There being no further business, the work session was adjourned at 1:11 P.M. 1 Richard C. Shickle Chairman, Board of Supervisors J n R. ey, Jr. Jerk, Board of Supervisors Minutes Prepared By: �,. Jay . T bs Deputy Clerk, Board of Supervisors Minute Sook dumber 39 Board of Supervisors Budget Work Session with Finance Committee on 02/05/14