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HomeMy WebLinkAboutJuly 16 2014 Minutes of Board Budget Work Session0�0 A Budget Work Session of the Frederick County Board of Supervisors and Finance Committee was held on Wednesday, July 16, 2014 at $:30 A.M., in the Board of Supervisors' Meeting Room, 107 North Kent Street, Winchester, Virginia. PRESENT Chairman Richaxd C. Shickle; Vice- Chairman Charles S. DeHaven, Jr.; Gene E. Fisher; Gary A. Lofton; Robert A. Hess; and Robert W. Wells. ABSENT Christopher E. Collins. pTHERS PRESENT Finance Committee members Angela Rudolph, and Judith 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; Sharon Kibler, Assistant Finance Director; Jennifer Place, Budget Analyst; Paula Nofsinger, Human Resources Director; Eric Lawrence, Director of Planning and Development; Dennis Linaburg, Fire Chief, Frederick County Superintendent of Schools Dr. David Sovine, Executive Director of Finance. for Frederick County Public Schools Lisa Frye; Handley Regional Library Director John Huddy; and Ann White, Business Manager, Handley Regional Library. CALL TO ORDER Chairman Shickle called the work session to order. He then turned the presentation over to Administrator Riley. Administrator Riley reviewed the agenda far the work session. He then introduced Superintendent David Sovine to address the requested salary increase far k'rederick County Public School employees. Dr. Sovine advised that the school board approved a salary initiative to provide all division employees aone -step increase to the existing salary scale, which equated to a 2.5% salary increase. He noted this was similar to what Frederick County government was proposing for their employees as well. He noted the School Board was requesting a $1.5 million from the school capital projects fund to school operating to cover a portion of this proposed increase. This was done by delaying some of the school capital projects, but they would remain iterz� to be addressed in the future. He went on to say, if this salary initiative was approved, then additional funding would be required in FY2016 to maintain this initiative. He concluded by saying, in Minute Book Number 40 Board of Supervisors Budget Work Session with Finance Committee on 071161]4 02� addition to continuing the salary initiative, a number of other items would be reinstated in FY201 b. Executive Director of Finance Lisa Frye stated the starting salaries would remain the same. She noted that currently the division has veteran teachers with 10 years of experience getting paid $2,000 more than starting teachers with no experience. She went on to say that surrounding localities are trying to increase the sagging area of their salary scales as well. Dr. Sovine noted that even with this one step increase Frederick County remains behind the City of Winchester. Supervisor Hess asked if the total request was for $2.5 million with $1.5 from school construction and $1 million from the contingency fund. Dr. Sovine responded yes. Supervisor Lofton asked if the school board was comfortable that the delayed capital projects could be put off far one year. Dr. Sovine responded yes. He noted staff had had numerous discussions about whether or not the projects can be delayed. He concluded by saying it is not with 100% certainty that they will not comeback for a request. Administrator Riley then introduced Frederick County Finance Director Cheryl Shiffler to discuss the proposed merit increase. Finance Directox Shiffler reminded the Board that revenues had increased by $3.4 million. Of that amount, $2 million has been allocated, which left a balance of $ I.4 million. She advised that staff was proposing to use approximately $600,000 for a merit increase with the remaining funds to be used to fund some of the outstanding budget requests which were cut as part of the budget process. Upon a motion by Supervisor Hess, seconded by Supervisor Fisher, the Board approved the Transfer of $1.5 million from the School Construction Fund to School Operating and authorized the merit increases outlined by staff. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Charles S. DeHaven, Jr. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess Aye Gary A. Lofton Aye Robert W. Wells Aye Minute Book Number 40 Board of Supervisors Budget Work Session with Finance Committee on 47/16/14 022 Chairman Shickle stated he would like to see the information presented to the School Board regarding the merit increases. He went on to say there was very little information on the $600,000 and he would like to know what it did or did not do. He asked if that information could come through the HR Committee. The Board then discussed funding for Our Health, Handley Regional Library, and the Shenandoah Valley Discovery Museum. Administrator Riley advised the adopted budget for Handley Regional Library was $500,000, but their request for FY2015 was $863,665. He noted the Board had heard from the library's supporters regarding need and benefit to the community. He stated the requested increase seemed reasonable. Chairman Shickle believed this request was something that should be seriously considered. Supervisor Wells stated, as the liaison to the Handley Regional Library Board, he had met with library staff to discuss their budget and areas of need. He believed with was a worthy increase, Supervisor Lofton asked about potential reductions in service and how those reductions had worked. John Huddy, Director of Handley Regional Library, stated the library board had io approve a budget with a shortfall. The board knows they will either need to raise the money or furlough or reduce staff or cut resources. Aran White, Handley Library Business Manager, stated the library was operating under reduced hours and reduced staff. She went on to say the library system would like to retain its experienced employees. In response to a question concerning haw other localities were funding the library, Director Huddy advised Clarke County had given a slight increase and the City of Winchester was overpaying based on the current memorandum of understanding. Ms. White advised the requested dollars did not restore the lost hours of operation. Chairman Shickle asked Mr. Huddy if he could provide the Board with periodic updates to see where the library was left with levels of service or hours of operation. Upon a motion by Supervisor Wells, seconded by Supervisor Fisher, the Board approved the Handley Regional Library's FY 2015 request in the amount of $862,665. Minute Book Number 40 Board of Supervisors 13udget Work Session with Finance Committee on 07/16/14 0�3 Supervisor Fisher stated he saw this as an investment in the county's facility at Bowman Library, where the parking lot was expanded to handle overflow parking for special events. He concluded by saying the County needs to support its investment there. There being no further discussion, the Board approved the funding request by the following recorded vote: Richard C. Shickle Aye Charles S. DeHaven, rr. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess Aye Gary A. Lofton Aye Robert W. Wells Aye The Board then discussed the status of the Discovery Museum's request for funding. Administrator Riley advised the museum had been funded at present level since 2008. The agency requested $25,000 for FY2015. The current status of that request is $0. Supervisor Lofton stated that representatives from the museum had stated the agency would operate in the black regardless of what Frederick County does with this funding request. He stated that he appreciated chat spirit and wished them much success. He concluded by saying the funding from the County For FY2015 should remain at $0. The adopted budget of $0 remained the same. The Board then discussed the status of the request from Our Health. Administrator Riley noted the agency had requested $25,000 for FY2015. Currently, the budget was approved with $0 for Our Health. Chairman Shickle stated he believed this community endeavor had the monetary and volunteer support of the County when it was first created. There should be a reason why we created this entity, but then stopped funding it. Supervisor Lofton stated sometimes the County can be a catalyst for an innovative program, but it should not continue as a life support for the program after it has existed for a number of years. Administrator Riley stated he thought their request of $25,000 was a small amount to provide services to people. Assistant County Administrator Tierney advised that he was current a member of the Our Health board. He stated they were aware of the funding issue and were looking a more ways Minute Book Number 40 Board of Supervisors Budget Work Session with Finance Committee on 071161!4 024 to become more self sustaining. He went on to say they are also facing cuts from Valley Health and realize they have to look at new revenue sources. Supervisor Lofton noted the County already pays rent for the Child Advocacy Center along with funding a number of other partners that are located on the Our Health campus. He believed the budget request was asking the County to contribute yet again, since a portion of the contributions to other agencies was used to pay rent to Our Health. Supervisor Hess stated there were probably some indirect costs that would fall to county government if Our Health did not exist. Supervisor Fisher stated he would support the $25,000 request. Upon a motion by Vice - Chairman DeHaven, seconded by Supervisor Fisher, the Board approved the $25,000 request of Our Health, but would like to have future discussions about their budget. Supervisor Hess stated he would approve a contribution of $2'0,000 as a way of sending a message that we will be cutting back on their fiinding. Supervisor Lofton stated he could not support requests going forward. Supervisor Wells agreed with Supervisor Lofton. Vice - Chairman DeHaven amended his motion to approve a $20,000 contribution to Our Health, with future discussions to be held about their budget. Supervisor Fisher seconded the motion. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Charles S. DeHaven, .lr. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess Aye Gary A. Lofton Aye Robert W. Wells Aye Chairman Shickle recused himself from the next item due to a conflict of interest. The Board discussed an increased contribution to the Northern Shenandoah Valley Regional Commission. Administrator Riley advised there was a slight difference between what was funded for the Northern Shenandoah Valley Regional Commission and their requested funding. The amount requested was $1,085.00 higher. He stated there was money in the approved budget to cover this expense, but he wanted to bring it to the Board rather than unilaterally pay it. Minute Book ]\umber 40 Board of supervisors Budget W ork Session with Finance Committee on 07/16/14 02� Upon a motion by Supervisor Hess, seconded by Supervisor Lofton, the Board approved a funding increase for the Northern Shenandoah Valley Regional Commission in the amount of $1,085. The above motion was approved by the following retarded vote: Richard C. Shickle Abstain Charles S. DeHavexz, 7r. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess .Aye Gary A. Lofton Aye Robert W. Wells Aye The next item was discussion of a borrowing resolution. Finance Director Shiffler advised staff was seeking Baard direction regarding the need for a borrowing resolution. Chairman Shickle stated he had spoken to a financial advisor who said the locality would be viewed very negatively if it had a borrowing resolution in place. He went on to say he did not understand why, because it seemed like good business practice, but he would defer to the experts. Administrator Riley stated that if the County were ever facing a similar situation as this year, with the State taking so long io adopt a budget, there would be no issue with the County getting it. Supervisor Hess suggested staff find out the costs associated with this type of borrowing and that we have a process in place to apply should we need it in the future. The Board took no action on this request. The next discussion item was a supplemental appropriation for a staffing request for Star Tannery. Administrator Riley reviewed the history of this request, to include multiple meetings with representatives from the Shenandoah County Board of Supervisors and county administration. He noted the situation in Star Tannery continues to decline. Chief Linaburg advised that staff had tried to bolster the volunteer contingent in Star Tannery, but due to the station's geographic location, they have run, out of ideas except 2417 staffing of 2 people fora 24 hour period, seven days per week. Vice�Chairman DeHaven asked if the station location was the right location to respond from long term. iVlinute Book �iumbcr 40 Board of Supervisors Budget Work Session with Finance Committee on 07/16/14 � i Chief Linaburg responded that 80% of the calls in the area were EMS and it was getting harder to find EMS trained individuals. He acknowledged it was a rural location. He noted it took 25 minutes for any other station to respond. He concluded by saying the station is where it needs to be at this point. Supervisor Wells asked about volunteer participation. Chief Linaburg responded there were seven active members. Chairman Shickle stated he did question the location of the facility. He asked if we could have paid Shenandoah County to serve us in that area. He concluded by asking what specifically was Frederick County sharing with Shenandoah County. Upon a motion by Supervisor Wells, seconded by Supervisor Hess, the Board authorized the six career positions far Company 17, Star Tannery. Richard C. Shickle Aye Charles S. DeHaven, rr. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess Aye Gary A. Lofton Aye Robert W. Wells Aye The final item for discussion was a request for a FY2015 supplemental appropriation for the Department of Social Services. Administrator Riley advised the driving issue was initiated during discussions about the effects of Medicaid expansion on the county. The request before the Board was for additional staffing for the department. A total of seven new positions were being sought at a cost of $329,000. Linda Gibson, Assistant Director, and Delsie Butts, Administrative Services Manager, from the Department of Social Services appeared before the Board regarding this item. Assistant Director Gibson stated the numbers first presented to the Board during the April work session were the current numbers. She went on to say the department was trying to put together a call center to handle the phone calls. She stated the department does not currently have the staff to serve the population and that it was next to physically impossible to get the job done wish the current staff level. She noted that her department's programs put $6S million back into the community. She stated the passage of the Affordable Care Act was enough to bump up the number of applicants. She went on to say they have current space to accommodate these new positions, with same minor renovations to the existing space. Minute Book Number 40 Board of Supervisors Budget Work Session with Fivance Committee on 07/16/14 ��� Upon a motion by Supervisar Hess, seconded by Supervisor Lofton, the Board approved the creation of seven positions and authorized a supplemental appropriation up to $471,000, with up to $329,000 local dollars, for these positions. The above motion was approved by the following recorded vote: Richard C. Shickle Aye Charles S. DeHaven, 1r. Aye Christopher E. Collins Absent Gene E. Fisher Aye Robert A. Hess Aye Gary A. Lofton Aye Robert W. Wells Aye Chairman Shickle stated he would like to see a list of the non sustainable things that were approved today (e.g. salary related, school construction fund, fund balance funding, etc.). ADJOURN UPON A MQTION BY VICE- CHAIRMAN DEHAVEN, SECONDED BY SiJPERVISOR FISHER, THERE BEING NO FURTHER BUSINESS TO COME BEFORE THIS BOARD, THIS MEETING IS HEREBY ADJOURNED. (8:35 P.M.) Richard C. Shickle Joh ile , Jr. Chairman, Board of S1lpeirvisars Cle , Board of Supervisors Minutes Prepared By: �.__ _ �; Jay E Ti � s Deputy Clerk, Board of Supervisors Minute Book Number 40 Board of Supervisors Budget Work ,Session with Finance Committee on 0T/15114