April 03, 2001 Work Session
19
The Frederick County Board of Supervisors and County Finance Committee met on April
3,2001, at 8:00 A.M., in the First Floor Conference Room, County Administration Building, 107
North Kent Street, Winchester Virginia.
PRESENT: Chairman Richard C. Shickle; Vice Chairman Charles W. Orndoff, Sr.; W.
Harrington Smith, Jr.; Robert M. Sager; Margaret B. Douglas; and Sidney A. Reyes.
FINANCE COMMITTEE: Don Butler; Richie Wilkins; Treasurer C. W. Orndoff, Jr.;
Commissioner of the Revenue Ellen Murphy.
STAFF: County Administrator John R. Riley, Jr.; Assistant County Administrator Kris
Tierney; Deputy Clerk Carol T. Bayliss; Finance Director Cheryl Shiffler; Budget Analyst Jennifer
Place.
SCHOOL STAFF: School Superintendent Bill Dean; Finance Director Lisa Frye;
Administrative Assistant to the Superintendent Al Orndoff.
County Administrator Riley advised that at the last worksession a tax rate was established;
however, the county is now dealing with new information provided by the Commissioner of the
Revenue Ellen Murphy wherein she has indicated that she underestimated the 2001-2002 reduction
in tax revenue, in the amount of $500,000, resulting from a land use tax deferment program. He
further advised that this amount will have to be made up from other sources in order to balance the
budget, and thus the reason for this worksession.
Commissioner Murphy explained this was caused by an error and it's on her head, and
nobody's more sorry about it than she is. She further explained that this tax deferment program
gives farmers and orchardists a break by lowering their farmland values when the agriculture
economy is weak.
Administrator Riley explained that when the error was realized it was too late for the board
to adjust the real estate tax rate to make up the $500,00 shortfall.
Committee member Butler stated that he has a real problem with being blind-sided by this,
after so much effort has been put in by everyone. He further stated that he feels this whole program
needs to be revisited, and that every parcel currently in land use needs to be looked at as to whether
this land actually qualifies to be in land use. He further addressed the data provided by the State
Land Evaluation Advisory Council (SLEAC) and questioned whether the county should still use this
data.
Minute Book Number 27
Board of Supervisors Budget Worksession of 04/03/01
220
Administrator Riley advised this land use figure is in place for the next four years, and it's
pretty painful.
Chairman Shickle referred to certain sections of the state code and whether or not certain
zoning districts could be excluded, feels this is something that might be considered by the county
in the future.
Treasurer Orndoff inquired of Commissioner Murphy about certain classes of property and
where she has them classified.
Commissioner Murphy replied in middle ground, not the lowest.
Treasurer Orndoff further asked Commissioner Murphy the dollar amount in land use for this
year.
Commissioner Murphy replied $l.8 million for 2,200 parcels.
Administrator Riley advised that the county has an Agricultural Advisory Committee, and
asked if perhaps Commissioner Murphy could rely on their expertise to assist her with pertinent
information.
Chairman Shickle asked Commissioner Murphy to contact various commissioners throughout
the state to find out what they do.
Committee member Butler stated that he thinks it is worth $5,000 to take care of a $500,000
problem. He asked ifthis was a done deal, would it help to call Richmond to see if this problem can
be corrected. He further asked ifthe board and finance committee could be provided with monthly
reports outlining the progress being made by the commissioner of revenue staff. He feels it is
imperative that these parcels be verified, to be sure they are entitled to land use taxation.
Administrator Riley advised that this should be no problem.
Administrator Riley suggested the following cuts to balance the budget:
1. Economic Incentive Fund - $150,000.
2. Tipping fees recently reduced for the Frederick County Landfill- $100,000.
3. Use of an amount normally reserved for the county's operational contingency transfer
fund - $100,000.
4. Dr. Dean has stated that he is willing to give $100,000 due to the fact that the State is
picking up VRS for the teachers.
Administrator Riley advised that still leaves us $50,000 short of what is necdcd to balance
the budget.
Minute Book Number 27
Board of Supervisors Budget WorksessioIl of 04/03/01
21
Dr. Dean explained that he did want to explain that the sehool board could come back to the
board in the future, but for now they were happy to offer the $100,000.
Supervisor Reyes inquired whether this $50,000 eould be taken from Fund Balance.
Administrator Riley replied it could; however, he would caution against that. He advised that
he would meet with the finance director and review various options as to where this $50,000 could
come from in the budget. He did mention that a senior planner position in the county planning
department was a possibility; however, this has been in the budget for a number of years and he
would like to leave it there if at all possible.
Committee member Wilkins reminded everyone of the fact that the budget next year will be
a difficult one given the current budget, in addition to what is already in plaee for next year.
Administrator Riley thanked everyone, especially the county finanee department, for all their
assistance in putting this budget together.
Chairman Shickle also thanked staff and the sehool board for all their efforts in putting this
budget together.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THIS BOARD,
THIS WORKSESSION IS HEREBY ADJOURNED. (TIME: 8:45 A.M.)
\L.t Q.~
Richard C. ShickIe
Chairman, Board of Supervisors
~v~
Jo . Riley, Jr.
Clerk, Board of Supervisors
.
Minutes Prepared By: AI ..6<1 T '-~ 'f ~
Carol T. Bayliss
Deputy Clerk, Board of Supervisors
Minute Book Number 27
Board of Supervisors Budget Worksession of 04/03101