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January 20 2016 Budget Work Session with Finance Com Minutes��� A Budget Work Session of the Frederick County Board of Supervisors and Finance Committee was held an Wednesday, January 20, 2016 at 5;15 A.M., in the Board of Supervisors' Meeting Room, 107 North Kent Street, Winchester, Virginia. PRESENT Chairman Charles S. DeHaven, Jr.; Vice- Chairman Gene E. Fisher; Blaine P. Dunn; Robert A. Hess; Gary A. Lofton; Judith McCann - Slaughter; and Robert W. Wells. OTHERS FRESENT Finance Committee members Angela Rudolph, and Bill M, Ewing; Brenda G. Garton, County Administrator; Kris C. Tierney, Assistant County Administrator; Jay E. Tibbs, Deputy County Administrator; Commissioner of the Revenue Ellen Murphy; Treasurer C. Williaxrl Orndoff, Jr.; Finance Director Cheryl B. Shiffler; Assistant Finance Director Sharon Kibler; Budget Analyst Jennifer Place; Superintendent of Schools David Bovine; School Board Member Mike Lake; Executive Director of Finance for Frederick County Public Schools Lisa Frye; and Handley Regional Library Business Manager Ann White. CALL TO ORDER Finance Committee Chairman Judith McCann- Slaughter called the work session to order. County Administrator Brenda Garton reviewed the contents of the Board's and Finance Committee's notebooks. She advised that she would be working with an internal staff committee in order io put together a balanced budget for the Board's consideration. She noted that the initial proposal contained a �4.1% salary increase for employees on both the School and General Fund sides, She reviewed the various funding scenarios,. which reflected various use of fund balance and/or possible tax increases. Administrator Garton stated she would not recommend using fund balance to fund operating costs, She concluded by reviewing the School Board's proposed budget, which reflected an increase in State funding of $1,726,.000 but also requested an additional $10 million in local dollars. Chairman DeHaven suggested starting with questions if anyone had any. Supervisor Slaughter stated she understood that $0.01 on the tax rate equated to approximately $800,000. She asked about the current fund balance level. Finance Director Shiffler responded that based on GFOA practices the County's fund balance should be approximately $25 -$26 million. She noted that the County currently has $39 million in unreserved fund balance. Minute Boak 1Vumber 41 Board of Supervisors Budget Work Session with Finance Committee on 01/20/15 �� Ms. Rudolph slated that she liked the format of the materials this year. Supervisor Hess stated that he thought a fund balance policy should be part of the budget discussions. He went on to say there were ways to keep the tax rate low over a longer period of time if funds were purposely allocated to fund balance. He stated there was a need to contribute to reserves and /or capital needs. Supervisor Hess also suggested there was a need to look at the personal property tax rate as part of this process. Supervisor Slaughter asked if the schools had included the Governor's proposed increases. Executive Director of Finance Lisa Frye responded yes, it was factored in. Supervisor Slaughter asked if the schools would feel that increase this year or next year. Executive Director of Finance Frye responded they would see $1.8 million this year and. more the next year. Supervisor Hess asked io have updated versions of materials have revision dates on each so it would be easier to track changes. Administrator Garton noted the schools had identified $5.1 million of very critical items in their budget. There being no further discussion, the work session was adjourned at 9:13 A.M. Charles 5. DeHaven, Jr. rends G. Garton Chairman, Board of Supervisors Clerk, Board of Supervisors Minutes Prepared By: �,,� �_ "`�' "'� `,,� Jay E. ibb Deputy Clerk, Board of Supervisors Minute Book Dumber 41 Board of Supervisors Budget Work Session with Finance Committee on 02/24/16