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February 3 2016 Budget Work Session with Finance Com Minutes234 A Budget Work Session of the Frederick County Board of Supervisors and Finance Committee was held on Wednesday, February 3, 2016 at $:00 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 PRESENT Finance Committee member 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. William ©rndoff, Jr.; Finance Director Cheryl B. Shiffler; Assistant Finance Director Sharon Kibler; Budget Analyst Jennifer Place; Rod Williams, County Attorney; Superintendent of Schools Dr. David Bovine; Assistant Superintendent of Administration Dr, Al Oxndorff; School Board Member Mike Lake; and Executive Director of Finance for Frederick County Public Schools Lisa Frye. CALL TO ORDER Chairman DeHaven called the work session to order. Administrator Garton reviewed the materials that had. been distributed to include: - 10 year history of revenues; - 5 year history of unassigned Fund Balance; and - Position allocation chart. She advised that staff was seeking guidance regarding capital funding, She recommended using $7 million from Fund Balance for one time capital expenditures to be split between the schools and the county on the usual 53 % -47% allocation or $4 million and $3 million respectively. She advised the Board could choose to fund the capital now or as part of the FY 2017 budget. Supervisor Dunn stated he was willing to address the school needs now but was not ready to address the county needs at this time. Supervisor Hess stated if the school's needs were best met by a transfer this year then he was supportive. He noted the more some of these items get postponed them more expensive they will get. Supervisor Wells suggested moving ahead with the capital requests. Minute Book Number 41 Board of Supervisors Budget Work session with Rinance Committee on OZ103/16 zs� Supervisor Fisher stated he could support using Fund Balance for capital needs if we stop using it for the operating budget. Supervisor Dunn stated he had some reservations about allocating the funding, but suggested giving the schools the $5.2 million to address their needs and leave the capital requests for the county until next year. Supervisor Hess noted some of the capital needs on the county side were capital needs identified in last year's budget. Supervisor Slaughter stated she was not. inclined to fund the full $5,2 million at this time. She stated she was okay with $4 million, but felt the remainder should be off -set by cost savings in other areas. Dr. Sovine expressed his appreciation fox the dialogue and support. Chairman DeHaven polled the Board for a consensus to advertise a public hearing on a budget amendment for the Board's February 24, 2016 meeting, it was noted the Board. would take formal action to ratify this consensus at its February 10, 2016 meeting. Supervisors DeHaven, Fisher, Slaughter, Wells, Hess, and Lofton agreed with advertising the public hearing. Supervisor Dunn stated he still had some reservations about appropriating the entire $7 million. Supervisor Slaughter asked if the Board could fund the school's request with a supplement appropriation and deal with the County's requests as part of the budget process. Administrator Garton responded yes. Supervisor Fisher suggested the County consider using any excess funds at the end of the year for capital prajects similar to what the schools have done. Administrator Garton reviewed various funding. scenarios. She stated that she did not see how she could bring forth a budget without some sort of tax increase if there was to be no use of Fund Balance funding. She concluded by saying she was seeking guidance from the Board.. Supervisor Dunn noted that in 2003 -2004 the real estate tax rate was $0.731$100. He stated he was open to a slight tax increase, but his primary concern was the debt. If the debt were reduced over 5�8 years the county could have an additional $15 million in revenue. He would like to see the amount of debt reduced and suggested setting aside some funds in Fund Balance for future building needs. Minute Boak Number 41 Board of Super�isars Budget Wark Session with Finance Cammittee an 02/03/16 �3 Supervisor Fisher stated he did not like a tax increase, but noted there were a number of things that had been put off far some time. He stated the Board should look at a modest tax increase because he did not see how we could keep doing what we are doing. He concluded by saying he wished the rate had been kept the same last year versus rolling back to revenue neutral. Supervisor Wells noted everything was getting more expensive now. He congratulated the prior boards on keeping the rates low, but eventually things catch up to you. He concluded by saying we need to look at a modest tax increase. Supervisor Hess agreed some sort of tax increase was necessary. He went on to say we might have to spend some money today, but we can keep the rates lower for a longer term. Chairman DeHaven noted we have public safety needs that need to be addressed and he expected to see a tax increase in the budget presentation because we have needs to be addressed. Supervisor Slaughter stated she was not opposed to taking money out of Fund Balance until we know where we are going with Fire &Rescue. She hoped the Fire &Rescue discussions would take place. Supervisor Dunn stated if the Board goes through with a tax increase then he would like to sec some sort of debt reduction. He went on to say that he would like to see the County set some standard for vehicles because buying in bulk can help reduce the price. He did not think a salary increase was appropriate this year, but he would Iike to see the numbers. Supervisor Dunn also suggested the Board look at a salary increase far board members, not this year; but next year. Administrator Garton asked if the Board would be willing to cancel the February 17, 2016 budget work session due to a scheduling conflict. Chairman DeHaven recommended rescheduling the work session. He stated this is a tough cycle and we need to be about it. It was also suggested the Board look at rescheduling the March 2, 2016. work session due to a scheduling conflict for a board member. There being no further discussion, the work session adjourned at 9:58 A.M. ti Charles S. DeHaven, Jr. Chairman, Board of Supervisors Minute Book Dumber 41 Board of Supervisors $udget Work Session with Finance Committee on U2/03f15 Brenda . G rton Clerk, Board of Supervisors CJ� �. -_ Minutes Prepared sy: � _ ` Jay + T' bs Deputy Clerk, Board of Supervisors Minute Book Number 41 Board of Supervisors Budget Work Session with Finance Committee on ©2103116