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February 22 2016 Budget Work Session with FinanceCom Minutes�4s A Budget Work Session of the Frederick County Board of Supervisors and Finance Committee was held on Monday, February 22, 2016 at 6:00 F.M., in the Board of Supervisors' Meeting Room, 147 North Kent Street, Winchester, Virginia. PRESENT Chairman Charles S. DeHaven, Jr.; Vice - Chairman Gene E. Fisher; Blaine F. Duna; Robert A. Hess; Judith McCann - Slaughter; and Robert W. Wells. ABSENT: Gary A. Lofton (Arrived at 6:15 P.M.} OTHERS PRESENT Finance Committee members Angela Rudolph and Bill M. Ewing; County Administrator Brenda G. Garton; Asslstant County Administrator Kris C. Tierney; Deputy County Administrator Jay E. Tibbs; Commissioner of the Revenue Ellen Murphy; Treasurer C. William Orndoff, Jr.; Finance Director Cheryl B. Sniffler; Assistant Finance Director Sharon Kibler; Budget Analyst Jennifer Flace; County Attorney Rod Williams; Superintendent of Schools Dr. David Sovine; School Board Members Mike Lake, Peggy Clark, and Frank Wright; Executive Director of Finance for Frederick County Public Schools Lisa. Frye; Handley Regional Library Director John Huddy; and Helen Lake. CALL 'T`4 QRDER Chairman. DeHaven called the work session to order. Administrator Garton began by reviewing the materials that were distributed to include revised tax rate scenarios, position allocation chart,. County capital requests, and outside agency requests. With regard to the revised tax rate scenarios, Administrator Garton advised that she had added a column reflecting a $0.12 tax increase, which would increase the school's portion of the tax. revenue. She advised that she would like to have some discussion on a proposal to increase the personal property tax rate on airplanes. She stated it was suggested that the rate be increased from $0.01 to $1.00, which would add about $75,040 in new revenue. With regard to the transient occupancy tax rate, should the county's proposed legislation allowing the cap to be raised pass, she recommended considering raising the rate from 2 °fo to 2.5 %, which would generate approximately $130,400, which could he used to fund tourism. Minute Book Number 4l Board of Supervisors Budget Work Session with Finance Committee on 02122/lb C4� Supervisor Hess asked staff to try to identify some other expenditures, which could be categorized as tourism and then increase the rate to more than .5 °lo to pay for Them. Administrator Garton advised the Board that unless she was directed otherwise she would be proposing a budget with a tax increase. Vice- Chairman Fisher stated he could not support an increase in the personal property tax rate on airplanes. He went on to say the airport was an economic development tool and this increase could have a negative effect. Supervisor Wells expressed his support for the airport. as an economic development tool. Commissioner Murphy advised that the reduction in the tax rate to $0.01 a few years ago had not resulted in a change in the number of aircraft at the airport. Chairman DeHaven stated he was opposed to a jump to $1.00 but he was open to discussion. Supervisor Lofton wanted a tax on pleasure aircraft that would make help to make the airport viable. He went on to say that he felt that rate should be $1.00. Vice - Chairman Fisher did not. support changing the rate. Chairman DeHaven stated he would be okay with $0.50. Mr. Ewing stated he could support $1.00 because pleasure aircraft needed to pay for some use of the airport.. He acknowledged that $75,000 was not a lot of money, but was more of a principle. He concluded by saying he would support $1.00 for advertising purposes. Supervisor Wells supported $1,00. Supervisor Dunn suggested going back to the prior rate of $0.42. Supervisor Hess supported $1.00, but he understood the importance of the airport from an economic development standpoint. Supervisor Slaughter stated she would like to have more information regarding planes and fuel sales. She went onto say that she was not disagreeing that this was a fairness issue. Supervisor Lofton stated he would like to have the EDA see what affect having an airport has on business location decisions. He concluded by saying chat compared to other personal property and pleasure vehicles the tax rate seems out of balance. Supervisor Dunn stated that he would like to see something put in this budget for debt reduction and he would like to see that money put against the principle in order to bring down costs, Minute Book Number Al Board of Supervisors Budget Work Session with Finance Committee an 42/22/16 248 Administrator Garton reviewed the position allocation chart, which was for approval by the HR Committee. Administrator Garton then reviewed the County's capital requests. Supervisor Dunn expressed support for funding the school's critical needs of $4.1, but he did not agree with funding the county side at this time. The Board briefly reviewed the outside agency requests to include thane agencies with an MOU or funding formula. They recommended not funding any new requests and no increases for those without a formula ox MOU. Chairman DeHaven opened the work session for Board comments. Supervisor Dunn stated he might agree with a tax increase, but would like to see $5 million toward debt only. Supervisor Hess hoped to advertise a higher rate than in the past as that would give time for additional discussion, There being no further discussion, the work session was adjourned at 7:27 P.M. - -� Charles S. DeHaven, Jr. Chairman, Board of Supervisors renda G. Garton Clerk, Board of Supervisors Minates Prepared By; '� �, `r Jay E. ilk, s Deputy Clerk, Board of Supervisors MinuCe Book Number 41 Board of Supervisors Budget Work Session with 1 <inance Committee on 02/22/16