HomeMy WebLinkAboutNovemver 2 2016 Minutes of Work Session with Finance Com1131
A joint work session of the Frederick County Board of Supervisors and Finance
Committee was held on Wednesday, November 2, 2016, at 8:00 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
County Administrator Brenda G. Garton, Deputy County Administrator for Community
Development Kris C. Tierney, Commissioner of the Revenue Ellen Murphy, Treasurer
C. William Orndoff, Jr., Finance Director Cheryl B. Shiffler, Assistant Finance Director
Sharon Kibler and Finance Committee member Bill M. Ewing.
CALL TO ORDER
Chairman DeHaven called the meeting to order,
The purpose of the joint meeting was to discuss proposed debt policies. This item came
from a September 14, 2016 presentation by Davenport &Company. The debt policy was one of
four policies recommended for development. The other policies were Reserve policies, Budget
Development policies, and Capital Improvement Budget policies.
It was noted the County currently does not have an adopted, formal debt policy. Items
for the Board and Committee's consideration as part of the proposed policy included:
1. Acceptable purposes for debt issuance.
2. Acceptable level of debt.
3. Debt maturity schedules.
4, Mix use ofpay -as- you -go and debt financing.
It was recommended that the following policy be forwarded to the Board of Supervisors:
Debt Management
Introduction
One of the keys to sound fiscal management is the development of a debt policy. The need is
included in both recommended practices by the Government Finance Officers Association and
by bond rating agencies.
Key Debt .Ratio Guidelines
• Tax Supported 10 -year Payout Ratio should be greater than 65 %. The 10 -year payout
ratio measures the amount of principal to be retired in 10 years.
• Debt to Assessed Value should be in a range not to exceed 0.75% - 1.75 %.
Minute Book Number 42
Board of Supervisors Work Session with Finance Committee of 11/02/16
County of Frederick, Virginia
132
• Debt Service vs. Governmental Expenditures Ratio should be in a range not to exceed 8-
12%. Governmental expenditures represent the ongoing operating expenditures of the
County and School Board. In this calculation, debt service and capital expenditures are
excluded from expenditures.
There being no further business, the meeting was adjourned at 9:22 AM.
Charles S. DeHaveu, Jr.
Chairman, Board of Supervisors
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renda G. Garton
Clerk, Board of Supervisors
Minutes Prepared By: ��.L� �' � �7,.��
Jay E. Tib
Deputy Clerk., Board of Supervisors
Minute Book Number 42
Board of Supervisors Work Session with Finance Committee of li /02/16
County of Frederick, Virginia