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014-21 (OrdAmendmentChapter155Taxation(MealsTax) 7 -T 'F pGF ORDINANCE (Denied) August 11, 2021 The Board of Supervisors of Frederick County, Virginia hereby ordains that, effective October 1, 2021, Section 155-118 (Tax imposed) of Article XIX (Meals Tax) of Chapter 155 (Taxation) of the Code of Frederick County, Virginia be, and the same hereby is, amended by enacting an amended Section 155-118 (Tax imposed) of Article XIX (Meals Tax) of Chapter 155 (Taxation) of the Code of Frederick County, Virginia, as follows (deletion is shown in stFikethmu..h and addition is shown in bold underline): CHAPTER 155 TAXATION Article XIX Meals Tax § 155-118 Tax imposed. In addition to all other taxes and fees of any kind now or hereafter imposed by law, there is hereby levied and imposed on the purchaser of every meal served, sold= or delivered in the County by a restaurant or caterer a tax equivalent to 40/t, 6% of the amount paid for the meal. There shall be no tax if the total amount paid is less than $0.50; on larger amounts, a fractional cent of tax due shall be rounded to the next higher cent. MOTION TO DENY ADOPTION OF AMENDMENT CARRIED this 11th day of August, 2021. Charles S. DeHaven, Jr., Chairman Aye Shawn L. Graber Aye J. Douglas McCarthy Aye Robert W. Wells Aye Blaine P. Dunn Aye David D. Stegmaier Aye Judith McCann-Slaughter Aye A COPY ATTEST Mary Beth Vrice Interim Frederick County Administrator Res. No. 014-21 1 COUNTY OF FREDERICK ti s Roderick B. Williams County Attorney 540/722-8383 Fax 540/667-0370 E-mail rwillia@fcva.us MEMORANDUM TO: The Honorable Chairman and Members of the Board of Supervisors FROM: Roderick B. Williams, County Attorney DATE: July 19,2021 RE: Meals Tax Ordinance When the Board adopted the Fiscal Year 2022 earlier this year,the adopted budget provided for an increase in the meals tax from 4%to 6%, effective October 1, 2021. Unlike those taxes for which the Board must set rates on an annual basis, the County Code specifically sets out the rate for the meals tax. Accordingly, an amendment to the text of the County Code is necessary to complete the action for increasing the meals tax from 4% to 6%. Attachment cc: County Administration 107 North Kent Street • Winchester, Virginia 22601 FY 2021-2022 BUDGET RESOLUTION WHEREAS a notice of public hearing and budget synopsis has been published and a public hearing held on March 24, 2021, in accordance with Title 15.2, Chapter 25, Section 15.2-2506, of the Code of Virginia, 1950 as amended. THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Frederick, Virginia, that the budget for the 2021-2022 Fiscal Year as advertised in The Winchester Star on March 15, 2021, be hereby approved in the amount of$489,338,737. BE IT FURTHER RESOLVED that the County of Frederick budget for the 2021-2022 fiscal year be adopted and the funds appropriated as follows: A Non-School Categorical General Operating Fund $209,706,798 Regional Jail Fund 25,643,264 Landfill Fund 11,263,660 Division of Court Services Fund 473,935 Shawneeland Sanitary District Fund 981,768 Airport Operating Fund 2,023,033 Lake Holiday Sanitary District Fund 779,998 EMS Revenue Recovery Fund 1,984,041 Economic Development Authority Fund 647,926 School Operating Fund 194,975,704 Instruction Admin.,Attendance & Health Pupil Transportation Operations and Maintenance Food Services Facilities Transfers—School Nutrition&Textbook Funds Technology School Debt Service Fund 18,897,606 School Capital Projects Fund 1,900,000 School Nutrition Services Fund 7,827,466 NREP Textbook Fund 20,000 Consolidated Services/Maintenance Fund 3,600,000 School Private Purpose Funds 554,000 School Textbook Fund 2,749,321 NREP Operating Fund 5,214,217 BE IT FURTHER RESOLVED that the Board of Supervisors of the County of Frederick, Virginia, does herein adopt the tax rates for the 2021 assessment year as follows: Property Taxes-Rates per$100 of assessed value $0.61 Applied to real estate, including mobile homes Applied to personal property including $4'85 business equipment. Business Equipment assessed at 30°f of original cost. $2.25 Applied to personal property on one vehicle to volunteer firefighters that are approved and registered with the Frederick County Fire and Rescue Department $0.01 Applied to aircraft Zero tax Applied to antique vehicles and mopeds $2.00 On declining values to be applied to machinery and tools.The declining values are 60%for year one, 50%for year two,40%for year three, and 30%for year four and all subsequent years. $2.00 On apportioned percentage of boob values to be applied to Contract Classified Vehicles and equipment Computer Equipment& Peripherals used in a Data Center. The declining values are 50%for $1'25 year one, 35%for year two, 2014 for year three, 10%for year four and 5%for year 5 and subsequent years. Business and Professional Occupational license Rates Contractors $0.16 per$100 of gross receipts Retail $0.20 per$100 of gross receipts Financial, Real Estate, and Professional $0,58 per$100 of gross receipts Services Repair, personal and business services $0.36 per$100 of gross receipts and all other businesses and occupations not specifically listed or exempted in the County Code Wholesale $0.05 per$100 of purchases The tax rates for other businesses and occupations specifically listed in the County Code are also unchanged. Other General,Taxes 4% of gross receipts (Jan. 2021-Sept. 2021) Meals tax 6% of gross receipts (Effective Oct. 1, 2021) Transient Occupancy tax 3.5/4 of gross receipts Vehicle License Taxes $25 per vehicle and $10 per motorcycle Sanitary Landfill Fees $52 Per ton for commercial/industrial $47 Per ton for construction demolition debris $22 Per ton for municipal waste $40 Per ton for municipal sludge $17 Per ton for Miscellaneous Rubble Debris Shawneeland Sanitary District Taxes $190 Unimproved Lots $660 Improved Lots Lake holiday Sanitary District Taxes $678 Buildable Lots $264 Unbuildable Lots Lots owned by Lake Holiday Country Club, Inc. $0 Buildable Lots and Unbuildable Lots Star Fort Subdivision Taxes/Fees $60 Per Lot Street Light Fees Oakdale Crossing $40 annually Fredericktowne$42.50 annually Green Acres $25 annually BE IT FURTHER RESOLVED that appropriations are hereby authorized forthe central stores fund, special welfare fund, comprehensive services fund, county health insurance fund, school health insurance fund, length of service fund, special grant awards fund, employee benefits fund, maintenance insurance fund, development project fund,sales tax fund, commonwealth sales tax fund, unemployment compensation fund, f=orfeited Assets Program, Four-For-Life Funds, Fire Programs, and Economic Incentive funds equal to the total cash balance on hand at July 1, 2021, plus the total amount of receipts for the fiscal year 2021-2022. The County Capital Fund and Fire Company Capital appropriation will include the current year appropriation plus any unused funds at the end of the fiscal year 2021. The County Capital appropriation shall include funds transferred to other capital funds for classification purposes. BE IT FURTHER RESOLVED that funding for all outstanding encumbrances at June 30, 2021, are re-appropriated to the 2021-2022 fiscal year to the same department and account for which they are encumbered in the 2020-2021 fiscal year. BE IT FURTHER RESOLVED that the construction fund projects are appropriated as a carryforward in the amount that equals the approved original project cost, less expenditures and encumbrances through June 30, 2021. Upon motion made by Supervisor Slaughter and seconded by Supervisor Stegmaier, the above resolution was passed by the fallowing recorded vote: Charles S. DeHaven,Jr. Aye Blaine P. Dunn No Robert W. Wells Aye David D. Stegmaier Aye Shawn L. Graber No Judy McCann-Slaughter Aye J. Douglas McCarthy No A COPY TESTE: Kris C. Tierney Clerk, Board of Supervisors County of Frederick, Virginia BOS Res. #081-21 MINUTES BUDGET WORK SESSION FREDERICK COUNTY BOARD OF SUPERVISORS WEDNESDAY, MARCH 3,2021 5:30 P.M. BOARD ROOM, COUNTY ADMINISTRATION BUILDING 107 NORTH KENT STREET, WINCHESTER, VIRGINIA ATTENDEES Board of Supervisors: Charles S. DeHaven, Jr., Chairman; Blaine P. Dunn; Judith McCann-Slaughter; J. Douglas McCarthy; David D. Stegmaier; and Robert W. Wells were present. Shawn L. Graber was absent. Finance Committee Citizen Members: Angela L. Rudolph-Wiseman; Jeffrey S. Boppe; and Gary R. Oates School Board and Staff Members present: Michael Lake, Board Member; Frank Wright, Board Member; Dr. David Sovine, Superintendent; Dr. Al Orndorff, Assistant Superintendent; Dr. James Angelo, Assistant Superintendent for Instruction; Patty Camery, Executive Director of Finance; and Kristen Anderson, FCPS Budget Supervisor; County Administration Staff present: Kris C. Tierney, County Administrator; Jay E. Tibbs, Deputy County Administrator; Erin Swisshelm; Assistant County Attorney; Cheryl Shiffler, Director of Finance; Jennifer Place, Risk Manager/Budget Analyst; Sharon Kibler, Assistant Director of Finance; Bill Orndoff, Treasurer; Seth Thatcher, Commissioner of the Revenue; Sheriff, Steve Majchrzak, Fire Chief, Karen Vacchio, Public Information Officer; Scott Varner, Director of Information Technology;Jason Robertson, Director of Parks and Recreation;Wayne Corbett,Chief Deputy Treasurer; Candice Perkins,Assistant Planning Director; and Ann W. Phillips, Deputy Clerk to the Board of Supervisors. CALL TO ORDER Chairman DeHaven called the meeting to order at 5:30 p.m. Minute Book 46 Board of Supervisors Budget Work Session of March 3, 2021 County of Frederick; Virginia SCHOOL BUDGET DISCUSSION Dr. Sovine reviewed his proposed budget noting that 85%, about $8.3 million, of the proposed funds were intended for salary and benefits. Vice Chairman Wells and Dr. Sovine discussed the proposed new positions of Equity Diversity Coordinator and Title IX Coordinator. Dr. Sovine explained the equity initiative. Supervisor Stegmaier and Dr. Sovine discussed the tiered system of support under the equity initiative and the County's graduation rates. Supervisor McCarthy, Dr. Sovine, and Ms. Camery discussed possible state funds for a 5% salary increase for school staff, funding for pre-school programs, and the option to focus on salaries instead of new programs. Supervisor Dunn, Dr. Sovine, and Dr. Omdorff discussed the difference between School Security Officers and School Resource officers Supervisor Dunn and Dr. Sovine discussed funds spent on initial plans for a fourth high school, the need for pre-school programs, the need for the Deep Equity program, and changes in school building capacity rates. Finance Committee Member Oates and Dr. Sovine discussed the growth of the student population. Commissioner of the Revenue Thatcher, Dr. Sovine, and Dr. Orndorff discussed the most recent capacity review. DISCUSSION OF MEALS TAX IMPLEMENTATION Mr. Thatcher said after conferring with the Treasurer and the staff in the Commissioner's office, he suggests allowing six months after notice of a meals tax increase before implementation. Should an increase be approved, he suggested that January 1 would be the optimal start date. Supervisor Dunn inquired if the tax increase could be implemented sooner than six months, Mr. Thatcher said it can be done but year-end would be more favorable to the affected businesses. Minute Book 46 Board of Supervisors Budget Work Session of March 3, 2021 County of Frederick, Virginia REMARKS FROM THE TREASURER Treasurer Orndoff offered remarks encouraging the Board to provide salary increases to County employees in light of no increase being given the previous year, the staffs performance during the pandemic, and the favorable state of both County revenues and the fund balance. BUDGET SCENARIO OVERVIEW Mr. Tierney reviewed the updated budget scenarios. Vice Chairman Wells spoke in favor of Scenario D2. Committee Member Oates spoke in favor of Scenario D2, Supervisor McCarthy spoke in favor of the earlier implementation of the meals tax increase and in support of Scenario D2. Supervisor Slaughter spoke in favor of Scenario D2. Supervisor Dunn spoke in favor of Scenario Al citing effect tax increases over the years. He stated the need for a funding source besides the real estate tax rate. The Board and staff discussed funding the reserve fire engines. Supervisor Stegmaier spoke in favor of Scenario D2 adding that his constituents are pleased with County services. Chairman DeHaven relayed Supervisor Graber's remarks in favor of Scenario A and his continued desire for a joint meeting with the School Board, Chairman DeHaven spoke in favor of Scenario D2. OTHER ITEMS Supervisor Dunn stated his desire to assist the volunteer companies to aid in the County's ability to respond. Supervisor Dunn said that Supervisor Graber should be reimbursed for funds spent on his FOIA requests to the Schools. Mr. Thatcher confirmed that a meals tax increase could be implemented on October 1 if the Board desires. Minute Book 46 Board of Supervisors Budget Work Session of March 3, 2021 County of Frederick, Virginia The Board agreed by consensus to direct staff to advertise the tax rates as specified in Scenario D2. ADJOURN At 7:35 p.m., Chairman DeHaven adjourned the meeting. Charles S. DeHaven, Jr. Kris C.Tierney Chairman, Board of Supervisors Clerk, Board of Supervisors Minutes Prepared By: Ann W. Phillips Deputy Clerk, Board of Supervisors Minute Book 46 Board of Supervisors Budget Work Session of March 3, 2021 County of Frederick, Virginia MINUTES BUDGET WORK SESSION FREDERICK COUNTY BOARD OF SUPERVISORS WEDNESDAY, FEBRUARY 10,2021 5:00 P.M. BOARD ROOM, COUNTY ADMINISTRATION BUILDING 107 NORTH KENT STREET, WINCHESTER, VIRGINIA ATTENDEES Board of Supervisors: Charles S. DeHaven, Jr., Chairman; Blaine P. Dunn; Judith McCann-Slaughter; J. Douglas McCarthy; David D. Stegmaier; Shawn L. Graber; and Robert W. Wells were present. Finance Committee Citizen Members:Angela L. Rudolph-Wiseman Jeffrey S. Boppe; and Gary R. Oates were absent. Staff present: Kris C. Tierney, County Administrator; Jay E. Tibbs, Deputy County Administrator; Roderick B. Williams, County Attorney; Scott Varner, Director of Information Technology; Cheryl Shiffler, Director of Finance; Jennifer Place, Risk Manager/Budget Analyst; Sharon Kibler,Assistant Director of Finance; Bill Omdoff,Treasurer; Seth Thatcher, Commissioner of the Revenue; Jason Robertson, Parks and Recreation Director; Karen Vacchio, Public Information Officer; and Ann W. Phillips, Deputy Clerk to the Board of Supervisors. CALL TO ORDER Chairman DeHaven called the meeting to order at 5:03 p.m. DISCUSSION OF NEW POSITIONS— PARKS AND RECREATION DEPARTMENT Jason Robertson, Parks and Recreation Director, reviewed his request for position realignments and new positions. BUDGET SCENARIO OVERVIEW Mr. Tierney reviewed the budget scenarios. The Board discussed a possible increase in the meals tax rate. The Board discussed the state Board of Education's Required Local Effort/Required Local Minute Book 46 Board of Supervisors Budget Work Session of February 10,2021 County of Frederick, Virginia Match and the County's current contribution being nearly three times the required amount. ADJOURN At 5:49 p.m., Chairman DeHaven adjourned the meeting. Charles S. DeHaven,Jr. Kris C.Tierney Chairman, Board of Supervisors Clerk, Board of Supervisors Minutes Prepared By: Ann W. Phillips Deputy Clerk, Board of Supervisors Minute Book 46 Board of Supervisors Budget Work Session of February i 0,202 i County of Frederick, Virginia