066-04
BOARD OF SUPERVISORS
RESOLUTION
FISCAL YEAR 2004-2005 BUDGET AMENDMENT
WHEREAS, the Frederick County Board of Supervisors, meeting in regular session and
public hearing held on June 9, 2004, took the following action:
NOW, THEREFORE, BE IT RESOL YED, by the Board of Supervisors that the FY 2004-
2005 Budget be Amended to Reflect:
School Operating Fund in the Amount of$2,188,846. These Funds Represent Additional
State Funds Received After the Adoption of the Fiscal Year 2004-2005 Budget.
ADOPTED, this 9th day of June, 2004.
Upon motion made by Gina A. Forrester and seconded by Barbara E. Van Osten, the above
was approved by the following recorded vote:
Richard C. Shickle Aye Lynda J. Tyler Aye
Barbara E. Van Osten Aye Bill M. Ewing Nay
W. Harrington Smith, Jr. Aye Gary W. Dove Nay
Gina A. Forrester Aye
A COPY TESTE:
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Resolution No.: 066-04
Original: Cheryl B. Shiffler, Finance Director
cc: C. William Orndoff, Jr., Treasurer
Lisa Frye, School Finance Director
Dr. William C. Dean, School Superintendent
COUNTY of FREDERICK
John R. Riley, Jr.
County Administrator
TO:
~
Board of Supervisors & Finance Commi*e
, .
John R. Riley, J" County Mmin~~
June 20, 2004 . (j
540/665-5666
Fax 540/667-0370
E-mail:
jriley@coJrederick.va.us
FROM:
DATE:
SUBJECT: Budget Funding
After the joint meeting with the School Board, Board of Supervisors and Finance Committee, we
felt that it was important to present to the Board of Supervisors a projected FY 2006 budget
scenario. This memo is not about trying to discredit the needs expressed by the School Board at
yesterday's meeting. It's about projecting what we as a county will be facing in only six months
and to give the Board of Supervisors the opportunity to be better prepared when faced with the
requests for supplemental appropriations.
The attached projected FY 2006 budget scenario causes concern. The funding projections are
based on the needs that were expressed by the School Board and the current level of increase for
general fund requests. The projected general fund requests are understated since the current
increase in funding represents substantial cuts that could require funding in the upcoming
budget.
In summary, to fund what will be requested, the county could be facing a 46 cent real estate tax
increase and perhaps an even greater tax increase to fund items that have been cut in prior years.
This amount of increase will significantly' impact county taxpayers and result in increasing the
real estate tax rate by over 63%. It was also mentioned at yesterday's joint meeting the
possibility of increasing the personal property tax rate as a result of the changes the state is
making to the Personal Property Tax Relief Act. Details and the implications of these changes
continue to be analyzed.
The FY 05 budget has been adopted. It may be advantageous for us to look at the FY 06 budget
before approving any supplemental appropriations.
If you have any questions, please feel free to call me.
107 North Kent Street . Winchester, Virginia 22601-5000
Fiscal Year 2006 Projected Budget Scenario
Projected growth related increase in General Fund revenue
Increase from recognizing 20% increase (14 cents) in reassessment
(actual increase of 20% generates 5.6 million, but only
2.8 million is available as new revenue)
New Revenue
Prior Year Funding from Fund Balance
New Revenue available for FY 06 increased expenditures
Projected increase in School Operating and Debt expenditures:
Debt service increase - schools
Cost to open 3rd Middle School
Anticipated increase in additional school funding requests
Anticipated increase in additional other general fund requests
Projected increase in FY 06 state funding for Schools
Funding requested from Frederick County
New revenue available for FY 06 increased expenditures (see above)
Funding:
14 cent tax increase by recognizing 20% increase in reassessment
has already been included in the projected revenue in the amount
of 2.8 million. (See above)
32 real estate tax increase generates approximately 12.8 million
Total projected real estate tax increase: 46 cents or 63%
(The above amounts are based on the current real estate tax rate and
reflects an effective rate and percentage increase. )
4,000,000
2,800,000
6,800,000
-5.054.387
1,745,613
1,700,000
3,500,000
8,800,000
3.900.000
17,900,000
3.300.000
14,600,000
-1.745.613
12,854,387