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April 07, 1993 Special Meeting 260 A Special Meeting of the Frederick County Board of supervi- sors was held on wednesday, April 7, 1993, at ~:oo a.m., in the Board of Supervisors' Meeting Room, Frederick county courthouse, Loudoun Street Mall, Winchester, virginia. PPRgENT: Chairman Richard G. Dick; Vice-Chairman W. Harrington Smith, Jr.; James L. Longerbeam; Robert M. Sager; Beverly J. Sherwood; and Charles W. Orndoff, Sr. CALL TO ORDER The chairman called the meeting to order. RESOLUTION DESIGNATING FREDERICK COUHTY AS RESPONSIBLE APPLICANT FOR BLIZZARD OF 1993 COST RECOVERIES - APPROVED Upon motion made by W. Harrington smith, Jr., seconded by Robert M. Sager, and unanimously passed, the following resolu- tion was approved: BE IT RESOLVED by the Board of Supervisors of Frederick County, Virginia, that Thomas W. Owens, director of Fire and Rescue or Addison E. Slayton, Governor's Authorized Representa- tive, is hereby authorized to execute for and in behalf of Frederick County, a public entity established under the laws of the State of Virginia, this application and to file it in the appropriate State office for the purpose of Obtaining certain Federal financial assistance under the Disaster Relief Act (Public Law 288, 93rd Congress) or otherwise available from the President's Disaster Relief Fund. THAT Frederick County, a public entity established under the laws of the State of Virginia, hereby authorizes its agent to provide to the State and to the Federal Emergency Management Agency (FEMA) for all matters pertaining to such Federal disas- ter assistance the assurances and agreements printed on the reverse side hereof (on file in the county administrator's office). The above motion was passed by the following recorded vote: Richard G. Dick - Aye W. Harrington Smith, Jr. - Aye James L. Longerbeam - Aye Robert M. Sager - Aye Beverly J. Sherwood - Aye Charles W. Orndoff, Sr. - Aye BLIZZARD OF 1993 STAFF CRITIOUE MEETING Fire and Rescue Director Thomas Owens reported to the board that this meeting, as requested by the board in a previous meeting, has been set for Tuesday, April 13, 1993, in the Board of Supervisors' Conference Room. BUDGET WORKSESSION Supervisor Smith began the worksession by stating he wanted to set the media straight regarding the county's fund balance. He explained the county's account was set up like a checking 2S1 II account, you designate so much for "committed funds" and the remainder is to be used for "uncommitted funds" or unexpected cost. The fund balance for Frederick County for "uncommitted funds" has been budgeted in the amount of five to six million dollars and the county is planning to use about a million of those funds to help balance the budget. The management study and economist state that the uncommitted fund balance should be at least 10 percent of a locality's total budget. Since the county's budget is $80 million dollars, $8 million dollars should be held in uncommitted funds. School Board Budget School Superintendent Thomas Malcolm and School Finance Director James Boyd were in attendance and provided to the board documentation for the School Board's budget and to explain the major increases in the schools' budget amounting to $4,025,201 (this figure is inclusive of county money). The increases in school funds are outlined as follows: . $1,561,782 - start-up cost at Sherando and James Wood Middle schools; . $793,860 - four percent salary increase for teachers; . $165,282 - two percent salary increase for all other employees; . $220,231 - 15 percent increase in health insurance premiums (approximate amount, could be less but workmen's compensation will increase due to tragedy this year); . $917,081 - additional system positions (36); . $76,600 - increase in curriculum development and staff training; . $50,563 - increased payments to NREP & D.J. Howard; . $24,730 - four additional lease/purchased buses (purchase represents a cut of four buses from original School Board request of eight additional buses); . $271,072 - increase in fuel, insurance, supplies and other obligations (due to inflation of services); and . $56,000 is a decrease in payments to textbook fund. The 15 percent increase in health insurance premiums represents an estimated percentage until the exact percentage can be determined on the anniversary date of the School Board's health insurance plan. This percentage may be less, but due to a tragedy in this fiscal year, the workman's compensation rates 262 will increase. The county has used a figure of 25 percent but also hopes to be able to reduce this percentage. The schools and county participate in two different plans and explains the different percentages that have been used in the budget. Staff is trying to keep insurance premiums at present level but also provide to the employees the same benefits. The increase in the payments to NREP and D.J. Howard is due to an increase in student enrollment. Instruction James Boyd briefly explained the breakdown of the $3,160,274 increase in this category. The six percent increase in allocations for instructional supplies represents the instructional supplies that have been requested by teachers and equals about $12,000. This line item has been budgeted at present level for the past few years. Superintendent Malcolm presented to the board Mr. Rhodes transcript of statements he made at the Board of supervisors' public hearing meeting held in March, 1993. He referred to a particular statement made by Mr. Rhodes that "If there was 75 percent of the dollars going to the kids in this county directly as (a) form of education instead of almost the vice versa, maybe forty cents on the dollar (would) get to the classroom" was incorrect. Superintendent Malcolm explained this statement was false and the actual percentages for funding the School Board budget are as follows: . Instruction (includes personnel cost) Maintenance Transportation Administrative, Attendance, and Health 85% 5% 5% 5% . . . The superintendent also quoted a section from the manage- ment study: "The most readily apparent strength of the school system is its ability to provide a quality educational program for close to 8,700 students with a very lean top management structure that basically consists of the superintendent, the Assistant Superintendent for Administration, and the Assistant Superintendent for Instruction. In addition, strong supporting special staff members have been recruited in key areas such as Transportation and Finance. Also, appropriate author- ity and responsibility has been delegated to Princi- pals, which facilitates operating with a lean manage- ment structure." 263 supervisor smith stated the transcript of Mr. Rhodes statement from the public hearing was very misleading. supervisor Sherwood asked what the state average percentage was for administrative related cost and the superintendent replied that he believed the industry average was 3 or 4 percent and the School Board was one-half of that percentage. supervi- sor Sherwood went on to explain that the information she ob- tained showed the national average for administrative costs (based on actual expenditures-not people) was 4.6 percent and that the School Board was spending 5.4 percent. The report also showed Fauquier county's percentage in administrative expendi- tures was 4.0 percent which means they are below the national average. Superintendent Malcolm stated this was hard to believe since Frederick County's School Board budget, in total, was less than any of the surrounding counties. He did not understand why Fauquier county could be below the national average when their total budget was more than Frederick county's. Chairman Dick requested the superintendent to look into this matter and present his findings to the board. Administrative. Health. and Attendance In this category, the School Board was requesting an increase of $177,964 over last year's budget. Supervisor Orndoff asked if principals were included in this category. Superintendent Malcolm explained that principals are budgeted under the instruction category and have been budgeted to receive two percent increases. TeChnically, princi- pals should be receiving a four percent increase since the state has stated instructional personnel should receive same. Super- visor Orndoff also wanted to know if any new administrative positions were included in this category. Three positions were included in the budget, two in the instruction category - administrative assistant for middle school level and a position in Mrs. Taylor'S office as recommended by the management study; and the third is in the operations and maintenance category - assistant supervisor for buildings and grounds in Mr. Rickard's office as also recommended by the management study. There was 2~ some controversy between the board members regarding the manage- ment study and whether or not it had been accepted and adopted by the board and used for budget purposes. Supervisor Longerbeam asked to be put on record stating that when he was running for supervisor, he heard numerous comments regarding automobiles, top heavy administration in the school system, wasteful spending, etc. As a result, he suggest- ed that a management stUdy be prepared. He felt Public Adminis- tration Services prepared an intelligent study and believed the study was a very valid and credible document. He felt Frederick County had an excellent school system and government. Supervisor smith concurred with supervisor Longerbeam. He felt the study showed the county's strong points and weaknesses. Supervisor Orndoff stated he felt the consultants prepared the management study with the information submitted by the departments and felt it was a waste of county money. Supervisor Sherwood felt the board's comments should have been included in the management study before it was used for the budgetary process and asked that the management study be placed on the board's agenda for discussion. supervisor Sager asked that the 125 Plan be explained. Superintendent Malcolm stated the 125 Plan is a plan that allows employees to pay for certain services with pre-taxed dollars and allows the employee to save money and also helps the system save money. The employee estimates, as close to the amount as he or she can determine, what will be spent during the year for defined services, then payroll deductions are made before taxes and placed in a fund for payment of the defined services. If the employee does not spend or exceeds the amount deducted, a penalty is assessed and this procedure is an admonishment from the very beginning. County Administrator John Riley explained that the administration side was looking into this plan also. Transportation In this category, an increase of $311,797 was needed in additional funding. This figure represents two percent salary increases, 19 new positions (16 bus drivers, 2 bus driver L ~ ~5 assistants, and 1 mechanic), increased cost due to the addition of 14 buses, and funds to lease/purchase 14 additional buses. With the addition of one mechanic, outside repairs and mainte- nance services were reduced, along with vehicle insurance costs. with the addition of one mechanic, and since the new bus bay was cut from this budget to reduce funding, Superintendent Malcolm explained that rotating shifts would have to be set up to accommodate the need for more space. The buses included in this category was questioned. Superintendent Malcolm explained that the new buses were needed for the following reasons: 1. Increase in students, 2. Additional bus routes, 3. Plans to do away with early/late schedule, 4. Two high schools instead of one, 5. Three middle schools instead of two, and 6. The implementation of a tiered busing plan. The four buses that were cut from the original budget would have replaced old buses if purchased. If any additional buses have to be cut from this budget, it will effect the tiered busing plan along with other programs planned for this budget year (more detailed information was presented to the board and is on file in the county administrator's office). Maintenance In this category, an increase of $352,779 was needed in funding. This amount represents two percent increase for employees, seven new employees (5 custodians, 1 security guard, and a maintenance foreman), increase in health insurance, additional expenses for Sherando and costs for recycling servic- es, increase in repair and maintenance supplies, and replacement of equipment at Robert E. Aylor Middle School. The security guard positions were questioned in this category and Superintendent Malcolm explained the schools currently have one security guard assigned to the James Wood Ridge campus and his responsibilities include: monitoring the school parking lot, transportation agent from James Wood Ridge 266 to James Wood Amherst, traffic control at Amherst campus (city does not provide these services because of shortage in staff), monitors all schools in the summer when they are empty, and provides security at night (athletic and dance events). The ne security guard position in this budget will be assigned to Sherando High School. Facilities In this category, an increase of $15,200 was needed in additional funding. The $25,800 total amount budgeted in this category represents architect fees to allow drawing of bid specifications and consultations on building or repair projects to existing buildings (heating, air-conditioning, roof, etc., problems). School Food Services In this category, an increase of $17,241 was needed in additional funding. The total amount of $511,185 budgeted in this line item is formula driven using anticipated students for the budget year. This category is offset by State and Federal revenues. Transfers to Other Funds In this category, a decrease of $10,054 was budgeted. This figure represents an increase of $45,841 of funds needed for transfer to D. J. Howard and a decrease of $55,895 for transfers to the School Textbook Fund. General Supervisor Sherwood questioned why there were more drivers budgeted (16) than buses (14). Four of the 16 positions are full-time substitutes and two of the 14 buses are activity buses and do not need full-time positions. Supervisor Sager asked what percentage of total county vehicle maintenance was handled by school personnel. Superin- tendent Malcolm could not quote a percentage but stated that if any mechanic positions were cut, it would be impossible for the staff to handle the work load. Superintendent Malcolm stated, for the record, he would like the board to review the information he presented regarding ~ 267 II a budget survey that was conducted of how other school divisions were funded (on file in the county administrator's office). One of the results showed that out of the 23 divisions surveyed, no one did or heard of producing a surplus during the current budget year to balance the fOllowing year's budget. Chairman Dick stated that he will be appointing, after the April 14th board meeting, a commission, consisting of a member of the Board of supervisors, school Board, and a private citi- zen, to look at budget formulas for funding the school system, etc., and make a recommendation to the board for possible implementation. supervisor Sherwood asked if the School Board had purchased property yet with the bonds that had been approved. She felt the School Board could wait to purchase property. The School Board has not purchased the property but superintendent Malcolm explained that the longer you wait to purchase land the more expensive it will be. The application for bond sales in the amount of $5,740,000 approved by the board in February was to: 1. $2,840,000 to finish the Sherando project (includes $850,000 to county for park projects, $500,000 bor- rowed to do roof repairs) and is scheduled to be under budget; 2. $1,000,000 to finish the James Wood Ridge conversion; 3. $700,000 to covert James Wood Amherst into a middle school; and 4. $1,200,000 to purchase generic land (possible third high school, elementary school, or a transportation department). The bond sale is set for April 14th and Superintendent Malcolm explained to cancel the land sales, at this late time, would cause implications to the county. The implication of the land component is $148,000 in debt service for next year. Administration Budqet John Riley presented to the board the budget proposed for FY 93-94 to date. He suggested various cuts that could be made to the budget that would reduce the total expenditures and would require a 12 cent real estate tax increase to balance same (included a $1,000,000 cut to the School Board but $500,000 268 would be returned in December - this amount would equal salary increases for school employees). At this time, the board reviewed the individual department funding requests and the following discussions and actions took place. Committee to studv Countv Supplements to Constitutional Officers and Staff - APPROVED Chairman Dick requested that county supplements to consti- tutional officers be cut. Since the Clerk and Commissioner of Revenue receive no county funds, he felt no constitutional officer should receive supplemental funds from the county. The board was not clear at this time the impact this would have on the departments and requested further study before a motion or vote could be made to cut this funding. Upon motion made by James L. Longerbeam, seconded by W. Harrington Smith, Jr., to appoint a committee to study county supplements to constitutional officers and staff and make a recommendation for the next fiscal budget process. The above motion was approved by the following recorded vote: Richard G. Dick - Nay W. Harrington Smith, Jr. - Aye James L. Longerbeam - Aye Robert M. Sager - Nay Beverly J. Sherwood - Aye Charles W. Orndoff, Sr. - Aye Chairman Dick stated that he felt the board was being reluctant to live up to their responsibilities. Supervisor Longerbeam stated that he was willing to face responsibility but he felt it should be done in a rational way. Countv Administrator's Fund Assistantcountv Administrator's position - POSITION NOT TO BE FIT.urn AT THIS TIllE The assistant county administrator's position will be vacant effective May 3 and Robert M. Sager moved to freeze the position and Charles W. Orndoff, Sr., seconded the motion. Supervisor Sherwood was concerned about the workload that would be placed upon the county administrator. The county administra- tor requested that funds be available to hire extra help if the workload became to much even with the help of existing staff. 269 Supervisor Smith requested that the term "freeze" not be used i the motion. Upon motion made by Robert M. Sager, seconded by Charles w. Orndoff, Sr., to amend the above motion that the assistant county administrator's position will not be filled during the present fiscal year. The above motion was passed by the following recorded vote: Richard G. Dick - Aye W. Harrington Smith - Aye James L. Longerbeam - Aye Robert M. Sager - Aye Beverly J. Sherwood - Aye Charles W. Orndoff, Sr. - Aye Board of Assessors General Reassessment To Be Delaved One Year - DENIED Beverly J. Sherwood moved and James L. Longerbeam seconded to delay the general reassessment for one year due to the economy. The above motion was denied by the following recorded vote: Richard G. Dick - Nay W. Harrington smith - Nay James L. Longerbeam - Aye Robert M. Sager - Nay Beverly J. Sherwood - Aye Charles w. Orndoff, Sr. - Aye Electoral Board and Officials Miscellaneous equipment budgeted in this fund represents the need for additional voting machines. Inspections The contractual services budgeted in this fund will be cut $12,600 as requested by the public works director in his memo- randum submitted to the board during this worksession. Fire and Rescue Supervisor Sherwood asked about the return of funds for E-911. John Riley stated legislation that has gone through the General Assembly is still being evaluated to determine how the money can be spent. Intentions are to try and spend these funds more for operational expenditures instead of capital expendi- tures, to include dispatchers and continuing cost to run E-911. The city is fiscal agent and a number of items are being negoti- ated, creating a central communications board to oversee the 210 ntire operation, but not much progress is being made. The tariff funds that are going into E-911 are not being at this time until such an agreement is adopted with The $185,000 budgeted relates to E-911 calls and of the computer system. The initial $130,000 invest- for E-911 has been recouped through E-911 fees but funds in budget represent payments to central dispatch for the E-911 ortion of the budget. Two Firefiahters to be Hired for Reynolds store Fire Companv in FY 93-94. One position to Beain in Julv. The Second in Januarv - APPROVED John Riley stated first intentions were to hire an assis- tant fire marshal at $58,000 (includes outfit and vehicle) but after further review it was determined that two career fire- fighters should be hired instead to cover the northwestern section of the county. Costs for two firefighters would be approximately $50,000 (includes fringes) and these funds would ave to be added to the budget. Information was sent to the board members regarding re- sponse statistics but some board members did not recall receiv- ing same and asked that this information be forwarded to them as soon as possible. Upon motion made by Beverly J. Sherwood, seconded by James L. Longerbeam, to hire two new firefighters for FY 93-94, one position to begin in July and the second in January, and will be assigned to the Reynolds Store area, and $50,000 be appropriated for same. The above motion was passed by the following recorded vote: Richard G. Dick - Nay W. Harrington Smith, Jr. - Aye James L. Longerbeam - Aye Robert M. Sager - Nay Beverly J. Sherwood - Aye Charles W. Orndoff, Sr. - Aye Refuse Collection In this fund, the lease purchase of two additional compac- tors/containers was budgeted. General Engineering A memorandum from the director of public works was present- ed to the board members with suggested cuts to funds that follow 271 under this category. The cuts were as follows: $12,600 in inspections, $26,600 in engineering ($20,000 for stormwater improvements), $5,500 in refuse collection, $2,800 in litter control, $20,564 in county office buildings, $1,000 in animal shelter, and $87,300 in landfill refuse disposal (this amount does not effect general fund). Following further discussion, the board agreed that $20,000 for stormwater improvements and $20,564 for county office buildings should not be cut from this fund. Parks and Recreation In this fund, $50,000 of total budgeted funds are related to the Sherando School project. Sherando Park Line item 10-7110-7900 was reduced to $2,590 (department originally requested $132,590) as the underground walkway project was eliminated by staff. Economic Development The major increases in this budget represents the hiring of a research analyst last year which was paid for with private and IDA funds at no cost to the taxpayers, along with advertising to attract interested graphic and printing businesses, and contrac- tual services with the Chamber of Commerce for tourism. Gypsv Moth Funds in the amount of $15,000 were cut from this budget (as suggested by the gypsy moth coordinator) before it was submitted to the board and included: $2,000 from line item 1005-000 (Compensation of Extra), $10,000 from 3002-000 (Profes- sional Services), $500 from 4003-001, $500 from 5401-00 (Office supplies), 1,000 from 5413-00 (Other operating Supplies), and $1,000 from 5506-00 (Travel). At this time the board concluded the review of the budget and the following discussions and actions took place. Supervisor Smith stated that a lot of work went into the budget this year and he felt negotiations were handled well. He thanked everyone who was involved in the budget process for their hard work. 212 supervisor Orndoff questioned superintendent Malcolm about the land already owned by Frederick county and what they plan to do with it. Superintendent Malcolm stated the county would either keep it or declare it surplus and sell it but he felt the purchase was a good idea at the time because development was up in Frederick county and it was thought a new elementary school would be needed (Gainesboro school was reopened and development slowed down). superintendent Malcolm felt it would be a good idea to hold on to the land because it will be needed within the next ten years or so and to sell now and buy later would be more costly to the county. supervisor Sager stated he attended this worksession to reduce the budget and that previous sessions should have been used to address any and all increases, as well as personnel. Supervisor Sherwood stated the welfare and education of the children of Frederick County was very important to her. She did not want their education to be effected by decisions that had to be made by the two boards. She felt there were ways to cut expenses in areas that would not effect the programs that were planned for next year and hoped the $1,000,000 proposed to be cut from their budget would not do this. Chairman Dick stated the board tries to do what's best for the citizens of Frederick county. He hoped the committee appointed to look at funding strategies would help the communi- cation process between the School Board and Board of supervisors and save a lot of misunderstanding during the entire process. He also expressed his appreciation to Superintendent Malcolm and staff, teaching profession and the School Board, for a job well done but the county had to do what they could afford. Supervisor Longerbeam felt the ultimate decision was based on what was fair to the taxpayers of Frederick County. At this time, there were too many demands and not enough money. He felt that if the county had the money to fund the School Board's first budget request, the county would have done so. 273 Supervisor smith reminded the board that he felt it was a mistake the year the tax rate was set at 43 cents. He hoped next year the board could do better to fund budget requests. Superintendent Malcolm stated this was the worst budget process he had experienced, both emotional and physical. He would support anything the board could do to de-emotionalize the budget process. He asked that the $1 million cut from the School Board's budget be done in a lump sum and not categorical- ly so the School Board could meet and give him some direction before the final action of the board on the budget scheduled for April 14. FINANCE TO PREPARE BUDGET RESOLUTION TO INCREASE FREDERICK COUNTY REAL ESTATE TAX RATE 12 CENTS - APPROVED John Riley briefly outlined the cuts and additions made by the board during this worksession. They are as follows: Cuts 1. $165,000 - capital and Operating Reserve; 2. $195,000 - salary increases of 4 percent delayed until mid year; 3. $200,000 - resigned positions (inClUdes fringes); 4. $28,500 - additional engineering cuts (does not include stormwater and Old J. C. penneys and Gore school funds); and 5. $1,000,000 - School Board funding (equals salary increases for employees but funds should be cut as directed by the School Board). Additions 1. $50,000 - two new firefighter positions; and 2. $500,000 to School Board in mid December. with the changes to the budget as described above, a 12 cent real estate tax increase was proposed by the county admin- istrator to balance the budget for Fiscal Year 1993-1994. Upon motion made by James L. Longerbeam, seconded by Robert M. Sager, for the finance department to prepare a budget resolu- tion increasing the real estate tax 12 cents and to include changes and cuts to the budget as presented above. The above motion was passed by the following recorded vote: Richard G. Dick - Aye W. Harrington smith - Aye James L. Longerbeam - Aye Robert M. Sager - Aye 214 Beverly J. Sherwood - Nay Charles W. Orndoff, Sr. - Aye Supervisor Sherwood voted against this motion as she felt more cuts and other sources of funding could be used to balance the budget without increasing taxes. She felt citizens of Frederick County were going to have a hard time paying any tax increase. UPON !lOTION MADE BY ROBERT II. SAGER, SECONDED BY CHARLES W. ORNDOFF, SR., AND PASSED UNANIMOUSLY, THE BOARD OF SUPERVISORS ADJOURNED AS THERE WAS NO FURTHER BUSINESS TO DISCUSS. sors