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Part II FY 2013-2014 Proposed Budget. Clarence C. Monday County Administrator. In This Section. Steps taken to develop the proposed budget Important Facts Budget development goals and strategy Review of Fiscal Year 2011/2012 and examining Fiscal Year 2012/2013 Capital budget
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Part II FY 2013-2014Proposed Budget Clarence C. Monday County Administrator
In This Section Steps taken to develop the proposed budget Important Facts Budget development goals and strategy Review of Fiscal Year 2011/2012 and examining Fiscal Year 2012/2013 Capital budget Local School Funding County Employees Tax rate comparison and proposed tax rates Budget summary Next steps
Steps Taken Departments submitted operating and capital requests Pre-budget work session with the Board of Supervisors Public input session Executive Management meeting with Department Heads to review budget requests Reviewed history of revenues and expenditures Forecasted revenues for FY14 Developed budget goals and priorities Initial Trial Balance Analyzed options to balance the budget Proposed budget completed and presented to the BOS
Important Facts Approximately 80% of the County General Fund budget funds Education and Public Safety. The cost of goods and services purchased by Amherst County continues to rise. Effects of recessionary reductions linger, causing department budgets to remain lean, with little flexibility. The County’s Fund Balance is at a stable level and has increased over the past two years due to sound fiscal management and cautious revenue forecasting.
Important Facts Capital expenditures have rightfully been delayed due to recessionary factors. Changes in the Local Composite Index (LCI) resulted in loss of State Revenue for Local Education totaling $1,126,576. “Indicates” the local ability to pay has increased. Departments encountered significant changes in their respective budgets totaling $1,834,305 (as presented in pre-budget information) For both operating and capital
Budget Goals & Strategy Perform a careful examination of projected revenues and departmental expenditures. Provide adequate funding for core government services. Provide funding for necessary capital projects, especially those requiring immediate attention. Utilize carryover funds from last fiscal year to fund capital needs. Maintain adequate Fund Balance for unanticipated & emergency needs, and for future strategic uses. Recommend tax increases only when necessary for on-going operating costs.
Review of Fiscal Year 2011/2012andExamining Fiscal Year 2012/2013
FY12 Review Slight improvement in local revenues. Had successful year in delinquent tax collections. “Catch up” is starting to diminish. Per audited figures, undesignated Fund Balance increased $2,266,175 from the FY11 amount. Cautious revenue forecasting. Aggressive, delinquent tax collections. Good fiscal management.
FY13 Status Report Revenue is where it should be at this time of the year, with slight revenue growth appearing. 59.9% budgeted Revenue collected as of December 31st for first half of the FY. Brisk activity reported in Inspections and Planning/Zoning. Expenditures are within budgeted parameters.
Tier II Capital Projects Included in Budget Total Capital Improvements $2,193,000
School Funding Since FY09, State funding has decreased from $26.6M to $20.3M. During the same time, the County has increased its local contribution. County support increased from $14.1M in FY12 to $15.1M in FY13, provided primarily with carryover/unexpended funds. School Board request for local funding is not expected until late February. Budget emphasis in FY14 was to 1) maintain this year’s increase in local funds and 2) identify recurring revenue for additional County funds.
School Funding Included in the proposed FY14 budget Local appropriation $15,853,979 Maintains current funding (as increased in FY13) and adds additional $750,000 in local funds. Capital budget provides $500,000 and follows $1M appropriation in FY12 and another $315,671 for roof repairs in FY13.
County Employees Last actual pay increase was effective July 1, 2008. Employees are grateful for the VRS adjustment (offsetting in nature) and for the December 2011 bonus. Last market analysis was conducted over three years ago and was not implemented due to recessionary constraints. Last market reclassification was in FY2005-2006. Don’t know how much to request for fair compensation! Amherst County competes for its employees on the open market just like other local governments and the private sector. Employees are our most important asset!
3% Pay Increase Proposed Note: The cost of a 3% pay increase is included in the proposed budget for full and part-time County employees. As previously noted, an increase of $750,000 is proposed for the County contribution to education.
Personnel Departments identified the need for the following positions and are included in the FY14 Proposed Budget:
Personnel Staff has identified the need or potential need for the following positions and are NOT included in the FY14 budget at this time (due to timing, waiting on additional information, etc.) * Should be addressed early in the fiscal year, pending review of our options and a staff recommendation.
Revenue Generated from Taxes Diligent efforts were taken to accurately forecast the amount of revenue generated from changes in tax rates. There are trends in the percentages of tax revenue collected, varying by tax type, aggressiveness of collection efforts, growth of tax base, etc. “Best” estimates are projected by the increase per penny in the tax rate and may not be actual revenue received from increases.
Proposed Changes In Tax Rates Proposed tax rates were determined in order to provide the necessary revenue to balance the budget.
Citizen Impact…RE Increase from .52 to .55 Figures based on “average” property per $100 of assessed value.
Citizen Impact…PP Increasefrom $3.25 to $3.50 Figures based on “average” personal property per $100 of assessed value.
Proposed Budget Summary Maintains current level of local funds ($15.1M) for Education AND provides another $750,000 for operational needs (total $15.8M). Utilizes $2.2M of carryover funds for capital projects. Provides 3% pay increase for County employees. Adds 2.5 employees including Deputy Treasurer I, IT Specialist, and seasonal Ground Maintenance. Increases Real Estate Tax Rate from .52 to .55 and Personal Property Rate from $3.25 to $3.50. Provides $1,083,111 in additional revenue to offset $1.1M reduction from change in LCI. Keeps Amherst County at the average RE rate and below the PP average as compared to regional peer group. Maintains adequate Fund Balance for unanticipated & emergency needs, and for future strategic uses.
Proposal From the Sheriff Received on January 30, 2013 Following development of the budget balancing strategy. Sheriff’s goal is to inform the BOS as soon as possible. Request 1. Place School Resource Officers (SRO) at each County school. Hire (11) additional SROs at estimated cost of $1,045,990 in Year 1. Subsequent years costs diminish after initial equipment is purchased. 2. Physical facility improvements at estimated cost of $2,072,469. Bank up funds to cover these costs, phasing in improvements starting in Year 2. 3. Improve communications. Sheriff suggests raising the Real Estate Tax Rate by .05 to cover such expenses. Not in proposed budget.
Next Steps The budget Public Hearing is March 5 at 7:00 PM, Amherst High School. To give proper notice, staff needs direction on the proposed tax rates to advertise. Action required! Set dates for budget work sessions. Receive and discuss the budget request from the School Board. Review department budgets, outside agencies, etc. Monitor the unknowns at this time such as General Assembly action, request from the School Board, etc. Tentative date to adopt the county budget and set tax rates is April 16.
