Martinsville

1County of Amherst

FY 2013-2014 Pre-Budget Work Session

1In This Presentation General Budget Information and Facts What Has Impacted the Budget What We See Now at the Local Level What We See Looking Ahead at the FY14 Budget Summary Board Direction Next Steps Budget Calendar

22Special Thanks toBrenda CampbellThe Accounting StaffDavid ProffittBelinda CockrellRae Hart33Objectives Provide relevant information to the BOS and public regarding the FY14 County budget. Prepare the public so citizens are better prepared to offer input on the budget. Provide useful information to the BOS so Board Members are better prepared to act on the County budget. Engage in conversation with the BOS to stimulate guidance from the Board.45General Budget Information and Facts5Where County Dollars Went in FY 11

Gen. Admin 2.1%Judicial 1.6%Public Safety 10.7%Public Works 2.7%Health & Welfare 5.5%Education 69.1%Parks & Rec 1.3%Debt Service 5.8%Community Development 0.7%66Where County Dollars Went in FY 12

Gen. Admin 2.2%Judicial 1.5%Public Safety 12%Public Works 2.7%Health & Welfare 5.1%Education 69.8%Parks & Rec 1.3%Debt Service 4.3%Capital Projects and CDBG 0.3%7Community Development 0.6%78Tax Rate Trend by Category

89General Govt Expenditure Trend

9Changes in Employee Staffing Over Past Two Years

101011History of Local and State Funds for EducationFiscal YearLocal Funds*State FundsFY09$13,834,398$26,685,951FY10$14,125,249$23,441,658FY11$14,125,249$20,370,190FY12$14,125,249$20,892,092FY13$15,103,979$20,358,524*As Approved during regular budget process

12The Value of a Penny in Terms of Local Tax RevenueTaxAmount GeneratedReal Estate$234,187Personal Property$15,222Machinery & Tools$8,49813What Has Impacted the Budget?

13Unemployment Rates

141415r

15State Revenue UpdateFY12 Revenues finished $129.2M (0.8%) above forecastFY13 Total Revenue Growth needs to be 2.9% to achieve the official estimateAs of the first quarter of FY13, total revenues increased only 1.3% howeverTotal Revenues are back to FY08 levels16Revenue Update A Briefing for the 2012 VACO Conference17State FundingFY11FY12FY13Cuts AgainFY10 and FY11

Budget Reductions

FY09(3) Reductions in Local Funding

17Localities and Tax Rates

1818Real Estate Tax Rates

1919Personal Property Tax Rates

202021Continued recessionary factorsLocal tax revenue dropped and is now flatInterest revenue is nearly non-existentReduced State fundingfiscal pressures pushed down to local governmentsIncreases in VRS and life insurance ratesInflationary factorsNo local tax increase since FY08What Has Impacted the Budget?21What Has Impacted the Budget?In FY2013Regional JailEquity Payment $909,098Per Diem additional payment $94,060Aid-to-the Commonwealth $154,8632222FY13 Budget When AdoptedDifference between Projected Revenue and Expenditures ($624,706)

ThusPotential Budget Gap232324What We See Now at the Local Level24Department of Social ServicesCase Load25YearCase Load201212,094 (approx 6 mos)201113,806201016,683Based on Calendar Year

Service Authority Connections26Based on Calendar YearConnections are still below normal for average of 1998 2007; Water Connections averaged 73 and Wastewater averaged 24.Building Safety & Inspections27

Based on Calendar YearZoning Permits28

Based on Calendar YearSite Plans29

Based on Calendar YearEmergency Services Call Volume

3031Fund BalanceUnassigned/ Undesignated Fund BalanceFund Balance ClassificationsChanged in FY11FY 200810,334,524FY 200911,934,389FY 201012,732,719FY 201112,697,550First year of this designationFY 2012*16,146,420*Prior to payments of ongoing projects and 15% approved Financial Policy

32FY 2011-2012 ReviewHandout and Board Discussion33FY 12-13 Year-To-Date Revenues and Expenditures ReviewHandout and Board Discussion34What We See Looking Ahead at the FY14 Budget3435Planning Retreat September 2012Core Vision for the year 2022(6) 10-Year aspirations established Natural/historic resourcesEconomic developmentRural characterResponsive governing processInfrastructureEffective County servicesResulting in 34 specific goals

Strategic Direction Established by the BOS3536Countys Five-Year CIPFiscal YearAmountFY13$13,128,523FY14$10,044,083FY15$16,613,842FY16$7,339,362FY17$7,858,214FY18 under development at the time of this presentationAmherst County Financial Analysis3737Amherst County Financial Analysis383839Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13Building SafetyTravel-EducationOperating$400TelecommunicationOperating$250Extension OfficeCompensation (Local Share)Operating$1,162Public SafetyEquipment (Radios)Capital$900,000Commonwealth AttorneyLease/Rental (Case Mgmt System)Operating$40,000LibraryProfessional ServicesOperating$5,100Maintenance Svc ContractsOperating$2,000Water/SewerOperating$1,605EquipmentOperating$3003940Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or Capital

Increase/Decrease Over FY13Blue Ridge Regional Jail Per DiemContract ServicesOperating$94,060TreasurerCompensation (New Employee)Operating$35,500MaintenanceBldg Repairs-PaintingCapital$65,000Bldg Repairs-Roof ReplacementCapital$140,000Bldg Repairs-Sidewalks & StepsCapital$23,000Vehicle ReplacementCapital$25,0004041Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or Capital

Increase/Decrease Over FY13Commissioner of RevenuePostage (Reassessment)Operating$1,500Office SuppliesOperating$640Solid Waste AdminCompensation-Account ClerkOperating$10,000Greenbox Container Collection CompOperating($30,215)Contract Hauling ServiceOperating$26,100Grease,Gas,OilOperating($8,000)4142Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13Landfill OperationsProfessional ServicesOperating($35,000)EquipmentOperating($21,000)Landfill Close-OutContract ServicesOperating$17,000Closure Activity ReserveOperating$40,000Ground MaintComp-Part-timeOperating$11,000Professional Svc-EngineerOperating$8,000Contracted ServicesOperating$8,000Dam Inundation ZonesOperating$26,000EquipmentCapital$103,0004243Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13PurchasingEquipment-Gas PumpsOperating$6,000Victim WitnessGrant Reduction-FY2014Operating$1,903General DistrictTelecommunicationOperating$7,800RecreationRiver Park (Utilities)Operating$50,000Equipment (Tables, grills, trash receptaclesOperating$4,500Equipment-Entrance SignsOperating$40,000Central AccountingTelecommunicationOperating$500PostageOperating$1,000Aid to the CommonwealthOperating$93,0004344Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13Board of SupervisorsLegal ServicesOperating$25,000TravelOperating$1,500Dues & MembershipsOperating$500Other Operating CostsOperating$250TourismPostageOperating$200County AdministratorTelecommunicationsOperating$1,500Books & SubscriptionsOperating$250TravelOperating$500IT DepartmentCompensation (new employee)Operating$50,0004445Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13Animal ShelterContract ServicesOperating$1,000Heating OilOperating$1,000TelecommunicationsOperating$500EquipmentOperating$700Animal ControlTelecommunicationsOperating$500Gas/OilOperating$8004546Anticipated FY14 Budget ChangesDepartmentProject/ItemOperating or CapitalIncrease/Decrease Over FY13SheriffOvertimeOperating$10,000Repair-RadiosOperating$2,000Janitorial ContractOperating$8,000ElectricOperating$5,000TelecommunicationsOperating$10,000Gas/OilOperating$20,000TOTAL$1,834,3054647Outstanding IssuesThe School Board will not consider a proposed budget until February, with work sessions to follow. Therefore, the local request for school funding is not known at this time.4748Outstanding Issues2013 General Assembly action????Budget adjustments?Unfunded mandates?Economic development plan pendingWhat funding will be required from the County?Unexpended bond proceedsWhat additional funding, if any, will be required from the County to finish project(s)?Real estate assessment underwaySocial Services space needsVacant County property use/disposition4849Outstanding IssuesTrain Depot projectFire/Rescue Station?Human Resources & Personnel Policy ManualEngineering/Project ManagementHighway needs not fully funded by VDOTCapital projects identified in CIPEnergy efficiency projectStorm Water Management RegulationsRadio purchases for Public Safety and County needs

4950Personnel and Departmental IssuesNumber of personnel has decreased despite expectation for services and new regulations.Adequate funding is lacking for continuing education, professional development, and succession planning.HR Action Plan will identify recommendations.Departments have held the line on expenditure requests for five years. Leaves little flexibility and forward thinking.5051Personnel IssuesDepartments identified the need for the following positions and are included in the FY14 Department Request for funding:

DepartmentPositionTreasurerDeputy Treasurer IGround MaintenancePart-timeInformation TechnologyIT Specialist5152Personnel IssuesStaff 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.)

DepartmentPositionEngineeringProject EngineerEngineeringStorm Water ManagementHuman ResourcesHR SpecialistEconomic DevelopmentAs Specified in ED plan52Last Pay Increase53LocalityWhen?2012 (VRS mandated changes)Amherst3%20085.75%Appomattox2% 20125.00%Bedford6.00%Campbell5.75%Lynchburg5.60%Nelson1% 20125.75%5354Board Financial PoliciesAs approved by the BOS January 2012Annual Budget Objective (C) 3Provision of adequate employee compensation including pay-for-performance increases for county employees and selective salary increases for positions significantly below market.Full-Time Employee Bonus55201020112012Amherst$1,500Appomattox$500Bedford$500Campbell$300$600$600Lynchburg$500Nelson$5005556Pay IncreaseCost of 2% Raise

County Full-Time$200,000County Part-Time$25,000School$700,000TOTAL$925,00057Pay IncreaseCost of 3% Raise

County Full-Time$300,000County Part-Time$30,000School$1,075,000TOTAL$1,405,00058Pay IncreaseBonus

County180 Full-Time$90,000County46 Part-Time$8,050School722 Full-Time$361,000School80 Part-Time$14,000TOTAL$473,050Based on $500 for Full-Time and $175 for Part-Time59SummaryThe budget is one of the most important matters considered by the BOS.Approximately 80% of the County General Fund budget funds Education and Public Safety.The last Real Estate tax increase in Amherst County was in FY07-08.State funding for education has been reduced while there has been increases in local County funding.60SummaryThe cost of goods and services purchased by Amherst County continues to rise.State revenues are trending upward, at a minimal 1.3% rate of increase, but is below the forecasted 2.9%.State funding reductions have SIGNIFICANTLY affected the Countys budget!Even during recessionary times, the demand for County services remains high and has increased in certain functions.

61SummaryThe Countys Fund Balance is at a stable level and has increased over the past two years due to sound fiscal management and cautious revenue forecasting.Many capital projects have been delayed or not funded, resulting in a backlog of need. The County is well positioned to carefully develop a reasonable capital expenditure strategy.This early in the budget development process, staff anticipates the POSSIBILITY of $1.8M in changes to the capital and operating budgets.The School Budget will not be presented to the School Board until February, with School Board work sessions to follow.62SummaryCounty employees have not had a general pay increase since 2008, and market adjustments are overdue.Additional funding is requested for two new FT and one new PT position in FY14.Four additional positions MAY need to be funded soon.Staff seeks guidance from the BOS as it continues preparing a proposed budget.Budget should be approved by April 16 so that tax tickets are mailed in time.63The Value of a Penny in Terms of Local Tax RevenueTaxAmount GeneratedReal Estate$234,187Personal Property$15,222Machinery & Tools$8,49864Board DirectionStaff presents a budget for the Boards considerationThe BOS approves the County budget as it sees fitAs staff prepares the FY14 budget, we need input/guidance from the BoardWhat are the priorities?What are the critical needs of the County?Other instructions from the Board?65Next StepsFurther Pre-Budget Work Sessions?Public Input January 15 7:00 PM during BOS MeetingInput/Guidance from the BOSBudget Presented to BOS February 5Board Sets Work SessionsBudget Public Hearing March 5Board Approves Budget and Sets Tax Rates by April 1666FY14 Budget CalendarDecember 10 Distribute budget instructions to County Departmental Staff, Constitutional Officers, and funded FY2013 outside agenciesJanuary 4, 2013 Departmental budget proposals deadlineJanuary 11 - Preliminary budget meeting with Board of Supervisors January 15 Agenda item for public input on FY2014 budgetJanuary County Administrator review departmental budgetsFebruary 5 County Administrator submits proposed budget to Board of SupervisorsFebruary - Establish work session datesFebruary 15 Advertise FY2014 Proposed Budget for 2 weeksMarch 5 FY2014 Proposed Budget Public Hearing (7:00 PM at ACHS)April 16 Final date for Budget Adoption and set tax ratesTax bills mailed for June 5 collection deadline6667This Concludes the FY14 Pre-Budget Work Sessionr

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Real EstatePersonal Prop.Mach. & Tools

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Chart170.286.890.184.480.181.9

Sheet1FY06-07FY07-08FY08-09FY09-10FY10-11FY11-12$70.2$86.8$90.1$84.4$80.1$81.9

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20132012

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LocalStateNational

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Real EstatePersonal PropertyMachine & Tools

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20082009201020112012

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20082009201020112012

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Water ConnectionsWastewater (Sewer)

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Number of Permits

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Number of Permits

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Number of Plans

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EMSFIRESHERIFF

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