1 county of amherst fy 2013-2014 pre-budget work session

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County of Amherst

FY 2013-2014 Pre-Budget Work Session

FY 2013-2014 Pre-Budget Work Session

In 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

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Special Thanks to…

Brenda CampbellThe Accounting Staff

David ProffittBelinda Cockrell

Rae Hart

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Objectives 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. 4

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General Budget Information and Facts

Where 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% 6

Where 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%

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Community Development 0.6%

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Tax Rate Trend by Category

0

0.5

1

1.5

2

2.5

3

3.5

FY 03-04 FY 05-07 FY 07-08 FY 09-13

0.59 0.61 0.65 0.52

3.25 3.25 3.25 3.25

2.00 2.00 2.00 2.00Real Estate

Personal Prop.

Mach. & Tools

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General Gov’t Expenditure Trend

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

FY06-07 FY07-08 FY08-09 FY09-10 FY10-11 FY11-12

$70.2

$86.8 $90.1 $84.4 $80.1 $81.9

Changes in Employee Staffing Over Past Two

Years

174 133

650

433

1350

800

200

400

600

800

1000

1200

1400

1600

2013

2012

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History of Local and State Funds for

EducationFiscal Year

Local Funds*

State Funds

FY09 $13,834,398 $26,685,951

FY10 $14,125,249 $23,441,658

FY11 $14,125,249 $20,370,190

FY12 $14,125,249 $20,892,092

FY13 $15,103,979 $20,358,524

*As Approved during regular budget process

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The Value of a Penny in Terms of Local Tax

Revenue

Tax Amount Generated

Real Estate $234,187

Personal Property

$15,222

Machinery & Tools

$8,498

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What Has Impacted the Budget?

Unemployment Rates

0

2

4

6

8

10

12

2007 2008 2009 2010 2011 2012

Local

State

National

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State Revenue Update

FY12 Revenues finished $129.2M (0.8%) above forecast

FY13 Total Revenue Growth needs to be 2.9% to achieve the official estimate As of the first quarter of FY13, total revenues

increased only 1.3% however

Total Revenues are back to FY08 levels

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Revenue Update – A Briefing for the 2012 VACO Conference

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State Funding

FY11FY12FY13

Cuts Again

FY10 and FY11

Budget Reductions

FY09(3) Reductions in Local Funding

Localities and Tax Rates

0.52 0.575 0.50 0.53 0.60

3.25

4.60

2.35

4.45

2.95

2.00

4.60

1.20

4.45

1.25

Amherst Appomattox Bedford Campbell Nelson

Real Estate

Personal Property

Machine & Tools

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Real Estate Tax Rates

0.650.44 0.50 0.46 0.55

0.520.48 0.50 0.46

0.55

0.52

0.48 0.500.47

0.55

0.52

0.495 0.500.47

0.55

0.520.575 0.50

0.53

0.60


2012

2011

2010

2009

2008

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Personal Property Tax Rates

3.254.60

2.353.85

2.95

3.25

4.60

2.35

3.852.95

3.25

4.60

2.35

3.85

2.95

3.25

4.60

2.35

3.85

2.95

3.25

4.60

2.35

4.45

2.95


2012

2011

2010

2009

2008

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Continued recessionary factors Local tax revenue dropped and is

now “flat” Interest revenue is nearly non-

existent Reduced State funding…fiscal

pressures pushed down to local governments

Increases in VRS and life insurance rates

Inflationary factors No local tax increase since FY08



In FY2013Regional Jail

Equity Payment $909,098Per Diem additional payment $94,060

Aid-to-the Commonwealth $154,863

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FY13 Budget When Adopted

Difference between Projected Revenue and Expenditures

($624,706)

Thus…Potential Budget Gap

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What We See Now at the Local Level

Department of Social ServicesCase Load

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Year Case Load

2012 12,094 (approx 6 mos)

2011 13,806

2010 16,683

Based on Calendar Year

50

64

42

24

31

2

29

22

6

17

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012

Water Connections

Wastewater (Sewer)

Service Authority Connections

26Based on Calendar Year

Connections are still below normal for average of 1998 –2007; Water Connections averaged 73 and Wastewater averaged 24.

Building Safety & Inspections

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633

541512 508 501

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012

Number of Permits


Zoning Permits

28

413 394362

386348

433

050

100150200250300350400450500

2007 2008 2009 2010 2011 2012

Number of Permits


Site Plans

29

23

20

7 7

1517

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012

Number of Plans


Emergency Services Call Volume

4,046 3,789 3,827721 674 839

30,97329,194 28,386

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2010 2011 2012

EMS

FIRE

SHERIFF

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Fund BalanceUnassigned/ Undesignated Fund Balance

Fund Balance ClassificationsChanged in FY11

FY 2008 10,334,524FY 2009 11,934,389FY 2010 12,732,719FY 2011 12,697,550 First year of this

designation

FY 2012 *16,146,420

*Prior to payments of ongoing projects and 15% approved Financial Policy

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FY 2011-2012 Review

Handout and Board Discussion

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FY 12-13 Year-To-Date Revenues and Expenditures

Review

Handout and Board Discussion

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What We See Looking Ahead at the FY14 Budget

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Planning Retreat September 2012 Core Vision for the year 2022 (6) 10-Year aspirations established

Natural/historic resources Economic development Rural character Responsive governing process Infrastructure Effective County services

Resulting in 34 specific goals

Strategic Direction Established by the BOS

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County’s Five-Year CIP

Fiscal Year AmountFY13 $13,128,523

FY14 $10,044,083

FY15 $16,613,842

FY16 $7,339,362

FY17 $7,858,214

FY18 under development at the time of this presentation

Amherst County Financial Analysis

Prepared by Davenport & Company November 2012

Analyzed County’s Existing Debt Profile

Examined Debt Capacity and Debt Affordability

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Amherst County Financial Analysis

Debt Profile: County debt ratios are within suggested levels Debt Capacity: the County has the debt capacity to accommodate future borrowings based on debt ratiosDebt Affordability: the County has a number of options to fund immediate capital needs

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Anticipated FY14 Budget Changes

Department Project/Item Operating or Capital

Increase/Decrease Over FY13

Building Safety Travel-Education Operating $400

Telecommunication Operating $250

Extension Office Compensation (Local Share)

Operating $1,162

Public Safety Equipment (Radios) Capital $900,000

Commonwealth Attorney

Lease/Rental (Case Mgmt System)

Operating $40,000

Library Professional Services Operating $5,100

Maintenance Svc Contracts Operating $2,000

Water/Sewer Operating $1,605

Equipment Operating $300

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Blue Ridge Regional Jail Per Diem

Contract Services Operating $94,060

Treasurer Compensation (New Employee)

Operating $35,500

Maintenance Bldg Repairs-Painting Capital $65,000

Bldg Repairs-Roof Replacement

Capital $140,000

Bldg Repairs-Sidewalks & Steps

Capital $23,000

Vehicle Replacement Capital $25,000

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Commissioner of Revenue

Postage (Reassessment) Operating $1,500

Office Supplies Operating $640

Solid Waste Admin

Compensation-Account Clerk

Operating $10,000

Greenbox Container Collection Comp

Operating ($30,215)

Contract Hauling Service Operating $26,100

Grease,Gas,Oil Operating ($8,000)

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Landfill Operations

Professional Services Operating ($35,000)

Equipment Operating ($21,000)

Landfill Close-Out

Contract Services Operating $17,000

Closure Activity Reserve Operating $40,000

Ground Maint Comp-Part-time Operating $11,000

Professional Svc-Engineer Operating $8,000

Contracted Services Operating $8,000

Dam Inundation Zones Operating $26,000

Equipment Capital $103,000

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Purchasing Equipment-Gas Pumps Operating $6,000

Victim Witness Grant Reduction-FY2014 Operating $1,903

General District Telecommunication Operating $7,800

Recreation River Park (Utilities) Operating $50,000

Equipment (Tables, grills, trash receptacles

Operating $4,500

Equipment-Entrance Signs Operating $40,000

Central Accounting

Telecommunication Operating $500

Postage Operating $1,000

Aid to the Commonwealth

Operating $93,000

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Board of Supervisors

Legal Services Operating $25,000

Travel Operating $1,500

Dues & Memberships Operating $500

Other Operating Costs Operating $250

Tourism Postage Operating $200

County Administrator

Telecommunications Operating $1,500

Books & Subscriptions Operating $250

Travel Operating $500

IT Department Compensation (new employee)

Operating $50,000

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Animal Shelter Contract Services Operating $1,000

Heating Oil Operating $1,000

Telecommunications Operating $500

Equipment Operating $700

Animal Control Telecommunications Operating $500

Gas/Oil Operating $800

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Sheriff Overtime Operating $10,000

Repair-Radios Operating $2,000

Janitorial Contract Operating $8,000

Electric Operating $5,000

Telecommunications Operating $10,000

Gas/Oil Operating $20,000

TOTAL $1,834,305

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Outstanding Issues

The 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.

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Outstanding Issues

2013 General Assembly action???? Budget adjustments? Unfunded mandates?

Economic development plan pending What funding will be required from the County?

Unexpended bond proceeds What additional funding, if any, will be required from the County

to finish project(s)?

Real estate assessment underway Social Services space needs Vacant County property use/disposition

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Outstanding Issues

Train Depot project Fire/Rescue Station? Human Resources & Personnel Policy Manual Engineering/Project Management Highway needs not fully funded by VDOT Capital projects identified in CIP Energy efficiency project Storm Water Management Regulations Radio purchases for Public Safety and County

needs

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Personnel and Departmental Issues

Number 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.

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Personnel Issues

Departments identified the need for the following positions and are included in the FY14

Department Request for funding:

Department Position

Treasurer Deputy Treasurer I

Ground Maintenance Part-time

Information Technology IT Specialist

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Personnel Issues

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.)

Department Position

Engineering Project Engineer

Engineering Storm Water Management

Human Resources HR Specialist

Economic Development As Specified in ED plan

Last Pay Increase

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Locality When?

2012 (VRS mandated changes)

Amherst 3%2008

5.75%

Appomattox 2% 2012

5.00%

Bedford 6.00%

Campbell 5.75%

Lynchburg 5.60%

Nelson 1% 2012

5.75%

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Board Financial Policies

As approved by the BOS January 2012

Annual Budget Objective (C) 3“Provision of adequate employee compensation including pay-for-performance increases for county employees and selective salary increases for positions significantly below market.”

Full-Time Employee Bonus

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2010 2011 2012

Amherst $1,500

Appomattox $500

Bedford $500

Campbell $300 $600 $600

Lynchburg $500

Nelson $500

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Pay Increase

Cost of 2% Raise

County Full-Time $200,000

County Part-Time

$25,000

School $700,000

TOTAL $925,000

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Pay Increase

Cost of 3% Raise

County Full-Time $300,000

County Part-Time

$30,000

School $1,075,000

TOTAL $1,405,000

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Pay Increase

Bonus

County 180 Full-Time

$90,000

County 46 Part-Time $8,050

School 722 Full-Time

$361,000

School 80 Part-Time $14,000

TOTAL $473,050

Based on $500 for Full-Time and $175 for Part-Time

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Summary

The 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.

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Summary

The 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 County’s budget!

Even during recessionary times, the demand for County services remains high and has increased in certain functions.

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Summary 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.

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.

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Summary County 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.

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The Value of a Penny in Terms of Local Tax

Revenue

Tax Amount Generated

Real Estate $234,187

Personal Property

$15,222

Machinery & Tools

$8,498

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Board Direction

Staff presents a budget for the Board’s consideration

The BOS approves the County budget as it sees fit

As staff prepares the FY14 budget, we need input/guidance from the Board What are the priorities? What are the critical needs of the County? Other instructions from the Board?

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Next Steps Further Pre-Budget Work Sessions? Public Input January 15 7:00 PM during

BOS Meeting Input/Guidance from the BOS Budget Presented to BOS February 5 Board Sets Work Sessions Budget Public Hearing March 5 Board Approves Budget and Sets Tax

Rates by April 16

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FY14 Budget Calendar December 10 – Distribute budget instructions to County

Departmental Staff, Constitutional Officers, and funded FY2013 outside agencies

January 4, 2013 – Departmental budget proposals deadline January 11 - Preliminary budget meeting with Board of

Supervisors January 15 – Agenda item for public input on FY2014 budget January – County Administrator review departmental budgets February 5 – County Administrator submits proposed budget to

Board of Supervisors February - Establish work session dates February 15 – Advertise FY2014 Proposed Budget for 2 weeks March 5 – FY2014 Proposed Budget Public Hearing (7:00 PM at

ACHS) April 16 – Final date for Budget Adoption and set tax rates Tax bills mailed for June 5 collection deadline

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This Concludes the FY14 Pre-Budget Work

Session

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1 county of amherst fy 2013-2014 pre-budget work session

Documents

fy14 budget slide

category slide

calendar year slide

local level slide

local funding slide

board discussion slide

regular budget process

fy13 budget