part ii fy 2013-2014 proposed budget
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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Part II
FY 2013-2014Proposed Budget
Clarence C. MondayCounty Administrator
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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
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Developing the Proposed Budget
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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
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Important Facts
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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.
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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
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Budget Development Goals
and Strategy
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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.
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Review of Fiscal Year 2011/2012
andExamining Fiscal Year 2012/2013
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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.
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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.
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What is Included in the FY14 Proposed
Budget?
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Capital Budget
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Tier I Capital Projects Included in Budget
Department Project AmountPublic Safety Radios $900,000
Building Maint Roof Replacement at County Admin Building
140,000
Commonwealth’s Attorney Case Management System
40,000
Building Maint Building Repairs 25,000
Public Safety Building Repairs 15,000
Parks Playground Safety Materials
10,000
Public Safety Duct Repairs 5,000
Public Works Tractor 63,000
Parks Mill Creek Restroom Improvements
68,000
Parks Monocan Park Restroom Improvements
15,000
School Division As Determined 500,000
Total This Page $1,781,000
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Tier II Capital Projects Included in Budget
Department Project AmountPublic Safety Vehicle for Director $38,000
Inspections Vehicle for Building Official
23,000
Building Maintenance Painting of County Buildings
50,000
Public Works Building for Machinery and Equipment
40,000
County Vehicle Replacement 26,000
Parks Paving Lake Parking Lots
145,000
Parks Replace Park Entrance Signs
90,000
Total This Page $412,000
Total Capital Improvements $2,193,000
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Local School Funding
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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.
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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.
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County Employees
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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!
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3% Pay Increase Proposed
County Full-Time $300,000
County Part-Time
$30,000
TOTAL $330,000
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.
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Personnel
Departments identified the need for the following positions and are included in the FY14 Proposed Budget:
Department Position
Treasurer Deputy Treasurer I
Ground Maintenance Part-time (seasonal)
Information Technology IT Specialist
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PersonnelStaff 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
* Should be addressed early in the fiscal year, pending review of our options and a staff recommendation.
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Tax Rate Comparison and
Proposed Tax Rates
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Real Estate Tax Comparison
Locality Real Estate Tax RateAmherst County .52
Appomattox County .575Bedford County .50
Campbell County .53Nelson County .60
Average (With Amherst County)
.545
Average (Without Amherst County)
.55
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Personal Property Tax Comparison
Locality Personal Property Tax Rate
Amherst County 3.25Appomattox County 4.60
Bedford County 2.35Campbell County 4.45
Nelson County 2.95Average (With Amherst
County)3.52
Average (Without Amherst County)
3.59
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Combined RE & PP Tax Rate Comparison
Locality Real Estate
Personal Property
Combined Rates
Amherst County .52 3.25 3.77Appomattox
County.575 4.60 5.18
Bedford County .50 2.35 2.85Campbell County
.53 4.45 4.98
Nelson County .60 2.95 3.55Average (With
Amherst County)
.545 3.52 4.07
Average (Without Amherst County)
.55 3.59 4.14
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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.
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Real Estate TaxAverage RE Tax Rate
.55
Amherst County .52Potential Increase to Match Average Real Estate Tax Rate
.03
Potential Revenue Gained by Increasing Real Estate Rate by .03 (to .55)
$702,561
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Personal Property TaxAverage PP Tax Rate
3.59
Amherst County 3.25Potential Increase to Match Average Personal Property Tax Rate
.34 *not a proposed rate; for illustrative purposes only
Potential Revenue Gained by Increasing PP Rate by .34 (to 3.59)
$517,548
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Proposed Changes In Tax Rates
Real Estate Tax Personal Property Tax
Current Rate .52 Current Rate 3.25
Proposed Rate .55 Proposed Rate 3.50
Proposed Increase .03
Proposed Increase .25
Current Average RE Tax Rate .55
Current Average PP Tax Rate 3.59
Revenue Generated by Increase $702,561
Revenue Generated by Increase $380,550
Total Revenue Generated by
Increases $1,083,111
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Proposed tax rates were determined in order to provide the necessary revenue to balance the budget.
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RE & PP Tax Rate Comparison
Locality Real Estate
Personal Property
Combined Rates
Amherst County Now
.52 3.25 3.77
Average (Without Amherst County)
.55 3.59 4.14
Appomattox County
.575 4.60 5.18
Bedford County .50 2.35 2.85Campbell County
.53 4.45 4.98
Nelson County .60 2.95 3.55Amherst County After Proposed
Increases.55 3.50 4.05 33
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Citizen Impact…RE Increase from .52 to .55
Average Value
$144,700
Current Tax $752.44
Tax at Proposed
Rate
$795.85
Impact +$43
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Figures based on “average” property per $100 of assessed value.
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Citizen Impact…PP Increase
from $3.25 to $3.50Average
Value$5,870
Current Tax (after 43.45%
PPTR, excluding County license
fee)
$107.89
Tax at Proposed
Rate
$116.19
Impact +$8.30
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Figures based on “average” personal property per $100 of assessed value.
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The Value & Impact of Changes in Local Tax RatesReal Estate
TaxIncremental
Increases
Amount Generated (based on total assessed value)
Tax Impact (based on
“avg” $144,700)
.01 $234,187 $15
.02 $468,374 $29
.03 $702,561 $43
.04 $936,748 $58
.05 $1,170,935 $72
.10 $2,341,870 $145
.15 $3,512,805 $217
.20 $4,683,740 $289
.25 $5,854,675 $362
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The Value & Impact of Changes in Local Tax Rates
Personal Property
Tax Incremental
Increases
Amount Generated
(based on total assessed
value)
Tax Impact (based on
“avg” $5,870)
.01 $15,222 $0.33
.05 $76,110 $1.66
.10 $152,220 $3.32
.20 $304,440 $6.64
.25 $380,550 $8.30
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Budget Summary
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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.
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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.
Request1. 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.
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Next Steps
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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.
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End of the FY13-14 Proposed Budget
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