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Part II

FY 2013-2014Proposed Budget

Clarence C. MondayCounty 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

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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

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

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.

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

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.

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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