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2014-03-10 PacketCHESTERFIELD COUNTY 1749 BOARD OF SUPERVISORS Page 1 of I 4) AGENDA Meeting Date: March 10, 2014 Item Number: 3.A. Subiect: work Session on the County Administrator's Proposed FY2015 Budget County Administrator's Comments: County Administrator:_ �7 Board Action Requested: Hold a work session on the County Administrator's Proposed FY2015 Budget Summary of Information: This time has been set to present the County Administrator's Proposed FY2015 Budget. This work session will include a presentation on the County Administrator's overall Proposed FY2015 Budget. Presentations from the Schools and Public Safety Division departments are also scheduled for this date. Budget work sessions will continue on March 12th and March 26th. A final work session is scheduled for April 9t'. At the April 9th work session, changes to the proposed budget, CIP, and any other areas will be reviewed prior to adoption. Preparer: Allan M. Carmody Attachments*. 0 Yes❑ Title: Director, Budget and Management No #c ol 0 0 6-E] 3/10/2014 r 4i@77 t r i . r r ✓ Setting the stage: A quick review of County's approach to financial management ✓ Overview of the proposed FY15 plan ✓ Focus on the funding priorities ✓ Moving forward: budget calendar and looking ahead to FY16 and beyond... 1) 2006: Elimination of retiree healthcare benefits for new hires 2) 2010: New hires begin paying 5% towards their VRS retirement benefit 3) 2011: County moves to PTO leave model (usage down 11.6 days) 4) 2014: Conversion to health care self insurance, including higher copays, 50% reduction in dental contribution (estimated $12M in combined savings) 5) 2014: New hires enrolled in new hybrid VRS plan with employer cost less than 3% of salary 0 Federal $18,000,000 — $16,000,000 $14,000,000 $12,000,000_...--_.--- $10,000,000 _ $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 2004 2006 2008 2010 2012 +$5.2 TRILLION +45% $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 2004 2006 2008 2010 2012 +$1.9 BILLION, +39.7% 6 '1 all, aL", Virginia 7' y Earnin s State. Earn;n s %t %%ate Hours Tn, Table Home Pay -3% An employee making $50k who has received full merits (4% total) since 7/2009 with basic family health care Chesterfield $900 $800 $700 $600 ---- $500 $400 $300 $200 $100 $- 2004 2006 2008 2010 2012 -$120 MILLION, -17% Change in Total Debt Outstanding, FY09-13 3/10/2014 2 • k � 44 J3 iT��� 1) Mix of options used to address recent budget challenges -the majority of which were internal facing... 2) Total salaries up only 3.2% (FY09-14), despite 4% in cumulative merits, 5.72% VRS offset, and public safety = ` initiatives (career development, starting pay increase)' 1. 3) Increase moderated by eliminating full-time positions, zero - basing salaries ^' 1) County has the LEANEST Chesterfield $1,598 Reumue overall cost structure among full- Hanover $1,670 service localities in state Henrico $1,692 per a 2) As well as, the LOWEST local Spotsylvania $1,748 Cities and Counties over 100k in Population, FY2013 Norfolk $1,943 revenue burden Chesapeake $1,945 3) 94% of residents rate their overall Hampton $2,007 quality of life as good to excellent Roanoke $2,029 (2012) Albemarle $2,049 Newport News $2,091 4) Crime down 15.5% (2008-2013) Prince William $2,096 5) Graduation rate up to 90%, Virginia Beach $2,142 higher than state average Fairfax $3,174 Loudoun $3,342 6) More than $1 B in business Alexandria $3,759 investment since 2007 Source: Virginia Auditor of Public Accounti Arlington $4,779 • k � 44 J3 iT��� 1) Mix of options used to address recent budget challenges -the majority of which were internal facing... 2) Total salaries up only 3.2% (FY09-14), despite 4% in cumulative merits, 5.72% VRS offset, and public safety = ` initiatives (career development, starting pay increase)' 1. 3) Increase moderated by eliminating full-time positions, zero - basing salaries ^' 4) Operating expenses cut by (9.1 %), induding: telephone services ($641 k), travel ($715k), operating supplies ($1.6M), tools and equipment ($782k), fumiture/bdures ($1.1 M), copier contract ($579k), maintenance/other contracts ($2.2M), printing services ($502k) 5) Also, targeted strategies such as department consolidations,. community contract reductions, debt re -financings 3/10/2014 3 $0.39 $0.37 te Real EstaRate $0.29 Changes, 07-13 1$0.26 Cities and Counties over 100k in Population $0.21 $0.20 . $0.18 $0.10 $0.04 $0.03 $0.02 N = . $0.00 $0.00 $0.00 $0.00 $0.02 $0.03 �.a, cce+Po����\AyeG�fxo�� �ecGP�+cc 00���koc 14p`#�P6 PgQ' oPo�- T., O 17.,1..0 ..0 Legend 3/10/2014 4 -��.�,I�-mss •���sil�l":�<<�[�:��,y. 1) Nearly 75% of FY 15 budget growth dedicated to public safety and education 2) Budgets in 5 of 6 other divisions reduced or flat to FY14 3) No net increase in staffing levels 4) FY15 does include new revenue... 5) All resources dedicated to capital needs, primarily in schools 6) With no new resources, operating initiatives largely achieved via multi- year phase-in �1� iiil�liji:►'13'i1L I UdxaWigffi*M "'Anivatvyn=4 1) FY15 plan allows for opening of Harrowgate Fire Station (3 positions) 2) Additional patrol officers (4) to aid in community policing, targeted enforcement efforts 3) Partnership with John Tyler CC 4) Further investment to shore up vehicle and equipment needs in public safety 5) Funding for replacement of police cruisers and medium -duty fire apparatus 6) Resources for equipment in police, sheriff and animal control 3/10/2014 5 —, —, — i +aq:+N "� 1) FY15 plans allows for progress on multiple school fronts: 2) New resources for school revitalization projects, pay-as-you-go program 3) Targeted pupil -to -teacher ratio reductions 4) 1 % merit for school employees 5) Tier one of teacher retirement plan (VRS) restoration 6) Beginning of mufti -year effort to update the division's bus fleet 7) Opening of second career and technical center 1) Proposed plan establishes dedicated revenue sources to address other infrastructure issues: 2) Transportation: includes increase in vehicle registration fee in orderto leverage state funding, continue Revenue Sharing program for local road funding 3) Stormwater Management: establishes countywide districtto finance improvements associated with unfunded Federal TMDL stormwater program 3/10/2014 O,All"I.Iqlar-1Nil 1) Budget growth again moderated by reductions in non -front line areas Rainy D 2) Support functions account for less 5' than three percent of overall Capital/Det Service 8.35 growth from FY11-15; staffing profile reduced by nearly 10% since FY2009 3) FY15 examples headlined by restructuring of County print shop; results in three available positions that are being used to help staff Publl 3: new fire station 4) FY15 plan includes 1% meritfor all eligible staff 111l: Human Support Services/ Functions Community 2.9% Development Ed cation 45.0% fh m of BL dgd C oui by FurKFw, M- 5 3/10/2014 7 TTMWK#11.11 a Of Chesterfield County Services 13.4% Conurmc t / $eryke Chesterfield (with revenue) 18.7% �e Ci1C>f gw, � Milk _._ _ 19.7% as Measured by the Consumer Price Index, Movie Tickets 21.8% Average Real Estate Tax Bills Groceries 24,7% 1) Cost of County S&ViCeSlimitedto 13.4% growth (05-14) Cable 25.3% Restaurants 28.7% 2) Despite, sharp cost pressures for Car Insurance 30.0% goods and services Consumed by local governments (+31.4%) Prescriptions 30.2% State and Local Government 31.4% 4, 3) And, a 12.7% increase in County Air Fare _ 3 % population, continued grovwh in demand for services Waste Services 37.4% Electricity 43.1% College Tuition62.0% Eggs 62.7% Gasoline 1 81.5% 3/10/2014 7 3/10/2014 1) The Board has made transparency a top priority in recent years 2) Budget development materials posted online throughout process 3) Adopted document online 4) As well as, line -item detail by department 5) And, Program and Service inventory 6) FY15 plan furthers that discussion by providing a more in-depth snapshot of FY 16-19 7) Community feedback crucial to crafting road ahead ✓ Fiscal stewardship and a focus on quality of life, not new concepts in Chesterfield County ✓ FY15 plan cast in that mold ✓ Proposed budget strengthens core services, improves quality of life, upholds County's triple AAA reputation ✓ And, positions County well for next generation ✓ In that spirit, plan builds framework for discussion about FY16 and beyond ✓ Community meetings (3/13-3/25); 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IN, Ag CHESTERFIELD COUNTY N BOARD OF SUPERVISORS Page 1 of I AGENDA -j Meeting Date: March 10, 2014 Item Number: 4. Subiect: Adjournment and Notice of Next Scheduled Meeting Supervisors County Administrator's Comments: County Administrator: Board Action Requested: Summary of Information: of the Board of Motion of adjournment and notice of the Board of Supervisors meeting to be held on March 12, 2014, at 3:00 p.m. in the Public Meeting Room. Preparer: Janice Blakley Title: Clerk to the Board Attachments: Yes No