Budget may not have tax increase, county administrator says
The preliminary budget summary presented to the Amelia County Board of
Supervisors on Wednesday (April 30) included no local tax increase, but that may
not stand by the time the FY 2008-09 budget is presented at the public hearing
scheduled for May 29.
Amelia County Administrator Tom Harris presented his
preliminary budget summary to the board last week. Replete with quotes from
seven, famous and some not so famous, people, the county administrator’s
presentation outlines a “community vision” that has yet to be adopted by the
county’s supervisors. The vision addresses the character of the community, its
economic outlook, the importance of education, excellence in government,
environmental stewardship and social equity.
Community goals include improved quality of life for all
citizens, economic opportunities, quality public service at minimal tax payer
cost, financially responsible and secure local government and properly
compensated public employees.
Mr. Harris stated while “no spend” programs may result in
cash reserves, without fiscal controls and long range planning the county runs
the risk of “financial collapse reminiscent of the debacle currently facing the
Commonwealth of Virginia.”
He noted the county’s public utilities continue to run
deficits, the county is under pressure of increased development that requires
additional water and sewer facilities, has large infrastructure needs,
increasing debt service, long term planning for capital outlay is not being
done, job competition for public employees mean higher salaries and the local
government is increasingly being asked to pick up the cost of programs formerly
funded by the state and federal agencies. In addition, there is no policy
governing the county’s 15 percent undesignated fund balance.
Mr. Harris recommended tax revenues be used solely for
operational expenses and debt service. He recommends landfill revenues be used
for capital expenditures and debt services. He pointed out at $.43 per $100 of
value, Amelia has the lowest real estate tax rate in the area with the exception
of Buckingham County, which has the same rate. His presentation included the
statistic that the median house value in Amelia in 2008 was $200,000 with real
estate taxes of $860.
The county’s $4 personal property tax rate also compares
favorably to that of other counties.
The county administrator prioritized the budget goals as: 1)
implementing the supervisors’ vision and annual priorities, 2) no tax increase
or reduce the tax rate while evaluating the impact of land use policies, 3)
minimal or no increase in county fees and rates, 4) cooperation with
constitutional officers, the schools and the social services department, 5)
adequate school funding, 6) competitive employee salaries, 7) maintaining
current employee benefits, 8) improve current level of service, 9) minimal or no
use of undesignated reserves or landfill revenue for operational expenses, 10)
long range planning including the replacement of county vehicles.
His recommendations include better planning for the funding
of capital improvements and providing local “grants” of up to $5,000 to match
non-profit agencies’ public beneficial projects.
Mr. Harris is also recommending $85,000 be allotted in FY
2008-09 for the creation of a Department of Emergency Management. He also
advocates funding for three new employees including two school resource officers
and a finance director.
The county administrator said the county should begin a
biennial budgeting process and develop a capital improvements fund over a period
of several years. The general fund should include a personnel reserve fund of
$50,000, with the next $25,000 placed in a contingency reserve fund.
His plan calls for no tax increase, level funding for most
outside agencies and a three percent salary increase for all employees
(including the constitutional officers and their employees) His budget summary
includes the recommendation the county develop a pay for performance personnel
management system by 2010.
Mr. Harris’ summary notes the budget reflects a four percent
decrease in employee health insurance benefits cost.
Including school funds and reserve funds of $782,640, Mr.
Harris estimated total general fund revenue available for the FY 2008-09 budget
at $29,901,892.
Looking at past five years, Mr. Harris noted the county had
carryover, or reserve funds, at the end of every year except 2006 when the
county had a deficient of $431,056.
In answer to a question from District 2 Supervisor Weldon
“Skip” Hall, Mr. Harris said he proposes using surplus from the 2007-08 fiscal
year capital improvements fund to balance the budget this year if needed.
District 1 Supervisor Jim Bennett asked if employee health
benefits would decrease. No, Mr. Harris explained, it was just the health
insurance cost went down this year.
“This is stuff we’ve been considering,” board Chairman Frank
Harris said of Mr. Harris’ presentation. “This is putting it into written form.
We’ve not had this documented for us before.”
“This will take some time to study,” Mr. Hall said. “I’m
concerned we may have to use that much surplus.”
“I do not believe there should have been that much (surplus)
to begin with,” Mr. Harris told him.
The board later set a budget public hearing for May 29.