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Finance Committee Meeting-3-21-23Leadership Academy SML Regional ChamberFinance Committee Meeting Leadership Academy SML Regional ChamberCapital Project FY2023 Projects Capital Project FY2023 Priorities Building & Grounds Improvements Line Item Current Balance 1,137,108.70 Priority Capital Projects: Library-Roof Replacement for Brosville Library Branch 25,000.00 Library-Foundation Repairs for Brosville Library Branch 35,000.00 Library-Chatham Parking Lot repairs/resealing 22,000.00 Replacement of Network Switches 65,000.00 Replacement of CAD Server for E911 180,000.00 Building & Grounds Improvements-To Be Used for HVAC Replacements 200,000.00 Total Priority Capital Projects 527,000.00 Remaining Balance 610,108.70 Leadership Academy SML Regional ChamberFY2024 Budget Update State Budget Update •Virginia General Assembly ended their session with no final budget on February 25, 2023 •The Legislature collectively approved what is known as a “skinny budget” before adjourning. This amendment addressed the accidental $200 million shortfall in state aid to schools statewide. This totals $500K-$600K for Pittsylvania County Schools. This problem has not been addressed in FY2024 •House and Senate Budget committees are still meeting to hash out differences in the two budgets State Budget Updates cont’d •Governor Youngkin is scheduled to amend/approve/veto the General Assembly “skinny budget” on March 27th •General Assembly is scheduled to reconvene on April 12th to take up any vetoes or amendments proposed by the Governor, but the Governor can call them back anytime to act on a budget •How would this affect Pittsylvania County? –May require more local funding to our Schools School Board Budget •Schools presented their budget on March 9th to their Budget Committee based on the House version, which includes a 7% increase for school staff (requires $760,000 in additional local funding) •This budget was presented to the full School Board on March 14th and includes a total local funding request of $2,051,369 •The School Board’s Budget Public Hearing will be held on April 4th in their Board Meeting Room at 7 pm. School Information What is SOQ? •Standards of Quality-Is the standard set by the Virginia Department of Education (DOE) to provide quality education to all residents in the Commonwealth of Virginia. A locality’s share to maintain an educational program to meet these standards is also determined by the State. •The County’s local share is determined by the locality’s ability to pay. Our ability to pay is determined by the use of a local composite index. School Information, Cont’d What is SOQ? •The local composite index is derived based on several factors, one of which is a County’s Real Property Value •Pittsylvania County’s Local Composite Index (LCI) is currently .2511 •Localities typically pay more than the minimum required by DOE. Pittsylvania County currently provides a total of $1.2M over the minimum required by the State School Information, Cont’d School Information, Cont’d •Since 2018, we have provided cumulatively $17M over the Standards of Quality. Had we only funded the minimum, the total from 2018-2023 would have been $97,740,729 •The actual total from 2018-2023 $114,879,901 •Fortunately, we do fund over the minimum required for the County. We have given the Schools a total of $3.8M more in funding since 2018. School Information, Cont’d FY 2024 County Budget Review Budget Challenges •Reassessment-Remainder of Project must be budgeted-Estimated Cost $787,460 (an increase of $287,460 over FY 2023) •The CPI, which is used to determine Cost of Living Adjustments (COLA) stood at 7% in December –the Compensation Board is planning a 5% COLA effective July 1, 2023. A 5% COLA would equate to a budget increase of roughly $830K –just for general fund employees •County share of Debt Service for the Cyber Park Shell Building-Estimated annual payment $61,000 •Inflation will create some increase to fuel and electricity costs FY 2024 County Budget Review Budget Challenges-Continued •Requests include 15 new full-time positions, 20 new part-time positions and 3 requests to convert part-time positions to full-time positions at a total cost of $1.8M •Capital Requests are also included in this budget mostly for repairs to County facilities and vehicles $745K •Local funding is required to be placed in the DCJS grant for SRO positions totaling $300K •Budget plug last year was $813,532-not available for FY2024 FY 2024 County Budget Review Budget Challenges-Continued •Economic Development Fund-a contribution of at least $1M is needed in the ED Fund to cover upcoming incentive obligations FY 2024 County Budget Review What is and is not included in the FY2024 Budget? •General Fund Budget is Balanced with no tax increase •No Frivolous Requests •New employees-10 Part-time SRO’s for the Sheriff’s Office, 9 Part-time Site Operators and 2 Sanitation Drivers to equip the new Meadow Ridge Court Convenience Center, 1 Landfill Heavy Equipment Operator, and 1 Part-time Inspections Administrative Assistant •Minimal Capital Requests included •5% COLA included for all County employees •No new funding provided for Economic Development FY 2024 High Level Budget Review Next Steps •We need to set a public hearing to approve the FY2024 Budget •Code section 22.1-93-Approval of annual budget for school purposes states the governing body of a county and the governing body of a municipality shall each prepare and approve an annual budget for educational purposes by May 15 or within 30 days of receipts by the county or municipality of the estimates of state funds, whichever shall occur later. •Work with Finance Committee to determine the best time to approve the County’s budget to comply with the Code of Virginia Leadership Academy SML Regional Chamber Resolution #2023-03-03 (FY23-24 Tax Rates and Fees Confirmation Resolution to Set FY23-24 Tax Rates and Fees •Setting tax rates and fees for the upcoming budget year will allow the Commissioner of Revenue and Treasurer to finalize the 2023 tax bills and mail them to taxpayers so payment can be made by June 10th and posted in the system by year-end •The tax rates are the same as FY2023. The only change that was needed pertained to the relief percentage for Personal Property. This percentage changes each year to provide adequate relief to all eligible vehicles in the County. Since this number changes each year, the relief must change to accommodate the new totals.