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03-05-2024 Finance Committee PresentationFinance Committee Meeting March 5, 2024 FY24-25 Budget Overview The goal of the budget is to provide the level of service that our citizens expect and to plan for future growth, at a tax rate adjusted for the large increase in property values. Staff reviewed all department requests, making reductions to the requests based on actual, not wanted,use.No wish list! Therefore, this budget is as lean as we can make it. Every tax dollar has a higher standard and must be justified as a needed cost! No one wants more taxes! This budget is a balance between reducing taxes with what is expected of us TO DO for this community, now and going forward. Budget Challenges Reminder: we started this year’s budget with a $2M budget deficit (due to increasing costs the last 6 years with no tax increase). As would any business, we must be able to operate and pay the bills as an ongoing organization with payroll, equipment, fuel costs, etc. The County faces new long-term multi-million $$ capital projects with the Jail, renovations to the Historic buildings, a future Courthouse complex, among others. We need to plan for the long term and not just today! The State contribution to Schools was reduced by $900,000, due to the increased local composite index, which we are required to cover as per Standard of Quality Requirements. The last two years we have given Schools 6% above the base SOQ standard and would like to do so again. FY 2025 Revenue Projections Estimates currently being used for revenue projections are based on historical data. We will not have confirmed figures for the major sources of revenue until month-end. Reassessment-Value increased on average 48% Value of Property: $6.2B Tax Value at current 62¢ rate: $36.5M Additional Revenue at this rate: $10.1M FY2025 –Budget funded with 59¢ RE Tax Rate A 59¢ Real Estate Tax Rate will provide an additional $8.3M in Revenue A total of $2.175M has been removed from the budget to get bring expenditures in line with revenues Historical Data for all localities – Only Pittsylvania adjusted for New Reassessment Historical Data for all localities – Only Pittsylvania adjusted for New Reassessment Budget Updates Cuts to General Fund Budget Based on 59¢ Tax Rate 59¢ Real Estate Revenue 8,322,492.00 Cut Needed (1,717,843.00) OPERATING: Budgeted Requests Difference over Prior Year 10,040,335.00 DEPARTMENTS: COMMISSIONER OF REVENUE (14,119) ELECTORAL BD/REGISTRAR 6,000 SHERIFF (373,100) FIRE &RESCUE (413,000) JAIL (10,261) BUILDING INSPECTIONS 71,983 ANIMAL CONTROL (20,768) BUILDING & GROUNDS (8,469) ECONOMIC DEVELOPMENT (8,827) DEBT & INTEREST SERVICES 597,924 CAPITAL (2,015,424) Adjusted GF Increase Over Prior Year 7,852,274 Possible Increase for Schools-Based on Senate Version 330,000 Anticipated GF Increase Over Prior Year 8,182,274 Budget Updates Pittsylvania County Schools Current State Budget Proposals Local Required Effort Budget Versions Local Required Effort (LRE)LRE plus 6% above Minimum 2024 School Contribution Additional Funding Required Over 2024 Contribution Governor 22,897,434 24,271,280 22,096,356 2,174,924 House 23,998,830 25,438,760 22,096,356 3,342,404 Senate 23,208,455 24,600,962 22,096,356 2,504,606 FY2025 –Budget funded with 59¢ RE Tax Rate All new requested positions-TOTAL COST $689,677 –This would fully fund a new ambulance station at 640. 3% COLA for all County employees on the County’s pay plan- TOTAL COST $670,000 Sheriff’s Department-Year 2 of Vehicle Lease (20 Vehicles)- Year 1 funded with Carryover Funds-TOTAL COST $213,956 What is currently funded in this Budget FY2025 –Budget funded with 59¢ RE Tax Rate Fire & Rescue Shared Costs-TOTAL COST $256,600 EMS SVC Contracts-Equipment -$212,800 Vehicle Insurance -$35,000 Training -$5,000 EMS-OMD –($1,200) Software Support Expense –$5,000 Fire & Rescue Volunteer Operating Increase-TOTAL COST $227,600 Base Funding Increased from $26,500 to $31,800 (20% raise)- TOTAL COST $169,600 Fire Service Contracts -$48,000 Line of Duty Insurance -$10,000 What is currently funded in this Budget FY2025 –Budget funded with 59¢ RE Tax Rate New Community Contributions –TOTAL COST $264,410 (included additional funding for Public and Mental Health) Pittsylvania County School Funding to meet Local Required Effort –TOTAL COST $2,175,000 New Capital Projects –TOTAL COST $3,150,000 GRAND TOTAL OF MAJOR INCREASES $7.6M What is currently funded in this Budget Capital Budget Computer Capital Outlay -$136,547 (HR On-Boarding, Community Development Public Access, and Telephone System Upgrade) Building & Grounds Capital Outlay -$340,000 (Emergency Repairs Fund) Fire & Rescue Capital Outlay -$1,270,000 (Drug Box Requirement, PPE, Medical and Training Equipment, Volunteer Radio Upgrade, 2 Volunteer Fire Engines (increased contribution of $25K each), 2 Volunteer Ambulances (increased contribution of $25K each), Career Staff Ambulance) Community Development Outlay -$1,979,493 (Comprehensive Plan, Moses Building Renovations, Voting Equipment (Year 1), Library-Bookmobile (Downpayment) Recreation Capital Outlay -$40,250 (Tractor for Wayside Park, School Facility Use Fee) GRAND TOTAL –ALL CAPITAL $3,766,290 Long Term Capital Needs Long Term Capital Needs Currently, the County has a modest amount of debt outstanding, totaling $31 million. Annual debt service range from $1.2 million to $8.4 million, with final maturity in FY 2031. With debt service falling off, we are proposing to use the surplus for a long-term Debt Reserve fund for large capital projects upcoming such as Jail and Courthouse complex. Budget Updates Community Donations New Positions Tax Rate: In order to offer some tax rate relief, the cuts we made from the original $10 million in requests totaled $1.7 million,in order to reduce the tax from 62 to 59 cents, to give you a budget now balanced at 59 cents. It includes the new operating and long term capital items mentioned, which will have immediate and long term positive impact on the community. Discussion Topics Discussion Topic: New Positions Requests include new positions-TOTAL INC $690K 7 Full-time Positions: 1-Information Technology 4-Public Safety 1-Recreation 1-Community Policy and Management Team (CPMT) 3 Part-time to Full-Time 1-Registrar 2-E911 Discussion Topic: New Positions Department #Department Description Standard Job Code Desc Annual Salary Totals FULL TIME POSITIONS:with Benefits 1 012510 INFORMATION TECHNOLOGY HELP DESK TECHNICIAN 40,642.54 60,120.06 2 032200 PUBLIC SAFETY FIREFIGHTER/EMT-BASIC 45,865.71 65,538.84 3 032200 PUBLIC SAFETY FIREFIGHTER/EMT-BASIC 45,865.71 65,538.84 4 032200 PUBLIC SAFETY FIREFIGHTER/EMT-PARAMEDIC 57,176.73 79,473.79 5 032200 PUBLIC SAFETY FIREFIGHTER/EMT-PARAMEDIC 57,176.73 79,473.79 6 053500 YOUTH SERVICES (CPMB)CASE MANAGER 40,642.54 60,120.06 7 071100 RECREATION YOUTH SPORTS COORDINATOR 55,000.00 78,167.10 GRAND TOTAL-FULL-TIME SALARIES AND BENEITS 488,432.47 PART-TIME TO FULL-TIME POSITIONS: 1 013100 ELECTION BOARD ASSISTANT REGISTRAR-PT TO FULL-TIME 44,449.00 64,904.70 2 035500 E911 DISPATCHER-PT TO FULL-TIME 40,642.54 60,120.06 3 035500 E911 DISPATCHER-PT TO FULL-TIME 40,642.54 60,120.06 GRAND TOTAL-PT TO FT-SALARIES AND BENEITS 185,144.82 PART-TIME POSITIONS: 1 073100 LIBRARY BROSVILLE-PT LIBRARY ASSISTANT ($14.27 PER HR x 20 HOURS PER WEEK)14,944.80 16,099.28 GRAND TOTAL-PART-TIME-SALARIES AND BENEITS 16,099.28 GRANT TOTAL-ALL SALARIES 689,676.57 Discussion Topic: Community Donations Discussion Topic: Tax Rate Relief We recommend lowering the tax rate to 59¢, with a balanced budget which we are presenting to you now.This rate would allow us to do the new things we mentioned to strengthen the organization and impact the community for 2025 and will allow for some growth over the following 3 fiscal years, including a debt reserve fund for our large capital items such as the jail and courthouse. Discussion Topic: Tax Rate Relief 62¢ per $100 Current House Value Average increase to Values New Home Value as of January 1, 2024 Previous Tax Paid $200,000 48%$296,000 $1,240.00 Proposed Tax Rates New Tax Annual Difference Difference Per Penny 59¢$1,746.40 $506.40 - 58¢$1,716.80 $476.80 $29.60 57¢$1,687.20 $447.20 $29.60 Effect of Tax Rate on County Citizens Scenario: Value Based on Average Value of Home