Amelia County FY19 Budget Draft

Budget Breakdown by Fund: FY18 Budgeted Expenditures FY19 Budgeted Expenditures Increase (Decrease) General Fund $ 11,460,056 $ 11,828,496 $ 368,440 Capital Improvement Fund $ 1,200,000 $ 600,000 $ (600,000) Water and Sewer Fund $ 868,489 $ 766,613 $ (101,876) School Funds $ 18,515,661 $ 18,917,889 $ 402,228 Total Budget $ 32,044,206 $ 32,112,998 $ 68,792

A Closer Look at Our General Fund Budget FY18 Budget FY19 Increase (Decrease) General Property Taxes $ 8,413,751 $ 8,661,185 $ 247,434 Other Local Revenues $ 2,549,015 $ 3,018,766 $ 469,751 State and Federal Revenues $ 4,568,761 $ 4,476,668 $ (92,093) Transfers In $ 519,794 $ 491,250 $ (28,544) Total Revenues $ 16,051,321 $ 16,647,869 $ 596,548 Expenditures $ 11,460,056 $ 11,828,496 $ 368,440 Transfer to School Funds $ 5,000,000 $ - Total Expenditures $ 16,460,056 $ 16,828,496 Net Change in Fund Balance ($408,735) ($180,627) $ 228,108 Revenue Review: -Increase in Property Taxes due to higher number of businesses / residents -Increase in Other Local Revenues due to Reimbursements from Schools and Social Services not required in the past -Decrease in State and Federal Revenue due to lack of SRO grant and PSAP grant funding

We have reviewed the changes in Revenue – So where are Expenditures increasing? Analysis performed for all general fund departments – any changes greater than both 5% and $10,000 are listed below: School Accounting – increasing $140,946 (100%). New department – to be fully reimbursed by Schools quarterly. Reassessment – decreasing $75,000 (100%). Reassessment services were completed in FY18. Ambulance/Rescue – increasing $193,000 (306%). Rescue Squad increased one of two crews to 24/7 coverage in FY17. Currently losing $21,000/month. Primarily serves Amelia with help from adjoining Counties. General Properties – increasing $64,613 (8%). Filling two vacant positions. Miscellaneous – increasing $122,596 (70%). Both Optima Health and VRS now require one bank transfer so General Fund pays for Social Services’ benefits and is fully reimbursed by them monthly. Transfers – decreasing $157,486 (32%). Transfer to Water/Sewer Fund lower due to change in rate structure and lower expenditures. These net to a $288,669 increase, leaving a $79,771 increase amongst other departments – detailed breakdown posted on website.

Salaries/Benefits Included in FY19 General Fund Budget 1.5% increase in local (non state-funded) salaries (~$58,000 plus ~$4,400 FICA taxes), as recommended by County Administrator 1.3% decrease in VRS employer rate set by state (~50,500) Assuming 20% increase in health insurance – currently in negotiation with Optima and may go out to bid (~116,000)

General Fund Expenditures

General Fund Balance At-A-Glance General Fund Balance At-A-Glance *$1,331,659 decrease in fund balance over the prior five years *At June 30, 2017, unassigned fund balance was at 35% of general fund expenditures *Lowest cash of year around September 30 – at 09.30.17 unassigned fund balance was at 17% *Governmental accounting best practice is to maintain a minimum fund balance of 15%-25% general fund expenditures at all times.

Our County-Wide Revenues Total Increase - $1,156,801 (3.99%)

School Contribution Summary -Note: In FY17, the school division overspent its local contribution from the County by $482,087. -In FY16, $85,065 was returned to the General Fund. -In FY15, $849,116 was returned Amelia’s FY19 Required Local Effort as projected by Department of Education at ADM of 1740 (set by Schools) = $4,065,474. Currently budgeting for 23% higher than RLE. School Division’s budget equals 59% of total County-wide budget. FY18 FY19 Difference State Funds $11,295,075 $11,814,677 $ 519,602 Federal Funds 1,365,779 1,374,060 8,281 County Funds 5,000,000 - Textbook Beg Fund Balance 132,162 (132,162) Cafeteria Beg Fund Balance 35,000 (35,000) Other Funds 687,645 729,152 41,507 TOTAL $18,515,661 $18,917,889 $402,228

What Happens with the Real Estate Tax Rate on a Reassessment Year? Rate Equalization Amelia’s Equalized Tax Rate Per State Code Chapter 32 Section 58.1-3321: “When any general reassessment of real property by a county would result in an increase of one percent or more in the total real property tax levied, such county shall reduce its rate of levy for the forthcoming tax year so as to cause such rate of levy to produce no more than 101 percent of the previous year’s real property tax levies.” Current Tax Rate = $0.51 Reassessment resulted in a 9% increase in tax levy at $0.51 Rate to equalize = $0.47 Tax rate built into this FY19 budget is $0.47 Tax Rate for 2015, 2016, and 2017 (FY16, 17, and 18) has been $0.51

Rate Equalization Breakdown FY17 Assessed Value $1,151,065,700 FY17 Tax Amount Levied $5,870,435 Tax Rate x .0051 Levy Percentage Allowed x 1.01 Tax Amount Levied Total Levy Allowed (b) $5,929,139 Rate to Equalize $0.0047092 FY18 Assessed Value $1,265,600,600 (a * rate = b) Less: New Construction (6,545,644) Comparable FY18 Assessed Value (a) 1,259,054,956 x .0051 $6,421,180 Difference in Tax Amount Levied $550,745 *Assessed Values provided by Commissioner of Revenue Percentage of Change 9%

Anticipated Budget Schedule Dec 1, 2017 – Feb 28, 2018: Initial drafting of FY19 budget in cooperation with departments and agencies. March 21, 2018: Presentation of draft budget to Board of Supervisors. March 22 – April 6, 2018: Budget work sessions as needed. Note – General Assembly has no agreed-upon budget at this time. Could be late spring before we know the final figures. April 18, 2018: Public hearing on FY19 budget. NOTE – this would require advertisement before April 11 (Monitor’s deadline to meet this timeline = April 2). On or before April 30, 2018: Adoption of FY19 budget. NOTE – this date can extend into May if necessary.