Caroline County Budget 1 Presentation to the Caroline County Board of Supervisors February 23, 2010

Caroline County Budget 2 All-America City Recipient

Caroline County Budget 3 Still Growing, Despite the Economy 2009 population – 28, population – 27, Census – 22, Census activity underway. Kickoff was held Tuesday, February 16 at Food Lion Plaza in Bowling Green

Caroline County Budget 4 We’re Still Growing (cont)….. Unemployment is 9.6 percent. Only City of Fredericksburg is higher. Record number of people utilizing the Department of Social Services.

Caroline County Budget 5 And Just When You Thought It Couldn’t Get Any Worse….. State has to make up a $2 Billion shortfall. Governor Kaine proposed a “Caboose Budget” that contains $514,842 worth of reductions for Caroline County. The “Caboose Budget” joins with Governor McDonnell’s Budget for General Assembly consideration.

Caroline County Budget 6 Couldn’t Get Any Worse (cont) Recordation Taxes projected to be down 42 percent or approximately $140,000 Reductions in reimbursements from the Comp Board for Constitutional Offices - $415,586 Reductions in Grant Reimbursements - $83,135

Caroline County Budget 7 Couldn’t Get Any Worse (cont.) Reductions in Electoral Board reimbursements - $8,000 Forcing Localities to pick up costs for DMV data related to personal property - $5,000 Discussions are that reductions could be even worse than what is on the table.

Caroline County Budget 8 Dealing with Now and Then…. Revenue shortfall in current year’s budget could reach $300,000 – tied to Caboose Budget. Last year, County government reduced all budgets 15 percent, except for Public Education; Filled only necessary positions; restructured capital program; and employees took six furlough days. Downsized employee base by six positions.

Caroline County Budget 9 Rebuilding Fund Balance Good strategy from Housing industry never met projections beginning in General Fund loaned the Utility Fund $5 million. Fund Balance has not recovered.

Caroline County Budget 10 County’s Debt Amount….. $27,054,606 – General Fund $33,650,994 – Public Schools $20,723,800 – Utility Fund $ 3,281,477 – Dawn $ 6,000,000 – Revenue Anticipation Note for cash flow. Proposed budget pays back $6,646,013 in debt retirement.

Caroline County Budget 11 Uncertain County Revenue Picture….. Collection of Permits, Fees and Licenses – Down $190,000. Revenue from Use of Money and Property – Down $85,000. Recovered Costs – Down $185,000.

Caroline County Budget 12 Uncertain Revenue Picture (cont.)…… Real property tax rate proposed to stay the same at $0.53 x $100. Reassessment underway that costs the County $200,000. Budget proposed on the BOS equalizing the tax rate in line with property reappraisal.

Caroline County Budget 13 Uncertain Revenue Picture (cont.)……. Dominion Power project – additional $600,000 in Public Corporation taxes. Proposed is a five percent increase in user rates for utility customers that would generate $320,000 for the Utility Fund. Utility Debt will continue to be paid by the General Fund.

Caroline County Budget 14 Increased Fixed Costs….. Matching premium payments for employee health insurance - $121,000. Picking up contributions to retirement and life insurance - $165,000. Increases in General Property expenses with more buildings on line.

Caroline County Budget 15 Increased Fixed Costs (cont.)….. Increases to Regional Correctional Institutions - $217,605. Proposal is $100,000 less than requested by the institutions.

Caroline County Budget 16 Proposed Reductions to Meet Revenue Shortfalls……. Decrease personnel costs through attrition, reductions in force and across- the-board salary reductions - $995,000 in savings. This includes a reduction of 14 full-time positions.

Caroline County Budget 17 Proposed Reductions to Meet Revenue Shortfall (cont.)…… Across-the-board salary reductions would include one percent for those employees making $40,000 or less; and two percent for those employees making over $40,000. Other reductions include: 1. Contributions to outside agencies - $57,500.

Caroline County Budget 18 Proposed Reductions to Meet Revenue Shortfalls (cont.)….. 2. Elimination of Summer Jobs Program - $10,000 savings. 3. Closing of the Cannery - $17,000 savings. 4. Reduction to County Health Department - $27,000 savings.

Caroline County Budget 19 Proposed Reductions to Meet Revenue Shortfalls (cont.)….. 5. Reducing hours at certain Solid Waste Convenience sites - $95,000 savings.

Caroline County Budget 20 Revamped Capital Program…. General Fund Projects Repairs to Knuckleboom Truck - $60,000. Repairs to Fire Engine for Port Royal - $60,000. Roof replacement at Public Works Building - $13,000.

Caroline County Budget 21 Revamped Capital Program (cont.)……. Victory Park - $75,000. Utility Fund Projects Rappahannock River Permitting - $462,500. Interim Water Plan - $554,500. Expansion of Wastewater Treatment Plant - $2 million.

Caroline County Budget 22 Revamped Capital Program (cont.)…… Utility Equipment - $140,000.

Caroline County Budget 23 Efficiencies in Fire and Rescue…… Proposed Budget relieves volunteer companies from using their own money to fund operations. Some financial functions moved directly under the Chief’s supervision. Volunteer funds directed to companies answering the most calls.

Caroline County Budget Budget Summary Overall Budget - $89,188,378 – 4.3 percent more than FY Operating Budget - $85,956,378 – 0.5 percent more than FY General Fund Budget - $34,565,856 – 0.3 percent less than FY 2010.

Caroline County Budget 25 Education…… Proposed local share is $10,900,000 - $442,281 less than FY Composite Index requires Caroline County to fund at least $10,600,000. School Board Budget presentation scheduled for March 9.

Caroline County Budget 26 General Fund Transfers….. Debt Retirement - $1,889,904 Social Services - $407,073 Public School Division - $10,900,000 Comprehensive Services Act - $405,356 Dedicated Revenue from Personal Property Tax - $1,574,999

Caroline County Budget 27 Human Resources…. Budget funds 173 full-time and 60 part- time employees. This is 13 fewer full- time positions than in FY Proposal to establish County Attorney as an employee rather than a contracted service.

Caroline County Budget 28 Public Utilities……. Operations will continue to be self- supporting with this Budget proposal. County receives approximately $20,000 per month to provide water to Lake Caroline. Also restored is $62,000 to provide water and sewer to VDOT rest stop on I-95.

Caroline County Budget 29 Conclusion County now realizing the financial nightmare of the state and financial scenes. Deep reductions in revenue are off-set by deep cuts in personnel and salary reductions. Takes staffing back to near levels.

Caroline County Budget 30 Conclusion (cont.)….. General Assembly actions will likely not make financial conditions any better, but could make them worse. Budget proposals could be moved up before July 1 in order to make up $300,000 shortfall in this year’s Budget.

Caroline County Budget 31 Thanks! To Fran Hatcher, Director of Finance, for putting the Budget document together.

Caroline County Budget 32 Questions and Comments!