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Home My WebLink About2003-03-12COUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: FY 2004 Revenue Update and Compensation/Benefit Recommendations SUBJECT/PROPOSAL/REQUEST: Compensation/Benefit Recommendations for FY 2003/04 Budget AGENDA DATE: February 12, 2003 ACTION: X CONSENT AGENDA: ACTION: ATTACHMENTS: No ITEM NUMBER: INFORMATION: INFORMATION: STAFF CONTACT(S): Messrs. Tucker, Castner, and Brandenburger, Ms. J ~,. ~ ! White and Ms. Suyes REVIEWED. BY: / BACKGROUND: In November 2002 staff presented a report on the status of our compensation and medical plan to the joint Boards. At that time the Boards deferred providing specific budget guidance to the County Executive and Superintendent pending further information on state budget impacts, local revenue projections, and the status of the current medical plan. On January 15, 2003 the joint Boards met and approved the HeathCare Committee's recommendation to increase employee premiums effective February 1, 2003 as claim projections for the current year will exceed plan revenue from Board contributions, employee premiums, and medical reserves. The Boards were informed that reserves will be depleted if claims continue to run above projections. DISCUSSION: At the February 12th meeting Kimberly Suyes will make a bdef presentation updating the joint Boards on the Compensation Committee's recommendation and the HealthCare Committee's recommendation for FY 2003-04. In addition staff will provide an update on revenues that were presented to the Board of Supervisors on February 5th. An update will also be provided from the School Division on their revenue projections. RECOMMENDATION: Discuss common direction regarding compensation and benefits for preparation of FY 2003/04 budgets. 03.024 RECEIVED AT BOS MEETING Date: - Agenda Item #:- Clerk's lnitials'~-----~~ 2/11/03 Albemarle County Joint Board Meeting Compensation and Benefits February 12, 2003 Competitive Review Market Salary Survey - July 2002 Classified/Administrator · Scale - We are now 0.5% above market median · Salary - We are now at market median Teacher · Scale - We are now above market median at steps 0, 5 and 15 but below market median at steps 10, 20, 35, 30 and'Maximum WorldatWork projects 3.8% increase next year 2/1.1/03 Salary Recommendations merit pool .for classified / administrators No classified scale adjustment 4.08% average salary increase across the pay le(this includes step increase) [] Continue 'the longevity payment for teachers with more than 30 years experience and classified staff 2/11/'03 Premiums · , Medical Insurance Premiums for FY 03/04 · FY 02/03 - + Premiums based on national trend, an increase of 16% is projected · Claims are projected to exceed revenue; monitor claims weekly + Premiums were adjusted mid-year · FY 03/04 - Budget based on a 20% increase in Board contribution from $3,840 to $4,608 2 2/11/03 FY 03104 Based on Adopted Strategy [] 3.8% merit pool for classified / administrators · No classified scale adjustment · 4.08% average salary increase across the pay scale (this includes step increase) · Continue the longevity payment for teachers and classified [] 20% increase in Board contribution for medical insurance [] 14.3% increase in Board contribution for dental insurance - 3 RECEIVED AT BOS MEETING Date: ~gnda Item #:_ ~itials:~--~:~2--~' State of the Local GOvernment Budget Revenue Change over FY03 Description Proper'[,/Taxes Real Estate 57.770 Personal Property (incl. PPTR) 28.350 Other property taxes 4.270 Subtotal, Property Taxes 90.390 Other Local Taxes Other Local Taxes 30.830 Other Local Revenue 4.121 Subtotal, Local Revenues (incl. PPTR) 125.34t Subtotal, State & Federal Revenues 11.168 Total, General Fund Revenues 136.509 Transfers 2.159 TOTAL,GEN. FUND REVS/TRANSFERS 138.668 Fund Balances 2.030 TOTAL, General Fund 140.707 Appropriated January FY04 FY 03 Budget Estimate Estimate less Budget FY 02/03 (t) FY 04 $ Inc/(Dec) % Inc/(Dec) 25.727=- _-- . -- - - ~. ~- 4.300 0.030 0.7% 95.t61 4.771 5.3% 3.740~ -_ : :-~- -__-= t30.773 5.432 4.3% 141.559 5.045 3.7% 2.209 0.050 2.3% 143.768~ ~- ~_ ;~ ~- ~ ~--_ 0.000 -2.030 -100.0% 143.768 3.06~ 2.2% Real Estate Taxes 60- 50- 40- 30- 20' 10' 0 Tax Yea~ 2001 Year 2002 FY01 FY02 FY03 Calendar Tax Year 2003 FY04 TaX Tax Impact of Reassessment 2001 Home Value $2110,000 Tax Payment @ $0.76 = $'1,520 Additional Taxes paid in 21103 Annual increase in Taxes since 2001 2003 ~ Value $237,400 Tax Payment @$0.76 = $1,804 $142 Allocation of Local Tax Revenues at Increase in local tax revenues = $5.8 million · Less revenue sharing = $1.0 million · Less transfer to Capital = $0.29 million $4.5 million at Available for OperatiOns · 60% to the School Division = · 40% to Local Government = $4.5 million $2.7 million $1.8 million The Fiscal Pickle )cai Tax Revenues Other Local Revenues State Revenues Federal Revenues $1.790 -$0.381 -$0.679 $O.292 Total Available Revenues $1.022 General Government Obligated Expenditures Ivy Landfill operations W achovia Building operations/maintenance Comprehensive Services Act Health Insurance Increase -20% Monticello Fire Station- full-year operations Regional Jail - census increase $0.600 $0.300 $0.300 $0.386 $0.243 $0'.217 Total Obligated Expenditures $2.046 Shortfall -$1.024 3 What We Are Proposing! pt Freeze 8 positions · Strategic Management Coordinator, 3 police officers, Fire Plans Reviewer, Zoning Plans Reviewer, Senior Planner, Social Worker pt Reduce depatmaent baseline budgets · Eliminates/defers Neighborhood Grant Program, Curbside Recycling, Development Areas Study, Groundwater Study, one Bulky Waste Amnesty Day, delays opening for Summer Swim Progran~ reduces r lcdi,q.:- funding for General Relic;':.o,: reduces other department line-item areas. pt Reduces on-going capital exPenditures · Defers replacement of 9 vehicles -7 Police; 2 Sheriff, IT equipment and software and Parks replacement equipment Pt: Level funds all community agencies at No funding for new or expanded requests -$0.355 (- 1:3%) -$0.471 (-5%) -$0.402 (-55%) -$0.080 (-.7%) -$0.000 -$1.308 million 4 Pursuing a Vision Excellence 0®® Growth and urbanization Citizen expectations Uncertain economy State mandates Security issues post 9/11 How the County is Respondin~.~ ¥ 0®® Listening to our Citizens Focusing on Strategic Priorities Stressing High Performance Creating our Financial Plan Focustngon Strategtc ...... : ...... Priorities. Promoting High Quality Edu ti'on- C~ 0®® o Bright Stars and Family Support Programs 87% of second graders at' or above grade level Drop-out rate less than 1% 58% graduates earned Advanced Studies Diploma SAT tests taken by 72% of seniors (46% national average) 6 National Merit finalists Focusing on Strategic Prtort_t es -, o,~cquisition of Conservation Easements o Crozet MaSter Plan Greenway Trail System Drought Stream assessment and Groundwater Study Provtd-~tn a Supe tor-. o'Monticello Fire Station o Simpson Park o Social Services Career Center 0 elderly Woods Edge Apartments for the o Expanded athletic field construction and maintenance o Affordable rental housing at WhitewOod Village Apartments 0®® o 93% satisfaction rate with County services o Expanded Website information and services Offered real estate records on-line Opened Visitors Assistance Center Purchased new COB south Received Triple A Bond Rating Continuing prOgress Towards Our Visio ~ '::.~ ~ - '~- ~ -~ -~- .... --7 ¢~,.~:_ ':: ~. u~,.- ...... -- :.," .. - '/''' : ~'- ~-~: ~::--:' -- ' I Our Financtal Plan - _¢ 0®® Our Budget Goals Maintain property tax rates at current levels Support high quality education Enhance quality of life Protect county resources Improve service effectiveness and efficiency Support our high quality workforce ~ro§ram capital infrastructuro improvements 0®® Budget Highlights Budget tOtals $215.7 million, a 3.7% increase Revenue Sharing Agreement with Charlottesville - $7.7 million, a $1.0 million increase $2 million in general government mandates and obligations $1.0 million gap addressed by reducing department budgets and programs o Community Agencies level funded o Unfunded requests from both local government and the School Division FY04 Total County Revenues FY 2003/04 Recommended Total County Revenues $215,738,795 Special Revenue Capital & Debt 5% 8% Self-Sustaining 5% Federal Revenue 3% Local Property Taxes, 38% State Revenue 24% Fund Balance/ Transfers 1% Other Local Revenues 17% FY03/04 Total County Expenditures FY 2003~04 Recommended Total County Expenditures $2'15,738,795 Capital & Debt 16% School Self-Sustaining Fund 5.2% General Government, 26.6% Special Revenue 6% School Operations 47% ®® ICounty Expenditure-Summary / ($ in milli([ns) FY 03 FY 04 Inc % Inc %Total General Government 50.7 51.9 1.2 2.3% 24% School Division Operating Self-Sustaining Subtotal 99.6 103.5 3.9 3.9% 10.4 11.2 0.8 7.2% 109.0 113.4 4.7 4.1% 53% Capital Program 33.6 34.5 0.9 2.7% 16% Revenue Sharing 6.7 7.7 1.01 15.5% 4% Other Revenue Funds 7.0 6.9 (0.2) -2.1% 3% GRAND TOTAL $208.1 ,$215.7$7.6 3.7% 0®® 5-Year Revenue Trends Revenue History Sum mary 70 60 50 ,,, 40 ~ 30 2O 10 Estate Other Local Revenue Personal ~ax X- X X X X ' X State & Federal Revenue FY 99 FY 00 FY 01 FY 02 FY 03 Proj. FY 04 Est. Fiscal Year Allocation of Local Tax Revenues Increase in local tax revenues = $5.8 million Less revenue sharing Less transfer to Capital $1.0 million $0.29 million $4.5 million Available for Operations ® 60% to the School Division - ® 40% to Local Government = $4.5 million $2.7 million $1.8 million The Budget Gap Local Tax Revenues Other Local Revenues S rate/Federal Revenues Total New Revenues $1.8 -$O.4 -$O.4 $1.0 New Government Mandates/Obligations Ivy landfill operations COB South operation/maintenance Comprehensive Services Act Health Insurance increases Monticello Fire Station Regional Jail - census increase $0.6 $0.3 $0.3 $0.4 $0.2 $0.2 Total New Mandates/Obligations $2.0 S h o rtfa II -$1.0 Tax Impact of Reassessment 2001 Home Value 2003 Home Value $237,400 Tax Payment @ $0.76 = $1,520 Tax Payment @ $0.76 = $1,804 Additional Taxes paid in 2003 $284 Annual increase in Taxes since 2001 $142 o No Closing the Gap ncrease in real estate tax rate o Look for efficiencies and expenditures savings: ® Froze 8 positions ® Reduced department operations by 5% ® Eliminated or deferred programs and initiatives ® Reduced capital equipment replacement ® Level funded community agencies ® No new or expanded requests funded General Government Operations ($ in thousands) Administration Judicial Public Safety Public Works Human Development Parks & Recreation Community Development Other FY 03 FY 04 Inc % Inc 7,361 7,528 167 2,3% 2,741 2,659 (82) -3.0% 16,94317,02986 0.5% 3,292 4,089 797 24.2% 11,51311,694181 1.6% 4,503 4,433 (70) -1.6% 4,176 4,26'185 2.0% 208 209 1 0.5% GRAND TOTAL 50,73851,903 1,165 2.3% School Operations ($ in thousands) Revenue Local State Federal General Fund Transfer Transfers/Fund Balance FY 03 FY 04 Inc % Inc 607 '656 49 8.0% 30,80831,623 815 2.6% 1,901 2,002101 5.3% 65,85068,412 2,562 3.9% 424 834 410 96.7% TOTAL REVENUE $99,590 $103,527 $3,937 4.0% Expenditure Request $99,590 $105,260 $5,732 5.8% SHORTFALL $1.733 million CIP Proposed Revenues Borrow ed Funds - Schools 33% FY 03/04 CIP Revenues $21,746,000 Local Revenues- GeneralFund 30% State Funds 1% Proffers 2% Borrow ed Funds -Gen Govt 27% Local 7% 0®® ClP Proposed Expenditures Schools 42% FY 03~04 CIP Expenditures $21,746,OOO Public Safety 10% Public Works 5% Community Development 6% Human Development 0.4% Stormw ater 1 °¢[CE 2% Tech Libraries GIS 0.1% 2% Parks & Recreation 5% & Judicial 27% CIP Highlights o Juvenile & Domestic Relations Courthouse o Fire/Rescue stations & equipment o Ivy Landfill remediation o Athletic field development o AC - $0.350 million o Monticello HS additional classrooms - $4.5 million o Henley renovation & expansion o Expanded school division maintenance/replacement program, School Division Wide Area Network upgrade o Flat economy at national, state and local levels Balanced budget pite des flat revenue growth - -- Maintained essential services through efficiencies and department reductions o Provided compensation and benefit increase to employees o Funded School operations at 4% increase o Maintained capital investment strategy by increased funding to Capital Program. 0®® Budget Calendar March 17 March 19 March 24 March 26 April 2 April 9 April 16 Board of Supervisors Work Session Board of Supervisors Work Session Board of Supervisors Work Session Board of Supervisors Work Session- Set Tax Rate/Proposed Budget Finalized FinaliZe Board Proposed Budget Public Hearing on Board's Proposed Budget and 2003 Calendar Year Tax Rate Board Adopts FY 04 Budget and FY 04-08 CIP The budget can be found online at www. albemarle, org/budget