GAINESVILLE Citizens Budget MAGISTERIAL DISTRICT Committee - - PowerPoint PPT Presentation

Citizens Budget Committee

GAINESVILLE MAGISTERIAL DISTRICT

¡ Reduce the footprint of County government in the lives of County taxpayers.

§ Identify programs that are no not core services required to be provided by County government and that should be defunded; and § Propose spending cuts to the remaining programs to reach a tax rate

• f $1.174 and achieve a Flat Tax Bill Budget for FY 2014; and

§ Propose a Flat Tax Bill Budget that enhances core government services of public safety, quality education of our children, and a community infrastructure that enhances the overall quality of life for residents.

¡ Produce a Flat Tax Bill Budget that is sustainable across all years of the Five Year Plan, both for revenue and spending.

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GUIDANCE TO THE BUDGET COMMITTEE SUPERVISOR PETE CANDLAND

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¡ Vito Losardo, Chairman (Gainesville District) ¡ Don Metzger (Gainesville District) ¡ Mike High (Gainesville District) ¡ Mac Haddow (Gainesville District) ¡ Al Alborn (Coles District) ¡ Janelle Anderson (Coles District) ¡ Scott Abell (Gainesville District) ¡ Steve Merkli (Gainesville District) ¡ John Gray (Occoquan District)

BUDGET COMMITTEE MEMBERS

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SPENDING CAP TARGETS FLAT TAX BILL BUDGET

Tax R Rate FY 2 2014 ($1 ($1.174) 4) Five Y Year P Plan County Impact $9,147,408 $98,700,000 Schools Impact $12,003,192 $129,500,000 TOTAL IMPACT $21,151,000 $228,200,000

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ENDORSED BY GAINESVILLE MAGISTERIAL DISTRICT CITIZENS BUDGET COMMITTEE

RECOMMENDED TAXPAYER SAVINGS

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GENERAL REVENUE/GENERAL FUND BUDGET VARIANCES

($ e expressed in m millions)

FY 2 2007 FY 2 2008 FY 2 2009 FY 2 2010 FY 2 2011 FY 2 2012

General Fund Turnback - $

$43.9 M $29.7 M $35.7 M $32.7 M $27.9 M $18.7 M

General Observations

• The General Revenue/General Fund Budget Variances (“Taxpayer Over-

Payments”) are used to fund the process known as the annual Carry Over Budget in August of each year.

• The Carry Over Budget is outside of the rigorous scrutiny of the FY budget

process undertaken by the BOCS at the beginning of each Fiscal Year.

• The average “Budget Variance” for past 3 years: $26.4 Million

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¡ The PWC Office of Management and Budget (OMB) has provided a document detailing Agency Turnbacks (Taxpayer over-collections) for the past five years, adjusted for “transfers out and mark to market revenue.” ¡ This proposal uses as a baseline the 3-year average Turnback for each Agency/Function to achieve the Taxpayer Savings (with some specific exclusions).

GENERAL FUND TURNBACK BY AGENCY

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THE GUIDING PRINCIPLE

Propose a Flat Tax Bill Budget that enhances core government services of public safety, quality education of our children, and a community infrastructure that enhances the

• verall quality of life for residents.

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AG AGENCY TURNBACK F FUNDING A AVG FOR 3 3 Y YEAR ARS COUNTY ATTORNEY $59,654 FIRE AND RESCUE $2,861,667 LIBRARY $156,678 POLICE $1,219,028 PUBLIC SAFETY COMMUNICATIONS $687,229 TOTAL EXCLUSIONS $4,984,256

AGENCY EXCLUSIONS FROM TAXPAYER SAVINGS RECOMMENDATIONS

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AG AGENCY TURNBACK F FUNDING A AVG FOR 3 3 Y YEAR ARS TOTAL AGENCY SAVINGS $27,255,231 AGENCY EXCLUSIONS $4,984,256 TOTAL NET SAVINGS $22,270,975

THREE YEAR AVERAGE AGENCY TURNBACK SAVINGS

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Ag Agency Sa Savi vings gs

Clerk of Court $225,797 Commonwealth Attorney $464,882 Community Services $1,273,140 Cooperative Extension Services $116,014 Criminal Justice Services $171,250

• Dept. of Information

Technology 2,613,209 Economic Development $308,719 Finance $741,710 General District Court $569,648 General Revenue Transfers $3,405,843 Juvenile Court Service Unit 55,588

Ag Agency Sa Savi vings gs

Non-Departmental Activities $5,729,897 Office of Executive Management $294,565 Office on Aging $306,114 Planning $339,355 Public Health $481,683 Public Works $2,369,565 Registrar $165,665 Sheriff’s Office $455,988 Social Services $1,987,095 Transportation $259,410 Office of Mgt. & Budget $4,961

EXAMPLES OF AGENCY TURNBACK AVERAGE THREE-YEAR SAVINGS

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CHAIRMAN STEWART’S FLAT TAX BILL PROPOSAL

The Gainesville District Budget Committee accepts Chairman Stewart’s Proposed Flat Tax Bill Budget and the Program Cuts contained in that proposal:

Stewart Proposed Cuts: $9,654,148

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Ag Agency Sa Savi vings gs

• Dept. of Information

Technology (over 3 years) $560,000 ($1.4 million total) Community Partners (33% Cut) $770,584 Hylton Center for Performing Arts (33% Cut) $400,000 Human Rights Office $553,712 Community Services Supported Employment $1,027,812 Reduce General Fund Subsidy for Land Development $1,800,000 Reduce Graphic Arts and Print Shop by $300,000 $300,000 Eliminate New Deputy County Executive Position $212,600

Ag Agency Sa Savi vings gs

Literacy Volunteers of America $25,970 Reduce Area Agency on Aging Information $200, $200,000 000 Community Relations – Communications/Reduce Quarterly Newsletters to Annual Report (Est.) $500, $500,000 000 Eliminate Supervisor Monthly Videos/ Promotional Budgets (Est.) $150, $150,000 000 Community Services Sheltered Employment $752,812 Eliminate Community Survey $2 $27, 7,169 69

TOTAL AL S SAVINGS $7, $7,280, 280,659 659

GAINESVILLE BUDGET COMMITTEE PROPOSED TAXPAYER SAVINGS

(IN ADDITION TO CHAIRMAN STEWART’S PROPOSED CUTS)

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Source o

• f S

Savings Am Amount

Recommended Taxpayer Savings From Agency Turnbacks $22,335,137 County Program Spending Cuts $7, $7,280, 280,659 659 Chairman Stewart Proposed Spending Cuts $9,654,148

TOTAL AL S SAVINGS $39, $39,269, 269,944 944

TAXPAYER SAVINGS FROM SPENDING CUTS IN FY 2014

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REVENUE D DESCRIPTION AM AMOUNT COMBINED FLAT TAX BILL REVENUE ON COUNTY AN

AND SCHOOL BUDGETS

$21,151,000 RECOMMENDED TAXPAYER SAVINGS $22,335,137 COUNTY PROGRAM SPENDING CUTS $7, 7,280, 280,659 659 CHAIRMAN STEWART PROPOSED SPENDING CUTS $9,654,148 NET REVENUE AVAILABLE $18,118,944

FLAT TAX BILL FY 2014 BUDGET PROFILE

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PROGRAM AM D DESCRIPTION FUNDING R REQUIRED

FUND EMPLOYEE ANNUAL 2% COMPENSATION FOR PAY PLAN ADJUSTMENTS (est.) $9,000,000 REDUCTION IN BPOL TAX $5,000,000 FUND FULLER HEIGHTS PARK; OCCOQUAN RIVERFRONT PARK; CATHARPIN PARK; POTOMAC HERITAGE NATIONAL SCENIC TRAIL $1,252,209 FUND ELECTIONS REGISTRAR REQUEST $350,000 FUND 10 ADDITIONAL POLICE OFFICERS $1,000,000

TOTAL

$16,602,209

REMAINING REVENUE

$1,516,735

POTENTIAL PROGRAM INVESTMENTS

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REPROGRAMMING OF FUNCTIONS

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¡ Decommission Audit Services Department (6 positions plus outside contractor) ¡ Create Office of Taxpayer Advocate

§ Reports directly to BOCS § Completely independent of County Executive

THE TRANSFER OF THE AUDIT SERVICES DEPARTMENT TO THE OFFICE OF THE TAXPAYER ADVOCATE IS BUDGET NEUTRAL – IT INVOLVES A CHANGE OF MISSION TO FOCUS ON SPENDING SAVINGS IN COUNTY AGENCIES.

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ENDORSED BY GAINESVILLE MAGISTERIAL DISTRICT CITIZENS BUDGET COMMITTEE

BUDGETING MODEL RECOMMENDATIONS

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¡ Maintain adherence to excellent five-year budget process. ¡ Require program spending audits on a staggered three-year cycle for all County programs. ¡ Sunset program authorizations on all County programs every five years (on staggered review schedule) ¡ Appointment of Citizen Audit Advisory Committee one appointment by each Supervisor)

REFORM COUNTY PROGRAM AUDIT PLAN

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¡ Retain funding for encumbered “Traditional Carry Over” contract commitments. ¡ Require any legitimate budgeting need to be presented and justified at the beginning of the FY in the context of all other budget priorities. ¡ Eliminate the “Budget $5 and Spend $4” budgeting model used to generate Agency Turnbacks for Carry Over Budgets. ¡ Require CXO to implement best business practice reviews and report to BOCS on Agencies failing to meet budget targets.

REFORMING CARRY OVER PROCESS

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ENDORSED BY GAINESVILLE MAGISTERIAL DISTRICT CITIZENS BUDGET COMMITTEE

SCHOOL FUNDING RECOMMENDATIONS

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¡ The current Revenue Sharing Agreement between the BOCS and the PWC School Board provides no incentives for efficient use of taxpayer funds:

§ The BOCS has no oversight authority in the current Agreement; and § The School Board spending is driven by the automatic 56.75% of revenues rather than the actual funding needs of the School Board.

¡ The current Revenue Sharing Agreement imposes a hidden and unjustified cost increase on all needed materials, equipment, and service delivery costs.

REFORMING THE SCHOOL FUNDING REVENUE SHARING AGREEMENT

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Estimated Base Cost: $35,000 The tax revenue needed for each $1.00 in PWC purchasing power = $2.312

PRINCE WILLIAM COUNTY POLICE CRUISER

Base cost: $35,000 Tax revenue needed to buy Police Cruiser: $35,000 x $2.312 = $80,920

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Estimated Base Cost: $4,000 per unit The tax revenue needed for each $1.00 in PWC purchasing power = $2.312

PRINCE WILLIAM COUNTY VOTING MACHINES

Base cost: $4,000 per Voting Machine Tax revenue needed to buy a single Voting Machine: $4,000 x $2.312 = $9,248

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Estimated Base Cost: $275,000 The tax revenue needed for each $1.00 in PWC purchasing power = $2.312

PRINCE WILLIAM COUNTY FIRE & RESCUE VEHICLE

Base cost: $275,000 Tax revenue needed to buy a Fire & Rescue Vehicle: $275,000 x $2.312 = $635,800

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Estimated Base Cost: $300,000 for all County Parks The tax revenue needed for each $1.00 in PWC purchasing power = $2.312

PRINCE WILLIAM COUNTY PARKS FIELD MAINTENANCE

Base cost: $300,000 Tax revenue needed to pay for Field Maintenance at all County Parks: $300,000 x $2.312= $693,600

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Estimated Base Cost: $3.36 for a legal pad The tax revenue needed for each $1.00 in PWC purchasing power = $2.312

PRINCE WILLIAM COUNTY LEGAL PAD PURCHASE

Base cost: $3.36 Tax revenue needed to pay for a Legal Pad: $3.36 x $2.312 = $7.77

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¡ In FY 2014, retain the school funding level at the 56.75% of County tax revenues as provided in the existing Revenue Sharing Agreement. ¡ In FY 2015, the School Board will have to present its budget to the BOCS to be reviewed and evaluated based on the needs and spending priorities of all County programs. ¡ The BOCS would be able to provide guidance on specific priorities, including applying the $12 million otherwise lost in the FY 2014 budget to specific priorities, such as:

§ Funding for new student enrollment § Funding for class size reduction initiatives § Paying classroom teachers competitive salaries to assure retention

NEW SCHOOL FUNDING MODEL

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CHANGE THE SCHOOLS REVENUE SHARING AGREEMENT

All surrounding jurisdictions in Northern Virginia use a school funding model where the BOCS reviews a budget proposal by the School Board, and that proposal is then reviewed in the context of the entire County budget and spending priorities that are determined by a holistic review

• f available funding resources.

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