AGENDA DATE: 9/2/2015
TITLE:
Title
Budget Process Improvements and FY 17 Operating and Capital Budget Calendar
BODY
SUBJECT/PROPOSAL/REQUEST: Set dates related to the development of the FY 17 Budget
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Foley, Letteri, Walker, Davis, Catlin, Allshouse, L.
PRESENTER (S): Lori Allshouse
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: The process of developing the County’s Operating Budget for Fiscal Year 17 (FY17) and the Capital Improvements Program (CIP) for FY17-21 is underway.
In an effort to continuously improve the County’s budget development processes, the Office of Management and Budget (OMB) interviewed Board members after the FY 16 budget process to receive feedback and suggestions on ways to improve the process in the future. In addition to meeting with Board members, OMB interviewed budget development staff who work at our benchmark jurisdictions and held meetings with School Division staff and others to identify ways to improve the efficiency and effectiveness of many of the County’s internal budget development processes. In addition, the five year financial planning process has been accelerated this year and an updated Five-Year Financial Plan has already been prepared for the period of FY 17 to FY 21 to ensure that the Citizen Resource Advisory Committee had up-to-date information as the Committee began its work this summer.
This Executive Summary includes three attachments for the Board’s review and consideration. Attachment A provides a summary of staff’s recommended budget development process improvements identified for the upcoming cycle; Attachment B includes the proposed FY 17 budget development calendar; and Attachment C includes additional details regarding staff’s proposed changes to the Capital Improvement Plan (CIP) budget process.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Attachment A includes specific recommended adjustments to the County’s five year financial planning process, the cultural agency contribution process, and a summary of improvements to the capital improvement planning process for the Board’s review and consideration.
Attachment B provides a preliminary budget calendar for the FY 17 budget process. The budget development calendar establishes specific dates for Board meetings and public hearings on the tax rate, the budget, and the CIP. Staff will provide the public with as much notice as possible for planned community engagement opportunities, public hearings and work sessions associated with the development of the upcoming budgets.
There are several dates that are driven by Virginia Code requirements which are reflected in the attached calendar:
• Localities with a first-half tax year collection in June must adopt the tax rate on or before April 15.
• There must be at least seven days between the public advertisement of the budget public hearing and the actual hearing date.
• There must be at least seven days between the public hearing and the adoption of the budget.
• Localities must provide at least 30 days notice of the tax rate public hearing if the reassessment would result in an increase of one percent or more in the total real property tax levied compared to the prior year’s tax levies. Prior to 2009, the requirement was seven days notice.
In addition to these Virginia Code requirements, the School Board and School Division staff has requested that a public hearing be scheduled so that it does not coincide with Spring Break.
The preliminary budget calendar for the FY 17 budget process meets the Virginia Code requirements and the School Board’s request. Additionally, this calendar assumes that the reassessment would result in an increase of one percent or more in the total real property tax levied in Calendar Year (CY) 16 compared to CY 15, and schedules for the necessary 30 days notice.
If the Board desires to hold the tax rate and budget hearings on the same day and to increase flexibility regarding the timing of work sessions, the Board has the option to set the tax rate cap for advertisement in early February. This would require, however, that the Board set an advertised tax rate cap based on the Board’s guidance during the Five Year Financial planning process and in advance of having received the County Executive’s Recommended Budget and the School Board’s Funding Request. If the Board chose this approach, County staff would actively communicate to the public early in the process that the advertised tax rate is the maximum rate that could be set and must accommodate future budget adjustments, and that the Board may ultimately set a tax rate lower than the advertised tax rate.
Attachment C provides additional details regarding staff’s proposed changes to the CIP budget development process.
RECOMMENDATION:
Recommendation
Staff recommends that the Board review and concur with the recommended budget development process improvements identified in Attachments A and C and adopt the preliminary budget calendar set forth in Attachment B.
If the Board chooses to set the advertised tax rate cap at an earlier time in the cycle, staff will update the budget development calendar and provide it to the Board for the Board’s adoption in October.
ATTACHMENTS:
Attachment A: Proposed Budget Development Improvements
Attachment B: FY 17 Recommended Budget Calendar
Attachment C: Proposed Budget Process Changes for the Capital Improvement Program