AGENDA DATE: 11/19/2025
TITLE:
Title
Financial Management Policies Update
BODY
SUBJECT/PROPOSAL/REQUEST: Consider revisions to the County's Financial Management Policies
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Sumner, Usher, Bowman
PRESENTER (S): Andy Bowman
LEGAL REVIEW: Not Required
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: According to the Government Financial Officers Association (GFOA) guidelines and the County's financial advisors, financial policies should be reviewed periodically to ensure they are current and effective. The County's Financial Policies were initially adopted by the Board of Supervisors on October 5, 1994, with the last update on September 7, 2022.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds
DISCUSSION: Staff has conducted a review of the County’s Financial Management Policies and recommends several updates. These recommendations have been reviewed by the County’s financial advisors, Davenport and Company, LLC, and are attached (Attachment A). In addition to the proposed changes, Attachment A provides explanations for each specific change. In general, these changes are primarily due to the following:
1. The Allocation of Shared Revenues formula update: Additional language is recommended, consistent with the Board’s direction during the FY 26 budget development process, to dedicate an amount and the future change in the value of that amount to the Affordable Housing Investment Fund.
During the FY 26 budget development process, the Board discussed similarly dedicating the change in the value of the 3.2 cents increase in the real estate tax rate that was dedicated to public safety. A majority of the Board did not direct a change to how that revenue would be shared; therefore, language for such a change is not included in the proposed updated policy language at this time. However, the Board may direct a change in the future either by policy or as stated in the current policy (annually in the budget development process). During the upcoming annual budget process, the Board will have additional information about the specific service and funding circumstances for County Government and Public Schools. Further analysis is discussed in Attachment B - Allocation of Shared Revenues Analysis.
2. Grants Policies: This section, which did not receive substantial changes in the 2022 update, adds reference to prior Board action delegating authority to the County Executive and modifies language to better distinguish the Board’s policy intent and expectations of County staff for administrative procedures.
3. Changes to reflect best practices and/or recognize Virginia Code requirements.
4. Adding language to clarify the intent of some statements. For example, with the statement “The County will annually seek the GFOA Distinguished Budget Presentation Award,” it is recommended to add “The intent of seeking this is to receive external, independent feedback and demonstrate that the annual budget document reflects best practices” to clarify for the reader why this is done.
5. Changes for clarity, brevity, and readability, such as combining similar statements, reorganizing statements to other sections, and updating terminology and formatting.
BUDGET IMPACT: The County’s Financial Policies provide guidance to the County’s budget development and fiscal management processes.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the revised Financial Management Policies as set forth in Attachment A.
ATTACHMENTS:
A - Recommended Revisions to the County’s Financial Management Policies
B - Allocation of Shared Revenues Analysis