BUDGET SUMMARY BUDGET SUMMARY PAGE 43

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1 BUDGET SUMMARY This section of the budget provides summary information about all funds included in the County s Total Budget. These funds are scheduled to be adopted by the Board on April 18, 2017: General Fund Other Funds (General Government) School Fund Special Revenue Funds (School Division) Capital Projects Funds Debt Service Funds Details for the funds can be found on the following pages: General Fund, pages ; Other Funds, pages ; the School Fund, pages ; the Capital Improvement Program, pages ; and the Debt Service Funds, pages Additional information on the School Fund and School Special Revenue Funds are contained in separate documents published by the School Division. In addition, this section includes the comparative financial information and selected financial trends that add to the overall understanding of the context in which this recommended budget is being brought forward. BUDGET SUMMARY PAGE 43

2 TOTAL COUNTY REVENUES FY 18 RECOMMENDED TOTAL COUNTY BUDGET FY 18 Recommended Revenues $397,362,930 FY 16 FY 17 FY 17 FY 18 FY 18 $ % ACTUAL ADOPTED PROJECTED REQUEST RECOMM REC-ADP REC/ADP Property Taxes $166,474,163 $166,891,683 $172,591,194 $179,106,549 $179,106,549 $12,214, % Other Local Revenue 78,626,459 73,694,183 79,623,300 76,408,217 76,408,217 $2,714, % State Revenue 79,130,095 81,572,867 85,896,199 82,870,139 82,870,139 $1,297, % Federal Revenue 20,737,220 18,363,754 19,689,186 18,925,344 18,925,344 $561, % Use of Fund Balance 0 10,215,265 41,655,568 27,004,002 27,004,002 $16,788, % Borrowed Proceeds 43,278,732 24,758,670 59,256,161 13,048,679 13,048,679 ($11,709,991) -47.3% TOTAL, ALL FUNDS $388,246,668 $375,496,422 $458,711,608 $397,362,930 $397,362,930 $21,866, % BUDGET SUMMARY PAGE 44

3 TOTAL COUNTY EXPENDITURES FY 18 RECOMMENDED TOTAL COUNTY BUDGET FY 18 Recommended Expenditures $397,362,930 Total General Government: 35% Total School Division: 61% FY 16 FY 17 FY 17 FY 18 FY 18 $ % ACTUAL ADOPTED PROJECTED REQUEST RECOMM REC-ADP REC/ADP EXPENDITURES General Govt Operations $76,275,975 $81,794,690 $82,305,052 $89,701,735 $86,734,469 $4,939, % Other Gen Govt Funds 32,252,045 35,021,270 36,131,814 39,108,396 36,395,143 $1,373, % General Govt Debt Service 6,529,825 8,135,299 8,134,798 8,305,140 8,305,140 $169, % Subtotal, Gen Govt 115,057, ,951, ,571, ,115, ,434,752 $6,483, % School Div Operations 161,484, ,623, ,623, ,905, ,374,202 $7,750, % School Special Revenue 15,546,510 17,546,303 17,546,303 17,766,783 17,766,783 $220, % School Debt Service 13,351,576 13,555,134 13,555,134 16,529,363 16,529,363 $2,974, % Subtotal, Schools 190,382, ,724, ,724, ,201, ,670,348 $10,945, % SUBTOTAL - OPERATING $305,439,995 $324,675,951 $326,296,356 $348,316,430 $342,105,100 $17,429, % Capital Projects 33,379,583 35,053,387 81,298,500 39,402,345 39,402,345 $4,348, % Revenue Sharing 16,058,668 15,767,084 15,767,084 15,855,485 15,855,485 $88, % TOTAL - ALL FUNDS $354,878,246 $375,496,422 $423,361,940 $403,574,260 $397,362,930 $21,866, % NOTES: Totals are net of transfers. FY 17 projections for Capital Projects include balances that are expected to be carried forward to complete projects in future years. BUDGET SUMMARY PAGE 45

4 GENERAL FUND REVENUES FY 18 RECOMMENDED GENERAL FUND BUDGET FY 18 Recommended Revenues $274,188,803 FY 16 FY 17 FY 17 FY 18 FY 18 $ % ACTUAL ADOPTED PROJECTED REQUEST RECOMM REC-ADP REC/ADP REVENUES Local Revenue Gen. Property Taxes $166,474,163 $166,891,683 $172,591,194 $179,106,549 $179,106,549 $12,214, % Other Local Taxes 51,533,287 51,867,476 53,029,800 53,920,084 53,920,084 $2,052, % Other Local Revenue 6,571,113 5,793,683 6,231,269 6,377,234 6,377,234 $583, % SUBTOTAL $224,578,563 $224,552,842 $231,852,263 $239,403,867 $239,403,867 $14,851, % State Revenue 23,223,204 23,237,624 23,347,892 23,884,936 23,884,936 $647, % Federal Revenue 6,007,767 5,134,906 6,202,569 5,710,660 5,710,660 $575, % Transfers 3,022,840 3,180,779 3,130,779 3,588,582 3,588,582 $407, % Use of Fund Balance 0 1,316, ,600,758 1,600,758 $284, % SUBTOTAL $32,253,811 $32,869,309 $32,681,240 $34,784,936 $34,784,936 $1,915, % TOTAL GENERAL FUND $256,832,374 $257,422,151 $264,533,503 $274,188,803 $274,188,803 $16,766, % BUDGET SUMMARY PAGE 46

5 GENERAL FUND EXPENDITURES FY 18 RECOMMENDED GENERAL FUND BUDGET FY 18 Recommended Expenditures $274,188,803 FY 16 FY 17 FY 17 FY 18 FY 18 $ % ACTUAL ADOPTED PROJECTED REQUEST RECOMM REC-ADP REC/ADP EXPENDITURES Administration $12,254,474 $13,081,414 $13,157,174 $14,394,650 $14,066,957 $985, % Judicial 4,647,182 4,966,096 4,800,361 5,106,249 4,973,716 $7, % Public Safety 37,667,291 38,111,028 37,888,865 41,068,470 39,814,294 $1,703, % Public Works 4,344,335 4,937,107 5,026,979 5,277,276 5,277,276 $340, % Health & Welfare 20,523,004 22,128,716 22,171,752 23,543,720 22,853,396 $724, % Parks, Recreation & Culture 7,345,383 7,699,997 7,835,017 8,281,605 8,207,005 $507, % Community Development 7,088,590 7,428,621 7,649,171 8,662,686 8,174,746 $746, % SUBTOTAL $93,870,259 $98,352,979 $98,529,319 $106,334,656 $103,367,390 $5,014, % Revenue Sharing $16,058,668 $15,767,084 $15,767,084 $15,855,485 $15,855,485 $88, % Transfer to Schools 114,033, ,892, ,892, ,028, ,028,955 $7,136, % Transfer to Capital/Debt Service 21,217,916 22,255,548 29,205,548 25,546,348 25,546,348 $3,290, % Other Uses of Funds 2,603,571 4,154,027 4,493,211 5,390,625 5,390,625 $1,236, % SUBTOTAL $153,913,657 $159,069,172 $166,358,356 $170,821,413 $170,821,413 $11,752, % TOTAL GENERAL FUND $247,783,915 $257,422,151 $264,887,674 $277,156,069 $274,188,803 $16,766, % BUDGET SUMMARY PAGE 47

6 SCHOOL FUND REVENUES FY 18 RECOMMENDED SCHOOL FUND BUDGET FY 18 Recommended Revenues $180,533,102 FY 16 FY 17 FY 17 FY 18 FY 18 $ % ACTUAL ADOPTED PROJECTED ANTICIPATED RECOMM REC-ADP REC/ADP SCHOOL FUNDS Local - Other $3,032,508 $2,382,010 $2,382,010 $2,330,148 $2,330,148 ($51,862) -2.2% State 45,602,263 48,638,514 48,638,514 49,713,098 49,713,098 $1,074, % Federal 2,978,351 2,992,498 2,992,498 2,998,498 2,998,498 $6, % General Fund Transfer 114,033, ,892, ,892, ,028, ,028,955 $7,136, % Fund Balance 0 1,367,403 1,367,403 1,062,403 1,062,403 ($305,000) -22.3% Transfers 400, , , , ,000 $0 0.0% TOTAL SCHOOL FUNDS $166,046,624 $172,672,938 $172,672,938 $180,533,102 $180,533,102 $7,860, % BUDGET SUMMARY PAGE 48

7 SCHOOL FUND EXPENDITURES FY 18 REQUESTED SCHOOL FUND BUDGET FY 18 Requested Expenditures $181,063,913 FY 16 FY 17 FY 18 $ % ACTUAL ADOPTED REQUEST REQ-ADP REQ/ADP SCHOOL FUNDS Instruction $125,868,585 $131,243,851 $137,529,028 $6,285, % Admin, Attendance, Health 7,338,164 7,796,070 8,237,329 $441, % Technology 2,941,418 3,125,933 3,650,494 $524, % Operation & Maintenance 15,425,156 16,045,655 16,169,109 $123, % Facilities 315, , ,684 $50, % Transportation 9,595,027 9,922,358 10,779,369 $857, % Transfers 3,755,419 4,049,683 4,158,900 $109, % TOTAL SCHOOL FUNDS $165,239,483 $172,672,938 $181,063,913 $8,390, % Anticipated Revenue $180,533,102 Balance of Revenues vs Expenses ($530,811) BUDGET SUMMARY PAGE 49

8 CAPITAL BUDGET REVENUES FY 18 RECOMMENDED CAPITAL IMPROVEMENT BUDGET FY 18 Recommended Revenues $40,460,619 Transfers 4% State Revenue 3% Local Revenue 1% General Fund Transfer 2% Use of Fund Balance 58% Borrowed Proceeds 32% Capital Budget Revenues FY 18 Borrowed Proceeds $13,048,679 General Fund Transfer $832,446 Local Revenue $309,527 State Revenue $1,026,000 Transfers $1,707,843 Use of Fund Balance $23,536,124 Total Capital Budget Revenues $40,460,619 BUDGET SUMMARY PAGE 50

9 CAPITAL BUDGET EXPENDITURES FY 18 RECOMMENDED CAPITAL IMPROVEMENT BUDGET FY 18 Recommended Expenditures $40,460,619 Technology & GIS 1% Community Development 5% Water Resources 3% Courts & Judicial Less than 1% ACE 1% Health and Welfare Less than 1% Other 1% Parks, Recreation, & Culture 4% Public Safety 5% School Division 74% Public Works 6% Capital Budget Expenditures FY 18 ACE $ 250,000 Community Development 1,860,878 Courts & Judicial 28,055 Health and Welfare 140,000 Other 305,857 Parks, Recreation, & Culture 1,728,710 Public Safety 2,093,253 Public Works 2,447,348 School Division 30,091,799 Technology & GIS 329,189 Water Resources 1,185,530 Total Capital Budget Expenditures $ 40,460,619 BUDGET SUMMARY PAGE 51

10 COMPARATIVE REAL PROPERTY TAX RATES Selected Counties (top 20 in population) Population Basic Tax Rate* Loudoun** 374, Prince William** 443, Roanoke 93, Fairfax** 1,129, Stafford 140, Arlington** 234, Fauquier** 67, Chesterfield** 333, Montgomery 98, Henrico** 320, Spotsylvania** 128, Albemarle County 105, Hanover** 104, James City 73, York 69, Rockingham 79, Pittsylvania 63, Frederick 82, Augusta 74, Bedford 77, Charlottesville 48, *Per $100 of assessed value **These localities also levy special service district taxes Sources: Tax Rates: Virginia Local Tax Rates, 2015, 34 th Annual Edition, Weldon Cooper Center for Public Service. Table 2.1 Real Property Statutory (Nominal) Tax Rate, CY 2015 and FY Population: July 1, 2015 Population Estimates for Virginia and its Counties and Cities, Weldon Cooper Center for Public Service, Demographics & Workforce Group, January 27, BUDGET SUMMARY PAGE 52

11 COMPARATIVE EXPENDITURES COMPARATIVE PER CAPITA EXPENDITURES FY 15 General Judicial Public Public Health & Parks, Rec., Community Total Locality Admin. Admin. Safety Works Welfare Education & Culture Development Expenditures Fairfax , ,623,965,163 Prince William , ,478,459,000 Loudoun , ,391,979,757 Chesterfield , ,070,593 Henrico , ,872,161 Arlington , ,102,561,467 Stafford , ,865,949 Spotsylvania , ,131,267 Albemarle* , ,578,501 Hanover , ,948,958 Montgomery , ,796,757 Roanoke , ,808,375 Frederick , ,913,750 Rockingham , ,899,783 Bedford , ,462,673 Augusta , ,406,561 James City , ,551,080 Fauquier , ,726,696 York , ,551,698 Pittsylvania , ,637,582 Charlottesville , , ,526,013 Average (top 20 & Charlottesville) , All Counties , Source: Commonwealth of Virginia, Auditor of Public Accounts. Comparative Report of Local Government Revenues & Expenditures for the Fiscal Year Ended June 30, 2015, * The amount listed in Community Development excludes $ per capita paid to the City of Charlottesville under the revenue sharing agreement. BUDGET SUMMARY PAGE 53

12 CONSUMER PRICE INDEX TRENDS Source: Bureau of Labor Statistics, CPI Detailed Report. Data for December Table 24 The Consumer Price Index (CPI) is a statistical description of price levels, provided by the U.S. Department of Labor, which is used as a measure of inflation, or changes in prices of various goods. The most commonly used index is the Consumer Price Index for Urban Consumers (CPI-U), which is an index of prices of various consumer goods. The County uses the average annual (national) CPI-U to measure inflationary increases from one year to the next. The 2008 inflation rate of 3.9% was the highest rate since The -0.4% change in average annual inflation from 2008 to 2009 is the only negative rate since In 2016, the inflation rate was 1.3%. BUDGET SUMMARY PAGE 54

13 TWO-YEAR FISCAL PLAN The following information is a summary of the Albemarle County Two Year Fiscal Plan, approved by the Board of Supervisors on December 14,2016. For the full FY18 FY19 Two Year Fiscal Plan report, please visit the Albemarle County website at: woyearfiscalplan_approved_final.pdf BACKGROUND During the FY17 Five Year Plan and Annual Budget development and approval process, the Board of Supervisors, staff and the public had significant discussions about finding a balance between a realistic level of revenues going forward into the future and the expenditures which can be supported by that revenue. The Five Year Financial Plan developed in November, 2015, demonstrated that the cumulative impacts of community and Board aspirations, growing citizen expectations, and service obligations created by population growth would outpace available resources into the future unless significant transformation was achieved. In response, the FY17 Budget instituted a priority based budgeting process and ongoing Board work sessions and community engagement to determine Board and community priorities in a constrained environment and to decide how best to achieve a more aspirational future. The FY17 Annual Budget supported existing services as much as possible in the short term while putting building blocks in place to plan for a sustainable future that provides a realistic balance. The Budget initiated the following critical steps: 1. Take organizational transformation to the next level while making strategic investments that reposition us for the future 2. Determine Board and community priorities 3. Develop a realistic, balanced Two Year Fiscal Plan beginning in FY 18 (FY18 19 Fiscal Plan) within the Five Year Plan framework Priority Driven Budget Process With the building blocks put in place by the FY17 Budget, the Board of Supervisors spent several months determining the most urgent community priorities and working through a priority driven budget process to align resources with expenditure needs: April 2016 FY17 Budget adopted including priority driven budget process / balanced Two Year Fiscal Plan May, 2016 Board of Supervisors (BOS) identifies strategic priorities June 2016 BOS ranks most urgent strategic priorities July 2016 BOS reviews detailed breakdown of all County programs and services including expenditures for each (Program and Service Inventory) July August 2016 Staff refines strategic priorities to create action objectives to be achieved in the FY17 19 Strategic Plan, provides public feedback opportunity September 2016 Joint BOS / School Board work session on the Two Year Plan BOS discusses refined action objectives and resource needs BUDGET SUMMARY PAGE 55

14 October 2016 BOS continues work on refined action objectives and resources needs and endorses the resulting FY17 19 Strategic Plan November 2016 Draft balanced Two Year Fiscal Plan which supports the Strategic Plan presented to BOS Resource needs to support the newly endorsed strategic plan priorities drove choices in the Two Year Fiscal Plan. Also, the framework of priority driven budgeting outlined below informed decisions, with the inventory of County programs and services serving as a critical tool in following this framework. Prioritize Services - Evaluate relative importance of individual programs/services Do The Important Things Well - Cut back on the rest Question Past Patterns of Spending - Put all the money on the table Know the True Cost of Doing Business - Focus on full costs of programs Provide Transparency - Base budget decisions on well understood priorities and results TWO YEAR FISCAL PLAN SUMMARY The County s balanced Two Year Fiscal Plan is focused on strategic investment and transformation that reposition the County for a sustainable financial future. Long range financial planning and the adopted FY17 Operating and Capital Budget recognized that the cumulative impacts of community and Board aspirations, growing citizen expectations and service obligations created by population growth outpace available resources unless the long term trajectory was changed through different approaches and choices. The Two Year Fiscal Plan is shaped by priority driven budgeting and a clear focus on strategic priorities that were developed through Board of Supervisors and community dialogue and choices. The plan also reflects the positive impacts of stronger revenues than were projected this time last year and the strategic use of one-time money to advance priorities and avoid creating future obligations. Two Year Fiscal Plan Highlights Strategic Investment and Transformation Stronger than projected revenues Strategic use of new revenue and one-time money Transformation that reduces costs and improves productivity Enhanced use of dedicated revenue for specific services No tax rate increases for operating, CIP tax rate increases delayed Continue to face unmet needs Where we are today Cautious Optimism Based on Strengthened Revenues Our revenue picture is better than projected this time last year for several reasons outlined below. That improvement allows us to make strategic investments that reposition the organization and shift our long term financial trajectory in a more positive direction. Positive change in housing market, both in reassessment values and in new construction Local economy better overall, including sales tax, meals tax and other local sources Fund balance remaining from last year s budget achieved through a combination of savings/expenditure reductions and stronger than anticipated revenues Our Optimism is Tempered by External Realities While we are cautiously optimistic about some of the signs we are seeing in our local economy, that optimism is tempered by a number of factors we are closely watching. Continuing uncertainty/volatility in the national and international economy Concern about possibility of economic slowdown based on historic trends State struggling with its economic outlook Local revenue growth not likely to regain steady, significant upward trend seen prior to the great recession. BUDGET SUMMARY PAGE 56

15 Our Two Year Fiscal Plan Strategies Focus on Three Areas: Funding Strategic Priorities Redevelopment/Revitalization - One time funding to catalyze strategic initiatives - Substantial increase for transportation revenue sharing - Current year one time staffing resources - Service district concept Economic Development Establishes an Economic Development Fund with Three Objectives 1. Match specific state grant opportunities 2. Encourage economic investment in development areas to support neighborhood revitalization 3. Implement Priority Economic Development Initiatives Remedy for Salary Compression - Addresses salary compression across the organization including police Support for other strategic initiatives - Adoption of Two Year Fiscal Plan based on Priority Driven Budgeting - Expansion of the General District Court - School Facilities - Educational opportunities for at-risk four year olds - Increased resources for Family Support Program - Pantops Master Plan/Rivanna River Corridor Transformation Restructuring Ongoing Obligations like health insurance Boosting Productivity/Efficiency Reinventing Business Processes through consolidation, innovation and technology enhancements Quality Organization Supporting Existing Workforce through market adjustment for employee compensation, classification remedy and classification reviews. Building Workforce of the Future by providing one-time departmental workload support and a staffing plan for future position. BUDGET SUMMARY PAGE 57

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