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04-07-2011 Special MeetingSPECIAL MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD THE SEVENTH DAY OF APRIL IN THE YEAR TWO THOUSAND AND ELEVEN PRESENT: Thomas J. Wright, III, Chairman Stan D. Clark, Vice - Chairman Al Casteen JoAnn W. Hall Kenneth M. Bunch Also Attending: A. Paul Burton, Interim County Attorney W. Douglas Caskey, County Administrator Donald T. Robertson, Director of Information Services and Legislative Affairs Michael W. Terry, Director of Budget and Finance Carey Mills Storm, Clerk Chairman Wright called the special meeting to order at 2:30 p.m. for the purpose of conducting a budget work session. Letters calling the meeting were hand delivered to the respective Board members. /1 Michael W. Terry, Director of Budget and Finance, advised that the County is financially sound and its fiscal practices over the last several years have enabled the County to weather a difficult economic downturn; however, further fiscal efforts are needed in order to position the County going forward. He advised the Board that the County's unaudited Fund Balance is in the amount of $19,000,000 and the County's fiscal policy of setting aside 10% has been maintained. He advised in addition to growth, economic development opportunities are aggressively being sought. He advised that the County is in need of a long -term strategic fiscal plan to address how reserve dollars can be utilized properly. He advised that some changes need to be made in the County's business practices and the County needs to position itself so that local competitors in other counties do not attract business out of the County. Mr. Terry addressed the Board regarding Governmental Accounting Standards Board Statement Number 54 (GASB). He stated he would be returning to the Board with a request for resource support services in order to get the standards implemented. Mr. Terry advised that it is not best management practices for the County to include grant funds as part of its Operating Budget and the practice of using the Fund Balance to balance the County's budget is also not a best practice. He recommended that the Board determine what is needed in the 1 various County departments to deliver the same level of service so that staff will not have to return to the Board with a request for funds to meet their basic requirements. He advised that the Undesignated Fund Balance should only be used in special circumstances or for emergencies as determined by the Board. Mr. Terry recommended that the County practice diversification and attract multiple types of businesses versus becoming financially dependent upon just one (1) business entity so that in the future, the County will not find itself in the position of having to address a shortfall. He advised that the implementation of a five (5) year fiscal reserve plan is a best practice. Mr. Terry advised that the County has operating expenses in the amount of $93,000,000 with a revenue stream of $85,000,000, which leaves a revenue gap of $8,000,000. He advised that he would be returning to the Board with a five (5) year Countywide Strategic Plan to be utilized as a roadmap for moving forward. He requested that the Board be mindful of the elderly and handicapped if implementing a tax increase and be cognizant of the effect on County farmers so as to ensure that no one is intentionally injured in this process. He advised an analysis was conducted utilizing the existing tax rate and a proposed tax rate, which would result in a balanced budget resulting in a net change of $48 monthly. He advised that an additional budget work session will be conducted on April 21, 2011. Chairman Wright requested that Mr. Robertson coordinate with PrimeMedia to film the April 21, 2011 budget work session. /1 At 3:40 p.m., Chairman Wright adjourned the work session. Carey Mills Storm, Clerk right, homas J. I, Chairman