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.
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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
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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.
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At 3:40 p.m., Chairman Wright adjourned the work session.
Carey Mills Storm, Clerk
right,
homas J.
I, Chairman