York County Administrator James McReynolds released his proposed budget for the upcoming fiscal year Tuesday, asking the Board of Supervisors for a 3 percent pay increase for all county employees while maintaining current tax rates.
The proposed $132.5 million budget includes an increase of $880,000 in funding for the York County School Division, a figure that falls about $2 million short of the number requested by YCSD Superintendent Eric Williams. McReynolds’ recommended contributions to YCSD — the largest expense in the county’s budget — add up to a 1.8 percent increase in the county’s transfer compared with last year, a percentage that matches the 1.8 percent increase in spending he is requesting for the county’s operations.
“We’re treating the school division as we do the rest of the county,” McReynolds said Tuesday.
Williams is seeking an additional $7.5 million in spending, of which he can cover $4.6 million with existing funds. His proposed funding increase would be used for a $2.9 million compensation increase for YCSD employees, $1.9 million for Virginia Retirement System costs and about $2.5 million for staffing, instruction, technology and other operational spending.
Unlike the county’s last two budgets, the proposed budget for the upcoming fiscal year — which runs from July 1 through June 2015 — does not ask for the supervisors to approve an increase in the real estate tax rate. McReynolds said the increased spending in the budget can be funded by projected increases in tax revenues.
McReynolds presented the budget to the supervisors at their Tuesday meeting. During the presentation, Supervisor Thomas Shepperd asked about what it would take to fund the full increase Williams requested. McReynolds said a tax rate increase would be necessary to bridge the $2 million gulf.
Following McReynolds’ presentation, Chairman Donald Wiggins spoke briefly about the county’s budgeting in recent years.
“I heard someone the other day say, ‘We need to take over the York County government because it’s grown too large,’” Wiggins said. “But there’s nothing further from the truth than that.”
Wiggins said the county has not replaced many retirees or given pay raises — other than a 2 percent raise last year — in the last five years.
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York County Budget Dates
The following work session and meetings will take place at York Hall and are open to the public:
April 1 work session at 6 p.m.
April 8 work session at 6 p.m.
April 22 work session at 6 p.m.
April 24 public hearing on proposed budget at 7 p.m.
April 29 work session at 6 p.m.
May 1 work session at 6 p.m.
May 6 scheduled adoption of budget at 6 p.m.
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“We can’t get any more lean than what we are now,” he said.
A tax rate increase would likely take the form of increased real estate tax rates, which are the primary generator of revenue for the county. The proposed budget anticipates $82 million of the $132.5 million budget will be generated from property taxes, including the real estate rate, which is currently set at 75.15 cents per $100 of assessed value.
Were the supervisors to fund the full request from Williams through the real estate tax rate, they would need to raise the rate by about 2.5 cents per $100 of assessed value. That would translate to an increased tax burden of about $62.50 for a property assessed to be worth $250,000.
Almost $2 million of the $2.4 million of additional spending called for by McReynolds would fund the 3 percent pay increase and the additional $880,000 for YCSD. The remainder of the money would be used to compensate for price increases facing the county and for contributions to capital projects, such as the expansion of the county’s sewer system and the replacement of fire trucks nearing the end of their operational lives.
In addition to the proposed $50.9 million contribution to YCSD for operations, the proposed budget includes an additional $7.85 million for YCSD’s capital improvements program. That contribution maintains the current fiscal year’s spending levels on infrastructure work in York County schools. McReynolds presented details from his proposed capital improvements program earlier in the month, telling the supervisors his proposed plan will not require the issuance of any new debt.
McReynolds said if the supervisors accepted his proposed budget, they would be signing off on a document that allocated $5.87 million more in funding to YCSD than it did in 2009, while allocated $2.97 million less to everything else.
McReynolds told the board his proposed budget included savings realized from the implementation of the “Managing Performance for a Lean Government” program in 2013. He said county staff was asked for suggestions on how to be more efficient, and the county’s administration has since implemented suggested changes that include the elimination of paper in some operations and a change in the use of overtime hours, which have saved “tens of thousands of dollars,” he said.
He told the board the county’s real estate tax rate continues to be one of the lowest in the area, with only Williamsburg and Isle of Wight and Gloucester counties maintaining a lesser rate. He also noted the county spends less per capita than any other municipality in the area when not factoring for schools and roads.
Citizens are encouraged to offer their thoughts on the proposed budget by emailing [email protected], calling 890-3220 or attending the public hearing on the proposed budget, which is scheduled for 7 p.m. April 24 at York Hall.
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