Board of Supervisors

Proposed Budget
Fiscal Year 2023
Garrey W. Curry, Jr.
April 18, 2022
Agenda
• Budget Adoption Process
• Major Budget Inputs
• Proposed Budget Highlights
• Overall Budget – Balanced Fund Perspective
• General Fund
• School Fund
• Library Fund
• Fire Services Fund
• Debt Service Fund
• Capital Improvements Fund
• Final Thoughts

2
Budget Adoption Process
• Department and Agency requests submitted to County
Administrator (January)
• Outside organization requests submitted to County
Administrator (early February)
• Coordination with RCPS team
• County Administrator proposed budget (COV §15.2-1541)
• Review and consideration by Board during work sessions
• Development of Board proposed budget
• Public hearing on Board proposed budget (COV § 15.2-
2506) and tax rates (COV § 58.1-3007)
• Final adoption of FY2023 budget (April/May)
3
Major Budget Inputs
• Strong growth in sales tax and meals and lodging tax
revenue
• Health insurance premium increase (~8.5%)
• Reduced VRS Rate (13.67% down to 12.46%)
• 5% Cost of Living Allowance (COLA) included in state
senate budget (county and schools)
• Real estate reassessment is complete
• Reassessment expenditures not required this year
• Equalized tax rate required
• Personal property assessment values have skyrocketed
• Expanded need for recurring and one-time contribution for
capital needs
4
Bottom Line Up Front
• Funds 5% COLA for all county staff as partially supported by the state
budget (house and senate budgets do not align yet)
• Funds $150,000 in BOS Contingency to move the stalled
classification/ compensation study forward in a way that provides clear
career ladders in constitutional offices (replacing longevity incentive
program)
• Funds RCPS school board proposed budget that includes 5% salary
increase that is partially supported by the state budget
• Real Estate and Personal Property tax rate decreases
• Holds 2% of the Transient Occupancy Tax (lodging) aside for tourism
• Boosts paid EMS provider budget to allow an average pay rate of
$30/hr.
• Funds 100% operational budget of seven fire and rescue companies
and Volunteer Fire and Rescue Association plus provides $60,000 in
capital assistance (apparatus replacement)
• Rebuilds fund balance of the Fire Service Fund for future needs

5
 Overall Balanced Budget
FY 2023 Balanced Budget Summary by Fund
FY22 Orig. Budget FY23 BOS Proposed
Fund Budgets FY22 Rev FY22 Exp FY23 Rev FY23 Exp Balance
100 - General Fund $19,678,818 $19,678,818 $20,983,934 $20,983,934 $0
101 - ARPA Fund $0 $0 $1,431,536 $1,431,536 $0
201 - Social Services Fund $1,751,978 $1,751,978 $1,859,876 $1,859,876 $0
204 - Children's Services Fund $1,300,000 $1,300,000 $1,300,000 $1,300,000 $0
205 - Sheriff Asset Forfeiture Fund $10,000 $10,000 $10,000 $10,000 $0
206 - Com. Attorney Asset Forfeiture Fund $8,000 $8,000 $8,000 $8,000 $0
207 - School Fund $13,589,586 $13,589,586 $15,455,414 $15,455,414 $0
208 - School Cafeteria Fund $428,923 $428,923 $503,046 $503,046 $0
209 - Library Fund $409,473 $409,473 $455,009 $455,009 $0
210 - Law Library Fund $750 $750 $750 $750 $0
212 - Fire Services Fund $1,093,800 $1,093,800 $1,340,000 $1,340,000 $0
213 - EMS Cost Recovery Fund $150,000 $150,000 $150,000 $150,000 $0
302 - Capital Fund $1,085,940 $1,085,940 $1,720,000 $1,720,000 $0
400 - Debt Service Fund $369,226 $369,226 $207,275 $207,275 $0
Total $39,876,494 $39,876,494 $45,424,840 $45,424,840 $0
Total (Net Transfers) $27,913,674 $32,902,307

6
 Overall Budget, cont.
FY2023 Proposed Budget By Fund

206 - Com. Attorney 205 - Sheriff Asset

Asset Forfeiture Fund Forfeiture Fund
204 - Children's 212 - Fire 0.02% 0.02%
Services Fund Services Fund
2.9% 2.9%

302 - Capital
207 - School Fund Fund
208 - School Cafeteria Fund
3.8%
201 - Social 34.0% 1.1%
Services Fund
4.1%

Other
2.9% 209 - Library Fund
1.0%
210 - Law Library
101 - ARPA Fund 0.002%
Fund
3.2% 100 - General Fund
46.2% 213 - EMS Cost Recovery Fund
0.3%

400 - Debt Service Fund

0.5%

7
 Overall Budget, cont.
FY 2023 Balanced Budget Summary by Fund, Year over Year,
Net of Transfers
Fund Budgets FY21 Orig. FY22 Orig. FY23 Prop. Difference
100 - General Fund $7,705,323 $7,978,689 $8,759,092 $780,403
101 - ARPA Fund $0 $1,431,536 $1,431,536
201 - Social Services Fund $1,706,371 $1,751,978 $1,859,876 $107,898
204 - Children's Services Fund $1,300,000 $1,300,000 $1,300,000 $0
205 - Sheriff Asset Forfeiture Fund $0 $10,000 $10,000 $0
206 - Com. Attorney Asset Forfeiture Fund $8,000 $8,000 $8,000 $0
207 - School Fund $12,732,535 $13,376,895 $15,157,723 $1,780,828
208 - School Cafeteria Fund $412,797 $428,923 $503,046 $74,123
209 - Library Fund $414,561 $409,473 $455,009 $45,536
210 - Law Library Fund $750 $750 $750 $0
212 - Fire Services Fund $1,117,541 $1,093,800 $1,340,000 $246,200
213 - EMS Cost Recovery Fund $125,000 $150,000 $150,000 $0
302 - Capital Fund $698,836 $1,085,940 $1,720,000 $634,060
400 - Debt Service Fund $379,677 $369,226 $207,275 -$161,951
Total $26,601,391 $27,963,674 $32,902,307 $4,938,633

8
 Overall Budget, cont.
FY2023 Proposed Budget by Fund Net of Transfers
206 - Com. Attorney Asset 205 - Sheriff Asset Forfeiture
Forfeiture Fund Fund
212 - Fire Services Fund
0.02% 0.03%
4.1%

302 - Capital Fund

5.2%
207 - School Fund 208 - School Cafeteria Fund
46.1% 1.5%

Other
4.1% 209 - Library Fund
1.4%
210 - Law Library
Fund
0.002%

100 - General Fund 213 - EMS Cost Recovery Fund

26.6% 0.5%

400 - Debt Service Fund

204 - Children's 0.6%
Services Fund
4.0%

201 - Social Services

Fund 101 - ARPA Fund
5.7% 4.4%

9
 Overall Budget, cont.
FY2023 Proposed Budget by Fund Net of Transfers
$36,000,000
$34,000,000
$32,000,000 $1,720,000 400 - Debt Service Fund
$30,000,000 $1,340,000
302 - Capital Fund
$28,000,000
$1,085,940 213 - EMS Cost Recovery Fund
$26,000,000 $698,836 $1,093,800
$1,117,541
$24,000,000 212 - Fire Services Fund
$22,000,000 210 - Law Library Fund
$15,157,723
$20,000,000
209 - Library Fund
$18,000,000 $13,376,895
$12,732,535 208 - School Cafeteria Fund
$16,000,000
$14,000,000 207 - School Fund
$1,300,000
$12,000,000 206 - Com. Attorney Asset Forfeiture Fund
$1,859,876
$10,000,000 $1,300,000 $1,300,000
$1,431,536 205 - Sheriff Asset Forfeiture Fund
$1,706,371 $1,751,978
$8,000,000
204 - Children's Services Fund
$6,000,000
$8,759,092 201 - Social Services Fund
$4,000,000 $7,705,323 $7,978,689
$2,000,000 101 - ARPA Fund

$0 100 - General Fund

FY21 Orig. FY22 Orig. FY23 Prop.

10
 0%
100%

10%
40%
70%

20%
30%
50%
60%
80%
90%
$430,237 $1,429,639

$133,331 $181,000

$154,955 $200,000

$670,740 $629,260

$8,918,894 $6,536,520
Overall Budget, cont.

$1,567,563 $712,000
Local / Non-Local Cost Share

$216,729 $98,000

$205,110 $63,000
Local Revenue

$278,792 $85,000

Includes Library Investment Fund Contribution $389,996 $65,013

11
Non-Local Revenue
 General Fund Revenue Detail
• Natural revenue growth continues from sales tax and meals and lodging
tax. FY2023 budget forecast: Sales tax = $962K, M+L tax = $415K
• Real estate tax and personal property tax rates adjusted downward
(details follow)
• Each revenue line analyzed against past actuals
• State compensation board revenue is based on FY22 with projected
raise (awaiting SCB updates and final state budget)
Budget Line Revenue Approp. Class FY22, Orig. FY23 Prop. Difference
General Property $13,446,700 $13,655,700 $209,000
Other Local (sales, meals & lodging, etc.) $1,715,000 $2,170,000 $455,000
Permits, Privilege & Reg. Licenses $150,800 $171,800 $21,000
Fines & Forfeitures $105,000 $115,000 $10,000
Use of Money and Property $38,400 $11,900 -$26,500
Charges for Svcs. and Miscellaneous $89,800 $113,300 $23,500
Recovered Costs $195,000 $198,000 $3,000
State and Federal $3,056,090 $2,818,249 -$237,841
Transfers In $50,000 $0 -$50,000
General Fund Balance $832,028 $1,729,985 $897,957
Total $19,678,818 $20,983,934 $1,305,116
12
 General Fund Revenue Detail, cont.
Sales Tax and Meals & Lodging Tax Revenue by Fiscal Year
$1,600,000

$1,400,000

$1,101,548

$1,200,000
$1,058,452

$1,000,000 $987,764
$902,105
$1,015,866

$800,000

$600,000 $497,809

$460,934
$400,000 $369,471
$470,153

$200,000

$0
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027
Sales Tax Meals & Lodging 2% Inc. 5% Inc. 8% Inc.
2022 data is based on last 12 mo. (Mar. 2022)

13
General Fund Revenue Detail, cont.
• Real estate tax:
• Reassessed parcel and improvement values were prepared and
finalized by December 31, 2021
• A reassessment “rebalances” the tax burden across all real property
owners relative to their proportionate real property value
• During a reassessment year COV § 58.1-3321 restricts real estate
tax revenue to 101% of prior year levy without extensive public
hearing requirements (not including increase from new construction
and does not apply to special levies)
• The CY21 real estate tax rate was set at $0.67/$100 assessed value
• The CY22 equalized real estate tax rate is $0.56/$100 assessed
value. This is the rate that would generate no more than 101% of the
revenue collected in the prior year
• Using the newly reassessed property values, one penny of real estate
tax now generates approximately $193K
• The proposed budget is balanced using a real estate tax rate of
$0.55/$100, which is a one penny tax cut below the equalized rate

14
General Fund Revenue Detail, cont.
• Personal property tax:
• Economic conditions have led to a surge in the value of used
vehicles
• CY22 personal property assessed value provided by the COR is
$101M as compared to $76M for CY21
• FY22 budget under forecasted personal property tax revenue using
the CY21 tax rate of $4.25/$100 (due to reliance on preliminary
assessed values)
• The proposed budget is based on a personal property tax rate of
$3.25/$100
• FY23 proposed budget forecasts a modest revenue increase over
expected actual FY22 revenue by applying an equalized tax rate
• Expected FY22 revenue is $2,223,000
• Budgeted FY23 revenue is $2,340,000
• This tax rate will have to rebound to maintain current revenue levels
in future years when used car values return to reasonable levels

15
General Fund Revenue Detail, cont.
FY23 General Fund Budgeted Revenue by Appropriation Class

Other Local (sales,

meals & lodging,
State and
etc.)
Federal
10.3%
13.4%

General Fund
Recovered Costs
Balance Charges for Svcs. and 0.9%
8.2% Miscellaneous
0.5%
Other
2.9% Use of Money
and Property
0.1% Fines &
Permits, Privilege &
Forfeitures
0.5%
Reg. Licenses
General Property 0.8%
65.1%

16
General Fund Revenue Detail, cont.
General Fund Revenue Composition
100%
3.24% 3.44% 4.23%
8.24% General Fund Balance

90% 14.94%
16.34% 15.53% Transfers In
13.43%
80% State and Federal

7.79% 7.38% 8.71%

70% 10.34% Recovered Costs

13.38% 13.89%
60% 13.49% Charges for Svcs. and
14.32% Misc.

Use of Money and

50% Property

Fines & Forfeitures

40%
Permits, Privilege & Reg.
Licenses
30%
56.35% 56.44% 54.85% Other Local (sales, meals
50.75%
& lodg, etc.)
20%
General Property (net
Real Estate)
10% Real Estate Tax

0%
FY20, Orig. FY21, Orig. FY22, Orig. FY23 Prop.

17
General Fund Expenditure Detail
• Detailed budget sheets show “Requested” and “Proposed” budgeted
amounts for every expenditure line item. Budget holders continue to shift
their thought process
• Public Safety shows a significant increase:
• Many staff add up to a large raise & health insurance total for the function
• Assurance that all new dispatch equipment is covered by maintenance service contracts
• Increased PT EMS pay rate
• Annual radio system maintenance contract (first year out of warranty)
• Transfer increase due to School Fund increase (raise), Library (raise + new
PT position), and Capital Fund increase
General Fund Expense by Function FY21 Orig. FY22 Orig. FY23 Prop. Difference
1 - General Government Administration $2,281,306 $1,926,644 $2,086,041 $159,397
2 - Judicial Administration $710,680 $751,247 $842,429 $91,182
3 - Public Safety $3,000,971 $3,549,196 $3,916,498 $367,302
4 - Public Works $986,406 $954,610 $993,094 $38,484
5 - Health & Welfare $230,847 $257,331 $296,729 $39,398
6 - Education $7,405 $7,638 $7,774 $136
7 - Parks, Recreation & Cultural $24,000 $25,000 $27,000 $2,000
8 - Community Development $463,708 $507,023 $589,527 $82,504
Transfers to Other Funds $11,056,693 $11,700,129 $12,224,842 $524,713
Total $18,762,016 $19,678,818 $20,983,934 $1,305,116

18
 General Fund Exp. Detail, cont.
General Fund Budgeted Expenditure Comparison by Function
(Net of Transfers)
$9,000,000
$589,527
$8,000,000 $296,729
$507,023
$463,708
8 - Community Development
$257,331 $993,094
$7,000,000 $230,847
$954,610 7 - Parks, Recreation & Cultural
$986,406 FY22, $24,000
$6,000,000 FY23, $27,000
6 - Education
FY22, $7,638
$5,000,000 FY23, $7,734
$3,916,498
$3,000,971 5 - Health & Welfare
$3,549,196
$4,000,000
4 - Public Works

$3,000,000
$710,680 $842,429 3 - Public Safety
$751,247
$2,000,000
2 - Judicial Administration
$1,000,000 $2,281,306 $2,086,041
$1,926,644
1 - General Government Administration
$0
FY21 Orig. FY22 Orig. FY23 Prop.

19
General Fund – Human Resources
• The House budget includes a 4% COLA plus a 1% bonus and the senate
budget includes a 5% COLA for state responsible employees
(constitutional offices and social services)
• 5% raise for all staff requires approximately $275K (less than half provided by state) and
is included in the budget within each department
• VRS rate for FY2023 & 2024 dropped from 13.67% to 12.46% a savings
of just under $50K
• Health insurance rates increased by 8.5% and the increase is shared
between the county and employees using the same method used over the
last several years. The Board endorsed this option on March 7. County
share requires a $65K increase
• $150K of recurring funding budgeted to implement the stalled Baker Tilly
Classification and Compensation Study updated to incorporate career
ladders for each constitutional office
• Study timing prior to pandemic requires it to be updated prior to
implementation
• Parallel implementation with updated personnel policy that was prepared in
draft format prior to the pandemic
• Funding placed in BOS Contingency
• Suggest redirecting FY2022 funding ($115K) for same purpose for one time
bonus for staff who have not received a bonus this fiscal year
20
School Fund
• Proposed General Fund transfer to the School Fund is $8,918,894,
fully funding the superintendent proposed budget ($72,930 inc.)
• School Board’s proposed budget based on an ADM of 765 and
anticipated state funding based on anticipated state action
• RCPS proposed budget includes a 5% COLA
• State provides approximately 17% of the revenue needed for the salary increase
• Not a mandate, but increased revenue from the state is only available if it is used
for the specified raise (same for county employees)
• Dedicated state funding fully supports RCPS capital needs
• $150K “reservation” on the General Fund Balance for VPSA 2011
Series B bond ended in FY22 and is no longer in place

21
Library Fund $500,000
Library Revenue Sources

• Library funded by: $450,000

$277,696
• Local Funds (sales, fines, & other) $400,000
• General Fund
$350,000
• State funds
• Transfer from library investment pool $300,000

(principal for one time uses) $250,000

• $100,000 from library investments $200,000

to support expansion and
$100,000
renovation design services in FY23 $150,000

$100,000
• General Fund transfer increasing
this year by $35,535 $50,000 $65,013

• Includes requested new part time $0

employee 20hrs/wk. at $15/hr. $12,300
• Library investments are not used to General Fund Transfer
support operational expenses Library Investment Pool
State Revenue
Local Revenue (Sales, Fines, and Other)

22
Fire Services Fund
• Total projected revenue is $1,340,000
• $0.06/$100 Real Estate Tax Rate (no change)
• $0.20/$100 Personal Property Tax Rate (no change)
• No use of Fire Service Fund, fund balance
• Fire & Rescue/EMS Services Agreement states:
“When considering budget requests to fund the Companies, the County aspires, within the
limits of its prudent budgetary priorities and constraints, to provide funding for the
Companies that will cover one hundred percent of operational expenses.”
• 100% operational expense supported by the Fire Levy Board
• $727,585 for the seven VFR Companies
• $212,416 budgeted in FSF Insurance budget line (county provided)
• $0 for the Volunteer Fire and Rescue Association (VFRA requested no funding in
excess of insurance due to lower than expected spending in past years)
• $117,000 to continue CGVFD EMS program providing 24x7 coverage of one BLS
provider and one ALS provider. Adjusted to be shared 60% Warren County and
40% Rappahannock County based on call volume. Includes workers compensation
insurance costs.
• “Apparatus Replacement” funded at $60,000
• $212,999 set aside as Fire Service Fund contingency to replenish the fund balance
or be used for other fire and rescue needs as determined by the Board

23
Debt Service Fund
• Debt Service Fund created to align with auditor action and clearly track
expenditure for bond payments
• One remaining bond issue outstanding:
• VPSA 1998 Series B last payment in FY2019
• VPSA 2011 Series B last payment in FY2022
• VPSA 2004 last payment due FY2025
• Remaining bond payments:
• FY2023 = $207,300
• FY2024 = $198,765
• FY2025 = $191,555
• FY2026 = $0
• VPSA 2011 Series B payoff did not free up recurring revenue because
it was backed up by a fund balance reservation

24
Capital Fund
• Capital Fund helps improve year to year operational expenditure
comparison (reduces the ups and downs). First year (FY23) of five year
plan is incorporated within the operating budget to be adopted by the
Board. Remaining years are for planning purposes only and are fluid.
• PayGo budget proposed at $150K backed by recurring revenue
• County space needs building design/study shown at $300K per year for
the next two years backed by general fund balance. Presumably leading to
a debt service funded project
• Historic building envelope repair budgeted at $1,000,000 per recent
discussions between the Board and Building Committee
• Garage/Processing building adjacent to Sheriff’s Office proposed to be
shared by Sheriff and Emergency Services ($150K preliminary budget)
• Overall public safety radio coverage provided by the new L3Harris 800
MHz system is much improved. Retain an item for out year funding to
consider adding new transmit/receive sites in the county to improve in-
building coverage
• The VHF simulcast F&R paging system operation has now been corrected
improving service. Continue to analyze the benefit of adding an additional
VHF site in the northern part of the county. Best to align project timing with
backhaul availability of the pending fiber project if possible
• Detailed budget …

25
 Capital Fund Detail
Responsible FY 22 / 23
Project/Use Department FY 2022 $ Source FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Beyond
COUNTY PROJECTS
Space Needs Building Design/Study County Administrator $300,000 GFB $300,000 $300,000 Building w/ Debt Service?
Building Envelope Repair County Administrator GFB $1,000,000 ??
Reassessment Contractor County Administrator $105,000 PayGo $100,000 $100,000
Internal GIS Start Up Costs (inc. parcels and zoning) County Administrator $35,000 PayGo $35,000
County Vehicles County Administrator $25,000 PayGo $50,000
Leachate Collection Upgrades (Amissivlle Landfill) County Administrator GFB $50,000
Garage and Processing Building Sheriff / Emg. Svcs. GFB $150,000
Sheriff Radio Upgrades Sheriff's Office GFB/PayGo $50,000
EMS Capital (vehicles and equipment) Emergency Services $150,000 TBD $20,000 $52,000 $52,000
NG-911 Upgrade (Local portion of $744,077 project) 911 Coordinator $260,000 Grant/GFB
Sheriff Vehicles (two per year) Sheriff's Office $70,000 PayGo $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Capital Projects, PAYGo Holding BOS PayGo $45,000
RCHS Shelter Generator Project County Administrator $245,940 Grant/GFB
Radio System Implementation - VHF Paging 1-site Emergency Services GFB pending more study
Radio System Implementation - 800MHz 2-sites Emergency Services ~$670,000
COUNTY TOTAL $1,190,940 $1,720,000 $1,092,000 $70,000 $70,000 $222,000 $220,000
Dedicated Grant Funds $367,402 $0
Net Local Cost $823,538 $1,720,000 $1,092,000 $70,000 $70,000 $222,000 $220,000
SCHOOL PROJECTS
All school CIP is funded within the School Fund using State Revenue

SCHOOL TOTAL $0 $0 $0 $0 $0 $0 $0
Dedicated Grant Funds $0 $0 $0 $0 $0 $0 $0
Net Local Cost $0 $0 $0 $0 $0 $0 $0

TOTAL $1,190,940 $1,720,000 $1,092,000 $70,000 $70,000 $222,000 $220,000

SCHEDULED DEBT SERVICE PAYMENTS $379,677 $207,300 $198,765 $191,555 $0 $0 $0
TOTAL FIVE YEAR PERIOD EXPEND = $3,174,000
FY 2023 BUDGETED EXPENDITURES
TOTAL PayGo $150,000
TOTAL General Fund Balance (GFB) $1,570,000
TOTAL Grant $0
TOTAL Capital Fund Balance (CFB) $0

26
 Final Thoughts
• Detailed budget sheets provided for analysis
• Next step – Open separate public hearings on the proposed
budget and tax rates – Tonight
• Monitor state budget progress and local impact
• Final adoption of the FY2023 budget and adoption of tax
rates (at least seven days after public hearing):
• April 25 – budget meeting
• May 2 – regular BOS meeting, opportunity for adoption
• May 9 & 11 – budget meetings (school budget must be adopted
before May 15)
• Budget meetings that are not needed can be canceled

27