Prince George County, VA 2022-23 Introduced Budget - Presentation to the Prince George County Board of Supervisors March 22, 2022

Prince George County, VA
2022-23 Introduced Budget

Presentation to the Prince George County
Board of Supervisors

March 22, 2022

Prince George County 2022-2023 Budget
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FY2023 Budget Goals
   Lower the real estate tax rate from $0.86 to $0.83.              Will not collect $3,423,828 in
   Lower the personal property tax rate from $4.25 to $3.95.        taxes and fees based on these
                                                                     three reductions
   Eliminate the motor vehicle license fee (decal fee).
   Develop a conservative budget realistically aligned with the current economic markets.
   Maintain current level of service for Prince George citizens and enhance delivery of
    services where feasible.
   Invest resources to address pay compression and provide an attractive and competitive
    compensation plan for all county employees.
   Provide required pay increases for state-supported employees and Constitutional Officers.
   Continue to partner with the Prince George County Public Schools to make investments in
    employee compensation.
   Make strategic decisions and investments using American Rescue Plan Act (ARPA) funds for
    Utility Infrastructure.

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General Fund Revenues

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Prince George County 2022-2023 Budget

General Fund Revenues
   Growth in Real Estate Tax Revenues of $2,774,000, 10.7%
        Growth in assessed values
             Limited Inventory, Lowered Interest Rates, Spike in Home Prices
        1% growth in Real Estate Values attributable to new construction and improvements
        Reduction in Real Estate Tax Rate Proposed - $0.03 reduction [$0.86 to $0.83 per $100 of
         Assessed Value]

   Growth in Personal Property Tax Revenues of $3,453,127, 36.2%
        Growth in assessed values
             Inventory Shortages, Supply Chain Issues, Inflation
        Reduction in Personal Property Tax Rate Proposed - $0.30 reduction [$4.25 to $3.95 per $100
         of Assessed Value]
   Elimination of Motor Vehicle License Fee Proposed [Decal Fee]; ($1,100,000) revenue
    reduction

           Prince George County 2022-2023 Budget
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Real Estate Revenue Changes
                                            MAJOR GENERAL FUND REVENUE CHANGES
                                             Change from     % of Total
            Revenue Type                       FY2022         Change                               Notes
Real Estate Tax Revenue -                                               Growth in Assessed Values, net of $0.03 reduction in Real
Residential                                  $ 1,987,986         30.69% Estate Tax Rate
Real Estate Tax Revenue -                                               Growth in Assessed Values, net of $0.03 reduction in Real
Commercial Industrial                        $   392,860          6.06% Estate Tax Rate
Real Estate Tax Revenue from New
Construction and Improvements                $   264,422          4.08% Revenue Increase due to New Construction and Improvements
Real Estate Tax Revenue - Ag 20 >                                       Growth in Assessed Values, net of $0.03 reduction in Real
100                                          $   100,255          1.55% Estate Tax Rate
Real Estate Tax Revenue - Multi                                         Growth in Assessed Values, net of $0.03 reduction in Real
Family                                       $    91,316          1.41% Estate Tax Rate
                                                                        Growth in Assessed Values, net of $0.03 reduction in Real
Real Estate Tax Revenue - Ag > 100           $    62,161          0.96% Estate Tax Rate
                                                                        Reduction in estimate based on trend and prior year actual
Delinquent Real Estate Tax Revenue           $   (125,000)       -1.93% collections
    Prince George County 2022-2023 Budget
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Personal Property Revenue Changes

Prince George County 2022-2023 Budget
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Other General Fund Revenue Changes
                                            MAJOR GENERAL FUND REVENUE CHANGES
                                             Change from     % of Total
           Revenue Type                        FY2022         Change                                Notes
Local Sales & Use Taxes                      $   500,000          7.72% Assumes State hold harmless if grocery tax is reduced
                                                                        Growth in Assessed Values, New Construction and
Public Service Tax Revenue                   $   436,279          6.73% Improvements, net of $0.03 reduction in Real Estate Tax Rate
Social Services State & Federal
Revenues w/ CSA                              $   356,889          5.51%
Business, Professional &
Occupational Licenses (BPOL)                 $   104,900          1.62%
Compensation Board & HB 599                  $    99,920          1.54% HB 599 (Police) unknown
Permit & Planning Fees                       $    80,800          1.25%
Recovered Costs & Misc Fees                  $    61,000          0.94% Fort Lee, Farmer's Market, DMV Block Fees
Recordation and Wills Tax                    $    50,000          0.77%
EMS In-House Transport Fees                  $    45,000          0.69%
Lodging Tax (General Fund Portion)           $    40,979          0.63%
Recreation Fees                              $    35,000          0.54%
                                                                        Growth in Assessed Values, New Construction and
Mobile Home (Current and Delinquent)         $     32,700         0.50% Improvements, net of $0.03 reduction in Real Estate Tax Rate
Interest Revenue                             $   (100,000)       -1.54% Drop in interest rates
Charges for In-House Repairs                 $   (111,200)       -1.72% Elimination "billing of" garage labor charges
State Communication Tax, Rolling
Stock, Rental Auto Tax, and Mobile
Home Titling Taxes                           $ (115,000)         -1.78%
SAFER Grant Revenues                         $ (174,000)         -2.69% Grant ending (Fire/EMS)

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Motor Vehicle License Fee                    $ (1,100,000)      -16.98% Elimination of Motor Vehicle License Fee
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    Prince George County 2022-2023 Budget

Building Fund Balance

 FundBalance Policy is 12.5% of General Fund
 Expenditures [Projected to be $18.4M]
 Fund   Balance was 31% in FY ‘21 Audit [$33.4M]
 Projection
           for June 30, 2023 is $29,500,000, 20% of
 Introduced FY 2023 budgeted figures

     Prince George County 2022-2023 Budget
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General Fund Expenditures

   Prince George County 2022-2023 Budget
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General Fund Expenditures
New Positions
      Adds one new Police Officer
      Adds one new Information Technology Technician
      Makes a part-time Victim Witness Program Assistant a full-time Victim Witness
       Advocate
      Adds one full-time and one part-time Social Services Benefits Program
       Specialist III, 84.5% state-funded
Employee Reclassifications
      Makes one Assistant Commonwealth’s Attorney a Deputy Commonwealth’s
       Attorney
      Makes a Victim Witness Coordinator II a Victim Witness Coordinator IV
      Makes the Emergency Communications Manager V a Manager VI
      Provides a Career Development increase to one Deputy Commissioner of
       Revenue

       Prince George County 2022-2023 Budget        P-10
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General Fund Expenditures
Included in the FY 2023 budget for compensation is:
   Providing a 5% scale increase for all pay ranges (this does not mean a 5% salary increase
    for all employees) – recently approved state minimum wage increases require the County
    to improve the starting salaries of all ranges to maintain the integrity of our pay scales,
    and offer competitive wages above the statutory minimum
   Placing non-public safety employees on steps in accordance with relevant internal and
    external experience (at 65% year for step) to address pay compression
   Providing public safety employees with a step increase (in addition to a 5% scale
    adjustment)
   Providing Constitutional Officers mandated Compensation Board increases in accordance
    with our increase in population (43,010) and based on a General Assembly required 5%
    increase for state-supported employees – State Mandated
   Providing Comp Board funded positions within the Constitutional Offices the higher of
    their step placement, or a 5% increase on their Comp Board Funded Salary – State
    Mandated
   Providing the higher of a 5% increase or step placement increase for Social Services and
    RCJA employees (state-supported positions) – State Mandated

       Prince George County 2022-2023 Budget
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General Fund Expenditures
Prince George County Public Schools:
   The proposed FY23 County budget provides an additional $1,538,269 to the
    Prince George County Public Schools for their operations fund; this
    represents a 9% increase in the General Fund transfer to schools.
   This funding is provided in accordance with the Revenue Sharing Formula
    used since FY 2007.
   The County is pleased to collaborate with the Schools to provide some
    additional funding for health insurance increases and a pay raise for
    teachers.
   Also included is a General Fund capital transfer of $437,091 to purchase five
    school buses in accordance with their school bus replacement plan.
   For FY23, the County and School division will pursue separate health
    insurance plans to minimize anticipated large increases with the current
    insurance carrier.
       Prince George County 2022-2023 Budget
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Debt Service & Capital Improvement
Debt Service
   There is no increase in Debt Service Contribution from the General Fund in FY 2023.
   There are no proposed new General Fund supported capital projects for completion in FY 2023 that
    will require the issuance of debt.
   Prince George County’s rating with Moody’s is Aa2 and our rating with S&P is AA+.
Capital Improvement
   Prince George County will receive $7,449,621 in American Rescue Plan Act (ARPA) funding that can be
    spent over the next two fiscal years on certain types of capital projects. At least $6 million of this
    funding is proposed for utility infrastructure improvements throughout the County.
   The County will make capital vehicle and school bus purchases using available general fund resources
    instead of borrowing the funds.
   Contributions will be made to the Capital Improvement Fund to fully devote $0.02 of Real Estate Tax
    Revenues for Fire/EMS Apparatus and $0.01 for Fire/EMS Equipment in accordance with County
    Ordinances §74-4 and §74-6.
   The Board can consider use of fund balance for future projects in lieu of borrowing.

           Prince George County 2022-2023 Budget
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Public Utilities
 Enterprise Fund that is self-supporting
 Serves 4,516 customers
    4,139 residential; 377 non-residential
    2,777 water and sewer
    432 water only
    1,307 sewer only
Total Introduced Utilities Budget – FY ‘23 is $17,296,732;
$14,525,530 net of inter-fund transfers
Planned use of $6.2M in Utility Cash Reserves for Capital
projects and Debt payments
Excludes $6M in ARPA funding proposed for Capital Projects
     Prince George County 2022-2023 Budget   P-14
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Public Utilities
   For FY 2023 the water and sewer proposed user charges will increase
    by 30% and 3% respectively. The expected dollar increase resulting
    from these rate adjustments is $732,600.
   These rate adjustments are necessary to cover inflationary increases,
    to purchase needed equipment and supplies, and to maintain existing
    utilities assets.
   Average Residential Impact –Based on the average residential use of 5,000
    gallons/month
       The water bill for a residential customer will increase $7.05/month
       The sewer bill for a residential customer will increase $1.73/month.
       Total combined water and sewer bill for a residential customer will increase
        $8.78/month, or $17.56/billing period.
             Prince George County 2022-2023 Budget
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Public Utilities – Operating Changes
   For FY2023 proposed increases are anticipated for:
       Reflects first year of Debt Service on borrowing for two proposed
        large Capital Projects – Blackwater Regional Interceptor [$10.6M] and
        3 MGD Pump Station & Force Main [$17.7M]; Annual Debt Payment
        estimated at $1.85M P&I
       One additional permanent part-time Utility Worker
       Pay and Benefit increases for existing employees
            5% scale adjustment and step placement
            VRS and Health Insurance increases
       One replacement vehicle
       AMI Meter Program
       Annual Tank Maintenance

               Prince George County 2022-2023 Budget   P-16
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Public Utilities - Capital Expansion Projects
There are five major capital projects currently under development to
improve capacity and conveyance within the County. They are:
 New Water Line under Appomattox River connecting to Appomattox
  Regional Water Authority System [$2M Cash Reserves]
 New Tank and Booster Station in the Temple Avenue area [$3.5M ARPA
  Funding]
 New Tank and Booster Station in the Route 156 area near Hopewell
  [$3.5M - $2.5M ARPA Funding & $1M Cash Reserves]
 New Sewer Line from Southpoint Business Park heading towards the
  South Central Waste Water Treatment facility via a City of Petersburg
  connection [$2M – Cash Reserves]
 Water Line Expansion to Route 10 [$3.2M Federally-Funded project
  Congressman McEachin; $1M local match using Utility cash reserves]

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Special Revenue Funds
                                                                                                                   FY2022      FY2023
Fund Description                        Source                                     Use                             Budget      Budget      Change
                                                           Salaries & Benefits for 3 FT employees; debt
     Economic
                                       Meals Tax           service for Crosspointe Centre improvements;            1,215,911   1,400,000    184,089
    Development
                                                           Contributions to JTCC and RBC
                                                           7.5% Contribution to Regional Heritage Center;
      Tourism                        Lodging Tax                                                                    540,411     642,857     102,446
                                                           PART, HPG Chamber & FOLAR
                                                           Pretrial & Probation Services for offenders and
    Community             State Grant Funding + Local      defendants; serves PG, Hopewell and Surry;
                                                                                                                   1,060,619   1,120,166     59,547
    Corrections           Support from served localities   Elimination of 1 vacant Pretrial Officer position for
                                                           FY2023
                           General Fund Contribution
      LOSAP                ($141,000) and Investment       Annuity Program for Volunteers                           181,500     181,500         -
                                     Earnings
                          Stormwater Fees (established
    Stormwater                                             Capital Projects - borrowing every 5 years               490,000     490,000         -
                                    3/25/2014)
                         State / Federal Funding + Local   Adult Education Programs [Fiscal Agent only; no
 Adult Education                                                                                                    990,115     974,715     (15,400)
                          Support from served localities   overall impact on County's budget]

     FY2023 Budgets reflect pay increases and benefit increases [5% scale adjustment and step
      placement for non-public safety employees, VRS and Health Insurance increases]

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FY2023 Budget Totals
 $160,135,263 Overall Budget* ($25,744,800; 19.2%
  Increase)
  Significant Changes by Fund
    School Funds - $13,521,166 (17.4%)* - represents 52.5% of
     change in total budget
    Utility Funds - $8,420,382 (94.86%)* - represents 30% of change
     in total budget
    General Fund - $3,789,451 (10.32%)* - represents 14.7% of
     change in total budget
       Gross General Fund Change $6,478,675 (10.35%)
 $69,069,370 General Fund ($6,478,675; 10.35%
  Increase) – Gross Change (with transfers)
                                             *Net of Inter-Fund Transfers
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     Prince George County 2022-2023 Budget

Budget Schedule – Work Sessions & Key Dates

 Tuesday, March 29th – 5:00pm – Work Session
 Tuesday, April 26th – Public Hearing and Adoption of
  Tax Rates and Utility Rates
 Tuesday, April 26th– Public Hearing on Budget
 Tuesday, May 3rd– 5:00pm – Work Session
 Tuesday, May 10th – Budget Adoption

  Prince George County 2022-2023 Budget
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Questions?

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Prince George County 2022-2023 Budget
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