PROPOSED FY2019 BUDGET

Thomas C. Foley
County Administrator
March 6, 2018
 2017 Accomplishments
AAA bond rating (Fitch, S&P)

Five-Year Financial Outlook

Jeff Rouse Swim and Sport Center

profit-sharing

Armed Services Memorial

Employee climate survey

Comprehensive online permit portal

Animal Shelter

Schools shared-services

Joint Capital Improvement program process

Proposed FY2019 Budget Presentation — March 6, 2018 2

 County Profile
$97,484 144,584
Population
Median Income
8.3%
$337,500 Population Growth Rate 2011-2016
Median Market Home Value
43,555
Number of Jobs
41 mins.
Average Work Travel Time 14%
Job Growth: 2011-2016

3.6% 27,850
Unemployment Rate
Student Enrollment

35 2.5%
Median Age Student Growth: 2011-2016

Proposed FY2019 Budget Presentation — March 6, 2018 3

Challenges of Growth
Population Growth
Projected annual growth continues to remain above 2%

Population % change

Proposed FY2019 Budget Presentation — March 6, 2018 4

Challenges of Growth
School Growth Enrollment
Projected annual growth continues to remain above 1%

School Enrollment % change

Proposed FY2019 Budget Presentation — March 6, 2018 5

Challenges of Growth
Fastest Growing Counties* Ranked 2016 Per Capita Enrollment
with 2017 Tax Rates

2nd Highest Population in Virginia

4th Highest Population in Virginia
*Comparative Localities Stafford County has the 2nd highest
student population among comparative
localities, and is the 4th highest in the state

Proposed FY2019 Budget Presentation — March 6, 2018 6

Challenges of Growth
General Fund Full-Time Position
History (Non-Public Safety)
Stafford remains under 2007 staffing levels with proposed budget

Population Total Staff

Proposed FY2019 Budget Presentation — March 6, 2018 7

Budget Overview – All Funds
Expenditure Summary
Total: $572,990,283

Revenue Summary
Total: $573,065,808

Proposed FY2019 Budget Presentation — March 6, 2018 8

Budget Overview – General Fund

Total General Fund:

$301,104,254
Proposed FY2019 Budget Presentation — March 6, 2018 9
Budget Overview – General Fund
Budget Highlights
• 4.6% Overall budget increase
• 3.2% Property tax revenue increase
• 4.0% Consumption tax revenue increase
• Strategic use of fund balance

Budget Drivers
• Education Funding $6.36M
• Public Safety Staffing $1.97M
• Staff Salary Increase $1.12M
• Market Pay for Staff $625K
• Social Services Staffing $408K

Proposed FY2019 Budget Presentation — March 6, 2018 10

FY2019 Proposed Tax Rate

Reassessment Overview Stafford County

• Average Home Price - $301,300 Historical Tax Rate
• Average Tax Bill – $2,907
• New Construction Growth – 2%
• 2 year Assessment to Assessment
Average
 Residential – 9%
 Commercial – 5%
Tax Rate
FY18 $0.099 to Proposed FY19 $0.965

Proposed FY2019 Budget Presentation — March 6, 2018 11

 FY2019 BUDGET INITIATIVES

Supporting Community Growth Needs

Strengthening Public Safety

High Performance Investments

Positioning for the Future

Proposed FY2019 Budget Presentation — March 6, 2018 12

 Supporting Community Growth Needs

As the population emergency-related

grows… Public calls increase
Safety

Our community is growing,

caseloads
and as it grows, the service
multiply
Courts expectations grow
requiring that we position
traffic congestion the county for the future.
Transportation

miles of new
pipe installs Utilities
intensify

Proposed FY2019 Budget Presentation — March 6, 2018 13

Supporting Community Growth Needs - Education

$1.55M $1.72M
• Funding for growth • Allocating additional funding to
• Maintaining per pupil funding as address School priorities and
enrollment grows needs

$2.69M $285K $103K

Increase in CSA Increase provides an Increase to
budget for additional classroom support School
mandated Private that can serve 6 debt service
Day School more students for
placements Public Day School

Proposed FY2019 Budget Presentation — March 6, 2018 14

 Supporting Community Growth Needs - Children Services Act

Annual Average Cost Per Child Total Private and Public Day
Private Day School Costs School Costs

Number of Budgeted Projected

Children Served

Proposed FY2019 Budget Presentation — March 6, 2018 15

Strengthening Public Safety
Five Sheriff Deputies
Assists with moving towards the
Community Policing Staffing Plan goals

Fire Engine Crew

Supports working towards response times of
eight minutes or less 90% of the time

Hazardous Duty Pay Addition

Adding competitive retirement benefit for
public safety staff

Volunteer Service Coordinator

Allocating needed capacity support for the
volunteer firefighter program

Proposed FY2019 Budget Presentation — March 6, 2018 16

 High Performance Investments
Targeted
2% Salary 10 Positions Classification and
Market-Based (Non-Public Compensation
Increase Pay Increase Study
Safety)
Securing high- Regional Social Services - 6 Gaining an
quality staff with competitiveness Budget -1 organization-wide
competitive pay IT - 1 classification
action vital in
Economic assessment while
retaining and investing in future
attracting Development – 2
conversions to FT compensation and
qualified staff staffing decisions

- Immediate focus on social services and - Economic Development shift from

emergency communications staff contract employees to FTEs
- Two Social Services positions contingent
on state Medicaid funding

Proposed FY2019 Budget Presentation — March 6, 2018 17

 High Performance Investments
Dedicated fund to support staff-motivated initiatives
Innovation Fund focused on improving organizational work processes
and customer service

Skill-Based Training A one-time infusion of training funds to reduce the

effects of disruptive technology and assist with skill-
Program specific training needs

Talent To fully leverage talent within our organization, this

Management system will provide performance management,
succession planning and learning opportunities
System

Proposed FY2019 Budget Presentation — March 6, 2018 18

Positioning for the Future - Strategic Investments

FY2019 FUNDING STRATEGIES SYSTEMS IMPROVEMENTS

To meet long-term goals staff has Systems support provides staff with critical
implemented the following funding data aiding strategic decisions, production
strategies: efficiencies and long-term planning efforts

Enterprise Resource Planning

(ERP) System Project

Asset Management System

COURTS SAFER GRANT
$350,000 $366,700 Expansion of OnBase
Project Support Project Support

Proposed FY2019 Budget Presentation — March 6, 2018 19

 Positioning for the Future - Strategic Investments
CAPITAL IMPROVEMENT
PROGRAM
Making use of strategic financial planning
strategies
Strengthening the CIP reserve
process to identify and allocate
year-end and one-time funds
Recommend adding an annual
CIP report to policy
Asset management system
allowing for data-driven
decisions
Proposed FY2019 Budget Presentation — March 6, 2018
VEHICLE REPLACEMENT PROGRAM
Process safeguards reliable
transportation options for County
employees by establishing a grading
criteria overseen by a committee to
evaluate and make recommendations
when funds are available with
opportunities to reduce fleet size
Number of Vehicles for General 118
Government
Number of Vehicles Greater 43
than 10 Years
Number of Vehicles Greater than 18
100,000 miles
Number of vehicles greater than 10 18
years and greater than 100,000 miles
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Positioning for the Future - Strategic Investments

Economic Development
Downtown Stafford – Targeted Growth Area
• Mixed Use community plan though public/private partnership
• New courthouse plan

Transportation improvements:
• Courthouse interchange on I-95 (new park and ride lot)
• Courthouse Road widening
• Route 1 improvements
Continued focus on Tourism:
• Sports tourism
• Promoting Stafford’s tourism assets
Staff improvements
• Finalization of director hiring process
• Conversion of two contract positions at the cost of $29,838

Proposed FY2019 Budget Presentation — March 6, 2018 21

Board Priorities
• Five additional deputy positions
• Fire engine crew
• Fire and Rescue Volunteer Program
process improvement
• Fire and Rescue Volunteer Service
Coordinator
• Hazardous duty pay improvement
• Courts funding strategy
• ERP Study
• Innovation fund
• Talent Management System
• Asset management system
Proposed FY2019 Budget Presentation — March 6, 2018
• Funding of growth needs
• Supplemental growth
allocation for priorities
• Children Services Act
increase for Private and
Public Day School
• Two positions with allocated
conversion funding
• Downtown Stafford mixed-use
community
• Merchant Cap focus on
public/private partnerships
• 2% salary increase
• Targeted market-based pay
increase
• Eight staff positions
• Classification and compensation
study
• Skill-based training program for
staff development
• Revised Capital Improvement
Program (CIP) year-end allocation
process
• Annual CIP reporting tool
• Vehicle replacement process
• SAFER grant funding strategy
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 FY2019
OTHER SERVICES
Capital Program

Utilities

Transportation

Service Districts

Proposed FY2019 Budget Presentation — March 6, 2018 23

Capital Program - $7.59M
Schools
The school bond funded projects are
presented as a wedge. The School
staff is developing data to provide the
Board to make informed decisions
about the timing and the location of
new facilities. Presented separately
from the wedge are:
• $1M for completing the new
Moncure ES – part of original
planned spending, not an increase
of the budget for the overall
project
Proposed FY2019 Budget Presentation — March 6, 2018
County
The FY19 Projects are:
• Replacement apparatus for Fire and Rescue: 3
ambulances (cash funded); 1 engine and 1 ladder –
master lease funded
• Cardiac Monitor/defibrillator and CPR equipment
replacement for Fire and Rescue – master lease
funded
• Current year revenue of $2.9M for repair,
replacement, and rehabilitation (3R) projects
• Use of Prior Year Fund balance of $1.2M to provide
one time funding for capital needs
The General Fund is expensing capital projects under
$100K. Projects funded with current revenue and with
prior year fund balance:
• $1.8M in various 3R projects
• $763K for Sheriff’s vehicle replacement
• $434K for County vehicle replacement
24
 Utilities - $67.6M
The Utilities system has grown significantly, adding over 100 miles of
new pipe in the past five years. At the same time, the infrastructure
continues to age and current staff is unable to keep up with the ever-
growing demands.

Revenue Neutral Position Additions

Ensure we are able to maintain industry standards and proper water system health
New Field Crew Team (Four Positions) – Savings of $798K

Increase capacity to minimize Fats, Oils, and Grease (FOG) events in our system
Industrial Pretreatment Program Manager – Savings of $46K

Eliminates expensive overtime costs

Water Treatment Plant Operators (Two Positions) – Savings of $19K

Proposed FY2019 Budget Presentation — March 6, 2018 25

 Utilities
New Position Additions:
Enhances data collection management for making informed
decisions improving public safety

GIS Analyst – Cost of $20K

Avoids unnecessary overtime costs with several new
customers to check annually

Meter Tech (Part-Time to Full-Time Conversion) – Cost of $7K

Maintaining the increased workload at Lake Mooney and the aging system
at Smith Lake is critical to public health and system reliability necessitating
an additional mechanic

Maintenance Mechanic II– Cost of $30K

Proposed FY2019 Budget Presentation — March 6, 2018 26

 Transportation - $8.53M
Highlights:
Challenges:
• Virginia Railway Express subsidy down 2.5%
• Potomac Rappahannock Transportation Operating revenues continue to decline, while
Commission subsidy up 9.6%
operating expenditures are projected to
• Upcoming Road Projects:
increase, creating additional pressures on
2018 available funding for future road projects
Courthouse Road/Route 1 Intersection Improvements
Courthouse Road Widening While the Fuels tax is anticipated to increase
Ferry Road/Route 3 Intersection Improvements 10%, it is still well below operating levels
Garrisonville Road Widening
Poplar Road Improvements, Phase III

2019
Woodstock and Telegraph Lane Safety Improvements
Flatford Road Sidewalk

Proposed FY2019 Budget Presentation — March 6, 2018 27

Service Districts

FY 2019 New Tax District Rates

Two neighborhoods were facing expensive repairs to
infrastructure. Stafford worked with citizens to create
service districts to help them fund those repairs.

Lake Carroll - $13K Lake Arrowhead - $112K

• Purpose of the district is to • Purpose of the district is to
repair, construct, reconstruct repair, construct, reconstruct
and maintain the Kennedy and maintain dams in the
Dam subdivision
• Tax Rate: $0.144 • Tax Rate: $0.010

Proposed FY2019 Budget Presentation — March 6, 2018 28

Supporting Community Growth Needs

Strengthening Public Safety

High Performance Investments

Positioning for the Future

29
 FY2019 Budget Process
Date/Time Item Date/Time Item
March 13, 2018 Budget Work Session April 17, 2018 Third Quarter Review
2:00 p.m.
April 17, 2018 Budget Work Session.
March 20, 2018 Discussion of Financial Polices – 1:30 p.m.
1:30 p.m. Finance, Audit and Budget Committee April 17, 2018 Proposed Board Resolutions:
Meeting 3:00 p.m. (1) Adopt the FY2019 Budget
March 20, 2018 Joint Budget Work Session with the (2) Approve the CIP
5:00 p.m. School Board (3) CY2018 Tax Rates
March 27, 2018 Budget Work Session
2:00 p.m. April 17, 2018 Public Hearing for the tax rate for
7:00 p.m. the Lake Arrowhead and Lake Carroll
April 3, 2018 Public Hearing for:
Service Districts.
7:00 p.m. (1) Tax Rate
(2) FY2019 Budget April 17, 2018 Proposed Board Resolutions to
(3) CIP 7:00 p.m. adopt the Lake Arrowhead and Lake
Carroll Service Districts.

Proposed FY2019 Budget Presentation — March 6, 2018 30