Mr. Chairman, Members of the Board,

I am here tonight to address questions raised since the County Administrator proposed the FY 2011 budget, which begins July 1. Before I begin, I want to point out that the budget presented last Tuesday night is a proposal, - the Board of Supervisors is currently reviewing the proposed budget and plans to discuss possible changes at future meetings prior to final adoption.

The overall budget totals $89,188,378, which is 4.3%, or $3,633,802 higher, than the current fiscal year. The question has been asked – how can the County increase its budget by $3.6 million while asking the school system to take a reduction of $442,281 in the local share of funding contributed by the County?

The answer, simply put, is that $3.5 million of the $3.6 million increase is to pay for capital projects in the Utilities Fund, which are funded entirely by debt financed dollars that can’t be used for any other purpose. These funds will pay for essential utility projects the Board previously committed to such as the mandated expansion of the wastewater treatment plant, locating and maintaining new sources of water for the County system, applying for a permit to withdraw water from the Rappahannock River and essential utility equipment. Without funding for these projects, the County could not provide utility services to support projected population growth and critical economic development efforts in the near future.

The proposed operating budget is .5% higher because of increases in other funds related to Social Services, the Comprehensive Services Act, legal services and grant funds.

The General Fund, which provides the bulk of the County’s operating revenues, has decreased by $100,406 from FY 2010 and $306,457 over the previous two fiscal years. The decrease in the General Fund would have been more dramatic were it not for an increase of $370,646 in the Fire & Rescue budget to fund volunteer operations at 100% and focus on delivering efficient and effective emergency services to the public. In addition, the County’s projected cost for housing inmates at regional correctional facilities has increased by $217,605.

The County’s proposed contribution for schools is $14,227,576. Operating funds are $10,900,000 and debt service for schools is $3,327,576. The new Lewis & Clark Elementary School and other school renovation projects have increased the debt service this year.

In conclusion, the County has done its part to reduce costs in the current budget crisis, implementing and proposing the elimination of 19 full-time positions over the past two fiscal years and requiring employees to take pay cuts to balance the budget.

You have our firm commitment from the Board of Supervisors to provide the maximum amount of local dollars possible to make our school system the best it can be during these unprecedented times.