Divided board approves Warren County budget by 3-2 vote

Let’s begin with a riddle – when can 37 minutes seem like a lifetime?

ANSWER – the evening of April 18, when the Warren County Board of Supervisors was poised to approve its FY 2018 budget after 11-weeks of discussion of, and hard staff work on, balancing that budget.

It started innocuously enough, as Dan Murray made a motion to approve the $105,626,234 budget, requiring $73,955,107 of county revenue; along with $28,817,492 in state; $2,358,334 in federal; and $495,301 in other local funding.  That county revenue includes a 3-cent real estate tax increase (from 62 to 65 cents per $100 of value) to fund $1.2-million in operations for the new middle school that will open in September.  Archie Fox seconded the motion and one week after a public hearing at which only three of nine speakers expressed outright opposition to the budget and/or tax increase it looked like a quick resolution to funding the county’s municipal business for the coming fiscal year.

Not so fast, sports fans.

I could do us all a favor and make this a short story – on Tuesday evening after some occasionally heated debate, the Warren County Board of Supervisors approved its proposed budget by a 3-2 vote.  Archie Fox and Tom Sayre cast the dissenting votes (the wisest among you will stop reading now – NAH, what fun would that be!).

So, here’s the long version:

Is it over? County Administrator Doug Stanley carries budget materials away after tight vote approving staff’s recommended FY 2018 budget. Photos/Roger Bianchini

First, after making his motion to approve the budget as presented, Murray recounted some of the more outrageous constituent requests sent his way to eliminate the tax hike and cut the budget.  Those included shutting down the parks & rec-run community pool (a particularly NASTY idea for the community’s youth in the face of forecasts of coming long, hot summers); eliminating a 2.5% Cost of Living Adjustment for staff, as well as slashing all departmental funding.  Perhaps Murray’s somewhat incredulous listing of, what could you call it – the axe-murder theory of budget preparation? – let the crazy train out of the station, because the seeming done deal spiraled away over the next 35 minutes.

Tom Sayre expressed a belief that relying on real estate taxes as a primary funding source for county operations was fundamentally unfair to landowners.

Murray responded by pointing out that the 3-cent real estate hike equated to $30 annually for each $100,000 of real estate value.

Sayre then revisited an old gripe that dates back to his town council days – state limitations on municipalities’ ability to impose a cigarette tax.  Sayre has long championed the idea of a cigarette tax as a revenue alternative, despite arguments from former council colleagues that it would simply drive smokers across municipal lines to buy their cigarettes in non-taxing communities, thus leading to an ultimate negative revenue impact.

Then after initially explaining his support of the tax increase to fund operations of the final piece of the county’s secondary school puzzle – a decade-long capital improvement plan designed to carry public schools forward another 20 years without further middle or high school physical plant needs, Fox took a turn toward an old gripe of his own.  He offered an amendment to the original motion to approve the budget and tax increase as presented.  That amendment was to eliminate county funding of its municipal golf course.  Sayre seconded Fox’s amended motion.

That led to a lengthy discussion between Fox, Tony Carter and Dan Murray over implications of such a move. – “I think it should be self sufficient,” Fox stated.

After nearly 3 months of discussion, Tony Carter asks where the additional budget cuts might be found. To Carter’s left, Dan Murray agreed, but added NO revenue or tax increases NEXT year.

“I agree,” Carter countered, pointing to past efforts to achieve that. “Do I think it will ever be self-sufficient? – No,” Carter admitted.  However, he noted that progress had been made and that the involved amount was a negligible portion of the budget.  Numbers presented in the parks & rec budget show a $316,503 Front Royal Golf Club budget, offset by $253,450 in revenue, requiring county funding of $63,053.

Carter also noted the complications presented by the gift of the golf course and land from the Carson family in 1939, as a remembrance of their son, a student at R-MA who died.  A condition of the gift was that it be used for the recreational enjoyment of the community.

Dan Murray jumped in to point out there has been an inquiry from the private sector to take over operations of the golf club – an inquiry that could solve the county management and revenue dilemma.  Murray asserted that to suddenly stop funding operations while such an inquiry was developing could kill the potential deal.

After the meeting, Fox asserted that his proposal to defund the club might actually speed up negotiations.

Archie Fox, left, and Tom Sayre appear unmoved by Carter and Murray’s arguments.

At several points the conversation between Carter and Fox got testy.

“This isn’t a personal vendetta,” Fox said of his opposition to support of the golf club.

“I didn’t say it was,” Carter replied.

Following the 3-2 votes defeating Fox’s amended motion and approving the original motion to pass the budget and tax hike as presented, Carter said pointedly, “I’d like to hear from anyone who didn’t support the motion and show me where the cuts could be made.”

Fox replied that the budget had been approved as presented, precluding the necessity of any further elaboration.

In fact, during the pre-vote debate Carter said he would play Devil’s advocate and suggest cuts that could eliminate revenue requirements ($810,000) for 2 cents of the proposed 3-cent tax hike.  However, after making those suggestions he added that the board could be in worse shape in FY 2019 for failing to address those budget needs in the coming fiscal year.

As previously reported on this budget cycle, in addition to the new revenue generation from Real Estate and Mobile Home tax increases ($1,214,952), finance and administrative staffs came up with a combination of cuts, use of General and Contingency Fund assets, and additional fees and savings to make up the total $3.5-million revenue gap the county had faced.

Included in that final solution were $250,735 in cuts; reserve and contingency fund usage of $1,133,300; miscellaneous saving of over $500,000 from various sources, including Health Care savings ($245,191); VDOT revenue related to the Morgan’s Ford Bridge project ($251,448); an estimated $254,032 in new fees paid by Dominion Power that is based on the Real Estate tax rate; as well as the $7,500 fee the County will get for acting as the fiscal agent for the new Skyline Regional Criminal Justice Academy.

Another power plant?

One interesting aside came as Carter noted the golf course lies on 60 of a total of 100 acres of county recreational property in that near northside area.  During that observation as the discussion ground toward a vote, Carter noted that in addition to the interest Murray referenced in taking on management of the golf club; as discussed briefly during the February 7 meeting another party has expressed interest in putting a power plant on the other largely undeveloped 40 acres of recreational land.  That proposal is in the early stages of discussion between the County and potential developer.