Montgomery County, Va. FY 24 Approved Budget

MONTGOMERY COUNTY, VIRGINIA Board of Supervisors

F. Craig Meadows | County Administrator

Angela M. Hill | Deputy County Administrator/Chief Financial Officer

Bradley N. St. Clair | Assistant County Administrator

Marc M. Magruder | Director of Management and Budget

Paul F. Kaiser | Business/Financial Analyst/CIP Coordinator

Susan S. Dickerson | Administrative Coordinator

Steve Fijalkowski District C

Mary Biggs Vice Chair District F

Sara Bohn District A

Sherri Blevins Chair District B

Darrell Sheppard District E

April DeMotts District G

Todd King District D

COVER IMAGE

Scenic view of the Riner area of Montgomery County.

Approved

Budget for Fiscal Year 2024

BUDGET MESSAGE

February 27, 2023

Dear Honorable Members of the Board of Supervisors –

I am pleased to present to you the proposed Fiscal Year 2023-2024 Montgomery County budget for your review and consideration. The proposed budget outlines the County’s fiscal plan of operations for the upcoming year, and was developed by our leadership team to meet the current and future needs of the County.

Our County organization has remained steadfast over the past year, even as we have continued to face challenges from the COVID-19 pandemic and its aftereffects. The County has remained strong financially; in fact, several of our revenue categories continue to see record growth. Projections for the current fiscal year indicate County revenues continue to trend higher for real estate, personal property, and sales taxes. This trend will likely continue into the new fiscal year. Our recent reassessment of real property, effective for January 1, 2023, reflected an average increase in property valuation of approximately 30%, an increase not seen since before the Great Recession of 2008. While this increase was significant, the previous two reassessments reflected much smaller increases in valuation, and when averaged over the past 12 years, our real property valuation has increased approximately 5% per year.

While our revenues have continued to be resilient post-pandemic, the County is also experiencing significant pressures on the expenditure side of our operations. Inflation continues to impact the cost of supplies and materials needed for County operations. Coupled with supply-chain shortages for many materials, these factors have impacted our ability to perform our daily responsibilities and challenged us to develop new ways to meet those requirements. Our County employees have been steadfast in providing a high level of service on behalf of our citizens, but they are also feeling the impact of inflation in their personal budgets. Employees often share with me that they are very appreciative for their jobs with the County; however, they see daily that County operations are stretched extremely thin in a number of operational areas. The County’s employees are the greatest asset this organization has, and I am committed to providing additional support for them in the upcoming year.

With the recent reassessment, the value of one penny of real estate tax revenue is now approximately $1,175,000. The revenue neutral tax rate, adjusting for a 1% increase in value to cover the cost of the reassessment as allowed by state law, is 70 cents per $100 valuation, a decrease of 19 cents from the current real estate tax rate of 89 cents. For the fiscal year 2024 proposed budget, I am recommending a real estate tax rate of 73 cents, which is an increase of 4.3% over the revenue neutral rate.

The proposed FY 2023-2024 budget for all funds is $239.9 million, an increase of $19.1 million (8.7%) over the current fiscal year. The budget as proposed consists of $102 million provided from federal, state, and other designated funds, with the remaining funds of $137.9 million representing County dollars that are not designated for a specific purpose. As our Director of Management and Budget shared with you in a presentation in January, the County expects general undesignated revenue growth of $7.1 million for the new year, excluding any increases in the real estate tax rate.

Proposed funding for the County’s General Fund, net of transfers to other funds, totals $66.3 million, an increase of $7.5 million (12.9%) from the current fiscal year.

Proposed funding for the Montgomery County Public Schools’ (MCPS) Operating Fund, net of transfers to other funds, totals $136.1 million, which is an increase from the current year of $9.7 million (8.0%). This includes my recommendation that $4 million in additional funds be provided from the County’s General Fund in FY 2024 to support MCPS operations. MCPS requested additional County funds of $6.1 million to address shortfalls in their proposed budget; of this amount, $1.3 million is a result of a calculation error by the State Department of Education. Removing this calculation error, MCPS’ request would be $4.8 million, and my recommendation of $4 million would address 83% of the Schools’ request. I have reallocated one penny of real estate revenues previously allocated for future County and MCPS capital construction to special contingencies. These funds will provide the Board of Supervisors with options to include school funding should the Commonwealth fail to provide a funding resolution for its $1.3 million error; retaining it in the allocation for future capital; or other priorities the Board may wish to address in the proposed budget.

In addition to the 5% salary increase included in the Governor’s proposed budget for teachers, the Virginia Houses of Delegates and the Virginia Senate have proposed an additional 2% salary increase, for a total increase of 7%. As the General Assembly adjourned this past Saturday with no resolution to the State budget, at this point there are no additional funds to address this proposal. If this additional salary increase is approved, additional funds will be required if MCPS desires to provide funding for a comparable salary increase for MCPS non-SOQ (Standards of Quality) positions; this translates to another unfunded mandate from our state leadership, and creates a significant additional funding challenge for our schools.

The following charts show the revenue sources and expenditures for the proposed FY 2024 County budget:

The chart below shows the amount of funding provided for education, including debt service and school capital projects, for the past five fiscal years:

Due to the significant increase in the value of one cent of the real estate tax rate, I am recommending that the set-asides for future capital for the County (currently 1.5 cents for Fire and Rescue and 1.0 cents for capital projects) and MCPS (currently 2.5 cents) be reduced by a half-penny, to two cents each. Even with this reduction, the net funding for future capital for both the County and MCPS will increase due to the increase in the reassessed real estate values. These funds have been placed in special contingencies so the Board may have flexibility in using these funds to address other budget needs, as I mentioned earlier.

To ensure that the County remains steadfast in funding projects that focus on the future, I am recommending the following funds be allocated for the upcoming fiscal year

• School Capital Fund - $2.4 million (2 cents of the real estate tax rate) for school capital projects;

• Fire & Rescue Capital Fund - $1.8 million (1.5 cents of the real estate tax rate) for fire and rescue equipment; and

• County Capital Fund - $1.9 million (which includes 0.5 cents of the real estate tax rate, as well as $1.4 million from other revenues) for capital and maintenance projects.

With an on-going designation of $2.4 million, funds will continue to accrue annually for the next priority school capital project, once the projects in the Christiansburg school strand are completed. Fire and Rescue Capital will receive $1.8 million to ensure that our volunteers are well-equipped to provide high quality service to our citizens.

Other monies earmarked for the County Capital Fund provide dollars annually for the following:

• $425,000 for the Auburn Park project; with the grading now complete, we look forward to moving forward with the final construction of the new park in Riner;

• $210,000 for Information Technology infrastructure projects, which allows County technology needs to be addressed;

• $587,716 (or 0.5 cent of the real estate rate) enables $100,000 to be set aside for future Valley to Valley Trail projects and provides $487,716 each year for other future County capital projects; and

• $750,000 for County capital maintenance projects, which allows for proactive preventive maintenance and for handling large scale building repairs or replacements.

Funding for the major categories of the County’s budget for the last five fiscal years is shown in the chart below:

Our County employees are industrious, helpful, and steadfast in their commitment to service to our citizens, all during a time of increased demand for services. In recognition of their efforts, and in an attempt to address the significant impact that inflation has created for them over the past year, I am proposing a 7% increase in compensation for all full-time and part-time classified employees, effective July 1, 2023. For employees who have reached the top of their pay grade, I recommend a 7% onetime supplemental payment in lieu of a salary increase. This recommended pay increase for County employees matches what is being recommended for state employees, and allows us to keep our compensation competitive so that we can attract and retain the best employees available. Funding in the amount of $2.3 million is included in the proposed budget to address this request. State funds of approximately $400,000 offset this cost, bringing it to $1.9 million.

With the Christiansburg Town Council’s decision to remove Town police officers from MCPS facilities located within the Town of Christiansburg corporate limits as of July 1, 2023, Board members have expressed a desire to provide funds for the provision of School Resource Officers (SROs) in MCPS facilities in the two towns. Funding in the amount of $673,605 is included in the proposed budget to provide salaries, benefits, training, and equipment (including vehicles) for five additional SROs to be managed by the County Sheriff, and placed in MCPS facilities as determined by the Sheriff and MCPS administration. In addition to funding for SRO positions, an additional $333,910 is included in the Sheriff’s Office budget for an annual contract for body cameras, increased cost of fuel, and an increase in motor vehicle purchase costs.

The proposed budget also includes funding for the creation of a Community Resource Officer (CRO) program, to be housed at the County Government Center. The CRO will be a liaison for the Sheriff’s Office, and will be available to meet with citizens to discuss any concerns related to community public safety. The CRO will also provide staffing for many of the after-hours meetings of the Board of Supervisors, Planning Commission, School Board, and other County meetings as needed. Funding in the amount of $182,752 is included in the proposed budget to provide for a full-time position, additional part-time support when needed, and equipment (including a vehicle) to be utilized by the CRO.

With the implementation of paid first responders for emergency service response in the current fiscal year, the program has seen rapid growth and demand for additional staffing. Eastern Montgomery County has experienced a significant decline in volunteer rescue service, and there are times where other areas of the County have a difficult time with volunteers being available to respond to service calls. The County is ultimately responsible for the safety and well-being of our citizens, and we must provide additional funding for first responders, to ensure the safety and well-being of our citizens. For the upcoming fiscal year, an additional $1,358,681 is budgeted to provide eight additional emergency services technicians, four field supervisors, and funding for additional overtime and operating expenses. With this additional funding, the County will provide resources for a total of 21 full-time employees who will be serving as basic life support (BLS or EMT) and advanced life support (ALS or paramedic) responders. As I have stated on numerous occasions, Montgomery County has been blessed for many years to have strong volunteer fire and rescue agencies; nothing that is being proposed is designed to diminish that appreciation. The purpose of the proposed funding is to supplement our volunteers’ efforts in providing the highest level of support for our citizens.

Other new positions are proposed in the FY 2024 budget to address the level of increased services and responsibilities in several of our operating departments. In addition to the positions mentioned previously, a total of four additional positions are recommended in the following departments: General Services; Planning and GIS; and Parks and Recreation; and a part-time, non-classified position at the Animal Care and Adoption Center is also recommended to become full-time. Operational costs in General Services are projected to increase by almost $700,000, due to an increase in utilities for both existing facilities and the new garage and office of elections, increased cost of diesel and gasoline fuel, maintenance service contract increases, and a new vehicle to support parks maintenance. While these increased funding needs are for the General Services department, many other departments are also receiving increased funding support to ensure County departments remain steadfast in their ongoing support for our citizens and businesses.

As a result of the various legal settlements related to the opioid epidemic, approximately $350,000 is available from finalized settlements through FY 2024 for opioid abatement programs and activities. As future settlements are reached, this amount is anticipated to increase. While these funds have been identified, they are not included in the FY 2024 budget. The County Attorney, working with the Director of Human Services and the Assistant County Administrator, are meeting with judicial representatives, local service agencies, and other localities to determine possible uses of this funding. As details are developed for various programs that support for treatment strategies, education, and outreach initiatives, the Board will be asked to appropriate funding from this allocation to address the impacts of the opioid epidemic in our community.

Beginning in FY 2024, the County will no longer receive $56,043 in federal funding for the Retired Senior Volunteer Grant Program (RSVP). The County will absorb these costs in the General Fund and gradually expand volunteer programs to include additional participants and initiatives. Also included in the General Fund budget is the Victim Witness Grant program. This state grant of $210,674 funds three full-time positions that will now be included as classified positions on the County’s Compensation and Classification Plan. This vital program provides support to victims and witnesses throughout the court process.

I am again recommending funding in the proposed budget of $500,000 for New River Community College’s (NRCC) Access to Community College Education (ACCE) program. The ACCE program allows Montgomery County high school graduates to continue tuition-free education at NRCC, with their commitment to provide service hours to the community in return. The County has supported students through this highly-successful program with a total of over $2.5 million budgeted to date, of which $1.5 million has been expended.

There are two proposed, cost free initiatives of which I am seeking the support Board of Supervisors in the upcoming fiscal year. The first is allowing the County to investigate the possibility of moving toward a reassessment cycle that occurs every two years as opposed to the current cycle of every four years. Researching the costs involved with creating a Department of Assessment within County government to conduct our reassessments internally instead of contracting this service out would be included in this process. If you agree, County staff will research this issue, and provide the Board with information that could be integrated into future County budgets.

The second initiative involves more closely integrating the County’s Public Service Authority into the County’s operations. While the PSA and the County work closely together on many issues, the PSA operates as an independent entity, with minimal coordinated effort to integrate land use, GIS, and other County functions as part of the PSA. This initiative would allow County staff to recommend an operational structure for the PSA to be part of the County, while retaining an independent PSA Board of Directors to guide County and PSA staff on operational issues.

I am extremely grateful to the County’s department directors, agency heads, and Constitutional officers for their active participation in the budget review process. Our leadership team understands the fiscal challenges that face our County, and they respect and adhere to the Board’s fiscally conservative philosophy. The County’s department directors, agency heads, and Constitutional officers were part of the review process for these budget requests, and developed a ranking of the departmental requests, which I used as part of my budget development. Although not ranked by the

leadership team, during the development of the annual budget the County received requests for increased funds from agencies outside of local government operations totaling $828,862. The proposed budget provides a total of $3.1 million to various outside agencies and organizations, some of which are mandated as the County is contractually or statutorily required to provide the funds.

During this year’s budget process, I have been blessed to have the assistance of Angie Hill, Brad St. Clair, Marc Magruder, Paul Kaiser, Jeff Raines, Susan Dickerson, Jennifer Harris, and Derley Aguilar in preparing, refining, and presenting this budget information to you. Angie, Brad, Marc, and I spent a great deal of time reviewing, debating, revising, and reviewing (again) the information contained in this presentation. Jennifer and Derley provide editorial feedback and the creative magic that ensures our budget document, presentations, and information reflects our best efforts in communications. The proposed FY 2023-2024 budget provides funding to address our core local government responsibilities, as well as funding for areas that must be addressed as part of our service to a growing community. County staff and I look forward to reviewing the proposed budget information with you in the days ahead. A budget work session is scheduled for Monday, March 6th, for the Board to establish the advertised tax rate and advertised budget, in order to meet the required deadlines. The required public hearings on the proposed budget and tax rate are scheduled for a special Board of Supervisors meeting on Thursday, April 13th, at 6 p.m. If all goes as planned, we ask that the Board approve the proposed budget at your regular Board of Supervisors meeting on Monday, April 24th.

I am extremely grateful to you for your leadership and continued support. I have no doubt that the upcoming fiscal year will be another year of achievement for the County, and that our County will continue to be steadfast in its support of our citizens, our businesses, and our employees. I and our leadership team are available to address any questions or suggestions you may have as you review the budget information.

All the best,

F. Craig Meadows County Administrator

Approved Budget for Fiscal Year 2024

TABLE OF CONTENTS

Approved Budget

for Fiscal Year 2024

OVERVIEW OF MONTGOMERY COUNTY

Montgomery County, Virginia

Since its founding in the eighteenth century, Montgomery County has experienced a rich history in agriculture, manufacturing, and technology with ties to notable historical figures to include George Washington and even Daniel Boone. The county has experienced consistent growth throughout the years.

Montgomery County – which is home to two of the state’s four largest towns, Blacksburg and Christiansburg – is a high-tech community strategically located on the Interstate 81 corridor.

The county provides a full range of services to its approximately 100,000 residents to include: law enforcement; fire and rescue; planning and GIS; economic development; social services; courts; parks and recreation; general services; environmental services; animal control; libraries; and schools.

Montgomery County traces its origin to 1776 when it was formed and named after General Richard Montgomery, an American hero of the French and Indian War and the American Revolution. The first settlement, Draper’s Meadow, was established in the 1740s but was destroyed by Shawnee Indians during the French and Indian War.

Christiansburg, the county seat, was incorporated in 1792 and named in honor of Colonel William Christian. This community was an important stop on the Wilderness Road, which roughly corresponds to the present day U.S. Route 11. As the retail hub of the county, Christiansburg is host to several shopping centers and restaurants.

Blacksburg was incorporated in 1871. The town originated on tracts of land donated by William Black – for whom it was named – and was established at the same site as the previous settlement of Draper’s Meadow. Blacksburg is home to Virginia Tech, one of the nation’s leading educational institutions and research universities. The

OVERVIEW OF MONTGOMERY COUNTY

town is also home to the Virginia Tech Corporate Research Center.

Graduates from area colleges and universities add to the abundant, educated workforce to make a probusiness community with a solid mix of high-tech, manufacturing, retail and professional services –including a variety of Fortune 500 firms.

Snapshot: Population and Economy

The graphics and charts provided below have been obtained from the Labor Market Information report provided by the Virginia Employment Commission.

Status of our Economy: Expected to outgrow our urban neighbor by 2030.

Source: Weldon Cooper Center for Public Service, U.Va., 2017.

Population by Gender

Source: 2010 Census.

OVERVIEW OF MONTGOMERY COUNTY

OVERVIEW OF MONTGOMERY COUNTY

Projected Population Change

Source: U.S. Census Bureau, Virginia Employment Commission.

Economic Profile

Montgomery County maintains a few of the very industries that were popular at its inception to include agriculture and manufacturing. In addition, technology, health care, education, retail, hospitality, and food service are now among popular industries throughout the county. According to the Local Area Unemployment Statistics by the Virginia Employment Commission, Montgomery County consistently maintains an average unemployment rate that is lower than the national average, with a recorded rate of 2.7 percent compared to the national rate of 3.0 percent as of November 2022.

OVERVIEW OF MONTGOMERY COUNTY

Unemployment Rates

Source: Virginia Employment Commission, Economic Information & Analytics, Local Area Unemployment Statistics.

Employment by Industry

Source: Virginia Employment Commission, Economic Information & Analytics, Quarterly Census of Employment and Wages (QCEW), 2nd Quarter (April, May, June) 2021.

OVERVIEW OF MONTGOMERY COUNTY

Approved

Budget for Fiscal Year 2024

BUDGET SUMMARY

Introduction

The FY 24 approved County budget for all funds (net of transfers) totals $236.4 million. The General Fund budget totals $151.9 million, including transfers to other funds, such as the School Operating Fund. The School Operating Fund totals $134.9 million, including the transfer from the County of $58.4 million. The general government portion of the General Fund (net of transfers to other funds) totals $64.3 million and the School Operating Fund (net of transfers) totals $134.5 million. The total County budget also includes the Debt Service Fund ($25.8 million), the Law Library Fund ($17,600), the School Nutrition Fund ($5.2 million), funding for County Capital ($3.7 million), School Capital ($2.4 million), and the Economic Development Authority Incentive Program ($0.4 million).

The approved FY 24 real estate tax rate is 70 cents per $100 of assessed value. The approved rate is the revenue neutral tax rate of 70 cents, based in the County’s recent general real estate reassessment, and is a 19-cent reduction from the FY 23 approved real estate tax rate of 89 cents.

Summaries of Major Expenditure Areas

BUDGET SUMMARY

In the area of General Administration, the following major budget changes were made for FY 24:

Revenue Refunds Administration – funds are added to cover increased costs of the County’s revenue sharing agreement with the City of Radford.

County Attorney – funds are added to cover the costs of indigent burials.

Finance – funds are added to cover the costs for audit and other professional services fee increases, and lease accounting standard software.

Insurance – funds are added to cover insurance premium increases.

Information Technology – funds are added to cover the costs of software maintenance service contracts and computer hardware for information technology services for new positions added in the FY 24 budget.

Director of Elections – funds are added for the costs of a new postage meter, electronic letter opener to assist in the processing of absentee ballots, and increases in the maintenance service contract covering all of the new voting machines in the County.

In addition, as part of the FY 24 approved budget, all departments in General Administration (except Revenue Refunds and Board of Supervisors) received funding to cover a 7% compensation increase, effective July 1, 2023.

Commissioner of the Revenue – funds are added for deed and will transfer software to assist with the transfer of real estate data that is received from the Clerk of the Court into the Commissioner of the Revenue’s asset management system.

Treasurer – funds are added to cover the costs of postage and other operating costs such as training, office supplies, and equipment.

In addition, as part of the FY 24 approved budget, the Commissioner of Revenue and Treasurer received funding to cover a 7% compensation increase, effective July 1, 2023.

BUDGET SUMMARY

Commonwealth Attorney – funds are added to support the Victim Witness Grant program. Previously this program had been appropriated off cycle. This will include the program in the General Fund.

Other significant changes in Judicial Administration are related to the County funding a 7% compensation increase, effective July 1, 2023.

Public Safety

The largest expenditure in the Public Safety area is for the Sheriff’s Office, representing 74% of the total. Local funds of $12.2 million, or 67%, support the Sheriff’s Office. State and other funds provide 33% of the total funding.

Emergency Services – funds are added to support expanding paid Emergency Medical Services in FY 24. $1,358,681 is added for the costs of paid overtime and operating expenses, eight Emergency Medical Technician (EMT) positions (eight FTEs), and four Field Supervisor positions (four FTEs). To help offset the cost of providing career staffed EMS services, the County will begin a new soft billing insurance recovery program.

Sheriff – funds are added to cover the costs of maintenance service contracts for in-car and body cameras, increased fuel and equipment costs for vehicles, funding for two part-time Community Resource Officers (one FTE) to provide coverage at the Government Center and off-site County facilities, and three full-time School Resources Officers (3 FTEs).

NRV Emergency Communications Regional Authority – funds are added to cover the County’s share of costs for the FY 24 budget.

Animal Care and Adoption – funds are added to convert one part-time nonclassified office technician into one full-time classified office assistant (one FTE).

Fire and Rescue – funds are added to cover insurance premium increases and utility increases. In addition, $106,033 in base funds for Shawsville Rescue Squad have been removed from the base budget, as Shawsville Rescue Squad has dissolved.

BUDGET SUMMARY

In addition, Emergency Services, Sheriff, Animal Control, and Animal Care and Adoption all received funding to cover a 7% compensation increase, effective July 1, 2023.

General Services – funds are added to cover the costs of fleet management software for the County Garage, an additional Groundskeeper position (one FTE) in Lawns & Landscaping, an additional Housekeeper position (one FTE), and a Land Disturbance Inspector (one FTE).

Facilities and Maintenance – funds are added to cover additional operating costs of the new garage and Registrar’s office, basic utility costs, increases to maintenance service contracts, increases in fuel costs, and increases in the cost for agricultural supplies.

Solid Waste & Recycling – funds are added to cover increases in the cost of tipping fees.

In addition, all departments in Public Works received funding to cover a 7% compensation increase, effective July 1, 2023.

Health and Welfare

In the area of Health and Welfare, $170,830 is added to various Human Services outside agencies located in tab section (910). The largest increases were added to the New River Valley Detention Home, the Community Services Board, and the New River Home Trust.

In addition, Human Services and Social Services received funding to cover a 7% compensation increase, effective July 1, 2023.

Other changes in Health and Welfare are due to an increase in local match requirements for the Public Health Department.

Parks, Recreation, and Cultural

Parks and Recreation – funds are added to cover one new Maintenance Worker position (one FTE), agricultural supply costs for the maintenance of Auburn Park, and operations and maintenance costs at all County-maintained parks.

In addition, Parks and Recreation and the Regional Library received funding to cover a 7% compensation increase, effective July 1, 2023.

Other changes include a decrease in funding to the ACCE program and a small increase for the New River Community College in educational/cultural outside agencies.

Community Development

Planning & GIS – Base funding of $90,000 in land management software expenses were transferred to Information Technology, reducing expenses in Planning & GIS.

Economic Development – funds are added for the County’s Broadband position added off-cycle in the FY 23 Budget.

In addition, Planning & GIS and Economic Development received funding to cover a 7% compensation increase, effective July 1, 2023.

Other changes include turnover and vacancy savings in Planning and GIS and small increases for environmental and economic development outside agencies.

Contingencies

The County’s Financial Policies include retaining 1% of the general government portion of the County’s General Fund budget to provide funds for unknown and unanticipated expenditures that may arise during the year that are not included in the budget. To comply with this policy, $68,000 is added for a total of $651,307.

Special contingencies is a “holding account” where an estimated amount of funding is held in abeyance for programs or initiatives until further information is available and final decisions are made. Included in Special Contingencies for the FY 24 approved budget is $144,395 in funds remaining after allocating compensation increases to County departments.

Transfer to the School Operating Fund

County funding in the FY 24 budget for the School Operating Fund totals $58.4 million, which is an increase of $2.5 million from the FY 23 approved budget.

Transfer to the Debt Service Fund

In FY 23, the County transferred $3,048,900 from Undesignated General Fund Balance to the Debt Service Fund to shave the peak of school debt service costs. For FY 24, $1,116,160 of funds from this transfer are

added to the base budget. Other adjustments include realigning the base allocation for the correct debt service distribution between the County and Schools. This included a decrease in principal payments of $561,297, and an increase of $3,226,812 in interest payments.

Transfer to the School Capital Fund

2 cents of the real estate tax rate are earmarked for the School Capital Fund. This is a 0.5 cent reduction from the FY 23 Budget.

Transfer to the Economic Development Authority (EDA) Funds are transferred to the EDA for economic development incentives.

Transfer to the County Capital Fund

1.5 cents of the real estate tax rate are included for Fire and Rescue capital needs and 0.5 cent of the real estate tax rate is earmarked for future capital projects, which includes $100,000 for the Valley to Valley Trail project. This is a 0.5 cent reduction from the FY 23 Budget. In addition, $750,000 is transferred to address County capital maintenance needs. Other monies include $425,000 for the Auburn parks project and $210,000 to address technology infrastructure issues.

Detailed explanations of the expenditure recommendations, a recap of expenditures by fund, County dollars by division, position (FTE) listing, and a graphic summary of the FY 24 Approved Budget are included in Appendices.

Approved Budget for Fiscal Year

2024

BUDGET SUMMARY, APPENDIX A

All Funds Summary

All Funds Budget FY 2024

Approved Budget for Fiscal Year 2024

BUDGET SUMMARY, APPENDIX B

Expenditures by Division

Recap of Expenditures by Division, Fiscal Year 2024

Recap of Expenditures by Division, Fiscal Year 2024

Approved

Budget for Fiscal Year 2024

BUDGET SUMMARY, APPENDIX C

Summary of Full-Time Employees/Equivalents

Summary of Authorized Full Time or Full Time Equivalent (FTE) Positions

Approved Budget for Fiscal Year 2024

BUDGET SUMMARY, APPENDIX D Graphs

Approved Budget for Fiscal Year

2024

BUDGET SUMMARY, APPENDIX E Five-year Plan for the General Fund

Five-Year Plan for the General Fund

Approved Budget for Fiscal Year 2024

BUDGET SUMMARY, APPENDIX F

Organization Chart

Approved Budget for Fiscal Year 2024

UNDERSTANDING THE BUDGET

UNDERSTANDING THE BUDGET PROCESS

Preparation of the Annual Budget

Montgomery County’s annual budget begins with the development of the proposed budget, the budget recommended by the County Administrator, and ends with the approved budget, which has been reviewed, adjusted and approved by the Board of Supervisors (Board).

The County’s annual budget process begins in the fall of each year, when divisions, departments and agencies submit budget requests for the upcoming fiscal year. In January and February, County staff develop the proposed budget. The proposed budget and budget document are presented to the Board in March of each year. During that time, the Board begins deliberations to adjust the budget and develop the County’s approved budget. During budget deliberations, the Board holds public hearings for citizen comments and conducts work sessions. Citizen comments assist the Board of Supervisors in making decisions regarding spending. After budget adjustments, the final approved budget is adopted in April and becomes effective July 1. The budget runs on a fiscal year basis and is effective July 1 through June 30. The County’s 2024 Budget Calendar is shown below (some changes may occur during the process):

Fiscal Year 2024 Budget Calendar

July - August

Prior year-end expenditure and revenue analysis; revenue analysis for FY 2024 begins.

SeptemberOctober 2022 Budget targets and budget instructions are developed for FY 2024 Proposed Budget.

November 2022 FY 2024 budget forms and instructions are sent to county divisions and external agencies.

December 2022 Budget requests for FY 2024 are due.

January - February 2023 Staff begins the development of the FY 2024 Proposed Budget.

Jan. 9, 2023

Jan. 23, 2023

Feb. 13, 2023

Feb. 27, 2023

7:15 PM Public Hearing for citizen input.

7:15 PM Preliminary revenue estimates are presented to the Board of Supervisors.

7:15 PM Superintendent presents the Proposed FY 2024 MCPS budget to the Board of Supervisors.

7:15 PM Presentation of the FY 2024 Proposed Budget; Budget work session.

Mar. 6, 2023 6:00 PM Budget work session; establish advertised tax rate and advertised budget. (Special Meeting)

Apr. 13, 2023

Apr. 24, 2023

6:00 PM Public Hearing on advertised tax rate and budget. (Special Meeting)

7:15 PM Adopt FY 2024 budget and establish tax rate.

May – June Year-end revenue and expenditure estimates are finalized for FY 2023 and transfers are made to close the year.

July 1 New Fiscal Year begins.

UNDERSTANDING THE BUDGET PROCESS

Budget Development Phase

The Budget in General

The County’s budget is the government’s estimated revenues and expenditures for the fiscal year that begins on July 1 and ends on June 30. It consists of operating and capital budgets for county programs and services. The budget also allocates funds for the operating and capital needs of the public school system and contributes to a number of outside agencies.

The County’s budget consists of the following funds:

• General Fund – which provides funding for the day-to-day operations of the County government.

• Law Library Fund – which provides funding for the day-to-day operations of the law library.

• School Operating Fund – which provides funding for the day-to-day operations of the School system.

• School Nutrition Fund – which provides funding for the day-to-day operations of the School food program.

• County and School Capital Funds – which provides an annual cash-to-capital allocation for new county and school capital needs.

• Debt Service Funds – which provides funding to cover the County and School’s outstanding debt obligations.

• EDA Incentive Fund – which provides funding for economic development initiatives.

The County’s Budget Process

In November of each year, County divisions are provided with budget targets for the upcoming fiscal year. The base budget target represents the base of personnel and operating costs anticipated for the upcoming year based on the prior year approved budget with adjustments made for personnel changes and mandates. One-time only funding from the prior year is excluded from the base budget. Along with the base budget target, County divisions are also provided the opportunity to request addenda items, which represent dollars over and above the base budget.

Base Budget Targets allow for the delineation between previously approved funding levels and requested increases.

Base Budget Targets are established as follows:

• Personal Services - Includes all positions approved up to the issuance of the proposed budget

UNDERSTANDING THE BUDGET PROCESS

and covers the estimated costs in fringe benefits.

• Operations and Maintenance - Caps funding at the level of the prior year approved budget, less adjustments for one-time only expenditure items.

• Capital Outlay - Most capital outlay is removed from the base budget target as typically it is a nonrecurring expense. Some divisions maintain a permanent capital outlay allocation as they utilize the funding on a yearly basis to replace equipment on an existing replacement plan. Examples include motor vehicle and computer replacements.

Addenda Requests are increased funding over and above the Base Budget Targets. They must be presented as Addenda to the Base Budget. This means that additional justification for increased funding or the inclusion of capital outlay dollars must be provided with the request.

These adjustments are designed to clearly identify increases to operations and initiatives proposed by departments. The chart below illustrates the process.

Base Budget

Estimated costs for continued operations

Based on prior year approved budget with adjustments

Excludes: Office Furniture Other equipment

Dollars over and above the base budget target for operating and capital items

Dollars requested for new or expanded services (initiatives)

Base Budget

All budget requests (base budget request and addenda) are due in December of each year and are evaluated for inclusion in the upcoming budget. When making budget requests, County divisions must address the following:

• Is there sufficient workload to justify the request?

• Is there sufficient need to justify the request?

• Is the request related to a state or federal mandate?

• Are there legal requirements that will not be met if the request is not funded?

• Is the request linked to a specified outcome that is community or board driven?

• What tangible benefits can the County expect to experience as a result of funding the request?

All budget requests are evaluated based on available funding and the justification listed above.

How to Understand and Use This Document

With the goal of allowing decision-makers to focus on broader issues, the budget document consolidates similar functions. Efforts to streamline the process and reduce the volume of paper generated have changed the process in past years. The FY 2024 budget continues to consolidate information and array budget data in ways that

UNDERSTANDING THE BUDGET PROCESS

facilitate a broader understanding.

This budget document includes both the County’s general government operating budget, the Montgomery County Public Schools’ operating and nutrition budgets, the law library budget, county and school capital budgets, the debt service budget, and the economic development incentive budget.

The FY 2024 budget document is organized into six major headings, each of which is separated by a large divider tab:

• Budget Message

• Table of Contents

• Budget Summary

• Understanding the Budget

• Revenue Summary

• Expenditure Plans

Included under the last section; Expenditure Plans, are the 34 major County Divisions or budget categories, which include Division expenditures, revenues earmarked for use by the specific Division, and County funding provided. Listed numerically according to a three-digit code, each of these sub-sections includes the Division’s Organizational Chart, Financial Data, Description of the Division as a whole, Base Budget Discussion, Addenda Discussion, which includes the County Administrator’s recommendation. Also included are each Department’s Description and Financial Data.

Division Financial Data - Provides a recap of the Division’s funding history, including the Base Budget and addenda requests, as well as recommended funding by three categories:

• Personnel Services

• Operations and Maintenance

• Capital Outlay

Department Description and Financial Data - Presents historical budget data by major category for each department. The following column headings are used:

• FY 22 Revised Budget

• FY 22 Actual Budget

• FY 23 Approved Budget

• FY 24 Base Budget

• FY 24 County Administrator’s Recommended Addenda

• FY 24 County Administrator’s Recommended Total

The County Administrator’s Recommendation column identifies the amount of funding recommended for each major cost category by base budget and addenda.

Revenue that has been designated to offset expenditures in divisions is also presented. These sources include State Compensation Board funding, fees and permit charges collected by the respective divisions and other sources related to each specific function. In the presentation format, designated revenues are totaled and

UNDERSTANDING THE BUDGET PROCESS

subtracted from the expenditures, identifying the amount of the County’s undesignated general fund revenue needed to support the division’s expenditures.

The Process and Approvals Required to Amend the Budget

After the budget is approved by the Board, the final approved budget is appropriated and becomes effective July 1. After July 1, the Board makes adjustments through additional appropriations. The budget is an estimate; therefore, as revenues and expenditure needs change, the appropriation may be adjusted. This can mean additional appropriations or reductions of appropriations. If the budget amendment exceeds 1% of the total expenditures shown in the currently adopted budget, the Board will hold a public hearing to gather citizen input. These adjustments are approved at the Board level.

How the original budget and amendments are incorporated into the accounting system

Each month, the Board holds public meetings where appropriations are approved if necessary. After these approvals, the appropriations are entered into the County’s financial system. Expenditures can then be made by the division using the budget adjustment. The County’s accounting system separately keeps track of the County’s original and revised budget. The revised budget changes throughout the year as appropriations are adjusted.

Basis of Accounting and Basis of Budgeting

The County’s accounting system is organized and controlled on a fund basis. The basis of accounting refers to the accounting method the County utilizes to recognize revenues and expenses. There are three ways in which a governmental entity can recognize revenue and expenses: cash, accrual, modified accrual basis. Under the cash basis method, revenue is recognized when cash is received and expenses are recognized when paid. Under accrual basis, revenue is recognized when earned and expenses are recognized when incurred. Modified accrual basis is a hybrid of cash basis and accrual basis. It recognizes revenues when they become both measurable and available. Expenditures are generally recognized when the related fund liability is incurred.

The County operates on the cash basis of accounting for both budgetary and internal accounting purposes. This means that the County recognizes revenue when cash is received and expenses when bills are paid.

How budgetary compliance is monitored and enforced

Division directors are responsible for individual budgetary compliance. Departments are required to monitor and adjust their individual budgets and spending habits as needed throughout the year. They are required to stay within their approved expenditure authority.

The County’s Director of Management and Budget monitors budgetary compliance at the macro level to ensure compliance with the County’s financial policies. Budgetary control is set at the division level. Division directors may move funds between individual line items, with the exception of salary line items, which require approval of the Finance/Budget Director. Appropriation control is set at the division level.

Conclusion

The Board of Supervisors uses this combination of documents and information to review and approve the annual budget. It is available as public information for review by any citizen who requests access to it and is found on the County’s web site at www.montva.com. A glossary of financial terms begins in the following section in an effort to assist citizens in reviewing and understanding the County’s budget. If you have any questions about the County’s

UNDERSTANDING THE BUDGET PROCESS

budget or the budget process, please contact Montgomery County’s Office of Public Information at 540-382-5700.

GLOSSARY OF TERMS

Addenda Request

The request for funding amounts over and above the designated Base Budget targets.

Appropriation

An approval by the Board of Supervisors for County staff to make an expenditure or to incur debt using government resources. These are usually for specific, stated amounts over a one-year period.

Appropriation Resolution

An official act by the Board of Supervisors providing staff the legal authority to obligate or spend County funds.

Approved Budget

The budget enacted by the Board of Supervisors.

Assessed Value

The fair market value placed by the Commissioner of Revenue on personal and real property owned by County citizens. Real estate values are reassessed every four years.

Base Budget

A budget that shows how much it would cost in the next fiscal year to operate the same programs approved in the current year.

Basis of Accounting

The basis of accounting refers to the accounting method the County utilizes to recognize revenues and expenses.

Budget

A financial plan for operating the County using estimates of costs (expenditures) and proposed methods for offsetting those costs (revenues).

Budget Calendar

The County’s schedule of deadlines and events related to preparing and adopting the next year’s budget.

Budget Document

The County staff’s official report, which presents the proposed budget to the Board of Supervisors.

Budget Message

The County Administrator’s written synopsis of the proposed budget. This message analyzes budgeting issues and specific programs within the context of the County’s economic climate. In addition, it gives the County Administrator an opportunity to highlight certain noteworthy recommendations.

Capital Assets

Fixed assets with a value of at least $5,000 and an anticipated useful life of more than one year. Furniture and equipment are examples of fixed assets.

Capital Improvement Program

The County’s five-year plan for completing capital projects on an annual basis, with tentative beginning and ending dates for each, and anticipated costs and options for financing them.

GLOSSARY OF TERMS

Capital Projects

Large one-time construction projects or purchases that are expected to provide services to citizens over a period of time. Examples of capital projects are the construction of new schools, fire stations, etc.

Contingencies

Special monies set aside for unforeseen costs or emergencies, or for special purposes that may require further analysis.

Debt Service

The repayment of County debt, including principal and interest.

Expenditures

The cost of or payment for goods and services used in County operations.

FTE

Full Time Employee or Full Time Equivalent.

Fiscal Year

The County’s financial reporting year, which begins on July 1 and ends on June 30 of the next calendar year.

Function

An overall activity performed by a division or organization. The County’s budgets are divided into personal services, operations and maintenance, and capital outlay.

General Fund

The part of the budget that accounts for day-to-day operating expenses for the County, including dollars transferred from the General Fund for support of the School System.

General Obligation Bonds

A promise from County government to pay for bonded debt (essentially a loan) based on its full faith and credit or basic power to pay debts with tax revenue. These bonds are used to finance long-term projects through payments of principal and interest over a period of years.

Grant

A gift of assets, usually cash, by one source to another organization. The County receives most of its grants for specific projects or programs from the federal or state government. However, private foundations sometimes contribute funds to the County.

Proposed Budget

The initial budget prepared for and proposed to the Board of Supervisors by the County Administrator.

Revenue

Income or increased assets for a specific fund.

Tax Exempt Revenue Bonds

Under the lease revenue method, the County transfers a “lease hold interest” (the legal right to use the property) to the Economic Development Authority (EDA). The EDA then “leases back” these facilities and projects to the County for a term equal to the debt service term. The lease payments cover the debt service term. These issuances

GLOSSARY OF TERMS

are also structured with a Trustee, who must enforce all obligations. Consequently, the Trustee collects rental payments, pays bondholders, and monitors requisitions on the use of funds and issues checks to vendors from the proceeds.

Tax Levy

The total dollar amount of tax that should be collected based on existing tax rates and assessed values of personal and real properties.

Tax Rate

The level at which taxes are imposed or charged for certain property owned by citizens and businesses.

Unemployment Rate

The Virginia Employment Commission’s (VEC’s) report of persons who are actively filed as not holding, but are seeking, a job for which they would receive compensation. This does not include persons who have no job, but do not consult the VEC for job placement services.

Approved Budget for Fiscal Year 2024

REVENUE SUMMARY

Revenue Forecasting

Montgomery County’s general revenue forecast is developed based on past revenue trends, current revenue collections, and current and future local growth patterns. The County’s local economy, along with state and federal influences, contribute to the revenue picture. Budget staff, with data from the Commissioner of the Revenue and Treasurer offices, work throughout the year evaluating revenue trends, collection rates, and growth patterns to determine the revenue projection for the next fiscal year.

Local, state, and national economic conditions all influence the local fiscal environment. The County’s revenue structure, job base, and major economic contributors provide a strong foundation for sustained growth. Montgomery County is home to Virginia Tech, which is the second largest public university in Virginia. Virginia Tech is also the largest employer in the County, providing jobs for approximately 12,000 employees. Montgomery County is fairly unique in that Virginia Tech’s presence in the community provides a stable foundation for economic growth. However, even with the presence of a stable and large employer, the local economy remains heavily dependent on the broader state and national economies. These broader economies are some of the most important factors in predicting increased revenue growth, even at the local level.

The sudden onset of the pandemic in March of 2020 created a host of challenges for the economy and revenue forecasting. In March of 2020, the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, provided direct cash stimulus payments to individuals, as well as economic assistance to workers, businesses and state and local governments. In December of 2020, a second pandemic relief package provided direct cash stimulus payments to individuals, as well as economic assistance to workers and businesses. In March of 2021, the Federal Government passed the American Rescue Plan Act, a third round of legislation totaling $1.9 trillion, that provided additional direct aid, added unemployment benefits and $350 billion of aid to state and local governments.

As the government responded to the pandemic, the Federal Reserve (America’s Central Bank) decreased interest rates sharply to near zero and increased its balance sheet through Quantitative Easing (QE) to increase the money supply. Easy money, coupled with supply chain issues and increased demand for goods and services, have created inflationary pressure. Inflation started to rise in November of 2021 and has hit 40-year highs over the past year. To address this surge in inflation, the Federal Reserve began increasing interest rates in March of 2022. Since March, the Federal Reserve increased the Feds Fund Rate from near zero to a target rate of 4.5% to 4.75% (as of February 2023). This is the sharpest increase in recent history. Experts forecast that the Federal Reserve will increase interest rates to around 5% and then pause to see how inflation and the economy respond.

Economists are still struggling to predict the economic impact over the next year. Opinions vary on the economic outlook for 2023 and 2024. Most forecasts suggest the U.S. economy will enter a recession sometime in 2023. While some forecasts suggest a mild recession, others see a larger economic downturn. Monetary policy will have a large impact on how the U.S. economy will fare over the next two years. Higher interest rates will slow the economy and slower growth is expected. Higher interest rates will have a negative effect on Gross Domestic Product (GDP). Consumer spending and retail sales are slowing, as November and December sales fell for two straight months. On the positive side, the labor market is strong. If the economy avoids a recession, or only faces a mild recession, by 2024, the U.S. economy may be back on track to returning to steady growth and a lower inflation environment.

National Economic Outlook

The condition of the County economy is greatly affected by national and state economic conditions.

National Economic Outlook

Economists do expect a recession sometime in CY 2023. The Federal Reserve has stated that it will aggressively

adjust interest rates to tame inflation. The Federal Reserve’s response with its monetary policy will impact the broader economy – this could be positive or negative. If the Federal Reserve is able to achieve a “soft landing” with their monetary policy, continued economic growth is possible at a slower rate with lower inflation. This growth will depend on how the government, businesses, and consumers respond to fiscal policy changes.

Gross Domestic Product (GDP)

GDP is one of the broadest measures of the economy. This measure affects interest rates, fiscal budgeting, and U.S. monetary policy. According to the Bureau of Economic Analysis, the real GDP of the U.S. increased at a rate of 2.9% in the fourth quarter of 2022. In the third quarter, real GDP increased 3.2%. Analysts expect the economy to grow by -0.5% to 1.3% for 2023 and 0.3% to 2.2% for 2024. The ideal range for manageable GDP growth is in the 2% to 3% range.

Unemployment

The unemployment rate is a second measure of the broader economy and it is one that personally affects most Americans. According to the Bureau of Labor Statistics, the national unemployment rate for 2022 was 3.6%, down from 5.3% for 2021. Comparing the latest information, the unemployment rate for December 2022 was 3.3%, down from 3.7% in December 2021. Some economists estimate that the unemployment rate will be between 3.5% and 4.2% in 2023 and between 4.3% and 4.7% in 2024.

Inflation – Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure of inflation. The CPI is also a measure that personally impacts most Americans. Unlike recent years, where the U.S. experienced low inflation, the annual rate of inflation accelerated in 2021 and 2022 to a near 40-year high. In 2022, the percentage change (inflation rate) for the CPI was 8%, up from 4.7% in 2021. Comparing the latest information, the inflation rate for December 2022 was 6.5%, down from 7% in December 2021. High inflation rates mean that purchasing power is being degraded and the cost for goods and services are rising. It is the hope that the Federal Reserve’s policy changes will help curb inflationary pressures going forward. The inflation rate is estimated to remain high for the first part of 2023 and then taper by the end of the year. A strong labor market will likely take the Federal Reserve longer to bring down inflation. Economists are estimating that inflation could be around 2.8% to 4.5% by the end of 2023 and 1.9% to 2.5% by 2024. The Federal Reserve’s target range for inflation is 2%.

Housing and Auto Sales

The housing market weakened during 2022 and sales declined due to interest rate increases. Real estate prices are often linked to local economies; and housing prices and sales reflect that link. Most economists do not see major price declines in housing as were seen during the 2008 housing crisis, as fewer families will likely face the impact of interest rate increases. Housing shortages are still an issue, which will likely keep prices from falling dramatically. In markets where the link between income and housing prices become disconnected, analysts believe housing prices may fall more than in areas that are more stable. Analysts expect to see a slowdown in housing starts and a slowdown in new and existing home sales in 2023.

For the auto industry, an estimated 13.7 million new vehicles were sold in 2022 compared to approximately 15 million units in 2021; the lowest number reported since 2011. Limited new car supply resulted in less sales. Inventories are improving, and for 2023, forecasters estimate that U.S. auto sales could be between 14.6 and 14.8 million units. The biggest issue for the auto industry in 2021 and 2022 was low inventory. This low inventory boosted used car values nationwide. During 2022, however, used car prices started to fall as new car inventory began to stabilize and demand dropped. Late model used vehicle prices dropped 5% from their peaks and older used vehicle prices dropped 15%. Further declines in used car values are expected as new vehicle inventory reaches showroom floors.

State Economic Outlook

According to economists, Virginia’s economic outlook is consistent with national trends with the economy showing signs of slowing growth for 2023.

Virginia Unemployment

According to the Virginia Employment Commission (VEC), the unemployment rate for the Commonwealth of Virginia for 2021 was 3.9%, down from 6.2% in 2020. Comparing the latest information, the unemployment rate for December 2022 was 2.6%, down from 2.7% in December 2021. Like the U.S., unemployment rates at the state dropped as businesses reopened and citizens went back to work. State economists expect the unemployment rate to reach 4.6% in 2024, which is consistent with the national outlook.

State General Fund Revenues

State General Fund revenues for FY 22 rose by 16.3%. State General Fund revenue projections for FY 23 and FY 24 are expected to decrease by 9% and then increase by 2.3%. Sales tax collections are estimated to grow at 10% for FY 23 and 1.3% in FY 24.

Other State Funds

More than half of the State’s revenues are non-general fund revenues, which are designated funds earmarked for specific purposes. These funds include federal grants, institutional revenue, transportation funds, and Master Tobacco Settlement Agreement funds. Non-general fund revenues are expected to increase by 15.1% in FY 23 and increase by 1.2% in FY 24.

Local Economic Outlook

Like the U.S. and State economic outlooks, Montgomery County’s economic outlook is viewed with cautious optimism. The County’s unique qualities and job base provide a strong foundation for sustained growth. Local employment rates are consistent with state and federal trends.

According to the Virginia Employment Commission (VEC), the unemployment rate for Montgomery County for 2021 was 3%, down from 4.7% in 2020. Comparing the latest information, the unemployment rate for December 2022 was 2.3%, up from 2% in December 2021. Like the national and state trends, unemployment rates in Montgomery County dropped as businesses reopened and citizens returned to work. While the latest numbers show a slight increase, the local unemployment rate is still extremely low. The ideal unemployment rate is around 3% to 5%.

County Resources

Resources within the County budget are classified as either designated or undesignated.

• Designated Resources represent revenue accounts that are mandated for specific uses including:

• Support from the State Compensation Board for constitutional officers, court fees, fees for services and programs;

• Direct state aid for public assistance payments;

• State and federal funds for schools; and

• Support for human services programs.

• Undesignated Resources fall into two categories: undesignated revenue and fund balance. Undesignated revenue represents dollars which may be used in the budget at the Board’s discretion. These include property taxes, sales taxes, and similar local sources of revenue. Total budgeted revenue for FY 24 is $236.4 million with $102.1 million considered designated. Of this designated amount, $81.3 million or 79.7% is earmarked for schools. Undesignated revenue dollars that may be used in the budget at the Board’s discretion total $134.3 million. Of this amount, $58.4 million goes to the public schools for operations, and $22.7 million of the undesignated dollars support debt service costs for county and public school facilities.

Local Revenue Patterns and Growth for FY 24

Local revenue growth is heavily dependent on property taxes, especially the real estate tax, which is the County’s single largest local revenue source. Real estate revenues represent 60% of the County’s total undesignated revenue. Personal Property tax revenue (motor vehicles) is the County’s second largest local revenue source; it represents 15% of the County’s undesignated revenue. Sales and Use Tax is the third largest local revenue source; it represents 10% of the County’s undesignated revenue. Taken together, these three revenue sources account for 84% of the County’s undesignated revenue and represent the bulk of revenue growth the County experiences on a yearly basis.

FY 21 and FY 22 were dynamic years for County revenue. While it was expected that local government revenues would suffer significantly due to the ongoing effects of the pandemic, County revenue collections in total exceeded estimates in both years. Pent up demand, stimulus monies, and low interest rates fueled revenue growth. In FY 22, total undesignated revenue collections exceeded estimates by $6.5 million. Areas of strong growth were found in delinquent tax collections $2.1 million, sales tax collections $2.2 million, and $1 million in recordation taxes. All other categories of revenue exceeded estimates by $1.2 million.

In FY 23, the County is still experiencing growth in current revenues that are significantly above historical trends. This growth is due to inflation and changing economic conditions. While initially thought to be one-time in nature, sales tax collections are still strong. In addition, the County’s interest rate on investments increased from 0.36% to 4.15% in nine months; and delinquent taxes and recordation taxes are still strong, but trending downward from FY 22 highs. For FY 23, the County expects to exceed total undesignated revenue collections by $6.4 million. While the County expects to retain some of this growth going into FY 24, some of this additional revenue is likely to be one-time in nature.

The County is experiencing changing economic conditions as a result of not only the Federal Government’s response to the pandemic, but also the Federal Reserve’s response to rapid inflation. In the current year, rising interest rates, inflation, supply chain shortages, vehicle valuation changes, stock market overvaluation, and real estate at peak levels are all still issues that have yet to be completely resolved. While it is likely the U.S will enter into a recession at some point in 2023, it is the hope that the recession is mild and the Federal Reserve is able to create a soft landing. This budget and revenue projection only consider a mild recession and do not consider the impact of a major economic downturn. The County estimates that $4.1 million of the $6.4 million in additional FY 23 collections will be available for FY 24 expenditures. The Chart below shows a breakdown of the revenue by category:

Some of the FY 23 surplus is likely to be one-time in nature. Of the $6.4 million surplus in FY 23, $0.1 million is from additional real estate growth, $0.7 million is from additional motor vehicles sales and changes to public service corporation revenues, and $0.6 million is from delinquent property taxes. The County will retain both the additional real estate growth and motor vehicle growth going into FY 24. The County has a finite amount of delinquent tax available for collection; as these funds are collected, less revenue will be available for future year collections. The County expects to maintain $0.4 million of the $0.6 million going into FY 24 from this category. Sales tax collections have been significantly above the County’s normal trend for the past two years. It was thought

*Calculated in Millions

that these additional funds were one-time in nature; however, it appears that these funds can now be added to the base for FY 24. The County expects to collect an additional $1.7 million for FY 23 and retain $1.6 million for FY 24. The $0.1 million decrease in sales tax from the FY 23 estimated actual is due to a change in school age population estimates in the towns for FY 24. Interest earnings are up in FY 23 due to increased interest rates and provide $2.6 million in additional revenue over FY 23 estimates. The County expects to retain the $2.6 million in interest earnings for FY 24. Recordation taxes, which are tied to real estate transactions, while providing a $0.7 million surplus in FY 23, are expected to return to pre-2020 levels in FY 24. The rise in interest rates and a projected softening of the real estate market will likely cool the housing market going into FY 24. The County abolished the Merchants’ Capital Tax in FY 23 to take effect in FY 24. This reduces base revenue $1.5 million. All other categories of base revenue are expected to increase $0.2 million for FY 24. Overall, the County is estimating a FY 24 base revenue increase of approximately $4.1 million.

For FY 24, the County projects an increase of approximately $3 million in new undesignated revenue growth. This increase is made up of $2.2 million in new real estate construction, $0.5 million in personal property motor vehicles and all other personal property categories including public service corporation taxes, $0.2 million in sales tax, and $0.1 million in new cigarette tax revenues.

Total undesignated revenues are estimated to provide $7.1 million in new money for FY 24. General Fund designated revenues are estimated to increase by $1.1 million. Most of the designated increase is due to state/ federal designated funding for public assistance programs in Social Services ($0.3) million, fire and rescue soft insurance recovery revenue ($0.1 million), and for permanently adding the Victim Witness Grant to the County budget ($0.2 million). An additional $0.4 million is added for increased revenues from the state that supports a 7% across the board compensation increase for constitutional officers and their staff for FY 24, and $0.1 million added for all other designated revenue. Total County General Fund revenue growth for FY 24 is expected to be $8.2 million.

Real Estate Revenue (2023 General Reassessment)

Montgomery County is required by state code to reassess real estate at least once every four years. Real estate values totaling $9.1 billion on the 2022 land book (including land use) increased 32% and are now valued at $12.1 billion, due to the reassessment and 2023 new construction growth. New construction for the 2024 land book, based on building permit data, is estimated at $160 million bringing the 2024 land book value to $12.2 billion. State laws requires that, should the increase in values be above 1%, the locality must lower the tax rate to a revenue neutral rate. If the rate is not lowered to a rate less than or equal to a revenue neutral rate, the tax rate must be treated as a tax rate increase. The revenue neutral tax rate based on the 2023 General Real Estate Reassessment is 70 cents. The FY 24 approved budget includes a revenue neutral real estate rate of 70 cents.

Increased Real Estate tax dollars are comprised of:

Real Estate Values

Personal Property

Personal property tax collections are based on the 2022 tax book, which is the most recent documentation of assessment values. From this data, the 2023 values are estimated. In addition, prior year collection rates are used as predictors of future year collections. The rate of collection in FY 22 and FY 23 is used to estimate the rate of collection in FY 24. The tax rate for personal property categories is $2.55 per $100 of assessed value.

This category includes motor vehicles (the County’s second largest source of revenue), business furniture and fixtures, and computer equipment. FY 24 estimated taxes on motor vehicles total $19.7 million; business furniture and fixtures total $4 million, and computer equipment total $0.5 million.

Taxes on motor vehicles are estimated to grow by $1.6 million over the FY 23 estimate. Most of this growth is tied to the new vehicle sales ($1 million) and normal trend growth ($0.6 million). Business furniture and fixtures personal property revenue is expected to grow by $0.2 million, while personal computer equipment revenue is expected to stay flat. In total, personal property revenue categories are expected to provide $1.8 million in growth.

Personal Property (Motor Vehicles)

Auto Sales

New car registrations for CY 2022 were down 5% compared to CY 2021, while new truck registrations were down 12%. This resulted in a net decrease in new vehicle registrations of 10%, as 219 less vehicles were purchased in 2022 as compared to 2021.

Sales and Use Taxes

Montgomery County’s third largest category of undesignated revenues is sales and use tax. Sales and use tax is a consumption tax paid for sales of certain goods and services. For FY 22, the County collected $12.4 million. Collections were significantly above the County’s normal trend. Due to the uncertainty of this increase being a permanent increase, the County estimated $11.1 million for FY 23; however, as the year has progressed, sales tax collections are exceeding initial revenue projections. Collections to date for FY 23 project a revenue surplus in this category of $1.7 million. Based on trend analysis, the County is estimating $12.9 million for FY 24, which is $1.8 million more than the FY 23 estimate. This estimate includes base growth of $1.6 million and new growth of $0.2 million.

Other Categories of Undesignated Revenue

Historically, the County’s other undesignated revenues grow at a modest level annually. For FY 24, all other categories of undesignated revenue are expected to increase by $1.2 million. The County abolished the

Source: Virginia Automotive Dealers Association (vada.com)

Merchants’ Capital Tax in FY 23 to take effect in FY 24. This reduces base revenue by $1.5 million. Based on new valuations provided by the State Corporation Commission, Public Service Corporation Taxes are decreasing $0.4 million. The County expects machinery and tools revenues and mobile home revenues to decrease $0.1 million. Delinquent taxes are estimated to increase by $0.4 million based on trend and aircraft taxes are expected to stay flat. Added as a new revenue source for FY 23 for half a year, the cigarette tax revenue adds an additional $0.1 million for a full-year in FY 24. Due to changes in interest rates, the County’s interest on savings is increasing $2.6 million. All other categories of undesignated revenue in total are estimated to increase by $0.1 million.

Machinery and tools is a tax on businesses at $1.82 per $100 in value, which is assessed at 60%/50%/40%, depending on the number of years the asset has been owned. Over the last 17 years, revenue collections were relatively flat with only slight growth over the past nine fiscal years. The County estimates $3.2 million in collections for FY 23. The FY 24 estimate has been set at $3.2 million.

Machinery and Tool Revenue

Merchants capital is a tax on the value of inventory at $3.05 per $100 and is assessed at 20% of the actual value. From FY 07 to FY 19, merchant capital tax has been relatively flat providing $1 to $1.4 million in revenue. Since FY 20, slight increases have occurred as businesses have expanded. The County abolished the Merchants’ Capital Tax in FY 23 to take effect in FY 24. This reduces base revenue by $1.5 million.

State Budget: Local Impact

Over the past several fiscal years, the state has reduced the amount of funding provided to local governments. Public education, public safety, Constitutional Officers, local libraries, and other local services have all been affected. In many areas, the state has shifted the burden of revenue generation to local governments. For the Montgomery County Public School System, the State’s budget includes an additional $3,388,432 in new funding for general school operational needs. Additional state funding of $425,652 is estimated to support a 7% compensation increase for Constitutional Officers and their staff for FY 24.

County Tax Rates

The FY 24 approved budget decreases the real estate tax rate from last year’s approved rate of 89 cents to the revenue neutral rate of 70 cents (based on the County’s 2023 General Real Estate Reassessment). This represents a 19-cent tax rate reduction. All tax rates are per $100 of assessed value.

Real Estate Tax Rates

As the graph denotes, the FY 24 budget decreases the real estate tax rate from 89 cents to 70 cents. This is a 19-

cent tax rate reduction from the previous tax rate of 89 cents. The approved tax rate in FY 23 was 89 cents, which had been the rate for the past 10 years.

Real Estate Tax Rates

Fund Balance

No General Fund balance dollars have been used to balance the FY 24 budget.

Reserve Funds

Reserve funds are dollars set aside that are either not required for expenditure in the current year or are earmarked for a specific future purpose.

Why Do We Need Reserve Funds?

The financial health of a locality is determined based on its “operating position,” which refers to three factors:

• The County’s ability to balance the budget using current revenue (not using fund balance in the operating budget).

• The County’s ability to maintain reserves for emergencies (establishing reserve funds for specific purposes).

• The County’s ability to maintain sufficient cash to pay expenses on a timely basis (ensuring an adequate level of cash flow reserves).

Why Shouldn’t We Use Reserve Money to Balance the Budget?

These funds are “non-recurring.” The use of these funds can only be for items that do not require expenditures in future years (one-time-only expenses). These funds cannot be used for salary increases, additional personnel, or program expansion that recurs in future years. For example, if $1,000,000 of reserve monies were used in the budget to cover salaries, the next year there would be $1,000,000 worth of costs and $1,000,000 less money. The

County’s independent financial advisors have recommended a policy of maintaining undesignated fund balance between 10% and 12% of operating revenue.

The County maintains a number of specific reserve funds to respond positively to unforeseen circumstances, should they arise in the current year or the next year’s budget. The County’s primary reserve is the Cash Flow Reserve, which sets aside approximately $26 million or 11% of the total FY 24 Budget to ensure sufficient cash to pay the bills. Other reserve funds that the County maintains include, but are not limited to:

• Capital Reserve to support unanticipated capital needs not funded in the Capital Projects Fund;

• Landfill Post Closure Reserve to support potential costs associated with monitoring and remediation of closed landfills;

• Facilities and Maintenance Reserve to support unanticipated facility and general maintenance items;

• Technology Reserve for technology projects and infrastructure requirements necessary for these projects;

• Rainy Day Reserve to address major unanticipated financial issues;

• Line of Duty Reserve to provide funds for family members of employees that are injured or killed in the line of duty;

• Parental Leave Reserve to provide funds to cover additional staffing costs, such as overtime, for departments whose employees are on extended leave;

• Road Maintenance Reserve to earmark the County share of the Revenue Sharing Program; and

• Conservation Easement Reserve to support conservation easements and the County’s land use program.

Financial Policies

The Board of Supervisors adopted financial policies and goals to influence and guide the financial management of the County. The policies were adopted in March of 2000 and updated in October of 2015. The importance of adopting and following these policies include:

• Insulating the County from fiscal crisis,

• Enhancing the ability to maintain financial credit by achieving and maintaining the highest bond ratings possible,

• Promoting long-term financial stability by adhering to clear and consistent guidelines,

• Directing attention to the financial condition of the entire County rather than a single issue or area,

• Promoting coordination of long-term financial planning with daily operations, and

• Providing the Board of Supervisors and citizens a framework for measuring the fiscal impact of services provided against established guidelines.

See Revenue Summary, Appendix B for the specific policies.

Approved Budget for Fiscal Year 2024

REVENUE SUMMARY, APPENDIX A

Revenue Estimates

Approved Budget for Fiscal Year 2024

REVENUE SUMMARY, APPENDIX B

Financial Policies

Appendix B: Financial Policies

Capital improvement budget policies

1. The County will consider all capital improvements in accordance with an adopted capital improvement program.

2. The County will develop a five-year plan for capital improvements and update each annually.

3. The County will enact an annual capital budget based on the five-year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be calculated and included in capital budget projections.

4. The County will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

5. The County will use intergovernmental assistance to finance only those capital improvements that are consistent with the capital improvement plan and County priorities, and whose operating and maintenance costs have been included in operating budget forecasts.

6. The County will maintain all its assets at a level adequate to protect the County’s capital investment and to minimize future maintenance and replacement costs.

7. The County will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection a maintenance and replacement schedule will be developed and followed.

8. The County will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval.

9. The County will attempt to determine the least costly financing method for all new projects.

Debt policies

1. The County will confine long-term borrowing to capital improvement or projects that cannot be financed from current revenues except where approved justification is provided.

2. When the County finances capital improvements or other projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project.

3. Net debt as a percentage of estimated market value of taxable property should strive to be below 3.0% but not exceed 4.0%.

4. The ratio of debt service expenditures as a percent of governmental fund expenditures (General Fund plus School Operating Fund expenditures less the General Fund transfer to the School Operating Fund) should strive to be below 10% but not exceed 12%.

5. The County will review the 10-year tax supported debt and lease payout ratio on an annual basis, and intends to maintain the ratio at 60% over a five-year period, with the ratio being no less than 55% in any one year during the period.

6. The County recognizes the importance of underlying and overlapping debt in analyzing financial condition. The County will regularly analyze total indebtedness including underlying and overlapping debt.

7. Where feasible, the County will explore the usage of special assessment, revenue, or other self-supporting bonds instead of general obligation bonds.

8. The County will retire tax anticipation debt, if any, annually and will retire bond anticipation debt within six months after completion of the project.

9. On all General Fund support, debt-financed projects, the County will attempt to make a down payment of at least 5% of total project costs in the aggregate from current resources. The long-term goal is to annually designate a portion of General Fund cash for one-time capital projects.

Reserve policies

The County will establish an emergency reserve to pay for needs caused by unforeseen emergencies, including unanticipated expenditures of a nonrecurring nature, or to meet unexpected small increases in service delivery costs. This General Contingency will be budgeted at not less than 1.0% of the General Fund.

Unassigned fund balance at the close of each fiscal year should be at least 12% of the General Fund plus School Operating Fund revenues, excluding the General Fund transfer to the School Operating Fund. Should the County find it necessary to access these funds in an emergency situation the Unassigned Fund Balance would be allowed to fall below the target described above. Any appropriation which causes Unassigned Fund Balance to drop below 12% will occur only after the County Administrator presents to the Board of Supervisors a plan and timeline for replenishing the balance to a minimum of 12%.

Investment policies OVERVIEW

The Montgomery County Board of Supervisors recognizes that it is the explicit constitutional responsibility of the County Treasurer to invest County Funds in accordance with Virginia Law. It is the desire of the Montgomery County Board of Supervisors to provide the Treasurer with the most timely information in order to best execute the powers of the Treasurer’s Office. To that end, the following Investment Policies are intended as a guide for the Montgomery County Board of Supervisors to facilitate this relationship.

POLICIES

The County will attempt to provide a cash-flow analysis of all funds on a continuous basis. Disbursement, collection, and deposit of funds will be scheduled to insure maximum cash availability.

The County will develop an annual cash-flow budget for County Operations to be reviewed quarterly with the Treasurer.

Approved Budget for

Fiscal Year 2024

EXPENDITURE PLANS

COUNTY, VIRGINIA Revenue Sharing

Revenue Sharing

Board of Supervisors County Administrator

VOTERS

Deputy County Administrator/CFO

Budget Summary

About

Payments to the City of Radford as part of a revenue sharing agreement between the County and the City are budgeted here. Payments are equal to 27.5% of all revenue collected in the 177 Corridor and are made semiannually to the City of Radford.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $32,000 is Added for Revenue Sharing Funds with the City of Radford – The County has a revenue sharing agreement with the City of Radford. Payments are equal to 27.5% of all revenue collected in the 177 Corridor and are made semiannually to the City of Radford. Additional funds in the amount of $32,000 are added to cover the costs of the agreement based on increased Transient Occupancy, Sales and Meals taxes collected in the corridor.

COUNTY, VIRGINIA Board of Supervisors

VOTERS

Budget Summary

About

There are seven members of the Montgomery County Board of Supervisors, each elected from one of the seven geographic districts. The Board of Supervisors serves as the County’s legislative arm, with both administrative and legislative responsibilities. Terms are for four years; three or four seats are up for re-election each odd year.

Board of Supervisors

The Board sets the annual budget and local tax rates, enacts ordinances governing the County and its citizens, sets policies and oversees their administration. The Board also appoints members of various boards and committees, and adopts the County’s comprehensive land use plan and related ordinances.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA County Administration

VOTERS

County Administrator Administration

Emergency Services

Human Resources

Management and Budget

Public Information

COUNTY ADMINISTRATION

Budget Summary

COUNTY ADMINISTRATION

About

County Administration includes Administration, Emergency Services, Human Resources, Management and Budget, and Public Information. The County Administrator, appointed by and accountable to the Board of Supervisors, leads County operations.

Administration

The County Administrator guides and directs the day-to-day operations of County government under the authority of the Board of Supervisors and has ultimate responsibility for all phases of local government. The County Administrator is responsible for recommending policies and implementing programs for the Board of Supervisors, and for ensuring compliance with federal, state and local laws.

Emergency Services

The Emergency Services Department coordinates volunteer fire and rescue agencies throughout the County to provide emergency medical services (EMS) and fire response within Montgomery County. Emergency Services personnel participate in the Fire Rescue Commission and provide oversight of the regional radio cache. Staff members provide emergency management of critical incidents to include hazardous material response and mitigation. The department also provides leadership, management and oversight of the Montgomery County Fire and EMS Department.

Human Resources

Human Resources develops, recommends and interprets human resources policies for employees. Recruitment, selection, retention efforts and employee training programs, along with compensation and benefit programs, are managed through this office. The office also handles employee events, wellness initiatives including an on-site clinic, worker’s compensation, employee performance evaluations, incentive programs and employee service awards.

Management and Budget

The Management and Budget Office develops and administers the County’s budget and Capital Improvement Program (CIP). Budget staff perform budget and financial analysis, revenue forecasting, budget monitoring, program analysis, economic analysis, and special studies on County programs.

Public Information

Public Information is the primary resource for information about programs and services. The office encourages citizen input into the local government process and links residents, the news media, and other groups to County government.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• One-Time Funding Reduced from the Base Budget – A total of ($78,000) in funding is reduced in the Emergency Services Department. The funding supported the one-time purchase of a new truck for the new career staffed Montgomery County Fire-EMS agency.

• Base Human Resources Revenue Adjustments – The Human Resources Department provides assistance to the New River Valley Emergency Communications Regional Authority. The authority reimburses the County for these services. Based on actual collections in FY 22, and projected collections in FY 23 and FY 24, ($7,000) is reduced in base revenue for FY 24.

• Two Paramedics (Two FTEs) are Added to the Base Budget – In order to ensure effective EMS response to all citizens, the County began a career staffed agency in FY 22. Costs were added in the FY 23 budget that included six full-time paramedics and part-time wage funds for part-time paramedics. Due to difficulty in hiring and retaining part-time staff, two additional full-time paramedics were added during FY 23. The total cost of two additional positions is $146,074, which is offset by a corresponding base decrease in part-time wages. These positions have become part of the base budget for FY 24 and add two FTEs to the Emergency Services Department.

• Human Resources FTE Increase – The Human Resources Department has employed a parttime human resources clerk since 2017 who is responsible for Family and Medical Leave Act (FMLA) documentation, workers’ compensation, and normal administrative office duties. In order to provide adequate coverage and address increasing workload demands, this part-time non-classified position was converted into a classified part-time position off-cycle in FY 23. The total cost of the increase is $40,061. This FTE increase has become part of the base budget for FY 24 and adds 0.8 FTE to the Human Resources Department.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $1,358,681 is Added for Emergency Medical Services - Montgomery County has enjoyed a long and successful history of volunteerism within the various fire and rescue departments across the County. In recent years, areas of the County have followed national trends and been impacted by a decrease in volunteerism, while calls for service have continued to grow. In order to ensure effective EMS response to all citizens, after reviewing months of calls for service reports, response times, and various other aspects of the EMS system, the County began a career staffed agency in FY 22. Additional costs were added in the FY 23 budget that included adding six full-time paramedics and part-time wage funds for part-time paramedics. With this increase, EMS will be able to provide 24-hour/365-day coverage in areas of the County to supplement volunteer response.

To cover existing demands for EMS services, the following additions are included:

• $553,304 for eight FTE Emergency Medical Technician (EMT) positions,

• $357,080 for four FTE Field Supervisor positions,

• $448,297 for overtime and operating expenses.

• $100,000 in Soft Billing Insurance Recovery Revenue is Added to Emergency Services – To help offset the costs of providing career staffed EMS coverage within portions of Montgomery County, the County will initiate a soft billing fee for services program. The fee for services program will utilize a soft billing model where allowable charges for patient transports are billed to insurance providers. Patients are not liable for out of pocket payments as a part of the soft billing program.

MONTGOMERY COUNTY, VIRGINIA County Attorney

Board of Supervisors

VOTERS

County Attorney

Budget Summary

About

The County Attorney defends or brings actions in which the County and any of its boards, officials, departments, or employees is a party. This division also drafts and prepares County ordinances, leases, bonds, deeds and contracts in which the County is a party.

County Attorney

The County Attorney is appointed by the Board of Supervisors. The County Attorney represents and counsels the Board of Supervisors, County boards, commissions, departments, agencies, officials and employees on all legal and civil matters involving County government.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $14,000 is Added to Cover Indigent Burial Expenses – Additional funds are needed to cover expenses associated with indigent burial fees. $9,000 was originally provided in FY 23 for indigent burials, with an additional $20,000 added to the budget off-cycle for a total revised budget of $29,000. The average cost for indigent burials is $2,000.

MONTGOMERY COUNTY, VIRGINIA Finance

Board of Supervisors

County Administrator

VOTERS

Deputy County Administrator/CFO Finance

Budget Summary

FINANCE: 130

About

Finance is responsible for ensuring the integrity of public funds by developing and monitoring compliance with internal controls and financial policies and procedures. The division is responsible for payroll, accounts payable, risk management, and purchasing. Finance also provides County Administration with financial reports and performs billing, collection and customer service for the Public Service Authority (PSA). The division also provides financial services to the Economic Development Authority (EDA), the Metropolitan Planning Organization (MPO), the Montgomery County Regional Tourism program, the New River Valley Emergency Communications Regional Authority (911 Authority), and the MBC Development Corporation.

Finance

The Finance Department maintains accounting records related to the County’s financial system and prepares and distributes monthly expenditure reports. Finance also processes invoices for payment, payroll, and all state, federal and IRS earnings-related forms. In addition, the Finance Department performs billing, collection and customer service functions for the Public Service Authority.

Purchasing

The Purchasing Department assists County departments with purchases of $5,000 or more on an as-needed basis. Formal invitations for bid and requests for proposal are developed, issued and awarded in accordance with the Virginia Public Procurement Act. Purchase orders are issued upon award of the solicitations.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee collections in FY 23 and FY 24, an additional $5,000 is added to Finance’s base fee revenue for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $20,000 is Added to Cover Professional Services Fee Increases – Professional Services, including audit and actuarial fees, increase each year, with audit fees increasing 7% in FY 23. This increased funding will allow the County to maintain financial advisory, actuarial and audit services from reputable firms.

• $20,000 is Added to Lease Accounting Standard Fee Increases – Beginning in FY 23, the County was required to implement a new lease accounting standard. This required a significant increase in tracking of and accounting for lease expenses. Rather than add staff to comply with the requirements, software with an annual cost of $20,000 is added to the budget.

Board of Supervisors

County Administrator

VOTERS

Deputy County Administrator/CFO

Budget Summary

About

Insurance coverage for County buildings and their contents at replacement cost value, risk management consulting services and liability insurance for County officials are paid from this division. It also covers costs associated with the County’s Risk Management Plan.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $6,175 is Added for Insurance Premium Increases – Additional funding has been added to cover the cost of insurance premium increases. This increase is based on actual premiums in FY 23 and anticipated increases for FY 24.

MONTGOMERY COUNTY, VIRGINIA Information Technology

Information Technology

Board of Supervisors County Administrator

VOTERS

Deputy County Administrator/CFO

Budget Summary

About

Information Technology (IT) is responsible for the complete life-cycle support of the software applications and technology infrastructure used by County departments and offices. The IT department supports the computing technology and telecommunications in all County facilities.

Information Technology

IT supports over 100 systems and applications in a high availability, 24X7 environment and over 1,500 end-user devices, including PCs, laptops, printers, and phones.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Land Management Software and Associated Technology Fees are Transferred from Planning and GIS to Information Technology – In the past, $90,000 in land management software expenses and $22,000 in associated technology fee revenue for the maintenance of the land development office software suite was managed in the Planning and GIS Division. This software has been replaced. For better operational management and efficiency, the base expenditure funds of $90,000 and technology fee revenue of $22,000 are transferred to the Information Technology Division for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $40,000 is Added for Software Maintenance Service Contract Increases – $40,000 in additional funding is added in FY 24 to cover the license increases for GovSense and Oracle Net Suite for hosting and maintaining the County’s permitting software.

• $4,500 is Added for Computer Costs for New Positions – $4,500 in additional funding is added in FY 24 to cover the costs of providing computer hardware for new employees added to the FY 24 budget.

Commissioner of the RevenueCompensation Board

Commissioner of the Revenue

VOTERS

Compensation Board

Budget Summary

COMMISSIONER OF THE REVENUE

About

The Commissioner of the Revenue is an elected Constitutional Officer responsible for assessing the fair market value of all property, personal and business, subject to taxation and maintaining real estate ownership records. This division accounts for the costs shared between the County and the State Compensation Board.

Commissioner of the Revenue

The Commissioner of the Revenue Division assesses all tangible personal property in accordance with the Code of Virginia, verifies personal property data filed by taxpayers, calculates assessments and taxes, and issues the personal property tax book annually. It also assists taxpayers with filing state income tax returns.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Compensation Board Revenue Adjustments – A total of $1,664 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 23 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. These extra funds reconcile the County’s budget to the FY 23 approved Compensation Board budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $7,081 is Added to the Commissioner of the Revenue’s Compensation Board Revenue –These funds account for a 7% across the board salary increase included in the state’s budget for locally supported positions July 1, 2023. The Governor’s budget includes a 5% salary increase and both the State Senate Finance Subcommittees and the House Appropriations Subcommittees have added an additional 2% for a total of 7% for FY 24. Since the County is providing a 7% compensation increase to all County funded positions in FY 24, these funds provide additional revenue to the County. Each year, Compensation Board revenue is reconciled to the County approved budget when final numbers are received from the state.

Budget Summary

About

The Assessment division is responsible for maintaining real estate ownership records, including transfers of ownership recorded in the Circuit Court Clerk’s Office, assessing the value of real property, administering the land use program, and mapping of real property. The County provides 100% of the funding since real estate and personal property assessments are a primary focus of this division.

Assessing

The Assessing department, which reports to the Commissioner of the Revenue, maintains real estate ownership records, assesses the value of real property, administers the land use program, and mapping of real property. This department also administers the County’s real estate tax relief program for the elderly and disabled.

Land Use

The land use program provides for the deferral of real estate taxes on real estate that qualifies for agricultural, horticultural and forestry uses. It processes new and renewal applications, validates information provided on the applications, and calculates use values per crop yields and soil classifications.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $15,000 is Added for a Deed and Will Transfer Program – $15,000 is added in FY 24 to cover the cost of an annual contract subscription for software that will transfer real estate data based on information received from the Clerk of the Court and enter that data into the Commissioner of the Revenue’s asset management system. This deed and will transfer program will save at least 4 hours per day of staff time currently associated with deed reading, which will reduce the need for additional staffing as workloads increase.

Treasurer - Compensation Board

Treasurer

VOTERS

Compensation Board

TREASURER - COMPENSATION BOARD

Budget Summary

TREASURER - COMPENSATION BOARD

About

The Treasurer is an elected Constitutional Officer responsible for collecting all County revenue, submitting financial reports to the state and County, authorizing County disbursements, and cash management, which includes managing the County’s bank and investment accounts.

Treasurer-Compensation Board

This division accounts for the operational costs shared between the State Compensation Board and the County. The Treasurer Division also collects current and delinquent tax payments, motor vehicle license fees, issues dog tags, and collects and remits payments to the Commonwealth of Virginia for individual and business state income and estimated state income taxes.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Compensation Board Revenue Adjustments – A total of $18,882 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 23 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. These extra funds reconcile the County’s budget to the FY 23 approved Compensation Board budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

TREASURER - COMPENSATION BOARD

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $5,696 is Added to the Treasurer’s Compensation Board Revenue – These funds account for a 7% across the board salary increase included in the state’s budget for locally supported positions July 1, 2023. The Governor’s budget includes a 5% salary increase and both the State Senate Finance Subcommittees and the House Appropriations Subcommittees have added an additional 2% for a total of 7% for FY 24. Since the County is providing a 7% compensation increase to all County funded positions in FY 24, these funds provide additional revenue to the County. Each year, Compensation Board revenue is reconciled to the County approved budget when final numbers are received from the state.

Budget Summary

TREASURER - COLLECTIONS

About

The Treasurer is an elected official responsible for collecting all County revenue, submitting financial reports to the state and County, and authorizing County disbursements.

Treasurer-Collections

This division is funded solely by the County. Treasurer-Collections collects current and delinquent tax payments, motor vehicle license fees, issues dog tags, and collects and remits payments to the Commonwealth of Virginia for individual and business state income and estimated state income taxes.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $23,932 is Added to Cover Postage and Other Operating Increases – $15,700 is added in FY 24 to cover the increased cost of postage for the Treasurer’s office. An additional $8,232 is added in FY 24 to cover the increase in various operating costs for the Treasurer including training, dues and memberships, office supplies, and equipment costs.

MONTGOMERY COUNTY, VIRGINIA

Electoral Board / Director of Elections

Electoral Board

Director of Elections

ELECTORAL BOARD/DIRECTOR OF ELECTIONS

Budget Summary

ELECTORAL BOARD/DIRECTOR OF ELECTIONS

About

The office of the Electoral Board/Director of Elections provides registration and election services to eligible citizens of Montgomery County. These services include supporting and training individuals and groups holding registration drives; providing in-house and high school voter registration; maintaining the Virginia Election and Registration System (VERIS); purchasing, maintaining, testing, and loading ballots on voting machines; taking and processing photo IDs for voters who do not have one; and preparing and conducting fair elections within the guidelines of Virginia Elections Laws, including Officer of Election training, processing candidate filings and petitions, printing of ballots and processing absentee votes.

Electoral Board/Director of Elections

The Electoral Board/Director of Elections division is committed to providing each citizen of Montgomery County with the opportunity to exercise his or her right to vote in an efficient and equitable manner. The Director of Elections registers voters, maintains voting records, and manages elections by staffing polling locations for the County’s 25 precincts. The staff conducts elections, supervises poll workers on Election Day and tallies election results.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

ELECTORAL BOARD/DIRECTOR OF ELECTIONS

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Revenue Adjustments – A total of $36,462 is added to the base Director of Elections’ revenue budget. These funds account for the adjustment of revenues as reported by the State and reconciled to the FY 23 County approved budget. These extra funds reconcile the County’s budget to the FY 23 approved state budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $7,404 is Added to Cover the Cost of Office Equipment – The Registrar’s Office will be relocated outside the Government Center in FY 23. A new postage meter and electronic letter opener are needed for mailings and to assist in efficiently processing absentee ballots for local, State and Federal elections.

• $23,350 is Added for Maintenance Service Contract Increases – Additional funding is provided in FY 24 to cover the costs of the annual maintenance contract for all voting machines in the County.

Prosecution Collections

Commonwealth Attorney

VOTERS

Budget Summary

ATTORNEY : 162

About

The Commonwealth Attorney’s is an elected Constitutional Officer responsible for the prosecution of all felony and certain misdemeanor and traffic offenses within Montgomery County, including those occurring in the towns of Blacksburg and Christiansburg and on the Virginia Tech campus. Court is held five times per week in District Court, three to four times per week in Circuit Court and two to three times per week in Juvenile and Domestic Relations Court.

Prosecution

This department is responsible for trying cases in Circuit Court, two General District Courts and the Juvenile and Domestic Relations Court. Through the Victim Witness Program, the office assists victims and witnesses involved in the prosecution of these cases. The office advises citizens, law enforcement agencies and magistrates regarding the interpretation of criminal law.

Collections

The Collections department is responsible for the collection of delinquent fines and costs from Juvenile and Domestic Relations District Court, General District Court(s) and the Circuit Court. This entails collection of reports from the Clerk’s Office, preparation and mailing of collection letters for all fines/costs not paid within 40 days, generating reports and accounting procedures.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Compensation Board Revenue Adjustments – A total of $30,316 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 23 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. These extra funds reconcile the County’s budget to the FY 23 approved Compensation Board budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee collections in FY 23 and FY 24, ($55,000) is reduced from the Commonwealth Attorney’s base fee revenue for FY 24.

• Victim-Witness Grant Revenue Adjustment and Three Additional Positions (Three FTEs) are Added to the Base Budget – The Commonwealth Attorney receives $210,674 annually in grant funds to support the County’s Victim-Witness Program. In past years, the Victim Witness grant was appropriated after the budget was approved by the Board of Supervisors. The County has sponsored the Victim Witness Grant program through the Commonwealth Attorney’s office for over 26 years. This program provides extremely valuable assistance to the victims and witnesses of crimes by providing information and support throughout the court process. The FY 24 budget includes the revenue and expenditures associated with this program and brings the employees of the program onto the County’s Compensation and Classification Plan. If the grant funding was no longer available, the County would begin funding this necessary program. This change includes three additional FTEs to the Commonwealth Attorney’s Office.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $46,507 is Added to the Commonwealth Attorney’s Compensation Board Revenue – These funds account for a 7% across the board salary increase included in the state’s budget for locally supported positions July 1, 2023. The Governor’s budget includes a 5% salary increase and both the State Senate Finance Subcommittees and the House Appropriations Subcommittees have added an additional 2% for a total of 7% for FY 24. Since the County is providing a 7% compensation increase to all County funded positions in FY 24, these funds provide additional revenue to the County. Each year, Compensation Board revenue is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA Circuit Court

Budget Summary

About

Circuit Court with two resident judges is the trial court of broadest powers in the County and handles all civil cases with claims of more than $25,000. It shares authority with the General District Court to hear matters involving claims between $4,500 and $25,000. The Circuit Court also hears all serious criminal matters involving felonies, handles family matters including divorce, and hears cases appealed from the General District Court and the Juvenile & Domestic Relations District Court. The County provides general operating expenses for each judge, funding for a legal assistant, and office furnishings for the staff.

Circuit Court

The Circuit Court is the principal trial court of the state and have both original and appellate jurisdiction.

Juries

This department provides basic operating expenses for jury services, including juror and witness compensation.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA

General District Court

VOTERS

General Assembly General District Court

GENERAL DISTRICT COURT

Budget Summary

GENERAL DISTRICT COURT

About

The General District Court hears criminal, traffic and civil cases, misdemeanor cases, and preliminary felony cases. The division has exclusive original jurisdiction over any claim not exceeding $4,500 and has concurrent jurisdiction with the Circuit Court over any claim from $4,500 to $25,000. Both totals exclude interest and attorney’s fees; however, claims, counter-claims and cross-claims filed in actions for unlawful detainer are not subject to the maximum jurisdictional limit of $25,000.

General District Court

This division is responsible for ensuring that all policies and procedures are complied with as established by the Supreme Court. The General District Court holds court four days a week and staffing is comprised of a clerk and 10 deputy clerks.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA

Juvenile and Domestic Relations Court

VOTERS

Juvenile and Domestic Relations Court

Juvenile and Domestic Relations Court Court Services

General Assembly

JUVENILE AND DOMESTIC RELATIONS COURT

Budget Summary

JUVENILE AND DOMESTIC RELATIONS COURT

About

The Juvenile and Domestic Relations Court has jurisdiction over all proceedings involving minors, children in need of services, and children who have been abused or neglected. This division also provides probation, counseling and rehabilitation services to children and their families.

Juvenile and Domestic Relations Court

This court hears cases involving adults accused of child abuse, abandonment of children, child support and visitation, custody disputes, offenses against family members, delinquency petitions, and traffic violations. This court provides entrustment agreements, court-ordered rehabilitation services, and court consent for certain medical treatments.

Court Services

Court Services provides probation services for the County’s Juvenile and Domestic Relations Court. The office conducts predisposition reports, processes intake complaints, and maintains an average daily population of 75 juveniles on probation. Office personnel consists of seven probation officers, one secretary and one probation supervisor.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA Magistrate

VOTERS

General Assembly Courts

Magistrate

Budget Summary

About

The Magistrate’s Office provides judicial services for the 27th Judicial District within Region 1. Magistrates possess regional authority and assist all districts within Region 1, which consist of the 27th, 28th, 29th, and 30th Judicial Districts. The Magistrate’s Office operates 24 hours a day, 7 days a week.

Magistrate

The Executive Secretary of the Supreme Court of Virginia appoints magistrates. The Magistrate’s Office conducts probable cause hearings to determine the issuance of arrest warrants, summonses, search warrants, temporary detention orders, emergency custody orders, emergency protective orders, and civil processes. Magistrates also conduct bail hearings to determine release or commitment to jail. Magistrates can accept prepayments for certain traffic infractions and pre-payable misdemeanor offenses.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA

Clerk of the Circuit Court

VOTERS

Clerk of the Circuit Court

Budget Summary

CLERK OF THE CIRCUIT COURT

About

The Clerk of the Circuit Court is an elected Constitutional Officer who serves as the record keeper for the County. This division serves as the repository for the Court’s records, a clearinghouse for court information, and is also responsible for maintaining records for all bench and jury trials.

Clerk of the Circuit Court

Clerk of the Circuit Court Division issues concealed handgun permits, subpoenas, processes court orders and collects court fees. Divorces, adoptions, legal name changes, deeds, deeds of trusts, land plats, and assignments are recorded in this office. Other public services include issuing marriage licenses, passports, notary applications; assisting with genealogy research; entering judgments; probating wills and qualifying estate executors; and scanning and imaging of documents. Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Compensation Board Revenue Adjustments – A total of $26,734 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 23 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. These extra funds reconcile the County’s budget to the FY 23 approved Compensation Board budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include

normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $26,528 is Added to the Clerk of the Circuit Court’s Compensation Board Revenue – These funds account for a 7% across the board salary increase included in the state’s budget for locally supported positions July 1, 2023. The Governor’s budget includes a 5% salary increase and both the State Senate Finance Subcommittees and the House Appropriations Subcommittees have added an additional 2% for a total of 7% for FY 24. Since the County is providing a 7% compensation increase to all County funded positions in FY 24, these funds provide additional revenue to the County. Each year, Compensation Board revenue is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Sheriff - Compensation Board

VOTERS

Sheriff Compensation Board

Civil and Court Security Field Operations

Jail Block

Jail Operations

SHERIFF - COMPENSATION BOARD

Budget Summary

SHERIFF - COMPENSATION BOARD

About

This division is designed to show the costs shared between the state and the County for operations of the Sheriff’s Office. The Montgomery County Sheriff’s Office safeguards life, liberty and property, and maintains civil order. The Sheriff’s Office provides uniformed patrols, civil process service, corrections and courthouse security; and conducts motor vehicle accident investigations and criminal investigations.

Civil and Court Security

The Civil and Court Security department’s responsibilities include service of civil process such as asset levies and seizures, and sale of those assets. Security of the Courthouse and surroundings is also maintained by this division.

Dispatching

Dispatching functions have been moved to the New River Valley Emergency Communications Regional Authority.

Jail Block

This is the jail per diem sent to the County by the State for the housing and care of inmates. Funds are based on the number of inmates housed and the charges placed against them and/or their sentence. All funds are used to operate the jail as mandated by the Code of Virginia.

Jail Operations

This department provides for the care and security of jail inmates. Educational, recreational and medical services are provided to those inmates requesting and/or needing them. Daily logs are kept on various duties, such as checking on each inmate two times each hour and transporting inmates to other jurisdictions and courts. The number of inmates housed in the jail must be maintained and reported to the state.

Field Operations

Field Operations’ duties include patrolling the County, responding to citizen calls for service, crime prevention, state criminal and traffic law enforcement, County ordinance enforcement, life and property protection, peace preservation, and criminal apprehension.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Compensation Board Revenue Adjustments – A total of $26,054 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 23 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. These extra funds reconcile the County’s budget to the FY 23 approved Compensation Board budget that contains a prorated 5% increase for locally supported positions on August 1, 2022, and annualizes that 5% for a full 12 months for the FY 24 base budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $339,840 is Added to the Sheriff’s Compensation Board Revenue – These funds account for a 7% across the board salary increase included in the state’s budget for locally supported positions July 1, 2023. The Governor’s budget includes a 5% salary increase and both the State Senate Finance Subcommittees and the House Appropriations Subcommittees have added an additional 2% for a total of 7% for FY 24. Since the County is providing a 7% compensation increase to all County funded positions in FY 24, these funds provide additional revenue to the County. Each year, Compensation Board revenue is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Sheriff - County

VOTERS

Sheriff County

Civil and Court Security Jail Operations

Criminal Investigations Field Operations

Civil & Court Security Police Training Academy Support Services

Civil & Court Security

Civil & Court Security

Inmate Litter Pickup Program

Western VA Regional Jail

Budget Summary

SHERIFF - COUNTY

About

The Montgomery County Sheriff’s Office safeguards life, liberty and property, and maintains civil order. The Sheriff’s Office provides uniformed patrols, civil process service, corrections and courthouse security; and conducts motor vehicle accident investigations and criminal investigations.

Civil and Court Security

The Civil and Court Security department’s responsibilities include service of civil process such as asset levies and seizures, and sale of those assets. Security of the Courthouse and surroundings is also maintained by this division.

Dispatching

Public Safety Answering Point (PSAP) functions are now handled by the New River Valley Emergency Communications Regional Authority.

Jail Operations

This department provides for the care and security of jail inmates. Educational, recreational and medical services are provided to those inmates requesting and/or needing them. Daily logs are kept on various duties, such as checking on each inmate two times each hour and transporting inmates to other jurisdictions and courts. The number of inmates housed in the jail must be maintained and reported to the state.

Field Operations

Field Operations’ duties include patrolling the county, responding to citizen calls for service, crime prevention, state criminal and traffic law enforcement, County ordinance enforcement, life and property protection, peace preservation, and criminal apprehension.

Police Training Academy

To meet the standards of the Department of Criminal Justice Services and state training requirements, the academy provides for basic training, re-certifications, and other specialized training as required.

Wireless 911

The state mandates that localities provide Wireless 911 services, and the Virginia Wireless Board supplements funding for Wireless 911. The New River Valley Emergency Communications Regional Authority assumed these duties July 2016.

Support Services

The Support Services department provides administrative and operational support services to all other departments within the Sheriff’s Office. Responsibilities include grants, accreditation, public presentations/ community events, Drug Abuse Resistance Education (D.A.R.E.), school resource officers, training, policy/ procedure, media relations, public information, uniform/equipment acquisition, website management, planning, Citizen’s Police Academy, and the Project Lifesaver program.

Criminal Investigations

The Criminal Investigations department investigates complex cases involving traditional and non-traditional criminal conduct, including but not limited to organized crime, misuse of public funds, fraud, consumer fraud, crimes against persons including murder, rape, robbery, crimes against property, narcotics and other crimes.

SHERIFF - COUNTY

Inmate Litter Pickup Program

This covers the cost of overtime for a deputy to supervise the Inmate Litter Pickup Program to clean litter from County roads.

These are services paid for by outside entities such as Virginia Tech, U.S. Forest Service and the U.S. Marshals.

Western VA Regional Jail

The County is a participant in the Western Virginia Regional Jail (WVRJ) in Roanoke County, Virginia. The WVRJ facility has 805 general population beds and can be expanded to hold an additional 649 inmates. The regional jail serves Montgomery, Franklin and Roanoke counties and the City of Salem.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Two School Resource Officers (Two FTEs) are Added to the Base Budget – $159,740 and two FTEs were added off-cycle in FY 23 for two additional School Resource Officers. These positions have become part of the base budget for FY 24 and add two additional FTEs to the Montgomery County Sheriff’s Office.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee

collections in FY 23 and FY 24, an additional $30,000 is added to the Sheriff’s base fee revenue for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $112,510 is Added for a Body Camera Contract – Additional funding has been added to cover the cost of an existing contract for body cameras. The Sheriff entered into a new contract agreement for body cameras at cost of $187,284. The Sheriff’s base budget only supports $74,774. $112,510 is required in additional funds.

• $120,000 is Added for Gasoline – Additional funding in the amount of $120,000 has been added to cover the increase in fuel costs due to the size of the Sheriff’s fleet and rising gasoline and diesel prices.

• $101,400 is Added for Motor Vehicles and Equipment Costs – Additional funding has been added to cover the increased cost of motor vehicles. In order to maintain the County’s fleet of law enforcement vehicles, the Sheriff replaces 5 vehicles per year. Based on the increased cost of new vehicles, the Sheriff’s base budget of $190,000 only supports the replacement of 3 vehicles. The additional $101,400 provides the Sheriff with the resources to replace 5 vehicles at current vehicle prices.

• $228,813 is Added for Three School Resource Officers (3 FTEs) – $228,813 and three FTEs are added to Sheriff’s Office to cover the cost of three School Resource Officers for schools in the Town of Christiansburg.

• $65,000 is Added for a Two Part-time Community Resource Officers (One FTE) – $65,000 and two part-time Community Resource Officers (one FTE) are added to the Sheriff’s Office to provide law enforcement support at the Government Center. These positions will provide coverage at the Government Center along with supplementary coverage for off-site facilities to include meetings and special events being held within County facilities. These positions will also assist Planning/Zoning officials with site visits, follow-up on certain zoning complaints, and work with code enforcement as needed.

MONTGOMERY COUNTY, VIRGINIA

Fire Departments and Rescue Squads

VOTERS

Board of Supervisors

Fire and Rescue Commission

Fire Departments

Rescue Squads

Blacksburg Fire Department

Christiansburg Fire Department

Elliston Fire Department

Long Shop McCoy Fire Department

Riner Fire Department

Blacksburg Rescue Squad

Civil & Court Security

Christiansburg Rescue Squad

Long Shop McCoy Rescue Squad

Civil & Court Security

Riner Rescue Squad

Civil & Court Security

FIRE DEPARTMENTS AND RESCUE SQUADS

Budget Summary

FIRE DEPARTMENTS AND RESCUE SQUADS

About

The County provides funding for the four volunteer fire departments and the five volunteer rescue squads that deliver emergency services to citizens.

Retirement and Insurance

The County has coverage for fire and rescue members which includes accident and sickness, workers compensation, life insurance, and retirement benefits.

Fire Departments

Fire departments provide volunteer fire services to County and town residents. The Virginia Department of Fire Programs’ basic training for firefighters involves a minimum of 192 hours, which includes 160 hours of Firefighter Level 1 training and 32 hours of hazmat training. This does not include the in-house training required to operate the equipment of individual departments.

Rescue Squads

Rescue squads provide volunteer rescue services to County and town residents. The Virginia Department of Health’s Office of Emergency Medical Services and local squads offer training for squad members. The Emergency Medical Technician (EMT) is required to complete a minimum of 154 hours of training, enhanced rescue members have 256 hours of training, the intermediate rescuer has 528 training hours and paramedics have a minimum 781 training hours. This prepares rescue squad volunteers to provide basic emergency medical care and transportation for patients. Local squads require volunteers to answer calls at will and on assigned call nights.

Regional Fire and Rescue Training Center

The Regional Training Center is available to all agencies in Montgomery County as well as Floyd, Giles and the Radford Army Ammunition Plant Fire Departments. The Training Center property is owned by the Blacksburg Fire Department Foundation with a 25 year lease to Montgomery County. All buildings on site have been purchased through private donations and grants, and the County insures the property. The Town of Christiansburg and the Town of Blacksburg provided labor and equipment for site development. Volunteer fire personnel constructed training aids such as a maze, ladder tower, and ventilation simulator for use at the center.

Key Performance Indicators

FIRE DEPARTMENTS AND RESCUE SQUADS

Fire and Rescue Operating Budgets

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• $963,848 is Included for Fire and Rescue Operations – As part of this year’s base budget process, the Fire and Rescue Commission distributed $6,200 in base funding to cover Fire and Rescue one-time budget requests for FY 24 for Elliston Fire Department. $2,145 remains unallocated to be distributed by the Fire and Rescue Commission at a later date. In addition, $106,033 in base funds for Shawsville Rescue Squad have been removed from the base budget as Shawsville Rescue Squad has dissolved.

FIRE DEPARTMENTS AND RESCUE SQUADS

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $4,300 is Added for Basic Utility Cost Increases – Additional funding has been added to cover the cost of basic utility increases at the Fire and Rescue Training Center. This increase is based on actual costs in FY 23 and anticipated increases for FY 24.

• $10,000 is Added for Insurance Premium Increases – Additional funding has been added to cover the cost of insurance premium increases. This increase is based on actual premiums in FY 23 and anticipated increases for FY 24.

VIRGINIA

Animal Care and Adoption Center

Board of Supervisors

County Administrator

VOTERS

Assistant County Administrator

Animal Care and Adoption Center

ANIMAL CARE AND ADOPTION CENTER

Budget Summary

ANIMAL CARE AND ADOPTION CENTER About

The Animal Care and Adoption Center, which opened in 2017, combines animal care and recreation services. Located on five acres along Cinnabar Road near the County’s Frog Pond recreational area, the 16,300 square foot Center’s primary goal is to increase animal adoptions by expanding visitation and maximizing visibility through attractive design, in a recreational setting. The Center represents a transition from a traditional pound facility to a community hub for companion animal resources and leisure time events. Donations and County dollars support the Center and its staff.

Animal Care and Adoption Center

The Center offers educational tours and classes, vaccination and spay/neuter clinics, pet training classes, animal demonstrations, outdoor events and other leisure time activities. Long range plans include integrating the Center with a dog park and walking trails connecting the Frog Pond, picnic shelters, and disc golf course, making the entire area a recreation destination.

Animal Care and Adoption Center-Donations

Donations support 15% of the facility and staffing costs to operate the Center.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

ANIMAL CARE AND ADOPTION CENTER

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee collections in FY 23 and FY 24, ($10,000) is reduced from the Animal Care and Adoption Center’s base fee revenue for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• ($43,527) is Reduced from the ACAC’s Donation Revenue Budget – This adjustment reflects an estimated reduction in donations. Specific donations have been made since the Center’s inception in 2017 to help fund initial operations, with a plan that these donations would gradually be reduced over time. These donations are expected to decrease over the next four years. The Center continues to receive generous community support through various donations of funding, supplies and volunteer labor.

• $30,519 is Added to Convert One Part-time Nonclassified Office Technician to One Full-Time Classified Office Technician (One FTE) – The ACAC has been unable to find long-term part-time office technician help. As a result, the center is operating under a constant staff shortage. By reclassifying the part-time office technician to a full-time position, the County will be able to stabilize team staffing, scheduling challenges and provide a more consistent level of care to the animals.

MONTGOMERY COUNTY, VIRGINIA

General Services

VOTERS

Board of Supervisors County Administrator

Deputy County Administrator/CFO

General Services

Administration

Housekeeping

Motor Pool

Animal Control

Inspections

Solid Waste Collections

Buildings and Grounds

Centralized Maintenance Garage

Lawns and Landscaping

Litter Control

Mid-County Landfill

Stormwater Management Thompson Landfill

GENERAL SERVICES

Budget Summary

GENERAL SERVICES

About

General Services division is responsible for auxiliary and operational support services for all County divisions. Services are provided through Administration, Animal Control, Buildings and Grounds, Centralized Maintenance, Housekeeping, Lawns and Landscaping, Litter Control, and Solid Waste Collection. The division also oversees Internal Services, Engineering, Stormwater, Landfills, and Inspections.

Administration

This department manages administrative functions for the division.

Animal Control

Animal Control enforces County ordinances and state laws relating to animals, including impounding stray dogs, investigating livestock deaths due to animals, quarantines for animals involved in bite cases, and investigating animal cruelty. It also maintains the safety of the public as it pertains to animal ordinances and educates the public about animal laws and welfare.

Buildings and Grounds

Buildings and Grounds is responsible for the preservation of County facilities. It maintains 38 County buildings and facilities, eight recreational parks and two industrial parks, and provides general labor support for repair and remodeling projects.

Centralized Maintenance

Centralized Maintenance funds one-time projects such as emergency repairs that are not generally funded through the operational budget due to their nature.

Garage Operations

Garage Operations provides efficient repairs, services, inspections and maintenance of about 187 County vehicles, including the sheriff’s fleet.

Housekeeping

The Housekeeping department provides custodial services to ensure the cleanliness and safety of 11 County facilities, which is approximately 400,000 square feet of space.

Inspections

Inspections is responsible for the enforcement of the Uniform Statewide Building Code to protect health, safety and welfare of citizens.

Lawns and Landscaping

Lawns & Landscaping is responsible for maintaining 159 acres of property, including landscaping services, tree trimming and grass cutting. It also assists in maintaining recreational facilities, including the Motor Mile Complex, Plum Creek ballfields, Auburn ballfields, and the both new and old Shawsville elementary school ballfields.

Litter Control

Litter Control manages the annual roadside waste clean-up, hazardous waste collection and annual latex paint exchange. It also works in conjunction with the towns of Christiansburg and Blacksburg, and Virginia Tech to maintain litter control efforts within the County.

Motor Pool

The Motor Pool provides a centralized pool of County owned vehicles for use by County divisions while conducting County business.

GENERAL SERVICES

Solid Waste Collections

Solid Waste Collections provides 10 consolidated sites where residents may dispose of household trash, bulky items and recyclables.

Stormwater Management

This department implements and ensures regulation and permit compliance with the County’s Stormwater Management ordinance and the Municipal Separate Storm Sewer System (MS4) permits. Stormwater regulations protect water quality from harmful pollutants that can accumulate when rain and snowmelt flow over impervious surfaces (streets, parking areas, buildings, etc.). When heavy or prolonged rains saturate the ground surface, runoff is channeled into storm sewers that ultimately end up in streams, creeks, rivers and the ocean. This department also administers policies, procedures and respective fee schedules related to stormwater compliance, and reviews erosion and sediment control plans prior to issuing land disturbing permits, prepares reports for the Virginia Department of Environmental Quality, and responds to citizen concerns about stormwater drainage issues.

Thompson and Mid-County Landfills

The Thompson and Mid-County Landfills were closed in 1993 and 1997, respectively. State and federal laws and regulations required the County to perform groundwater monitoring and mitigation, in 2013 the Department of Environmental Quality required an additional 10 years of monitoring landfills.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $230,835 is Added for Increased Cost of Operations Due to Inflation –Based on increased costs in FY 23 and anticipated costs in FY 24, additional funding is needed for various categories: preventive maintenance service contracts for County facilities provided by third-party vendors ($64,000); heating and electric costs ($60,000); agricultural supplies ($19,000); gasoline and stock diesel ($87,835).

• $134,000 is Added for Tipping Fee Costs – Based on actual usage in FY 23 and anticipated fee increases by the Montgomery Regional Solid Waste Authority (MRSWA) in FY 24, $134,000 in additional funding is necessary to cover tipping fee costs.

• $67,000 is added for Operating Costs of the New County Garage – In the spring of 2023, renovations for the new County garage will be completed. This new facility requires additional operating expenses for FY 24. These costs include $12,000 for maintenance service contracts, $49,000 for utilities and $6,000 for repairs. These costs are net increases above the County’s existing costs at the old County garage.

GENERAL SERVICES

• $16,760 is Added for Fleet Management Software – Funding has been added to cover the cost of new fleet management software for the County Garage. This software will allow more efficient record keeping and tracking of routine and special services performed on County vehicles.

• $128,000 is added in Additional Operating Costs for the New Registrar Building Leased Space – In the spring of 2023, renovations for the new County Registrar Building leased space will be completed. This newly leased facility requires additional operating expenses including lease expense of $90,000, utilities of $32,000, and maintenance of $6,000.

• $54,869 is Added for a Groundskeeper Position (One FTE) – The expansion of Creed Field Park and development of Auburn Park increases the required area for mowing from 133 acres to 173 acres. With a full-time staff of only four people in the Lawns & Landscaping Department, this 30% increase in the area mowed across County properties requires an additional Groundskeeper position. The total cost of the increase is $54,869. This increase adds one FTE to the Lawns & Landscaping Department.

• $54,869 is Added for a Housekeeper Position (One FTE) – The increase in number and size of County facilities has created demand for an additional Housekeeper position. The newly constructed County Garage/Shop and PSA facilities (16,663 SF) combined with the newly leased space for the Registrar (8,300 SF) adds approximately 25,000 SF more space for housekeeping. The total cost of the increase is $54,869. This increase adds one FTE to the Housekeeping Department.

• $79,583 is Added for a Land Disturbance Inspector (One FTE) – $79,583 and one FTE are added to the General Services Division. Due to increases in development, permits, inspections, and code enforcement in the County, additional inspection staffing is necessary. This position will provide the needed support to address compliance requirements under the MS4 Program and will address erosion and sediment control and storm water regulatory compliance.

VIRGINIA

Children’s Services Act

VOTERS

Board of Supervisors

County Administrator

Assistant County Administrator

Human Services

Children’s Services Act

CHILDREN’S SERVICES ACT

Budget Summary

CHILDREN’S SERVICES ACT

About

The Children’s Services Act for At-Risk Youth and Families (CSA) was established by the General Assembly to improve coordination, eliminate duplication of services and ensure that costly residential care is provided only in cases where it was clearly warranted. The law requires localities to establish Community Policy and Management teams, and Family Assessment and Planning teams to administer the program. The law also mandates that certain groups of children receive services, primarily special education and foster care. The County is required to provide a local match for all expenditures.

Children’s Services Act

The Community Policy and Management Team (CPMT) is responsible for developing policies, managing funds allocated to the County, and authorizing expenditures of these funds. CPMT is comprised of at least one elected or appointed official and agency heads from the local Department of Social Services, school system, Community Services Board (mental health) and the Court Services Unit (juvenile justice), a parent and a private provider. Each CPMT must also establish and appoint at least one Family Assessment and Planning Team (FAPT) to work with families to develop an individualized family service plan or plan of care based on the strengths and needs of the family.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

MONTGOMERY COUNTY, VIRGINIA Human Services

VOTERS

of Supervisors County Administrator

Assistant County Administrator

Human Services

Alternative Community Programs Human Services

Retired Senior Volunteer Program

Board

Budget Summary

About

Human Services division administers the Alternative Community Program, Human Services, Retired and Senior Volunteer Program (RSVP), Virginia Juvenile Community Crime Control Act (VJCCCA) and the Children’s Services Act (CSA).

Alternative Community Programs

This department provides court-involved youth programs that include juvenile community service, home confinement, and home electronic monitoring.

Human Services

The Human Services department keeps citizens, agencies and County government informed about services and programs in the areas of human service delivery. They also examine youth issues and administer the VJCCCA programs.

Retired Senior Volunteer Program

Retired and Senior Volunteer Program (RSVP) invites adults age 55 and over to use their life experience and skills to participate more fully in the life of their community through significant volunteer service. RSVP acts as a clearinghouse to match volunteers’ interests and skills with agencies and organizations that need assistance while providing opportunities that promote independence and an active lifestyle.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Fee Revenue Budget Adjustments – Beginning in FY 24, the County will no longer participate in the Retired Senior Volunteer Grant program. This federal grant provides $56,043 annually and requires a significant amount of staff time to ensure compliance, while restricting the scope of the program. The County will begin funding the program, continue all services currently provided for the seniors of the County, and gradually expand volunteer programs to include additional participants and initiatives. As a result, ($56,043) is reduced from the Human Services base fee revenue for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

New River Health District

VOTERS

General Assembly

Governor

Secretary of Health and Human Services

State Department of Health

New River Health District

Budget Summary

NEW RIVER HEALTH DISTRICT

About

The New River Health District, one of the Virginia Department of Health’s (VDH) 35 health districts, is comprised of Floyd, Giles, Montgomery and Pulaski counties and the City of Radford. The district’s environmental health program provides site evaluation and permits for on-site sewage disposal (septic systems) and wells, inspection of restaurants, schools, day care centers, summer camps and festivals to ensure food safety, rabies investigation and follow-up, and general environmental complaint investigations.

New River Health District

The Health District provides services in local health department clinics, schools, homes and at other sites in the community to prevent and control the spread of contagious diseases, including child and adult immunizations, immunizations for overseas travel, well baby care, and family planning. Other services include provision of the Women, Infants and Children (WIC) program, distribution of free car safety seats to eligible families, Resource Mothers Program and health education services.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $14,014 is Added for Local Matching Requirements – The New River Health District is funded on a formula basis with costs shared between the state and the County. The County’s share is 35.77% and the state’s share is 64.23%. This increase in funding is required to meet the County’s local commitment for FY 24.

COUNTY, VIRGINIA Social Services

VOTERS

Board of Supervisors

Social Services Board

Social Services

Budget Summary

About

The Department of Social Services (DSS) division assists families and individuals in becoming socially and economically self-sufficient and independent. Benefit programs include temporary assistance for needy families, food assistance, Medicaid, energy assistance, general relief, fraud prevention and children’s medical security insurance. DSS works closely with other community agencies to promote the stability and self-sufficiency of community families through referrals to services not available in this agency. It also promotes the creation of services not currently available in the community. The agency works to avoid duplication of services provided by other agencies and to respond to needs not currently addressed in the community.

Social Services

Social Services assists in work programs including adoption, adult services/adult protective services, child protective services, day care services for children, foster care, court services and employment services. The department focuses, in the least intrusive manner, on services that individuals and families cannot provide for themselves.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Revenue and Expenditure Reconciliation Adjustments – The base budget revenue and expenditure accounts have been reconciled to state and federal approved funding for FY 23. Each year, following the confirmation of funding available from sources other than the County, the base budget for the Department of Social Services is adjusted within the fiscal year, and this adjustment becomes the base budget for the next fiscal year. The FY 23 reconciled County Budget for this Division totaled $7,331,876; $6,204,428 in state and federal dollars and $1,127,448 in County dollars. Based on the reconciliation for FY 23, a total of $271,874 is added to the base revenue budget for FY 24 and ($7,761) is reduced from base expenditures due to a reduction in purchase of services/public assistance costs for FY 24.

As part of the state’s FY 23 approved budget, one additional FTE was added for SNAPET (Supplemental Nutrition Assistance Program Employment and Training) services. Based on this change, Social Services has 70 authorized base FTEs for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

VIRGINIA Parks and Recreation

Administration

Assistant County Administrator

Parks and Recreation

Community Recreation Programs

Aquatics

Outdoor Recreation

Senior Tours and Recreation Programs

Special Programs

Athletics

Parks and Playgrounds

Summer Programs

Board of Supervisors County Administrator

VOTERS

Budget Summary

About

The Parks and Recreation division provides quality, customer-valued recreation programs and facilities that engage participants and add value to the quality of life. Programming and facilities are offered in aquatics; athletics and team sports; youth, adult and senior wellness and education; outdoor recreation; tours; special events; and summer programs.

Administration

Administration oversees the operation of all recreational programs and parks facilities. Responsibilities also include the division’s budget management, marketing, facility design, and planning for future recreational needs.

Aquatics

The Frog Pond offers a safe and fun swimming environment and quality instruction for leisure and educational swimming programs for all ages, including infants. The Stroke and Turn Clinic teaches strokes and turns with a competitive edge for those who want to join a competitive swim team.

Athletics

The Athletics department focuses on children ranging from pre-K to middle school and the approach that recreational sports should place more emphasis on educational and social benefits rather than competition. A strong focus is also placed on good sportsmanship from participants, parents and spectators. Each program is built around teaching the fundamentals and ensuring that every participant receives an enjoyable and lasting recreation experience in a safe and positive environment.

Community Recreation Programs

Community Recreation Programs offer a diverse schedule of education/recreation-based activities for youth. Activities include martial arts, cooking, drawing, painting, and holidaythemed classes.

Outdoor Recreation

This department provides diverse programming based on adventure, conservation, environmental education and experiential education with a focus on high adventure. Montgomery County was one of the first municipal departments to offer outdoor recreation programs in Southwest Virginia.

PARKS AND RECREATION

Parks and Playgrounds

Montgomery County has seven parks ranging from small pocket parks to linear biking and hiking trails to its largest 110 acre Mid-County Park. Swimming, picnicking, hiking, canoeing, kayaking, athletic ball fields, playgrounds, walking tracks and natural areas are all amenities that can be found at the parks. Private pool and shelter rentals are also available.

Senior Tours

Senior Tours are designed and selected for active travelers 50 and older who like to explore regional interests and attractions while discovering the area’s well-kept secrets and making new friends. The one day excursions are planned to nearby cities, museums, sporting events, festivals, professional theater, and dining destinations.

Senior Recreation Program

This department offers the Mountain Trekkers Hiking Club and the New River Valley Senior Games to adults 50 and older to encourage enrichment of their lives through activity and knowledge. Educational and wellness programs and health screenings/clinics promoting physical and mental health are also offered. Monthly luncheons provide an opportunity to meet socially and enjoy activities.

Special Programs

The Special Programs department provides a broad range of special events that can span from events for youth to events for the whole family, including creative Christmas themed programs and Rock the Pond summertime events held annually.

Summer Programs

This department provides a broad range of services to the community. The Frog Hoppers Camp is the most popular program, providing a safe and fun environment for children that will offer growth and education about the outdoors, swimming lessons and crafts. This camp is for children entering 1st grade to students leaving the 5th grade. Nature hikes, fun games and field trips teach children that it is fun to get out and go play!

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee collections in FY 23 and FY 24, an additional $6,670 is added to the Parks and Recreation Division’s base fee revenue for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $58,555 is Added for a Maintenance Worker Position (One FTE) and Agricultural Supply Costs –With the addition of the new 35-acre Auburn Park, additional staffing and supplies are needed. Funding is provided for an additional FTE ($28,555) for six months and $30,000 for agricultural supplies to support maintenance of the park. Based on the construction progress of the park, the additional maintenance worker will be needed for the second half of the year.

• $41,445 is Added for Operation and Maintenance Costs at County Parks – Additional funding in the amount of $41,445 has been added from Cigarette Tax revenue to cover operating costs at Countymaintained parks including the newly constructed Creed Fields and Auburn Park.

MONTGOMERY COUNTY, VIRGINIA

Regional Library System

Board of Supervisors Library Board

VOTERS

Regional Library System

REGIONAL LIBRARY SYSTEM

Budget Summary

REGIONAL LIBRARY SYSTEM

About

The Montgomery-Floyd Regional Library System has branch libraries in Blacksburg, Christiansburg, Shawsville and Floyd. Reading and other materials are offered in a variety of formats, including eBooks, downloadable and streaming audiobooks, music, and movies. Public computers, wireless access, databases and office and entertainment software are available in each library. The Christiansburg and Floyd libraries maintain special sections for genealogy and local history.

Regional Library System

Staff members of the regional system are trained to help citizens use the library, download material and locate information. Library services include assistance with job searching and resume building, computer classes, summer reading programs for all ages, special events, programs, book discussion groups and story times. Public meeting rooms in each library branch are available to individuals and groups to use on a first-come basis. Meadowbrook has a dedicated craft room. The Library also offers notary services and is a passport acceptance agency.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

REGIONAL LIBRARY SYSTEM

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 22 and projected fee collections in FY 23 and FY 24, an additional $55,938 is added to the Regional Library’s base fee revenue for FY 24. This increase includes a $35,938 increase in state aid.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

COUNTY, VIRGINIA Planning and GIS Services

Board of Supervisors County Administrator

Deputy County Administrator/CFO

PLANNING AND GIS SERVICES

Budget Summary

About

Planning and Geographic Information System (GIS) administers the comprehensive land use plan, zoning and subdivision ordinances, provides geographical information and mapping services and maintains official street names and addresses in the unincorporated areas of Montgomery County. Floodplain management, site plan administration and 911 addressing are also administered in this division.

Planning

The Planning department works with the Planning Commission to develop and implement the Comprehensive Plan and related small-area village plans for the six village areas; administers zoning and subdivision ordinances; prepares long and short range planning information and studies; prepares grants for hazard mitigation, enhancement, community development and other programs; implements ongoing planning education and information programs; and supports other departments in planning, land use development and zoning. The staff serves as the primary support to the Planning Commission, Board of Zoning Appeals, and Agricultural and Forrestal District Advisory Committee.

Geographic Information System (GIS)

This department administers the Geographic Information System (GIS) and iGIS map portal. Their mission is to coordinate, manage, and facilitate GIS at departmental, office and enterprise levels. Work includes creation and management of E911 site addresses and street names. Additionally, GIS is the primary custodian for GIS data, aerial imagery and LiDAR topography contours. This department also fulfills public requests for GIS data, mapping and imagery services.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Land Management Software and Associated Technology Fees are Transferred from Planning and GIS to Information Technology – In the past, $90,000 in land management software expenses and $22,000 in associated technology fee revenue for the maintenance of the land development office software suite was managed in the Planning and GIS Division. This software has been replaced. For better operational management and efficiency, the base expenditure funds of $90,000 and technology fee revenue of $22,000 are transferred to the Information Technology Division for FY 24.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

Economic Development

Board of Supervisors County Administrator

VOTERS

Economic Development

ECONOMIC DEVELOPMENT

Budget Summary

ECONOMIC DEVELOPMENT

About

Economic Development division serves as the primary marketing resource for the County and the towns of Blacksburg and Christiansburg to develop businesses and to generate taxable capital investments and high-quality opportunities for employment. The division works closely with the Economic Development Authority, Economic Development Commission and the MBC Development Corporation to attract new investments and support the success of existing businesses.

Economic Development

The department carries out the Board of Supervisors’ Strategic Plan, which outlines: recruitment of new industry, retention and expansion of existing business and industry, market research, workforce development, and product (sites and buildings) development. Since 2009, 3,568 new jobs have been added from both new and existing businesses, resulting in more than $165 million in total investment in Montgomery County.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would

ECONOMIC DEVELOPMENT

cost in the next fiscal year to operate the same programs in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 24, the County budget includes an increase in the Virginia Retirement System (VRS) rate from 13.70% to 13.75%. All other fringe benefits rates remain unchanged. The FY 24 approved budget also includes funding to cover the cost of a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023.

• Broadband Project Manager (0.6 FTE) Added to the Base Budget – While not included in the FY 23 Approved Budget, a new Broadband Project Manager position was recommended for funding in the County Administrator’s FY 23 budget message. At the beginning of FY 23, $69,047 in American Rescue Plan Act (ARPA) funds were appropriated to support the base wage funding of $21,465 in the Economic Development Division for a total budgeted cost of $90,512. This position will transition to a fully Countyfunded position over the next several years. There are $30,000 in ARPA funds available to support this position in FY 24. The new base cost of the position is $81,875 and requires an additional base increase of $51,875. This change adds $51,875 to the base budget and adds 0.6 FTE for FY 24. This position will become permanently funded with General Fund dollars in FY 25.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

Other Agencies

VOTERS

Board of Supervisors

Other Agencies

Budget Summary

OTHER AGENCIES

About

This Division consists of all outside agencies that are funded by County General Fund dollars. Agencies that receive funding are divided among five categories: Human Service Agencies, Public Safety Agencies, Education/Cultural Agencies, Environmental Agencies, and Economic Development Agencies.

Human Service Agencies

• $323,806 is included for the New River Valley Detention Home (mandated), which is an increase of $67,864 – The NRVDH’s request for FY 24 is $323,806, which is an increase of $67,864 from the FY 23 budget. In the FY 10 request, the formula for determining operating contributions was changed to allocate costs among participant jurisdictions on the basis of days used, averaged over a three-year period. Under the revised formula, Montgomery County’s billed usage for the facility for FY 24 is $323,806 or 58.0% of the total funding. The facility is over 30 years old and requires upgrades, maintenance, and newer equipment for licensure compliance. The County is providing $323,806 for operations based on a threeyear average usage. Since FY 24’s request is more than the base allocation of $255,942, no additional funding is added to the reserve to address future facility upgrades. By the end of FY 24, $927,956 will have accumulated in the reserve.

• $30,994 is included for the Community Health Center of the New River Valley (Free Clinic) (not mandated), which is level funding – The agency requested $30,994 in the FY 24 budget, which is level funding. The center provides medical and dental care as well as pharmaceuticals to uninsured citizens of the New River Valley who live below the Federal Poverty Guidelines. Historical funding and the percentage of clients served by locality are presented in the chart below. For FY 24, the County is providing level funding of $30,994. With level funding, the County is providing 59% of the funding with only 42% of the clients served. The County also provides the building at 215 Roanoke Street which was renovated for the center. Assuming the center had to rent space equivalent to the building provided by the County, the rental costs would likely exceed $64,352 (8,044 square feet X $8.00).

Community Health Center of the NRV

OTHER AGENCIES

• $50,625 is included for New River Community Action (not mandated) and $30,471 is included for the Montgomery County Emergency Assistance Program (not mandated), which is level funding – The New River Community Action (NRCA) agency requested $53,156 for FY 24, which is an increase of $2,531. The agency serves low-income residents of Montgomery, Pulaski, Floyd, and Giles Counties and the City of Radford. The agency’s goal is eliminating poverty. The County funds also support a Community Service Worker position in NRCA that administers the Montgomery County Emergency Assistance Program (MCEAP). MCEAP partners with NRCA to provide emergency assistance to County residents only. MCEAP requests $31,995 for FY 24, which represents an increase of $1,524. In FY 23 MCEAP received $30,471. For FY 24, the County is providing level funding of $81,096 for both programs. With level funding, the County is providing 41% of the funding with only 34% of the clients served.

• $38,183 is included for the Women’s Resource Center (not mandated), which is level funding

– The agency received $38,183 in the FY 23 budget, and requested an increase of $1,909 for FY 24. Historical funding and the percentage of clients served by locality are presented below. With a budget of $38,183, the County is providing 41% of funding with 37% of clients served. The Women’s Resource Center provides services to adult and child citizens who have experienced domestic and/or sexual violence. The agency provides emergency advocacy, a live crisis hotline, an emergency and transitional shelter, emergency food and supplies, crisis counseling, legal advocacy and other services.

Women's Resource Center

• $5,051 is included for the New River Family Shelter (not mandated), which is level funding

– The agency requested $5,051 in the FY 24 budget, which represents level funding. The shelter is able to provide shelter services, through its facilities or in hotel rooms, to 30% of those seeking shelter. Others seeking shelter can receive either out-of-town shelter services or bus tickets to other lodging arrangements. Last year approximately 71% of clients residing in established shelter space moved into

OTHER AGENCIES

permanent housing upon leaving the shelter. The shelter has the potential to serve all localities in the New River Valley. Other New River Valley localities have not historically been asked to fund the shelter due to the negligible number of clients outside of Montgomery County.

• $6,482 is included for the Literacy Volunteers of the NRV (not mandated), which is level funding – The agency requested $7,130 in the FY 24 budget, which represents an increase of $648. With level funding of $6,482, Montgomery County, without the funding from the two towns, will be providing 59.95% of the funding with 57.97% of the clients served. The Literacy Volunteers of the NRV provide free instruction for adults in reading, writing, basic Math, GED preparation, ESOL and basic computer skills.

• $252,661 is included for the New River Valley Community Services (mandated), which is an increase of $22,969 – The agency requested $707,344 in the FY 24 budget, which represents an increase of $477,652. New River Valley Community Services offers community-based programs for both children and adults who are living with mental illness, developmental disabilities and/or substance abuse. Based on §37.2-509 of the Code of Virginia and State Board Policy 4010, all Community Services Boards (CSBs) in Virginia are required to request local funding to achieve a 10% local match. The 10% local match for Montgomery County is $707,344. An additional $22,969 is added to work toward a 10% local match. The following tables outline the clients served by jurisdiction and the funding by locality since FY 22.

• $16,652 is included for the NRV Agency on Aging (not mandated) for agency programs and $14,000 is included for one weekly congregate meal, which is level funding – The agency requested $17,818 for agency programs, and $14,000 to continue an additional congregate meal per week for residents of Montgomery County. In FY 04, the Board of Supervisors agreed to provide 100% of local funds to cover one meal weekly, which would ensure Montgomery County residents would receive three congregate meals per week. The agency requests a total of $31,818 which represents an increase of $1,166. With level funding, the County is providing 30% of the funding with 29% of the clients served in the New River Valley.

Community Services Board - Local Funding

River Valley Agency on Aging - Locality Funding

OTHER AGENCIES

• $11,046 is included for the New River Valley Senior Services, Inc. (not mandated), which is level funding – The agency requested $17,127, which represents an increase of $6,081. The agency received $11,046 in FY 23. The agency provides transportation services for non-emergencies for sensory and physically disabled persons. With $11,046 in funding, the County will be providing 34% of the funding with 32% of clients served.

• $15,000 is included for the Boys and Girls Club (not mandated), which is level funding –The agency received $15,000 in FY 23 and requested $15,000 for FY 24. The County provided an additional $5,000 in FY 22 to cover the increased costs of the programs at the four sites at Eastern Montgomery High School, Christiansburg Middle School, Shawsville Middle School, and Eastern Montgomery Elementary School.

• $4,000 is included for Brain Injury Services of SW Virginia (not mandated), which is level funding – The agency received $4,000 in FY 23 and requested $4,000 for FY 24, which is level funding. Brain Injury Services of Southwest Virginia provides case management services for citizens who have suffered brain injuries.

Brain Injury Services - Locality Funding

• $3,500 is included for NRV CARES (not mandated), which is level funding – The agency received $3,500 in the FY 23 budget and requested $3,675 for FY 24, which represents an increase of $175. NRV CARES is a nonprofit organization dedicated to protecting children and strengthening families through education, advocacy and community partnerships. All programs are aimed at preventing or interrupting the cycle of child abuse. Services are provided for residents in the counties of Montgomery, Pulaski, Floyd, Giles, and the City of Radford. With level funding, the County is providing 51.5% of the funding with 50.6% of the clients served in the New River Valley.

• $61,219 is included for the Fairview District Home (mandated), which is an increase of $2,497 – The agency requested $61,219 for FY 24, which is an increase of $2,497. The Fairview District Home is a 64-bed assisted living facility which provides room and board, medication administration, personal care, shopping, daily living skills, community socialization, and financial management for its residents. Locality funding provided to the home is for general operations and capital maintenance of the facility. See following charts:

NRV CARES - Locality Funding

• $5,000 is included for the Children’s Trust (not mandated) to support the Children’s Advocacy Center of the New River Valley, which is level funding – The agency received $5,000 in FY 23 and requested level funding for FY 24. The Child Advocacy Center of the New River Valley is a program offered by the Children’s Trust that brings law enforcement professionals, child protective services investigators, prosecutors, medical and mental health personnel, and child advocates together to ensure that children are provided with the best possible services in order to discuss and heal from alleged abuse. The Children’s Advocacy Center of the New River Valley provides space for trained forensic interviewers to interview abused children in a non-threatening environment. These funds will be used to support rent and utilities for space in Christiansburg for interviews of children throughout the New River Valley.

• $1,500 is included for The Community Group of Montgomery County (previously Dialogue on Race) (not mandated), which is level funding – In FY 17, the Board of Supervisors provided $1,500 to the Dialogue on Race and asked that this become an annual budgeted amount in support of the yearly forum to discuss issues articulated by the African American community and work toward solutions.

• $77,500 is included for the New River Home Trust (mandated) – A total of $77,500 is included for the New River Home Trust. The New River Home Trust was formed in 2022 between the Town of Blacksburg and Montgomery County to provide affordable housing for low-income and moderate-income residents, and promote resident ownership of housing. The Town of Blacksburg and Montgomery County entered into an agreement to equally share the cost associated with operating the New River Home Trust each year as determined by a funding formula based on the number of houses in the trust and includes a 4% annual cost of living adjustment. Montgomery County’s share of the operating costs for FY 24 under this formula is $77,500.

Public Safety Agencies

• $12,137 is included for State Forester (mandated), which is level funding – The agency received $12,137 in the FY 23 budget; therefore, this amount represents level funding for FY 24. Based on the invoice from the State Forester for FY 23, the amount needed to cover the fee for FY 24 is $12,137.

• $15,715 is included for the Emergency Medical Services Council (not mandated), which is level funding – The agency received $15,715 in the FY 23 budget and requested level funding for FY 24. The mission of the council is to facilitate regional cooperation, planning, and the implementation of an integrated emergency medical services delivery system.

• $15,700 is included for the Montgomery County Public Service Authority (mandated), which is level funding – These funds are to be used to cover the PSA’s cost of maintaining fire hydrants in the County.

• $1,600 is included for the Medical Examiner (mandated), which is level funding – The agency received $1,600 in the FY 23 budget; therefore, this amount represents level funding. According to §32.1283 of the Code of Virginia, the medical examiner is paid $20 per case. This recommendation provides the fee for 80 cases. Through December 2022, $720 has been expended, representing 36 cases.

• $1,007,776 is included for the New River Valley Emergency Communications Regional Authority (mandated), which is an increase of $47,989 – The Authority received $959,787 in FY 23 and requested an increase of $47,989 from each participating jurisdiction. Centralized operations began on July 1, 2016. The mission of the New River Valley Emergency Communications Regional Authority is to provide quality and reliable 911 dispatch and emergency communication services to the community. This increase will support the basic operations of the authority.

• $25,000 is included for the Drug Court (not mandated), which is level funding – In the FY 18 budget process, the Board of Supervisors agreed to support a new drug court in Montgomery County and fund up to $25,000 for housing costs for certain drug court clients.

Educational/Cultural Agencies

• $50,369 is included for New River Community College (mandated), which is an increase of $3,974 – The agency requested $50,369 in the FY 24 budget. The agency received $46,395 in the FY 23 budget. The County’s funding as well as funding from other local contributing localities is based on a weighted average, local participation formula adopted when the college was established. The formula is a function of three components including: population, true property value, and student enrollment with the greatest weight attributed to student enrollment. The following table illustrates the fund allocation from Montgomery County and surrounding areas. Funds are used for site development costs for capital projects which are not funded by the state. Earmarking these monies for the local share of capital projects will preclude the College from asking localities for additional funds to cover site development costs.

New River Community College

• $450,000 is Included for the Access to Community College Education (ACCE) Program (not mandated) Through New River Community College, which is a reduction of $50,000 – The ACCE program is a public/ private partnership to make college available to high school graduates. The locality designates a dollar amount that is matched by donations from local industries and private sponsors. $450,000 is included for FY 24 to support this program. Since the program’s inception, excess funds have remained at year-end after fully funding all participating County graduates. All funds not used annually will be held in a special reserve fund to address any unanticipated increases in future student enrollment.

• $5,000 is included for The Lyric Council, Inc. (not mandated), which is level funding – The agency received $5,000 in the FY 23 budget and requested level funding for FY 24. The Lyric Theatre is home to many music, theatrical, and film venues. This funding equals the amount provided to the Historic Smithfield and the Montgomery Museum.

• $5,000 is included for the Montgomery Museum and Lewis Miller Regional Art Center, Inc. (not mandated), which is level funding – The agency received $5,000 in the FY 23 budget and requested $33,500 for FY 24. The agency requested $20,000 based on the increased cost of operations, an increase of $15,000, and $13,500 to cover the cost of real estate taxes. The purpose of the museum and art center is to be a repository for, and to conserve, the history of Montgomery County and its artifacts. This funding recommendation equals the amount provided to the Historic Smithfield and the Lyric Council.

• $5,000 is included for the Historic Smithfield (not mandated), which is level funding – The agency requested $7,000 for the FY 24 budget, which is an increase of $2,000. Funds support instructor fees and supply costs of onsite classes. The Historic Smithfield exists to preserve and interpret the cultural and natural resources of Montgomery County as they related to the historic site. This level funding recommendation equals the amount provided to the Montgomery Museum and the Lyric Council.

• $5,000 is included for the Rosa Peters Community Park (not mandated), which is level funding – The agency received $5,000 in the FY 23 budget and requested $8,000 for FY 24. Playground facilities, basketball courts, and a swimming pool allow children and adults the opportunity for community recreation. The park also has a pavilion available for community use upon request. The funds will help maintain two positions, a lifeguard and playground supervisor, as well as offset operational and maintenance costs.

• $10,000 is included for the Christiansburg Institute (not mandated), which is level funding – The agency received $10,000 in FY 23 and requested $30,000 for FY 24. Level funding is provided for FY 24. The mission of the Institute is to preserve its remaining facilities and archives, which for 100 years was the high school for African American students in the New River Valley.

OTHER AGENCIES

• $5,000 is Included for Eastmont Community Foundation (previously Mountain Valley Charitable Foundation) (not mandated), which is level funding – $5,000 is included for FY 24 to cover the cost for Eastmont Community Foundation to mow the Shawsville Middle School athletic fields.

• $30,000 is included for the Mountain View Humane Spay and Neuter Clinic (not mandated), which is level funding – The agency received $30,000 in FY 23 and requested $30,000 for FY 24. The agency offers a low cost, high quality option for spay/neuter of dogs and cats. Based on the success of the pilot program to subsidize the cost of the surgery for cats (nearly 24% are feral cats), funds are provided to continue this program, reducing the cost of surgeries for County residents and addressing overpopulation of feral cats.

Environmental Agencies

• $40,982 is included for the New River Valley Regional Commission (mandated), which is level funding – The agency requested $40,982 for FY 24 and received $40,982 in the FY 23 budget. The NRVRC serves as a planning and coordinating body for the localities of Planning District Four. Its mission is to identify and analyze regional issues and facilitate decision-making to resolve those issues, to serve as an information resource through the regional database, and to develop local and regional plans or strategies that will strengthen local governments’ ability to serve their citizens. The requested amount is based on $1.32 per capita as approved by the commission.

• $13,000 is included for the Skyline Soil and Water Conservation District (not mandated), which is level funding – A total of $14,333 was requested by the Skyline Soil and Water Conservation District for FY 24, which is an increase of $1,333. Many of the services provided by the District are to landowners and other consumers regarding general soil quality and management information and referral. The agency promotes conservation techniques and better water quality by offering an annual Grazing School throughout the New River Valley, which includes classes on plant science and grazing techniques for livestock.

• $3,000 is included for the New River-Highland Resource Conservation and Development Council (not mandated), which is level funding – A total of $3,000 was requested by the New River-Highland Resource Conservation and Development Council for FY 24. The Council received $3,000 in FY 23. The Council provides regional education, training, and technical assistance on conservation and sustained use of natural resources. The agency receives additional funding from 14 other cities and counties as well as 9 planning and conservation districts. Funding from each jurisdiction is based on a set rate across the board and not based on population.

• $109,205 is included for the Virginia Cooperative Extension Services (mandated), which is an increase of $12,128 – A total of $109,205 was requested by the Virginia Cooperative Extension Services for FY 24 and represents an increase of $12,128. $97,077 was included in the FY 23 budget. Each year, the County reconciles the Cooperative Extension budget to the required state match. In FY 23, the state increased the salaries of agents based on a compensation study and covered the local match for one year. In FY 24, the County is required to cover the match. Cooperative Extension provides research-based information to residents in the areas of Agriculture, Horticulture, Human and Family Resources and Youth Development. The County fully funds one full-time agricultural agent housed in the County, one full-time

OTHER AGENCIES

4-H agent, 40% of funding for a part-time Master Gardner with Floyd, Pulaski, and Giles Counties each paying 20% of the cost, 50% funding for a Family and Consumer Science Agent, and 100% of a part-time 4-H technician position.

Economic Development Agencies

• $1,700 is included for the Montgomery County Chamber of Commerce (not mandated), which is an increase of $50 – A total of $1,700 is included for dues payable to the Montgomery County Chamber of Commerce for FY 24. The Chamber works to promote tourism and economic development to prospective newcomers.

• $19,678 is included for the New River Valley Airport Commission (mandated), which is level funding – A total of $19,678 was requested by the New River Valley Airport Commission for FY 24, which is level funding. The agency received $19,678 in the FY 23 budget. Funding requested is determined using a formula which is a function of jurisdictions’ populations, distance from the airport, and business activity generated at the Airport by industries in respective jurisdictions.

• $2,500 is included for the NRV Rail 2020 Initiative (not mandated), which is level funding – A total of $2,500 is included for Rail 2020 initiative. Initiated in 2013 by The Blacksburg Partnership, New River Valley Rail 2020 (NRV 2020) is a broad-based community initiative to bring Amtrak passenger rail service to Virginia’s New River Valley. The NRV Rail requested $2,500 for FY 24, which is level funding from the FY 23 approved budget.

• $8,500 is included for the New River Valley Passenger Rail Station (mandated) – A total of $8,500 is included for the New River Valley Passenger Rail Station. The New River Valley Passenger Rail Station was established in 2022 through State legislation to develop and operate a passenger rail station in Montgomery County. Once completed, the passenger rail station will serve Amtrak users in a northeast corridor of the United States that will extend from Boston, MA to Christiansburg, VA. Service to the facility is scheduled for 2026. The New River Valley Passenger Rail Station requested $8,500 for FY 24 in firsttime support from the County.

• $1,500 is included for Membership in the Virginia Institute on Local Government (not mandated), which is level funding – A total of $1,500 was requested by the Virginia Institute on Local Government for FY 24, which is level funding. The Institute, located at the University of Virginia, provides direct technical assistance and conducts specialized research projects, training, and leadership programs. Staff responds to inquiries on a wide variety of local government topics and provides in-depth research

New River Valley Airport Commission

New River Valley Airport Commission - Clients Served

OTHER AGENCIES

on inquiries with broad multi-jurisdictional applications. Information technology support services are also available. This recommendation provides funds necessary for membership in the Institute. Benefits of membership include priority access to Institute resources and discounts on publications and training opportunities. Membership dues will remain unchanged for FY 24.

• $99,721 is included for Onward NRV (not mandated), which is level funding – A total of $99,721 was requested by Onward NRV for FY 24, which is level funding. Onward NRV has a funding formula of $1 per capita for each member jurisdiction. Blacksburg and Christiansburg Town residents and the students at Virginia Tech are included in the population figure used to derive the budget request for Montgomery County.

• $20,400 is included for the Metropolitan Planning Organization (MPO) (mandated), which is an increase of $600 – A total of $20,400 was requested and is included for the MPO for FY 24, which includes $7,200 for the MPO and $13,200 for the Smart Way Bus. The Blacksburg, Christiansburg, Montgomery Area Metropolitan Planning Organization was established by the Board of Supervisors on January 13, 2003 to evaluate regional transportation needs and any requirements of the Clean Air Act. To receive funds from the Federal Government, a local match is required. The local match for FY 24 is $7,200 that is dedicated to MPO Planning and $13,200 that is dedicated to the Smart Way Bus.

• $201 is included for the Roanoke Valley Transportation Planning Organization (mandated), which is level funding – A total of $201 is included for dues payable to the Roanoke Valley Transportation Planning Organization (RVTPO). The agency requested $201 for FY 24, which is level funding. The organization is responsible for planning and budgeting the use of Federal transportation dollars in the Roanoke region. Dues are calculated on a $0.15 per capita basis. The RVTPO organization charges based

OTHER AGENCIES

on the 2040 TPO Study Area Boundary and 2020 Census Data which has 1,338 residents.

• $60,000 is included for Participation in the Virginia Tech/Montgomery Regional Airport Authority (mandated), which is level funding – A total of $60,000 was requested by the Virginia Tech/ Montgomery Regional Airport Authority for FY 24. The agency received $60,000 in the FY 23 budget. The Virginia General Assembly created the Authority in 2002. Member jurisdictions include Virginia Tech, the towns of Blacksburg and Christiansburg, and Montgomery County. The Authority was created to develop a regional authority that would serve surrounding corporate and general aviation markets. Each participating member is to contribute a portion of the subsidy for the airport’s operating budget.

• $38,000 is included for Tourism (mandated), which is an increase of $26,000 – The County’s transient occupancy rate is 3%, which generates around $134K in revenue on an annual basis. The County pays approximately 1/3 of this or 1% of the 3% rate to the Tourism Department in accordance with the tourism agreement. Increased revenues over the past several years and additional hotels require an increase to the Tourism Department.

• $60,851 is included for Membership dues in the Virginia’s First Regional Industrial Facility Authority (mandated) and Participation in the New River Valley Commerce Park Project (mandated), which is level funding – The County pays $5,000 in annual membership dues to the Authority. In FY 16, the Virginia’s First Regional Industrial Facility Authority restructured the NRV Commerce Park to place the management of the project under the direction of the Authority. The Commerce Park is a regional economic development project consisting of 973 acres located in Dublin that was established in October 1999. The County currently owns 20,309.06 shares or 11.47% of the project with an annual cost of $55,851. Funding for the County’s shares is mandated by the project agreement.

• $10,132 is Included for the New River/Mount Rogers Workforce Development Board (not mandated), which is an increase of $127 – A total of $10,132 was requested by the New River/Mount Rogers Workforce Development Board for FY 24, which is an increase of $127. The agency received $10,005 in the FY 23 budget. The funding request is $0.10 per capita, based on the estimated 2023 population for Montgomery County (obtained from Virginia Tech). The New River/Mount Rogers Workforce Development Board’s mission is to facilitate and coordinate initiatives that deliver a workforce with the skills needed by businesses and provide jobs to workers that pay a sustainable wage. These funds will be used to continue and expand business services efforts.

Board of Supervisors

County Administrator

VOTERS

Budget Summary

About

This division provides for contingency reserves to pay for unanticipated expenditures that arise during the year.

Contingencies – General

Contingencies – General provides for unknown and unanticipated expenditures that arise during the year but have not been included in the approved budget.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

•

No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $68,000 is Added to the General Contingency Budget – The County’s Financial Policies include retaining 1% of the County’s general government portion of the General Fund to cover contingency needs. An additional $68,000 is needed to comply with this policy.

Board

Budget Summary

About

This division serves as a holding account for funds approved for a specific purpose for which the details are not finalized. For funds held in special contingencies to be expended, the Board of Supervisors must approve a resolution transferring them to the appropriate division.

Personnel

Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• ($116,216) is Removed from Funds Remaining from the County’s 5% Compensation Increase in FY 23 – Monies were held in Special Contingencies until transferred to departments to provide a 5% Compensation increase for County employees and for the implementation of the County’s new Compensation and Classification Plan. $116,216 was the remaining balance after the funds were distributed in FY 23. These funds have been removed for FY 24 as they are no longer needed as base funds.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $144,395 is the Balance of Funds Remaining After Allocating Compensation Increases to County Departments – Monies were held in Special Contingencies until transferred to County departments to provide a 7% compensation increase for classified and part-time non-classified County employees July 1, 2023. $144,395 is the remaining balance after the 7% increase was distributed.

MONTGOMERY COUNTY, VIRGINIA Law Library

General Assembly Circuit Court

VOTERS

Law Library

Budget Summary

About

The Law Library is self-supporting from fees assessed on civil and criminal trials.

Law Library

This division provides legal information resources for attorneys and the courts.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

Montgomery County Public Schools

VOTERS

School Board

Public Schools

Nutrition Fund

Operating Fund

Board of Supervisors

MONTGOMERY COUNTY PUBLIC SCHOOLS

Budget Summary

About

Montgomery County Public Schools (MCPS) serves around 9,487 students through 11 elementary schools (grades K-5), four middle schools (grades 6-8), four high schools (grades 9-12), and central administrative offices. MCPS also provides one alternative education school. In addition to the regular education and special education programs other programs include: Title I; elementary art, music, and physical education; elementary, middle, and high school guidance; comprehensive career and technical education; gifted education; programs for at risk students; and extensive extracurricular activities in athletics, fine arts, and academic competitions. The seven elected members of the School Board and the Superintendent of Schools provide leadership and management for the school division.

School Operating Fund

The School Operating Budget provides the funds as required to comply with the State Standards of Quality (SOQ) and to meet the Federal requirements under the No Child Left Behind (NCLB) legislation. The budget also incorporates local programs as requested by the community.

School Nutrition Fund

The School Nutrition program operates as a separate fund and is self-sustaining for the cost of labor, food supplies, expendable supplies, and equipment repair. Major capital expenditures, utilities, and liability insurance are provided through the school division’s operating budget. Revenues are received from the sale of breakfast, lunch, ala-carte items, catering, and reimbursements from Federal nutrition programs.

Budget Discussion

• $134,940,673 is Provided for the School Operating Fund – $134,940,673 in total funding is provided for the School Operating Fund. This represents an increase of $8,151,969 over the FY 23 approved budget. Of this amount, $5,699,256 is from new state designated resources and $2,452,713 is from new County dollars. Due to FY 23 appropriations that were made after the adoption of the FY 23 budget that total $2,310,824, new state monies for schools total $3,388,432 over the FY 23 adjusted school budget.

• $5,205,010 is Provided for the School Nutrition Fund – $5,205,010 in total funding is provided for the School Nutrition Fund, which is an increase of $571,536 from the FY 23 Budget.

Montgomery County Public Schools Capital

VOTERS

Board of Supervisors

School Board

Public Schools School Capital

MONTGOMERY COUNTY PUBLIC SCHOOLS - CAPITAL

Budget Summary

About

Montgomery County Public Schools Capital Fund dollars are earmarked to be used in the future for new school capital projects.

Schools Capital Fund

The School Capital Fund is used to fund future school capital projects.

Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• $2,938,580 is Provided for the School Capital Fund – $2,938,580 or 2.5 cents of the real estate tax rate has been earmarked for future school capital needs. These funds are held in a special Capital Fund account separate from the School Operating Fund. These funds may be used only with future Board of Supervisors approval.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• ($587,716) or 0.5 Cents of the Real Estate Tax Rate is Reduced from the School Capital Fund –$587,716 or 0.5 cents of the real estate tax rate has been reduced from future school capital needs.

MONTGOMERY COUNTY, VIRGINIA

General Government Debt Services

Board of Supervisors County Administrator

VOTERS

General Government Debt Services

County Debt Service

School Debt Service

GENERAL GOVERNMENT DEBT SERVICES

Budget Summary

GENERAL GOVERNMENT DEBT SERVICES

About

General Government Debt Service division includes principal, interest and administrative fees on long-term outstanding debt. Debt service accounts are required for the issuance of the bonds to fund new county buildings and schools, building improvements and renovations and other capital improvements.

County Debt Service

This includes principal, interest and administrative fees for all County long-term outstanding debt.

School Debt Service

School Debt Service includes principal, interest and administrative fees for all school long-term outstanding debt.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. Debt service has been funded from various sources: monies from the School Operating fund, courthouse maintenance fees, revenue from the New River Valley Emergency Communications Regional Authority lease, and the General Fund.

The debt service budget includes funds for principal, interest and debt administration costs, as well as, savings retained from decreases in prior year debt service. Retaining these one-time monies in the base budget sets them aside to accomplish two objectives:

• Fund future capital projects, and

• Provide capacity to offset future non-recurring peaks in debt service costs.

Reallocation of Base Debt Service Resources

– The base budget includes funds needed to cover the costs for both County and School debt. Generally, debt issuances are structured to balance total debt service costs from year to year; however, the individual components of debt service often change. In February 2022, the County issued bonds totaling $10 million for County capital projects and $91 million for School capital projects. Sufficient funds for the additional County debt service exist in the budget; however, additional funds were needed to fund the increased School debt service for seven years. In FY 23, the County transferred $3,048,900 from Undesignated General Fund Balance to the Debt Service Fund to shave a portion of school debt services costs. For FY 24, $1,116,160 of funds from this transfer are added to the base budget. Since the School’s debt service costs did increase for FY 24 and the County’s did not, the School’s portion of the reserve fund has been eliminated leaving only the County’s reserve of $2,168,714.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda Added

VOTERS

of Supervisors County Capital

MONTGOMERY COUNTY CAPITAL

Budget Summary

MONTGOMERY COUNTY CAPITAL

About

The County Capital division is used to fund the costs of future County capital project needs.

County Capital

Dollars earmarked in this division will be used in future years for County capital needs.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs in the current fiscal year.

• $1,763,148 is Included for Fire and Rescue Capital – The base budget includes $1,763,148 or 1.5 pennies of the real estate tax rate for Fire and Rescue capital needs.

• $750,000 is Included for County Capital Maintenance Projects – $750,000 is included in the County Capital budget to provide an ongoing source of capital maintenance funding to cover the County’s existing buildings and infrastructure. The County’s Capital Maintenance program, funded in the Capital Fund Budget, is a proactive program of preventative maintenance designed to address major repairs and/ or replace large scale components that cannot be addressed within the County’s centralized maintenance program contained within the County’s operating budget. The purpose of this program is to invest in existing capital assets to maintain the County’s building and structures and to extend their useful life. Ongoing projects include roofing replacements, Heating Ventilation and Air Conditioning (HVAC) upgrades, carpeting, paving, and other major systems’ maintenance.

• $425,000 is Included for the Parks and Recreation Projects – $425,000 is included for Parks and Recreation capital projects and includes $35,000 that was previously set aside in FY 16. This funding is earmarked for the Parks Revitalization Capital Project.

• $210,000 is Included to Address Information Technology Infrastructure Improvements Within County Facilities –$210,000 has been set aside to address future information technology infrastructure needs.

• $1,175,432 is Included for County Capital Needs – $1,175,432 or 1 cent of the real estate tax rate has been earmarked for future County capital needs. Of this amount, $100,000 is earmarked for the Valley to Valley Trail project.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Approved addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• ($587,716) or 0.5 Cents of the Real Estate Tax Rate is Reduced from Future County Capital Needs – $587,716 or 0.5 cents of the real estate tax rate has been reduced from future county capital needs.