Master Degree Principles of Management (BUDGETING) and Charts

2 Citizen Guide

TABLE OF CONTENTS

PWC Proposed FY 2015 Budget ........................... 3

Strategic Plan ......................................................... 4

Your Tax Dollars At Work ..................................... 5

What Is the County Budget? ................................. 6

General Fund Revenue & Resource Summary...... 7

Where Does the Money Come From? ................... 8

Where Does the Money Go? ................................. 9

Major Budget Changes/Initiatives ...................... 10

How Do PWC Schools Fit In? ............................. 11

Budget Process .................................................... 12

How We Budget In PWC ..................................... 13

PWC Capital Improvement Program (CIP) ....... 14

Get Involved ........................................................ 15

Citizen Guide 3

PWC PROPOSED FY 2015 BUDGET

A Message from the County Executive On behalf of Prince William County staff, I am pleased to deliver the Prince William County Executive’s Proposed FY 2015 Budget and the accompanying 2015 – 2019 Five Year Plan. The Proposed Budget follows the policy guidance provided by the Board of County Supervisors (BOCS) to prepare a balanced budget that allows for no more than a 2.5% increase in the average residential tax bill. The Proposed Budget is balanced at a tax rate of $1.126 per $100 of value and generates an average residential tax bill of $3,499, an $85 increase over the updated FY 14 average of $3,414.

Through the County’s Strategic Plan the community has identified the initiatives they believe will take us toward our vision and these choices directed the development of the Proposed Budget and 2015- 2019 Five Year Plan, within the overall guidance provided by the BOCS. The upcoming public hearings provide the community with yet another opportunity to make their voices heard, and the

Our Community  FY 15 Population: 430,959 (includes towns)  Area: 348 Square Miles  Labor force: 230,529 (November 2013)  At-place employment: 117,965 (2nd Qtr. 2013)  Unemployment rate: 4.4% (November 2013)  Households married w. children 2012: 32.4%  Median Household Income 2012: $93,744 (ranked 12th in U.S.)  One-way average commute, 2012: 39.6 minutes (up from 36.9 in 2000)  Adults with college degree, 2012: 44.9%  Average assessed house value,

2013: $289,095 (all houses as of January 2013)

 Average sold house value: $335,403 (Dec. 2013)

BOCS will once again balance what the community says they want in terms of services with what they are willing to pay for those services to form the adopted budget.

County staff remains committed to our vision to do the “right thing for our customers and the community every time.” History shows that when this organization works together with the Board and the community to make tough decisions, our combined efforts move us toward our adopted vision. The most recent Community Survey showed that county residents appreciate the efforts to keep their tax burden the lowest in the region while providing exceptional customer service. That has been a guiding principle in producing this recommended budget.

Melissa S. Peacor County Executive

4 Citizen Guide

STRATEGIC PLAN

2013-2016 Plan and Goals The 2013-2016 Strategic Plan is based on the 2030 goals of the County’s Comprehensive Plan and the second Future Report, both of which provide perspectives on where the community should be in 2030.

The Strategic Plan provides budget guidance by highlighting those areas critical to the continued success of the community. The following vision and goals summarize the Strategic Plan:

Prince William County will be a community of choice with a strong, diverse economic base, where individuals and families choose

to live and businesses choose to locate.

 Economic Development - The County will provide a robust, diverse economy with more quality jobs and an expanded commercial tax base.

 Education - The County will provide an educational environment rich in opportunities to increase educational attainment for workforce readiness, post-secondary education, and lifelong learning.

 Human Services - The County will provide human services to individuals and families most at risk, through innovative and effective leveraging of state and federal funds and community partnerships.

2010 2030

2009‐2012  Strategic Plan

2013‐2016  Strategic Plan

2017‐2020  Strategic Plan

2021‐2024  Strategic Plan

2025‐2028  Strategic Plan

2029‐2032  Strategic Plan

Comprehensive Plan Future Report

 Public Safety - The County will maintain safe neighborhoods and business areas and provide prompt response to emergencies.

 Transportation - The County will provide a multi-modal transportation network that supports County and regional connectivity.

Progress toward the overarching goals and the related community outcomes, as well as the status of the various strategies, are reported to the community on an annual basis and included in the budget document. The status of the outcomes is used to determine whether resource adjustments should be made through the annual budget process.

Citizen Guide 5

YOUR TAX DOLLARS AT WORK

FY 15 Average Residential Tax Bill - $3,499 By Dollar Amount with Functional Areas

School $2,002 – 57.23%

Public Safety $758 – 21.66%

Human Services

$176 – 5.02%

Community Development $143 – 4.08%

General Gov’t & Admin

$134 – 3.84%

Transportation $123 – 3.50%

Parks & Library

$111 – 3.17%

Other $36 – 1.04%

General Debt/CIP $16 – 0.45%

Proposed FY 15 Average Residential Tax Bill - $3,499 By Dollar Amount with Functional Areas

Did You Know?

The dollar bill above is the average real estate tax bill based on the value of your home. Your tax bill may be higher or lower than the County average. Do you want to see how your tax bill compares to the average tax bill and how your tax dollars fund County services? Visit the Government Transparency site - www.pwcgov.org/transparency.

6 Citizen Guide

WHAT IS THE COUNTY BUDGET?

Budget Facts The PWC budget has two major elements, the capital budget and the operating budget. The capital budget includes all projected expenditures for improvements and/or additions to the County’s capital inventory, such as roads, facilities, and parkland. The largest funding source for the capital budget is debt, in the form of bonds, and the largest expenditure is debt service on those bonds.

The operating budget includes all projected expenditures not included in the capital budget, including the operating transfer to PWC Schools. The operating budget funds day-to-day County service delivery, and excluding the transfer to the Schools, the largest expenditure category is employee compensation.

The tables below depict the proposed FY 15 all funds and general fund expenditure budgets.

FY 14 FY 15 Dollar Percent Adopted Proposed Change Change

County Government * $790,578,285 $815,341,942 $24,763,657 3.13% Schools $1,348,461,310 $1,290,103,463 ($58,357,847) -4.33% Total All Funds $2,139,039,595 $2,105,445,405 ($33,594,190) -1.57%

All Funds Expenditures

* The County Government all funds expenditure budget excludes the general fund transfer to the Schools.

Location: W:\Bud 15\Ed's Files\Summary Info\Summary Info 15\EXPREV15 #1 (Proposed)--USE.xls Tab: #1 All Funds Sum Prop 15

on 2/13/2014 at 12:43 PM

General Fund Expenditures FY 14 FY 15 Dollar Percent

Funding Area Adopted Proposed Change Change

County Government $491,738,554 $495,279,856 $3,541,302 0.72% Transfer To Schools $470,827,490 $480,577,170 $9,749,680 2.07% Total General Fund $962,566,044 $975,857,026 $13,290,982 1.38%

File Location: W:\Bud 15\Ed's Files\Summary Info\Summary Info 15\EXPREV15 #1 (Proposed)--USE.xls Tab Location: #2 GF Expen Sum Prop FY 15

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Citizen Guide 7

GENERAL FUND REVENUE & RESOURCE SUMMARY

FY 14 FY 15 % Change Adopted Proposed FY 14 / FY 15

Title Budget Budget Proposed

Calculation of County & Schools Split of Revenue & Resources:

Revenues & Resources Which Are Split Between County & Schools:

Total General Revenues $829,561,500 $846,734,460 2.07% Less Recordation Tax Revenue* ($6,868,000) ($7,005,000) 1.99% Total Split Between County & Schools $822,693,500 $839,729,460 2.07%

General Fund Total Transferred To Schools (57.23%) $470,827,490 $480,577,170 2.07%

County Share Of Split Between County & Schools (42.77%) $351,866,010 $359,152,290 2.07%

Other County Resources (Not Split): -Agency Revenue $107,468,475 $111,166,900 3.44% -Budgeted County Resources $7,398,518 $7,794,377 5.35% -Other County Resources $18,137,551 $10,161,289 -43.98% -Recordation Tax Revenue* $6,868,000 $7,005,000 1.99% County Share Of General Fund Total $491,738,554 $495,279,856 0.72%

Total County and Transfer To Schools $962,566,044 $975,857,026 1.38%

Notes: * Starting in FY 06 Recordation Tax Revenue is excluded from the funds split between the County & Schools. The part designated for Transportation Projects is indicated under Other County Resources.

General Fund Revenue & Resource Summary

File Location: W:\Bud 15\Ed's Files\Summary Info\Summary Info 15\EXPREV15 #1 (Proposed)--USE.xls Tab Location: #4 Revenue Prop 15

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8 Citizen Guide

WHERE DOES THE MONEY COME FROM?

Other Resources 0.9%

Agency Year- end Savings

2.7%

Agency Revenue 22.4%

Other Gen. Revenue

0.8%

Other Local Taxes 7.6%

Sales Tax 5.1%

Personal Property Tax

13.0%

Real Estate Tax 47.5%

FY 15 Funding Sources General Fund

(Excludes School Transfer)

Other Resources 0.5%

Agency Year- end Savings

1.4%

Agency Revenue 11.4%

Other Gen. Revenue

0.9% Other Local Taxes 8.0%

Sales Tax 6.0%

Personal Property Tax

15.4%

Real Estate Tax 56.4%

FY 15 Funding Sources General Fund

(Includes School Transfer)

FY 15 Funding Sources General Fund

(Excludes School Transfer)

$495,279,856

FY 15 Funding Sources General Fund

(Includes School Transfer)

$975,857,026

Citizen Guide 9

WHERE DOES THE MONEY GO?

Schools 49.2%

Parks / Library 3.4%

Human Services 9.1%

Public Safety & Judicial Admin.

23.2%

Debt / CIP 5.7%

Community Dev. 4.5%

Gen. Gov. & Admin. 3.8%

Non-Dept. 1.1%

FY 15 General Fund Budget By Functional Categories

(Includes School Transfer Budget)

$495,279,856

Parks / Library 6.6%

Human Services 18.0%

Public Safety & Judicial Admin.

45.7%

Debt / CIP 11.2%

Community Dev. 8.9%

Gen. Gov. & Admin. 7.4%

Non-Dept. 2.2%

FY 15 General Fund Budget By Functional Categories

(Excludes School Transfer Budget)

W:\Bud 15\Ed's Files\Summary Info\Graphs Proposed 15\FY 15 Graphs and Pie Charts‐‐#5‐23‐‐USE #2.xlsx

FY 15 General Fund Budget By Functional Categories

(Excludes School Transfer)

$495,279,856

FY 15 General Fund Budget By Functional Categories

(Includes School Transfer)

$975,857,026

10 Citizen Guide

MAJOR BUDGET CHANGES/INITIATIVES Past capital investment decisions are beginning to come to fruition and the community will see new facilities opening soon – Fuller Heights Park (2014), Gainesville and Montclair Libraries (2015), Central District Police Station (2016), Catharpin Park (2016) and Bacon Race Fire & Rescue Station (2017). We continue to make progress to ease traffic congestion with $101 million in road projects – Fuller Road/Fuller Heights Road, Logmill Road, Minnieville Road, Prince William Parkway, Purcell Road/Route 234, Route 1, Route 28, Telegraph Road, U.S. Marine Corps Heritage Center Parkway and Vint Hill Road. The new Northern Virginia Transportation Authority funding opens up a new chapter of transportation investment both regionally and locally.

The Proposed Budget is organized into four functional areas – Community Development, General Government, Human Services and Public Safety. The following are highlights of the proposed FY 15 operating investments:

Community Development:  Increases for fuel, space utilities, streetlights and vehicle replacement -

$1.2 million  Council of Government membership - $20,000  Library staffing for Gainesville and Montclair - $600,000  Fuller Heights Park operating - $240,000  Potomac Heritage National Scenic Trail - $66,000  Rollins Ford Park operating - $103,000  Trail maintenance - $93,000  Elementary school field upgrades - $154,000 (supported by fee

increase)

General Government:  4 Systems Developers for public safety and general government

systems and applications - $500,000

Human Services:  At Risk Youth & Family Services support - $500,000  4 Community Services staff for Department of Justice settlement;

Medicaid reimbursed  Birmingham Green - $80,000

Public Safety:  5 Police officers - $1.36 million  1 Basic Life Support Unit (4 Fire & Rescue uniform positions) -

$500,000  9.4 FTE and operating increases for Adult Detention Center - $1

million  Line of Duty Death increases - $1.9 million ($450,000 from fire levy)  Criminal Justice Information System - $200,000

Citizen Guide 11

How Does Pwc Schools Fit In? (HIDE Title)

The Schools budget is handled independently from the agency budgets reviewed by the County Executive. The elected School Board submits its budget request directly to the BOCS at a worksession. The proposed FY 15 budget for PWC Schools includes a local County transfer of $482,732,854. This transfer is based on the County/Schools revenue sharing agreement, allocating 57.23% of all general revenues (excluding recordation tax) to PWC Schools - $480,577,170, plus $1,378,802 in federal government reimbursements to the County associated with Qualified School Construction Bonds, plus the Schools’ share of the cable TV grant revenue - $776,882.

HOW DO PWC SCHOOLS FIT IN?

$2,105,445,405

Schools 61.3%

Debt / CIP 4.1%

Parks / Library 2.3%

Human Services 5.8%

Public Safety & Judicial Admin.

14.3% Community Dev.

5.7%

Gen. Gov. & Admin. 3.2%

Non Dept. 3.3%

FY 15 Total County Budget By Functional Categories

W:\2015 Budget\Proposed\Citizen's Guide\Working files\Total County Budget ‐ Schools.xlsx

Learn more...

Schools Transfer

Learn more about how the PWC Schools budget by visiting www.pwcs.edu.

Schools Transfer: $482,732,854

12 Citizen Guide

BUDGET PROCESSFY 2015 Budget Development PROCESS CALENDAR

CITIZEN ENGAGEMENT

� Attend/view Proposed FY 2015 Budget presen- tation � Participate on Budget Committees

� Attend/view recap � Attend/view markup � Attend/view adoption of the FY 2015 Budget

� Attend/view Strategic Plan Update and Critical Need presentations

� Direct contact with BOCS members � Public comments at BOCS meeting

BOARD OF COUNT Y SUPERVISOR (BOCS) ACTIONS

� Receive citizen comments

� Receive Strategic Plan Updates and Critical Needs presentation

� Receive preliminary revenue forecast � Provide budget guidance to County Executive and Schools

� Receive Proposed 2015 Budget presentation � Set and authorize maximum tax rate to be advertised

� Receive Schools proposed budget � Receive recap presentation � Hold public hearing � Hold budget markup session � Adopt tax rate and FY 2015 Budget

COUNT Y ADMINISTRATION & AGENCIES

� Post FY 2014 Budget online

� Develop and distribute FY 15 budget instructions � “Scrub” the FY 2014 Budget to create FY 15 starting point

� Report prior year’s performance � Prepare Strategic Plan Updates � Prepare agency historical variance report � Identify critical operating and capital needs � Finalize FY 14 “scrub” in financial reporting system � Agency budget review

� Prioritize critical needs � Identify efficiencies and savings � Compensation modeling � Update five year plan program � Provide preliminary revenue forecast � Address critical needs in light of budget guidance

� Enter proposed budget into financial system to balance

� Present Proposed FY 2015 Budget to BOCS � Meet with BOCS Budget Committees � Address comments/questions submitted to website � Finalize revenue projection

� Advertise authorized tax rate and public hearings � Identify any recap updates

� Present recap updates � Rebalance budget in financial system

� Finalize FY 2015 Budget document

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� Submit comments/questions to website

Citizen Guide 13

Five Year Plan General Fund Resource and Expenditure Projection FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Revenue and Resources: General Revenue $846,734,460 $879,263,196 $912,803,458 $947,107,828 $983,099,956 Agency Revenue $111,166,900 $105,159,521 $105,091,727 $105,116,114 $105,193,858 County Resources $17,955,666 $31,284,803 $29,366,347 $22,330,779 $18,686,560 Total Revenue & Resources Available $975,857,026 $1,015,707,520 $1,047,261,532 $1,074,554,721 $1,106,980,374

Expenditures: County Government $495,279,856 $516,614,307 $529,076,241 $536,863,517 $548,820,788 Transfer To Schools $480,577,170 $499,093,213 $518,185,291 $537,691,204 $558,159,586 Total Expenditures $975,857,026 $1,015,707,520 $1,047,261,532 $1,074,554,721 $1,106,980,374

Total Revenue & Resource Balance $0 $0 $0 $0 $0

File Location: W:\Bud 15\Ed's Files\Summary Info\Summary Info 15\EXPREV15 #1 (Proposed)--USE.xls Tab Location: #3 Five Yr Plan Prop FY 15

on 2/17/2014 at 3:09 PM

Base Budget Report General Registrar

2012

Quarterly Budget Update: FY 11 Efficiencies

FY 12 Base Budget Reviews Projected FY 13 Budget Savings

February 7, 2012 Office of Management and Budget

HOW WE BUDGET IN PWC The budget process is no longer viewed as having agency winners and losers; it is a means of appropriately allocating resources toward common goals and objectives. OMB begins the budget process by removing one-time revenues and expenditures, and planned reductions, such as previously funded capital and technology projects, from the previous year’s budget. Current salaries are brought forward, and all vacant positions are reset to entry level to set the starting point for FY 15.

Using a cross-functional approach, agencies identify savings, items that must be added because of prior BOCS commitments or obligations, and critical needs to build the expenditure side of the budget. The County Executive makes the final decisions on the proposed budget and five year plan. The revenue projection involves another collaborative process with internal and external partners working to calculate the anticipated tax base.

Each December the BOCS provides budget guidance in the form of changes to the real estate tax bill, setting the assumptions used to build the revenue for the five year plan so the County Executive and School Superintendent know the upper limit of tax revenue that is to be split using the revenue sharing agreement.

The expenditure budget is matched to the revenue budget. If excess capacity exists, the County Executive can recommend additions, but only if they can be sustained for at least five years. The County Executive can recommend that surplus revenue be added to the revenue stabilization fund. If the expenditure budget exceeds the revenue budget, the County Executive goes back to the functional teams to identify additional reductions.

14 Citizen Guide

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15-20

Community Development $40,425,729 $12,866,839 $1,289,389 $9,942,000 $13,000 $0 $64,536,957

Education $87,087,000 $185,584,000 $172,124,000 $149,876,000 $216,720,000 $141,182,000 $952,573,000

General Government $12,996,069 $8,142,009 $6,552,708 $1,335,928 $1,540,928 $1,250,928 $31,818,570

Public Safety $28,869,197 $32,229,722 $1,209,812 $0 $0 $0 $62,308,731

Transportation $67,866,795 $58,354,101 $23,820,836 $10,000,000 $10,000,000 $10,000,000 $180,041,732

Total $237,244,790 $297,176,671 $204,996,745 $171,153,928 $228,273,928 $152,432,928 $1,291,278,990

Total Project Costs by Functional Area

PWC CAPITAL IMPROVEMENT PROGRAM (CIP)

What Is The CIP? County code requires the preparation of a Capital Improvement Program (CIP), guided by the Strategic Plan, Comprehensive Plan and Principles of Sound Financial Management. The CIP includes both County and Schools projects, ensuring one affordable plan.

The FY 2015–2020 CIP is $1.3 billion, including $338.7 million for County projects and $952.6 million for Schools projects. Primary funding sources include the general fund, debt, fire levy, stormwater management fees, proffers, federal and state funds, fund balances, solid waste fees, cable franchise fee, E-911 revenue and Northern Virginia Transportation Authority funds. No revenues are anticipated from the projects included in the FY 15 capital budget.

FY 2015 - FY 2020

Capital Improvement Program

Prince William County, Virginia

Citizen Guide 15

PWC Board of County Supervisors

Corey A. Stewart, Chairman At-Large Chairman’s Office 1 County Complex Court Prince William VA 22192 Office Phone: 703-792-4640 Office Fax: 703-792-4637 [email protected]

Michael C. May, Vice Chair Occoquan District Office 2241-K Tackett’s Mill Drive Woodbridge, VA 22192 Office Phone: 703-792-4643 Office Fax: 703-792-4833 [email protected]

First Row (Left to Right): John Jenkins, Corey Stewart (Chairman), Michael May, Frank Prin- cipi Second Row (Left to Right): Pete Candland, Wally Covington, Maureen Caddigan, Martin Nohe

GET INVOLVED

Key Dates Proposed Budget Presentation February 18, 2014

Tax Rate Advertisement March 5, 2014

PWC Schools Budget to BOCS April 1, 2014

Public Hearing April 8, 2014

Budget Adoption April 29, 2014

How Can I Make A Difference?  Ask Questions: Check out our

online Q&A site www.pwcgov. org/budget

 Attend BOCS meetings: All meetings are broadcast on channel 23 (Comcast) or 37 (Verizon)

 Be Heard: Speak at Public Hearings or during citizen time at BOCS meetings

 Contact Us: Email budget@ pwcgov.org

Maureen S. Caddigan Potomac District Office 15941 Donald Curtis Drive Woodbridge, VA 22191 Office Phone: 703-792-4645 Office Fax: 703-792-4622 [email protected]

Pete Candland Gainesville District Office 7001 Heritage Village Plaza, Suite 210 Gainesville, VA 20155 Office Phone: 703-792-6195 Office Fax: 703-792-7664 [email protected]

W.S. Wally Covington Brentsville District Office 9248 Lee Avenue Manassas VA 20110 Office Phone: 703-792-6190 Office Fax: 703-792-5707 [email protected] www.brentsvilledistrict.org

John D. Jenkins Neabsco District Office 4361 Ridgewood Center Woodbridge VA 22192 Office Phone: 703-792-4667 Office Fax: 703-792-4669 [email protected]

Martin E. Nohe Coles District Office 13476 Dumfries Road Manassas, VA 20112 Office Phone: 703-792-4620 Office Fax: 703-792-4610 [email protected]

Frank J. Principi Woodbridge District Office 15941 Donald Curtis Drive Woodbridge VA 22191 Office Phone: 703-792-4646 Office Fax: 703-792-4993 [email protected]

Office of Management & Budget (OMB) 1 COUNTY COMPLEX COURT, PRINCE WILLIAM, VA 22192

www.pwcgov.org/budget