The Prince William County Revenue Stabilization Fund is a separate fund modeled in part on the state Revenue Stabilization Fund that was created back in 1990. The state fund was created as a result of a nearly 2 billion dollar shortfall that occurred because of an economic downfall. Determined to be more prepared in the future, the State of Virginia created the Revenue Stabilization Fund also known as the Virginia Rainy Day fund. It may be researched at this state website.
The state fund holds an amount equal to about 10% of its annual budget in this fund.
Prince William County is known statewide for its economic responsibility. It falls into a unique category of jurisdictions in that it has a AAA bond rating, which is very difficult to achieve. Only 0 .4% of all jurisdictions have earned this distinction.
What is the RSF? The RSF is money intended to stabilize revenue collections. It isn’t for funding Blue Bird Bus Tours or to put in libraries, bike paths or ball fields. It is to cover the unexpected financial contingencies that occur such as housing market fluctuations which greatly impact PWC revenue collection since the great majority of taxes collected are residential based.
Why have a RSF? There are several reasons. First off, it protects the citizens from wild fluctuations in budgets and from excessive taxes and prevents layoffs that might occur should there be an economic downturn. Year to year layoffs and year to year agency reductions to reflect fluctuations in revenue would result in very unstable government causing
a myriad of problems from rating agencies and community expectation.
An RSF is viewed very favorably by the bond markets because it further enhances a jurisdiction’s ability to meet its financial obligations.
The RSF provides a financial cushion in the event of any unexpected economic down turn whether it be in the job market, housing market, etc. This preparedness is particularly important as Prince William County would be heavily hit by full sequestration which is happening incrementally. We haven’t seen the worst of it yet unless things change with the federal government.
Having the Prince William County Revenue Stabilization funded at 20 million dollars is a fiscally responsible action. Our supervisors and county employees are to be commended for this foresight, rather than excoriated by a newly arrived supervisor who had not done his homework.
As the old expression goes, Pete, your lack of knowledge and understanding of process does not constitute an emergency on the part of Prince William County. Please do your homework before insulting our board of Supervisors and allowing our county employees to have their integrity and honesty questioned on a routine basis. There are knowledgeable people who have offered to help you and you have not taken them up on their offer. These people want the best for Prince William County. No one person can be expected to know everything. Consult the experts.
You are scoring points with a select crowd only. Try asking the opinion of others who have been around a while. Consult your colleagues. Stop viewing them and the employees as the enemy who have their hand in everyone’s pocket. Our county employees, for the most part, are good people who will bend over backwards to serve the citizens of Prince William County. Please give them a chance.
Very comprehensive factual post Moon. I hope the Sheriff’s readers, along with the Sheriff, take a moment to read it.
Relationships are all the same, not matter what the environment. Treat people with respect and you will get respect. Treat people as the enemy, you will be seen as the enemy. Try dialing it down Pete, ask questions without the assumption of nefarious intent and you may get somewhere.
I actually think the underlying question Pete asked was relevant. If 1% is the minimum to maintain a triple A bond rating, if that helps bolster our standing, what is the need for 2%. How was that percentage derived at as THE number needed for the RSF. What do other triple A bond rating county’s have in their RSF. Is it more? Is it less?
Before coming out with gloves on, try asking the same questions, only in a way that first educates and then you can start lacing up if the answers don’t match the facts.
Apparently from what my friends tell me, I have angered a couple of Sheriffites. They can come here and tell me rather than hiding behind the great curtain of OZ.
I have disagreed on a policy matter with Pete Candland. I don’t feel he was strong on content going into the knife fight. I said so. At no time did I mimic him or make fun of him. I believe Pete is very sincere. I just think he is getting some real bad advice.
As for my defense of county employees, I have said why over and over. I jumped into the immigration debate for the same reason. Some things just offend my sense of social justice. I dislike bullying.
Unfortunately, Pete’s fan club sits behind a blog where everyone is anonymous and has no problem saying extremely vile things about employees and other supervisors. I find that behavior unacceptable and have called on Pete to put a stop to it.
Pete does some good things I approve of very much. However, the secret fan club is a great detractor. Pete just has had too many anonymous blogs pop up around him. Its bad governance. He needs to get as far away as possible.
I said something similar to another local politician who benefitted from a blog that castigated and ridiculed others. Pete isn’t the first.
Meanwhile, the Revenue Stabilizing Fund is a good thing and it should be overfunded. We aren’t saving too much. When financial rainy days come along, there is never too much savings.
I hope this clears up any questions from the peanut gallery.
As I said to another PWC resident today, there exists somewhere a BOCS Resolution which created it, stipulates the minimum/maximum dollars, and also states how to be used. The City of Manassas has one (a Council approved policy statement) and there should be a corresponding-type document in PWC.
Of course, looking at the resolution/policy statment for the rules is just too simple of an answer.
FOUND IT! PWC “Principles of Sound Financial Management” on Page 2 is the Stabilization Fund.
http://www.pwcgov.org/government/dept/finance/Documents/11037.pdf
Good job, Ray. There it is in black and white. It has been around for over 2 decades in one form or the other. So much for the current blame game and hiding money accusations.
The perennial paranoia is one reason I have no use for tea party thinking or tactics. How sad to go around your whole life thinking your government is plotting against you. I guess that’s what happened when the cold war ended…some folks just have to have some enemy.
Wonder if those who cry over retaining “rainy day funds” and low taxes and yadda yadda yadda read today’s WaPo front page about the Detroit Bankruptcy.
Yeah, in part to be centered on mainly manufacturing, however, also known as a location placing all its bets on one horse….and a parallel is kinda sorta like betting on all the high paying jobs in the area being related to Federal employment.
@Ray
I thought of that the instant I saw it. Ms. Peacor mentioned VRS might come due for those who think pension problems might never hit PWC. Payments for VRS have been deferreed I think for the school board side. Not sure …I don’t remember all the details but it did make me think.
Savings and rainy day funds are good. When people get to be my age, there is no such thing as saving too much. Only the young and inexperienced say we are saving too much.
From what I understand, the “overage” has been used for the past few years to help reduce the tax rate and offset a fluctuating market, while reducing the size of the budget, reducing taxes and maintaining a high level of service, a low crime rate and excellent amenities.
So, money is coming back to residents. PWC is a billion dollar a year enterprise with over 15,000 employed. This is a serious business with terrific professionals at the helm. PWC is not in the top 0.04% by accident.
There are some hard working people in PWC Government and Schools far more professional than, well, why bring him up. Chm Stewart was inspiring on Tuesday. Finally standing up to a well meaning (hopefully) ill informed and badly advised colleague.
The most important play is the next one. No one among us is perfect.
@Moon-howler
Moon, VRS deferrment is going to bite. The numbers are out, and some think just because localities can set up a maximum 30year payment plan, it won’t be an impact….guess again as within the next five years, the required rates will be increased for current payments.
Looking at the table as of June 30, 2012, the bills coming due on Teacher Liability for our local folks are:
Prince WIlliam County $967,109,933
Manassas City $103,975,633
Manassas Park $34,210,738
Is that from the deferrment 3 years ago? Why on earth is it so high?
I thought it was just a quarter of deferred payments and then everything went back to normal except the deferred payment that was a one time deal.
I guess I lost track of that part of it.
So tell me again why the county owes almost a million dollars?
Maybe we haven’t saved enough…..
Here is some of the refresher course from blue Virginia
http://www.bluevirginia.us/showDiary.do;jsessionid=25627AED98C79C8BA307981A0CF28825?diaryId=6345
A little bit off but Jennifer Murtha of the tax and consulting firm McGladrey who does the county’s internal audits found no fraud in the $25 million mistake in the county budget. The Sheriff must be looking up recipes for crow 😉
You have to be kidding. Buzzard is probably as good as it gets.
The words “I was wrong” don’t come easily to some folks. It’s easier to just assassinate the character of Ms. Murtha.