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Council facing budget shortfall
Council gets bad budget news
BY EMILY BATTLE
Date published: 11/19/2008
BY EMILY BATTLE
Fredericksburg City Council members want to avoid layoffs at City Hall if possible, but everything else is on the table as Fredericksburg tackles a difficult budget for the fiscal year that begins July 1, 2009.
Like their counterparts in cities all over the state, Fredericksburg officials are beginning to look at how to balance the current budget, which runs through June 30, 2009, and how to plan for the next one as a sluggish economy cuts into their revenues.
With sales tax revenue continuing to decline and the possibility of decreasing property assessments on the horizon for next year, this is not a fun exercise.
Nothing about next year's budget has been set in stone yet, but there is a real possibility that city schools--the largest single part of the city budget--could get less local money next year than they did this year.
It's also possible that some of the nongovernment nonprofit groups that have been funded in the past by the city could get no local tax money next year.
At a work session last night, city budget officials tried to get across to council members the gravity of the situation they face as they plan next year's budget.
The falling sales tax collections, along with a decline in other smaller taxes, means that the city could face a shortfall of as much as $1.2 million in its current spending plan.
To try to avoid that, Fredericksburg has tightened its 30-day hiring delay to a full-out hiring freeze on positions that aren't crucial to public safety.
That means, for example, that while Fredericksburg is going through the process of looking for a new economic development director, it's not realistic to expect someone to be in that position until next spring.
"It's not because we can't fill it any faster, it's because we want the savings from that empty position," City Manager Phillip Rodenberg said.
As they look to the next budget, council members could be starting with a gap of around $5.5 million between expenditures and anticipated revenue.
That is largely because $4 million of the current $76.5 million city budget is funded not with recurring revenue, but with reserves.
Read more stories about Fredericksburg
Date published: 11/19/2008
Most recent reader comments:
Justice...
(posted by
morganne
, Nov. 19, 2008 8:39 am)
The city has no choice but to proceed with the court complex. If they don't do it themselves, the judges are going to make them whcih is their right. Better to do it on the city's terms then the judges. And while yes, times are tight interest rates for debt service are low as are the costs associated with building it. It won't be cheaper when the economy recovers.
Council could have saved $10,000.00
(posted by
Justiceforall
, Nov. 19, 2008 7:03 am)
This year by not sending a crew to the VML conference. Forgo the new court complex until the city can afford the debt service associated with it.
Higher taxes are inevitable!
(posted by
Rainbow
, Nov. 19, 2008 6:13 am)
Come on now, City Council. We all know that you will have to raise taxes. Real estate assessments have to go down since 2007, so a real estate tax rate increase is inevitable. And, since you are at it, that would be an easy way to cover the shortfall---up the rate a few more cents!
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