Spotsy facing less in revenue for the coming budget year

BY DAN TELVOCK

Date published: 11/14/2007

BY DAN TELVOCK

Spotsylvania supervisors face a sobering budget if assumptions revealed last night are true.

County staff told supervisors that they shouldn't expect any significant new revenue for the next budget that will be presented in February. But that doesn't mean the local economy is in a crisis situation.

Some supervisors became upset when staff provided an analysis that showed an estimated $9.4 million shortfall for the fiscal year 2009 budget. Such a deficit would require a 6.5-cent tax increase . The current tax rate is 62 cents per $100 of assessed value.

County Administrator Randy Wheeler stressed that the analysis is not a recommendation to increase taxes. Reassessments are this year, and he said after the presentation that staff will have a better idea of property-tax revenues in two months.

"It is simply an estimate based on a series of assumptions," Wheeler said.

Supervisor T.C. Waddy said staff shouldn't disclose the information to the public if the numbers aren't solid.

"That just upset half the people in Spotsylvania County," he said.

"More than half, actually," quipped Supervisor Chris Yakabouski.

For the current fiscal year 2008 budget, there is an anticipated $2.4 million deficit, said Budget Officer Mary Sorrell. But that deficit is offset by an estimated $2.6 million in unspent money.

"We don't typically spend 100 percent of what is budgeted," she said.

"Vigorous" commercial growth and healthy reserves have the county in better shape than other localities in Virginia, Wheeler said.

"The reason we don't have to panic and many others are is because we planned for it, and that's worth noting," he said.

Wheeler said he expects flat state funding for local governments. The $600 million shortfall with the state budget means about $19 million less for local governments across the state, he said. "Proportionately, it is not a big hit," he said.

To prepare for any deficit, Sorrell recommended several actions, including a temporary hiring freeze on all non-public safety jobs.

Wheeler said a 90-day hiring freeze is already in place for the Code Compliance Department, which has an estimated $1.2 million shortfall that can be directly tied to the slumping housing market. That department is getting less in fees for its various services.

"There are a number of jurisdictions that are being forced to do things in the short term much more significant than we are," Wheeler said.

Date published: 11/14/2007

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