Fredericksburg's budget for next year is still very much up in the air, but council members said last night they'd like to look for ways to restore the salary cuts that take effect this month in City Hall and to restore some of the cuts proposed for the city schools.
To do those things, they would likely have to raise the meals tax and spend even more one-time reserve money than is already proposed.
And before they're finished making those decisions, council members will have to consider whether they want to raise personal property taxes on vehicles to make up for a loss in assessed value.
The potential impact of that loss has not been quantified yet, but Spotsylvania and Stafford counties have both proposed raising their vehicle taxes to make up for lower car values, as people hang on to old cars longer and the market puts a lower value on SUVs and other large vehicles.
Restoring city employees' salaries appeared to be the top priority of most council members during a work session last night.
With a 3-cent hike in the real estate tax rate already proposed, council members discussed looking to the meals tax to find the $285,000 it would take to restore the 1 percent to 1.5 percent cut employees will see in their paychecks starting this month.
Fredericksburg's tax on restaurant meals and prepared foods is 5 percent now, compared to 4 percent in the neighboring counties.
The city could gain an estimated $440,000 by raising it by a half percent, or $800,000 by raising it 1 percent.
Council members are looking at at least a half-percent hike to provide money for employee salaries, but they didn't commit to anything last night.
Council members also heard from the city school board last night.
The city manager's proposed budget for next year would give the schools $1 million less than they got this year. The schools so far have found enough cuts in their budget--despite losing nearly $600,000 in state funds--to narrow the gap to $961,000.
Council members last night discussed using as much as $400,000 in reserves that had been set aside for schools and the regional jail to help make up the gap with the school system.
There's no agreement yet on exactly how much of that money would go to the schools. School board members last night didn't give many specifics, but they told the council members that services in the school system would have to be cut to make up the shortfall.
Emily Battle: 540/374-5413
Email: ebattle@freelancestar.com