City Manager's Budget Message Fiscal Year 2008 - Staunton - March 30

City Manager's Budget Message
Fiscal Year 2008

To: Mayor and City Council

From: Stephen F. Owen, City Manager

Date: March 29, 2007

Subject: FY 2008 Budget Message

Introduction

Staunton is filled with natural and manmade beauty, shaped and preserved by those who came before us. They built well and wisely, and left us with the remarkable legacy we enjoy today.

Our city is rich with beautiful public spaces like our parks, and public structures of real character. The city is adorned with homes and businesses built by those who obviously valued beauty as well as function.

Yet, as those of the past placed the brick, mortar, stone, wood and metal that today shape Staunton, they must have sometimes wondered if the eventual results of their efforts would be worth it. Building a future takes time, and there are times of great effort when completion seems distant.

Today we are the builders. We've completed some great projects in recent years… The Black Friars Theater, the Stonewall Jackson Hotel and Conference Center, the New Street Parking Garage, Montgomery Hall Soccer Fields, Downtown Streetscape and the Grubert Street Fire Station.

We can take a real pride in what we've accomplished – and take a breath. Like builders before us, we are in a time of hard work, but distant payoff.

The Fiscal 2008 Budget that follows does not contain funds to complete great projects, or bold works. It does fund projects underway or planned that will – in time to come – be important to our city.

The Fiscal Year 2008 Budget does include:

• Funding for the long awaited Churchville Avenue improvements and streetscape being constructed by the Virginia Department of Transportation.
  
• Full funding of the Corridor Overlay planning position.
  
• Full funding for the four new Police officers added January 1st of the current fiscal year.
  
• Four new patrol vehicles and seven new on-board computers that will allow all of our law enforcement personnel to more effectively serve our community.
  
• Funding for Transportation Corridor Planning and Engineering for Richmond Road and Frontier Drive from City sources and Virginia Department of Transportation grants.
• Funds for the Newtown – West Beverley Community Development Block Grant Program to further our continuing effort to rebuild and enliven a long neglected neighborhood.
  
• Increased funding for further expansion of the successful Boys and Girls Club Program.
  
• Funding for our commitment to the John Lewis Auditorium renovation to match that provided in partnership with the City Schools and the community.
  
• And, on the other side, a 20% increase in water rates to continue our program of water main replacement and improvements to our water supply.

Revenue Highlights

We continue to see changes and challenges in our revenue forecasts.

• Real property values have increased to historic levels in the current reassessment, and property tax revenues have also increased significantly – even with a proposed tax rate decrease of four cents to $0.92.
  
• After 3 years of flat or little growth, sales tax revenues are projected to grow modestly in the coming year. However, the expected increase remains well below revenues originally projected in the FY 2007 Budget.
  
• BPOL and Personal Property Tax revenues have increased following the City’s investment in new technology and software for the Commissioner of Revenue and City Treasurer offices.
  
• State payments for the new, consolidated telecommunications tax have lagged and thus the budget estimate for this revenue is based solely on historical trends and vulnerable to unknowns.
  
• The direct tax revenues generated by the Stonewall Jackson Hotel are approaching the level required to meet our debt service obligations and business continues to improve as hotel operations and conference marketing mature.

General Fund Revenues 2008

Notable Expenditures in the FY 2008 Budget

• An additional $883,673 in new revenues has been allocated to the Staunton Public Schools operating budget to meet the needs of increasing enrollment.
  
• The additional law enforcement positions and public safety salary stipends approved and partially funded in the FY 2007 Budget are fully funded, adding $155,000 to salary expenses in the year ahead.
  
• Providing $182,000 for vehicle replacement and on-board vehicle computers for the Police Department will maintain and enhance our law enforcement efforts.
  
• Increases in compensation and the cost of benefits for City employees are budgeted at $771,060, including a 3% increase beginning July 1, 2007.
  
• The one-cent increase in the Lodging Tax recently approved by Council will create a Strategic Tourism Marketing Fund initially budgeted for $60,000, and provide excellent growth potential year-to-year for this important economic development tool.
  
• Total expenditures for new and replacement equipment totals $650,000.

General Fund Expenditures 2008

Capital Investment Program

A proposed one percent increase in the Meals Tax would provide an additional $380,000 in revenues with 50% to be allocated to the Economic Development Reserve and 50% allocated to other capital investment projects.

Summary

Staunton has a long tradition of great effort and accomplishment, of years of work and years of achievement founded on that work. FY2008 is a year of work, of providing the personnel, financial and other resources essential for the renewal and growth of the City of Staunton.

With measured, steady investment and the hard work of an excellent City staff, this proposed FY 2008 budget continues to build on the achievements of the past, and lay the foundation for future accomplishments.