STAUNTON — Higher taxes, higher water and sewer bills and reduced services factor into Staunton City Manager Stephen Owen’s proposed $94.5 million fiscal year 2011 budget, presented to council Thursday.
“The days of doing more with less are over,” Owen said. “We will now be doing less with less.”
While real estate and meals and lodging tax rates would remain the same, Owen’s budget includes increasing the city’s personal property tax rate from $2 to $2.40.
Of the increase, the 28-cent portion would offset $400,000 in lost revenue from eliminating the vehicle decal. The remaining 12-cent portion would fund street rebuilding and paving.
Owen also proposed a 10 percent increase in water rates and 15 percent increase in sewer fees to cover debt service for major water line projects and state mandated upgrades to the Middle River Wastewater Treatment Plant. The average water bill for a family of four would increase by $18.72 each year while an average sewer bill would increase by $43.02 per year, officials said.
The budget also proposes reducing library hours by six hours per week, closing the Montgomery Hall Park swimming pool and reduced funding for parks and building maintenance.
“We’re doing everything we can to make this up and we are committed to maintaining quality services,” Mayor Lacy King Jr. said.
On top of already tough economic times, the city is expected to lose 8 percent or $1 million in real estate tax revenue following a reassessment, Owen said. He projects sales tax revenue will fall $50,000 and revenue from recordation taxes, building permits and interest earnings will each fall $25,000.
The city is also set to receive $628,000 less state funding.
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