Staunton City Council to address 2010 budget, tax rate at meeting tonight

The Staunton City Council is expected to adopt this evening a $94.2 million budget for fiscal year 2010, which reflects a 90-cent real estate tax rate.

Of the total budget amount, $45.6 million is general fund money, with another $48.2 million coming from enterprise funds. The majority of enterprise money — $28 million – is in the education fund, $10.7 million of that coming from the city, with additional money coming primarily from state and federal sources. An education reserve account of $337,743 has also been established.

The 90-cent per $100 of assessed value represents a 3.4 percent tax increase over the revenue-neutral rate of 87 cents. The real estate tax bill on a $225,000 home would increase by $67.50 to $2,025 yearly.

Assistant City Manager Jim Halasz said the city was forced to cut needed, rather than just wanted, items.

“The difficulty is that you have to get into the nuts and bolts of most operations and start cutting things out,” Halasz said.

The city is delaying purchases on such things as equipment and police vehicles, Halasz said, while slashing office supply accounts.

Halasz said the city would continue the hiring freeze, which has been in place since June 2008, and would continue to not fill vacant positions.

It will also continue to keep the library closed on Sundays at least through June 2010, cutting back on grass mowing and other things “that don’t affect the public in a widespread fashion,” he said.

Lights in the parking garages will continue to be turned off at night. 

Halasz said the city is still able to handle “most” calls for service, though he acknowledged some complaints due to delays in response times for service or inquiries. For things like permits, information requests and answers to questions, “it’s going to take a little longer,” he said.

“The difficulty was weighing the benefits of saving the money against the services that are not provided, or the maintenance, and the repairs that are not done,” Halasz said.

Also, an amendment to the fiscal year 2009 budget to cut it by an additional $1.1 million – on top of the $1.3 million it already cut – is expected to be introduced.

Halasz said the city continues to suffer from declining revenues, including a drop of $715,000 in sales tax money.