Tax Increase, Raises in City's FY2014 Recommended Budget
Fredericksburg City Manager Bev Cameron's presentation to City Council begins the FY2014 budget review process.
Fredericksburg residents could see a real estate tax increase, and school and city staff could receive a salary adjustment if the City Manager's fiscal year (FY) 2014 budget is approved by City Council.
The total general fund recommended budget is $82.6 million, an increase of 5.13 percent over FY2013.
"I believe we have put together for you a very solid and responsible spending plan," City Manager Bev Cameron told City Council. He and city staff have been working on the budget since November.
The budget proposes a $0.03 real estate tax increase per $100. That would raise the tax rate from $0.74 to $0.77 per $100 valuation. "A typical home owner would see an increase of $77 a year, assuming a home value of about $256,000," Cameron said. He estimated the increased cost at $6.40 monthly.
Employee compensation is included in the budget. The total increase for most city employees would be three percent of salary, consisting of a two percent cost-of-living increase and a one percent adjustment for the employee retirement contribution.
The recommended budget also reflects increased costs for providing benefits. "Forty percent of payroll expenses are for pension and health benefits," Cameron said. The FY2014 recommended budget includes $4.57 million to provide health insurance to city staff -- not including school staff, Cameron said.
To help "bend the curve" on benefits, Cameron said part-time city staff would now be limited to fewer than 30 hours weekly. "The affordable care act requires employers to provide health insurance to staff working 30 plus hours," Cameron said.
A key component of the city budget is the $26.128 million school budget, adopted by the school board March 4. The amount is a 1.2 million increase over FY2013. Funding for schools represents almost 32 percent of the city's general fund for FY2014, Cameron said.
Additional funding in the school budget would provide items including a three percent salary adjustment for school staff (two percent cost-of-living and one percent Virginia Retirement System reform phase-in); the addition of six full-time and four part-time positions in elementary education, math and foreign languages, to meet increased student enrollment; and $590,000 for buses, computers and building maintenance items.
The budget includes transfer of almost $7.2 million to the debt service fund. The $682,475 increase over FY2013 includes the first year of full cost payment on the debt service for the $35 million in general obligation bonds for construction of a replacement courthouse and renovation of the existing General District Court Building for use by the Juvenile and Domestic Relations Court.
Other budget items include:
- $134,800 for two additional full-time medic positions in Fredericksburg's Fire Department. The department operates two Advanced Life Support ambulances 5:30 a.m. to 6 p.m. Monday through Friday. The addition of these positions will move the city toward its goal or providing 24-hour seven-days-a-week advanced life support coverage by paid city staff. Currently surrounding jurisdictions aid the city in providing EMS services.
- $114,090 for the addition of 3.5 full-time equivalent positions for the Fredericksburg Sheriff's Office.
- $90,995 for the hiring of a purchasing agent for the city.
City Council will review the recommended FY2014 budget in six study sessions scheduled for March 19, 26, and 28; and April 9, 16 and 23. The first reading of the budget will be at the April 23 City Council meeting. The second reading and final adoption will be at the May 14 City Council meeting.
The complete FY2014 City of Fredericksburg City Manager's recommended budget can be viewed online.
The city manager recommends reading the transmittal letter, which heads the document and summarizes the recommended budget. "The transmittal letter helps provide explanation and perspective which may help you see the trade offs that lie underneath my recommendations," Cameron said.
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1Ronald
8:22 am on Thursday, March 14, 2013
Employee compensation is included in the budget. You bet! And your real estate tax hike will pay for this. And the $1.2 million increas in school budget.
"Predictable Bev" is at it again. Caviar for staff, bread and water and "might have to sell your life-long home" for Fredericksburg's citizens. But, then again, WHO CARES? And how about that $19,000 CITY MANAGER BEVERLY CAMERON gave to the hard-core homeless shelter last year? Remember, that's the SECOND shelter, in addition to the other one. The one at 1013 Princess Anne St that dumps them all on downtown streets? YO! TOURISTS! See the REAL Fredericksburg! Don't forget to come and visit us again. Sometime. But remember, that $19,000 was also requested AND DENIED to the Fredericksburg Volunteer Fire Company for recruitment. No worry for Bev or manpower to fight his fires.. HE lives in Stafford County.
Paul Mann
2:44 pm on Thursday, March 14, 2013
Wish I could get a "salary adjustment," but alas, I work in the private sector. We don't get raises (and have all the bene's), but we sure pay for the public employees that do!
1Ronald
3:14 pm on Thursday, March 14, 2013
I don't get raises, either. And I work in the public sector. We have a highly unusual situation here in Fredericksburg that shows no promise of getting better. What we badly need is an external Fiscal Review. If you're spending money you don't have and going deeper and deeper in debt over bad leadership you have a clear case of malfeasance which is wrongful conduct by a public official. Miisfeasance would be spending more than needs to be spent, than can be spent, and spending it anyway. The same situation happened in Miami but was stopped dead in its tracks by former Philadelphia Eagles owner and self-made billionaire, Norman Braman, who felt enough for the little guy--the everyday taxpayer--that he financed a recall vote and kicked the elected official out. This was reported in the New York Times on March 15, 2011. Miami's then mayor warned residents to brace for tough times (no warning for us here in Fredericksburg) but gave his staff hefty raises while raising property taxes 40%. However, In our case, the City Manager is appointed by City Council. We know that the chickens will come home to roost. Unfortunately it will be later rather than sooner.
Hamilton
10:06 pm on Thursday, March 14, 2013
Most council members think the citizens are apathetic and do not care because only a few speak out. 1Ronald, you are well spoken and knowledgeable but do you speak out publicly to let Council know how you feel? Or, do you feel somewhat muzzled because you work in the public sector (I can understand) and 'they' could make it hard for you and your family if you speak out publicly? Remember, this is America and many of us served our country and sacrificed for you and others to have the right to free speech.
btw, i agree with much of your dialoge
1Ronald
7:42 am on Friday, March 15, 2013
Thanks, Hamilton. I have made my views known to the Council member who represents my Ward. The problem is there are two factions on Council. One faction sees the fiscal problems that are looming ahead and wants to exercise caution on spending. The other side apparently feel that they will be out of office by the time the major problems of over-spending occur and can lay the blame on someone else. Counting on city residents having short memories, I guess. This is compounded further by failures among those within the otherwise fiscally responsible faction by times drifting off course. Bea, Fred, Brad, and Matt are working, mostly, on behalf of the best interests of the city and its residents. I am confused about what appears to be "the two faces of Brad" on Riverfront. Sometimes he's with us, sometimes he isn't. This is important because it's money we don't have. And we've already commited to the $31.5 million courts project in addition to having to pay down debt on the new police station, and the $5 million bus station which has no room to park FRED buses and requires rental space elsewhere. Also, we're paying on the debt of the downtown parking garage and two (2) new schools
Hamilton, your're right on the apathy. Most people don't complain as long as things are going ok for them. It's only when their lives are directly impacted that they rise up but mostly when it's too late and all over.
1Ronald
12:42 pm on Friday, March 15, 2013
The city's problem is exacerbated by ongoing and continued loss of taxable properties that are being swallowed up by non-profits. The statutory intent of Title 26, Sec. 501(c)(3) was to exempt houses of worship from contributing to a fair share of a municipality's tax burden. Again, I emphasize statutory intent before someone provides me with their regulatory interpretation which is always open to question, even when codified by a governmental agency.
Again, the intent of Congress was to exempt houses of worship, not to include the vast accumulation of property that we have seen in recent years in the city solely for a "whoever has the most property wins." This does not mean a requisite building "walk through" from one block to another as in the loss of that massive commercial property in the 1000 block of Caroline St, and nearly ALL of the western side of 1000 Princess Anne St. NOR the gathering of multiple single family residences, encompassinig multiple city blocks, in College Heights to create a fortress of power--all of which should be taxable property, regardless of ownership. The city has been neglectful in failing to define taxable property and has winked and looked the other way each time we lose another commercial or residential property in the name of religion. This is money, folks. YOUR money. Money that gets sucked down the drain each time we lose a taxable property. And there is no end to it.
Hamilton
12:44 pm on Friday, March 15, 2013
So now we have two citizens who reach out to their elected officials. Where are the others and do they only care when it directly affects them? What about doing what is best for the community? What about 2 years and 5 years from now? So, if >60% of our housing stock is rental, maybe we should start taxing the hell out of the residential rental owners to make up for a portion of this apathy that gives the green light to council to tax and spend.
1Ronald
12:55 pm on Friday, March 15, 2013
AND, the Fredericksburg Dept of Economic Development. What have they done? What are they doing? The entire staff. Tourism is great but it won't pay the bills that are bearing down on all of us, as city residents.
Where is the clean, green industry that Economic Development is expected to bring to the city? The jobs? The new taxable base? Here, accountability should be #1 in supporting and sustaining such a Dept--in any municipality--and each and every staff member should be an accomplished rainmaker and be able to provide meaningful results to support the Department's existence and their annual salaries. Again, this falls under the responsibility of the Council appointed City Manager, and when and where there is failure to act, it becomes Council's responsibility to step in and provide oversight and make it happen. One way or another. After all, folks, they are representing YOU and we desperately need to see some "hands on" concern for where we're headed and why nothing is being done to soften the blow.
Hamilton
2:10 pm on Friday, March 15, 2013
We need to measure the effectiveness of Economic Development. Council's goals (written by city staff) for this year included : "Increase the prosperity of our citizens and businesses and ensure adequate revenues by establishing Fredericksburg as a pre‐eminent national tourism destination and by pursuing economic development and re‐development opportunities in a business friendly environment." big words
Their initiatives are:
a. Prepare and adopt a unified development ordinance for zoning, subdivision, and land use regulation (legacy)
b. Be better positioned to take advantage of, and identifying; funding opportunities 1) Work with EDA in putting together a City marketing package; 2) Establish a working group for follow‐up with state/ federal / regional officials on economic development opportunities (new).
c. Review tourism efforts and take positive steps to increase regional efforts to leverage state grants; increase financial support (new).
d. Local spending – Buy City business first; City procurement policy revision (new)
Initiative (a) is being done by another department. Initiative (b) says what? Initiative (c) is self serving... to increase financial support? Initiative (d) has been there since 2009 with no support. Even the City Manager went out of town and out of state to sole source over $100,000 in professional services - all behind closed doors to the exclusion of local and state business.
Just what is Economic Development accountable for?
Dave McLaughlin
1:04 pm on Thursday, April 4, 2013
Council has now proposed announcing a Real Estate Tax increase of nine cents. Given the two cent increase last year this would be more than a 15% increase. They believe the increase is required even though the housing market is recovering (more new houses and higher appraised values) meaning a greater tax base. City Manager’s budget also includes an increase of water rates by 7% and sewer rates by 9%.
1Ronald
2:30 pm on Thursday, April 4, 2013
They haven't proposed announcing. It announced as a 4" x 4" paid advertisement in the Free Lance Star 2 days ago where it's now a done deal unless citizens go before Council before the final vote and plead for mercy. Remember, it was the Democratic side (the Greenlaw Team) that proposed a 5 cent hike. However, this was voted down by a 4 to 3 margin by the tax and spend Republican gang of 4 who want to double it to 9 cents per hundred dollars of appraised value. Folks, all you need is one (1) of the tax and spend Republican Gang of Four to defect to the other side to get the 5 cents per hundred rate. Bea Paolucci, are you listening? Bea wants to lower the rate for her downtown retail business Ward by 1 cent and force this as an increase on residential home owners. Unfair, but it surely beats 9 cents per hundred. Bea, you are our best chance to cross over. Next in line to switch would be Brad Ellis. Give it some thought Bea and Brad. Both of you. And the 5 cents crowd would also take your vote, too, Matt. But, I'm not holding my breath. And it's not lost on any of us that both camps are exceeding the City Manager's recommendation of a 3 cent per $100 increase.
1Ronald
2:42 pm on Thursday, April 4, 2013
With apologies to Elizabeth Barrett Browning, and to paraphrase her great and unforgivable work:
How do I tax thee? Let me count the ways.
I tax thee to the depth and breadth and height
My soul can reach, when feeling out of sight
For the ends of Being and ideal Grace.
I tax thee to the level of everyday's
Most quiet need, by sun and candlelight.
I tax thee freely, as men strive for Right;
I tax thee purely, as they turn from Praise.
I tax thee with the passion put to use
In my old griefs, and with my childhood's faith.
I tax thee with a tax I seemed to lose
With my lost saints,--I tax thee with the breath,
Smiles, tears, of all my life!--and, if God choose,
I shall but tax thee better after death.
What a crying shame we have this kind of representation on Council. That cares naught for any who have toiled, to the polling places, wasting their gasoline and time to cast that all important vote only to have it turn on us like a winged bat deep into the night.
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