The City Council on Monday approved a fiscal 2011 budget that holds the current real-estate tax rate and cuts spending slightly.
“It’s the smoothest budget process that I’ve been through yet,” Mayor Dave Norris said in an interview.
The $140.8 million budget that will become effective July 1 cuts about $1.7 million from current spending, or 1.19 percent. The real-estate tax rate will remain at 95 cents per $100 of assessed value. The budget does not cut city staff, though no raises will be given.
“I think we’re pretty pleased with the outcome,” Norris said.
With the unchanged real-estate tax rate, the city is estimating it will receive $49.6 million from that tax, a decline of $799,450 from this year. According to historical budget records, collections of real-estate taxes went from $24.6 million in fiscal 2001 to $50.4 million in fiscal 2009.
The city’s real-estate tax rate has held steady at 95 cents since fiscal 2008, when it declined from 99 cents. In fiscal 2001, the rate was $1.11.
Councilor Satyendra Huja said it was important to maintain the tax rate so that many property owners would see declines in their payments next year. The decision not to change the rate was unanimous.
The fiscal 2011 budget will fully fund the city school system’s request for $40.1 million, a decline of 0.32 percent.
While the city is trimming spending in some areas — including trash and recycling contracts and savings among various departments — councilors have decided to increase funding for certain programs.
Because of a renegotiated contract with the Charlottesville-Albemarle Society for the Prevention of Cruelty to Animals, the agency will get $119,298 more in fiscal 2011. Councilors decided to set aside $110,000 for possible expansions in transit service as well.
The city, for the first time, is giving $25,000 to the Foothills Child Advocacy Center and $10,000 to People and Congregations Engaged in Ministry, a local nonprofit that operates a seasonal homeless shelter. The Charlottesville Police Department will also receive $10,000 for overtime costs.
The budget also contains a $2.8 million economic downturn fund should revenues continue to decline.
The city’s allocation for capital projects comes in at roughly $33.9 million, but the vast majority of that — about $22.2 million — is federal and state funding to pay for the interchange at the U.S. 250 Bypass and McIntire Road.
The CIP sets aside $625,000 for the Piedmont Family YMCA as it builds its new McIntire Park facility, and $1.4 million will be allocated to the Charlottesville Housing Fund for affordable housing projects. A separate account has also been created for bicycle infrastructure projects, the first funding for which will come from a $50,000 transfer from traffic improvements.
The budget’s approval on Monday also marked Gary O’Connell’s last day as city manager. Former Assistant City Manager Maurice Jones starts as acting city manager today until a permanent replacement is hired.
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