The Charlottesville City budget for the 2005-2006 fiscal year was recently proposed by the budget office and currently is being deliberated by the City Council.
The Council had a work session Wednesday to review expenditures and will hold its first public hearing on the proposal Monday. Council members said they plan to pass the budget April 12.
While the overall budget has increased since last year, no taxes are increasing in the City, according to City Budget Manager Leslie Beauregard. The City has made tax reductions but also has more revenue to spend this year, partly because of the increase in Charlottesville's population and economy, Beauregard said.
Charlottesville Mayor David Brown said the major benefactors of the current budget proposal are education, social service spending and City upgrades. Brown said he was optimistic about the budget but also said Charlottesville's financial strategy could still be improved.
"I'm pleased that we've been able to provide a decrease in property tax rate," Brown said. "I'm concerned about the ability of the City to continue to provide not only the high level of service, but making sure that we meet the needs of the less fortunate in the City."
Although a large portion of City revenue comes from real estate, Charlottesville actually will cut its real estate taxes for the upcoming year. The tax rate per $100 of assessed real estate value will decrease from $1.09 to $1.05.
While the cut in real estate taxes will take money away from the City, the current proposal will save money by cutting several full-time government positions and eliminating the commercial trash services. Beauregard said the cuts were chosen very carefully in order to minimize the impact on citizens.
Council member Blake Caravati said one of the City's budget challenges is that the Commonwealth has shifted the burden for many social programs onto the localities.
"Particularly when it comes to programs for poor people, the state has withdrawn its support," he said.
Caravati said 20 percent of Charlottesville citizens live below the poverty line. He said in order to combat poverty, the City will have to invest more money in education and infrastructure.
Council member Kendra Hamilton said she was disappointed in the state government. According to Hamilton, fixed-income households have faced increasing financial pressure in recent years.
"As the federal government and the state government continually seek to roll back taxes, the things that they are cutting out of the budget impact the local level," she said.
Council member David Lynch said improving education programs could save Charlottesville significant amounts of money in the long run. He said lower dropout rates in high schools would deter juvenile crime.
"Our biggest rising cost in the budget by far is for the jail and the juvenile detention center," he said. "If we could have a 25 percent reduction in the number of kids who go into the criminal system, we could reduce our taxes by 10 percent."
Beauregard and Lynch said the budget proposal most likely would not directly impact the University community. Beauregard said students who own houses in Charlottesville will see a change in their real estate tax rate.
Lynch said the City might make a greater appeal to the student body to help reduce the dropout rate through social service programs such as tutoring.