Charlottesville City Council passed its 2009 fiscal year budget Tuesday, which totals $141 million, an increase of 4.7 percent from last year. The commonwealth, however, recently notified Council that it expects to withdraw about $500,000 in funds, meaning Council will have to hash out a modified version by August after the exact amount to be withdrawn is determined.
Before voting on the budget, Council held a series of public hearings at which city residents were invited to express their concerns regarding the budget. Vice Mayor Julian Taliaferro said "the input we got from citizens was really helpful," but noted "obviously, we [could not] make everybody happy."
Taliaferro said this year Council specifically asked the City Budget Office to create a budget that did not grow more than five percent from last year.
"I think we had a smooth budget process this year and I think the city manager and staff did a good job putting together the budget," Taliaferro said, adding that Council "doesn't always agree on everything, but once we come to a consensus, we try to be unified in what we do."
Council member Satyendra Huja said the most important aspects of the new budget include fully funding the Charlottesville school system, increasing funds for city transit services, providing $1.4 million for affordable housing and funding several new youth programs.
Council, he added, decided not to raise real estate tax rates this year, alleviating concern some residents previously expressed. Although the real estate tax rate will remain at 95 cents, Huja noted that tax revenue will nevertheless increase because some property assessments have risen. This increased tax revenue will provide for the budget increase.
One of the more debated concerns voiced at the public hearings was the amount of funding provided to the school system. Despite concerns raised about the system's high level of funding given schools' performance, Taliaferro said Council decided to fully fund Charlottesville schools.
Thirty percent of the money approved in the budget as part of the increase is allocated for the school system, Taliaferro said, adding that Council believed "the new superintendent is moving in the right direction and [Council] wants to support her as best [they] can."
Council is also interested in reducing high school drop-out rates, Taliaferro said, a goal that may benefit from full funding.
While schools will be fully funded, money allocated for affordable housing, however, was reduced from $2.1 million in the 2008 fiscal year to $1.4 million in 2009. Huja noted that "last year, $2.1 million was an anomaly, and the funding increased quite a bit." He added that the city hopes to make up the difference in affordable housing funding using strategic initiative funds, which are used for economic development in Charlottesville.
Similar but smaller decreases in funding also are on the horizon. Huja said this year's budget was "really tight," adding that "it will get even tighter" because the commonwealth expects to cut its contribution to the budget by about $500,000.
"By August, we have to figure out how to cut another half a million from the budget," Huja noted.