All Virginia localities are to publicly prepare fiscal year budgets which are to be balanced and in effect July 1 of each year. Christiansburg adopted a proposed budget before that annual deadline, yet in the current form it requires significant withdrawals from Town reserve funds in order to be balanced.
Elected officials will continue to rehash passing along water and sewer fee increases and are betting on discretionary spending during a period of record unemployment to fill this huge hole (which has been growing at an alarming rate for nearly a decade). In other words, Council is still trying to balance the adopted budget with expenses far outstripping revenue.
That timeframe corresponds with rapid residential development in Christiansburg -- and has resulted in more mobile or crowded school classrooms and staggering public debt, reduced services and increased urban flooding issues, and failing infrastructure as marked by sewage commonly invading private homes, sinkholes and erosion, and crumbling roadways which are poorly marked for safety.
Yet elected officials and citizens were told growth would benefit residents and business, increasing revenues while providing low tax rates and fees. The difference today is simply that veils of secrecy are slowly being pulled away, allowing community members to see the effects of a long running shell game.
The term shell game is used because of numerous contracts, the details of which Council itself often remained unaware.
While the Aquatic Center's contract with Virginia Tech remains a sweetheart deal -- even with Council's direct intervention in revising the Town Manager's draft contract -- there will be many more contacts needed as this facility must become a major event venue instead of simply a community recreation asset. As it gears up and gets going, real property tax rates will probably need to be increased to cover related expenses -- or other needs will remain on the back burner for another decade or two. As it stands now, single adults will have to pay the highest fees to access this facility.
Shell game is also appropriate when citizens view videos of the budget process. At the June 15 budget work session, it appeared Council had identified another $525,000 in cuts. Had they been given more time by starting this process earlier, readers could expect they may have identified other ways to gain financial efficiencies -- without considering the $8 Million "wish list" items. Readers can presume Council intended these types of budget issues to disappear when they decided to fund and hire a Treasurer/Financial Director.
Instead, one week later those cuts had mostly disappeared. Workers Compensation was actually going to cost an additional $190,000 a year. Step Increases amounting to nearly $160,000 reappeared (including top management positions) while furlough savings appeared squishy. Since Workers Compensation is an insurance program required by law and is based upon payroll and by job categories, it should be something that can be estimated -- especially if the client (the Town) has had claims due to on the job injuries or deaths, as Christiansburg has experienced. It is also something which should have gone out to bid, through Requests for Proposals to ensure the best rates. A scan of the town's web site, however; shows an absence for routinely seeking bids for this or many other services.
Then citizens see where a cable franchise was allowed to expire in 2009, providing less revenue to the Town. Yet the July 6 agenda includes consideration of a JetBroadband non-exclusive contract "renewal" plus another item to transfer a franchise to Shentel Cable. This is the first regular meeting of the new fiscal year, with May election winners waiting to be seated until Sept. 1.
Now the Mayor presents a proposed contract for the Town Manager, stating it is a model document. If all the possible perks were included, this could cost Christiansburg residents and business an easy half-million (incumbering all town citizens with another $500,000+ obligation should the incumbent leave or be relieved of his duties). Given the above issues is this warranted now, over and above $128,000 per year plus private offices, gym, travel perks and a vehicle?
Council needs the support of citizens -- residents and business operators -- to ensure they are provided timely and accurate information. These elected officials have ultimate accountability of fiduciary responsibilities to voters.
Come to the municipal building on Tuesday, July 6 at 6:30 pm to show your support for open government and fiscal responsibility. The regular meeting will commence at 7:30 pm.