Continuing a look at how the Town of Christiansburg generates and spends tax dollars, we saw a 2006-07 proposed budget of $31 Million. It reported collecting over $16.7 Million from local revenue sources to the independent auditor for the state for the same time period.
The difference between the two amounts -- roughy $14.3 Million -- can be attributed to carry over or bond monies, and other miscellaneous charges and reimbursements (not local
tax sources).
About 3% of the budget was used to retire public debt related to the Harkrader Sports Complex and future aquatic center. Less than 1% was earned through interest from bank deposits and investments.
Approximately 12% of the town's budget was generated from state tax revenues, combining both categorical and non-categorical sources.
The three largest sources of tax revenues for the town were:
1. Prepared Meals Tax
2. Property Taxes (including real estate, personal property, machinery & tools)
3. Business, Franchise and Bank License Fees
Total lodging taxes -- before contributing 1% to the Tourism Development Council -- represented an additional 4% of the $16.7 Million derived from local tax revenues.
Taxes on public utilities, paid by consumers -- residents or business operators -- contributed 2.7% in local revenues. Cigarette taxes -- which may or may not include all tobacco products -- contributed another 3.4%.
In preparing the town's budget for fiscal year 2008-2009,
questions for citizens to ask should include:
A. When the meals tax was introduced in the early '80s, it was promoted as a transient tax -- something that would primarily be paid by visitors. It was capped at 4%.
What percent of the total collected actually comes from town residents, given that eating or dining habits have changed dramatically over the past 25 years? What is the maximum amount, if any, the town can apply to prepared meals? At what point does this tax deter consumers or tourism, or has it already?
B. The town has always used the county's real property values, rather than conducting its own reassessment -- a fiscally prudent approach. Historically, council allowed its real property tax rate to remain unchanged, therefore generating larger real property tax bills for town residents after each county reassessment. All county residents should expect the county rate to increase when the
Board of Supervisors finalize its 2008-09 budget.
Will council add any more to these tax bills for town property owners? Why do Christiansburg residents and businesses pay for personal property taxes to both the town and the county, yet Blacksburg residents do not?
C. Statewide and regionally, other localities have focused and specific efforts for economic development, tourism or community relations. Christiansburg is currently known as the regional retail hub, yet can point to several under-utilized mall properties and a continuing shift out of its borders. Competition for major retailers and other new businesses is fierce.
What is council itself doing to promote or attract these potential sources of tax revenues? What is being done to retain -- or sustain -- existing businesses? Are there grants or incentives that could encourage redevelopment? At what point does the local tax burden on businesses close their doors or encourage them to move?
D. Effective with the 2005-2006 fiscal budget, the town increased the transient lodging tax from 5% to 7%. It earmarked 1% of that towards a regional tourism development initiative. Again, the premise was that such an initiative could reduce pressure for raising taxes that impact residents.
What results can the town point to for the funds that were given to the regional group, of which it is a member? Since the town last increased this tax by 2%, can council show the other 1% increase they retained benefited economic or tourism development? What is the maximum amount, if any, the town can apply to lodging taxes? At what point does this tax deter consumers or tourism, or has it already?
E. Many services are provided to town residents and have associated user-fees attached to them. These include water, sewer, or garbage services; building and zoning or development related services;
fire and rescue services; and recreational facilities.
What percent of the costs of these services are covered by user fees? How much of these costs are subsidized by other tax sources or those who do not -- or cannot -- access these services? How does residential growth impact your tax bill from the county, which has to build larger schools in response to growth within the two towns? How does this growth impact infrastructure (water/roads) costs and does this potential new revenue offset or increase those expenses? These are questions council members should be able to respond to, as they have to manage limited resources while balancing increasing needs and costs. Better still, citizens could inform themselves if this type of data were available on the town's website.
Citizens need to be able to readily access budget information, and be engaged in its development. Ultimately, whether one understands or agrees with individual council member's budget priorities -- town residents foot the bill and should understand how these decisions are made.
Town council meetings are the first and third Tuesday of each month. Meetings are held at Town Hall at 7:30 pm. The budget process will include at least two public readings and a hearing. Now is the time to engage your council members -- and not because it's an election year -- to let them know what services or priorities are important to you.