Christiansburg’s Finance Committee held its third meeting relative to the fiscal year 2009-2010 budget on Wednesday. Committee members present included Chair Ann Carter, Councilman Mike Barber, Town Manager Lance Terpenny, Assistant Town Manager Barry Helms and Assistant to the Town Manager Adam Carpenetti. Councilman Ernie Wade was also present in the audience, and was later joined by Councilman Henry Showalter.
Based upon previous discussions, a revised Capital Improvements & Equipment Outlay was reviewed. This reflected some changes to both expenses and revenue allocation.
Councilman Barber had expressed concern about continued funding of the Smart Way Bus, stating his impression was that it would become self-sufficient at some point and questioned whether or not town residents derived any benefit. The Town Manager indicated he had spoken with the Metropolitan Planning Organization’s (MPO) Dan Brugh, who had stated that if the town withdrew its funding the service may be stopped.
The Smart Way provides a commuter route between the downtowns of Blacksburg and Roanoke, with stops at the Roanoke Regional Airport. There are two park-and-ride stops in Christiansburg on this route which has seen increased ridership. There has not been data collected to determine the actual number of Christiansburg residents who may use this service, however. Given the county and Town of Blacksburg were not in a position to absorb the 1/3 portion of expenses currently funded by Christiansburg, the Finance Committee left the funding in the proposed budget. Councilman Barber asked the Town Manager convey the message that future funding for this service would be contingent upon this information being provided.
The Town Manager reminded council that the multiplier allowed by State Code for the Law Enforcement Officer Retirement (LEOR) fund, a supplement to other pension programs, had been requested last year. Council had not included this increase last year and it was again being requested by Chief Mark Sisson. The Finance Committee declined to increase this contribution from 1.7 to 1.85%, which would cost an additional $80,000 per year.
Mandatory garbage collection was briefly discussed, with Mr. Helms stating this would be “a wash” financially, because another vehicle and crew would be necessary in addition to increased landfill tipping fees. As it stands today, the trash collection fees are $200,000 less than actual costs and so is subsidized by General Funds. The actual number of town garbage customers or households not paying for this service wasn’t provided; however it was noted that private haulers also served town customers and paid business license fees. Some town residents had spoken before council at previous meetings, stating they were opposed to mandatory collection if curbside recycling was not also being provided.
The committee agreed to pass increases for water and sewer treatment costs on to customers, noting this represented an additional average of $2.50 per month. Discussions continued on shifting this from a bi-monthly to monthly billing cycle. This is a future objective as the bi-monthly cycle is perceived as being more difficult to remember or budget for, yet will be more feasible as the town begins to replace old meters. This service is also subsidized by General Funds, with the new fees reducing the deficit by about $120,000 per year. The remaining water/sewer deficit will be about $900,000 a year.
Expanding bus service within the town had been anticipated, with $163,000 already included in the budget. Councilman Barber stated that holding personal household expenses down was on everyone’s mind, and being able to ride the bus and save on automobile maintenance and gas could help. The Town Manager indicated he had not thought this would be the year to implement such service due to current economic conditions, however; because of the interest and affordability of the program it now appeared feasible.
Mrs. Carter and Barber both requested more information which would allow council to see the costs associated with employee step increases, as contrasted or in addition to cost-of-living increases or simply providing a flat percent increase. Beyond four approved new positions, hiring freezes are in place for six open positions in the Public Works Department. Funding requests by Round the Mountain and the Economic Bridge were removed, while requests made by 20 other organizations were retained. Those requests represent approximately $290,000 and, several of which include increases from previous years.
Funding for the regional Tourism Development Council represents $104,214 included in that total. This is approximately $20,000 less than funded in the previous budget, with those funds redistributed throughout the General Fund per the Town Manager. It appears that $8000 is being earmarked for Downtown Events, presumably to offset overtime costs incurred by the town. When council voted to make this reduction to a joint program (also funded by the Town of Blacksburg and Montgomery County), Councilman Wade had the motion amended to stipulate retained funds were specifically dedicated to tourism development within Christiansburg.
Council members also requested data on increasing building or planning related permits or fees, comparing the town’s current fee structure to other regional localities. Barber noted this was a simple cost of business, with the expense passed on to consumers. The Town Manager noted this would not have any significant impact to revenues generated during this budget year, yet would keep the town’s fee structure aligned to similar communities.
Each year, council tries to reserve funding of $275,000 for specific future projects. These projects currently include inspection software, rescue and fire trucks and a new emergency service building for the northern section of the town. This funding is again included in the proposed budget.
The town’s budget is balanced by taking $523,000 from reserved funds, similar to a personal savings or “rainy day” account. This does not impact or extend the timelines for planned capital projects which were noted, above. No business license, real or personal property taxes or other fee increases are being proposed or discussed. No services are being reduced, such as the town's recycling collection centers or bi-annual trash clean up.
The Assistant Town Manager stated he would update the related spreadsheets to incorporate changes made during this meeting, and distribute these electronically to all council members. This would provide all council members with an opportunity to review the information prior to the April 21 meeting, directing any questions to the Finance Committee.
A work session is expected to be held during that meeting, allowing council members to discuss the budget in detail. A Public Hearing on the proposed 2009-2010 town budget is expected to be included on the May 5 agenda.