Why is simply developing a compliant budget such a chore for Christiansburg leaders?
Chapter 15 of the Virginia State Code defines requirements of Counties, Cities and Towns. Section 2-2503 specifies:
Time for preparation and approval of budget; contents.
All officers and heads of departments, offices, divisions, boards, commissions, and agencies of every locality shall, on or before the first day of April of each year, prepare and submit to the governing body an estimate of the amount of money needed during the ensuing fiscal year for his department, office, division, board, commission or agency. If such person does not submit an estimate in accordance with this section, the clerk of the governing body or other designated person or persons shall prepare and submit an estimate for that department, office, division, board, commission or agency.
The governing body shall prepare and approve a budget for informative and fiscal planning purposes only, containing a complete itemized and classified plan of all contemplated expenditures and all estimated revenues and borrowings for the locality for the ensuing fiscal year. The governing body shall approve the budget and fix a tax rate for the budget year no later than the date on which the fiscal year begins. The governing body shall annually publish the approved budget on the locality's website, if any, or shall otherwise make the approved budget available in hard copy as needed to citizens for inspection.
The Finance Committee held its first meeting on the last possible date allowed by the above section. Is that supposed to be the same as submitting the information to the "governing body" which reasonable people might think of as the entire council, in public?
The "complete itemized and classified" portions shifted around so fast that when the governing body was finally reviewing the 2010-2011 budget, everyone got confused -- staff and Council members, and the public.
Then there was confusion on the vote to increase the meals tax, which wasn't actually adopted until after the deadline -- meaning the increased rate didn't go into effect on July 1 (beginning of the fiscal year) and instead began August 1.
Looking at only estimated revenues from this single source (prepared food taxes), will Christiansburg's coffers actually receive that much money?
For the previous budget year Council expected $4,903,000 but it was last reported prepared food taxes were expected to bring in $4,209,000 by June 30 (a shortfall of $694,000 the end of that fiscal year).
For the current fiscal year Christiansburg's prepared food revenue is projected to collect $5,190,000. With the late start of increasing the rate from 6% to 7%, that still means an average of $432,500 pulled in each month.
Any positive economic boost generated from the town's investment in recreational venues should start appearing, as real numbers instead of simply good feelings or subjective feedback. Meals and lodging taxes from July sales were due and payable by August 20. Any spikes from weekend tournaments (and students returning to Radford University and Virginia Tech) should be apparent to Council by October -- if they are provided with updates.
Monthly updates to Council could include actual to-date revenues and expenses as both total amounts and as a percent of what was budgeted. That information may not become public if Council doesn't ask for it -- or review it as a government body during regular meetings. It is not something routinely posted on the town's official website.
If this information was to be provided to Christiansburg Town Council during the first November meeting, it would include first quarter numbers for fiscal year 2010-2011 (July, August, September).
Meanwhile, will someone (perhaps Council's legal advisors) point out that Virginia State Code requires publication of the approved budget on the town's website -- instead of a draft prepared May 3, 2010? Council has spent ten of thousands of tax dollars to upgrade this site, plus created at least three more positions to ensure this can be an assigned responsibility.