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Localities tighten belts
Slowing sales tax revenues have led to a hiring freeze in Fredericksburg
Date published: 1/12/2008
BY EMILY BATTLE Fredericksburg City Manager Phillip Rodenberg has told his staff that he's implementing a hiring freeze on city jobs to try to stave off a potential budget shortfall. Much of Rodenberg's worry stems from recent data on how the city's second-largest revenue source--the sales tax--fared in November. The city collected $897,000 in sales tax that month. The last time sales tax numbers for the month of November dipped below the $1 million mark was in 2003, before Central Park was as built-out as it is today. For the year, the city is 10.58 percent below what it had banked on receiving in sales tax revenues. "This is our No. 2 revenue source, and it's very significant that it would be that far off," Rodenberg said. "Economic activity is slowing in the city, and we believe that it's slowing in the counties, as well." He may be right. Spotsylvania County has implemented a hiring freeze through the end of the fiscal year for some departments to avoid a shortfall, as early projections lagged revenues. Stafford County departments have cut their spending by 7 percent, helping the county to make up a little more than half of the $10 million shortfall it is anticipating this year, mostly due to declining sales tax, recordation, development and the housing market slump. Spotsylvania's sales tax revenue was down 2 percent and Stafford's was down by 2.3 percent for the first three quarters of 2007 compared to 2006. Both counties, however, showed slight increases in the third quarter of 2007. Stafford has not enacted an across-the-board hiring freeze but has held off filling key positions like its deputy county administrator. King George and Caroline counties have not had to enact hiring freezes or midyear cuts, but officials there say they are watching revenues carefully. In recent months, Gov. Tim Kaine has proposed a series of cuts, as well as a significant draw from the state's emergency reserves, to close a $641 million shortfall in the state budget. That shortfall has been tied to the slowdown in the housing market and the economy in general. In Fredericksburg, it's not just the sales tax that's suffering. Meals tax and building permit fees have also lagged as consumer activity and building has slowed.
Read more stories about Fredericksburg Date published: 1/12/2008
Money Doesn’t Grow on Trees
(posted by
Rtruo85
, Jan. 13, 2008 1:30 am)
You guys are getting it all wrong. We need to let some more illegals in that are “an asset to the country’s economy.” Free healthcare, free education, reduced tax rates, food coupons, priority employment for entry level positions, increased spending on government programs and housing, and increased spending on detainment of illegals who commit crimes. I’m sorry, but the money has to come from somewhere- and its coming in the form of budget cuts.
Risky?
(posted by
realitystory
, Jan. 12, 2008 6:30 pm)
Dadster: Kalahari like deals have been used by broke cities
everywhere to make new money. That's how it works. The
only scenarios of the city paying money out of pocket are
imagined by the scared or misinformed. All these deals are
for money back, and IF new money is generated for the city
first. This is more than common, and in the case of
Kalahari, has PROVEN to be very prudent, not risky (go
look MrZ). The city is paying Wegmans to make us money.
I say RE-ELECT!
And All God's People said, "Recall!"
(posted by
dadster3
, Jan. 12, 2008 3:05 pm)
Let's see: Assessments are through the overhead, which means property taxes will go even higher; the city has offered a $300K bailout to the convention center; Wegman's is getting a juicy tax break, and who knows what the eventual kickback will be for Kalahari.
Can anyone say "recall"?
The President says.....
(posted by
simonsez
, Jan. 12, 2008 2:46 pm)
at YakAdoos....The Economy is doing just fine folks...or did I misread the FLS article??? Did the "Shiny Lites" blind the selected few that make over 6 figures?? Botta Bing ya all.
Shows the stupidity of Kalahari!
(posted by
MrZorro
, Jan. 12, 2008 11:07 am)
The developers, lenders, and illegals have driven this housing bubble to the point of collapse and recession.
Taxes have doubled and the City is broke. Why should we trust this risky Kalahari thing to save us? The City Council is also guilty of wasteful spending in recent years.
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