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I HAVE BEEN asked to explain how we collect and spend money in Spotsylvania County. It is my honor and pleasure to do this, and I hope that I can do it in a way that won't be boring.
Similar to most family budget decisions, local government spending in Spotsylvania County can be broken down into categories--needs, wants, and desires. And like most families, we have to make choices. In addition, our budget includes spending for federal and state mandates, which tend to be costly, and compliance with them is non-negotiable. Sometimes, it's hard to determine if those mandates fall into a need, want, or desire category, but again, these are non-negotiable and we're not often, if ever, consulted.
Last year, the board passed a fiscal-year 2009 (FY09) budget of $435.5 million. (For those readers who may not know, the current fiscal year runs from July 1, 2008, to June 30, 2009.) Unlike the federal government, state and local governments are required to balance their budgets and cannot run deficits--meaning that our revenues must match our expenditures.
The majority of our revenues come from two sources: state contributions ($174.4 million) and property taxes ($130.3 million, including real estate, personal property, heavy equipment, mobile homes, and penalties and interest). Another $82 million comes from retail-related tax revenues (e.g., sales, communication, utilities, business-license taxes, local vehicle-license fees, recordation, transient occupancy, meals, and other local taxes), and other licenses and fees, and service charges. The balance, approximately $49 million, is derived from federal sources, debt proceeds, and fund balances.
On the expenditure side, to better synchronize our decisions with the views of the people, the board created a satisfaction survey to prioritize our investments. Not surprisingly, after having knocked on thousands of doors over those years, residents have consistently rated quality public education, strong public safety, and transportation improvements as their highest priorities. These priorities, together with state mandates covering such important issues as health and welfare, represent the majority of
Specifically, about $282 million, or almost two-thirds, of the budget goes to education. Another $32 million goes to public safety, including funding for the Rappahannock Regional Jail and the Juvenile Detention Center; $17 million is dedicated for social services; $5 million goes into our transportation fund, supplemented by $41.5 million for all capital projects (excluding schools, which are separately funded in the aforementioned amount); $14 million for general government and supplemental funding for constitutional offices (to make up for state shortfalls to those offices); $12 million goes to regional agencies; and the remainder is dedicated to parks and recreation, planning, zoning, economic development, judiciary, and other services required of a growing county.
ALTERNATIVE REVENUES
To keep property taxes low and widen the tax base--and at 62 cents, our property tax is the lowest of the top 10 largest counties in the commonwealth--the board has looked for other ways to increase revenue to meet a growing population with increased levels of service. We ramped up commercial development.
The renovated and expanded Spotsylvania Towne Centre, commercial centers at Cosner's Corner and Harrison Crossing, and the new hospital now under construction have not only expanded our tax base but will also bring additional commercial and office revenue and jobs to the county. We also instituted the revenue recovery program that is generating $2 million a year to supplement the fire and rescue budget.
Our constituents need to be assured that this and prior boards have made fiscally responsible decisions that have garnered our county a AA bond rating, which keeps interest rates low on our capital projects and saves taxpayers approximately $10 million over 20 years. Despite the perception that we maintain a bloated bureaucracy, our employment levels in general government per 1,000 residents have remained flat over the last
In addition to enforcing fiscally prudent policies, during this recession the board has ordered hiring freezes and cut an additional $15 million from the FY09 budget. Unfortunately, we had to also make the very difficult decision to lay off some of our employees.
We are taking other measures that it is hoped can avoid harsh remedies in the weeks ahead. One initiative
The conversation we need have is not whether our government is bigger or smaller, but whether it works efficiently today and in the future. We will come out of this recession, and when we do, I am confident that the actions taken by this board will strengthen and position us so that we can take full advantage of the opportunities ahead.
Hap Connors is chairman |
