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STAFFORD MAKES CUTS

March 3, 2010 12:35 am

BY JONAS BEALS

Stafford County could cut $6 million in expenditures in the next fiscal year to meet a corresponding drop in revenue.

Most of the savings would come from ongoing efficiency efforts, but County Administrator Anthony Romanello's proposed budget --which doesn't require a general tax increase--calls for eliminating nine full-time positions to help cover the shortfall.

County schools, the Sheriff's Office and Fire and Rescue would receive the same local funding they did in the current fiscal year.

However, the budget does not include $3.6 million in debt service savings that the School Board requested to be included in the county budget. Stafford school officials have had to cut spending significantly to offset a loss of state money.

Romanello presented the fiscal 2011 budget to the Board of Supervisors yesterday.

It continued the trend of spending cuts and layoffs that has prevailed over the past two and a half years in Stafford. The presentation was the first step in the budget process, with many changes sure to come before the final financial plan is adopted in April.

It is the first time since 1965 that the county has proposed two consecutive annual budgets with reduced expenditures.

"We've been trying to keep our heads above water," Romanello said of the difficult financial situation. "This hasn't been one storm, but a new climate. We need to adjust to the new normal."

Balancing his proposed budget would require an equalized real estate tax rate of $1.14 per $100 of assessed value, up from 84 cents in the current fiscal year. The new rate compensates for a sharp drop in real estate values and means the average homeowner would expect to pay the same amount in real estate taxes as they did last year, although some homeowners would see higher or lower bills.

According to figures provided by Commissioner of the Revenue Scott Mayausky, 50 percent of Stafford homeowners will receive a lower real estate tax bill than last year. About 35 percent will see an increase of more than $100.

Commercial property owners could generally see their bills increase because the value of their property didn't drop like residential real estate values.

Romanello focused on fiscal policy, with an eye toward improving the county's bond rating. The county would retain a 10 percent reserve fund balance, according to fiscal guidelines.

He proposed funding additional reserves such as the "rainy day" revenue stabilization fund and the capital reserve fund for infrastructure projects.

"It tests the mettle of the community," Romanello said. "To build reserves in a recession is a really bold move."

While the county proposes to build reserves, it also proposes to eliminate some full-time positions.

"If there's a bright side, it is that we finally have a majority of us on the board looking at the way local government grows," Supervisor Paul Milde said of the board's five Republican members. "We're finding out what it means to be lean."

Romanello agreed, but admitted that county employees were being tested along with the rest of the community by working longer hours, bearing a higher portion of health care insurance costs and forgoing raises.

The only county agency to get a proposed increase in funding is the Parks, Recreation and Community Facilities Department. That's because of the operating costs associated with the new England Run Library scheduled to open in the fall.

Romanello's presentation was well-received by board members, although comments were short and few questions were asked.

"We'll have many bites at the apple over the next two months," board Chairman Mark Dudenhefer said.

Jonas Beals: 540/368-5036
Email: jbeals@freelancestar.com