2012 City Budget Approved

Last night, the Fredericksburg City Council gave final approval to the 2012 budget, passing three money measures in quick succession. Approved were the $75.6 million operating budget, a four cent increase in the real estate tax rate, and increased water and sewer service fees. 

The budget items passed with overwhelming council support, save for Ward 3 Councilor Fred Howe, who was alone in voting against the operating budget and the real estate tax increase. Howe did join his colleagues in the unanimous vote approving increases to the city;s water and sewer service fees. 

Howe's nay votes were motivated by a desire to see city employees receive a pay increase. Howe had previously raised objections to the 2012 Fredericksburg City Public School budget's recently approved pay increases for city school employees, going so far as to make a failed  

"We are raising the tax rate, but we are disproportionately rewarding one team member in our city staff disproportionately to the other critical and valuable team members," said Howe after the meeting. "So, I feel if we are going to treat one the same, we treat all the same…the budget should have reflected an increase on the city staff side."

Next year's operating budget calls for, among other things,   hiring new employees, awarding bonuses for full time employees, and investments in public works and maintenance projects.

The budget calls for the creation of four new positions; a budget manager, a deputy superintendent of street maintenance, a treasury accounting technician and a deputy city attorney. City officials are keen to go on a hiring spree if they had the money. The budget contained a list of 16 additional positions which various city departments had requested, but were unable to be funded this year.

The budget also calls for an $850 bonus for all full-time employees and pro-rated bonuses for part-time employees. The cost for these bonuses? $367,750, payable November 18, 2011.

The budget increases are offset by a few cuts, mostly in the city's regional government operations. Municipal funding for the Rappahannock Regional Jail would be reduced by $350,000. Likewise with the Rappahannock Juvenile Detention Center, which would see funding decrease by $78,900. However, budget documents warn that the city should expect to see higher costs for the regional jail after next year. 

The budget is supported by a four cent increase in the real estate tax rate, bringing the tax up to 72 cents per $100 of property valley. 

The tax increase is estimated to cost most home owners in Fredericksburg around $100 per year. 

The real estate tax is the largest single source of revenue for the city of Fredericksburg,

Among the 39 independent cities in Virginia, Fredericksburg currently has the A four cent increase moves Fredericksburg up a single spot in those rankings, above Waynesboro (70 cents), below Danville (73 cents). The median property tax rate among Virginia cities is 90 cents. The highest property tax in Virginia cities belongs to Manassas Park at $1.65. The lowest belongs to Williamsburg, at 54 cents.

The City Council also gave final approval to Fredericksburg's bi-monthly water and sewer service charges. 

The water consumption fee would rise five cents to $1.90 per 1000 gallons. The wastewater consumption fee would rise 14 cents to $3.86 per 1000 gallons.

The city's water and sewer fees haven not risen since 2009, when water fees were raised two percent and wastewater fees raised five percent. The prior increases affected the consumption and base fees for each service. The rate increases being considered tonight only affect the consumption charges. 

The rate increases will bring in an estimated $22,000 in additional revenue for the city's water services and $35,000 in the city's wastewater revenue. Overall, the city projects total water service revenues of $2.3 million and sewer service revenues of $3.96 million next year.