Last year, City Council faced a budget shortfall that demanded increased real estate taxes for the first time in two decades. The picture was much rosier Saturday, when council received its budget outlook for 2014.
Although City Manager Jack Tuttle warned all numbers are subject to change, it appears the city’s revenues will be up 1.7 percent, to $32.7 million. Its expenditures could increase up to $33.2 million; however, to cover the budget gap, the city could transfer nearly $500,000 from reserves.
On the expenditure side, the city could see large increases in costs for education and transportation. In the past two years, the city’s student population has grown while James City County’s student population has decreased. To help minimize the impact of population fluctuations, the Williamsburg-James City County Schools funding formula is based on a three-year average student count, multiplied by a factor of 1.14. Read the revised funding agreement approved last year.
The city estimates its school contribution will increase from $7.8 million to between $8.1 and $8.4 million. The amount it will increase will depend on whether WJCC employee compensation increases. Gov. Bob McDonnell (R) has pushed the General Assembly to approve state funding for a state share of 2 percent raises for required personnel; at its retreat last Saturday, the WJCC School Board discussed extending that increase to all employees, and possibly raising it to 3 percent.
The city will also have to consider increasing its contribution to the Williamsburg Area Transit Authority, which is jointly funded by the city, York County and James City County. WATA will lose federal funding in 2014 when grants that paid to start trolley service and Sunday service run out. Assistant City Manager Jodi Miller, who also sits on WATA’s board, said there are few grant funding opportunities for continuing services, but many grants for starting new programs.
If the city decides to help cover the loss, its contribution would increase 18 percent to $339,544. If WATA did not receive additional funding from localities, it would have to cut services. Miller said those would likely include trolley service, Sunday service and/or frequency service. She added WATA is implementing a sophisticated intelligent transportation system that will help determine how it could be more efficient, and will add a GPS feature and a scheduling system.
Council member Scott Foster suggested the city ask business owners how their customers could be better served by public transportation, while Mayor Clyde Haulman said the bus routes serving the college should be examined for possible reductions. Tuttle said he did not believe the current trolley route is viable, because potential riders have to wait too long for the trolley to arrive. Foster agreed, saying, “In the time you spent waiting, you could have just walked.”
Tuttle would like to offer some employees merit-based 2 percent pay increases and adjust some positions to be competitive in the region. On Saturday, he estimated the increases would cost about $265,000.
The city awards merit-based pay increases based on employee evaluations. In the evaluation process, employees are recommended for partial or full merit increases. Tuttle said the city never awards across-the-board pay increases, but instead aims to place the money where it is most needed for employees who should be recognized for their work.
“If you really want to keep somebody, this is an opportunity to say something,” he said, “and if you’d just as soon see them move on, it’s an opportunity to say that, too.”
Council will meet later this year in its annual joint meeting with James City County’s Board of Supervisors and the Williamsburg-James City County School Board. The Neighborhood Council of Williamsburg will also host a budget discussion later this year.
City Council aims to adopt the budget at its May 9 meeting.
Citizens will be able to share input on what must stay in the budget and where they believe the city can trim costs here.
