The city manager’s office released fiscal year 2021 proposed budget.
The proposed budget total is $57,823,319 across six funds – General Fund, Utility Fund, Public Assistance Fund, Tourism Fund, Capital Improvement Fund and Quarterpath Community Development Authority Fund.
The General Fund represents $36,620,500 of that total, according to a news release from the city.
City Manager Andrew Trivette said FY21 budget has four major drivers:
- COVID-19
- Impacts
- Education costs
- Increasing assessed value
- The city’s reserve fund balance.
Here’s information on those items from the city:
COVID-19
The anticipated revenue reductions caused by mandatory business and travel restrictions, if realized, will be offset during the year through spending constraint, and fully recovered through transfers into the General Fund from the Capital Improvement (sales tax) fund and the Tourism Fund. Any remaining needs will be met using the general fund reserve.
The adjustments occur at the end of the year and will only be needed for actual shortfalls which are difficult to predict. The FY21 budget uses a worst-case set of assumptions that officials hope will not be realized. If they are the city is prepared.
Education
The FY21 budget includes an increase in the school system operating budget of 4 percent over the last fiscal year. The Williamsburg-James City County Public Schools’ proposed capital improvement plan for FY21 includes new or advanced projects to resolve capacity issues in both the high schools and elementary schools. The school district is jointly supported by the city (9.6%) and James City County (90.4).
COVID-19 adjustments are anticipated to the school system budget, but not yet known.
Any such adjustments will be accommodated prior to final adoption of the city’s budget in June.
Assessed value
This year the average assessed value of real property is increasing by an anticipated 3 percent. Increasing assessed value means improved equity for property owners. This year’s proposed increase is due to a few factors including a strong housing market in many localities of the state. Despite the predicted assessed-value increase, this budget is based on the conservative estimate of 2.8%. The FY21 budget also includes additional adjustments to the real property tax revenue estimate to reflect potential impacts resulting from
COVID-19 mitigation strategies
Reserve: City Council’s policy requires that the city’s reserve fund not fall below 35% of operating revenues. At the close of FY20 this balance is expected to be $14 million or 43% of that year’s operating revenue (after COVID-19 adjustments). This decrease in balance with an increase in the percentage of revenues reflects reduced revenue forecasts due to COVID-19 impacts.
At the close of FY21, the proposed budget recommends a reserve balance of $11.3 million or 35% of the expected revenues. While this reflects a decline in the reserve balances, the balance will remain healthy and the percentage of revenue remains strong despite a heavy reliance on the reserve for COVID-19 recovery.
“In Williamsburg, we have benefited from fiscal conservancy that has allowed for a very healthy General Fund reserve, at times exceeding 80% of operating revenues. In recent years we have recommitted to growing this reserve so that one of our strengths can be our fiscal resiliency,” Trivette said. “ Now we see these efforts bearing fruit that we can harvest.”
Residents can email comments to Trivette at citymanager@williamsburgva.gov or City Council at council@williamsburgva.gov.
City Council will hold virtual meetings, meaning they will not be in Council Chambers in person. Public comment will still be received at these meetings by submitting comments in advance or by calling in to the meeting.
Instructions on participation can be found on the city’s website.
- Virtual City Council Work Session, Monday, May 11, at 4 p.m.
- Virtual City Council Meeting – Budget Public Hearing, Thursday, May 14, 2 p.m.
A hard copy of the proposed budget is available for review at the city manager’s office in the at 401 Lafayette St. Due to social distancing and the closure of public buildings, officials said for residents to make an appointment to see or receive a hard copy of the budget document.
View the document here.
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