Where Will Madison Get Money For New Budget?

By Jane DeGeorge

Published: March 20, 2008

Proposed county spending for the coming fiscal year is $6 million more than Madison County’s estimated 2008-2009 income.

If officials are unable to close this gap by cutting proposed expenses, residents may face a tax rate increase to cover the proposed 2008-2009 fiscal year budget, which totals $36.7 million.

Each year, new construction in the county brings additional property tax revenue to partially cover any budget increases. The county’s estimated revenue from real estate taxes due to new construction this year is down from previous years to $76,700 – about a one percent increase since 2007. This past fiscal year, additional buildings increased real estate taxes by a total of about $334,856, about a four percent increase for the year.

Besides decreasing expenses, raising the county’s current real estate tax rate – which is 59 cents per $100 of assessed value – could also be avoided or partially reduced if the county pursued small-term loans to pay for some of its expenses, such as certain construction projects, according to officials.

This past year, the supervisors entered their budget work sessions with about a $3 million gap. Officials were able to preserve the tax rate, which has remained the same for three years, by reducing some of the budget’s proposed expenses and using about $5.07 million in “carryover” funds.

A possible tax rate increase can only be determined once officials finalize the total value of property in the county, which is being revised due to the recent reassessment, and set an “equalized” tax rate. State law requires an “equalized” rate be set following a reassessment to ensure that the property tax revenue the county receives this year is no more than one percent higher than the county’s 2007 total property taxes collected.

Since property values in Madison County increased overall by about 50 percent during the 2007 reassessment, officials have estimated that the “equalized” rate will be about half the current rate, or 30 cents per $100 assessed value.

Changes within Madison County’s 2008-2009 proposed fiscal year budget include:

• A request by the Madison County School Board to increase the amount it receives from the county to support its budget by about 12.7 percent, bringing the request for local funds to $8.6 million.

• The Madison County Sheriff’s Office has asked to increase its budget by $276,879, a 14.8 percent increase. Increases within the sheriff’s office budget officials have marked as “specific areas the board needs to address” include: deputies over-time, part-time deputies, courtroom security, training service, range training, police supplies, uniform and wearing apparel and information technology and communications equipment.

• The Central Virginia Regional Jail has requested $220,611 toward its operating expenses for the coming year. Since the jail first opened in 1990, Madison County, as well as the four other counties the jail serves, has not had to contribute toward the jail’s costs. For its almost 20 years in existence, the regional jail has paid for its yearly operations and two previous expansions with funds from the federal government and investments, according to the jail superintendent. Due to an increase in inmates from the five localities, the jail no longer has the space to house additional federal prisoners and has requested the five counties contribute toward its expenses, the superintendent has said. Budget documents note that the regional jail board has not yet approved its final budget and the requested amount from Madison County may decrease.

• $4.27 million to be set aside for projects in Madison County’s “Capital Improvement Program,” which includes spending on large construction projects and purchases of expensive equipment. Projects include the courthouse renovation, the Hoover Ridge 11-field athletic complex, the Kemper Residence revamp, the County Administration Center and the transfer station property.

The current draft of the budget the supervisors are reviewing during their work sessions this week is a compilation of budget requests from different county departments that the board had not yet reviewed as a whole, according to Supervisors Chairman Eddie Dean. The county administrator describes it as an “initial discussion draft.”

Following the sessions, the board is expected to approve a balanced draft budget, a summary of which is expected to be advertised in The Eagle’s March 27 and April 3 editions.

A public hearing regarding the revised budget is set for Tuesday, April 8 at the County Administration Center at 414 N. Main St. in downtown Madison. (The agenda of this meeting has not yet been set but the public hearing will likely take place during the later portion of the meeting, which starts at 7:30 p.m.)

The 2008-2009 draft budget is available for public inspection at the supervisors office at 302 Thrift Road (the old school board headquarters) during normal hours, Monday-Friday 8:30 a.m.-4:30 p.m.

For information, contact the Madison County Board of Supervisors office at (540) 948-6700.