By Marty Gordon
Montgomery County Administrator Craig Meadows has proposed a new fiscal year budget of $209.3 million, which would require no tax increase.
According to information Meadows provided to the board of supervisors during a work session late last week, the 2020-21 budget represents a 3.9 percent increase ($7.8 million) over the current fiscal year.
“My recommendations in the proposed budget provide for continued investment in both our human and capital resources, continued investment in our public schools’ operations and capital needs, and continued investment in our public safety operations,” Meadows said.
Of the total budget, $89.2 million will be provided by federal, state, and other designated funds. The remaining $120.1 million represents county dollars not designated for a specific purpose, which includes a projected growth of $3.8 million.
Proposed funding for the county’s general fund, net of transfers to other funds, totals $52.6 million, an increase of $1.2 million (2.3%).
Proposed funding for the School Operating Fund, net of transfers to other funds, totals $120.7 million, an increase from the current year of $4.6 million (4.0%).
The total county budget also includes the Debt Service Fund ($24.7 million), the School Nutrition Fund ($5.2 million), the transfer to the School Capital Fund ($2.2 million), the transfer to the County Capital Fund ($3.5 million), the transfer to the Economic Development Authority ($0.4 million), and the Law Library Fund ($17,600).
“For Fiscal Year 2021, I recommend no increase in the real estate tax rate from the current fiscal year,” Meadows said.
If approved by the Board, fiscal year 2021 would be the eighth consecutive year that the county’s real estate tax rate has remained unchanged. The continued strength of the local economy and conservative fiscal management by the board of supervisors have enabled the county to avoid hiking the tax rate.
Meadows recommended funding be continued for the following areas in FY 2021: School Capital Fund – $2.2 million (2.5 cents of the real estate tax rate) for future school capital projects; County Capital Fund – $1.3 million (1.5 cents of the real estate tax rate) for fire and rescue equipment; and County Capital Fund – $2.2 million (which includes 1.0 cent of the real estate tax rate, as well as $1,385,000 from other general fund revenues) for capital and maintenance projects.
“It is important that the county prioritize critical long-term projects by setting aside recurring funds,” Meadows said. “With an ongoing funding source of $2.2 million for the School Capital Fund, dollars will accrue annually for the next priority school capital project.”
Other funds earmarked for the County Capital Fund provide dollars annually for the following: $425,000 for the Auburn Park project, which puts aside funds each year toward the development and future construction of the park; $210,000 for Information Technology infrastructure projects, which allows for technology needs to be addressed; $858,000 (or 1.0 cent of the real estate rate) enables $100,000 to be set aside for future Valley to Valley Trail projects and provides $758,000 each year for other future county capital projects; and $750,000 for county capital maintenance projects, which allows for proactive preventative maintenance and for handling large-scale building repairs or replacements.
“Of the $1.75 million in additional county funding requested by the schools for their operations, I propose new funding of $1.55 million for the School Operating Fund,” the county administrator said. “In addition to the $1.1 million included for the increased cost of school debt service resulting from the fall bond issue to renovate and expand the Christiansburg strand elementary schools, a total of $2.65 million or 70% of the FY 21 new county money supports our public schools.”
While his recommendation does not fully fund the school’s request for operating funds, Meadows said it is important to note that in the past five years Montgomery County has increased local funding for school operations by more than $9.7 million.
The proposed budget for Fiscal Year 2021 continues the $500,000 for the Accessing Community College Education (“ACCE”) program with New River Community College (NRCC). With these funds, graduating seniors from high schools in Montgomery County can continue their education tuition-free at NRCC with a commitment to provide community service in return.
This will be the third year that the county has supported students through this program with $1.25 million in county funds being allocated.
Meadows’ proposal does include a slight salary increase of three percent for all county employees, effective July 1, 2020. Employees who have reached the top of their pay grade would receive a three percent one-time bonus in lieu of a salary increase.
A required public hearing on the proposed budget and tax rate is scheduled for April 2 with the board voting on the budget on April 13.