The Botetourt Board of Supervisors sent a proposed $96.98 million budget to public hearing following a work session at last week’s regular March meeting.
The proposed budget for fiscal year 2018-19 (FY19) that starts July 1 is $1.86 million or 2 percent more than the current approved budget. No tax rate increases are proposed with the budget.
The public hearing is April 17 at 7 p.m. at Greenfield Education and Training Center.
Most of the increase will go to the school division or to pay debt on the new elementary school that will be built in Blue Ridge.
The county administration and the supervisors’ General Fund Budget Subcommittee offset other expenditure increases with cuts in proposed capital projects and because the county doesn’t have as much obligation to meet incentive payments for the new companies that located here.
Director of Financial Services Tony Zerrilla reviewed the proposed budget for the board during the work session.
He said county tax revenue is expected to be $51.3 million, up $873,575 or 1.7 percent, from the current fiscal year. State revenue is expected to be down very slightly to $10.86 million, while federal revenue will be up $208,740 to just over $1 million.
Overall, there’s a 1.7 percent increase. The increase in federal dollars is primarily related to an interest rate subsidy for the School Energy Project and a re-classification of revenues for DMV grant funds previously shown in state revenues.
Zerrilla reported that local revenues indicate economic growth, along with an increase in the funds earning rate. There are also revenues budgeted for a current Roanoke Gas project (Public Service Corporation). Roanoke Gas has been upgrading and installing new gas lines in Fincastle and the Troutville area.
The budget includes a 2 percent cost of living adjustment for county employees beginning July 1, and funds for compensation adjustments that will be based on a salary study. Those adjustments are expected to go into place in the second half of the fiscal year.
The budget includes $24.5 million in local funds for the county school division’s $58.24 million. That’s a $310,000 increase in local funds for school operations.
While there was modest growth in local tax revenues, Zerrilla said the county expects revenue growth in real estate taxes, personal property taxes, machinery and tools taxes, meals taxes and permits and fees. “All indicate growth in the local economy,” he told the supervisors.
The supervisors’ budget work session presentation is on the county website and the proposed line item budget will be on the website this week.
