BSG Budget Passes with 4-3 Vote

The town now has a budget in place for fiscal 2005-06 with a 5-cent real estate tax hike and a 1 percent meals tax hike.
But the spending plan could get significant changes as soon as next month. Some council members hope to eliminate the property tax increase as soon as possible. Others have suggested a review of the budget in October, before mailing out tax bills, to see if the town can afford to withdraw the tax hike.
The new fiscal year begins July 1.
On Monday, town council voted 4-3 to approve the fifth budget draft presented by Town Manager George Polly. It raises the real estate tax from 39 to 44 cents per $100 of assessed property value - generating an expected $70,000 extra - and increases the meals tax from 5 to 6 percent of gross sales.
That vote came after a 3-3 tie, with one abstention, on a proposal to wipe out the property tax hike and make a total of $70,000 in corresponding spending cuts.
FIRST PROPOSAL
Council first attempted to pass a budget on June 14, when Polly presented the fifth version. Polly had removed his previous proposal to raise the town's cigarette tax from 5 cents to 15 cents per pack, but kept the property and meals tax increases.
But that meeting ended abruptly when Councilman Michael Mason insisted that four of the five members who attended a June 13 budget discussion had informally agreed they wanted to remove the real estate increase, too. Mason said town staff should have been directed to draft a sixth budget version without the tax hike, but didn't, so the meeting should end.
Mason, Barbara Orndorff and Edward Hutchinson came away from the June 13 discussion believing Eddy Giles shared their dislike of the property tax increase. But the cut-short June 14 meeting began with Giles moving to approve Polly's fifth-draft budget, with the tax hike.
At Monday's 2 p.m. meeting, with more than 20 citizens watching, Mason again complained that council didn't get a budget draft minus the property tax increase. Apparently, Mayor Bill Cole failed to direct town staff to work up the numbers, he said.

Some people have claimed some council members don't want to give town employees the 2 percent overall raise and step raises they will get in the fifth-draft budget, but that's not true, Mason said.
Last week council had a majority consensus to consider a budget without the real estate hike, Mason continued, "but there's one person who's authoritarian, who wants to push his will." Looking at Cole, he said, "I think you're out of line, forcing this down on us."
Orndorff moved to approve draft five of the budget with two significant changes - removing the real estate tax increase and making several spending and other income adjustments to get the budget in balance.
Orndorff reduced the $70,000 income deficit by more than $15,700 by noting that council had added unspent contingency fund money from this year to next year's budget. The latest draft didn't take that into account.
Further, Orndorff calculated that after the town bought a new fleet of police and other vehicles, sold most of the old vehicles and used most of that money to equip the new vehicles, almost $15,400 was left over to plug into the new budget.
Her other proposed changes included:
** Selling two of five excess police cars the department kept after getting the new fleet. The sale could generate $14,000 and each officer would still drive a new cruiser, Orndorff said.
** Cutting the line item for council meeting pay by $3,300 and the mayor's meeting pay by $400 because council typically doesn't meet in December.
** Cutting council's travel budget and the mayor's travel budget by $2,000 each, based on recent years' spending trends.
** Eliminating $5,000 budgeted for further work involving the town's comprehensive plan, which has been revised and approved.
** Cutting nearly $11,900 from the contingency fund, which is budgeted for unexpected costs.
** Cutting $356 from the line item where the town staff accounts for the cost of accrued general leave for employees.
A total of $54,500 is budget for accrued leave, according to Orndorff. The cut would be two-thirds of 1 percent, she said.
According to Polly, the funds must be set aside in case any town employee leaves town service and must be paid for unused leave. But Orndorff and Hutchinson have repeatedly questioned how the leave fund is accounted for, and have asked for a list of employees covered in the fund.
Town policy states that full time employees accumulate anywhere from 12 to 20 hours of leave time per month, and may accumulate up to 90 days yearly. If an employee leaves the town's employment, they can get paid for unused leave time at their final pay rate.
Orndorff said she thinks there was no sixth draft of the budget because once council saw on paper that it could make cuts, it would be hard not to pass a revised budget.
Hutchinson noted that he had calculated several budget changes to remove the property tax hike, but decided not to propose them after seeing Orndorff's proposal.
Voting for the revised budget were Orndorff, Hutchinson and Mason. Voting no were Cole, Giles and Leonard Rogers. Vice Mayor Harold Lester abstained. The tie killed the motion.

SECOND PROPOSAL
Giles moved to adopt Polly's fifth draft, with the real estate and meals tax hikes.
Hutchinson said that members had heard Orndorff's proposal and know the budget can be cut. "And you would sit here and do what's best for the citizens? I don't think so."
Orndorff asked other members what bothers them about her revised budget.
Giles said several citizens have told him they trust town administrators and are willing to accept minimal tax increases if they are truly needed.
As for accrued leave, Giles noted that when he retired from the county school system, he was paid $12 for every day of unused leave time. "I thought it was an insult."
Lester said he abstained from the previous vote because he didn't attend the June 13 budget discussion, and he had meant to make several comments during the suddenly adjourned June 14 meeting.
Lester noted that council originally got a budget with a proposed 10-cent property tax hike, and he suggested cutting it in half.
He acknowledged he's concerned about some budget matters, such as having to spend most of the proceeds from selling old police cars to equip new ones. Lester thought the new vehicles came equipped, and there wasn't enough communication on that matter, he said.
Further, Lester said he thinks the police overtime pay budget seems too high at $85,000.
Lester also agreed with Orndorff and Hutchinson that the town should consider eliminating its building inspection office when inspector and town planning and housing director Chuck Miller retires. The county's office could do the job, he said.
With all that said, town management believes it must have more money to keep the budget "on an even keel," he said. Soon, the town must figure out a schedule for replacing a lot of expensive trucks and heavy equipment, he noted.
Lester proposed that council re-examine the budget in October, before tax tickets are mailed. Hopefully, the town will have a deal to sell some of the valuable timber in the Big Cherry reservoir watershed, and can use that money to cut the property tax rate again, he said.
Mason said he liked several of Lester's ideas, but repeated his concerns about town staff not providing more than one budget option.
Rogers said he's not for a tax hike, but also doesn't want to reach the point where the town loses services for lack of money. He agreed with revisiting the budget in October.
Cole also advocated taking a second look after more is known about a possible timber sale. The budget can be changed at any time after it's passed, he said.
Why wait? Orndorff proposed, suggesting more budget talks in July.
Voting for Polly's latest budget were Cole, Giles, Lester and Rogers, with Hutchinson, Mason and Orndorff voting no.

Sounds like BSG TC is now having some of the problems other boards in WC are having. Fights among the members and those who think they, are the only ones, that know what is best.

[beamer_ball]

And I used to think Lee County was the one with all the problems. Guess we're not alone anymore.

From what i have seen and read and what i have been able to keep up with.
Every one in SWVA is having problems from TC, BOS, SB.
You name it they got problems.
And one is some folks think their right, and cannot see past their own ego's.