The Shadow
Numerous non-governmental organizations (NGOs) face a substantial reduction or an altogether elimination of city funding in the 2010-2011 proposed budget presented to members of Covington City Council during their regular work session Tuesday night.
“As expected, the economic conditions of the times have had a negative effect on city revenues,” City Manager John Doane said in preparing the budget for council’s consideration.
“Certainly, it is not a joy to present the budget this year,” Doane commented.
The $16,622,891 budget, which is $620,000 less than the current budget, does not include a tax increase, rather, there is a proposed $4 increase in the garbage collection fee as well as slashed funding to many city departments and NGO’s normally supported by city government.
The budget reflects a $756,000 decrease in revenue from the current budget. Doane said decreases in state and federal funding are the bulk of the cuts. While there is an anticipated decrease in local revenue, Doane said the number is not significant.
Since there is a decrease in revenue, the amount to support programs and services is lower. “Since the pot is less, each department or agency will receive a smaller helping,” Doane said, “and in some cases, some won’t get a helping at all.”
“The first priority in the proposed budget is to protect core city services and programs that provide tangible and direct benefit to the residents of Covington,” Doane said.
Such programs include education, law enforcement, water, sewer, solid waste removal, recreation, parks and streets.
Programs such as health, social service and Constitutional officers were increased as mandated by state law.
“There are no sacred cows and no sacrificial lambs,” he said.
The $4 increase in the monthly refuse collection fee will allow the solid waste division of the city to operate in the black, Doane said.
At the current $10 monthly fee, the city’s waste collection and disposal is operating at a loss to the city. The fee increase will generate an additional $131,840 for refuse collection and disposal. Doane added that some equipment at the Peters Mountain Landfill will need replacement.
Water and sewer service, which is self-supporting under the current fee structure, will remain unchanged.
The difference between revenues and requests for expenditures was almost $2 million.
“Such a gap is not acceptable – a balanced budget is required by law and has been submitted for your consideration,” Doane said.
The budget includes the reduction of city staff through attrition.
During the current budget, four positions (two in public works, one in recreation, one in parks and cemeteries) were eliminated. Next year’s budget reflects a further decrease of 3 1/2 positions.
“We need to continue to reduce staff as much as possible; without a layoff, preferably,” Doane advised council.
Both governmental agencies and community organizations will “see substantial reductions, some to zero,” he added.
Local funding for education is $328,613 lower than expected. However, the city is recommending the re-appropriation of approximately $200,000 of surplus monies to the school system, reducing the funding gap to $128,613.
Doane said council has three options if it wishes to fund additional items or restore some funding to particular agencies.
Council can reduce or eliminate other expenditures, increase taxes, or appropriate from the unencumbered fund balance maintained by the city.
Virtually every city department is facing budget cuts. “We will meet with agency heads with questions as we go through this difficult process,” Doane said.
A public hearing regarding the proposed budget will be held Tuesday, May 18 at 6:30 p.m. in council chambers of city hall.
The fire department’s allocation will be $169,510, down from $184,245 in last year’s budget. The rescue squad, which requested $78,349, will be funded at $64,049.
Allocations for the League of Older Americans, the YMCA, Salvation Army, Alleghany Highlands Arts Council and Alleghany Highlands Arts and Crafts center have been reduced to zero.
The C.P. Jones Memorial Library will face a funding cut of about $10,000, from 120,400 to $110,000.
Numerous NGO’s will face elimination of funding from the city.
Programs receiving no funding include Kars Unlimited/StreetScene, the After-Prom Party, Blue Ridge Legal Services, Brain Injury Services, Senior Navigator Program, Council of Community Services, HOPE, the Second Harvest Food Bank and the Virginia Cooperative Extension Service.
Programs facing at least a 50 percent cut include the Alleghany Highlands Free Clinic, Radar, TAP, Safehomes, and Dabney S. Lancaster Community College.
Programs receiving full funding include the Alleghany Highlands Economic Development Corporation, Roanoke Valley-Alleghany Regional Commission, and activities sponsored by the Alleghany Highlands Chamber of Commerce.
Covington Vice Mayor Rob Bennett asked if decreasing garbage collection to once every two weeks would realize and savings and eliminate the need for a fee increase.
Doane said he will research the issue.
Covington City Councilman Bill Zimmerman said during last year’s budget process, he and other members of council warned that there will be significant cuts in this year’s budget.
Doane said the city sent letters to organizations indicating that the budget axe was forthcoming.
“They can’t be surprised by this,” Doane added.
Council will conduct a budget work session Thursday, May 13 at 6:30 p.m. at Covington City Hall.
Items to be placed on the May 11 regular meeting agenda include:
– renewal of an animal care and custody agreement with the Alleghany Humane Society. Doane said the level of service provided by the humane society and the cost is a bargain for taxpayers;
– accept a bid for the sale of mobile classrooms at the former Edgemont Primary School. Faith Baptist Church submitted the high bid;
– consider requests for utility bill adjustments for Conteck, Gerald Franson Insurance and Kenny Duncan;
– amending the city code to allow the state fire marshal to conduct fire inspections;
– scheduled a closed session to discuss legal matters;
– scheduled a public hearing to hear nominations to the Covington School Board;
– appointment of John Hudson to the board of directors for the Alleghany County-Covington Board of Social Services.
