Cuts are being made across the board to the Fredericksburg City budget due to the coronavirus pandemic.
The new $94 million budget is a decrease from the original $103.4 million that was set before the pandemic hit in March. The new budget is also lower than last year’s the $101 million operating budget.
“The City has been forecasting an estimated revenue shortfall between $4 and $8 million for FY 2020 through June 30. We won’t know until mid-August how much it will be, after we finish posting transactions related to June 30. But we’ve been encouraged somewhat by some of the returns that have not shown worse-case scenario declines and we might be looking at a range of about $3 or $4 million now.” said city spokeswoman Sonja Cantu.
At a recent city council meeting, a first read of the amended budget was given to the councilmembers by Assistant City Manager Mark Whitley who discussed the cuts.
Multiple revenue sources used to fund the city budget have shrunk due to unemployment are the various meals, lodging, emissions, business licenses, sales, real estate, and personal property taxes, city officials said.
In order to try and save money, the city is looking at cutting the amount it gives to its school division by 3.4%. At $29 million, it’s about $1 million less than what had been planned.
More reductions came for the support of the Central Rappahannock Regional Library which got an under 6% cut which took it from over $14 million to just over $13 million. The Rappahannock Regional Jail which got a near 12% cut from over $4 million to under $3.6 million.
Other cuts made in order to save money came from the elimination of consideration for all new positions. Another elimination was of a proposed 4% pay increase that was to be effective in October.
Other items that got cut were a reduction of a reserve for a Public Safety Pay Plan from $500,000 to $100,000 which funded mid-year pay adjustments for police and fire, a debt service requirements due to a refinancing of 2011 Court bonds, reduction in “cash-funded” capital
Even the City Council itself is taking a 3% cut in their salaries which is a savings of $4,500.
City Councilor Matt Kelly asked Whitley and his staff to try to find more cuts that could be made to the budget to save funds. One consideration for the cut was the city’s contribution to the Rappahannock Juvenile Center Commission, that option was considered infeasible due to the amount already being set.
Fredericksburg was able to get some savings due to the furloughs of city employees which has helped with building the budget.
The City will have to adopt a final budget by June 30.
