FY 2020 Current Budget performance and FY2021 Adopted Budget

At the January 6 City Council meeting, Finance Director Amelia Merchant provided the first budget briefing for the FY21 budget development process.  The briefing included a high-level overview of the performance of the current FY20 budget and an update on preparation for the FY21 budget.  The FY20 adopted budget is $299.4 million and local taxes comprise approximately 68% of all revenue.  Through November, total FY20 revenues have decreased approximately $1.2 million or 1.32% compared to the same period of FY19.  During this same time period, FY20 local taxes have increased approximately $2.1 million or 3.15%.  Expenditure and obligations through November increased approximately $2.2 million or 1.64% compared to the same period last year.  For FY21, preliminary total non-discretionary cost increases are projected at $844,500.  These increases consist of the following:  $0 for medical insurance, $27,200 for dental insurance, $67,300 for VRS retirement, $250,000 for reserves, $250,000 for debt service, and $250,000 for workers' compensation.  Other FY21 expenditure priorities focus on employee compensation, community safety, neighborhood vitality, the Comprehensive Plan, capital planning, the Parks and Recreation Master Plan, additional funding support for Blue Ridge Behavioral Healthcare, tipping fees, recycling, and addressing Virginia General Assembly actions.  City Council will receive briefings on the first Monday of February, March, and April.  On April 20, the Recommended Budget will be presented to City Council and on April 30 public hearings on the recommended budget and tax rates will be held.  A Budget Study is planned for May 4 and on May 11 City Council will adopt the Recommended Budgets and the update to the HUD Consolidated Plan and approve an annual appropriation ordinance.