City Council Sizes Up Budget Shortfall, Considers Options

By Sam Thrift Monday, January 23, 2012

The Williamsburg City Council focused on two topics during their retreat Saturday morning: the 2013 budget and tourism.

The five elected officials first discussed major cost increases anticipated for the next fiscal year and possible savings and revenue generating ideas to make up for the shortfall they will face.

The group took the state mandated increase in city contributions to the Virginia Retirement System, the anticipated $7.5 million gap in the Williamsburg-James City County School Board budget (click here to read about that), and the addition of 88 students in city schools into consideration before discussing the 2013 budget. The three changes alone will have a $1.9 million effect on the upcoming budget, or 5.9 percent of the $32 million budget, according to City Manager Jack Tuttle.

“We all knew the train was coming down the track; we just didn’t know how big it was our how fast it was coming,” Tuttle said.

He explained 11 possible options to save the city money, including reducing the general fund operation budget and capital accounts for city departments for an estimated savings of $220,000 and reducing two full-time staff positions for an estimated savings of $100,000.

The group discussed eight ideas to generate revenue, including increasing property taxes — currently 54 cents per $100 of assessed valuation — by five cents, an estimated revenue increase of $815,000. They also suggested increasing the personal property tax rate from $3.50 to $4 per $100, matching the rates in neighboring York and James City counties, and adding an estimated $325,000. Other proposals include increasing the cigarette tax from 25 cents per pack to 30 cents and increasing charges for the Parks and Recreation programs by 10 percent, which would bring in an estimated $30,000.

Although the group agreed tourism is a significant source of revenue, Tuttle did suggest reducing funding for tourism promotion to equal 50 percent of the 2011 room tax budget, adding an estimated $200,000 in savings.

If all 19 options they discussed were employed, according to city estimates, the 2013 budget would benefit in the amount of $2,394,000.

“As painful and difficult these things are, these are things the city can handle,” Tuttle said. “We have to think, what can we do without jeopardizing our goals and mission?”

The second half of the retreat focused on tourism in Williamsburg. The group could not come to a consensus on the definition of tourism, but did agree that the city needs to explore the council’s role in the tourism industry. Members of the council agreed to meet and discuss the topic at a later time in more detail to better explain their expectations to the Greater Williamsburg Chamber and Tourism Alliance and the Williamsburg Area Destination Marketing Committee.

City Council will next meet on Feb. 9 at 2 p.m. in the Stryker Building.