Blacksburg officials recently released a recommended fiscal year 2010-11 budget showing an overall decrease of more than 22 percent compared to 2009-10.
Steve Ross, deputy town manager, said the overall figure could be misleading.
“Just looking at the bottom line numbers isn’t the best indicator of what the budget is about,” Ross said.
The proposed $49.4 million budget, which includes the costs of operating the Blacksburg Police Department, Blacksburg Transit and town construction projects, reflects a reduction in town projects and expenditures.
The Blacksburg Town Council will vote on the budget Tuesday at 7:30 p.m., in the Blacksburg Municipal Building.
In 2009-10, the town of Blacksburg purchased 14 new buses for $5.1 million to extend Blacksburg Transit service to Christiansburg. The town also undertook and completed several multi-million dollar construction projects.
The Blacksburg Motor Company building restoration was a $3.5 million project. Improvements to the farmers market cost $862,000 and the preservation of St. Luke and Odd Fellows Lodge cost $432,000.
Economic conditions have also impacted the town’s budget.
“We’re responding to the economy that we’re all facing right now; that’s affecting our revenue,” Ross said.
The town is expecting a shortfall of $400,000 in state funding, according to the proposed budget. That revenue typically reimburses Blacksburg for highway maintenance and police department expenditures, according to Ross.
As budget documents discuss, Virginia Tech is the largest employer in Blacksburg and is therefore a vital part of the town economy. The 2010-11 town budget proposal anticipates a negative impact from Tech’s expected $20 million state funding reduction.
“As Tech responds to that reduction ... it means early retirement and reductions in personnel, which means there will be less money for people to spend in the community,” Ross said.
According to budget figures, taxes derived from consumer spending are the largest contributor to the town budget. Consumer taxes such as the sales tax, meal tax and telecommunications tax are expected to generate more than $8.3 million in the coming fiscal year. Tax rates would not increase in 2010-11 if the proposed budget were passed.
Even in the face of a decreased budget, there will be minimal impact on the Blacksburg community, according to Ross.
“There’s going to be changes but nothing drastic.”
A $50,000 town improvement project that planned to repave a portion of the Huckleberry Trail was removed from the budget. Additionally, this year’s July 4 celebration will be not feature musical performers, which will save the town an estimated $10,000.
However, the town has not abandoned all its improvement projects.
The town will continue to fund and manage the $15 million North Main Improvement Project, which aims to increase pedestrian friendliness and replace the intersection of Prices Fork Road and North Main Street with a roundabout.
The town will also attempt to stimulate the local economy by working in conjunction with several local agencies including Downtown Blacksburg Inc., Blacksburg Partnership and the NRV Economic Alliance.
DBI puts on several events and aims to attract new businesses to the area.
Upcoming events include the Downtown Tailgate to Benefit Haiti fundraiser, Summer Solstice Fest and Steppin’ Out.
DBI event planner Laureen Blakemore discussed how her agency is working with the town council to attract new businesses to the area.
“The town has started different initiatives to encourage different business to set up. One of the things we’re offering is a mentoring program,” Blakemore said.
The mentoring program also offers businesses incentives and improvement grants for businesses.
“We make sure new businesses have a sound business plan and understand how the economy works here in Blacksburg,” Ross said.
Town council member John Bush said Blacksburg is trying to attract new kinds of business.
“I think (the council) is really trying to attract different business and different restaurants that have a better chance of providing a good mix in the downtown are, not just student bar food,” Bush said. “I think we have some really good additions like More Than Coffee and Green’s.”
Bush said citizens attending Tuesday’s public hearing would have a chance to weigh in on the budget proposal.
“This is the opportunity for the public to weigh in and give their commentary on anything they want to in budget,” Bush said.
Bush believes the council will likely approve the new budget Tuesday.
“I feel pretty confident that it will be adopted,” Bush said.