County Administrator Rebecca Dickson presented her revised recommended 2011 budget of $40.5 million to the Board of Supervisors last week, and will hear comments from Goochland residents at tomorrow night’s public hearing. 

The proposed plan is down 7.3 percent from this year’s operating budget of $43.7 million, and the county is still facing a budget shortfall of nearly $1.5 million for next year.

Real estate taxes, which fell 8.2 percent this year and are expected to decline an additional four percent next year, are the county’s largest source of income, said Dickson earlier this month.

There is little to no growth expected in the county’s other sources of income, such as personal property taxes, recordation taxes, business license taxes, building permits and investment income.

At this month’s Board of Supervisors meeting Dickson offered four options to balance the budget: Further reductions, two- or –three cent tax rate increases combined with the use of fund balance, or a 4-cent tax rate increase.

At last week’s work session, however, she changed her recommendations to reflect changes made in retirement rates and compensation board reimbursements.

“Tonight I am narrowing my recommendations to two,” she said at last week’s Board of Supervisors meeting, citing the 4-cent increase as her primary choice.

“Retirement savings have restored most compensation board distributions to localities, including $310,000 for Goochland,” said Dickson.

The retirement plan changes will provide a significant one-time expenditure savings, said Dickson, but added, “That savings, much like the stimulus funds, will go away.”

Dickson is proposing that the county use $282,000 of the $310,000 received from the state to restore some cuts that had been made in the Feb. 23 proposed budget. In the updated recommended budget, that would include a 4-cent tax rate increase, furlough days for public safety departments would be eliminated, and some reductions to the sheriff’s office and the fire and rescue and animal control departments would be restored.

The planning commission would continue at 10 members, and countywide furlough days, with the exception of public safety employees, would drop from three to two.

Dickson also recommends that the county reserve $170,000 of the restored funds for use in fiscal 2012.

In addition to balancing the 2011 budget, a 4-cent increase would mean that no further reductions beyond those already recommended would be made to the recommended school and county budgets.

The increase would also establish a higher revenue baseline for the fiscal 2012, which is already facing a net challenge of more than $1.9 million.

Dickson said that if assessed values decline at the expected rate of four percent next year, then a second real estate tax rate increase may be needed in April 2011 if the county chooses to raise taxes by only two cents this year.

The current tax rate in Goochland County is 53 cents per $100 in assessed value. Tax rates in surrounding counties include 62 cents in Louisa, 71 cents in Powhatan, 87 cents in Henrico and 95 cents in Chesterfield.

Another way to raise funds, according to the proposed budget, would be to raise convenience center fees, and county and Tuckahoe Creek Service District utility rates. Although utility rate changes do not affect general fund revenues, they can help reduce general fund expenses.

Dickson has previously said that if supervisors do not raise the tax rate, possible reductions could include the elimination of six more county positions.

A public hearing on the budget, tax rates, the capital improvement program, utility rates and ordinance changes will be held March 30 at the Goochland High School Auditorium, 3250-A River Road West, at 7 p.m. The Board of Supervisors is scheduled to make its final decisions regarding the budget on April 6.