County Administrator Rebecca Dickson presented her recommended 2011 budget of $40.5 million at a workshop session of the Board of Supervisors last Tuesday. 

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.

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.

Dickson offered supervisors 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.

In addition to balancing the 2011 budget, a 4-cent increase would, said Dickson, restore about $800,000 in 2010 revenue to fund balance and establish a higher revenue baseline for the 2012 budget, which is already facing a net challenge of $1.7 million.

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.

At last week’s meeting several citizens stood to support a tax rate increase.

“I believe the proposed budget is as far as the county can go,“ said Karron Myrick of Maidens. “I would like to plead with the Board of Supervisors to raise the tax rate at four cents, at a minimum.”

Robin Lind of Manakin agreed, saying, “We need to reset the tax rate to get at least as much money as we got last year.”

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

The state is expected to reduce aid to localities, especially in public education and in compensation board reimbursements for constitutional officers such as the sheriff, treasurer and commissioner of the revenue.

Also affecting the budget are rising healthcare and retirement costs, expected to total nearly $200,000 in 2011; permanent funding for a deputy county administrator, expected to cost $97,500 from the general fund; and pay-as-you go funding for the Pro Forma Capital Improvement Plan, scheduled to cost $200,000.

“If nothing changes, the budget still changes,” said Dickson. “If we do nothing else, the cost does tend to go up.”

A public hearing on the budget, tax rates, the capital improvement program, utility rates and ordinance changes will be held March 30. The Board of Supervisors is scheduled to make its final decisions regarding the budget on April 6.