Council approves proposed budget's first reading

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By Ben Orcutt-borcutt@nvdaily.com

FRONT ROYAL -- The Town Council voted 4-2 Monday to affirm on first reading a proposed budget for fiscal 2012.

The $36,959,129 budget is a 1.5 percent increase over the current spending plan, according to interim Town Manager Steven M. Burke.

Councilmen Thomas H. Sayre and Hollis L. Tharpe voted against the proposed FY 2012 budget following a public hearing at which no one from the public spoke.

A second and final reading is scheduled for May 23, but the panel plans to discuss the proposed budget during a work session scheduled for next Monday.

Sayre said he voted against the proposed budget on first reading because it was too high at this time. He said he would explain more of his views during the second reading.

Tharpe said he voted against the budget because of "increases."

"We're going to talk about it next week," Tharpe added. "It could have been a 'yes' or a 'no.' For tonight, 'no.'"

Burke broke down the proposed spending plan for the budget year that starts July 1 during a brief overview. The lion's share of the proposed fiscal 2012 budget revenue is in the energy enterprise fund, which stands at 42.7 percent, or $15,790,437, followed by the general fund at 24.7 percent, or $9,138,825.

Burke explained that the general fund covers such costs as the council, administration, tourism, police, planning and zoning, public works, finance, and other miscellaneous categories, such as a portion of the Front Royal-Warren County Economic Development Authority and Samuels Public Library.

Besides the energy enterprise fund, other enterprise funds are sewer, water and solid waste. There also is a street fund, with $1.5 million in revenue from the Virginia Department of Transportation.

The general fund revenue is based on a real estate tax of 11 cents per $100 of assessed value, with 2 cents generating $225,000 for special projects, Burke said.

To also help balance the budget, the general fund revenue is also based on 64 cents per $100 of assessed value for personal property tax.

No rate adjustment was necessary for revenue for the energy or solid waste enterprise funds, but there was a 30 percent increase in the rate for the sewer enterprise fund and an 8.5 percent rate increase in the water enterprise fund.

The recommended FY 2012 budget also includes personnel additions, such as two new financial analyst positions, a new full-time visitors center manager and a new senior equipment operator for environmental services.

Some positions are set to be reclassified and there also is a proposal for a 1 percent cost of living allowance.