January 2025, the majority Town Council voted to move 50% of the Meals Tax (about $1.5 million) from General Fund to Utility Fund. This action was in keeping their campaign promise to reduce water and sewer rates. This change will take effect July 1st, 2025. However, Council first must determine what services to eliminate to achieve a savings of $1.5 million. These budget discussions will soon begin. Let’s review:
1. Spring 2023 – Town Council reviewed ALL line items in the budget over 30 hours. $421,000 reduction in expenses was achieved (Mayor Bertaut was on Council during this time).
Upon completion Council adopted a budget that included the following changes:
· Reduce Employee Compensation by $566,000
· Increase Council and Commissioners pay by 4%
· Increase Water rate by 5%. Increase Sewer Rate by 7% (reduced from requested increase).
Budget was adopted with Rise, Rayner and Williams voting against.
2. Transfer of Meals Tax from General Fund to Utility Fund This concept was analyzed repeatedly during Mayor Fraser’s term. It was not implanted due to caution echoed by Town’s Consultants (Davenport and Stantec), Town’s Financial Department and ALL Town Managers.
On May 22, 2023 Davenport provided a 3 page memo to Council noting the impacts of adopting a policy regarding “Use of Meals Tax to Support Utility Funds”.
Davenport’s memo noted:
· “It is best practice and industry norm to keep funds separate”.
· “This concept is a critical factor in the Town’s very strong credit ratings and has been cited by the National Credit Rating Agencies in their written report”.
3. $1,500,000 Reduction in General Fund – Where will services be reduced?
· Campaign material stated top administrative positions should be eliminated but where?
· Council would need to reduce 50% of police dept to achieve a $1.500,000 savings
· Towns are not required to provide refuge collection…savings of $600,000
· Eliminate Parks and Recreation -$900,000
· Eliminate Town Council and Commissioner’s pay – $80,000
· Eliminate Town Manager – $185,000
4. Future expenses
· Permanent Police Headquarters. Lease will soon expire at current location. Council recently invested $1,500,000 to upgrade).
· New Transportation Plan – $200,000 to $500,000 PLUS depending upon the scope
· $34 Million in Utility Infrastructure projects.
· Vice Mayor Nett noted Purcellville “must revamp our pay structure to be more competitive with surrounding jurisdictions and fund a full-time detective”. In 2023 Mayor Bertaut noted “he is voting to give existing staff who is already paid as well as surrounding jurisdictions a very healthy pay increase not a decrease”.
I was Financed Chairman for 8 years while on Council. I know our staff has always considered cost and what is in the best interest of Purcellville when adopting department budgets. As of today, this has not changed. So where will the reduction in services be made?
By Beverly Chiasson
