Beach seeks to use $45M of savings for budget

VIRGINIA BEACH

City officials propose tapping nearly $45 million in savings to balance the $1.89 billion 2009-10 budget that avoids tax increases and layoffs.

But using surplus money to make up for a $103 million city and schools shortfall is a one-time strategy and the economy will have to improve for the Beach to balance its future budgets, said Catheryn Whitesell, the city's budget director.

"It's basically using your savings account to pay your mortgage," Whitesell said.

The city dipped into reserve money or savings from funds that pay for the preservation of agricultural land, tourism advertising, major projects like the convention center, and schools.

"These are rainy day funds, and this is pretty much a rainy day," Councilman Jim Wood said.

The proposed budget, presented to the City Council on Tuesday, marks the first time since 1992 the Beach's proposed spending plan decreased from the previous year. It includes a net loss of 110 city and school positions; no salary rais es for employees; increases in several parks and recreation fees; and the elimination of Beach Magazine, the City Page and the Consumer Affairs office.

The local consumers office is operated by the commonwealth's attorney's office at a cost of $331,810. It duplicates services because the state also fields complaints about companies, Whitesell said.

The budget includes some proposed additions.

The Police Department would get a cold-case squad. The emergency medical service department would be able to buy 10 defibrillators. The city would create a strategic growth office to oversee areas for future development.

The loss of state funding for roads and the tight budget also mean several construction projects will be delayed, White-sell said. Among them are the animal shelter replacement, the Williams Farm Community Recreation Center and several road projects.

The city is shifting money from other projects and funds to pay for an additional $4 million in road paving and resurfacing and to increase the budget of the Laskin Road Gateway work by $5.1 million.

City officials want to transform Laskin Road, a primary entrance to the Oceanfront, into a pedestrian-friendly area and support a mixed-use development by hotelier Bruce Thompson. The city budgeted $12.5 million for the project last year, but costs have increased.

The city and schools are getting a boost from the federal stimulus package. The city received about $13 million. The schools received $48.6 million, which hasn't been put into the budget yet.

With the schools getting an influx of stimulus money and a declining student enrollment, city officials have proposed taking $8.8 million from the division's reserve fund.

Some School Board members are upset, but council members have defended the decision and said it's all taxpayer money.

There will be public hearings on the budget April 16 and 28. The City Council is scheduled to vote on the plan May 12.

Pilot writer Aaron Applegate contributed to this report.

Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com