Norfolk passes $1.1 billion budget

NORFOLK

Residents will pay more in some city fees next year and receive fewer services under the $1.1 billion budget that the City Council unanimously passed Tuesday.

The budget, which takes effect July 1, will eliminate about 220 city jobs, reduce library and recreation center hours, and increase personal-property taxes and late payments on vehicle license fees.

Nearly every facet of city government will absorb cuts, including large reductions to human services, libraries, and parks and recreation. Overall, the budget is about 3 percent less than this fiscal year's, which ends June 30, and 5 percent smaller than the budget for fiscal 2008-09.

The cuts were necessary because the economic downturn has reduced tax revenues for the second year in a row, City Manager Regina V.K. Williams said.

"It was one of the most difficult budgets I've ever had to put together," Williams said.

The school system, however, will receive $3.5 million more in funding from the city than it did this fiscal year. Still, because of a $30 million reduction in state funding, the schools will operate with less money and fewer employees.

A small group of parents and members of the Norfolk Federation of Teachers picketed City Hall on Tuesday in support of the full $5.7 million budget increase the School Board had requested.

Jane Bethel, who heads a city employees' union, spoke to the council after the budget passed and lamented the job cuts. "People don't take and stay in city jobs to get rich, but for job security," she said.

Williams has said there will not be layoffs because there are enough vacancies that anyone whose job is eliminated will be offered another position. However, most would have different responsibilities and, potentially, less pay.

The personal-property tax, including taxes on motor vehicles and business property such as machinery and airplanes, will rise from $4.25 of $100 of assessed value to $4.33 per $100. Officials said that will cost the typical car owner about $5 more per year.

Norfolk's personal-property tax will remain the second-highest in Hampton Roads, less than Portsmouth's, which is $5 of $100 of assessed value but more than Virginia Beach's, which is $3.70 of $100 of assessed value. Because of a state law regarding public notices for tax increases, the council passed 5 cents of the increase on Tuesday. It will hold a public hearing and pass the additional 3 -cent increase next Tuesday.

In addition, there will be a $10 fee for late payments on vehicle license fees, which is expected to generate $400,000 per year. Numerous other fees are also rising, including overdue book fines, prices for cemetery lots, and the cost of renting a picnic area.

Even so, Councilman Paul R. Riddick said Williams did as well as she could. "We cut the budget while maintaining critical services," he said.

Williams warned that next year's budget will be just as difficult to balance. Housing prices have continued to decline, and that means real estate tax revenues probably will shrink again next year.

After 15 years of increases, residential assessments are expected to fall 4.6 percent on July 1, meaning the typical homeowner will save about $118 in real estate taxes, she said.

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com