Orange presents budget

Orange Town Council members got their first look at a $6.7 million 2010-11 budget that holds real estate taxes steady in an unstable economy.
At a work session last week, town manager John Bailey presented his budget to council members after crafting it with department heads and town finance director Greg Woods.
"The town's not hurting as bad as the federal government or the state or the county," Bailey said, "but things are still pretty tight." Most town department budget items remained static or dropped, he said.
Bailey's proposed budget calls for $4.157 million in general fund revenues to pay for $4.153 in general fund expenditures. Water revenues are estimated at $1.224 million compared to $1.199 million in water expenses and sewer revenues are expected to total $1.383 million offset by $1.350 million in sewage treatment expenses. Overall, expected revenues ($6.765 million) outpace expenditures ($6.703 million) by about $62,400.
In Bailey's proposed budget, town real estate taxes (which generate approximately $500,000) would remain $.114 per $100 of assessed value. In a housekeeping move, personal property taxes would increase from $.60 to $.83 but would be assessed differently to make the move revenue-neutral. The move aligns the town's rate of assessment with the county's.
Bailey said there was no funding for cost of living increases or other salary increases in the budget. There is a slight increase in personnel costs because of rising health insurance premiums, he noted.
Prior to the work session, council member Kent Higginbotham suggested the council reconsider its own compensation.
"We need to talk about that again," he said. "Obviously, times are tough and this is a significant amount of money."
Council members make $300 a month, with the mayor making $400 monthly. Council members are also eligible for town-sponsored health insurance.
"Is it too much?" Higginbotham wondered.
"Have you been to Food Lion lately?" council member Harry Hopkins countered. "Prices aren't going down. I realize $300 may not mean a lot to some people, but to me it does."
Higginbotham said the council needed a sincere discussion about the topic and suggested adding it to the upcoming agenda.
Other items expected to be discussed in upcoming budget work sessions include paying for the town's new wastewater treatment plant, determining a permanent location for the town's police department and paying down the town's long-term debt.
Copies of the proposed budget are available for review on the town's website at http://va-orange.civicplus.com/Archive.aspx?AMID=35.