Council holds public hearing on FY21 surplus
Council has held the first of two readings and a public hearing on a mandated review of the city’s budget for fiscal year for 2021, which ended on June 30 of this year. There’s a $5.5 million surplus as well as a $6.7 million reserve fund of cash set aside for COVID. The latter was not tapped. Christopher Cullinan is the city’s Finance Director.
“The audit has been completed and to close out the city’s financial records for fiscal year 2021, several year-end adjustments require City Council action,” Cullinan said. “These adjustments are to carry over unspent funds from the last fiscal year to the current fiscal year.”
Cullinan said one the two main recommendations are to put the COVID reserve into the city’s Capital Improvement Program contingency fund. The other is to put the $5.5 million toward employee compensation. That includes both a bonus and an across-the-board salary increase of six percent for all employees with benefits.
“This is a market adjustment that recognizes the need for the city to retain and recruit qualified employees,” Cullinan said.
This would happen before the results of a study on compensation is completed. Ashley Marshall is one of two deputy city managers currently running the city.
“But what we do know is that the six percent is inadequate to raise us up to where we should be for equitable and appropriate pay,” Marshall said. “So we know that we’re not going to find out later on nine months from now that six percent was too much. That’s not going to be the answer.”
Five people spoke at the public hearing.
“I just want to say that I would like to see a lot of this money, a good portion of it, be used toward the affordable housing fund to shore that up and get that going toward the goal you indicated previously that you’d like to have ten million dollars [a year],” said Mark Kavit.
Both Kimber Hawkey, Martha Smytha and Tanesha Hudson agreed with that position, and said the city should spend money for housing on more than just Charlottesville Redevelopment and Housing Authority.
“I think that there’s things the city could also do with purchasing land space and building things themselves as well,” Hudson said. “That’s something that they need to work towards.”
Hudson said the cost of living adjustment should also extend to hourly employees as well.
Rosia Parker, a newly appointed member of the Charlottesville Redevelopment and Housing Authority, said more of the funding should go to affordable housing, especially for programs to address homeless.
“There are a lot of homeless people that are out here,” Parker said. “You see them when you sit in front of City Hall. You see them as you walk up and down the mall. You see them as you drive up and down the different corridors of Charlottesville. Homelessness is a very threatening danger to people’s lives. Mentally, physically and emotionally.”
After the hearing was closed, outgoing Charlottesville Mayor Nikuyah Walker said she wanted the $6.7 million to be used for a different purpose than putting it in the CIP contingency fund. The next Council will decide how that funding would be used, but Walker will not get a vote.
“If we just simply transfer it to the CIP and then we have those asks that are just presented to Council randomly based on whatever’s on the funded or what makes it from the unfunded to the funded list, I don’t think that serves us,” Walker said.
Vice Mayor Sena Magill supported the transfer to the CIP due to a long list of capital needs.
“Because if we don’t work on some of the basic infrastructure needs of our city as well,” Magill said “That’s where we pay for a lot of the affordable grants is through the CIP and we’re looking at $75 million for just one school.”
Cullinan said the idea of a contingency fund is to be ready for unforeseen events or cost over-runs.
“I think the the critical thing is that it gives you choices and its cash which is easily accessible and you can make fairly quick decisions as opposed to a bond issue which takes time and effort,” Cullinan said.
Council would have to approve any use funds from the CIP contingency.
The second reading will be held at the next City Council meeting on January 3.
Before you go: The time to write and research of this article is covered by paid subscribers to Charlottesville Community Engagement. In fact, this particular installment comes from the December 22, 2021edition of the program. To ensure this research can be sustained, please consider becoming a paid subscriber or contributing monthly through Patreon.