Council briefed on revenue projections; $5M surplus projected for current fiscal year
The end of the fiscal year is 161 days away, and it’ll be about ten months or so until accountants will know if the City of Charlottesville will have a shortfall or a surplus. Council gets a quarterly briefing on revenue collections and spending and got a projection for another surplus from city staff.
“We’re looking at a total of about $5 million,” said budget director Krisy Hammill. “Most of those are driven by the tax revenue sources that we continue to talk about. The real estate tax… reassessment notices for calendar year 2023 will be going out at the end of this month.”
Hammill said the new figures will likely increase the surplus. Albemarle County’s assessments were up an average of 13.46 percent for 2023. (read that story)
Interim City Manager Michael C. Rogers said he was cautious and pointed out there are still remaining unknowns about potential expenses the city may incur to raise salaries.
“The compensation study that we’ve talked about, we don’t know what the price tag on that is going to be and the choices we will have to make when that is presented, as well as a collective bargaining,” Rogers said.
However, Rogers said he felt the picture was pretty solid but that money is not unlimited. Hammill said if there is a downturn, the surplus could go the other way.
“If there were to be a recession, it’s very possible that some of these gains that we’re reporting to you for right now for meals, sales, lodging could be not there,” Hammill said.
For those interested in the development of the budget, Rogers and the budget staff are having a forum on January 31.
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