In Charlottesville, the budget process never really stops. In fact, it keeps on going up to the last minute of adoption. New items were added at the April 10 work session that had not previously come up.
City Council convenes tonight at 6:30 p.m. for a special meeting to adopt a $265.2 million budget for the fiscal year that begins on July 1, 2025. At the beginning of the April 10 work session, they learned about additional spending that can happen because new funding has been found since the beginning of the budget process in March.
“We do have supplemental revenue over and above the proposed budget of $774,263,” said Krisy Hammill, the city’s budget director.
The driver of that change was an additional $700,000 increase in Business and Professional Licenses that had not been factored in.
There were many numbers thrown around during the final work session. Before Council signed off on how to spend that money, City Manager Sam Sanders went through how $915,620 in “Council Discretionary Funds” would be spent to leave a balance of $440,406 to spend.
“Kind of thinking that with all the volatility that we have in DC, there could very easily be a series of moments that come up and that this would give you the flexibility to make some decisions and how we could support gaps in what could happen based on decisions and how it actually lands in the community,” Sanders said.
Staff codified a list of what Council had already decided to spend over the course of four budget work sessions.
- $250,000 to the Blue Ridge Coalition for the Homeless to cover the costs of a federal grant not obtained because there was an error related to a recent leadership transition.
- $162,000 to the Piedmont Housing Alliance to pay for the cost of staff who work on eviction prevention.
- $50,000 in cash to the Piedmont Housing Alliance related to eviction prevention.
- An additional $43,150 to the Boys and Girls Club for a total of $116,000 in the FY26 budget.
- An additional $28,800 to Lighthouse Studios to fund two programs for a total funding of $40,000 in the FY26 budget.
- An additional $6,000 to Loaves and Fishes to bring their total funding to $50,000 for FY26.
- An additional $1,200 to Piedmont CASA for a total of $10,000.
- An additional $6,600 to Live Arts for a total of $16,000.
- An additional $7,100 to Legal Aid Justice Center for a total of $40,000
- An additional $1,500 to SARA for a total of $25,000.
- A total of $104,261 in capital improvement program funds will be redirected to the Dogwood Vietnam Memorial. Read this story for more information.
At the meeting, Hammill handed out a spreadsheet that provided more details about other programs that were added to the list such as an annual payment to the Jefferson School African American Heritage Center. This was initially left out of the budget because the organization did not fill out an application through a portal called Zoom Grants.
The payment to the Jefferson School African American Heritage Center was $228,993 in FY2024 and $246,993 in FY2025. The organization is considered fundamental which means it no longer has to compete for funding. The payment for FY2026 will be $228,200.
According to ProPublica, the center had revenues of $1,206,084 in fiscal year FY24. (go see)
“By not submitting through Zoom Grants, they didn’t appear on the list, but they didn’t know that they had to still submit through Zoom Grants,” Sanders said. “So we have some course corrections that we need to do there and making sure that everyone understands what they have to do still, even though they’re in a non competitive round.”
Sanders said there was a similar error with the Charlottesville Redevelopment and Housing Authority. That government body is considered “fundamental” but also sought additional funding.
“We have to have a conversation with them about their pursuits of funding going forward to your point they could be here and in the competitive rounds,” Sanders said. “I don’t particularly care for that. I think that makes it double dipping.”
Sanders said Deputy City Manager James Freas and the Office of Community Solutions are currently performing an audit of CRHA as a way of building a better working relationship.
City Councilor Michael Payne, a member of the CRHA Board, called for a joint work session to plan for the likelihood of reduced federal funding for public housing units.
At one point in the conversation, Council initially signaled a willingness to add an additional $16,000 to the United Way for their Prosper program. Deputy City Manager Ashley Marshall made a pitch for the program at the April 10 meeting. The program had previously been called the Financial Resiliency Task Force.
Another last minute item is $30,000 for the Tonsler League headed by former City Councilor and current CRHA Board Wes Bellamy. The organization had expected that the City of Charlottesville would have received an additional $250,000 from the state government for operations, but Governor Glenn Youngkin recently vetoed that from the budget.
“He received a $250,000 grant for this current year that ends in June,” Sanders said. “I am planning to check with him to see if. If he will expend all of that and avoid the risk of having to send anything back.”
Council supported giving the Tonsler League $30,000.
At half an hour into the final budget work session held three days after the final public hearing, Sanders asked Council if there was any other item they might want to fund and gave them the current balance.
“The question that we are really posing at this point is, is there anything else that you all have been pondering?” Sanders asked. “Because we try to remind you that this is the end of the road and we are truly down to $394,000 that today, right now at this moment, is your Council Strategic Initiatives Fund.”
That prompted Councilor Lloyd Snook to express a concern.
“So we haven’t even gotten to the fiscal year and we’ve already cut it down?” Snook asked.
“That’s correct,” Sanders said.
Snook said he felt the process was not appropriate.
“I find myself trying to figure out what possible process we’re advancing here,” Snook said. “And the answer is it’s still back to whatever anybody throws up against the wall at Council at the last minute. I just think that’s a terrible way to do business.”
Sanders said he understood Snook’s concern
“I understand and appreciate the last minute nature of it and I’m not a fan of always doing that and I think in these, this, these two moments specifically, we can identify a way to bring you critical information so that you can have that presented to you and then you can make that determination on if you believe the item is ready to go forward,” Sanders said, adding that both Marshall and Bellamy could appear before Council to formally make a pitch.
There were at least three Councilors who supported funding for Tonsler, but not yet for the Prosper Program.
There was also a long discussion about increasing the number of transit drivers to 82 in order to restore service to pre-pandemic levels. This comment from Sanders finishes off that discussion and sets up a conversation for the future.
“I think what I heard was that you are not going to attempt to unpack the budget at this late stage and find a way to make 82 drivers a reality,” Sanders said. “But what you are indicating is that you support the desire for added drivers and that you’re looking to have us revisit that with you at some point in the future later in 2025 for the possible consideration of the use of one time funds for the bridge that would be required to get us to the next budget where we will realize the true cost.”
Sanders also said he still wants to hold on to the $22.4 million surplus from FY2024 in case federal programs are cut.
“The conversations that are being had in regards to SNAP and Medicaid are real in that they’re big,” Sanders said. “And if those cuts were to occur, we will see a number of our constituency impacted directly by that.”
Sanders said that while the city is blessed to have a large surplus, it will go very quickly if the local government picks up what had been a federal program.
Tonight’s meeting to adopt is not the end of the process. Because of a second advertising error, Council still has to hold a public hearing on the tax rates and that will take place at the next regular meeting on August April 21. By law, Council cannot adopt those tax rates at that meeting and must wait at least three days. A second special meeting will be held on August April 24.
Other items:
- Sanders had an update on a potential low-barrier shelter. The General Assembly’s version of the budget had $1.5 million going to the City of Charlottesville for this purpose, and Youngkin cut this in half. The budget has not yet been finalized and Sanders said Senator Creigh Deeds is still trying to make the case to restore the funding.
- Sanders said he believes the city would need to provide operating funds to any grocery that sets up at 501 Cherry Avenue.
- There is still a possibility that the city might provide funding for UVA’s affordable housing project at 10th and Wertland. They will be asked to submit a request as part of the next funding cycle this fall.
Before you go: This will be sent out in the next edition of Charlottesville Community Engagement. This is the only account of this meeting.
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