The Vienna Town Council unanimously approved a $29.09 million budget for fiscal year 2008 at its public hearing on Monday night, agreeing to an increase to staff salaries, town spending and, in turn, an increased tax rate.
The budget is characterized by the need to increase the overall pay scales of Town of Vienna employees to maintain competition with other area municipalities, elimination of vehicle decal requirements and a need to address general increases to town operating costs. The approved spending plan will require an approximate six percent average increase to real estate tax bills, according to its text.
The real estate tax rate, which was originally proposed to increase to 20.22 cents per every $100 of assessed property value, was amended by the council at a May 29 work session to be reduced a quarter of a cent, saving taxpayers a total of $103,000. Next year’s tax rate was set at 19.96 cents per every $100 of county-assessed property values.
The decrease in the tax rate could be replaced by an increase in the town’s cigarette tax from 50 to 75 cents per pack to go into effect on Aug. 1.
The adjusted rate will increase the average real estate tax bills by a little less than $75 from last year’s final bill, according to town and county figures.
No increases were made to the Bank Net Capital or Utility Tax rate.
THE APPROVED BUDGET was made as "lean" as possible, according to town manager John Schoeberlein, as town staff knew they would be having to deal with necessary increases to staff salaries.
"We asked the departments to keep their requests down, because we knew this was going to boost the budget’s bottom line and they did," Schoeberlein said in a phone interview prior to the approval. "All things considered the budget, I feel, [is] quite reasonable."
While Vienna Mayor M. Jane Seeman said that she would like to see as small of a budget as possible, she was satisfied with the handling of this year’s budget, which required some necessary increase.
"The town manager worked real hard on this budget and we had a last minute work session and were able to get the tax rate down," she said.
Schoeberlein was quick to note that nearly half of the town’s 1.34-cent increase per $100 of assessed value was due to the elimination of the town’s vehicle decal sticker requirement of Vienna residents. Those decals cost between $20 and $25 annually, depending on the type of vehicle.
"Actually, the average home in Vienna with two cars will come out ahead in the end," when it comes to total tax payments said Schoeberlein. As those taxes would then be paid in the annual bills, they will now be deductible in state and federal income taxes, he added.
THE RAISE IN TAXES is something that is not enjoyed but it is outweighed by the need to maintain the level of quality of town services expected by Vienna residents, said council member George Lovelace.
"Because people are such an important part in us carrying out our services to the residents, I think we need to put a priority on that," said Lovelace. "I think from being out recently [during the May elections] that the public is quite aware and generally accepts that sacrifice."
And while cigarette-smokers may end up taking a sizable portion of that burden over the course of the next year, it still remains important, according to council member Dan Dellinger, who proposed the revenue diversification.
"To me, if you can’t cut taxes, you have to find new sources of revenue," said Dellinger. The cigarette tax "is one of those sin taxes and if you want to participate in it, you have to pay to play."
"I just couldn’t see jumping up that much [in taxes] … and just asking the citizen to put up all that money on their own."