The Valdosta City Council approved the Fiscal Year 2015 Budget for the City of Valdosta at the yesterday's City Council meeting, after having the opportunity to hear the proposed budget at the hearings on June 10 and 11.  City staff presented the council with a balanced budget, as required by the City Charter, and one that City Manager Larry Hanson said was one of the most challenging and difficult budgets prepared in years.

“A significant amount of capital investments are included in the FY 2015 Budget, such as the $32 million Force Main Project and the $23 million Wastewater Treatment Plant Relocation Project, as well as the continuation of  other capital projects in the Utilities Department, which is the city’s highest priority this year,” said City Manager Larry Hanson.  “It’s a solid budget that we feel meets the expectations of our citizens.”

The rising costs of fuel, equipment, vehicles, insurance, chemicals, and supplies that city departments must have to perform their duties, coupled with the decline in major revenue sources, are some of hard facts the councilmembers considered before approving the $82,444,214 budget, which includes a millage rate increase for the first time in 22 years.  

“The FY 2015 Budget is based on sound revenue and expenditure policies to ensure the long-term financial stability of the city,” Hanson said.

Although property taxes have been reduced 11 times in the past 19 years to its current 4.102 rate, the costs of providing services has more than doubled over that same time period.  In fact, the last millage rate increase was in 1992 when the city’s millage was raised to 6.25 mills. Even with the increase from 4.102 to 6.102 mills, Valdosta—Georgia’s 14th largest city—will continue to have among the lowest millage rate among a group of peer cities in the state and its millage rate remains lower than it was in 1992. 

Citizens with a home valued at $100,000 will see an average increase of $5.66 per month. The median value of homes in the city is $124,000.  Homeowners in this category will see an average increase of $7.34 per month. 

"This is the first time since 1992 that staff has recommended an increase in the millage rate," said Deputy City Manager for Administration Mark Barber.  "If we had not put into place the appropriate financial policies, had the strong support of our mayor and council, and if our employees were not such good stewards of tax payers' dollars, we would have been up here long before now asking for this increase, especially given our current economic environment."

For the last decade, the city has relied on new development to grow the digest, as well as retail sales, as the backbone of the local economy. 

“In recent years, new growth has slowed, sales tax collections have declined, and exemptions have further eroded sales tax collections, yet the expectations for services has remained the same or increased,” said Hanson.  “We are optimistic that development in the city will continue to rebound, thus improving revenue assumptions in future years.”

The FY 2015 Budget represents a city operating in a fiscally responsible manner with no general obligation bonded debt, has a solid bond rating with a continued positive outlook, and continues to retain a sufficient fund balance, something Hanson credits to the outstanding work of the city department heads, finance director, budget staff and the entire city workforce. 

To manage through the challenges in recent years, the city has eliminated or de-funded 33 positions—or 5% of its workforce—and currently has 51 vacant positions, some of which will remain vacant.

“The City of Valdosta has proactively managed our finances through the slowly recovering economy in a measured and responsible way, without major consequences to our service delivery. We will remain vigilant and are doing all we can with what we have to ensure the economic health and viability of the city,” said Mayor John Gayle.

Citizens may view the 2015 City of Valdosta Budget at www.valdostacity.com.