Hanover County Administrator Cecil R. "Rhu" Harris Jr. on Wednesday proposed cutting 50 positions in a fiscal 2013 budget that is short by $6.2 million in general fund revenue largely because of declining real property values.
Harris presented a proposed $367.4 million total budget, which would take effect July 1, to the county's Board of Supervisors.
This marks the fourth consecutive year of cuts to the budget. General fund revenues have decreased by $19.2 million during that span. The general fund is the county's primary operating fund.
Harris said the county tried to ensure that public safety, education and human services will be minimally affected by the cuts.
The proposed budget is down $23.9 million from the current financial plan of $391.3 million. In the proposed budget, all property tax rates remain the same.
"We have respected the declining housing market and the recessionary impact felt by many citizens and businesses by not raising the tax rate to balance the budget," Harris said.
Real property tax revenue is down $5.6 million, heavily contributing to the decreased revenue in the $199.4 million general fund, which is down from the current $207.7 million general fund.
Harris also proposed using $2.9 million in prior-year savings to address part of the $6.2 million shortfall.
Hanover is facing the added cost of $2.5 million from such factors as debt service related to the 2005 bond referendum, employer-provided benefits and contractual escalators for goods and services provided to the county.
One such increase is the start of a maintenance agreement with the new emergency communications system that will cost $1.1 million annually.
Of the 50 positions proposed to be cut, more than 40 were funded in the current fiscal year, but the remainder were unfunded in previous budgets and are being formally eliminated.
Harris did not identify which departments were at risk to lose positions, but he told the board that the Sherriff's Office and fire/EMS department "will continue to have current staffing resources available to provide a safe and secure community."
"There will not be any reductions in staff in either of those departments," he said. The personnel reductions are expected to be achieved through attrition, retirement and reductions in force.
A program approved earlier this month by the board offers incentives to employees who wish to retire or otherwise voluntarily end their employment with the county. Employees have until the end of February to sign up for the program.
Other cuts proposed by Harris include the suspension of career development programs, lower printing and distribution costs, and deferring infrastructure projects.
"I know some will suggest that the financial reductions outlined in this budget will lessen us as a local government, but I differ, as I think our citizens and employees will meet tomorrow's challenges with a smaller government," he said.
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