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PART FOUR 4
Tax Rates
Any proposal for a tax increase must be published in a newspaper at least seven days before adoption, and a
public hearing must be held before adopting the tax increase. When the reassessment of real property results in
the total real property tax levies increasing by more than 1 percent, a locality must first publish a notice of its intent
in the newspaper seven days prior to a public hearing on the proposed tax rate. The public hearing may not be
held at the same time as the budget hearing.29
Action by Council on the Budget
After the conclusion of the public hearing, Council may insert new items of expenditures or may increase,
decrease or strike out items of expenditure in the budget, except that no item of expenditure for debt service
as required by law shall be reduced or stricken out. The Council shall in no event adopt a general budget in
which the total expenditures exceed the revenues, estimated as hereinbefore provided, unless at the same time
it adopts measures for providing additional revenue in the ensuing fiscal year sufficient to make up the difference.
Appropriations Ordinance
The local budget is for “informative and fiscal planning purposes only.” Therefore, the adoption of the budget is
accompanied by passage of an appropriations ordinance. The appropriations ordinance is the legal instrument
that distributes funds for the fiscal year.30 The City Manager has the authority to transfer budgeted amounts
among departments within any fund; however any revisions altering the total appropriations of any fund must
be approved by City Council. The budget may also be accompanied by ordinances altering the tax rate on real
estate and personal property or levying a new tax or altering the rate of other taxes necessary to balance the
budget.
Budget Monitoring
Once the budget is approved, there is significant focus on the control of expenditures and monitoring revenues.
Ongoing monitoring of revenues and expenditures throughout the year is a responsibility shared by department
directors, the Department of Budget and Evaluation and the City Manager. The City Manager keeps City Council
appraised of the ongoing financial condition of the City through quarterly financial reports.
CAPITAL BUDGET
The Capital Improvements Plan (CIP) is a multi-year planning document. In its most basic form, the CIP is a five-
year schedule of capital improvements and includes new construction or renovations to existing school buildings
and other city structures, major street, bridge, and sewer repair projects, and upgrades to existing park facilities
or new park structures, among other planned capital expenditures. The CIP lists each capital item approved by
29
VML
30
VML; Va. Code 58.1-3321
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