ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Monday, December 30, 1996 TAG: 9612300020
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
DATELINE: FINCASTLE
SOURCE: MATT CHITTUM AND TODD JACKSON STAFF WRITERS
THE LEDGER LOOKS BEST IN BLACK and Botetourt County has turned that creed into an $18 million coffer.
All governments should have Botetourt County's problem.
Its general fund balance fell off $400,327 from fiscal year 1995 to 1996.
But that still leaves the county $18 million in the black, even after it shelled out $41 million for the current year's budget, according to an audit of the county's finances released this month.
That's about $690 for every man, woman and child in Botetourt.
The audit, based on Botetourt's finances in June, spells out the reasons Botetourt County has earned a reputation for making the right financial moves, especially in economic development.
"We like to try to stay ahead of the game," said County Administrator Jerry Burgess.
However, residents shouldn't expect a windfall check in the mail.
And don't expect any particular government department, such as the School Board, to get a bigger piece of the budget pie any time soon.
Burgess said it's not that simple. First, only $4 million or less (the amount fluctuates during the year) is undesignated, take-it-as-you-need-it money.
The rest is tied up in various contingency funds created by the Board of Supervisors. There's a $2.9 million fund for public works projects and emergencies, and a $2.9 million fund for ongoing projects that carry over from one year to another.
And there's the county's crown jewel, a $5 million economic development fund, in case the county gets a chance to land a huge employer and needs extra bait for the hook.
The economic development fund has been replenished every year since its inception in 1993, and because of the money the county has on hand, it has been able to tap Gov. George Allen's opportunity fund - which requires a local match - five times. No other county has received money from the state economic development fund more than twice.
Burgess compares Botetourt County's strategy to what smart family budget managers do. Put some money into one account to pay for kids' college tuition down the road, some more into a retirement account, still more into a fund for household emergencies. And don't touch any of it unless you absolutely have to.
Botetourt County hasn't.
A committee - Burgess, the county's treasurer, a representative of the public, and the chairman of the Board of Supervisors - sits down and decides what it thinks the county's financial priorities should be.
The committee passes along recommendations to the supervisors, who take final action.
The recent audit shows the county is in a position enjoyed by few localities: Its $18 million fund balance is equal to 45 percent of its total budget.
It's a good idea to have some money on hand to reassure people who hold the county's municipal bonds.
"We want to always show those we owe money to we can always pay our debt," Burgess said.
It's paying off in other ways, too. The county received high bond ratings this year from both the Moody's and Standard & Poor's analysts.
But $18 million?
Municipal bond analysts look for counties to have a surplus equal to 5 percent to 10 percent of their annual budgets. Roanoke County, which has a higher bond rating than Botetourt, had a fund balance of $8.6 million at the beginning of this fiscal year against a total budget of $90 million. That's just under 10 percent.
However, Burgess said, Botetourt's percentage will continue to drop in coming years, as the county feels more "pressure to spend" for services to satisfy an increasing population.
Typically, when a local government has as much money as Botetourt County, it means residents are either overtaxed or they aren't getting enough return on their taxes in the form of services.
Compared with other counties in Virginia, Botetourt's taxes are not high. At 75 cents per $100 of assessed value on real estate, they are just over the statewide average for counties: 69 cents. The Botetourt tax rate is about 25 percent lower than Roanoke and Roanoke County, but both those localities provide more services, such as garbage collection.
Botetourt hasn't had a tax increase in 15 years, Burgess said. The county has expanded its tax base by luring a string of new industries, which reduces the tax load on individuals.
Botetourt is about to begin a general reassessment of property values to be effective in 1998. Most people will pay more in taxes, because their land will be deemed worth more.
But Supervisors John Shiflett and Bill Loope said they plan to work to get the tax rate reduced to offset the higher property values.
"I'd like to see that," said DeWayne Blough of Cloverdale. "I just don't believe it's going to happen."
Blough, a former Botetourt School Board member, said a tax cut wouldn't necessarily thrill him. If the county's piling up that kind of dough at current tax rates, he said, he'd just as soon see them keep at it and put more money into services, especially the school system.
At budget time in April, the supervisors gave the School Board $1.2 million less than it asked for, causing the School Board to buy fewer buses than it usually does and reduce teacher's raises. Many residents complained that the supervisors should have turned over some of the surplus and given the schools what they needed.
Blough said he'd also like to see the county begin providing garbage and recycling collection. Residents now must hire private collectors or take their trash to the landfill.
Charles Downs of the Buchanan area said he has no complaints about the amount of taxes he pays to the county, but he'd like to see his area get a little more in return.
"The county has grown, and there's more revenue with each person," he said, but it's all spent in Blue Ridge and Daleville. "Buchanan gets the back teat."
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