Page 10 - Town of Bedford FY 2018-2019 Budget.pdf

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¾ The Town remains an active regional partner in many programs. We currently participate in
regional marketing and economic development, and police and emergency services. We also
participate in cooperative services such as the Blue Ridge Power Agency, the Region 2000
Regional Commission, and the Municipal Electric Power Association of Virginia.
¾ The Town expects to maintain and strengthen relationships with economic development
partners such as Bedford County, the Virginia Small Business Development Center (SBDC), the
Virginia Economic Development Partnership (Yes Virginia), the Bedford Area Chamber of
Commerce, the Bedford County Tourism Department, and private funding partners.

BUDGET OVERVIEW

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On February 20 , February 27 , and March 13 of 2018 the Town Council met with Town staff to
discuss the tenets of the proposed Town budget. On March 27, 2018, Town Council conducted a public
hearing to receive citizen comments and to provide interested parties an opportunity to publicly voice
their opinion on the contents of the budget document. As a result of that hearing and the discussions
with Council agreed upon changes were made to the proposed budget before it was ultimately adopted
on April 10, 2018.

Revenues
Revenues
The Town revenue sources appear to be stable but still subject to economic trends at the state and
national level. The Commonwealth as a whole is in better fiscal condition but faces many demands for
spending proposals. The State budget has stabilized spending levels for local services as well as providing
longer term funding for transportation issues. We will continue to carefully evaluate the municipal
services provided to our citizens to ensure that we are as efficient as possible in the delivery of those
services. Town staff will continue to review the budget to achieve any possible efficiency. We are also
continuing to focus our resources to properly maintain current Town facilities.

¾ Real Estate Tax: The spending plan put forth in the budget requires no increase in the Town real
estate tax rate of $0.32 per one hundred dollars of assessed valuation.
¾ Personal Property Tax: The personal property tax rates are set at the lowest possible level that
will enable the Town to receive the Personal Property Tax Relief Act (PPTRA) payment of
$280,647. The adopted tax rate for calendar year 2018 is $1.06 per one hundred dollars of
assessed value on vehicles valued at $20,000 dollars or more. PPTRA funds provide relief on the
following categories which will not be taxed: (a) Personal use vehicles valued up to $20,000 will
be eligible for 100% tax relief, and (b) Personal use vehicles valued at $20,001 or more shall only
receive 100% tax relief on the first $20,000 of value with the applicable tax rate applied to the
value over $20,000. All other vehicles which do not meet the definition of “qualifying” (business
use vehicles, farm use vehicles, motor homes, etc.) will not be eligible for any form of tax relief
under this program.
¾ Meals Tax: The current rate set in this budget is 5.5%. As in last year’s adopted budget, .5% of
this rate is to be restricted for use solely toward economic development and community
revitalization.
¾ Transient Occupancy (Lodging) Tax: The current rate on lodging tax is set at 5.0%.
¾ Cigarette Tax: The current rate on cigarette tax is $0.30 per pack.
¾ Sales Tax: The current rate is based on the methodology in State Code § 58.1-605 which
formulates that Incorporated Towns receive a proportionate amount of County collected sales
tax commensurate with school age population ratio multiplied by 50% of collected receipts.

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