Matt Gentry | The Roanoke Times

The Villas at Peppers Ferry town home development (foreground) and the New River Valley Mall (background). The town of Christiansburg depends on the sources of property tax to finance its budget.

CHRISTIANSBURG -- Could the town finally be feeling its growing pains?

The town's proposed budget for fiscal year 2007-08 is up $3 million -- or about 10 percent -- from the present year. If the new budget is approved, real estate taxes will be up, too -- by 15 percent.

And that's in a town widely known for its propensity to welcome commercial growth -- with the general perception that such business growth increases Christiansburg's tax base to take pressure off town homeowners.

But is the perception reality, and just how healthy is Christiansburg when it comes to expenses versus revenue? That's the question Christiansburg Town Council is debating, more so than it's done in several years. The proposed $39 million budget calls for a 3 percent pay increase for Christiansburg's 200 full-time employees, and the town wants to add six positions in the police department and three more employees in the public works department -- new personnel costs officials say are necessary to adequately service the town's growth. For the police department, that amounts to a 12.5 percent increase in personnel, from 48 officers to 54. Also outlined are major capital improvements, including sewer extensions and improvements, downtown redevelopment, construction on the new aquatic center and upgrades to the wastewater treatment plant.

Although the town actually proposes to decrease its real estate tax rate, from 14.4 cents per $100 to 13 cents, residents will stay pay more because of Montgomery County's recent reassessed real estate values. According to the county's real estate office, the average assessment increased property values 30 percent to 35 percent. Christiansburg residents pay both county and town real estate taxes.

At a public hearing May 15, no resident spoke for or against the town's proposed budget. But Councilman Ernie Wade immediately censured it.

"I cannot support the budget in its current state," Wade said. "I would like to challenge the town administration to go back and produce a budget that won't result in a tax increase."

Wade pointed to the recent county tax jump, stressing that town residents would get a double dose of taxation.

Later, as Mayor Richard Ballengee pointed out that the town's tax rate would be reduced, Wade again spoke out.

"It is a tax increase," he said. "I don't care how you slice it. People don't pay rates -- they pay dollars."

Wade's opposition was echoed by Councilman Dan Canada who said he, too, would not endorse the budget as it now stands.

"I think we can get it in a form that is acceptable," he said.

'Cheap rent'

Assistant Town Manager Barry Helms confirmed May 16 that the proposed increase in real estate taxes would be a little more than 15 percent.

"It's been four years since the last reassessment, and we haven't raised the taxes," he said, noting that the median rate for Virginia towns is 17 cents per $100. Earlier this month, Blacksburg set its real estate tax rate at 22 cents per $100.

With the explosive growth Christiansburg continues to experience, especially in the business sector, some residents question the town's need to place an additional tax burden on residents.

But Mike Barber, a member of council for the past seven years, thinks residents are paying "cheap rent" for the privilege of living in Christiansburg.

"The fact is we provide our residents with police protection, fire protection, rescue protection, a recreation center, a pretty good quality of life," he said, noting that the proposed tax is a small price to pay. Town administrators, he added, "have proven themselves over the years to be fine financial managers."

Businesses, Barber said, support state government through taxes. Four percent of sales tax proceeds go to the state while only 1 percent goes to local government.

Local sales taxes should bring in $1.5 million this year and are expected to produce $1.6 million in the upcoming fiscal year, according to the town's proposed budget.

Estimated revenue this year from business license taxes is $1.4 million. The prepared food tax will bring in $4.2 million. And transient lodging taxes should generate $800,000.

"The businesses pay a lot of tax," Helms said. "People expect more services. More activity requires more services. If you don't have growth, you still have a lot of increases. It's not necessarily the price of growth, it's the price of operation."

Helms pointed to increased oil prices, saying that asphalt and fuel costs have risen for the town.

"About five years ago, the cost was between $30 and $32 per ton for asphalt. This year, it will be in excess of $50."

The biggest budget expense, he added, is related to the town's new $12 million aquatic center, a quality-of-life improvement project. The town expects to spend $9.3 million on that project in the coming year: $8 million on the building and $1.3 million for a public road to the center.

The debate grows

At theMay 15 meeting, Barber reported that the town's police department is stretched thin, saying he fully supports upping the force. He pointed to a new Internet Child Predator Program that will require more attention from detectives.

"We need an additional patrol officer on every shift," adding that the department answered more than 55,000 calls last year. "Our response time has fallen," he said. "Two years ago, it was four minutes. Last year, it was seven or eight minutes."

In a later interview, Canada questioned town administrators about the need for additional officers and was told that retail growth has brought about increased "paper crimes" such as credit card fraud, shoplifting and bad checks.

Likewise, with commercial and residential developments popping up one after the other, the town has had to keep pace with the increased need for street maintenance, fire and rescue service, water and sewer service and other infrastructure demands.

"My thoughts are that we need to look at the commercial growth in the town of Christiansburg," Canada said. "If those businesses put a tremendous strain on our municipal resources ... those businesses should bear the brunt of those expenses. We should not be asking the citizens of the town of Christiansburg to pay for services that we supply.

"I am for pro-growth," he added, "but I am for controlled growth. We need to find a way to share expenses with those who are causing that expense. You can't just keep putting it on the community."

Both Canada and Wade say items can be trimmed from the budget to avoid passing a tax increase. Wade said he thinks requests for new equipment -- such as a $506,000 equipment purchase request by the street department and an additional $292,600 allotment for the police department -- could be put off for a year.

Helms said when town officials and members of the finance committee prepared the budget, they went through it thoroughly several times before releasing the proposal.

"Sure, there are things that can be put off for another year, but it might affect the quality or quantity of service," he said.

Council's newest member, Brad Stipes, said he has a high level of confidence in the town administration.

"I know they do a good job of discussing the needs and meeting those needs cost effectively," Stipes said. "I do have concerns about increasing revenues beyond what is necessary. I am interested in new spending increases and looking at those very carefully."

Stipes, who said he's learning by going through his first budget cycle as a councilman, wants to see $7,000 added to the $3,000 budgeted for an updated Web site that would make the town more visible in the cyber world and, thus, bring increased attention to Christiansburg. He asked council to consider the request at the meeting.

Ballengee said the finance committee will meet with town administrators in the coming week to hash over ideas. Council is supposed to vote on the budget at its next meeting June 5.

Councilwoman Ann Carter, a member of the finance committee along with Ballengee, said several council members have asked about getting together for a work session. In the past, Christiansburg has not had budget work sessions involving council -- something that's relatively common in other localities.

Not known for being a divisive group. Christiansburg's current council has split on the budget issue, at least for now.

Barber, for one, isn't surprised by the disunion.

"We don't just rubber stamp. There are a lot of people who think we do. There's a lot of discussion that goes on," he said.

For Canada, discussion is what needs to happen.

"Bring it on," he said. "I think deep discussions can bring a lot of things to the surface."