County casts wary eye at state budget shortfall

Photo courtesy of Jacob Bowen Lake Chesdin currently supplies more than half of Chesterfield's water needs, but a new water source will come online about 2020.

While taxpayers are anxious and angry about the financial problems at the national level, Chesterfield is concerned about the trickle-down effect of a $3 billion state budget shortfall. Virginia has yet to tell local governments what programs will be cut or eliminated, but both the county government and Chesterfield County Public Schools (CCPS) are bracing for the notice.

"It is clear that the economic situation is deteriorating much worse than anyone forecasted," County Administrator Jay Stegmaier told the board of supervisors last week. "It will have a significant impact on Chesterfield."

He indicated that budget cuts will probably be brought back to the board, adding that "these are tough times."

Chairman Art Warren asked for an update this month, saying "this is a moving target."

"We are financially sound," assured Dale Supervisor Jim Holland, who is on the Budget & Audit Committee (B&A). "We will be proactive."

As early as next week, the board might confirm nominations to a new Citizen Budget Advisory Committee. Most members will come from the business community. The committee will recommend ways for the county to economize including outsourcing some functions. The real impact of the committee's suggestions is not likely to be felt until the FY11 budget. After reviewing the county budget, the B&A wants the advisory committee to look at the budget of CCPS.

Zip codes

Stegmaier also advised the board that the county is moving ahead with plans to do away with city zip codes in Chesterfield. Community meetings will be scheduled later.

There are about 43,000 residences and 2,800 businesses with a Richmond address. They include the zip codes 23224, 23225, 23234, 23235, 23236 and 23237. Approximately 7,600 homes and 1,440 businesses are in Chesterfield with a Petersburg (23803) or Colonial Heights (23804) address.

Henrico recently conducted a successful vote by its residents/businesses to change away from Richmond addresses because of an estimated $5 million loss in sales tax and personal property tax revenue. Those living in Henrico with a Richmond zip code were erroneously paying their taxes to the city, but Chesterfield's loss is estimated to be less, according to Commissioner of Revenue Joe Horbal. For example, companies with retail stores in Chesterfield Towne Center that have Richmond zip code 23235 transfer the sales taxes to the state, but might report the sales were made in the city when the 1 percent local sales tax should be credited to Chesterfield.

Water supply

Chesterfield is also proceeding with negotiations with Amelia County to establish a reservoir at Dawson Creek along the Appomattox River. During periods of high water flow, water will be pumped into the reservoir that could provide up to 30 million gallons daily. Twenty-one million gallons would be set aside for Chesterfield.

Currently, Lake Chesdin has a capacity of 59 million gallons a day, Swift Creek Reservoir provides 13 million gallons, and Chesterfield also buys water from Richmond that comes from the James River. The negotiations may also include Prince Edward County since when the reservoir is full, the water surface would include that county. The negotiations are expected to be completed by mid-2009, and then engineering studies and applications for the necessary permits would begin.

The new reservoir will not begin to function for 10-12 years.

"We believe we'll have sufficient water through 2060 [then]," said Stegmaier.

Branner Station

Citizens who opposed the 1,614-acre HHHunt community of Branner Station continue to assert they don't have enough information about connector roads proposed to be built from the community north to Route 288 and east to Interstate 95. Three members of Bermuda Advocates for Responsible Development (BARD) complained to the board last week, asking for four meetings to be scheduled and two votes on the east-west road.

"The public has not been kept informed," said BARD President Mike Uzel.

Bermuda Supervisor Dorothy Jaeckle replied that engineering studies were being conducted to determine the best routes. Warren asked Stegmaier to set up a community meeting through Jaeckle.

Last April, the Chesterfield Observer reported that, according to Transportation Director John McCracken, one property owner is in the path of the four-mile road north from the development and an estimated 100 homes will be impacted by the three-mile east-west roadway. At that time, HHHunt and the county had slightly different paths under consideration.

Other actions

• The board approved a change in the date for the Chesterfield County Chamber of Commerce Wine Festival to April 18. It will be the first time the chamber event has ever been held at the county government complex. The chamber maintains $1 million in liability insurance.

• The board approved a $200,000 purchase of one acre for an addition onto the Bensley Community Center. Closing costs are an additional $10,000.