MARTINSVILLE, Va. – Martinsville city leaders are weighing tax increases and budget cuts to address a nearly $4 million deficit, as the city also delays the release of a workplace investigation into a former city manager.
City Council voted Tuesday night to postpone releasing the investigation report into former City Manager Aretha Ferrell-Benavides until July 14. Council directed attorneys with Sands Anderson to revise the report based on their recommendations.
The decision comes as officials confront a financial shortfall, they say was partly masked in previous budgets by federal pandemic relief funds from the American Rescue Plan Act (ARPA).
City Manager Rob Fincher said the deficit emerged after funding from ARPA expired, leaving a gap that had not been fully accounted for in long-term planning.
“What was budgeted before didn’t account for the future, basically to say, ‘Hey, this funding’s going to end one day,’” Fincher said.
Rising costs — increasing at their fastest pace in 15 years — have forced the city to make cuts across departments. Even with those reductions, officials say additional revenue is needed, prompting a proposal to raise taxes and fees.
Under the current plan, the average Martinsville resident could pay about $25 more per month, or $300 annually. The proposal includes increases of about $10 per month each for electric and real estate taxes, and $5 per month for trash collection.
“It kills me to ask for more, because I understand how it is,” Fincher said. “It’s one of these things where in order to continue on, we’re going to have to make these changes.”
Some residents voiced concerns about how city funds are being spent.
“I think we’re trying to put money in places that are not really beneficial to us as city residents,” said Sharon Carter, a Martinsville resident.
Councilman Aaron Rawls also expressed frustration during the meeting, criticizing past financial decisions.
“You supported fools, and your taxes are going up. Congratulations,” Rawls said.
The proposal remains preliminary and is expected to change as council continues budget discussions. Officials are also awaiting final details of the state budget to determine how much funding Martinsville will receive from the commonwealth. A first formal vote on the budget is expected in late May.
Tuesday’s meeting also marked the return of Mayor L.C. Jones, who was reinstated last week following a suspension tied to an ongoing recall effort.
“It felt good to try to get back and get in the swing of things,” Jones said after the meeting. “I figure by the end of next week, and once we go through this budget session, I’ll probably be abreast of everything we have going on.”
Jones’ recall trial is scheduled for June. Officials said Colonial Heights Commonwealth’s Attorney Alfred Collins will serve as special prosecutor in the case, replacing Lynchburg Commonwealth’s Attorney Bethany Harrison.