On June 9, Town Council voted 4-3 to reject its own Finance Committee's recommendations for a 2005 budget that must be passed before the end of the month.

Finance Committee Chairperson Betsy Davis said she was "shocked" that three of the four council members who voted "no" (Mark Snyder, Darlene Kirk and Helen Hyre) were members of her own committee, and thus, responsible for proposing the budget in the first place.

"I thought that we were on the same page," Davis said. "I am saddened by the lack of teamwork that was shown during the budget process."

Council Member Margaret New joined Snyder, Kirk and Hyre in the surprise action.

The proposed budget, outlined by Town Administrator Mike Casey, included a ten-cents per thousand-gallon increase in water and sewer rates, incurring approximately $1.25 million in debt for utility improvements, and the addition of a full-time Economic Development Coordinator to the town staff.

Debate began when Council member Margaret New questioned using financial reserves accrued from previous years' revenues to pay for the proposed utility improvements. She suggested setting up a dedicated capital improvements fund instead.

Town Administrator Casey defended the approach, noting that the town's cash reserves had always been used to fund such projects in the past, and that the amount of money being held in reserve was high. Indeed, according to Casey, Middleburg's auditor had expressed some "concern" that the Town was keeping about 60 percent of its total operating budget in the form of cash reserves, the largest amount he'd ever seen.

Debate became more heated when Mark Snyder objected to the town engaging in deficit financing at all. "I'm really disturbed as a member of the Personnel and Finance Committee," he said, expressing "surprise" that the proposed budget would allow the Town to spend beyond its means. According to Snyder, the Finance Committee "hadn't even discussed" the issues previously, though he later admitted having missed one of their meetings.

Opponents of the new budget were especially vocal about the costs of adding an Economic Development staffer, estimated at just over $72,000 in salary and associated expenses.

Council member Catherine ("Bundles") Murdock spoke in favor of the new position, suggesting the town hire the new staffer on a trial basis. If the economic development interests of the town were not well served, she noted, Council could always eliminate the position.

Finance Committee Chair Betsy Davis agreed. "Let it prove itself," she said, noting that a vote against the budget as a whole could easily cause the Town to "lose everything we have", including Middleburg's "Main Street" initiative and chartering by the National Historic Trust.

Eura Lewis admonished her fellow council members, noting pointedly that the time to have fixed the budget was while it was still at the committee level.

After each council member had spoken, Mayor Tim Dimos called for the evening's first vote on the budget. It failed, with Mark Snyder, Helen Hyre, Margaret New and Darlene Kirk opposing the budget and Betsy Davis, Catherine Murdock and Eura Lewis voting "yes".

Mark Snyder then proposed eliminating $82,500 from the proposed budget, thus doing away with what he perceived as deficit spending and the need to tap the town's reserve funds.

Town Administrator Casey explained that taking out the Economic Development position and associated costs would, indeed, save $72,060. Another $10,000 would have to be cut from somewhere else.

Margaret New objected, noting that she would not like to see any reduction in the budget's capital improvements expenditures.

Eura Lewis quipped, "You can't have your cake and eat it, too," expressing her dismay that a potentially revenue-enhancing economic development position might be cut . . . but no other budget compromises made.

Mayor Dimos then suggested that "the four 'No' votes need to get their heads together" and come up with a compromise. He suggested that the council focus on spending "priorities" for the town and let the professional accounting staff figure out how to most effectively fund them.

Mark Snyder then formally moved that the Council approve the budget, but put off hiring the Economic Development Coordinator for six months, thus saving approximately $27,500. Helen Hyre seconded Snyder's motion but it failed on a 2-5 vote.

Darlene Kirk then moved to refer the position back to the Personnel and Finance Committee to be refined and brought back later.

Mayor Dimos suggested the entire budget remain on hold until the Personnel and Finance Committee could revise it at their June 21 meeting.

Finance Committee Chairman Davis said that she has no idea what her committee will do with the budget and, again, expressed her astonishment that three of the four votes against it came from her own Finance Committee members.

"I was extremely disappointed," said Davis. "I had thought that there was more cohesion within the Finance Committee to approve the position, at least for now, and come up with more creative ways to fund it in the future; possibly with grants."

Town Attorney Liz Whiting noted that a budget must be approved by 12:01 a.m. July 1 and the Mayor promised that Council would hold a special meeting to look at a revised budget prior to that date.

Mike Morency then called on the council to provide an update on its ongoing negotiations with Salamander Development LLC about whether or not its proposed Salamander Inn project should be connected to the town's water and sewer system, and under what terms.

Mayor Dimos replied that progress was being made, and promised a more detailed update "in the near future." Noting that council would move into closed session to discuss precisely those matters later in the evening, he observed that public discussion at this point might well "adversely affect the [town's] bargaining position."

Don Woodruff directed the council's attention to deteriorating road conditions that, in his view, VDOT seems disinclined to remedy, and reiterated his conviction that Middleburg Bank should be required to use permeable materials in their parking lot design. The Planning Commission reported that the Middleburg Bank Parking Lot special use permit decision had been postponed until July, at the bank's request.

Town Administrator Casey reported that the Well Head Advisory Committee is now fully formed and will hold its first meeting on June 28.

Town Planner, Marchant Schneider, also reported that the Courtyard of Middleburg project has been delayed due to permitting issues; that the Historic District Review Committee would begin reviewing Hunter's Hill Hamlet, a 15-home conservation subdivision just west of Middleburg; and that it would make a decision about Steeple Chase Run in July.

The council meeting, which had begun with no electricity and a budget proposal in hand, adjourned with lights blazing and its budget in limbo.