Lynchburg City Fails Fiscal Stress Test
Lynchburg, VA - The Lynchburg City Manager is updating City Council Tuesday Night on an important and disappointing ranking for the Hill City.
The "Fiscal Stress Index" is similar to a stress test you would get from a doctor, but this one is for the City of Lynchburg.
Lynchburg's results aren't that stellar, unfortunately.
The fiscal stress index ranks every locality in Virginia.
On the ranking, it's not good for a locality to be number one. Lynchburg isn't, but is fourth.
City Manager Kimball Payne explained the results Tuesday.
First, keep in mind that Virginia cities like Lynchburg are more fiscally stressed than the counties.
Payne says in cities there's a higher concentration of poverty, more of a demand for services and a high amount of tax exempt property such as hospitals, churches, and non-profits.
Payne says the truth is local governments like Lynchburg can really do just one thing to improve this score.
"They can raise and lower taxes. And so, if you want to improve our revenue effort score, make it higher, then one way to do that would be to lower taxes," Payne said.
That may be easier said than done, however, as lower taxes mean fewer services offered.
The update is purely informational.
Council is not expected to take any action on the findings Tuesday night.