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BY FRANK DELANO
Westmoreland County could be facing its biggest tax increase in history.
According to County Administrator Norm Risavi, the real-estate tax rate could jump 40 percent next year as the county copes with "a perfect storm" of decreased state funding for education and rising costs of other government services.
According to state figures, county property values and incomes have risen dramatically in the past two years. As a result, the state will require the county to pay $1.7 million more in local funds for education next year.
Risavi and School Superintendent Elaine Fogliani presented preliminary budget numbers Tuesday night at a joint meeting of county supervisors and School Board members.
Fogliani said she also hopes the county will fund 5 percent salary increases and other programs that would add an additional $500,000 to next year's school budget. If approved, local funding for basic education next year could jump almost $2.2 million to about $7.6 million.
An increase of that amount would require adding 13 cents to the county's present real-estate tax rate of 44 cents per $100 of assessed value, Risavi said.
After the meeting, Risavi said it was also conceivable that the costs of other county agencies and operations could increase $1 million next year. The county's current budget is $19.1 million.
To meet an extra $1 million in county expenses, real-estate taxes would have to rise almost another 5 cents.
The present tax rate is the lowest in recent county history, Risavi said. If it jumps 18 cents, the increase would amount to 41 percent.
"The bottom line is, whether we like it or not, we've got to pay it," said Supervisor Larry Roberson.
County tax rates ranged between 61 and 66 cents between 1997 and 2006. In 1977, the rate was $2.20.
Other than real-estate taxes, the county has few options to increase revenues. Raising county license fees for vehicles to the maximum allowed by state law would yield less than $200,000 in new income, Risavi said.
The Board of Supervisors could also decline to spend about $900,000 in matching funds for school programs such as early reading intervention, reducing elementary class sizes, algebra readiness and school technology. But Fogliani and Risavi both said those programs are vital to maintaining student achievement.
School enrollment has dropped along with a decline in the county's population of school-age children.
"Not that long ago that we had school enrollments between 3,200 and 3,300. Next year, it looks like there will be about 1,700 students in the schools," Risavi said Tuesday night.
The drop in students and young people results in less state aid for education and less sales-tax revenues for the county, Risavi said.
He said many components of the county's budget for next year will not be known until after the General Assembly concludes its session March 8. By law, the county must adopt its school budget by May 1.
Anticipating stormy financial weather, Risavi said he has ordered county department heads to restrict travel, budget no salary increases for their employees next year and buy no new equipment without his approval.
He said three vacancies in the land-use department will not be filled because of a drop in permit applications. Maintenance of some county property will also be deferred, he said.
Frank Delano: 804/333-3834
Email: fpdelano@gmail.com
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Growth in real-estate values and adjusted gross income were major factors in the increase in Westmoreland County's share of its education costs under the state's funding formula.
REAL ESTATE
According to the Virginia Department of Taxation, true values of county real estate have risen $1.1 billion since 2006. The tax department arrived at its present $2.5 billion estimate by factoring current sales prices against assessed values. INCOMESince 2006, the income County Administrator Norm Risavi said some of the increases could be attributed to wealthy individuals who have retired to expensive new homes in the county. More county residents are also commuting to high paying jobs outside the county, he said. |
