Spotsylvania County residents could see the real estate tax rate increase by as much as 15 cents in five years if the economy doesn't improve. That would boost the average real estate tax bill by more than 24 percent.
And that's just to balance the budget.
Budget officers said during last night's Board of Supervisors meeting that revenue projections continue to fall short in the sluggish economy. They recommended that supervisors make all general government departments and the school system reduce current spending by 1 percent to make up a $1.1 million shortfall in the fund balance.
The fund balance is an emergency reserve that is 10 percent of the county's net operating revenue. That amount is recommended by bond agencies to help the county achieve the triple-A bond rating that allows for lower-interest borrowing.
A 1 percent reduction amounts to $1.19 million for the school system and $477,912 for county departments, leaving a $600,026 cushion. Budget officers said they do not expect the economy to improve until late 2010.
"This is about as bad as it gets," said Supervisor Jerry Logan.
Supervisor Emmitt Marshall said the Code Compliance Department is the only one that had layoffs. Deputy County Administrator Ernie Pennington said two employees resigned, one transferred and five were laid off in Code Compliance.
"What happened to the people in Planning? Are they going to take a hit?" Marshall asked. "We sure have to be fair about this."
Logan said because real estate assessments increased this year, the adopted tax rate of 62 cents is a 6-cent tax increase. He asked county budget officers and County Administrator Randy Wheeler to craft the fiscal year 2010 budget without a tax increase.
"I would be very reluctant to increase the real estate tax rate again. If there is any possible way of avoiding that, I would like to see some scenarios to reflect that," Logan said.
Supervisors agreed to enact the 1 percent reductions. If the school system cannot reduce its spending by 1 percent, budget officers said all county departments would need to reduce their spending by 3.5 percent.
Dan Telvock: 540/374-5438
Email: dtelvock@freelancestar.com
| The Numbers
Spotsylvania County's five-year budget projections indicate tax increases would be required every year to balance the budget if economic conditions do not improve. The current tax rate is 62 cents per $100 of assessed value. Projections include: A 6.7-cent increase in fiscal year 2010. A 3.4-cent increase in fiscal year 2011. A 2.4-cent increase in fiscal year 2012. A 2.5-cent increase in fiscal year 2013. A 0.2-cent increase in fiscal year 2014. |