Although the Spotsylvania County Board of Supervisors last night chipped away 7 cents from the proposed increase in the personal property tax rate, a majority of residents will see an increase of at least $10 in their bills this year.
The Spotsylvania County Supervisors increased the tax rate from $5 to $6.26 per $100 of assessed value. That is 7 cents less than what Interim County Administrator Doug Barnes proposed in his budget that called for an equalized tax rate. Car values dropped by 21 percent, and Barnes said he needed to equalize the personal property tax rate for the first time since 1993 to keep revenues the same.
The debate before the tax rate passed showed just how divided supervisors are when it comes to raising taxes.
Supervisors Jerry Logan and Gary Jackson fought the tax increase proposal. Jackson criticized the school system's early-retirement program that will cost almost $1 million this year, although school administrators said it will save millions more in the next four years. Jackson said the program benefits only school employees and not all government employees.
"I find it unprecedented, and I find it not fair," Jackson said.
Logan said the property tax increase could slow car sales even more.
"It is just another obstacle we are putting in the way of the economy coming back, and we desperately need the economy to come back," Logan said.
Jackson and Logan also voted against the fiscal year 2010 budget.
Logan also said that Spotsylvania ranks at the top in per capita education spending compared with 10 similar counties, and almost last in per capita spending on other government services, something he said is shown in a recent study that was included in the board's informational packet. He said the study is proof that county supervisors fund the school system well.
"But, unfortunately I believe we have done that at a price and I think the price we have paid is in general government," Logan said. "I think general government has really taken a hit over the years by holding back on funds and throwing them over the fence to the school board and let problems in general government go."
Logan's comments sent Supervisor Gary Skinner into a long speech about the importance of funding the school system. The two politely argued back and forth for a few minutes.
"Is it more important to take care of the car dealers or my children's education? I am going to go with education," Skinner said.
Although neither Jackson nor Logan proposed a lower personal property tax rate, they voted with Supervisor T.C. Waddy against the $6.27 rate. Waddy failed to pass a motion that would lower the rate to $6.25, with the school system taking 100 percent of the cut.
The school system will share two-thirds of the 7-cent reduction, which equates to about $465,000. The other third, about $229,000, will come from the county's general revenue fund or reserves.
Supervisors also agreed to keep the real estate tax rate at 62 cents per $100 of assessed values, but they plan to equalize the rate next year when reassessments are completed. Supervisors anticipate a 20 percent drop in home values, which means an equalized rate will keep the revenue stream from real estate taxes the same.
"Next year is going to be the problem," Logan said. "I think this year is going to be child's play compared with what we are going to be dealing with next year."
Dan Telvock: 540/374-5438
Email: dtelvock@freelancestar.com
| Total operating budget: $217 million Schools get: about $113.8 million. Supervisors also agreed to decide later on if they will withhold any school appropriations, as much as $5.2 million, in case revenues continue to drop. Personal property tax rate increase: from $5 to $6.26 per $100 of assessed value. Four percent of residents will see an increase above $50; 26 percent will see an increase of $10.01 to $50; 38 percent will see an increase of $0 to $10; 32 percent will see a decrease. Social Service Agencies: Supervisors agreed to sell two pieces of property. If the property sells, they will restore some funding to social services agencies, whose budgets were cut 10 percent. The library funding took the biggest hit, at $390,000. Library administrators wrote supervisors last week informing them that their state aid could drop if the county reduces its funding level. Supervisors voted 6-1 to use $150,000 in one-time bond interest for the Salem Church Library addition budget to help make up some of that cut. Barnes said the library ensured the money would be used to buy books for the expanded Salem Church Library, and that they'd show receipts of the purchases. Jackson voted against the measure. |