Depending on how the state budget turns out, Spotsylvania County residents can expect a real estate tax rate in the range of 83 cents to 88 cents.
Supervisors decided last night by a
Every penny added to the real estate tax rate generates $1.2 million.
County Administrator Doug Barnes asked supervisors to advertise the higher rate--two pennies more than what is in his proposed budget--because the county may see cuts of almost $3 million more from the state.
Supervisors Hap Connors, Emmitt Marshall, Gary Skinner and Benjamin Pitts voted in favor and Supervisors Jerry Logan and T.C. Waddy voted against it. Supervisor Gary Jackson was absent.
Connors advocated to advertise the 88-cent rate because there is too much uncertainty with the state budget.
Logan wanted to advertise an equalized rate of 83 cents, which means the county would generate the same amount of revenue as it did this fiscal year. He said approving a higher rate may not have a huge impact on residents because their assessments either dropped or remained the same, but it will hurt local businesses.
Commercial property assessments had a slight increase of less than 1 percent. Overall, property assessments dropped 23.45 percent.
Supervisors told School Board members earlier during a joint work session that they are committed to giving them level funding of $113.8 million. But if the state does impose more cuts on localities, Logan said residents cannot blame the local government for having to make those cuts.
"If this board thinks that we can replace every dollar that Richmond cuts out of our budget this year, we are sadly mistaken," he said.
If supervisors were to approve an equalized tax rate of 83 cents, they would need to cut $3.5 million from the proposed budget. Those cuts likely would have to come from either the schools or public safety, supervisors said.
If the tax rate stayed at 62 cents, supervisors would have to cut $28 million from the proposed budget, with $17 million of that coming from the school budget. About 175 county government jobs would be cut. That scenario was one that a majority of supervisors did not want.
Once the 88-cent rate is advertised, supervisors can still lower the levy. If they wanted to raise the tax rate, the entire process would have to start over, and they would be required to have another public hearing.
Skinner equated the proposed tax increase to two packs of cigarettes a month.
"This is a safeguard to what Richmond might do to us," Skinner said about the 88-cent advertised rate.
Waddy said he prefers an 83-cent rate because anything above that could close the doors of more local businesses.
Marshall in the past two budget cycles was against advertising a higher tax rate, but this time changed his mind.
"I can support advertising [the 88-cent rate], but I believe we can do better than that," he said.
Waddy agreed with Logan that if the rate is set too high, more businesses will close.
"I rather see it at 83 than at 88," he said.
Dan Telvock: 540/374-5438
Email: dtelvock@freelancestar.com