City Advertises 9-Cent Tax Rate

City Council voted 4 - 3 to advertise the city's real estate tax rate for FY2014 at 9 cents above the current rate.

The current rate is 74 cents per $100 valuation. The advertised rate will be 83 cents, City Manager Bev Cameron said.

Council members Brad Ellis, Fred Howe, Matt Kelly and Bea Paolucci voted for the 9-cent rate. Mayor Mary Katherine Greenlaw and councilors Kerry Devine and George Solley voted for a 5 cent rate, Cameron said.

Both rates are higher than the 3 cent rate in the City Manager's proposed FY2014 budget, presented to city council on March 12.

Council Member Fred Howe suggested during Tuesday's City Council meeting raising the tax rate by 7 cents in FY2014 to cover the cost of debt payment and operations and maintenance for the new courthouse. 

Thursday night council members Fred Howe and Bea Paolucci proposed additional one cent hikes.

A one-cent increase would off-set a revenue decrease resulting from a change in the Business and Professional Occupancy License Tax (BPOL), Paolucci said.

"In the recommended budget, under tab 10, there are several decision packages for discussion and review," Paolucci told Patch.  Package #1 has a formula to reduce the BPOL tax.  I do not necessarily agree with the proposal as stated, but I do believe it is a starting point to discuss the reduction of BPOL," she said.

Another one-cent increase would pay for a Safety, Sidewalks and Lighting Fund (SSL), proposed by Howe.

"I've been working for three years on SSL to bridge the gap between large capital funded projects, which are many, and the smaller financial needs of our old subdivisions within the city," Howe told Patch.  "The older subdivisions have not had the benefit of the new developments' enclosed storm sewers, sidewalks and lights, which support a safer environment for our citizens, Howe said.

City Council had a Thursday deadline for deciding the tax rate, so that it could be advertised allowing the appropriate time required by law for public comment.  Once a tax rate is advertised, it can be lowered but not raised, Cameron said.

What This Means in Actual Dollars

According to Cameron, a typical home owner would see an increase of the following amounts a year, assuming a home value of about $256,000:

• Current rate ($0.74) = $1,895.88 real estate tax

• +9 cents ($0.83) = $2,126.46 real estate tax

• +3 cents ($0.77) = $1,972.74 real estate tax

Public Input

City Council is reviewing the recommended FY2014 budget in six work sessions, with three remaining in April.  Work sessions begin at 5:30 p.m. in the small conference room in City Hall and are open to the public. 

• April 9 - The discussion will focus on schools and the general fund.
• April 16 - The discussion will focus on other funds.
• April 23 - This will be a wrap-up work session. 

The public hearing on the budget, tax rates and user fee increases is scheduled for the April 16 City Council meeting.  Persons who wish to speak at the public hearing must register in advance by calling the Clerk of Council at 540-372-1010. 

Those wishing to speak on other matters during the regular Comments from the Public section of the City Council meeting should refer to the guidelines listed online.

The first reading of the budget resolution will be at the April 23 City Council meeting. The second reading and final adoption will be at the May 14 City Council meeting.  City Council meetings begin at 7:30 p.m. in City Council Chambers at City Hall.

The complete FY2014 City of Fredericksburg City Manager's recommended budget can be viewed online.

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Related Stories:

(March 13, 2013)

2014 Fredericksburg City Budget on Council Agenda (March 12, 2013)