York County Administrator James McReynolds is requesting a real estate tax increase that would push the rate to 76.45 cents in the 2014 budget proposal he presented to the York County Board of Supervisors on Tuesday.
McReynolds told the supervisors the 2.3 cent tax increase, or 76.45 cents per $100 of assessed value, was the lowest increase he could do without affecting county services. The supervisors raised the tax rate by 8.4 cents last year. Each cent that’s tacked onto the rate generates about $875,000.
He said the county has taken some hits since 2009, including the loss of $4 million in taxes from the closure of the Yorktown Refinery, a 10 percent uptick in inflation, $1.5 million of additional spending from unfunded mandates, and a series of budgets that saw school and public safety funding increase while funding for all other operations decreased by 15.9 percent.
The proposed $131.2 million budget is up $4 million from the $127.2 million budget from the fiscal year that ends June 30, 2013. Of that additional $4 million, $2.3 million would go toward education, $400,000 toward increased health insurance costs and $725,000 for a 2 percent raise for county employees. The rest of the additional spending is spread out across other areas, such as the county’s contribution to a new animal shelter to offset the loss of privileges at the Newport News SPCA.
The extra $2.3 million that would go toward education would put the county’s total contribution at $51.17 million. The county budgeted $48.86 million in 2013, up from $44.9 million in 2011-12.
The $51.17 million figure does not include $600,000 that Superintendent Eric Williams asked to be applied to employee taxes on mandatory contributions to the Virginia Retirement System. McReynolds said he did not include that because the county elected not to contribute that money to county employees.
When Williams presented his proposed budget, he asked for an additional $2.9 million in funding from the county over last year’s county transfer.
The supervisors at their January retreat asked McReynolds to prepare a second budget that featured no tax increases. At the meeting, he showed them that budget, which features $2 million in cuts. The 2 percent salary increase to county employees would be preserved, however.
In that budget, the following programs were cut:
- $1.075 million from Education and Education Services
- $110,000 each from the York-Poquoson Sheriff’s Department and Fire and Life Safety
- $200,000 from Environment and Development
- $55,000 from the library system
- $85,000 from Tourism and Events
- $90,000 from other offices, such as the Commonwealth’s Attorney and Commissioner of the Revenue
McReynolds described those cuts as having a direct impact on service, with Parks and Recreation and the Office of Economic Development taking hits. The libraries would also likely close for two days per week. He did not specify any further impact of these cuts, though jobs would be lost, he said.
During the meeting, McReynolds also emphasized that any problems with bonds issued to finance the Marquis at Williamsburg will not come back to haunt the county. If taxes generated by the development are not sufficient to make bond payments, the county is not on the line to make up the difference from money taxed from county residents. He added that the development pays the county about $150,000 per year to provide services.
McReynolds also discussed Riverwalk Landing, saying all of the rent and docking fees continue to pay the operating costs of that development. The bonds issued to pay for the construction of the development, he said, are being repaid from a portion of the lodging tax that under state code must be used for tourism. No tax dollars are being used to support Riverwalk Landing.
One resident spoke during the citizens comment period of the supervisors meeting. James Chapman said his costs are increasing, and he does not believe a tax increase is the right choice for the county. He suggested county officials find another way to generate the money rather than raising the real estate tax.
The supervisors will now host a series of work sessions throughout the rest of March and April to hammer out a budget, with an adoption scheduled for May 7. Included in this process is an April 25 public hearing where county citizens can discuss their thoughts on the budget. That meeting starts at 7 p.m. at York Hall. Citizens can also call 890-3220 to submit comments or make comments online to the supervisors by clicking here.
