The trouble with taxes

Things funded by local taxes pictured  below

(Recent anonymous feedback contended that only comments that "agree with my (GOMM's) narrative" are published. Comments that address the topic of the post without profanity or personal attacks will be published.)

No one likes to pay taxes. We all want the other guy to foot the bill. Trouble is, the government services we want and need, especially at the local level, are not funded with fairy dust.

Goochland County mailed real estate and personal property tax bills a few weeks ago, causing outrage on social media and undoubtedly at supervisors via phone and email. Do these citizens ever complain to their state or federal elected representatives about taxes?

On May 17, the supervisors passed an emergency ordinance delaying imposition of late fees and interest penalties until August 1 to give people more time to pay their tax bills. Some want the rate reduced to balance out the increased valuations, others worry that the supervisors will squander what they characterize as a "windfall".

Goochland vehicle values are computed using tables mandated by state government. Thanks to "supply chain shortages" the number of available used vehicles is far less than the demand, which increases prices, pretty basic economics. That does not lessen the pain of higher personal property taxes levied on vehicle values that have risen, rather than decreased due to depreciation, as was the norm in former times. Runaway inflation on everything else makes the situation more painful.

So far, there have been few complaints about real estate tax bills, which, although the rate remains unchanged at 53 cents per $100 of valuation, have also risen this year due to higher assessments. Maybe that's because many people's real estate taxes are escrowed—part of mortgage payments—so they haven’t seen that increase, yet.

If we had to write checks for each tax we pay, especially federal and state, maybe there would be more protest. Withholding—created by an evil genius—is a version of cooking the frog. You never see the money "withheld" for tax in your paycheck, so it doesn't seem real; it's hard to miss something you never had. This lets the government use your money interest-free if you are due a refund.

Back to personal property taxes. Henrico is being used as an exemplar for its rhetoric about personal property tax adjustments and possible rebates. Henrico has many more revenue streams than Goochland. For instance, it collects meals taxes from restaurants and sales taxes from retail businesses. Just think how many of those are located in Henrico west of Parham Road.

Goochland has one hotel and a few restaurants. We do not have a meals tax. How many Goochlanders shop and dine in Henrico, leaving their sales tax dollars there? It seems unlikely that the reverse is widely true.

The population of Henrico County is, according to the 2020 census, more than 330,000.  Goochland's population is just under 25,000. The nine or so square miles considered to be Short Pump, which is part of Henrico, has approximately 27,000 residents. The “pain” in Henrico can be spread more widely there.

Goochlanders want to remain rural. The less economic development in a jurisdiction, the greater burden on real estate and personal property taxpayers.

Local tax dollars stay here. They pay the salaries of our teachers, deputies, fire-rescue providers, and others who work for us. Federal and state tax dollars go to big pots in Washington and Richmond where they are redistributed according to purposely vague formulas. Goochland gets the short end of the stick in these schemes because we are considered a wealthy community due to income statistics. In 2021, Goochland’s median income—half are higher, half lower—was $93,994. Of this, 17 per cent earn more than $200k, 14 percent less than $25k. (see https://www.goochlandva.us/ArchiveCenter/ViewFile/Item/2009 page 16 for details.)

Real estate assessments are another sore spot. This year assessed valuations of many properties exceeded those in 2009, the high-water mark before the great recession crushed home prices. The tax rate for all of those years was 53 cents per $100 of assessed valuation, the same as today. (Go to the county website https://www.goochlandva.us/ lick on parcel viewer and review the valuation of your property over the years under previous assessments.)

Local tax dollars stay close to home. The county budget process is very transparent, but few people pay attention until the bill comes.

  

 

 

No easy answers

 On Thursday, May 19, the Goochland Board of Supervisors held a special called meeting to address payment of local taxes. The board passed 4-0—Don Sharpe, District 4 was not present—an emergency ordinance delaying the imposition of penalty and interest for any tax payments made by August 1. The board also scheduled a public hearing on the ordinance for its July 5 meeting.

This action will give citizens more time to pay their taxes without penalty while the board and staff looks for other possible relief for taxpayers.

One person spoke at the meeting declaring that the personal property tax bills were unbelievable. The speaker contended that the county should reduce the rate because the higher tax bills hurt everyone and surrounding counties have already done so.

Board Chair Neil Spoonhower, District 2 said that during his 868 days in office several unexpected things have occurred, from pandemics to brutal winter storms, to county administrators coming and going. He likes taking the phone calls—and the supervisors undoubtedly got many phone calls about tax bills—because they provide an opportunity for deeper discussions with citizens than TV sound bites. Those interactions enable him to share how the supervisors wrestle with decisions to make them fiscally responsible. "I haven't seen a decision that has been made lightheartedly or without a lot of thought," said Spoonhower.

Another county, said Spoonhower, bragged about eliminating their $35 dollar vehicle "sticker" tax. "Goochland got rid of that several years ago. We do have the lowest real estate tax around (53 cents per $100 of assessed valuation) and we've held that for a long time. We've been responsible with everything we do. We understand that this impacts everyone and try to look forward."

Spoonhower pointed out that Goochland County is not immune from inflation. Its costs for everything from fuel prices to the cost of a new school are rising too. He contended that inflation is a multi-year challenge. "Please just know that the decisions we are making are after a lot of thought. We're doing the best we can to make good decisions for today and the future. We're imploring the Lord for wisdom in these matters."

Interim County Administrator Manuel Alvarez, Jr. said that when the initial proposed budget was presented in February, they knew that car prices were up and proposed a ten cent personal property tax rate reduction. By April when the final FY 23 budget was approved, it was based on a twenty cent rate reduction to $3.75 per $100 of valuation because used car prices were even higher.

"This is not a one time tax rate reduction like other counties are making. We know it's not enough. We don't set used car prices. Our Commissioner of Revenue is required by state law to assess vehicles at fair market value using a recognized pricing guide—the J. D. Powers Official Use Car Guide eastern edition."

Alvarez said that the county has a high mileage program, which could reduce the value of a vehicle depending on mileage. The filing deadline for that program was March 31. However, the Commissioner of the Revenue has agreed to extend the program for anyone who comes to her office with high mileage vehicles and will work to provide a discounted valuation. The Goochland rate reduction applies to cars, trucks, boats, RVs, everything, while Henrico's reduction applies only to personal vehicles.

The county absorbed other vehicle tax costs by "eating" the difference between Goochland's share of  money allocated by the Commonwealth for "car tax relief"  and the actual cost. Alvarez said that the board has been meeting over the past few weeks to figure out what surplus might be available for further reductions. Many variables in the system must be considered.

Spoonhower said that Goochland is constrained by what the state allows counties to do. He has been in touch with 65^th  District Del. Lee Ware on this matter. The main concern of many people that have contacted Spoonhower is not the size of the tax bill, but that the supervisors may be "going into the back room and dancing a jig over the size of the tax windfall."

"We are not looking at this as a windfall," said Spoonhower. "When you realize it's taking money out of people's pockets, it's an entirely different perspective. This is not our money. We will be good stewards of tax dollars."

Ken Peterson, District 5, said that increase in used car values is a result of a shortage of new cars, and hopes that values will decrease as supply chains normalize. "We're seeing a once in 40 year out-of-control inflation that has implications on how we raise funds to meet county expenses. Inflation is a horrible thing, especially for those living on the margins."

Spoonhower encouraged those who are having trouble paying their taxes to work with the treasurer to set up payment plans.

County Attorney Tara McGee explained that the emergency ordinance needed to be passed before the June 6 due date for first half taxes, which is the day before the next regular board meeting. The public hearing cannot be held before the July 5 meeting to due to advertising requirements.

 

 

 

 

 

Be heard

 

Most people pay no attention to land use changes until they see a bulldozer on the lot next door, by which time it's too late. Lots of people rant and rave about rezonings on social media but fail to make their objections known to the supervisors who make the final decision.

Growth and economic development are touchy subjects. As a small, rural county, Goochland derives most of its revenues from real estate and personal property taxes.

The county's comprehensive land use plan, (https://www.goochlandva.us/250/2035- Comprehensive-Plan) which is updated every five years, is used as a blue print for growth and development. It designates areas for commercial and residential growth. Touted as a "reflection of the will of the citizens" the comp plan, in reality, reflects input from a relative handful of the county's approximately 25,000 citizens.

Several upcoming meetings provide opportunities for residents to weigh in on governmental actions, including potential tax relief; parts of the comp plan that are being tweaked to deal with growth pressures; and a community meeting on a rezoning application on Ashland Road.

On Wednesday, May 18, the final community meeting on Multimodal planning for pedestrian, and bicycle plans and transit demand analysis for the Centerville Village meeting will be held from 6-7:30 p.m. in the board room of the county administration building at 1800 Sandy Hook Road. The session will be conducted by a state funded consultant.

The purpose of the meeting is to gather input on the location and design of bicycle and pedestrian networks in the Centerville Village and to determine the demand for transit (read bus service) in the Centerville Village.

For details, including how to participate by Zoom, go to https://www.goochlandva.us/CivicAlerts.aspx?AID=830

 

Tax relief

The Goochland Board of Supervisors will hold a special called meeting on Thursday, May 18 at 1 p.m. to consider relief options for local taxes. The meeting will be livestreamed.

 

Community meeting for rezoning application on Ashland Road

A meeting to discuss a potential rezoning application concerning 105 acres at 1990 Ashland Road to change the use from agricultural to M-2 industrial general and a companion conditional use application to allow a structure up to 98 feet high, will be held at St. Matthew's Church on May 24 from 6-8:30 p.m. If approved, a distribution and fulfillment center will be built. Note: this meeting is run by the applicant, not the community, to share information and gather feedback from the community. It is the first step in the county's rezoning process.

 

Courthouse Village Small Area Plan

On June 8 at 7 p.m. in the board meeting room an update on the Courthouse Village small area plan will be held. It will include "A concise presentation of findings and initial concepts for each village which will provide live interactive polling of attendees." The meeting will be livestreamed on the county website and archived for viewing at a later date for those unable to attend in person.

If you have not already done so, please take the survey at: www.goochlandva.us/VillagePlans2022.

Send questions or comments to: courthouseplan22@goochlandva.us

Centerville Village small area plan

An update on this plan will be held on June 9 at 7 p.m. at Grace Chinese Church, 850 Broad Street Road, Manakin Sabot (a few miles west of Centerville). At this time "A concise presentation of findings and initial concepts for each village which will provide live interactive polling of attendees. Following the presentation, the attendees can visit topic-tables to share comments and pose questions related to the plan."

The meeting will be recorded and archived for those unable to attend.

If you have not already done so, please complete the survey for this plan at:  www.goochlandva.us/VillagePlans2022.

Send questions or comments to: centervilleplan22@goochlandva.us.

 

Are we there yet?

 

If you need internet and see a truck like this in your area, celebrate!

Broadband access is a 21^st century necessity. If anything, good came out of the Covid pandemic, it was a final push for universal coverage.

Goochland has been looking for ways to connect everyone in the county for at least a decade. Widely separated homes and even dreadful cell phone coverage make connecting every home an expensive proposition.

In the last year or so, 13 electric utility providers in the central Virginia region banded together to form the regional internet service expansion project (RISE) under the umbrella of Firefly Fiber Broadband. The goal is to make reliable and affordable gigabit speed internet available to those unable to otherwise connect to the information superhighway.

Funding for the project includes grant money from various sources and Goochland County. Connection cannot come soon enough for residents on the wrong side of the digital divide.

At the May 3 Board of Supervisors meeting, Gary Wood, CEO of Firefly gave a progress report. (Go to  https://www.goochlandva.us/DocumentCenter/View/8711/Firefly-Fiber-Broadband---RISE-Project-Update---May-3-2022 for details)

Given the different installation challenges in the area Firefly serves and the different working methods with each electric provider, Wood likened the process to making a patchwork quilt. He reported that the Cartersville substation is complete and most of the people who wanted service in that area have been connected.

In the Shannon Hill area, Wood said that the fiber and most of the splicing is complete. Currently, 50 people are online. There are approximately 448 people registered who would be serviced by the Shannon Hill substation. Wood expects that they will start to be connected in "the next couple of weeks." The "take" rate for Shannon Hill, said Wood, is about 70 percent. "When we started this project, we expected that the take rate would be around 35 percent. That was before Covid."

So far, Firefly has installed 91 miles of fiber in Goochland.

That's the good news. The RISE project will bring broadband to parts of the county not served by Central Virginia Electric Coop (CVEC) that are funded by different sources, hence the patchwork reference. Areas outside that territory have experienced delays, including the need to ensure that fiber easements do not infringe on historic resources or disrupt any archaeological sites. He expects approval from the Virginia Department of Historic Resources in the next few weeks. This will turn crews loose to get started on more fiber installation.

Wood then outlined the connection process. After gathering data used to design fiber installation potential users will be contacted by letter. Because contractors are in the woods and fields Firefly contacts residents beforehand, so they know what's going on.

"It takes about six months from when we first show up and do a field investigation before you get connected."

Wood reiterated that Firefly has the same pricing for its users regardless of which electric utility they use. The rate is $49.99 for a hundred-megabit service, phone an additional $30. There use no introductory rates or data caps.

Please look at fireflyva.com and register if you have not done so.

 

 

 

 

 

Enriching our community

 

At its May 3 meeting, the Goochland Board of Supervisors recognized the contribution of two citizens whose dedication to service has enriched our community.

The Board presented Diane Lloyd with a resolution of recognition for her 26 years of service as she retires from the Goochland Branch of the Pamunkey Library System. During her tenure Diane held many positions and participated in the move to the "new" library on a frigid day in January 2003.

Library branch manager Janet Melton (l) and Friends of the Library Board member Linda Wesitroffer (r) congratulation Diane Lloyd.

Our library is the quiet keystone of the community. Fulfilling the duties of several positions at the Goochland Branch, Diane helped patrons navigate the wide array of library services; helped facilitate community events; worked with book discussion groups; and helped others access materials for their enjoyment and to further lifelong learning. Diane also supervised circulation at the Goochland Branch Library for many years. Her pleasant demeanor and cheerful service made patrons feel welcome. We wish Diane a long and happy retirement.

Following an induction into the Goochland Parks and Recreation Wall of Fame, Keisha Carroll was recognized by the supervisors for her humanitarian commitment to the citizens of Goochland.

Jessica Kronberg, Director of Parks and Rec(l) and Board of Supervisors Chair Neil Spoonhower (r) congratulate Keisha Carroll on her induction into the Wall of Fame

Her good works include service on the Senior Connections Advisory Committee; Goochland High School PTSA president; the Central High School Restoration Committee; the 4H-ELC committee; the Board of Directors for GoochlandCares; and 18 years as Youth Advisor in her church.

Goochland is truly blessed to have citizens like Keisha Carroll who provide exemplary service to improve our community.

 

 

We have a new county administrator

 

Victor J. "Vic" Carpenter
New Goochland County Administrator

After months of searching, at its May 3 meeting, the Goochland Board of Supervisors unanimously authorized board chair Neil Spoonhower, District 2, to execute an employment contract with Victor J. "Vic" Carpenter as the next Goochland County Administrator. He will begin his duties on June 20,2022.

"There was tremendous interest in the Goochland position," said Spoonhower. "We wanted to make sure we are bringing the best possible candidate (to the county administrator position). The list of finalists was tremendous, we had one from Texas, one from not too far here in Virginia, and one from South Carolina. I think all three would have done a wonderful job. Vic Carpenter has done amazing things where he was and is beloved by all the citizens there."

A GOMM reader shared the following unsolicited comments from a friend in South Carolina  "Vic Carpenter is a friend, visionary, and excellent administrator. Y’all have chosen wisely."   This gentleman then expressed extreme dismay in "that y’all have lured him away from Camden.  His wife Laurie is a powerhouse in her own way doing local community and charitable projects, and thinking big."

 Carpenter was wrapping up the budget season in his current position, County Administrator of Kershaw County, South Carolina. Honoring his commitment to that jurisdiction, he was unable to attend the May meeting in person.

Spoonhower thanked the Hon. Manuel Alvarez, Jr., former District 2 Supervisor, for serving as interim county administrator. "We have been blessed with some great leadership here since last August. Manny came into a difficult situation and was exactly what we needed, right when we needed it."

Alvarez played key parts in last November's successful bond referendum and on the electoral redistricting committee. He worked closely with county and school staff to craft and complete the budget for FY2023.

Carpenter, a former professional Boy Scout, and county administrator of Kershaw County, for more than a decade, was not in the market for a new job when he was approached by recruiter about the Goochland position. "Things were going well. We'd accomplished a lot, but I was ready for a new challenge," he said. "Goochland found me."

Carpenter, who has more than 25 years of government experience, first learned about Goochland from former GCPS superintendent of schools Frank Morgan, whose service in the same capacity in Kershaw County overlapped with Carpenter's tenure there.

"Frank had fond memories of Goochland, and shared the way they did things there," Carpenter recalled.

Morgan, who has returned home to central Virginia, said that there are a lot of similarities between Goochland and Kershaw Counties—rural, with a toe in more developed areas. It is larger both in geographic area and population than Goochland.

"Vic became Kershaw County administrator in the depths of the great recession," Morgan recalled. "He helped the county work through some significant challenges.

Carpenter, said Morgan, brought education economic development, and the community at large together to create KershawVision2030, (http://visionkershaw2030.org/). Having a broad background, said Morgan, helped Carpenter find innovative ways to solve problems, and collaborate with a wide range of constituencies for the betterment of all.

Working with a Luck Stone plant in Kershaw County gave Carpenter another connection to Goochland.

Carpenter got his start in local government when a county administrator he knew through his work with the scouts hired him as a solid waste manager. "No one grows up wanting to be a garbage man, but he thought I had the makings of a good manager and one thing led to another."

He has been actively involved in his community through Rotary International, Kiwanis, and the Boys and Girls Club. He led Kershaw County to receive the American All Cities award and has a history of careful fiscal management that aligns well with Goochland's fiscal philosophy. "Vic really knows how to stretch a buck," said Morgan.

Carpenter is eager to meet all members of county staff. "I want to get to know them and especially want to learn what accomplishments they are proudest of and what's important to them."

He is excited to meet Goochlanders and learn how our community works. Carpenter is looking forward to working on the small area plans for the Courthouse and Centerville villages.

Carpenter has overseen construction and renovation of public buildings, insight and experience that will be valuable as we build a new elementary school, fire-rescue station, and a courthouse to replace the one that has been in continuous use for nearly 200 years.

He will be house hunting in the county in the next few weeks and ready to start work in June. Welcome Vic Carpenter may your time in Goochland be long and happy.

Money matters

 

Ken Peterson, who represents District 5 on the Goochland Board of Supervisors and chairs of the county's finance committee, declared the county in good financial shape at that body's May 3 meeting.

He also thanked all involved in the issuance of general obligation bonds in early February to for their hard work. "By issuing those bonds before interest rates started to go up, we saved the taxpayers of Goochland about $10 million dollars in debt service over the life of the bonds," said Peterson.

Since being elected to office a decade ago, Peterson has been actively involved in changing the finance culture of the county from one that could be charitably labeled dysfunctional to an exemplar, earning three AAA bond ratings, the smallest county in America to do so.

Deputy County Administrator for Administrative Services Barbara Horlacher presented the projections for the third quarter of FY22, which indicate a nearly $7 million surplus over budget, with fund balance relatively flat at $41 million.

 She also asked the committee to approve funding extra services from the county's outside auditors, PBMares, to deal with an increased workload that is the result of "empty seats" on the county's finance staff.  These would be tasks that would not violate GASB conflict of interest regulations. The cost would be approximately $165 per hour. The position of Director of Financial Services has been vacant for a few months. Interim County Administrator Manuel Alvarez, Jr. said that he expects that position to be filled soon.

The second five-year contract with PBMares expires at the end of 2022. Horlacher said that an RFP will be used to find new auditors.

Things are good in Goochland's financial house, but the challenge now, contended Peterson, is to sustain this in the long term. He discussed the concept of depreciation, which, for governments, is maintenance of fixed assets, which liquidate over time. Peterson contended that setting funds aside to replace items like sheriff's vehicles, computers, and HVAC systems, which wear out and must be replaced to continue to provide the level of service that citizens expect. This, he said, is the annual component of the capital improvement plan, and wondered if it should be part of the annual budget. In recent years, Goochland has used budget surplus money for this purpose.

Peterson suggested that the county's financial polices (https://www.goochlandva.us/DocumentCenter/View/4422/Goochland-Financial-Management-Policies-Effective-May-1-2018) be amended to include methods for sustainable funding of this "depreciation" with annual budget surpluses. Don Sharpe, District 4, Board of Supervisors' Vice Chair, said he would prefer inclusion of a recommendation. "A new board can change anything it wants." He suggested spelling out the current practice in detail as a road map for future boards.

Alvarez said that the current budget process includes an estimate of the surplus for projects to be included in the CIP. The way it works now is if there is not enough money in reserves at the end of the year to fund planned projects, they are deferred, or other funding sources are sought. The 25-year CIP provides a good basis for this to work.

"The financial condition of the county is only as good as its leadership," said Peterson. "It falls on the shoulders of the citizens to elect fiscally responsible people to run the show. That's the only reason it's been working."

Sharpe said that future challenges could make that difficult. A significant fall off in real estate valuations, the main source of county revenue, for instance, could change everything.  This happened after 2009, when valuations plummeted.

During public comment, Jonathan Lyle suggested a management by objective policy in place contending that thought mist be given before a policy deviation can happen.

No decisions on fiscal policy were made, the committee could revisit the issue at its August meeting. (To listen to the complete discussion, go to the county website https://www.goochlandva.us/ click on listen to county meetings and select May 3 finance committee.)

 

 

Goochland day returns

Next Saturday, May 7, 2022, Goochland Day will return, rain or shine. The iconic local festival will be held on the traditional day before Mother's Day, complete with a parade. The event is free.

Efforts to revive Goochland Day were, like the rest of the world, pooped on by the black swan on Covid. A successful beta test of sorts took place last fall. Now, thanks to the efforts of a group of intrepid volunteers who formed the Goochland Day Foundation, a full-blown event will return to Courthouse Village.

The day kicks off with a parade that begins at 10 a.m. River Road West will be closed to traffic between Maidens and Dickinson Roads before then, so be sure TO ARRIVE EARLY to park and find a good viewing spot. The parade begins in front of Six Pence, a shop on the west side of River Road West—it runs north-south through Courthouse Village—roughly opposite the courthouse green. The Goochland Sheriff's Office honor guard will present the colors followed by 64 units, including the high school band, cars, fire-rescue apparatus, clowns, and horses. (Go to https://www.goochlandday.com/ for complete details.)

When the parade ends at Reynolds Community College around 11 a.m., the festival fun starts. All events are located in the vicinity of the sports complex and farmers market on Sandy Hook Road between River Road West and Fairground Road. Sandy Hook Road will be closed to through traffic for the duration of the festival.  Signs have already been posted announcing road closures.

Goochland Day 2022 will have something for everyone, including adult-sized inflatables and a bull ride. Exhibitors include a wide array of vendors and representatives of many local organizations.

The revival of Goochland Day is yet another example of citizen volunteers working hard to enrich our community. The Goochland Day Foundation is a 501 c (3) non-profit organization funded by community donations.

See you Saturday!