Money matters

 

The Goochland Board of Supervisors approved a county budget for FY’24, which begins on July 1, and set tax rates for calendar year 2023 at a meeting on April 18.

Most rates and fees adopted were unchanged from those advertised earlier in the year. The exception is the reduction of the personal property tax rates for personal vehicles—cars and trucks—from $3.75 per $100 of valuation to $2.99, about a 25 percent decrease. Rates for boats, RVs, and airplanes, remain $3.75.The vote was 3-2 in favor, with John Lumpkins District 3, and Charlie Vaughters, District 4, in dissent.

Since County Administrator Vic Carpenter presented his recommended FY 24 budge tin February, the supervisors explored ways to provide some personal property tax relief to citizens grappling with the impact of overall inflation exacerbated by exploding used car values. Until the April 18 vote, Goochland PPT rate was the highest in the central Virginia region.

Earlier this year, an across the board $5,000 reduction in vehicle values was explored but proved to be far too complicated to implement. A rate reduction was offered as an alternative way to give tax relief to Goochlanders. The PPTRA relief was increased to 32 percent of the first $20,000 for vehicles valued over that amount, or the entire amount of vehicles valued up to $20k. “All vehicles that do not meet the definition of “qualifying” (business use vehicles, farm use vehicles, motor homes, etc.) will not be eligible for any form of tax relief under this program.”

Lumpkins said that while he supported PPT relief, he would have preferred to use county funds to piggyback on state PPTRA percentages. This would reduce the tax liability on the first $20k of vehicle value by the adopted 32 percent. The remainder would be taxed at the full personal property rate.  Lumpkins said that he didn’t feel the same sense of urgency on this matter from his constituents “clamoring” for PPT relief as some of his fellow supervisors reported. He contended that the approximately 25 percent drop in the PPT rate is too large and could have a negative impact if vehicle values decline next year requiring a tax increase to generate the same amount of revenue.

Vaughters also voiced concerns about the dramatic reduction in PPT revenue, which, he contended, are better used to keep salaries for governmental employees competitive with our neighbors.

The reduction in the PPT rate, which will “cost” approximately $3 million. It was justified because preliminary revenue estimates for FY23 indicate an approximate $8 million surplus.  At the April 4 audit committee meeting, the rate reduction was part of a discussion about allocation of that surplus. Options included using the money for capital projects or returning it to the taxpayers. (Go to the county website goochlandva.us “watch county meetings” and select April 4 audit committee to listen to the entire discussion.)

Vaughters cited deputies leaving Goochland for a few thousand-dollar bump in annual salary. He said that he hates to lose people for less than $100 a paycheck and contended that money generated by PPT is better spent on salaries.

Ken Peterson, District 5, pointed out that inflation currently plaguing everyone everyone is a regressive tax that puts a heavier burden on those at the lower end of the socioeconomic scale. He contended that lowering the PPT rate for cars and trucks would provide some across the board tax relief.

In the past couple of years as used car values exploded—about 36 percent year over year—county tax revenues generated by the PPT followed suit, contributing to the end of fiscal year surplus.

Peterson contended that, as the revenue generated by the PPT tends to be volatile, using it to fund relatively stable routine expenses is not a good idea.

The county distributed the following press release on the budget:

Goochland, VA – On Tuesday, April 18, 2023, the Goochland County Board of Supervisors adopted the Fiscal Year (FY) 2024 Budget, which begins on July 1, 2023.  The adopted FY 2024 total County Budget of $141.4 million advances county priorities, maintains the real estate tax rate at $0.53 per $100 assessed value for Calendar Year 2023, decreases the Personal Property Tax Rate for personal vehicles by $0.76 to $2.99 per $100 assessed value, and includes tax relief initiatives.

 

The FY 2024 total County Budget is a $17.0 million or 13.7% increase from the Fiscal Year 2023 budget.  The FY 2024 $89.1 million County General Fund budget represents an $14.8 million or 19.8% increase from the FY2023 budget.

The FY 2024 Budget includes two tax relief measures to help take care of citizens in our community.  It decreases the personal property tax rate from $3.75 to $2.99 per $100 assessed value for citizens whose vehicles are eligible for personal property tax relief (PPTR).  It also increases the personal property tax relief (PPTR) rate applied to the first $20,000 of each personal vehicle to 32%.

 

Priorities for the FY2024 Budget include enhancing the high-quality core services provided by Education and Public Safety.  Total County planned investments in Education for Fiscal Year 2024 increased $1.8 million, or 6.9% over the prior year (not including Capital Improvements).  The budget for Public Safety, a key focus area for the budget, grew by $4.1 million or 21.3% over the current fiscal year. 

 

The Fiscal Year 2024 budget includes additional investments in employees. This budget provides a 7% pay increase for all employees. In addition, all Sheriff deputies and Fire-Rescue employees will receive an additional 4% pay increase, and all Emergency Communications employees will receive an additional 6% increase.  These additional pay increases will help Goochland County retain its trained employees in this exceptionally competitive market.

 

The FY 2024 Budget also marks the sixth year of utilizing a twenty-five-year Capital Improvement Program (CIP) to meet the capital needs of the County and Schools. The FY 2024 – FY 2048 CIP contains $612.5 million for forecasted projects including needed investments in education and public safety such as new elementary schools, a new courthouse, and new fire stations.  The first year of the CIP for FY 2024 is $26.1 million and includes investments in the new Goochland Elementary School and a new West Creek fire station.