Spending public money

 

Goochland Tax 2023 rates will be set on April 18

Taxing and spending for the public good is the most important task of the Goochland Board of Supervisors. The annual budget process, which began last fall, will culminate with the adoption of the county budget for fiscal year 2024 and setting tax rates for calendar year 2023 on April 18.

When County Administrator Vic Carpenter presented recommended budget in February, the economic outlook was a bit cloudy. (Go to the county website https://www.goochlandva.us/ and then to the financial services ta  under “your government” to see access the full document.) It was crafted with a conservative approach to revenue projections and expenditure growth.  Challenges include a need to expand spending on public safety, the impact of inflation across the board, and constantly rising health insurance costs for employees.

As the year progressed, things began to look, in the terms of Carla Cave, Director of Financial Services, “rosier” as the picture of expenditures and revenue came into sharper focus.

During the April 4 meeting of the county audit committee, Carpenter reported that that county expects to realize a surplus at the end of FY23 of about $8 million. Discussion about what to do with that surplus ensued. Options offered were to apply it to the capital improvement plan, return it to taxpayers, or a little of both.

The audit committee is an advisory body that brings recommendations to the full board for action.

Audit Committee Chair District 5 Supervisor Ken Peterson, said that “prosperity is coming Goochland’s way and we should be prepared for it both in terms of infrastructure and revenues.”  He started a discussion about what to do with “ an extra dollar or two” in expected revenues for the current fiscal year. He advocated consideration of “what the citizens would want us to do with that residual, because it’s their money, their county, their tax dollars.”

The hybrid approach—some funds going to CIP others  to tax relief—was discussed in detail.

Higher personal property tax bills, the result of exploding used car values, are not popular as people struggle with inflationary pressures. Carpenter said that the average value of used cars has increased by 36 percent in the last four years.  Goochland’s current personal property tax rate, $3.75 per $100 of valuation, is the highest in the region even though our real estate tax rate of 53 cents per $100 is the lowest.

Last month, to address rising personal property tax bills, the supervisors kicked around the notion of taking $5,000 off the value of every vehicle to provide some tax relief. After lengthy discussions with the Treasurer and Commissioner of the Revenue, it was decided, said Carpenter, that option was not feasible.

Instead, Carpenter presented the option of lowering the personal property tax rate, for cars and trucks, to $2.99 per $100, a decrease of 76 cents. This rate change would consume approximately $3 million of the expected surplus at the end of the fiscal year, leaving $5 million for other uses.

On Tuesday evening, April 4, the public hearing on the proposed budget, tax rates, and fees for fiscal 2024 was held.  It was sparsely attended. The few people who spoke, objected to the county’s high “car tax” which they contended was difficult for citizens to “swallow”.

Curiously, retention of the 53 cents per $100 of valuation for real estate was not challenged, even though it represents a hefty tax increase. “People understand why the real estate tax is going up,” one speaker said. Personal property tax is another matter.

During the audit committee meeting Commissioner of the Revenue Jennifer Brown explained that her office determines values of vehicles using J. D. Power clean trade-in ratings, which is selected by the Association of Commissioners of Revenue. J. D. Power, said Brown, monitors actual vehicle sales by dealers.

The ongoing competition for the best employees was also discussed. Charlie Vaughters, District 4 supervisor, contended that the county should use extra revenue to keep compensation as competitive with our neighbors as possible. School Board member Karen Horn echoed the sentiment. “Without the talent inside, our schools are just bricks and mortar.”

Others pointed out that hiring new employees is very hard and the salary studies done just last year are already out of date and advocated for putting resources toward recruiting and retaining the best employees to avoid the expense of turnover.

The final decision on tax rates will be made at the April 18 Board of Supervisors’ meeting. Use of the FY2023 surplus will likely be determined after the books are closed and actual year end numbers are in hand.

Note the supervisors may approve rates lower than those advertised, but cannot raise them when they set tax rates for calendar year 2023.

Goochland has a lot on its fiscal plate. In addition to the new Goochland Elementary School, which is rising from the ground off of Bulldog Way, another fire-rescue station and courthouse replacement will soon follow. As the county grows, employees to provide services to new residents and businesses must be funded.