It could have been that the city’s budget and tax rate are of extreme importance to many citizens, especially middle-class homeowners getting squeezed by rising assessments. Or, it could have been that teachers at Charlottesville High School picked March 19’s City Council meeting as required attendance for dozens of yawning students scribbling on meeting worksheets. Either way, the house was packed.
At the first public hearing on the annual tax levy and proposed budget, comments ranged from the plaintive: “Rising tax assessments are driving the middle class out of the city,” to the accusatory: City Manager Gary O’Connell is “blowing smoke.”
 Some city residents speaking at a public hearing on the budget and tax increase laid blame at City Manager Gary O’Connell’s door for the rising property taxes. The current budget does not include a tax reduction. |
The city’s proposed budget, announced March 2, keeps the annual real estate tax rate the same as last year, at 99 cents per $100 of assessed value. By contrast, the county recently settled on a tax rate of 70 cents per $100 and reportedly may go lower.
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The total city budget—including both operating and capital —is an 18 percent increase from last year. City staff say a good year in tourism and cutting costs in certain departments led to a $9.9 million surplus, which is being invested mainly in capital projects in the coming fiscal year.
Though Charlottesvillians are typically accepting of higher taxes in exchange for services, the crowd seemed to be saying, “Enough is enough.”
At least a few city councilors seemed to agree. Kevin Lynch said he thinks $4 million can be shaved off the proposed budget and a 4-cent across-the-board tax cut implemented.
But, councilors warned, lowering the tax rate may not be the best way to help the low- and middle-classes afford city living. Each cent of tax reduction would only save the average homeowner about $30 a year, they repeated.
Instead, several councilors expressed support for expanding tax relief targeted at the city’s poorest to include more of the middle class. The budget includes over $4 million in targeted tax relief, according to O’Connell.
Next, City Council will make its own recommendations on the budget. Can’t-miss meetings for all you budget hawks: City Council meeting April 2, Budget work session April 4, Budget adoption April 10.
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