Lynchburg City Council candidates take on ’07 tax rate cut

The question:
Lynchburg property values increased 20 percent last year due to the 2007 reassessment. City Council subsequently voted to lower the tax rate to $1.05 per each $100 of assessed value — a drop of 5.4 percent. The revenue-neutral rate was 94 cents.

Officials additionally eliminated the monthly “common goods” fee, which saved homeowners, on average, the equivalent of 5 cents on the tax rate. The fee’s abolishment did not affect owners of commercial property.

Explain whether you agree or disagree with the measures taken by City Council. If you agree, specify why you feel this was sufficient tax relief. If you disagree, specify where you feel additional budget cuts should have been considered.

The answers:
Mike Gillette, Ward I
“This year’s tight budget is evidence that additional cuts to the tax rate would have been a mistake. Lower revenue would have jeopardized our schools, public safety and City services. In order to deliver the greatest relief to those in need, however, I initiated the effort to eliminate the Common Goods Fee. This produced the equivalent of an additional five cents off the average homeowner’s tax rate, and more to those with lower valued homes. By targeting the relief, we saved the City nearly $1,000,000.00 per year; a smart and creative economic move. For more detail, please visit http://www.lynchburgva.gov/Index.aspx?page=4289

Jim Martin, Ward I
“I agree with Council’s vote to reduce the rate. As a long time businessman, I made hard choices setting budgets and spending priorities. I know how to balance wants and needs. Council needs to be proactive monitoring tax rates to make sure our citizen’s tax rate is competitive with neighboring jurisdictions we compete with for developments. However, we must do this in a responsible way making sure resources are available to provide the service levels we enjoy that makes this city one of the most desirable places to live in the Country. As a businessman, I will do that.”

Tom Shahady, Ward I
“I applaud what city council accomplished last year with this issue. Lowering tax rates countered new assessments and eliminating the common goods fee furthered the cause. We need to strive for the revenue neutral rate scrutinizing government’s efficient use of funds. Taxes must remain in check. But council action didn’t fix the problem. A large increase in property taxes without explanation developed the problem. This creates lack of trust in city officials and is unsettling to taxpayers. We must have clear explanations, methodologies and actions from our city assessor. Increasing assessment followed by lowering tax rates is not government efficiency.”

Ceasor Johnson, Ward II
“I voted for cutting the common goods fee, as well as lowering the tax rate. Being a member of council and going through the budget hearing last year this was the best way to give tax relief to home owners and still be able to provide services to our citizens. If we would have lowered the rate any further essential service would have been threaten, such as police and fire, as well as our school system. Living in one of Virginia first cities we have older infrastructure that cost a great deal to maintain.”

Note: The final sentence of this response is not printed as it exceeded the 100-word limit given to all candidates.

David Johnston, Ward II
“The least amount of tax burden we place on property, the more it will benefit the city. One of the reasons people move to the counties vs. the city is the difference in tax rates. Therefore, I would have chosen the $0.94 rate instead of eliminating the common goods fee. With the stated figures that still results in an increase of $0.06. With the common goods fee removed, the property tax could have been placed at $0.99 to remain revenue-neutral.  At that point, no budget cuts would be necessary.”
Jeff Helgeson, Ward III
“I pushed to set the tax rate at $.94. That would have meant no tax increase for our property owners, and still have allowed the General Fund Revenues to grow by 5%! The past decade of tax increases, without any relief, now puts Lynchburg as the 9th most fiscally stressed community in Virginia. Our citizens cannot afford another tax increase. Four council members voted to raise your taxes by 12%, and then surprisingly call it a cut. I voted against that increase because government must live within its means just like every individual, family and business must. (Please visit jeffhelgeson
.com)”

Nat Marshall, Ward III
“I agree with City Council’s decisions to lower the tax rate and eliminate the common goods fee. The large increase in Lynchburg’s 2007 assessed property values was driven in part by the real estate bubble. Prudence dictated that Council not assume those large increases would continue or be permanent. This city’s budget process is carefully done by a talented, professional staff and then submitted to Council for consideration. It attempts to balance the needs of the community against the understandable reluctance of all of us to pay for those needs. This process is generally successful.”

Turner Perrow, Ward IV
“The 2008 budget contained the largest year over year real estate tax increase in the past ten years. A 5% increase in revenue would have been expected if the tax rate was equalized at $0.94 per $100 of assessed value; homeowners would have kept approximately $4.5 million that was spent by the city. In 2008, total expenditures increased by $88.5 million (27%) over the prior year. Those expenditures should have been reduced to keep the real estate tax rate equal. Councilman Helgeson’s initiative to repeal the common good fee was a positive measure to help decrease homeowners’ expenses.”

Marie Waller, Ward IV
“Council should always attempt to keep the tax burden on the citizens as low as it can be, bearing in mind possible economic changes in the future, as well as whether every tax dollar is being used in the most appropriate and efficent manner. As a member of Council that kind of analysis will always be part of my personal agenda. If we can reduce expenditures in a responsible manner and still provide the services the people of the city need, we should definitely reduce taxes, primarily by cutting the property tax rate as well as the common goods fee.”

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