Fluvanna Budget Proposal Includes Real Estate Tax Increase

By. Bryan Rothamel, Field Officer

Steve Nichols

Fluvanna County’s Administrator Steve Nichols presented his budget proposal to the Board of Supervisors on February 7. It included just over a three cent increase in the real estate tax rate.

The current real estate tax rate is $0.907 per $100 assessed. Steve Nichols proposed a $0.939 tax rate for FY19.
His proposed budget holds the line on county services and programs. It adds one position and includes no pay raises for staff.  Nichols’ budget increase is primarily from additional debt the county brought in for the Zion Crossroads water project. The county also has additional maintenance cost for the new radio project.  Debt service for the county went up an additional $275,000, just under the equivalent to a penny in real estate tax rate. The emergency management budget went up $225,000.  Department heads asked for four new positions and six upgraded positions. The Nichols proposal provides one position.
Don Weaver
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Don Weaver (Cunningham District) pointed out Fluvanna is still highest county for tax rates in the area and asked if a tax cut was possible.  “Unless you cut people or programs, you can’t,” said Nichols.
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The two major issues that aren’t addressed in Nichols’ budget are health insurance costs and additional money for the school system.
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Staff is awaiting final numbers for the insurance cost and it is looking to be a slight increase to steady. A finalized number will be available soon.
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Nichols level funded the schools. The superintendent, Chuck Winkler, presented his budget proposal to the School Board the same day Nichols’ proposed his. A report from NBC29 listed the school budget proposal to include increases.
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Fluvanna’s continual real estate tax raises will continue until additional tax revenues work their way into the coffers. One way to entice additional businesses to come to the county is lowering the business and public utility personal property tax. Nichols proposed to lower it from $2.90 to $2.40 per $100 assessed.  It is more a symbolic move to attract new businesses and help current businesses. Overall it isn’t a huge reduction in taxes received. The change in collections is $45,000.
The county is attracting one new business. The salvage yard operator LKQ, going behind the old Cosners’ location, will bring in an estimated $150,000 in tax revenue. That was a low end estimate, per staff.  The outlook for future years is not nearly as grim as it was a few years ago. Unless the county starts taking on additional debt, it can hold the tax rate rather steady, Nichols estimates.
“Frankly, (future) budgets…look steady state,” said Nichols.  Fluvanna had previously kept a sizable unreserved savings account, known as the fund balance. That unreserved amount is slowly being spent.
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It currently is $6.3 million but supervisors have verbally committed to spending a large portion of that to cash fund part of the Zions Crossroads water project. That is estimated to be a $3.5 million commitment.
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“It really is in a tight, tight position,” said Tony O’Brien (Rivanna District).  The fund balance accumulates when the county receives more revenue than expenditures, either through higher tax collection or budgets not be fully spent. Previous years the fund balance has been used for capital improvement plan items. Last year to the tune of $1.2 million. This year that number decreases to $1 million.
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Supervisors will have various work sessions on the budget. The next one on February 14 with the constitutional officers.

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The Free Enterprise Forum’s coverage of Fluvanna County is provided by a grant from the Charlottesville Area Association of REALTORS®and by the support of readers like you.

Bryan Rothamel covers Fluvanna County for the Free Enterprise Forum

Photo Credits: Fluvanna County

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