Chesapeake mayoral winner says cut in tax rate should be priority

CHESAPEAKE

In the days after winning the May 6 mayoral election, Councilman Alan Krasnoff sat down with City Manager William Harrell to say he wanted to lower the tax rate more than what was originally proposed.

At a meeting tonight, Harrell will ask the City Council to reduce the mosquito control commission tax rate by 1 cent. But because of economic conditions and existing priorities, the city manager has recommended no change in the real estate tax rate of $1.04 per $100 of assessed value.

Krasnoff defeated Councilwoman Rebecca Adams after a campaign that focused in part on his efforts to lower taxes. He said people expect the city to offer as much tax relief as it can. "People want stability as we go through these uncertain times," he said.

But city officials say that each 1-cent drop in the rate would mean a $2.5 million drop in general fund revenue, half of which would affect the school system. Any cuts could also affect salaries or the number of city positions.

"Any reductions right now are just going to cost us majorly," said Budget Director Angelia G. Yancey.

The council is expected to approve a $963.2 million budget tonight. The 6:30 p.m. meeting at City Hall is the last chance for the public to comment before the budget and tax rate are passed.

Councilman C.E. "Cliff" Hayes Jr., who was re-elected last week, asked staff to prepare scenarios if the tax rate of $1.04 is reduced to $1.03, $1.02, $1.01, $1, or 99 cents per $100 of assessed value.

It is unclear whether any council members will make big pushes for a tax rate reduction.

Harrell described his sit-down with Krasnoff as more a general meeting, as opposed to a "strategy session."

"He certainly emphasized his platform of reducing taxes," Harrell said.

The council voted last year to cut the rate by 5 cents. Krasnoff wanted to lower it by 10 cents, but only one other councilman joined him.

Even without a drop in the tax rate, many city residents won't see as big of a t ax rate jump as in recent years. Home assessments this year will rise an average of less than 1 percent, compared to a 10.2 percent jump last year.

Chesapeake is already facing an expected general fund revenue shortfall of $6 million. City officials are proposing to take $15.8 million in money left over from a previous fiscal year to pay for existing needs.

Mike Saewitz, (757) 222-5207, mike.saewitz@pilotonline.com