As Norfolk residents’ outcry ebbs, so do likely tax rate cuts

NORFOLK

A year ago, the cries from irate taxpayers were unmistakably loud.

More than 16,000 people signed petitions demanding lower real estate taxes. And 700 showed up to a raucous town hall meeting staged by the Norfolk Tea Party 2, a watchdog group that lobbied for lower taxes.

The City Council responded by reducing the tax rate by 16 cents, to $1.11 per $100 of assessed value.

But Wednesday night, when the council held its annual tax rate hearing, the outcry was more muted. And partially as a result, the tax rate appears unlikely to fall more than a few pennies, if at all.

About 100 people turned out at Granby High School. All 21 speakers called for lower taxes or more equitable real estate tax assessments.

Council members, most of whom committed early in the budget process to little or no tax rate reduction, seemed unmoved.

“I didn’t hear anything that would change my mind,” said Councilman Paul R. Riddick .

Mayor Paul Fraim said he had hoped to reduce the tax rate “by a couple of pennies” when the budget process began. After learning of cuts in state funding for the city, he’s not sure tax rates will decrease.

“I think most people would agree we did a good job last year, when we reduced the tax rate more than any of our neighboring cities,” he said.

The Tea Party has advocated a reduction to 99 cents. Brian Smith, who heads the group, appeared to concede that goal when he told the council that $1.08 “should be the starting point for your discussions.”

Many of the speakers told of reducing costs by not eating out as much to compensate for rising taxes. The most frequently heard complaint was of assessments – which will rise an average of 3.1 percent when the new fiscal year begins in July – that are not in line with declining home prices.

City officials explained that the lag time between home sales and assessments can run as much as 18 months.

Loretta Cochran, a retiree who lives near Wards Corner, said her home is assessed at $284,000, but when she recently applied for a second mortgage, the house appraised at $240,000. She could not sell her home for what it is assessed, she said.

Larry Gregory, a Tea Party member, said the tax rate is 23 percent lower in Virginia Beach. He said many Norfolk residents will move to the Beach if the disparity persists.

“Our residents are really feeling the pain,” he said.

Tonight at 6, also at Granby High School, the council holds its annual budget hearing, when speakers will be asked to comment on the $1.2 billion proposed budget. City employees, advocates for the arts and libraries and others seeking increased spending are likely to speak.

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com