Portsmouth city treasurer race all about tax collection

PORTSMOUTH

The city's delinquent tax rate is at the center of this year's race for treasurer.

Longtime incumbent Jimmy Williams is being challenged in the Democratic primary on June 9 by Bruce LaLonde, chairman of Portsmouth's Municipal Finance Commission.

Williams, a f ormer banker, is supported by most city leaders, while LaLonde, a retired U.S. Navy captain and certified professional accountant, says he can provide the City Council with better financial advice.

Williams said that during his 16 years as treasurer, he's fully automated his office and improved services.

"We have basically eliminated long lines," said Williams, 70.

LaLonde criticized Williams for what he said was the city's rate of delinquent tax collections.

He pointed out that according to Portsmouth's Comprehensive Annual Financial Report, the city's percentage of property tax collection during fiscal years 2001 to 2008 varied between 80.3 and 89.3 percent.

That is significantly lower than other cities in South Hampton Roads, LaLonde said.

In Norfolk, for example, the percentage has ranged from 89.5 percent to nearly 94 percent between fiscal years 1999 and 2008. Virginia Beach's collection rate was between 91 percent and nearly 97 percent during the same period.

"We have an overwhelming problem with tax collections," said LaLonde, 56.

Williams said the economy has taken its toll and delinquent taxes are a fact of life.

The collection rate is measured annually by the Treasurers' Association of Virginia, which sets accreditation standards for tax collection, Williams said. The association measures collections a year after they are due, he said.

By then, Portsmouth's collections have generally reached about 95 percent, he said. His office is assertive in using all legal and administrative means to collect taxes, he said.

Fields Young Jr., chairman of the office accreditation committee for the association, said to remain accredited, localities must collect 90 percent of personal property taxes and 95 percent of real estate taxes within a year of the due date. Portsmouth is accredited, Young said.

Williams said the council would not have been able to decrease the real estate tax rate from $1.45 per $100 of assessed value to $1.21 over the past five fiscal years if it weren't for his office's collection rates.

"I'm very proud of our collection rate," Williams said.

Williams also said Portsmouth's per capita income is lower than that of surrounding cities and its residents have been hit hard by job losses. His office works out payment agreements with people who need them.

Williams said he's proud of the customer service that his 23-person office provides and said he's looking forward to opening a satellite office in the new Churchland library.

However, LaLonde criticized the current treasurer's customer service and said the office should have more remote sites. Williams didn't listen to a suggestion that LaLonde made a few years ago to open a satellite office in a Wal-Mart on Frederick Boulevard, LaLonde said.

LaLonde also questioned how often Williams revisits the city's banking relationship with Wachovia.

Williams said that though the city's primary banking relationship is with Wachovia, he compares the bank's rates when he is approached by other banks. And he said he puts some investments out for competitive bids.

The treasurer's office has a budget of about $1.8 million this fiscal year, which ends June 30.

Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com