The Virginian-Pilot
©
VIRGINIA BEACH
Mayor Will Sessoms and Vice Mayor Louis Jones on Monday floated the idea of raising taxes next year to pay for several large projects, including a new animal shelter and a Bayside recreation center.
"Bottom line: This could result in a tax increase," Sessoms said during a break at the annual City Council retreat.
He suggested that with lower construction costs caused by the weak economy, the city might be able to get $100 million worth of buildings for $70 million.
"Is that not a wise move even if we have a tax increase?" Sessoms said.
Jones, who represents the Bayside district, said the important thing is for the council to focus on a limited number of projects and pay for them with a specific funding source. He said that may or may not involve a tax increase.
"It might be an existing revenue stream or a new one," Jones said.
The size of a possible tax increase and the specific projects that could be funded have not been worked out. More City Council discussion is expected today, the final day of the retreat.
Other council members said they were learning about the idea for the first time.
"I got to hear more about this," Councilwoman Rosemary Wilson said.
"Until I get something more specific, I have no idea what to think," Councilman Bill DeSteph said.
Sessoms said projects that might be paid for with a tax increase could include a new animal shelter, a new recreation center, development of the Dome site and road construction.
He said increased tax revenue could be used to give city employees pay raises. Most people did not get one this year.
The City Council has not raised the real estate tax rate since 1996, when the rate went up 3.2 cents per $100 of assessed value.
The tax rate now is 89 cents per $100. Each penny is equivalent to about $5.5 million of revenue.
A Bayside recreation center in the Newtown Road corridor is estimated to cost $30 million. Estimates for the animal shelter go up to $26 million. A viral breakout this year that forced the euthanizing of many dogs focused attention on the rundown facility, which was built in 1974.
Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com
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The Al and Keith show
Real Estate values have come down based upon the most recent sales data. Of course, the sales data here in the Beach have never suffered as badly as many parts of the country. Sure, there have been foreclosures, but as we know, during the bubble when buyers expressed irrational exuberance that values would always increase, assessments reflected that; now they are headed back down. But like all bubbles, it is too easy to see disaster in this situation, when in fact most experts agree the economy is on the mend, the recession has bottomed out, real estate will start to improve again soon, and citizens will still want quality services. My mantra, ie that increases in the commercial real estate tax base benefit homeowners, is as true today as it has been in the past. How Al could say that all PPVs have been a disaster is a mystery to me; to make that statement, you have to ignore reality, which includes the public acceptance.
Awesome Keith
You are so on target it scares me and clearly you are pretty clued in about Barretts mission. He is completely lost with the idea of furnishing quantitative data (income statement) before making these shoot from the hips assertions claiming that success is brewing all over the place with these PPV projects. They are not. The loses are monumental. Mr B has savvy but likes to mislead & arbitrarily cite revenues rather than costs or subsidies. Keith, the subsidy part will be as enlightening as it can get. In reality, Mr B is an anti tax advocate. Yup, he loves to keep his property values low and subsequently keep the overhead and tax burden low until a property is sold. Than a new ledger becomes the threshold for negotiations
But I need to ask Mike another question. Why did you pass on berating the council members who voted against a tax rate increase since you seemed to trash everyone else. Looking forward to an explanation.
Again, great job Keith!
A win/win
Commercial real estate values have continued to increase, and that has buffered the reductions on the residential side. I suspect that this year, assessments will be down in many neighborhoods, but up in some. That's the way the market operates. In regard to Burton Station, the new plan, adopted with the input of the existing residents and owners, will create a new multi use community with residential, commercial, and recreational components. New streets and a backbone public utility system will be created, but of course, buyers of land for commercial developement will pay back these costs when they develop the new projects. The residential village will accommodate those from the legacy community who wish to stay, as well as new opportunites for new residents. The commercial development should expand the tax base and provide a business park to accommodate millions of SF of commercial property near outstanding transportation infrastructure.
And so are you Mike.
I just find it strange that houses that have sold for less than their current market value as well as major slump in sales and massive forclosures, that real estate assessments still continue to go up every year rather than down. I thought the market was a two way street. Also I seem to recall that there were independent assessors that would suffer the wrath of realtors if the "numbers weren't high enough" in their "independent" assessments. I also thought you said that Burton Station residents didn't have the right to water and sewer services. That was supposed to be paid for by the developer right? So now that the city can't use eminent domain to get rid of those people, now they are going to "give them" these services that they should have had a long time ago. I see. And citizens have a right to lobby AGAINST the city raising their real estate taxes for the purposes of commercial developers Taj Mahals. I would think that by now you would be getting tired of being Will Sessoms and Jim Spores whipping boy. However, I will say this. Debating you is what I live for.
Artifically Inflated Values?
You are a continuing hoot. By artificially inflated real estate values do you mean the sales prices based upon a willing seller and a willing buyer? Now with hindsight, we know that many people paid too much for a home just before the bubble burst, and probably for two or three years before that as well, but frankly, that was their choice. Are you suggesting another bureaucracy to stop people from paying too much if they want to? No, again, you are just one of those angry people who want to lash out and blame someone else for their problems. In this case, you want to blame the city assessor for the fact that values went up and the rate went down. Problem is, that is exactly the way it is supposed to work. And citizens have the right to lobby for services; sewer and water for Burton Station, an extended Lynnhaven Parkway for Centerville, a recreation center for Newtown, new fire stations, and a new animal shelter for pet lovers. Get over it; citizens want quality services.
Right back at you Mike!
First off, I am not a member of the VBTA. Second, when do we see our return on investment? Seems like any profit made from taxes collected go to more NEW projects rather than paying down what's owed. HAd VB not spent the $60M on Town Center and $10M on light rail, there would be money for the needed animal shelter and NO tax rate increase. VB has benefited enormously from artificially inflated real estate assessments which has made city council greedy to pay back the favors of the influential. VB spends money on private developement it has no business getting involved. And all you can do is bring up that 16% of the vote rubbish, yet you can't stomach the same logic with the republican leadership in the HOD. Well, it's time to vote out the developer kissing VB council members who vote in the interest of private economic developement instead of THE PUBLIC INTEREST. Knee jerk anger indeed.
Knee Jerk Anger
Well Keith, right back at you. The VBTA has been opposed to just about every development initiative that now contributes to the tax base and keeps our taxes low. 31st Street Hilton, Park, Garage, and retail shops, Town Center, Lynnhaven Mall TIF, and the V.B. Convention Center. Without these projects, our residential taxes would be much higher. The proposed projects on the Council's list have been supported by many citizens in the community, and some of the loudest posters herein are those who have supported new projects. So the ill informed criticism of Council's consideration is simply a continuation of the constant criticism that is to be expected when you get the 16% of the voters riled up with absurd headlines. There will be ample opportunity to assess the impact of each project as the budget process plays out. Now is the time for reasoned consideration, not knee jerk anger.
Spending sins Mr. Barrett?? Give me a break!
Ohhh please Mr. Barrett. Stop with this rubbish. The tax increases aren't about paying for school,s police, fire, and EMS. These are all legitimate functions of government. These tax increases are about city council spending $60M on boondoggles like Town Center, train tracks, and commercial developers. Now, after all that money has been spent, now it's....oh we need these new projects now. Council has known for years they needed a new animal shelter and there were some organizations who were going to help pay for it. Hopefully the recreation center will have the proper size olympic sized pool so we taxpayers won't be burdened with the costs of paying for another 1/2 inch of swimming pool. A lot of folks are laid off or being close to foreclosure as it is and now council is going to jack up their real estate taxes. Excuse the heck out us for being angry.
Maybe guys
It`s not that they wanted Semmoms, just maybe it was a vote against Meyra!! And yes you can get on and rant and rave about him even if you voted for him! Bottom line is, Va Bch didn`t have a good choice to vote for either way! Me? I`m glad she is gone!
Time to bring Myra BACK!
Time to bring Myra BACK!