The Virginian-Pilot
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VIRGINIA BEACH
Property values are falling more than previously predicted, a situation that threatens to punch a bigger hole in the city’s budget.
The value of residential and commercial properties could drop an average of more than 6.5 percent, City Assessor Jer ry Banagan warned city leaders in a memo. Banagan previously forecast a 5 percent fall.
The predicted drop is the latest bad news for city budget officials facing an $84.4 million shortfall between the city and schools. The predicted change is equivalent to a loss of about $7.5 million in city revenue, said Catheryn Whitesell, the city’s budget director.
Whether taxpayers get a break remains to be seen. The City Council has floated the idea of a “revenue- neutral” budget in which the tax rate would be raised to make up for falling property values.
Mayor Will Sessom said the city managed to maintain the tax rate and city services despite last year’s falling values, but he said that might not be possible again. “I don’t know that we can do that again this year,” he said.
The city’s general tax rate is 89 cents per $100 of assessed value.
The city is considering layoffs, fee hikes and a new charge for garbage pickup to raise money.
In late February, Banagan will give a final report that shows final numbers and breaks down the average assessments for residential and commercial properties.
Last year, total assessments fell 2.3 percent, with residential property values falling 4 percent. That meant about $135 in lower tax bills for the owner of an average home previously valued at $327,200, according to last year’s final assessment report.
Assessment notices go out in March.
Before last year, the city had seen dramatic increases in property values, with average spikes as high as 22 percent. Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com
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Moving forward and stepping backwards.
Mike, Following the logic you expressed below, we will 'invest' public tax dollars into a transportation system that has more negative benefits than positive. In one breath you state it is to reduce choke points and provide a means of transport for working people. Yet the city busses go more places than light rail could ever go and with the possible exception of the buses that go from VB to NavSta, the others are under-utilized. Point is, the investment in public transportation infrastructure has positive benefits for the economy of transit oriented developers and only folks in your business will benefit from prosperity. Sure, most of us will will have no choice but to just sit in place and watch our checkbook balances diminish to pay an exorbitant price of a taxpayer black hole for the convenience of a very few. That money could be better spent on the HRBT and the downtown tunnel vice light rail.
Great Value
Keith, I support the mid town tunnel project; I don't think the HRBT is a good candidate for expansion and prefer the third crossing. That said, I believe the evaluation of light rail should be made outside the context of the regional projects; they support ingress and egress to and from the region. Light rail is an internal project that mostly benefits those who use the I-264 corridor. Since the I-264/64 interchange project ($300 M, +/-) has been cancelled, the light rail project is our best option in this corridor. I beleive it can and will be built for less than the interchange project. It will provide great value, stimulate commercial development, and provide an alternative means of transportation in the most heavily travelled corridor at the Beach.
Well again Mike, I disagree.
Well again Mike, I disagree. Even if LR is extended to the beach, I don't believe that it will reduce traffic gridlock, chokepoints, and the like in that corridor even though it has been touted at one time or another to do just that. I MAY have supported it had it started at NAVSTA and extended out from there. That should have been the priority. NAVSTA & NNSY are 2 major employers in Tidewater where the potential would be a lot more traffic off of 264/64 for these employees, yet their transport need was secondary to a bunch of tourists, maybe some college students, and some attorneys for court. On top of that HRT has mis-managed the project. The priorities are bass ackwards and a lot of money has been poured into this bottomless pit for nothing. Thanks but no thanks.
Well Keith, I have never
Well Keith, I have never made the argument that light rail will decrease current congestion; in fact, given the cancellation of all major interstate projects in Virginia, of course the congestion will get worse. In the interim, for the next decade or so, our only option in this corridor is light rail. And yes, I want the system to got to the Naval Base, and that is being studied as well. But the connection to the Beach just increases the chances that light rail will be extended to the Naval Base. I hope ODU and Norfolk International Airport are considered as well. And yes, there has been inept project management; the Beach must adopt a different model, and I am confident they will. Afterall, they just built a project just as big on budet and on time. I would expect the same for this project. MJB sends!
Frankly
I am shocked that you are not being "frank" in this post.
Mike, your comment on strategic investments below remain an
an unconvincing soundbite. "I want the City to continue to make strategic investments that increase the size of the commercial tax base so residential real estate taxes can be a low as possible". Clearly, our tax base continues to be one of the most disproportionate in the nation for the residential community. Here is better idea. Lets admit we are a sprawling bedroom community given that residents support 85% of the tax base valued at $47 billion. Lets not forget the residential support of 85% of the debt ceiling and long term debt service. ($3 billion since 2000) Not to mention an equal amount of taxable retail sales (about $5 billion anually) including the financial support of 12 million square feet of retail space. How about revitalizing all of the 987 "aging" neighborhoods who have not seen any meaninful vital infrastructure improvements to drive up values. How can you explain the logic of not redirecting the massive proceeds of the debt ceiling other than to support the residential entities who's taxable real estate assets make it happen?
Moribund VBTA
Al, you are a stitch. Of course you constantly remind me that statistics lie, and you offer a classic example. Of course we have a large residential community; afterall, we have water everywhere, people like their homes to be near water, and the jobs are increasingly located here. That said, our inventory of commercial property is larger than that of Norfolk and Chesapeake combined. So while our inventory is spread throughout the community, it is a most valuable asset, and the growth of the commercial tax base is one of the reasons we have the lowest tax rate in the region. Why you and your cohorts at the moribund VBTA do not applaud this commercial growth is totally beyond me, especially as you say you want lower real estate taxes for homeowners. Of course, the problem is, the actual results don't fit your ideology so that's why you have deny it. Moribund may be to kind a word.
How about returning the massive dedicated tax dollars to special
interest back to the General Fund? Mr Mayor, over $75 million of citywide tax dollars are diverted annually & need to be returned back to the General Fund. This includes the Trustee Tax where 36.4% of all Citywide restaurant and meals tax is dedicated to support the resort area. The annual subsidy also includes 100% of all citywide amusement or movie tax, and 75% of all citywide room tax. Other unsuspecting areas of return? How about the massive supplement of diverting 317 acres of 500+ self sufficient taxable real properties in the non core area that were siphoned off the tax rolls to support the 33 acre TIF at Town Center. The City policy to divert Citywide generated Tax dollars has occurred for over a decade. Given the current financial difficulties don't you think its time to return these tax dollars to its rightful ownner?
Thanks for the softball
Again Al, you are a rabble rouser. After the meals tax revenue from Tourism is credited to the TGIF and used to pay the extra costs associated with the resort, the operation of the resort returns millions of dollars every year that are used to reduce our real estate taxes. The Town Center area outside of the core area is tacit acknowledgement that the benefit of the proximity to the town center will increase property tax value and stimulate more high value commercial development. And of course, that is exactly what has happened as the new business park south of Bonney Road is now complete, and a new one is under construction north of Bonney Road, as is a new high value, apartment and condominium project the developer of which is constructing the Connector from Bonney to Town Center. Thanks for the softball, Al; you keep showing exactly why investment has worked as planned. I appreciate your help.
Total baloney from the doom and Gloom crowd
Oh Al, please, stop revealing your connection to the old and discredited prophets of doom who meet regularly in a broom closet at Marion Manor. Otherwise known as the moribund VBTA, you guys just can't admit that resort development and the related PPVs and TIFs have provided significant fiscal benefits to us, the residential tax payers. Your continued attempts to scare us into believing the impending demise of our hard earned reputation as one of the best managed and led communities in the nation is always countered by the opinion of experts and the generally positive opinion of our citizens. If the above mentioned projects had not been completed, our tax rate today would be much higher because they would not be making the documented contribution to the tax base. So if we follow your advice, we will pay more? No thanks.