The Virginian-Pilot
©
VIRGINIA BEACH
City Manager Jim Spore will propose a 3-cent real-estate-tax increase and higher personal property and cigarette taxes as part of his 2010- 11 budget, according to Virginia Beach council members who have been privately briefed about the plan.
Spore scuttled his earlier recommendation for a $10 monthly trash fee after several council members publicly opposed it. And it is unclear whether the City Council will support any tax increases in a year when a majority is up for re-election and the economy is still shaky.
"When the economy is down, it's certainly a tough time to put in a tax increase," Councilman John Uhrin said.
Spore has recommended that the tax rate be raised an additional cent if the city wants to build a recreation center in the Bayside district and a new animal shelter.
"It's going to be a very hard sell," Councilman Glenn Davis said. "But I think it would be prudent to at least examine the budget first."
Spore will unveil his spending plan on Tuesday, and the council will vote on a budget in May.
Catheryn Whitesell, the city's budget director, declined this week to discuss the plan.
Virginia Beach faces an $84.4 million shortfall for the city and school division combined - yet state budget cuts have not been as drastic as officials first feared.
A 3-cent increase to the current tax rate of 89 cents per $100 of assessed value would bring in about $15.6 million in additional revenue to the city. The city manager has suggested a 10-cent tax increase to personal property, such as vehicles, which could generate as much as $3.3 million. A 4-cent increase on the cigarette tax, which would bring in about $1 million, is also being discussed.
Even with the potential tax increases, the city and residents would still be spending less than they did in 2009-10, Mayor Will Sessoms said.
Sessoms has advocated a "revenue-neutral" budget in recent months, meaning that to make up for the drop in property values and to keep next year's budget flat, the city would have to generate new revenues and increase tax rates.
The mayor has argued that even if the city raised the tax rate, residents would still pay less in taxes than in 2009-10 because assessments have dipped so drastically.
If the city were forced to cut back on police officers or reduce library hours without a tax increase, "I question if we would support that," Sessoms said.
Council members said they expect to have some lengthy discussions about the proposals for tax increases, cuts in positions, and whether they should require new employees to pay for a portion of their retirement plans - which the city currently funds completely.
"There are going to be a lot of things on the table," said Councilwoman Rosemary Wilson, who opposes a tax-rate increase.
But raising taxes will be difficult for the council, especially with six of the 11 members up for re-election in November. Neighboring Chesapeake has already announced it won't raise taxes next year. State legislators also shied away from tax increases, although they did raise fees.
Whatever the budget, Beach residents will feel the cuts to services in their daily lives, Davis said.
"Unlike last year, where the cuts to city services were pretty much invisible to citizens, this year they won't be invisible," he said.
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
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Colonel Hansen and the Lynnhaven River
Colonel David Hansen USACE retired, and current deputy city manager has a long history of blowing mega millions. First it was the Red River Waterway in Louisiana. $2.1 billion dollars for Hansen and his fellow project managers to dredge up the marshes and oxbows, straighten the Red River and apply 7 locks so the grain barges could have a straight shot down to the waiting grain ships at the mouth of the Mississippi River. $2.1 billion dollars!!
Only problem, the waterway is too slow and the barges won’t use it.
Hanen About to Blow Another $10 million dollars
Next it was $160 million dollars for that big pump-pipe storm water system at 16th, 40th and 79th Streets. Only problem, these 1000-foot offshore pipes keep filling up with sand and three of the four have been abandoned in favor of a new improved big, big offshore pipe under construction at 61st Street. Wonder if that one will also fill with sand and then have to be abandoned as well. $160 million dollars!
Hansen’s latest boondoggle entails mechanical dredging of the Western Branch of the Lynnhaven River complete with 9000 tandem truckloads of sediment up the long 8-mile grade to the top of Pungo Ridge. And then on into the Whitehurst Pit due east of Oceana NAS.
Hansen Wasting Money and Marshland with Western Branch Dredging
Tearing up roadways, snarling traffic and endangering those in the way of these monster trucks. While simultaneously degrading the marshland of the Western Branch. All this so the good ol’ boys can get their boats up to their waterfront property. And when it’s all over, Hansen will have blown another $10 million dollars, considering the wear and tear on the roadways, degradation of the marshland of the Western Branch and contamination of the aquifers adjacent to the Whitehurst Pit.
The sad part of this is the fact that were this dredging be done by hydraulic rotary cutterhead pipeline dredge, with the dredge spoils being deposited up against the river’s bulkheads on long 1:6 intertidal slopes, why, the marshland could be augmented rather than degraded. And for a lot less, all things considered.
Wake up Virginia Beach! The retired USACE engineer is about to blow millions more of your tax dollars. While degrading yet another estuary!
George Meredith MD
Virginia Beach
Beach reaped huge tax windfall from 2001 -2007
The City budget needs to be viewed in consideration of the massive increases in property taxes the city enjoyed during the wild housing bubble that burst recently. During this time frame our population remained pretty much the same - and the number of school kids actaully declined. The City Manager and the City Council need to roll up their collective sleeves and begin cutting their spending - and finding ways to stop assuming so much debt for non-required real estate "investments" and other non-required speculative socalled "economic development" projects that result in massive taxpayer subsidies. The TOD developer's dream - a 10 mile, half billion dollar rail project along the NS Right of way needs to be set aside - and the millions ear marked for the project - and the old Circuit City property retruned to the General Fund. The same goes for the $63K given to the HRCCE to push light rail in a so-called "civil discussion on transportation". The mayor promised to hold a referendum on light rail. Until that happens, please stop spending millions on the project.
Reid
Well Reid, my question is how many referendums do we have to have on this steel albatross? How many times do we have to say no? Do we keep having referendums until the answer is yes?
My gut feeling is that light rail will happen in VB regardless of the outcome of the referendum. I think it has already been decided. They will argue that they have spent the money to prepare for it and not to do it will be a waste.
Of course, those of us who oppose this financial black hole will forever hold the title of Grover Norquist anti-tax zealot boo-bird. Stock up on the KY jelly and grab your ankles.
TPA's Radical Views Are Just That...Radical
The facts that are provided about the management of the City of Virginia Beach are overwhelmingly positive. AAA bond ratings, lowest tax rates in Hampton Roads, highest levels of municipal services and facilities in Hampton Roads and the lowest crime rate in a city of its size in the nation. And yet, the tax payers alliance complains. I see threats of those who claim to be residents of this great city desiring to leave...then please do..ASAP. Don't let the pot holes of Norfolk or the tumble weeds blowing across Rte 13 on the Eastern Shore or the clogged traffic of Chesapeake stop you on the way out of our fare City's corporate lines.
I pity the fool
"the lowest crime rate in a city of its size in the nation"
it looks so shiny because in the other 49 states these places are called "suburbs"... VB is city in the political sense only
if it had to compete in rankings for "lowest crime rate in a suburb of its size in the nation" I have my doubts where it would land
you do have a point about people whining about taxes though
Oh the humor
I love the Bill O'Reilly disciples who blame the VB budget shortfall on "Sanctuary City" and illegal immigrants... you guys know its not 2006 anymore right?
I mean besides that not making any sense, given how conservative the mayor and city council are, I guess I'm not in the bad parts of VB enough... I'm assuming they're overrun by spanish speaking immigrants given everyone's comments
If that's the case who do you want in your (I'm assumming Green Run/Bayside Area) low class distopias? Newsflash people, degree holding adults don't want to live there, and they're not going to cut your lawn for $20 either... poor is poor, they're gonna get government services anyway
Funny how no conservative officials ever propose legislation eliminating Social Security and Medicare... only empty jabs at services poor people get help from
Why no EMS billing in Va Beach
Can someone in city government explain why they do not pursue medicare, medicaid and other insurance money that sits on the table for EMS ? Va Beach walks away from millions of dollars a year earmarked for EMS. I have heard it is because the volunteer groups are afraid it will cut into fund raising. Well the Beach squad or its foundation have well over 12 million dollars in the bank. The mayor knows this since he is the treasurer of the foundation.
So why do we have to increase out taxes when there is a revenue stream available that the city refuses to collect from.
Trust the Budger
City Manager Spore has a good handle on what needs to be done. City Council should consider his proposals.