Norfolk city manager: No real estate tax hike

NORFOLK

City Manager Regina V.K. Williams said that in spite of declining tax revenues and reductions in state funding, she will not ask the City Council to raise real estate taxes this spring.

Because a majority of the council also opposes raising real estate taxes, it seems certain that for the first time in decades, most Norfolk homeowners will see a slight reduction in their tax bills.

Assessments on existing homes are expected to drop an average of about 6 percent beginning July 1 after nearly two decades of robust growth.

For the first time, however, most residents will also experience cuts in city services and some city jobs will be eliminated.

Williams said she must still close a $26 million deficit before she presents her proposed $1.1 billion budget to the council on April 20. She will do so by proposing to reduce hours at libraries and recreation centers, eliminating "nonessential services," postponing some construction projects and doing away with some city jobs.

She has not ruled out increases in other fees and taxes but said "it's the wrong economic environment" to raise real estate taxes.

Virginia Beach City Manager Jim Spore has recommended an increase in that city's real estate tax rate, which has been rejected by a majority of the Beach council. Tax rates in Portsmouth, Chesapeake and Suffolk also will not be increased.

Williams said after a series of tax-rate cuts in recent years, including a 16-cent reduction in 2007, to $1.11 of $100 of assessed value, it's too soon to raise rates.

"We shouldn't yo-yo taxes up and down," she said. "We need to tighten our belts.

"Will we need to revisit this in the future? Possibly so, but I just think it's too soon."

Williams and budget director Ron Williams Jr. briefed the council on budget issues for nearly 90 minutes Tuesday. They said the police and fire departments, whose budgets have previously been sacrosanct, will face reductions.

"The public-safety cuts will not reduce response time," Regina Williams said, adding that police and fire will be asked to reduce nonessential services.

Regina Williams said there is much angst among city employees. She hopes that job cuts can be made through attrition, but acknowledges that attrition has dropped since the economy soured.

Last year, the city eliminated 53 positions. Williams said she isn't sure how many of the 4,901 current city jobs will be cut.

"There aren't any silver bullets here," she said. "There are going to be reductions. We can't avoid it."

The biggest question involves how much money the city will provide the school system. Last year, the city gave $101 million.

Williams asked the schools to accept a cut to $98 million and asked officials to let her know how that would impact their budget.

"I never heard back from them," she said.

Instead, the school system submitted a budget asking for $106.7 million, $8.7 million more than Williams recommended.

School officials are scheduled to meet with the council Tuesday at City Hall to discuss the budget and testing problems in the schools.

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