patching...
Welcome back, Patch Blogger!

Proposed Real Estate Tax Rate Hike Could Cost City Taxpayers Hundreds

Fairfax City Council considering raising the rate by 8 cents per $100 of assessed value.

 

Fairfax City Council is considering a staff recommendation to increase real estate taxes by 8 cents for Fiscal Year 2014, in part to make up for increased costs in capital improvement projects and the city's school tuition bill.

At a Tuesday night council work session, the staff unveiled City Manager Bob Sisson’s budget blueprint for next year.

Read about the city's proposals for employee pay and police and fire here.

Check back with Patch on Wednesday and Thursday for more updates on the city's school tuition bill.

The plan calls for a residential real estate tax rate of $1.09 per $100 of assessed value, an increase from the FY 2013 adopted rate of $1.01. The proposed hike comes on top of a 7-cent increase in the real estate tax the council adopted last year.

The increases are being driven by many factors, including a sluggish recovery from the recession. But, the city’s unemployment has declined from 7.3 percent in September 2011 to 5.7 percent in June 2012, which is below the state’s unemployment rate of 6.0 percent and the national unemployment rate of 8.4 percent.

For homeowners, the FY 2014 increase amounts to an additional:

  • $306 a year for a $300,000 assessed property.
  • $510 a year for a $500,000 assessed property.
  • $714 a year for a $700,000 assessed property.

 “It’s really tough and for years, we’ve been playing catch up in a lot of areas,” Mayor Scott Silverthorne said.

Sisson proposed FY 2014 overall spending of $176 million next year, an increase of 8.6 percent from the current fiscal year. The proposal recommends spending $127 million from the General Fund (an increase of 5.3 percent) which includes Capital Fund expenditures, like city construction projects, of about $5 million.

Other Budget Highlights:

  • Assessed  value  of  all  real  property equal  to  $5.3 billion, an  increase  of $112 million or 2.1 percent  (includes new construction of $42.2 million).    
  • Maintains the Senior Tax and Rent Relief income limit at $62,000.
  • Adds $345,000 to the fund that keeps the city’s CUE bus system running. Ridership remains stable, but regional funding support has fluctuated.

The council will hold another session to debate the budget on March 26; it intends to adopt a final budget by May 1.

Subscribe to our free daily newsletter and never miss a thing.

Related Topics: Budget, City Manager Bob Sisson, Fairfax County Public School, Mayor Scott Silverthorne, Superintendent Peter Noonan, fairfax city budget, and fairfax city council

Catherine S. Read

8:59 am on Wednesday, March 20, 2013

Taxes are the price we pay for living in a civilized society. Residents of Fairfax City enjoy many benefits that are paid for by our taxes. If there is not enough money to pay for the things we value most - like our schools and maintaining our roads and parks - then we have to either cut things out or generate more revenue. Our curbside trash pickup (of anything) is something we take for granted that our taxes pay for. When we start looking at what will actually go away for lack of funds, the pain is more keenly felt.

Reply

Anonymous

9:58 am on Wednesday, March 20, 2013

Let's face it. Fairfax City has a large percentage of Government workers that have had their pay frozen for the past two years and now face furloughs effectively cutting their income by 20%. Others are retired, living on a fixed income. For the City to continue it's reckless spending without considering the the total needs of the community is irresponsible.

Reply

Doesn't matter

1:43 pm on Wednesday, March 20, 2013

The City Council is no stranger to reckless spending. The millions spent on making the downtown area a two way street, the idiotic decision regarding the bus lot, the removal of the turn lane going into Turnpike Shopping Center, then having to pay to reinstall it. There is no shortage of stupidity on the City Council. They have very little regard for the citizens in Fairfax City. They simply use their seats and taxpayer funds to pad their resumes. "Look what I did when I was I the City Council" Plenty of time spending money that isn't theirs, not enough time spent thinking beforehand .

Reply

Richard Tammaro

4:33 pm on Wednesday, March 20, 2013

I just have to ask myself when the increases in the percentage of my income going to different government agencies will stop. The City of Fairfax does a better job than most, but the cumulative taxes and fees from all sides, as well as gas prices, has made it difficult for many of us to afford our basic needs. If you add up all the money that ends up in the government's hands that come out of our wallets you would be shocked. What are the limits of the confiscation of our property?

Reply

Elsa

5:22 pm on Wednesday, March 20, 2013

I wonder how much the inexplicable purchase of the Pickett Rd. "bus lot" (formerly the last lovely open green space within city limits) for $4 MILLION contributed to this budget debacle. What a failure of good planning, common sense, & prudent financial management. The city council will never live down this wasteful mistake.

Reply

Becky S.

8:30 am on Thursday, March 21, 2013

Elsa you are right and there are many more examples of the city buying properties, usually selling them at a loss if they can sell them at all, which has to have contributed to the shortfall. Richard also makes a good point, aside from the obvious taxes like income tax, real estate tax, car tax etc. take a look at your phone, cable, electric, gas, water bills etc. and you'll see just how much you are paying in taxes, fees & surcharges. Start adding them up and many people will find that they are at 40% or more of their income. When is enough enough? I don't think they realize that raising one tax usually results in loss of other revenues. People, unlike government, don't have access to unlimited resources (i.e. the taxpayer's pockets) and will adjust their spending in other areas to compensate for the additional tax, so the city will not realize the projected additional revenue. I say the budget should be put on the city website in layman's terms so that an average taxpayer can see exactly where the money is going and provide their input to the Council -- I'm sure there are many things that can be cut, postponed or maybe even eliminated in order to avoid yet another big tax hike. Do we really need to spend $67k on yet another Fairfax Blvd study? I think not. Let us demand some transparency and not be guilted into compliance by the dire and disingenuous predictions of losing our trash service if we don't fork over another big chunk of our money.

Reply

Victor Z

11:03 am on Thursday, March 21, 2013

Since 2008 my real estate tax has increased 25.5% while my salary increase is less than 10%. Why does the city need to on a spending binge while the economy is in recesson/weak recovery and the residents' income are sluggish? I guess the city is turning blue as the rest of the state. We would need a citizen's revolt to halt the reckless spending by the city council. We need to vote them out of the council. Otherwise I'll have to say goodbye to the city.

Reply

Walt Potock

6:21 pm on Thursday, March 21, 2013

Why don't we all take a step back and think about what we write before showing that we too are probably guilty of exactly the same thing of which we accuse our City Government leaders. Several replies show the writer is someone having done their homework while others are merely venting because of the presented opportunity. If you don't like our city government, you should run for office and then we could talk about you. My wife and I live on a fixed income and have no problem if we have to pay a bit more to live in our great little city. For those who find living in our city expensive, look in any direction and you will find a city or town waiting for your arrival--and that venue (tongue in cheek) will have curbside trash collection, a magnificent Police and Fire Deparment, low tax rate, city bus service ,a city hall where employees make you feel at home--good luck finding a comp! Incidentally; the cost of land on Pickett is close to being a dollar wash (homework). Our city elections are open, jump in if you feel the need.
Walt

Reply

Leave a comment