Fluvanna review – tax news hollywood u database

The recent appearance of extra money headed toward county coffers has softened the advertised tax increase approved by the fluvanna county board of supervisors.

At a work session wednesday night (march 14) supervisors voted to advertise a budget of $77.2 million for fiscal year 2019 (FY19), which runs from july 1 through june 30, 2019. They also advertised the following tax rates for calendar year 2018:

Supervisor don weaver voted against the advertised budget and tax rates, which are not yet binding. Advertisement allows fluvanna residents a chance to make their opinions known. While supervisors can adopt a tax rate lower than what they have advertised, they cannot go higher without restarting the advertising process.Fund balance

The extra money – perhaps $300,000 – that materialized in recent weeks comes from an increase in taxable values, said commissioner of revenue mel sheridan.

Fluvanna residents pay taxes on the value of various items they own, such as houses, vehicles and boats. When the value of what residents own increases, the money that comes in from taxes increases as well. When extra money comes in during budget season, it can absorb some of the impact of spending increases.

County administrator steve nichols initially proposed an FY19 budget that included a 93.9-cent tax rate. That proposed budget did not include any additional dollars for the schools.

The schools have requested almost $1 million in additional funding.Extra money since the uptick of one penny on the real estate tax rate generates about $293,000, fully funding the schools’ request would have required another 3.4 cents – resulting in a tax rate of about 97.3 cents.

That number is an estimate, as nothing is set in stone until supervisors formally adopt their budget and tax rates. It is, however, a significant departure from the rate of 92.7 cents, which was tossed around several times during the work session as a possible final rate.

Two major factors have emerged to impact tax calculations – the appearance of extra money and the informal reduction of the schools’ budget request.

Superintendent chuck winkler now hopes to make his budget work with $600,000 from the county rather than the $991,000 originally requested.Budget rates and in a surprising announcement, nichols suggested pulling the $600,000 out of the general fund balance – a pot of money sometimes referred to as the county’s savings account. Balancing budget with fund balance

Nichols has been a consistent opponent of using one-time dollars, or money that cannot reasonably be expected to rematerialize, to set tax rates.

“we typically don’t use fund balance to fund operations,” said eric dahl, deputy county administrator and finance director, at the work session. “they’re generally for one-time projects.”

But nichols said such an approach may work this year. “I’m pretty comfortable, based on our conversations with the superintendent and the staff, that the schools will have a substantive amount of money left at the end of this fiscal year,” he said.Budget request

The county could therefore give the schools $600,000 out of fund balance for FY19, with the understanding that the schools would then return what nichols described as a sizeable amount of money after closing out their books for FY18.

Nichols described such a transaction as a “pinkie swear,” since supervisors would not have the authority to compel the schools to return the money. ”but if the schools don’t follow through and do what you’ve kind of agreed to do, there’d be a lot of bad blood,” he said.

His proposal, therefore, is “kind of a neutral way to fund what the schools are asking for without adding to the tax rate, and get that money put back in fund balance,” nichols said.Extra money outside of this approach, supervisors will need to fund school increases by raising taxes.

“the board is reticent to raise the tax rate, and it’s a small-term fix to a problem that can be fixed in a better revenue year – which will be next year, having a full reassessment next year,” he said. “otherwise I would never consider it. But it’s using dollars that are in the tax rate this year and moving them forward and helping cover our costs. We’re going to have to pick [the costs] up eventually, but it’s a way to give a bridge to a better revenue year.”

Nichols did not know how likely supervisors were to back his plan. “the board has to decide what tax rate they want,” he said.Budget rates “if they do not want to go up on tax rates they have to find some other way to fund the tax rate they want to stay at. This year we’re going to have more flexibility…but it’ll be with some downstream risk.” extra money

This is not the first year that extra money has shown up in the middle of budget negotiations. In fact, nichols said it happens “almost every year.”

“initially in january we report what we know to be the case” regarding vehicles owned by fluvanna residents, sheridan said, “which is generally the previous year’s number of vehicles. When we get the new list from the department of motor vehicles, toward the middle or late part of january, it’ll hopefully have additional vehicles in it.Budget rates if it doesn’t have more vehicles, then at least it has vehicles that may be higher in value. So consequently, we start in january conservatively estimating, and by the time we work through the early part of february and march, we have gotten a list that’s refined with total number of vehicles and a value associated with them… it’s a routine process that’s always part of the annual budgeting process.”

The same thing happens with homes. In january sheridan’s office reports the real estate taxable value base as it existed at the end of the preceding october. But new homes have been built in the ensuing months. “so as we go out and pick up those new homes, the total value of those homes will be added into our database,” sheridan said.Budget request the higher taxable value results in more tax dollars coming in.

“to start the budgeting process as early as [nichols] has to, he wants to know really at the end of december what we know the numbers to be,” sheridan said.

Sheridan is aware he’s underestimating when he hands over his numbers. “I am deliberately conservative in the early part of the budgeting process,” he said. At this point, sheridan anticipates having a little over $300,000 in extra money.

Although the schools’ budget request stands at a little under $1 million, superintendent chuck winkler said he thinks he can make $600,000 work.

The schools may receive extra money before the end of the year.Fund balance the federal government may send about $100,000 fluvanna’s way, and the state could contribute an extra $211,000. The schools also hope to receive $250,000 to $300,000 back from piedmont regional educational program, an organization in which the school system participates.

Because of the potential for extra money, winkler’s informal adjustment doesn’t currently include deleting any initiatives his budget request hopes to attain.

Winkler’s budget proposal focuses on raising school staff salaries and holding employees harmless for a potential increase in health insurance costs.

Supervisors will hold a public hearing on the budget and tax rates april 4 at 7 p.M.Budget rates at the county courthouse. They are expected to take a final vote april 11.