City Council adopts FY23 budget, raises real estate tax rate by a penny
In a brief meeting last night, Charlottesville City Council adopted a nearly $212.9 million budget for the fiscal year that begins on July 1. However, a penny increase in the real estate tax rate goes into effect for the calendar year, which will be included in the tax bills that will soon be sent to property owners. That’s the first increase in the tax rate several decades.
“It’s been a long budget season,” said interim City Manager Michael C. Rogers. “We’ve listened as staff to your various proposals and desires to address issues in our community.”
The final shape of the budget was formed at a work session on April 7 at which Councilors agreed to the real estate tax increase and to keep the personal property tax to $4.20 per $100 of assessed value. Second reading of a vote to increase the meals tax to 6.5 percent will be held on April 18. (read the staff report)
Charlottesville Mayor Lloyd Snook is the only opponent of the increase to $0.96 cents per $100 of assessed value, but he did vote in the affirmative.
“I will note that I disagree with the levy and raising of the real estate tax by one cents but given the fact that we just passed a budget that has to be funded, I will be voting yes,” Snook said.
That additional penny will raise $925,000, all of which will go to pay for future debt service related to the renovation of Buford Middle School as well as school reconfiguration. The group Charlottesville United for Public Education released a statement thanking the Council, but signaled they will continue to push for more.
“While we thank City Council for making a strong commitment to our schools in their budget vote last night, we also call on them to continue to make investments in public education a top priority going forward,” reads a statement.
The first half of the tax bills are due on June 5.
The last time City Council increased the tax rate was in 1981 when Council voted to increase the rate from $1.10 to $1.13 per $100 of assessed value.
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