NEWPORT NEWS, Va. (WAVY) – In the largest city on the Virginia Peninsula, certain fees – but not property taxes – could rise slightly this coming fiscal year.
City Manager Cynthia Rohlf introduced them on Tuesday Proposed operating budget of $ 959.8 million for fiscal 2022which starts on July 1st.
Rohlf said this year’s operating budget was based on certain sales projections and considerations about the impact of the COVID-19 pandemicincluding:
- An expected increase in property valuations in most property classifications
- A stable core tax base with machines and tools as well as personal wealth taxes
- A slight decrease in consumer-sensitive income such as meals, hotels and accommodation, rental car and entertainment taxes.
“We are confident that the city’s core tax base for real estate, personal property, and taxes on machinery and tools has been solid over the past few fiscal years. This has also been shown to be correct during the pandemic; The tax base is not only solid, it is also growing, ”wrote Rohlf in a letter to the city council about the budget.
With these sales projections in mind, Rohlf suggests keeping some things the same and changing others.
Rohlf has proposed increasing rainwater charges by 2.5%, or 40 cents, which averages a little less than $ 5 per household per year, to keep up with rainwater maintenance.
It is recommended that property taxes stay the same at $ 1.22 per $ 100 of estimated property value. According to the budget presentation on Tuesday, this rate has not changed since 2014. Rohlf expects the city to generate $ 215.7 million in real estate tax revenue in FY 2022, an increase of $ 11.3 million, or 5.5%, over FY 2021.
The proposed budget also provides for a 3% increase for city employees with effect from July 1st, which Rohlf referred to in her presentation as an “investment in employee compensation”.
The city had previously made a general wage adjustment of 2.5% in September 2020.
The budget includes a recommendation of $ 121 million to fund Newport News Public Schools in the city, about $ 421,000 less for general fund support than the approved budget for fiscal 2021. The decline in funding is on the decline of debt servicing costs.
The school fund accounts for 26% of the city’s total operating budget and is the largest single funding component.
In the budget, Rohlf also recommends funding a public-private partnership that aims to one day give parents the opportunity to take their child to a good daycare center – a daycare center that could better prepare them for school.
“We would first try to get children from six weeks to three years into a program or an organized structure. Prepare them for the next step. “Said Rohlf during the presentation on Tuesday.
Two public hearings will be held to allow residents to weigh up the proposed budget. These dates will be announced in advance by the city.
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