Supervisors leave no option open to increase real estate tax revenue, question Town’s proffer negotiations on 335 proposed new homes

Discussion of budget variables as the Warren County Board of Supervisors prepared to authorize advertisement of a public hearing on setting its post-reassessment real estate tax rate for the coming fiscal year, led to a critique of how the Front Royal Town Council appears to be poised to authorize development of a forecast 335 new homes without adequate proffers in place to cover impacts on the County-funded public school system. Could be an interesting Town-County Liaison Committee meeting tomorrow evening at 6 p.m. at the Warren County Government Center, as the supervisors moved to add that topic to the liaison agenda. Get the popcorn, sports fans! (and see that discussion initiated by Supervisor Oates at the 1:12:15 mark of linked County video)

Despite those worries, as well as concerns about the source of revenue to cover various proposed departmental purchases, the three-year-plus incumbents — Cullers, Mabe, Oates — and their two newer-tenured members, Cook and Butler, kept their collective inflation be damned, we haven’t raised taxes to cover county government operational expenses streak alive by choosing to advertise the closest-to-revenue-neutral — actually a $41,000 revenue loss from last year — by choosing to advertise a 49-cent Real Estate Tax rate for a May 2nd public hearing. Illustrating the concern about revenue sources for departmental purchases, Consent Agenda consideration of the purchase of a Pierce Pumper firefighting unit from Atlantic Emergency Solutions for $1,131,659 for the South Warren Volunteer Fire Department was removed from the agenda at the April 18th meeting’s outset.

As most-recently explained in our story on the board’s April 11 work session discussion, with the generally estimated 25% to 40% upwards real estate reassessments, the board must “equalize” it’s Real Estate Tax rate to within one-percent of last year’s total revenue or advertise its adjusted rate as a tax increase. Last year’s pre-reassessment Real Estate Tax rate was 65.5-cents per $100 of assessed value.

Numbers, more numbers – Budget variables occupied much of the county supervisors attention at their April 18 meeting as tax bills are poised to go out in May, with first payments now due by June 22 to not incur a late fee or interest. With many cost issues still on the table, Jay Butler, below in file photo, suggested the supervisors keep the option of increasing real estate tax revenue as much as $1.3 million above last year’s level at a 51-cent rate compared to the ‘revenue neutral’ rate of 49 cents. Despite cost questions hanging, the board, including Butler, decided against allowing passage of anything above the ‘revenue neutral’ 49-cent rate.

Prior to a decision on what real estate tax rate to advertise, Happy Creek Supervisor Jay Butler raised the option of advertising a rate of 51 cents per $100 of assessed value to leave open the possibility of increasing revenue for county government operations by as much as $1.3-million at two cents above the revenue neutral number. From numbers discussed, each half-cent of real estate tax rate equals about $326,000 of revenue. That two-cent hike is enough, one notices, to cover the cost of the Pumper unit, which will come back to the board for a decision on May 2.

Butler noted the board wouldn’t have to approve the advertised rate, in fact, could approve the 49-cent rate or any number lower than the advertised rate without the necessity of an additional public hearing. A second public hearing would only be required if a board majority wanted to approve a rate higher than the advertised rate.

Don’t scare them, Ed – County Administrator Ed Daley pointed out that if a higher, non-revenue neutral real estate tax rate was advertised for public hearing, the public present for that May 2 public hearing might be in a bad mood at the thought of the County’s first tax hike in four years, coincidentally an election year.

Not that Butler’s colleagues needed alarm bells to be pushed regarding tax hikes, County Administrator Ed Daley pushed some by observing that the public that showed up for the tax rate-resetting public hearing slated for May 2nd would come anticipating board support for the advertised rate, leading to perhaps negative comments on the advertised revenue-increasing rate. Alarm bells pushed, even Butler voted with the majority in approving advertisement of the 49-cent “revenue neutral”, minus the $41,000 “drop in the (municipal budget) bucket” real estate tax rate.

Also approved Tuesday evening due to the pending late approval of a tax rate and resulting lag time in getting bills mailed out, was a deferment of the normal late payment-and-interest deadline of June 5, to June 22. It was noted that the County tax bills will still show the normal June 5 late payment deadline. However, the County is trying to get the word out for citizens to be aware they have until June 22 to not be deemed late on the first of two installments of county tax payments.

Newly installed Discover Front Royal Chairman Clare Schmitt introduced herself to the county board during Public Comments. Despite recent setbacks, Schmitt expressed confidence the county and town governments could get back on the same page to work with Discover Front Royal for a joint municipal effort toward tourism promotion on both sides of the town/county line.

Near the meeting’s outset, the only Public Comments speaker to non-agenda items was Clare Schmitt. Schmitt introduced herself as the newly appointed chairman of the Discover Front Royal 501-C3 entity initially jointly created by the town and county governments to oversee community tourism promotional initiatives. Despite a derailment of those joint efforts due to unilateral actions primarily taken on the Town side of the equation over past years, Schmitt said she was confident that unified governmental front could be re-established with Discover Front Royal at its point, as at least public comments from both sides indicate there is a desire to accomplish.

The board approved its Consent Agenda after removing a number of items for additional discussion, and as noted above, removing one — purchase of the new pumper unit for South Warren Volunteer Fire Department — from the meeting agenda.

Consent Agenda approved items included: 1/ Additional Request of Warren County Public Schools; 2/ 2023-2024 United Health care Insurance Renewal; 3/Summer Internships; 4/FOIA Officer(s); 5/ Authorization to Advertise Public Hearing – Building Inspection Fees; 6/ Authorization to Advertise Public Hearing – Planning, Zoning, and 7/ GIS Department Fees; 8/ Approval of Generator Installation at 465 West 15th Street VA Department of Health.

Approved after Additional Discussion were: 1/ Authorization to Advertise – Ordinance Delaying Penalties and Interest Upon Certain Local Taxes (to June 22 from June 5); 2/ Award Recommendations – Audit Services to current audit contractor Robinson, Farmer, Cox Associates; 3/ Award Recommendations – DSS Vehicle; 4/ Tax Relief for the Elderly (Option #2); 5/ Adoption of Resolution to Set Percentage of Tax Relief for Personal Property (Motor Vehicles) for 2023 Tax Year;

Approved as individual New Business items were: 6/ Adoption of Resolution Approving Receipt and Disbursement of Virginia Outdoors Foundation (VOF) Preservation Trust Fund etc.; 7/ Purchase of Real Property Located at 4561 John Marshall Hwy. (Fire Station #4) and Certain Tangible Personal Property; 8/ Authorization to Advertise Public Hearing FY23-24 Proposed Tax Rates; 9/ Addition of Human Resources Associate Position, Job Description and Grade Placement.

Items moved for a later discussion: 1/ Purchase of 2026 Pierce Enforcer Pumper from Atlantic Emergency Solutions (to May 2nd); 2/ Citizen Appointment to the Front Royal/Warren County Joint Tow Board (to liaison committee meeting this Thursday)

After County Administrator Daley thanked the board for moving as many action items forward as it had that evening, the meeting was adjourned at 8:32 p.m.