Local Government
Council reconsiders its initial flat Real Estate Tax rate vote
The Front Royal Town Council appears poised to change course on its initial vote to set a flat Real Estate Tax rate for the coming fiscal year. After extensive debate on March 13, an amendment offered by William Sealock and Gene Tewalt to advertise a 1-cent increase in the Real Estate Tax rate from 13 to 14 cents per $100 of value, failed by a 4-2 margin. And while Tewalt and Sealock joined their colleagues in a unanimous first vote to authorize advertisement of a flat tax rate, they made it clear it was only because some tax rate had to be approved for the coming fiscal year.
However, during a March 20 work session it appeared the four-vote majority that shot down the 1-cent increase a week earlier was perhaps fracturing. Some second thoughts may have been prompted by a “History of the Real Estate Tax Rate” chart prepared by Finance Director B.J. Wilson.
The bottom line(s) of that “History” was an estimated total cost of $14.9 million on four pending projects with only $553,796 currently committed to those projects. THAT bottom line supported Sealock and Tewalt’s arguments that you can’t keep committing to expenditures without beginning to provide additional revenue, unless you are willing to wait and hit citizens with one HUGE tax increase in a given year when the bills come due.
The projects on the table include the oft-discussed $9.3-million for a new police headquarters; as well as $2.5 million each on West Main Street extended to service the Royal Phoenix Business Park and Phase 2 of Happy Creek Road improvements.

It’s just a picture, how expensive could it be? Photos/Roger Bianchini
Also, beginning in the current fiscal year were payments to the EDA and County on the Town’s portion of Leach’s Run Parkway funding. The north-south connector road will link Route 55 East (John Marshall Highway) and Happy Creek Road on the town’s east side. The new parkway’s intersection with Happy Creek Road is very near the new middle school, adding some urgency to those Phase Two Happy Creek Road improvements.
The staff recommendation was for a half-cent increase to the tax rate this year, which would produce an additional $55,000 in FY 2018 revenue.
Having listened to a summary of the Finance Department chart, Tewalt reiterated what he has been telling his newer and younger colleagues for some time – “Don’t think that money grows on trees.”
Tewalt estimated that paying debt service on all the towns’ coming capital improvement projects could require as much as a seven-cent Real Estate Tax increase in one year if the council majority sticks to its guns to put off increasing revenue until the bills come due.
“We need realistic numbers, not pie in the sky numbers,” Sealock said of efforts to balance the town budget. Sealock suggested starting the budget process earlier, having preliminary numbers in front of council by January 15. Finance Director Wilson said while some numbers could be presented that early, others would be preliminary estimates due to factors beyond the town’s control.
The primary proponent of the wait-to-tax-until-the-bills-come-due philosophy, John Connolly; as well as Bébhinn Egger who has opposed the primary expense of building a new police station from the outset, remained uncommitted to a change of direction. However, others sought answers or ways to minimize the coming debt with a minimal increase this year.

Man in the middle – on March 13, John Connolly second from right, explained why not taxing citizens for future expenses until those expenses come do was a good idea. With more detailed financial information, is his majority fracturing?
Chris Morrison wondered if a projected 20-year debt service term on loans could be stretched out to 40 years (the length of service of some of the improvements) to ease the coming annual debt service.
Jacob Meza said knowing precisely what the Town’s debt service would be over the long haul, and whether it could be stretched out from the projected 20-year loan term, would make a difference in how he voted on any proposed tax increase this year.
The discussion indicated the potential of acquiring a majority for a half-cent increase, though a one-cent increase could again be offered. Council will revisit its vote to authorize advertisement of a tax rate for FY 2018 on March 27.
