Divided Council approves advertisement of flat tax rates for coming year

After extensive internal debate Monday night, a divided Front Royal Town Council approved advertisement of flat real-estate and personal-property tax rates for the coming fiscal year.  A second vote will be necessary to finalize the FY 2018 tax rates.

And while the vote to advertise the flat tax rates for the coming year was unanimous, that consensus came only after an amended motion to advertise a one-cent Real Estate Tax increase, from 13 cents per $100 of value to 14 cents, failed by a 4-2 margin.

Both Vice Mayor Eugene Tewalt and William Sealock urged Council to approve a small increase now, to avoid the potential of a larger, one-year increase down the road.  That increase is likely to become necessary due to the anticipated $9-million dollar cost of a new police headquarters, Council’s elder members argued.

John Connolly appeared to voice the majority consensus when he said it “felt wrong” to take citizens’ money now, for expenses that were NOT yet entirely on the table.

Gene Tewalt, left, listens along with Mayor Hollis Tharpe as John Connolly states his case against a tax increase for FY 2018. Photos/Roger Bianchini

However Council appeared to bring that expense closer to the table, when it later authorized Moseley Architect’s to seek construction bids on the police station based on their $9.3-million design.  Only Bébhinn Egger opposed approving bids based on Moseley’s existing design.

“I still think this is too much money for a community of this size, Egger said of the price and design of a new police headquarters proposed to accommodate the needs of the town police department for at least 40 years into the future.

Initially it appeared that Sealock and Tewalt would only ask for a half-cent increase, with all the estimated $55,000 of revenue provided committed to the police station project.  But in the end, first Tewalt then Sealock opted for the one-cent increase with half the $110,000 of revenue committed to the police station.

There was some confusion about Council’s ability to commit the tax revenue to a specific future need.  Responding a question, Town Attorney Doug Napier said Council could commit funds for a future use, but a future council could overturn that decision.  That led Tewalt to withdraw his motion for the increase. But after further discussion, Sealock re-made Tewalt’s motion.  The vice mayor then seconded Sealock’s motion but the two could not sway any of council’s younger members to the need for the $55,000 of additional revenue for the police station in the coming fiscal year.

Connolly also noted the Town was having to pay back $100,000 per year on an internal $400,000 loan from its General Fund that Council approved last year for the Criser Road Trail project, but said he thought Council could balance the coming budget without a tax increase.

“I’m all for intelligent funding of future projects, but that is most likely a permanent increase,” Connolly said of any tax hike made this year, adding, “I don’t see any justification for this kind of a hike at this time.”

Vice-Mayor Gene Tewalt shakes his father-in-law Philip Funk’s hand after the 97-year-old was presented with a plaque by Mayor Tharpe marking his years of service to the town and his recent retirement.

Three of his colleagues agreed.

In a less contentious item, at the meeting’s outset Mayor Hollis Tharpe and Vice-Mayor Tewalt presented Philip E. Funk with a plaque and photo acknowledging his years of service to the town and his recent retirement.  That retirement was previously reported on here by Malcolm Barr Sr.  Funk is Tewalt’s wife Juanita’s father.