Supervisors juggle budget numbers and taxing variables as await approval of a State Budget

At a Special Meeting Tuesday, May 10, the Warren County Board of Supervisors were briefed by staff on a trio of tax issues tied to the Fiscal Year-2022/23 Budget. Those included “Tangible Personal Property Tax Rates for the Calendar year 2022”; a Resolution of support for a 34% Tax Relief rate for Personal Property Taxes driven (pun intended) up by an unprecedented hike in used car values due to supply chain issues on new vehicles; and the setting of a public hearing on an ordinance amendment to “Delay Penalties and Interest Upon Certain Local Taxes”.

Finance Director Matt Robertson presented a general Tangible Personal Property Tax Rate of $3.80 per $100 of assessed value; for Volunteer Fire & Rescue Squad members – $1.90 per $100 of assessed value; for Business Furniture & Equipment – $4.00 per $100 of assessed value; and for Aircraft – 75-cents per $100 of assessed value. Robertson described the rates as an approximate 20% revenue decrease in the PP Tax Rate forced into the budget this year to compensate for the increased valuations being experienced. On a motion by Shenandoah District Supervisor Walt Mabe the board unanimously approved the rates as presented.

County Finance Director Matt Robertson leads the board thru the hoops of Personal Property Tax variables for FY-2023. Below, flanked by Asst. Co. Attorney Caitlin Jordan, County Administrator Ed Daley bemoans consequences of delays in approval of a state budget. Royal Examiner Photos by Roger Bianchini

Based on numbers assembled by Commissioner of the Revenue Sherry Sours, County Administrator Ed Daley presented a recommended Tax Relief Rate for motor vehicle owners in the county at 34-cents for vehicles valued at $1,001 to $20,000. Vehicles valued at over $20,000 would get the 34-cent relief only on the first $20,000 of value. Vehicles valued at under $1,000 are eligible for a 100% relief rate. It was explained to the board that the annual relief rate on vehicles set locally is tied to the “no Car Tax” legislation adopted, if not fully implemented, by the Virginia General Assembly two years ago. Daley explained that the State would be compensating the County for $4.5 million of the relief based on a 35-cent relief rate, while the County will have to absorb an additional $200,000 required at the 34-cent rate proposed by staff. On a motion by Happy Creek Supervisor Jay Butler, the board unanimously approved the 34-cent relief rate.

Questions answered, at least as well as they can be without final state budget numbers, Happy Creek Supervisor Jay Butler made the motion to approve a 34-cent Personal Property Tax Relief rate tho it means the County will absorb $200,000 of a $4.7 million price tag on that relief.

The board also approved authorization to advertise for public hearing on May 24, an ordinance amendment to delay penalties and interest on certain tax payments until June 25. The county administrator explained by code taxes come due June 5. However, the County is delaying a final budget approval awaiting a decision in Richmond on final state budget numbers. So, with the whole process set back due to the General Assembly’s delay in coming up with approval of their final budget, the county is pushing back its normal deadline this year.

On a motion by North River District Supervisor Delores Oates, the board unanimously authorized advertisement of the public hearing on the tax deadline ordinance amendment. Daley noted the extension as currently worded applied only to Personal Property Taxes, but that staff was looking at adding Real Estate Taxes to the extended deadline as well prior to the anticipated May 24 vote on the ordinance amendment.

Work Session

Following that 6 PM Special Meeting the board convened to a work session to hear a series of presentations by staff and one outside organization, the MLB-developmental-league-associated Valley League Front Royal Cardinals. Introduced by Parks & Recreation Director Dan Lenz, Cards President Donna Settle and Vice-President Alex Bigles, the latter who handled the bulk of a PowerPoint presentation on the beer sale initiative, explained their plan to add closely monitored beer sales to concessions available at the college-level player games. They noted beer sales would be done at a separate stand than general concessions and safeguards to prevent overconsumption or impaired driving leaving the stadium would be in place.

With the supervisors seeking input on the Town’s perspective, Bigles worried that a needed timely decision by the County would be negatively impacted by the Town’s refusal to schedule the Card reps for even a town council work session discussion of the initiative. The Town’s rationale apparently being they were not directly involved in County Parks & Rec property decisions or ABC licensing.

As Cards Board President Donna Settle listens, FR Cardinals Vice-President Alex Bigles pleads his team’s case to be allowed to increase concession revenues through the sale of beer at Bing Crosby Stadium home games. No beer is planned for sale or storage at youth league or high school games, and extensive precautions to prevent alcohol abuse or impaired driving leaving the stadium will be applied.

The Cardinal representatives were followed to the podium by County IT Director Todd Jones, whose PowerPoint presentation was described as a “Show-and-Tell” on the department’s status and planned reviews and upgrades to equipment and processes, including enhanced system security and personnel development.

Following Jones was Sheriff Mark Butler, who jumped on the PowerPoint bandwagon with an overview of his department’s personnel and organizational makeup and goals, as well as an update on the newest proposed location for a departmental training area and auxiliary storage facility. That 16.32-acre space is located off Catlett Mountain Road.

At times Butler was accompanied by County EDA Director Joe Petty and Public Works Director Mike Berry in covering various logistical aspects of development of the parcel and help answer questions about former recommended sites versus the current one.

See all these presentations, PowerPoints, discussions, and votes in the County video.