Property values in Chesterfield County are down nearly 4 percent from last year, meaning county leaders would need to approve a 5-cent tax-rate increase to hold real estate revenue steady for the next fiscal year.
Raising the rate to a revenue-neutral level to help offset deep cuts was proposed by schools Superintendent Marcus J. Newsome in a letter last week to the county administrator on behalf of the School Board. The school system is facing a projected shortfall of $40 million to $50 million for the 2011 budget. The county's projected shortfall is about $30 million.
Under the state's methodology, which does not take into account new construction, a 6 cent increase is necessary to reach a revenue-neutral level.
Board of Supervisors Chairman Daniel A. Gecker said while a tax-rate increase will undoubtedly be considered this year, no amount has been discussed. But he added that anything short of raising the rate from the current 95 cents per $100 of assessed value to $1 would require significant cuts.
"Anything under a buck means we'll run the government on less money than we did the year before," he said. "And frankly, even that's misleading, given the decline in other tax sources."
Gecker said that only when both the proposed school and county budgets had been presented would supervisors get a clearer picture of what needed to be done.
"All of us on the board want to see a stronger school system, which is different than saying we want to fund every dollar they ask for," he said. "Is it possible we'll raise the rate? Sure. Is it just as possible that we'll leave it? Sure. You just don't know until you see the impact of the dollars on the systems."
Assessment data showed home values in the county dropped $1.3 billion, or 4.8 percent, while commercial fell $418 million, or 6.4 percent.
The 4 percent decline in total taxable value would have been more than 5 percent without $400 million in new construction, said County Assessor Jonathan P. Davis.
"It's about what I expected," adding that upscale subdivisions and higher-priced homes fared worst.
About 93 percent of county homes experienced reductions, while only 3 percent increased in value and 4 percent remained unchanged.
The median assessed home value dropped from $216,800 to $207,000, and the median sales price for homes dipped from $239,278 to $223,020.
Contact Wesley P. Hester at (804) 649-6976 or whester@timesdispatch.com.
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