County board should cut property tax rate

Dear Editor,

Yes, there will no doubt be lean years ahead for all local governments, including Chesterfield County. The governor has proposed two reductions in state spending for the current fiscal year in the last three months. Both his proposed budget and those of the House and Senate for the 2009 and 2010 fiscal years reflect changes in state policy and financing that will, inevitably, trickle down to the local levels.

The factors noted by Budget Director Allan Carmody reflect the realities of the economy and the failure of the prior supervisors to listen to the voices of the citizenry regarding the need for more "balance" in residential and commercial development in Chesterfield. This failure is what has created the imbalance in and reliance on residential real estate revenues to fund county operations.

Had the board not intervened in the mid- 1990s to micromanage the development of the Watkins Centre, a much-needed development incorporating both commercial and residential development, much of the sales tax revenue resulting from shoppers "exported" from Chesterfield to Henrico County would have been encouraged to stay in Chesterfield, rather than travel to Henrico and shop at Innsbrook and Short Pump.

However, there are two sides to a budget equation: revenues and expenses. This board must require the administration and the school board to reduce government spending or, at a minimum, keep the lid on the growth of county spending. While the [Chesterfield Education Association] and others associated with [county schools] will argue "every penny reduction in the real estate tax rate will cut $2.2 million in school funding," I would counter that every penny paid in real estate taxes comes from the pockets and hard-earned money of the citizens of Chesterfield County. How many citizens realized an increase in their salaries of 11 percent in 2007? In the last two years, we have seen our real estate tax assessment increase over 34 percent. In 2008 alone, the value of the land, a mere 5-plus acres, increased over 40 percent from 2007.

The board of supervisors and school board must find ways to minimize the increase in county spending. The board must reduce the real estate tax rate in 2008 by at least 5 cents to $.92/$100 of assessed value. Such a "reduction" in the tax rate will still yield the county an increase in real estate tax revenues of approximately 8 percent.

If Chesterfield County cannot survive on an increase in real estate revenues of 8 percent, then we apparently need more than a new board of supervisors, we also need a new administration that can think beyond the boundaries of its past. Yes, much of the wailing and gnashing of teeth is caused by state spending cuts that trickle down to local governments. However, welcome to the big leagues. It's time for tough decisions!

Bob Herndon

Chesterfield