Editorial
Given the inflationary times we live in, due primarily to skyrocketing energy prices caused by the war in Iran, it’s remarkable that our local governments are managing to hold the line on taxes. None of the three proposed local budgets call for raising taxes in the upcoming fiscal year.
Rockbridge County’s proposed budget keeps the real estate tax rate at 61 cents per $100 value and the personal property tax rate at $4.25. In Lexington, the proposed real estate tax rate would remain at 92 cents and the personal property tax rate at $4.25. Buena Vista’s proposed budget leaves the real estate tax rate at 98 cents and the personal property tax rate at $5.85.
Not having to raise the real estate tax rate in Buena Vista, in particular, is quite a feat, given that City Council’s budget and finance committee was staring at a $1.9 million gap between planned spending and projected revenues back when the budget planning process began in mid-March. Just six weeks later, the city’s proposed budget is balanced without having to resort to a tax increase.
It is true that certain fees in Buena Vista are going up. The garbage collection fees are rising by $2 monthly for residential customers and $4 weekly for commercial customers. Camping and swimming fees are climbing at Glen Maury Park. Sewer rates are rising, in anticipation of major upgrades being made to the city’s wastewater treatment plant.
In Lexington, a substantial amount of money is being taken from reserves to pay for much-needed capital improvements. The same is true in the county. Both jurisdictions have been saving up for long-planned projects. Buena Vista too is having to make plans to pay for not only an upgrade to the WWTP but for an addition to Parry McCluer High School to accommodate the city’s middle school students who are leaving a centuryold building.
Complicating matters for the local governments is that the state has yet to approve a budget. The holdup is a difference of opinion between budget planners in the House of Delegates and the state Senate over whether to end a tax exemption for data centers. Because of this dispute, the General Assembly adjourned its regular session without a budget in March and was unable to resolve the budgetary disagreement during the veto session last week.
Local governments, therefore, are having to approve their budgets not knowing exactly what state aid they’re getting. This is especially problematic with regards to funding for the schools, a substantial amount of which comes from the state. Localities are having to use the latest, best available information from the state to finalize their budgets. They may be having to amend their budgets later, once this information becomes available.
Even so, our local governments are to be commended for making plans to make do without resorting to tax hikes. Times are tough all over so local taxpayers are surely appreciative of not having to pay higher tax bills in the upcoming year.
