PWC Leaders Set Advertised Tax Rate; Schools Worried

WOODBRIDGE, Va. — On their fifth try Tuesday, Prince William officials approved a hotly debated new property tax rate to advertise to the public. Now the rate will be debated once more at a public hearing scheduled in April.

Here’s more in a press release from Prince William County:

The Board of County Supervisors voted 5-3 to advertise a real estate tax rate of $1.196 per $100 of assessed value for the FY 2014 Budget. The advertised rate was based on the desire of the Board to reduce the tax rate and reduce the planned 4% annual tax bill growth from the Five Year Plan.

It took five votes to get to the $1.196 advertised rate, which was motioned by Occoquan District Supervisor Mike May and seconded by Coles District Supervisor Marty Nohe. It passed with their support, as well as affirming votes from Supervisors Maureen Caddigan, John Jenkins, and Frank Principi.

Instead of a 4 % tax bill increase, the advertised tax rate means an tax bill increase of 3.57 %.

Nohe said it was important for officials to decide on an advertised tax rate and to then let the public comment on the matter.

“I don’t plan to support a four percent tax increase this year, but we need to advertise this tax rate, get the public hearing scheduled, and let the public comment on this, and get this process moving,” said Nohe.

That public hearing is scheduled to take place at 7:30 p.m. Tuesday, April 9 at the McCoart Building at the Prince William County Government Center on Prince William Parkway in Woodbridge.

County leaders say just because the tax rate is advertised does not mean it’s a done deal.

The advertised rate is not a final tax rate for the FY2014 budget. Rather, it allows discussion and establishes the upper limit by which the Board may adopt a final tax rate. On April 23, 2013, the Board will adopt a final real estate tax rate, budget and Capital Improvement Plan (CIP). That rate for the final budget is not permitted to be any higher than the advertised rate of $1.196 per $100 of assessed value established today. However, it may be adopted at a lower rate than the advertised rate.

If the advertised rate passes as is, the average tax bill for property owners will be about $3,435, excluding the fire levy, said Prince William County spokesman Jason Grant.

The advertised tax rate comes following a presentation from County Executive Melissa Peacor last week that called for an average tax bill increase of 4 percent, and an overall budget of $969.7 million. Because the tax rate is lower than what Peacor proposed a week ago, and lower than what Prince William County schools officials expected, educators may be impacted.

Here’s more a in a press release from Prince William County Public Schools:

The Board of County Supervisors (BOCS) voted Tuesday to advertise a county tax rate lower than required to support Superintendent Walt’s proposed 2013-14 budget.

The decision means an estimated loss of at least $1.3 million in county revenue to the School Division next year, and roughly $22 million over five years—more exact estimates will follow shortly.

The reduction requires cuts in the proposed budget and shrinks the plan ultimately approved by the Prince William County School Board.

As originally proposed, the Superintendent’s proposal:

• Maintained Educational Programs & Services

• Anticipated nearly 2,100 new students

• Funded extensive school construction, expansion, and repairs

• Provided employee raises—with no anticipated layoffs

• Faced an uncertain fate due to county/state funding questions.

Some uncertainty remains, as more reductions are possible. By law, the BOCS advertised tax rate cannot be increased; but it can be lowered when Supervisors adopt a final tax package in approximately ten weeks.

The advertised rate (though lower than this year’s) will cause tax bills to rise by an average 3.5% in contrast with the 4% increase included in the county’s approved five-year plan. At BOCS direction, revenue generated by the higher tax bill was the foundation for the Superintendent’s budget proposal.

WIth lower revenues, overall per pupil spending and other expenditures detailed in the proposed budget will decline.