Goochland’s Board of Supervisors hosted a public hearing Tuesday night on a wide range of issues affecting the county, including its recommended county and school budgets, capital improvement plan, tax rate, and water and sewer charges.

Revenue generated from higher rates would prevent the county from making deeper cuts to a County Administrator Rebecca Dickson’s revised recommended budget for 2011, one that, at $40.8 million, is 6.3 percent lower than the current year’s plan.

Contributing to the budget’s decline is the county’s falling revenues: Real estate taxes, which are the county’s largest source of income, fell 8.2 percent in 2010 and are anticipated to fall an additional four or 5 percent in 2011.  There is little to no growth expected in the county’s other sources of income, such as personal property taxes, recordation taxes, business license taxes, building permits and investment income.

The Board of Supervisors have advertised four options to balance the budget: Further reductions, two- or –three cent tax rate increases combined with the use of fund balance, or a 4-cent tax rate increase.

Dickson, who is recommending a 4-cent tax increase, said changes to the state’s retirement contributions have restored most compensation board distributions to localities, including $310,000 for Goochland.

Dickson is proposing that the county use $282,000 of the $310,000 received from the state to restore some cuts that had been made in the Feb. 23 proposed budget.

If supervisors pass a 4-cent tax rate increase, then, in the recommended budget, furlough days for public safety departments would be eliminated, and some reductions to the sheriff’s office and the fire and rescue and animal control departments would be restored.

“No one likes to pay more taxes but sometimes it is warranted,” said Goochland resident Dan Boatwright. “We as citizens need o know the services are there if an emergency arises—the safety of my family and friends is worth paying the additional four cents.”

Jeff Harris agreed, citing education as a reason to increase tax revenue.

“I have never asked for higher taxes but tonight I am,” said Harris. “This is not about a tea party for me, I just want good schools.”

Several others disagreed, saying that higher taxes during a troubled economy would present economic hardships for county residents.

“ I oppose any taxes at this time because of the economic status of the citizens,” said Wendy Hobbs. “We’re not getting raises and we can’t afford any more expenses than we have.”

Dickson said that if assessed values decline at the expected rate of four percent next year, then a second real estate tax rate increase may be needed in April 2011 if the county chooses to raise taxes by only two cents this year.

Utilities

Supervisors have also advertised increased utility rates for both the county and the Tuckahoe Creek Service District. 

The county’s general fund has been supporting the water and sewer systems, a trend which is projected to continue for the next few years.

Dickson has presented three utilities options to the county, and is recommending Option 1: 25 percent rate increases for the county, and a 15 percent rate increase for TCSD water and a 45 percent increase for TCSD sewer.

This option would provide enough revenue that by 2015 county and TCSD utilities will no longer rely on general fund for support.

Supervisors have also advertised a possible four cent increase in the additional tax rate for Tuckahoe Creek Service District users and an increase in connection fees for residential water and sewer customers.

The current tax rate is 23 cents per $100 of assessed value.

Connection fee increases for residential water would rise from $3000 to $4000, and connection fee increases for residential sewer, from $4000 to $6000. These fees are the same for both county and TCSD customers.

Higher rates in the TCSD would help pay off the county’s debt for the $63 million water and sewer system. Right now, neither the principal nor the interest on $27.54 million capital appreciation bonds is being paid, and incremental debt service starts in 2012.

School budget

Goochland schools recently announced category revisions in their adopted budget for next year.

These changes do not affect the bottom line, which is a $24 million plan that is almost seven percent less than the current year’s $26 million budget.

Several members from the Goochland Education Parents Association rose to protest the approved school budget, which they believe retains administration jobs at the expense of teaching positions.

The group also expressed concerns about budget categories that are not fully explained.

“We ask you to require more detail in school board budget prior to approval, to ensure adequate accounting of county funds,” said GEPA Vice-Chair Jane Christie.

The board asked Dickson to request that the school board provide a more detailed budget for public review.

The Board of Supervisors is scheduled to make its final decisions regarding the budget on April 6.