GILES COUNTY BOARD OF SUPERVISORS

REAL ESTATE TAX RATE HEARINGAPRIL 21, 2005

HISTORY• JANUARY 2005 REASSESSMENT COMPLETED

INDICATED A 42.4% INCREASE IN REAL ESTATE VALUES SINCE THE LAST REASSESSMENT IN 1999.

• THIS REFLECTS A 6% AVERAGE ANNUAL INCREASE

• THE CODE OF VA REQUIRES THAT ANY INCREASE AS A RESULT OF REASSESSMENT IN EXCESS OF 1% REQUIRES A PUBLIC HEARING AND ADVERTISEMENT

THE NOMINAL RATE• The Code of Virginia also specifically requires that

the County advertise a nominal rate or “lowered rate”• The nominal rate was advertised at $0.505 per $100.

However, as a result of the reassessment, more people placed their property in land use, and the land use rates decreased this year resulting in a $200,000 loss of revenue which requires an increase of $0.023 to get back to even. This would have provided a nominal rate of $0.53 per $100 decreasing the increase to $0.06 per $100. But, the Code does not allow any loss of revenues to be calculated into the nominal rate.

THE TAX INCREASE• Due to the need for additional

revenue, the Board of Supervisors have proposed a tax rate of $0.59 per $100 of assessed value.

• The total budget change from FY 2004-2005 to FY 2005-2006 is $5,497,407.00 or 14%

Where is the money going?• Capital Expenditures accounts for the majority

of these increased costs. Total increases for capital items is $4,762,323 or 87% of the increase.

• Of this total only $35,000 is unfunded by State or Federal Sources.

• Approximately $1,800,000 of this total is loan money for infrastructure projects.

Where is the money going?• The School Board increase accounts for

$320,000• $219,000 increase as a result of utilities, fuels,

and insurance.• $195,000 increase as a result of Social

Services, Community Services, Fairview Home, and Comprehensive Services

• $98,000 increase as a result of State mandated, but unfunded raises.

Snapshot of the County BudgetSchools $22,911,562 71%

Capital Projects

$11,319,894 N/A

County Ops. $9,546,332 29%

Total Budget $43,777,788

What does the increase mean to the tax payer.• Assuming that you had a house and property

that was valued at $100,000 six years ago, the reassessment valued it at $142,400.

• Under the old rate structure you would have paid ($100,000/100)x$0.72= $720

• Under the proposed rate structure you would pay ($142,400/100) x $0.59=$840

Where do we go from here?• The Board of Supervisors will receive

comments tonight regarding the proposed rate increase.

• The Board will set another meeting date tonight at least seven days from today to set the rate. The rates along with the new real estate values will be incorporated in the calculations for real estate taxes due in June of this year.