Town of [Town Name] Real Estate Tax Rates and FY 2024 Budget Summary
The public hearing on the 2023 Tax Rates and FY 2024 Schedule of Fees highlighted the importance of real estate taxes as the major revenue source for the Town's General Fund. The proposed tax rate of 16.25 per $100 assessed for FY 2024 was discussed, along with the impact on residential units and tax bills. The equalized tax rates and user fees were emphasized as key considerations for maintaining revenue consistency. Detailed comparisons of tax bills at varying rates were presented, showcasing the potential financial impacts on different housing types. The analysis provides insights into the Town's budget planning process and the residents' tax obligations.
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Presentation Transcript
2023 Tax Rates and FY 2024 Schedule of Fees PUBLIC HEARING March 23, 2023 Town Manager Jason Cournoyer
Real Estate Taxes Real Estate Taxes remains the single largest revenue source of the General Fund. Virginia Code requires a Public Hearing on the Budget as well as the Tax Rate, including a notification 30 days in advance of adoption of the Effective Tax Rate Increase which is the impact to the tax bill as a result of the proposed tax rate. The FY 2024 Budget is based on a rate of 16.25 per $100 assessed; however, the 30-notification advertisement included a rate of 17.25 per $100 assessed to allow for Town Council flexibility in the budget adoption process. March 23, 2023
Real Estate Taxes One of the Town Council s recurring tenets is to maintain equalized tax rates and established user fees. Equalized tax rates are intended to collect the SAME amount of revenue from the SAME parcels in the following year. Real estate property taxes are collected semi-annually, half in June and half in December. The 2023 tax rate impacts the current fiscal year, as tax year 2023 (calendar year) overlaps both Fiscal Year 2023 (June 2023 payment) and Fiscal Year 2024 (December 2023 payment). March 23, 2023
Real Estate Tax Rate The projected value per 1 of Real Estate Tax Rate is $50,193. The Town s977 residential units make up 97% of the 1,012 total taxable parcels in the Town. Residential re-evaluation for 2023 increased 11.3% overall over 2022 for an average assessment of $484,570, or an increase of $50,493. The Proposed Fiscal Year 2024 General Fund budget is based on an unchanged real estate tax rate of 16.25 for the proposed operating and debt costs. The calculated residential equalized tax rate is 14.6 which comparatively is a decrease of $83,100 in expected FY 2024 General Fund revenue compared to the proposed tax rate of $16.25 . March 23, 2023
Tax Bill Comparisons for Varying Tax Rates CURRENT TAX RATE 16.25 CURRENT TAX RATE 16.25 EQUALIZED TAX RATE 14.6 2022 2023 Variance 2023 Variance Average Assessment Average Tax Bill Average Assessment Average Tax Bill Average Assessment Average Tax Bill Housing Type Annual Monthly Annual Monthly Single Family Detached $490,004 $796.26 $547,095 $889.03 $92.77 $7.73 $547,095 $798.76 $2.50 $0.21 Townhome $337,321 $548.15 $367,517 $597.21 $49.07 $4.09 $367,517 $536.57 ($11.57) ($0.96) All Residential $ 434,778 $ 706.51 $484,570 $ 787.43 $ 80.91 $ 6.74 $ 484,570 $ 707.47 $ 0.96 $ 0.08 The proposed tax rate, on average, results in an annual tax bill $80.91, or just under $6.75 per month more compared to the 2022 tax bills and the equalized tax rate. March 23, 2023
Water and Sewer User Rate Bill Comparison Average Monthly Residential Usage The Proposed Budget includes a 3% rate increase for water and sewer user rates. The average monthly use is 3,850 gallons. The proposed rate increase would result in a monthly bill increase of $3.66, or from $93.91 to $97.57. FY 2023 Rates Charges based on FY 2023 Rates Proposed FY 2024 Rates Charges based on Proposed Rates Charge Variance Minimum rate 0-2,000 Gallons Water Charges 1,850 above Min. Water Charges 1,850 above Min. Total Monthly Billed $49.20 $49.20 $50.68 $50.68 $1.48 $9.51 per 1,000 gallons $9.80 per 1,000 gallons $17.59 $18.13 $0.54 $14.66 per 1,000 gallons $15.55 per 1,000 gallons $27.12 $28.77 $1.65 $93.91 $97.57 $3.66 March 23, 2023
Frye Court Service Tax District Established in April 2003 as mechanism for funding the inspection, maintenance, repair and replacement needs of the Pump Station on Frye Court In 2019, the district was expanded by the Lovettsville Village Community. There are currently 24 parcels included in the service district. Annual service tax rate levied on the land value of the parcels. The rate, since 2019, is 27.5 per $100 assessed value. There has been no adjustment to the rate since 2019. Proposed Budget includes a 27.5 tax rate March 9, 2023
Other Utilities Fund Fees In addition to water and sewer user rate increasing by 3%, other fees are recommended to increase in order to keep up with inflationary impacts on operating and capital costs. Connection Fee is proposed to increase by 3%. Water and Sewer Availability Fees are proposed to increase by 5.6% which equates to the metropolitan area CPI-U (Oct. 2021-2022). March 23, 2023
Questions March 23, 2023
