Campbell Co. approves real estate tax rate hike

By Sarah Watson
Lynchburg News & Advance
Published: May 20, 2008

RUSTBURG — Campbell County supervisors narrowly voted to increase the real estate tax rate by 3 cents Monday.

The 4-3 vote to increase the tax rate from 43 to 46 cents per $100 came after a contentious debate about whether the county should dip into its cash reserves to cover a deficit caused by state money reductions and dramatic increases in state-mandated social services programs.

The extra revenue will also pay for debt payments on a collective $34 million for three major capital improvement projects. Supervisors also adopted the fiscal year 2009 budget 4-3, which was balanced by the tax increase.

“It’s a matter of whether you want to take that risk (of reducing cash reserves.) Once you start taking the undesignated fund to balance the budget, you open that door,” said Timberlake District Supervisor Charles Falwell, who voted for the tax increase.

“I’m looking at history. We have never failed in Campbell County to take any sizeable amount of the undesignated fund,” said Seneca District supervisor Hugh Rosser, who voted against the increase. “I’m not going to gouge my tax payers just to have a little surplus and we never use it. We don’t even make good interest on it.”

In a counter to the proposed tax rate, Brookneal District Supervisor J.D. Puckett proposed that the county increase taxes by one cent and slash several proposed positions, a move supported by Rosser and Sunburst District Supervisor Steven Shockley.

“These are tough times and they are probably going to get tougher,” Puckett said. “If we expect our citizens to tighten their belts, we should do the same also.”

Officials have proposed small tax increases over subsequent years to pay for increasing debt payments for three expansive capital improvement projects. Initially the proposed increase for next year was 2 cents per $100 of assessed value, but supervisors agreed to advertise a 3-cent increase after learning of state cuts.

For property valued at $100,000, each cent in the tax rate increases the bill by $10.

“Seems like we’re really in a hurry to spend someone else’s money because that’s what taxes are,” Shockley said. “Three cents isn’t going to hit people that hard, but it’s the example we’re setting.”