MARTINSVILLE, Va. – Martinsville residents will soon pay more in property taxes, trash collection fees and electric bills as city leaders work to address a multimillion-dollar budget shortfall.
The increases come after city officials identified a roughly $4 million gap during the budget process earlier this year.
Former City Manager Rob Fincher previously told 10 News the shortfall was driven by the expiration of federal funding and rising operational expenses that had not been accounted for in previous budgets.
“What was budgeted before didn’t account for the future,” Fincher said. “Basically, to say that this funding is going to end one day.”
Under the adopted budget, the city’s real estate tax rate will increase by 9 cents per $100 of assessed value. Based on estimates, the average homeowner will pay about $67 more annually in property taxes.
Residents will also see trash collection fees increase by $5 per month, adding another $60 per year to household expenses.
Electric bills are expected to rise by an average of 47 cents per month through adjustments to the city’s electric rates.
Combined, the increases amount to approximately $11 more per month, or about $132 annually for the average household.
Not everyone agrees on what caused the budget challenges.
Councilman Aaron Rawls and Mayor LC Jones both voted against the budget. Rawls says he didn’t want to increase taxes again and believes political turmoil and infighting among city leaders contributed to the city’s financial problems.
“Corrupt people are going to cost you money,” Rawls said. “And so that’s where we’re at.”
Some residents say the additional costs come at a difficult time for many households.
“Ever since the election almost four years ago, we have had historic tax and fee increases,” said Martinsville resident Ural Harris. “We have the lowest income in the state and the lowest ability to pay of just about anybody in the state.”
Rawls said the city’s financial challenges may not end with this year’s budget. He said some equipment purchases and capital improvements have been postponed because of the deficit, potentially creating additional financial pressures in future years.
“All we’re doing is digging the hole even deeper,” Rawls said. “So it’s a guarantee there’s a tax increase next year.”
City officials have not announced any future tax increases yet.