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HomeMy WebLinkAbout03-31-92March 31, 1992 9077 Minutes of the public hearing held before the Pulaski Town Council on March 31, 1992, at 7:00 p.m. in the Council Chambers in the Municipal Building. There were present: Mayor Gary C. Hancock, presiding Council Members: Charles D. Crispin, J. R. Schrader, Jr., Mary Lou Copenhaver, James M. Neblett, Andrew L. Graham, W. H. Schrader, Jr., Alma H. Holston, Robert N. Glenn Also Present: Frank Terwilliger, Town Attorney Don E. Holycross, Town Manager Robert J. Lyons, Asst. to the Town Manager Ruth A. Harrell, Clerk Visitors: Dee Lindsey and Paul Dellinger, News Media Roy D'Ardenne Joe Weddle Mr. and Mrs. J. C. Montgomery Mr. and Mrs. J. B. Warner Mr. and Mrs. Claud Kirkland Mr. and Mrs. Allen Powers Polly Mitchell 1 area citizen The public hearing was called to order by Mayor Hancock. Councilman W. H. Schrader led the Pledge of Allegiance with the Invocation being given by Councilman J. R. Schrader. The roll call was then taken by the Clerk with all members being present. PUBLIC Mayor Hancock stated the public hearing was being held to gather HEAR. Public comment regarding the proposed real property tax rate of $0.34 TAXES Per $100 assessed valuation. Mr. Holycross reported that with the reassessment, the Virginia Code provides that the Town has two options. We can reduce the real estate tax rate to the point where it does not provide any more revenue than what the prior year's assessment would have provided, or if Council establishes a rate any higher than this, we have to treat it as a property tax increase pursuant to the public hearing being held tonight. With the aid of overhead visual, Mr. Holycross illustrated the property reassessment comparison of land and improvement values for the years 1989 through 1992 with that year's tax rate and showing the tax payable. 9078 March 31, 1992 REASSESSMENT _ REAL ESTAT Also illustrated was the value of home and property, ranging from TAXES 30,000 through $90,000 with property tax at $.3104/$100 and $.3400/$100, respectively. The annual difference in property tax was shown. A chart illustrating comparison of revenues and expenditures was shown with actual revenues and expenditures for 1989-90, 1990-91, budget revenues and expenditures for 1991-92 and estimates for revenues and expenditures for 1991-92 and estimate for 1992-93 with real property tax rate at $.3400/$100 and $.3104/$100. County-wide, the difference in the prior assessment and the new assessment is 9.63%. Mr. Holycross stated that by increasing the rate now effective for the June billing, that it would bring in approximately $30,000 more in June and if money had to be made up in the future, it would result in a higher rate in the future to make up the difference. From the public, Mrs. Polly Mitchell, 600 Prospect Avenue, felt the public should have it explained to them, possibly through the news media, what their taxes would be. And, that it was based on the value of their home. She further stated that people had called her and they were intimidated before the Town Council. Also, that the Concerned Citizens Group had a positive attitude. Mrs. Mitchell brought to Council's attention the condition of the road behind the Chinese Restaurant on Route 11 as the road is caving in. Mr. Holycross will investigate this problem. Mr. J. B. Warner, Oakhurst Avenue, felt an increase in taxes would make it harder on people with fixed income. He felt the June tax ticket should be at the lower rate. Also, that the budget should be reviewed first. Mr. Warner stated that the Town should have a surplus due to not having snow removal work this year. Mr. Holycross explained that snow removal money comes from street improvements and maintenance monies from the state and money has to be spent on street improvements by the end of the tax year. We cannot carry money over into the next year. Mr. Claud Kirkland, English Forest Road, stated he was appalled at the number of people attending the public hearing. He felt people did not feel free to express their feelings to Town Council. Mayor Hancock stated that the public is welcome to come before the Town Council at any time and there is always an opportunity for the public to speak, however, there are people who are not comfortable speaking. Councilwoman Holston stated that she had attended many meetings and public hearings where no one came. Councilman Crispin reported that he had received calls from March 31, 1992 9079 citizens who did not want to give their names when giving him a problem. Councilman Glenn stated that Council was in the position to make decisions as elected officials. He felt that if the tax rate is not increased, people will be hit hard in December with a much higher bill, possibly .42/$100. He further stated we have a number of tools to increase revenues. The water and sewer are stand- alone funds and their rates will be set according to what the funds will be necessary to balance. The only other taxes the Council has allocated to it are meals tax, sales tax, personal property and real estate. We would hope that if the economy improves, then we will see more meals tax monies coming in and we can offset the real estate and personal property accordingly. He stated that he felt the only fair tax was the real estate and personal property tax based on ownership, and if the .34 is to much, we can give it back, and hopefully we can cut enough out of the budget to give it back. Councilman J. R. Schrader stated that 8-10 years ago, Council had to borrow money to pay their bills. Also, several years ago the tax rate was reduced. He further advised he had attended many meetings while. with the Newspaper and no one attended. Mayor Hancock stated that Councilman Glenn had made a good point. In looking at the estimated revenue, if we go to .34, next year will be approximately $4,050,000. If we don't do anything different than what we are doing now, our budget will be $4,176,000 and if we only have revenue of $4,050,000 that leaves $126,000 that we do not have. We will not be able to meet our current service level. Mr. Warner stated that taxes should not be used to create a reserve, with Mr. Holycross advising the only reserve being established is that which allows the general fund throughout the year to stay out of a deficit situation. At present, we do not have enough of a reserve in the general fund that can assure that each and every month when we close the books, that we have a positive balance within the general fund. That is the reserve that we are trying to build. Councilman Graham stated that when comparing this year to 1990, we are in pretty good shape. He requested additional information before voting on this matter in addition to the 11~ increase in health insurance, 4% merit increase for employees and $11,000 in debt service. He requested information for the train station, water system and other expenditures. Councilman Crispin also requested that additional information be provided and he felt that the .31/$100 should be maintained. Mayor Hancock stated these questions would come up at the budget study. It was felt information could not be provided until departmental figures for the budget are in and the budget prepared for Council's review. Mr. Holycross reported that legislation would be prepared and ready for the April 7th meeting of the Town Council as a rate must be set by April 15. We must leave at $.34/$100 or reduce it back to $.31/$100 i 9080 March 31, 1992 which would provide equivalent revenue of one year ago. The reassessment will apply to the June tax tickets. There being no further comments from the public, at 8:17 p.m. Councilman Neblett made a motion that Council adjourn, seconded by Councilwoman Holston and carried. APPROVED: ~~z ' Attest: ~T 'tcitc.eJ2-.- lerk of Council 1