Supervisors consider fiscal 2008 budget today

Some Culpeper County residents are crossing their fingers the Board of Supervisors won't increase the tax rate above what is necessary to balance the budget.

Others are hoping the board adopts what it needs to pay for future obligations so next year's tax rate could be less drastic.
Today, the board is tasked with setting the tax rate for the 2008 operating budget.

If it approves County Administrator Frank Bossio's recommendation of 59 cents per $100 of assessed value, then the budget will total $144.5 million - about $19.5 million more than the current year.

At a public hearing last week Bossio said the 2008 budget is significantly different than any other year due to recent reassessments and growth projections.

Some residents have seen their reassessments climb thousands of dollars. Brenda Pack, who spoke at the hearing, said her 50-acre property increased $500,000 in value.

"It's like deal or no deal," she said. "We need a low number (for the tax rate)."

An equalized tax rate of 52 cents - based on increases in real estate reassessments - would balance the budget. Currently the rate is 89 cents per $100 of assessed value. The equalized rate would bring the county the same amount of revenue as the current rate.

But the extra seven cents would create about $4 million in revenue and could be used for the two new schools the county is building and other future projects.

In Culpeper County one penny of real estate tax creates about $588,000 in revenue. By way of comparison, in Fairfax County one penny creates about $17 million.

Bossio said the county's financial policy requires it to keep 15 percent in its general fund reserved for operations. After financing county departments, any leftover money - usually between $3 million and $5 million - is used for cash management or one-time costs.

"This budget is not built with any room left," Bossio said. "In '08, if you presume the budget will grow by $10 million and don't replenish, cash reserves will run out. That's critical because it affects bonding and our opportunity to create cash."

With schools, a new jail and other obligations coming down the pike, the 59-cent rate would help ease the county's share of those future costs.

Bossio said his recommended tax rate would allow for $3 million to go to the schools, a new records management division and one new position each for the commissioner of revenue, treasurer, the options program and commonwealth attorney's offices. It would also allow for four new Sheriff's Office positions and $500,000 for future set asides.

The equalized rate would only allow for $1,800 to the schools, no new county positions and no future set aside funds for upcoming projects.

Ron Miller, who spoke at the hearing, said he was concerned there is a reluctance to meet the schools' needs.

"The number of housing units has direct reflection on the demand for infrastructure needs and that's very important," he said. "I'm concerned the school system needs to be funded adequately to grow."

While other residents recognize schools are in need of funding, some can't afford the tax increases.

Leonard Birney said he lives in a neighborhood where some senior citizens survive solely on social security.

"It's just more than you can bear," he said. "Once you're retired, you're limited to what you got. I'm asking you to take it easy on us."

Liz Mitchell can be reached at 825-0771 ext. 110 or

By the numbers:
Total budget for FY08: $144.5 million
Current budget: $125 million
Advertised tax rate: 59 cents per $100 of assessed value
Current tax rate: 89 cents per $100
Equalized tax rate: 52 cents per $100
Value of one penny in real estate tax: $588,000