The Prince William Board of County Supervisors may exercise an option to further reduce the proposed real estate tax rate to 75.9 cents per $100 of assessed value from its current level of 91 cents.
The board had promised citizens that tax bills would not increase by more than 5.9 percent per year. Skyrocketing real estate values, however, are triggering ever-larger tax bills even in cases where the tax rate is the same or reduced.
To ease the pressure on homeowners, the board has proposed cutting the current tax rate to 76.7 cents. But estimates by the county show tax bills would still go up an average of 7 percent — a windfall for the county of some $5 million, according to Prince William County Executive Craig Gerhart’s proposed fiscal 2007 budget.
The board could vote to drive down the rate to 75.9 cents to meet the 5.9 percent goal.The supervisors also have the option of eliminating the vehicle decal tax and its $7 million in revenue, said David Tyeryar, the county’s budget director. However, in that case, supervisors would have to cut an additional $2 million from the proposed budget.
Gerhart warned the supervisors to “keep an eye” on those uncertainties when working on the budget. The prices projected for several upcoming capital projects in the county “are not favorable to our fiscal situation,” he said.
The proposed transportation bond referendum set for November had to be increased by more than $60,000, to $300 million, to cover mounting construction costs.
Board Chairman Sean Connaughton estimated that the debt service on the bonds would increase by some $12 million if the projects went forward.
The supervisors can review the transportation projects on the referendum this summer.
Budget Changes
Estimated real estate taxes
Preliminary: $431,840,000
Current: $436,918,000
Estimated total revenue
Preliminary: $853,242,029
Current: $858,320,029
