Board of Supervisors approve Budget includes tax releief

Covid-19 relief for residential real estate taxpayers became reality when the Board of Supervisors approved the budget for fiscal year 2020-2021. While the Board approved a tax rate that is the same as the current one, they implemented a innovative tax credit – one thought to be the only one in the state.

The tax credit, which amounts to a five cent reduction in the taxes for this year, will show up when folks receive their bills this fall. It essentially means that for this year only, property owners will pay $0.74 per $100 value instead of the $0.79 per $100 value.

The supervisors approved a $104.1 million budget that includes an anticipated 3.1% increase in tax revenue and a 3.1% increase in expenditures.

Earlier this spring, several people spoke against the county’s $0.79 per $100 value real estate tax because the county underwent a reassessment this year, as it does every four years. On average, real estate values increased 9.3%, giving the county a potential windfall.

Then the pandemic hit. County revenue fell as meals tax, licensing taxes, and other revenue declined as people stayed home and many lost work. The county budget committee and staff looked for ways to make cuts, including hiring and salary increase freezes. The administration tightened spending and saved money where possible and about $1.2 million should revert to the county’s fund balance at the end of the fiscal year, according to county staff.

The county still doesn’t know how much money it will receive from the state, as the state has not yet passed a budget. The county, by law, needed to pass its budget prior to July 1.

“There were so many unknown variables in trying to get to a final result,” County Administrator Gary Larrowe told the supervisors.

Budget committee members cited a need to be flexible and innovative in their thinking as they tried to meet the needs of small businesses, students, public safety concerns, and the elderly population while dealing with multiple unknowns. “It was all about helping to support the citizens,” Larrowe said.

The new budget removed hiring of new employees except for emergency services. Additionally, fleet replacement, such as police cars, has been severely curtailed. Other expenditures also were eliminated where possible.

The county’s innovative solution of a tax credit had to undergo multiple layers of legal and financial challenges in order to become reality for the citizenry. Larrowe said to his knowledge, no other county in Virginia is offering Covid-19 relief to the extent that Botetourt County is offering.

The county is also receiving about $2.9 million in Covid-19 relief from the federal government through the  Coronavirus Aid, Relief, and Economic Security (CARES) Act, and that, along with what the county is offering, means that the local citizens are receiving direct and indirect assistance of about $5.6 million.

Some of the CARES act money will be going toward broadband initiatives to increase internet access. This is allowed because of telemedicine and online studies for students, Larrowe said.

       — Anita Firebaugh, Special to The Botetourt Bee,

Flag at Troutville Park photo icon The Botetourt Bee