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Prince Edward County supervisors have a choice to make. They can fully fund the proposed budget, which would mean a tax increase. Or they can set the tax rate to generate the same amount of money as this year, which would mean budget cuts. 

The group received a tax rate presentation from County Finance Manager Crystal Baker during their called meeting on Tuesday, April 15, followed by a public hearing. Currently, Prince Edward’s real estate tax rate stands at 51 cents per $100 of assessed value. That’s fourth lowest out of eight counties in this region, higher than Lunenburg at 33 cents, Nottoway at 45 cents and Amelia County at 46 cents. For the record, Buckingham and Cumberland are both at 60 cents, Charlotte is currently at 62 but considering a reduction and Appomattox is at 63 cents. 

That was before reassessment, however. 

The Code of Virginia requires each county go through a general reassessment of property, to reflect current fair market value. In other words, to keep the assessed value consistent with what the property is worth on the open market and to determine the tax bill. Through last year, Prince Edward went through a reassessment with Wampler Eanes Appraisal Group and as we reported back in January, real estate values rose close to 37% on average. 

So now your home is valued at a higher price, meaning that leaving the tax rate at 51 cents would be a dramatic tax increase. Instead, as mentioned, Prince Edward supervisors have a choice to make. 

The choices being proposed

To completely offset the reassessment, to leave your tax bill roughly the same as it was this year, the board would need to reduce the tax rate to 37 cents per $100 of assessed value. 

“This rate would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate,” Baker explained to Prince Edward supervisors on Tuesday. 

However, there’s one tiny problem with that. It wouldn’t be enough to cover all the expenses included in the proposed budget. In order to pay for everything in the proposed budget, supervisors would have to set the tax rate at 39 cents, which with the new real estate values, would be a 5% tax hike. 

The current budget stands at $32.771 million. The proposed version for the upcoming fiscal year would require that revenue to go up to $36.949 million, an increase of 12.7%. There aren’t any major purchases included, no new jobs added. Instead, the requested budget increase comes mostly as a result of less money given by the state in some areas, overtime needs for the sheriff’s office and higher costs on everything from health insurance to simple material. 

Let’s start with the sheriff’s office. The proposed budget asks for several increases, including raising the overtime budget from $200,000 to $217,056. The budget for vehicle fuel increased from $65,000 to $80,000. Maintenance service contracts for the department jumped from a budget this year of $114,750 to $145,340, while the supply budget request went from $60,000 to $65,000. There was also a slight increase in the uniform budget request, going from $30,000 to $35,000. And finally, a small bump in part-time salaries and wages, from $200,000 to $225,000. 

For overall county staff, there’s a 5% cost increase for health insurance, much like Farmville and other areas are seeing. The proposed budget also includes a 1.5% bonus for county staff and what’s been described as “a handful of merit increases’ or raises. 

The fire and rescue part of the budget would climb from $250,000 to $350,000, due to debt service for the new emergency radio system approved and purchased last year. The Sandy River Reservoir project remains one of the bigger expenses, with $200,000 set aside for engineering costs, $17,500 for legal and $400,000 for debt service, along with a $150,000 contingency fund in case any of the materials go above budget. 

As for the school district, last year the request was for $11.5 million. This year, the county has started paying on debt associated with the new elementary school renovation, which is a $529,449 payment and overall, is asking for $12.239 million from the county. 

Where is the money coming from? 

Residents who spoke at Tuesday’s meeting asked supervisors to approve the 39 cent tax rate, saying the increase was needed to help the schools. 

“I understand tax increases are not easy and not popular, especially when you have a lot of people living paycheck to paycheck,” said Eric Hodges. “I know that’s not an easy thing to do, but I’d argue the slight increase is in the best interest of Prince Edward County citizens, particularly because of the support it provides to our schools.” 

Hodges, who lives in Rice, said he had two daughters at Prince Edward Elementary. 

“What’s really opened my eyes over the past few years are the kids my kids sit next too every day,” Hodges said. “There are so many students in our schools that are struggling, not because they lack potential but because they lack resources, support and stability. For them, a good public school could change the trajectory of their lives. I believe we owe it to these children and the teachers and staff who show up for them every day, to provide the best schools that we can.” 

His comments were echoed by Farmville resident Justin Pope, who has two daughters at Prince Edward Middle School. Even with the reassessment and changes, the proposed tax rate would keep Prince Edward below surrounding counties, he pointed out. Beyond that, he argued that with new school Superintendent Dr. Chip Jones taking over July 1, now is a good time to invest in the school district. 

“I think we have a really generational moment to grab the bull by the horns and really address the long-term issues in schools, staffing, facilities, the whole gamut,” Pope said. “I’m thinking 5 years, 10, 15, 20 years down the line. The hard truth for a lot of places is if we do not attract young families and we do not attract businesses to move here, that is what in the long run will put pressure on our rates. We will be like many other counties that are simply treading water and their rate has to go up and up and up just to keep the doors open in the school system.”

Or, Pope said, Prince Edward can work on renovating and rebuilding, to attract those younger families. 

“If we seize this moment and provide the revenue and the resources the new superintendent needs, when young families move here, they see our new school building, they see facilities that are well kept, they see teachers who are building a happy and successful career here because they are compensated for the work they do at a competitive rate,” Pope said. “If they see all those things, I’m really confident families and businesses will move here and that over time, that will be what will sustain our growth and keep us competitive.”  

What happens next for Prince Edward supervisors? 

This was the presentation and public hearing on the tax rate, which still isn’t set. Next Tuesday, April 22, there will be a presentation and public hearing on the full budget. Then on April 29, there will be a special called meeting to adopt both the tax rate and the county budget.