The Numbers Don't Lie; A Really Sad State of Affairs; Still Hungry For Made Up Meals Taxes.

RVA 5x5 - September 21, 2024

No algorithms. No content filters. No A.I. — Honest and insightful analysis from Richmond, VA.

This week check out our stories on:

• The debate at City Hall about reducing the real estate tax rate a few cents as assessments continue to rise along with city revenues. Will residents get a break?

• An audit of the Finance Department found all kind of unprofessional behavior, a lack of leadership and training, and thousands of unmanned and unprocessed bills lying around….

• Belly up to the buffet for another tale from the meals tax fiasco as the owner of a Richmond institution got notice he was due a refund, until the city stripped gears and told him he actually owed $188,000. Whoops.

STORY #1 — The Numbers Don't Lie
The debate about the city’s real estate tax rate is heating up as assessments and revenue goes up and elections close in. A few sparks flew Thursday at a Council Finance committee meeting over the annually required discussion about the city’s tax rate; 8th District Councilwoman Reva Trammell wants to reduce the city’s real estate tax rate four cents from $1.20 to $1.16 per $100 of assessed value, and the Mayor’s Administration opposes it.

Graham Moomaw at The Richmonder wrote a story before the meeting pointing out that the proposal could save the average homeowner around $150 on their tax bill in 2025, according to city officials, based on the average home value of $366,163.

He also noted: In fiscal year 2020, the city collected about $300 million in real estate taxes…. For fiscal year 2025, that number was projected to hit nearly $461 million at the same $1.20 rate that’s been in place since 2008.

Since Fiscal year 2020 (which began July 1, 2019), we have been through a pandemic, lockdowns, civil unrest, riots, local, national, and citywide elections, punishing inflation, and a still ongoing meals tax fiasco (see third story). And yet, assessments have continued to go up (in some areas, way up) year after year and the revenue to the city from real estate taxes alone has increased 54%.

Which is probably why Trammel was fired up about the request for a continuance to consider the reduction; she has said it is needed because the cost of living is rising so fast and the city can trim the budget a little with all the growth and revenue coming into the treasury. She noted that the real estate tax revenue collection was $31 million higher than last year and her proposed tax cut of four cents is equal to reclaiming about $16 million.

“I have the numbers right here. They don’t lie,” Trammell said. “Every year, y’all come up with something else that we cannot do this. Every year we talk about how we’re going to do something for the citizens. And this is what we get.”

At a meeting last week, she said she is getting an earful on the campaign trail: “Stop saying we can’t afford it. Everybody’s saying ‘Everybody in City Hall is getting all these high-priced salaries, you’re getting vacation time, you’re getting holidays.’ That’s what I’m hearing at the doors.”

But the Administration didn’t want to discuss this issue Thursday, and Committee Chair Cynthia Newbille obliged them by trying to fast track the continuance with minimal committee discussion and no public comment (even though three speakers were there to comment); but she was caught out by 1st District Andreas Addison. He stepped in front of the pitch that would have closed the discussion so he could register his thoughts on the topic.

Which was good, because the point Addison brought up was the best one of the discussion. He pointed out that the FY2025 budget that began in July is expected to