| Time
to Cut the Spending |
| The real estate tax rates in Fairfax County and the Town
of Herndon may not be increasing, but the amount of taxes
homeowners will pay in 2003 will increase dramatically because
of rising assessments. |
| Here are some actual Town of Herndon examples, how assessments
changed, and additional taxes that will be due in 2003 as
listed on Fairfax County Web sites: |
| å A home on Elden Street: Up $94,000. |
| Increase taxes to town: $300 |
| Increase taxes to county: $1,156 |
| å A home on Madison Street: Up $68,000. |
| Increase taxes to town: $217 |
| Increase taxes to county: $836 |
| å A home on Page Court: Up $48,000. |
| Increase taxes to town: $154 |
| Increase taxes to county: $590 |
| å A home on Hunt Way Lane: Up $44,000. |
| Increase taxes to town: $141 |
| Increase taxes to county: $541 |
| å A home on Jackson Street: Up $26,000. |
| Increase taxes to town: $83 |
| Increase taxes to county: $320 |
| The Madison Street home, by the way, is my own home, which
means I'll be paying $1,053 extra in taxes this year to the
county and the town. That's a bunch of money, and as far as
I can see I'm not getting a lot more for it. |
| The Town of Herndon will hold two public hearings on the
town's budget, on April 9 and April 23. This year the town
wants to spend $37,061,953 for all funds. That's an increase
of 21.5 percent over the 2002 adopted budget of $30,491,542. |
| Understanding government budgets is no easy task, but here's
what I understand: |
| å The Town of Herndon wants to raise its budget by 21.5
percent. |
| å The Town of Herndon will be collecting 18 percent more
in revenues from residential real estate taxes due to the
increase in assessments. That revenue source makes up about
one-third of the town's total revenue. |
| å Some town employees are getting raises, bonuses and other
benefits. |
| å More employees will be added to the payroll. |
| å There will be much talk about why the town needs to spend
more money while residents pay higher and higher taxes. The
town will tell you it's not a tax rate increase, which it
isn't, but we'll be paying more because of the increase in
assessments. |
| The logic should be, it seems, for the town to cut the tax
rate. |
| By the town's own advertisements, "the (Town) tax rate which
would levy the same amount of real estate tax as last year,
when multiplied by the new total assessed value of real estate...would
be $0.285 per $100 of assessed value." |
| In other words, lowering the tax rate to 28.5 cents, from
32 cents would mean homeowners would be paying the same as
they did in 2002. |
| If the town cut the tax rate even 2 cents to 30 cents for
every $100 in assessed value, homeowners would still be paying
more in taxes than they did last year. |
| I remember years ago when sugar cost something like 20 cents
a pound. One year there was a shortage of sugar and the prices
were raised to 60 cents a pound. Consumers complained so the
sugar companies lowered the price to 40 cents a pound. Everyone
was happy, especially the sugar companies, who were now getting
100 percent more money for a pound of sugar. |
| Are we in that situation in Herndon with our taxes? |
| In the county, to offset the 18 percent increase in residential
assessments, anti-tax groups are urging the supervisors to
set the real estate tax rate at $1.06. The current rate is
$1.23. "Setting the rate at $1.06 is not a tax cut; it only
prevents a tax increase," a press release from these groups
says. "If the supervisors follow through on their plan to
leave the rate at $1.23, they will be enacting a $187 million
tax increase." |
| Loudoun County cut its tax rate by 3 cents per $100 of assessment
value. While the revenue to the county will increase, it did
give some relief to Loudoun County homeowners. |
| The problem here is that the Town of Herndon is reluctant
to cut its budget or even to keep its budget at the same level.
Businesses in Herndon, hurt by the downturn in the economy,
have slashed budgets, cut staff, delayed salary and hourly
wage increases, worked harder with less and in general have
gone back to the basics. Homeowners have done the same. |
| Town staff should think of themselves as a business. This
has not been the best of years for workers and businesses.
An increase in taxes will only hurt. |
| And who gets hit the hardest? People on fixed incomes. Retired
people. It is one reason the percentage of people over 65
years old living in Herndon is one of the lowest in the county.
The median age in Herndon is 29-1/2 years old and 3.1 percent
of the population is over 65. That compares to 7.9 percent
in the county. No one can over 65 can afford to live here. |
| If the town insists on a 21.5 percent tax revenue increase,
migration of the elderly will only get worse. |
| It's time for the town, the staff and the council to sharpen
the pencils, and it's time for Herndon residents to appear
at the two public hearings on the budget to let their feelings
be known. |
| And that's Our Town this week. |
