REAL ESTATE ASSESSMENT INFORMATION FOR 2013

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2 REAL ESTATE ASSESSMENT INFORMATION FOR 2013 I. NEWS RELEASE II. III. TALKING POINTS ASSESSMENT INFORMATION FROM ASSESSOR

3 City of Charlottesville Office of Communications City Hall P.O. Box 911 Charlottesville, VA Telephone Facsimile TO: Local Media FOR IMMEDIATE RELEASE Contact: Miriam Dickler (434) January 31, 2013 City of Charlottesville Releases Annual Assessment Figures CHARLOTTESVILLE, VIRGINIA In their annual review of property within the City of Charlottesville, the City Assessor s Office released figures that show the total value of taxable property including new construction increased by 1.35%. The City has 13,066 taxable residential parcels and approximately 49% will have a decline in value and 51% will not have a change, excluding improvements and new construction. Here are some details of this year s figures: Assessment for existing residential property declined in value by 2.44%. Assessments for existing commercial property increased in value by 6.25%. Combined existing residential and commercial property increased in value by.61%. When new construction & re-classification are added to the value of existing property the total value of property in the City increased by 1.35%. According to Charlottesville City Assessor Roosevelt Barbour, Jr., (RES), there was a decline in existing residential property values even though unit sales increased by 25%. The Assessor s Office reviewed assessments and sales information within the City to determine the assessed value for tax year Reassessment notices will be mailed to all property owners on January 31, Virginia law requires cities to assess all properties annually. Charlottesville Commissioner of Revenue, Lee Richards, reminds residents that there are existing programs that can help residents who are in need of financial assistance. Residents are encouraged to apply for the City s Real Estate Tax Relief Program. Anyone 65 years of age and older with an annual income of $50,000 or less and a net worth of $125,000 or less, excluding their home and ten acres of land, may qualify for the program. Persons under 65 years of age who are permanently and totally disabled may also qualify. Last year, this program aided 480 households with an average tax relief of $1,244. Applicants have until March 1, 2013 to apply for the Real Estate Tax Relief Program, and until May 1, 2013 to apply for the Rent Relief Program. The Charlottesville Housing and Affordability Program applications will be mailed by July 1, 2013 and applicants will have until September 3, 2013 to file or mail their application. Last year 568 applicants received $375 and 392 applicants received a $525 grant to assist

4 with their Real Property taxes. Please contact the Charlottesville Commissioner of Revenue s Office at for assistance, or visit Property owners who have not received a notice by February 6 th or have questions, are encouraged to call the Assessor s Office. Property owners wishing to discuss their assessments for 2013 must do so by March 1, 2013 to be eligible for a review for The Assessor s office is located on the third floor (Room 320) of City Hall, and the business hours are from 8 AM to 5 PM. The telephone number is (434) The assessments are accessible on the City s website at Appeal forms are on line at both libraries, and the Assessor s Office.

5 Talking Points 2013 Assessments How does a property owner appeal an assessment? Once the assessments are mailed, you, as a property owner, have 30 days to appeal the assessment by either calling or visiting the Real Estate Assessor's Office in City Hall. You may speak to an appraiser, review the data used in computing the assessment and, if necessary, schedule an inspection of the property. After this, should a dispute still exist, you may appeal to the Board of Equalization. The three-person board, appointed by the Circuit Court, is composed of City property owners. The board may affirm, reduce or raise the assessment, if in their opinion such adjustments are necessary to equalize the tax burden upon all citizens in the City. Appeal forms are on line at libraries and the Assessor s Office. If you are dissatisfied with the Board's decision, you may appeal to the Circuit Court. If you have assessment questions please call the City Assessor's Office at Does the city offer any programs for financial assistance? Charlottesville residents are encouraged to apply for the City s Real Estate Tax and Rent Relief programs. Anyone 65 years of age and older with an annual income of $50,000 or less and a net worth of $125,000 or less, excluding their home and ten acres of land, may qualify for the Real Estate Tax Relief program. Persons under 65 years of age who are permanently and totally disabled may also qualify. The qualifications for the Rent Relief program are the same. Applicants have until March 1, 2013 to apply for the Real Estate Tax Relief program, and until May 1, 2013 to apply for the Rent Relief program. Applications for the Charlottesville Housing and Affordability Program (CHAP) will be mailed by July 1, 2013 and applicants will have until September 3, 2013 to mail in an application. Please contact the Charlottesville Commissioner of Revenue s Office at for assistance, or visit How much tax relief has been given in the past? Real Estate Tax Relief This is the average scenario based on 2012 figures: Elderly Tax Relief (RETR) Chap Program (CHAP) (Accepted Applications) Applicants qualified Grant Average property value $ 202,443 Average tax $ 1, $375 Average Amt. of relief $ 1, $525 Households qualified How have 2013 real estate assessments changed in other localities? Charlottesville Increase of 1.35% Albemarle Decrease of 2.29% Hanover Decrease of 1.50% Roanoke City Decrease of.70% Richmond Decrease of.50% Roanoke Decrease of.20% Salem Increase of.05% Arlington Increase of 1.50% Chesterfield Increase of.50%

6 Why does Charlottesville Assess at Market Value? Assessments are required by the Code of Virginia to be assessed at 100% fair market value. The fair market value is the most probable price expressed in terms of money that a property would bring if exposed for sale on the open market. What are the steps in the Assessment process? Each year the Assessor's Office appraises all real property in the City to determine values for tax purposes. The assessments are effective January 1 of each year. Change of assessment notices are mailed annually around February 1. How does the Assessor's Office obtain information on properties? The appraisal staff inspects properties and gathers information that is pertinent to value; type and quality of construction, square footage, type of heat, baths, fireplaces, location, etc. This information is maintained and kept on file in the Assessor's Office. The information is a matter of public record and may be reviewed at any time. How are property values determined? Residential properties in Charlottesville are appraised by the market approach. In this approach, the value is obtained by comparing similar properties of the same type and class which have sold recently in the same neighborhood, taking into consideration factors which may effect value; such as location, condition, size, etc. Recent sale prices in your neighborhood determine what your assessment will be. Each sale is examined closely to determine if the transaction was an arms length transaction. Each time a property sells the Assessor's Office mails a questionnaire to the buyer asking questions about the sale. On average, about eighty percent of the properties that sell in the city are considered arms length sales. Sales that would not be considered arms length are: bank foreclosures, auctions, sales between family members, condemnations, sales due to divorces, and tenant buying from owner, etc. What if there are no recent sales on a certain street or block? If there are no recent sales in a certain area the assessor has to use sales from a comparable area to determine values. Areas that the assessor compares your property to are similar in location, price range and style of homes. This situation rarely occurs due to the number of properties that sell each year in the city. Why do assessments change from year to year? When the market values in your neighborhood change, so does the assessed value. For instance, if homes in your area are selling at prices above their assessed values the assessments will likely increase. However, if homes in your area are selling below their assessed values they will likely decrease. Why are some properties assessed higher or lower than what they sell for? The assessment/appraisal business is not an exact science. The assessor does not get the opportunity to go in every home when assessments are made. In today's world most people are not at home when the assessor is in your area; therefore, most assessments are based on exterior inspections. The assessor tries to monitor each property so that assessments are fair and equitable and not in excess of market value. If the assessor finds that an assessment is low or high he/she will correct it.

7 How is the tax rate determined? The tax rate is set by City Council in the spring of each year. The tax formula to calculate your taxes is as follows: Assessment divided by 100 X Tax Rate = Tax Bill Real Estate valued at $100,000 is calculated as follows: $100,000/100 = $1,000 x $.95 = $ The tax rate has been reduced by City Council several times in recent years. It is currently at $.95 per $100, down from $1.11 per $100 several years ago. City taxes are paid twice a year to the City Treasurer's Office; respectively on June 5 and December 5. Important Numbers City Assessor s Office Assessor's Office in City Hall Room 320 on the third floor located at the east end of the Downtown Mall. Our office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. City Treasurers Office For information concerning tax collection and penalties contact the City Treasurer's Office. City Commissioner of Revenue For Real Estate Tax and Rent Relief Community Development Department For Zoning questions

8 City of Charlottesville MEMO TO: Maurice Jones, Aubrey Watts Cc: Bernard Wray FROM: Rosey Barbour DATE: January 31, 2013 SUBJECT: 2013 Reassessment The Office of the Real Estate Assessment is pleased to submit information for the 2013 assessments. This office strives to assess property at fair market value while maintaining uniformity. We review property assessments annually using models developed for each class of property that consider sales data to assist in our assessment process. All real property owners will receive a notice of their property value regardless of whether the value changed. The notices will be mailed on January 31, Our office will be available to meet with property owners that want to discuss their assessment by March 1, Property owners may also request a review with the Board of Equalization after an appeal with an Assessor. Total taxable property increased from an adjusted base of $5,233,157,600 to 5,303,754,000, which represents a total assessed value increase of $70,596,400 or 1.35%. Reassessment of existing property increased by $31,882,400 or.61%. Exhibit I details the changes between residential and commercial property. The exhibit shows that existing residential property decreased by a total of 2.44% when new construction is removed from the total. Existing commercial property increased by 6.25% when new construction is removed. A review of residential neighborhoods general reassessments reveal the following: Value changes # of Neighborhoods Decreased in value 22 No change 25 Increased in Value -0- Total Neighborhoods 47 The average assessed value for Residential Property decreased from $259,969 to $254,064. I am also enclosing the following exhibits for your review:

9 Exhibit I. Exhibit II. Exhibit III. Exhibit IV. Exhibit V. Exhibit VI. Assessment Changes Five-Year Reassessment History by Neighborhood 2013 Assessment Changes Due to General Reassessment Assessment Trends Assessed Real Estate Values Residential vs. Commercial 2013 Assessment Information by Value Range I am available to discuss the new assessment information at your convenience.

10 EXHIBIT I ASSESSMENT CHANGES Tax Year 2013 Residential Commercial Total Assessment Values 2012 Assessed Values ,386,653, ,835,181, ,221,834, Substantially Complete Values 9,528, ,794, ,322, Total Assessed Values ,396,182, ,836,975, ,233,157, Increases (Decreases) for 2013 General Reassessment (82,972,700.00) 114,855, ,882, % Change from Reassessment (2.44) New Construction 6,985, ,937, ,922, % Change from New Construction Total Increase (Decrease) (75,987,400.00) 148,792, ,805, % Change Before Reclassification (2.23) New Total ,320,195, ,985,767, ,305,962, Reclassification (Taxable to Non-Taxable) (590,200.00) (1,618,400.00) (2,208,600.00) % Change from Reclassification (0.02) (0.08) (0.04) Total Assessed Values ,319,604, ,984,149, ,303,754, Total % Change (2.25)

11 RESIDENTIAL NEIGHBORHOODS EXHIBIT II Five-Year Assessment History by Neighborhood Due to General Reassessment Tax Years % Change 2012 % Change 2011 % Change 2010 % Change 2009 % Change 1 ANGUS ROAD AREA BIRDWOOD-HILLCREST ROAD TOWLES-MERRYDEN-IVY TERRACE UNIVERSITY-MAURY HILLS FRY'S SPRING AZALEA GARDENS-GREEN VALLEY JPA, SHAMROCK ROAD JOHNSON VILLAGE RIDGE STREET B BURNET COMMONS C BROOKWOOD CARTER VIEW N/A N/A 10 FIFEVILLE PAGE, 10TH STREETS RUGBY VENABLE MEADOWBROOK HILLS RUTLEDGE GREENBRIER GREENLEAF TER.-ROSE HILL-RUGBY ROSE HILL, FORREST STREETS NORTH DOWNTOWN IX/BELMONT CARLTON/BELMONT BELMONT LITTLE HIGH STREET/E.JEFFERSON ST WOOLEN MILLS LOCUST GROVE LOCUST GROVE EXTD WOODHAYVEN HOLMES, NORTH AVENUE AREA ORANGEDALE WILLOUGHBY DUPLEXES DAVIS AVENUE, MARSHALL STREET FOREST HILLS NORTH BELMONT BELMONT LOFT CONDOS MELBOURNE OLD FIFTH CIRCLE OVERLOOK CONDOS WALKER SQUARE CONDOS JPA CONDOS HOLSINGER CONDOS CHERRY HILL DOWNTOWN CONDOS JOHNSON VILLAGE NEW ADDITION N/A N/A 70 ROCKCREEK CONDOS N/A N/A N/A RESIDENTIAL AVERAGE Page 1 of 2

12 EXHIBIT II Five-Year Assessment History by Neighborhood Due to General Reassessment Tax Years % Change 2012 % Change 2011 % Change 2010 % Change 2009 % Change COMMERCIAL NEIGHBORHOODS 32 PRESTON AVENUE CT. SQ. & CENTRAL BUS. DISTRICT APARTMENTS WEST MAIN NORTH & IVY ROAD LIGHT INDUSTRY-HARRIS STREET FRATERNITIES CHERRY AVENUE FIFTH STREET EXTD BELMONT EAST HIGH STREET MARKET STREET CARLTON COMMERCIAL ROSE HILL COMERCIAL FRY'S SPRING OFFICE CONDOMINIUMS N/A N/A 68 RETAIL CONDOMINIUMS N/A N/A COMMERCIAL AVERAGE CITYWIDE AVERAGE Some parcels were shifted in 2011 to create neighborhoods #9C (Brookwood Carter View), #66 (Johnson Village New Addition), #67 (Office Condominiums), and #68 (Retail Condominiums). We will continue to re-align neighborhoods as circumstances dictate. Page 2 of 2

13 EXHIBIT III ASSESSMENT CHANGES Due to General Reassessment with Parcel Counts by Neighborhood RESIDENTIAL # OF PARCELS % INCREASE - General Reassessment 2013 AVERAGE ASSESSED VALUE 1 ANGUS ROAD AREA ,500 2 BIRDWOOD-HILLCREST ROAD ,300 3 TOWLES-MERRYDEN-IVY TERRACE ,400 4 UNIVERSITY-MAURY HILLS ,000 5 FRY'S SPRING ,000 6 AZALEA GARDENS-GREEN VALLEY ,900 7 JPA, SHAMROCK ROAD ,300 8 JOHNSON VILLAGE ,400 9 RIDGE STREET ,500 9B BURNET COMMONS ,000 9C BROOKWOOD CARTER VIEW , FIFEVILLE , PAGE, 10 TH STREETS , RUGBY , VENABLE , MEADOWBROOK HILLS , RUTLEDGE , GREENBRIER , GREENLEAF TERR.-ROSE HILL-RUGBY HILLS , ROSE HILL, FORREST STREETS , NORTH DOWNTOWN , IX/BELMONT , CARLTON/BELMONT , BELMONT , LITTLE HIGH STREET/E. JEFFERSON STREET , WOOLEN MILLS , LOCUST GROVE , LOCUST GROVE EXTD , WOODHAYVEN , HOLMES & NORTH AVENUE , ORANGEDALE , WILLOUGHBY , DUPLEXES , DAVIS AVENUE, MARSHALL STREET AREA , FOREST HILLS , NORTH BELMONT , BELMONT LOFT , MELBOURNE , OLD FIFTH CIRCLE , OVERLOOK , WALKER SQUARE , JPA CONDOS , HOLSINGER CONDOS , CHERRY HILL , DOWNTOWN CONDOS , JOHNSON VILLAGE NEW ADDITION , ROCKCREEK CONDOS , Page 1 of 2 1/14/2013

14 COMMERCIAL EXHIBIT III ASSESSMENT CHANGES Due to General Reassessment with Parcel Counts by Neighborhood # OF PARCELS 32 PRESTON AVENUE , COURT SQ. & CENTRAL BUSINESS DISTRICT ,079,200 34A UVA AREA APARTMENTS ,021,900 34B WEST SIDE APARTMENTS ,075,100 34C EAST SIDE APARTMENTS ,900 34D DOWNTOWN APARTMENTS ,794, WEST MAIN ,380, NORTH & IVY ROAD ,540, LIGHT INDUSTRY-HARRIS STREET , FRATERNITIES , CHERRY AVENUE , FIFTH STREET EXTD ,173, BELMONT , EAST , HIGH STREET , MARKET STREET , CARLTON COMMERCIAL , ROSE HILL COMMERCIAL , FRY'S SPRING ,883, OFFICE CONDOMINIUMS , RETAIL CONDOMINIUMS , % INCREASE - General Reassessment 2013 AVERAGE ASSESSED VALUE Page 2 of 2 1/14/2013

15 20.00% EXHIBIT IV Assessment Trends 2.44% 15.00% 1.86% 1.20% 1.20% 1.70% 10.00% 1.40% 5.00% 8.94% 10.67% 10.65% 11.39% 15.34% 13.17% 1.25% 1.20% 0.00% 5.71% 0.59% 1.69% 0.79% 0.63% 0.56% -1.55% 0.00% -1.78% 0.78% 0.61% 6.24% APPRECIATION NEW CONSTRUCTION -5.00% TOTALS 10.34% 11.87% 11.85% 13.09% 17.78% 15.03% 6.96% 2.28% -0.76% 0.63% -1.22% 1.39% %

16 Exhibit V Assessed Real Estate Values Residential vs. Commercial Tax Years Total Assessments 1 Tax Year Residential Commercial Total $ Increase (Decrease) % Increase ,713,737, ,915,200 2,540,652, ,057, % ,756,954,800 1,085,276,600 2,842,231, ,579, % ,946,795,900 1,232,354,100 3,179,150, ,918, % ,268,204,100 1,327,245,400 3,595,449, ,299, % ,779,731,300 1,454,988,300 4,234,719, ,270, % ,295,319,400 1,575,840,600 4,871,160, ,440, % ,455,487,500 1,754,513,800 5,210,001, ,841, % ,491,907,200 1,817,663,100 5,309,570,300 99,569, % ,473,910,600 1,802,419,000 5,276,329,600 (33,240,700) -0.63% ,484,001,100 1,825,804,300 5,309,805,400 33,475, % ,484,340,100 1,816,810,000 5,301,150,100 (8,655,300) -0.16% ,387,657,800 1,848,747,700 5,236,405,500 (64,744,600) -1.22% ,396,182,400 1,836,975,200 5,233,157,600 (3,247,900) -0.06% ,319,604,800 1,984,149,200 5,303,754,000 70,596, % 1 Figures shown reflect values due to general reassessment, new construction and building permits. 2 Value changes reflect additional value resulting from substantially complete building permits and changes resulting from appeals. New Construction Only Tax Year Residential Commercial Total ,228, ,602,500 19,818,800 35,421, ,525,300 27,079,600 54,604, ,818,700 30,270,000 65,088, ,158,600 25,432,800 47,591, ,616,400 24,322,100 60,938, ,753,800 9,723,100 30,476, ,415,500 23,778,700 42,194, ,918,900 18,215,700 33,134, ,878,700 18,903,000 29,781, ,985,300 33,937,300 40,922,600

17 EXHIBIT VI ASSESSMENT INFORMATION by Value Range 01/14/2013 # ASSESSED VALUES # RESIDENTIAL COMMERCIAL EXEMPT 2 TOTAL 1 VACANT IMPROVED TOTAL 1 ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES # ASSESSED VALUES < 50K ,812, ,660, ,151, ,018, , , , ,802, ,894, K ,366, ,819, ,546, ,305, ,086, ,218, , ,514, ,225, K ,581, ,035, ,546, ,730, ,421, ,308, , ,630, ,869, K ,783, ,321, ,461, ,475, ,569, ,905, , ,414, ,283, K ,040, ,288, ,751, ,389, ,084, ,305, , ,189, ,861, K ,361, , ,064, ,026, , ,489, , ,678, ,192, K ,286, , ,325, ,802, , ,153, , ,934, ,608, K ,444, ,444, ,750, ,468, ,282, ,490, ,235, ,725, K ,554, ,554, ,935, , ,494, ,461, ,461, K ,295, , ,832, ,366, ,450, ,915, , ,724, ,191, K ,153, ,153, ,787, , ,245, ,533, ,152, ,685, K ,379, ,379, ,668, , ,091, , ,051, ,621, K ,077, ,077, ,407, , ,773, ,860, ,860, K 81 54,678, ,678, ,846, , ,166, ,389, ,663, ,052, K 81 58,662, ,662, ,299, , ,579, ,220, ,203, ,423, K 49 37,933, ,933, ,219, , ,458, , , ,532, K 27 22,268, ,268, ,502, ,632, ,870, ,127, ,127, K 28 24,499, ,499, ,106, , ,240, , ,397, ,282, K 11 10,204, ,204, ,234, ,234, , , K 26 25,212, ,212, ,152, ,152, ,894, ,894,300 1 Million ,011, ,878, ,133, ,461,123, ,277, ,450,846, ,846, ,880, ,727, ,319,604, ,726, ,278,878, ,984,149, ,041, ,955,107, ,952, ,511, ,020,464,400 1 Includes vacant and improved parcels 2 Exempt count includes 13 parcels owned by utility companies, which are assessed and taxed by the SCC. Taxable Parcels Exempt Parcels Average Assessed Value Average Assessed Value Residential $ 254, Exempt Educational $ 4,285, Commercial $ 1,190, Exempt Other $ 1,358, Assessed Values Assessed Values Residential 3,319,604, Exempt Educational 389,952, Commercial 1,984,149, Exempt Other 630,511, Total 5,303,754, Total 1,020,464, Parcel Count Parcel Count Residential Exempt Educational 91 Commercial 1666 Exempt Other 464 Total Total 555 VACANT IMPROVED EDUCATIONAL 1 OTHER 1 TOTAL 1

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19 City of Charlottesville, Virginia HISTORICAL BUDGET REPORT The following report summarizes the changes to the local economy that have influenced the annual budgets over the past 10 years. For each year below, information presented includes total General Fund budget, % change over the previous year, and the revenue and expenditure drivers that have shaped the City of Charlottesville s Adopted budget. Summary Charts The following charts and graphs show the overall budget changes between FY 2005 and FY Graph 1: Total General Fund Budgets Original Appropriated General Fund Totals 160,000, ,000, ,167, ,000,000 Dollars 130,000, ,000, ,000, ,000,000 90,000, ,511,350 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Fiscal Year Graph 2: Percentage Change, General Fund Budgets % Increase General Fund Budget 14.00% 12.00% 12.08% 10.00% 8.00% 6.66% 7.51% 6.00% 4.00% 2.00% 0.00% -2.00% 5.91% 4.70% 1.82% 2.07% 1.30% 1.03% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY % Fiscal Year 1

20 City of Charlottesville, Virginia FY Total Budget: $105,511,350 % Change: 6.66% Revenue Drivers: Increased real property tax revenues of 10.56% over current year budget estimates; A $350,000 increase in meals tax; Increase in Lodging Tax Rate from 5% to 6%; Increase in the Cigarette tax from $.12 per pack to $.25 per pack; Increase in the E-911 Tax from $1.04 to $1.50 per phone line. The revenue from this tax can only be used to support the Emergency Communications Center. Increase in trash fees an average of 5% and creates a fee for large item pickup at $25.00 per occurrence; Various increases to building permits and fees, directly related to construction in the City; Various increases in public safety related fees such as fingerprinting, report copying and false alarm fees; and Rate changes for electric and gas utilities as a result of deregulation adopted by the State legislature. These rate changes would only apply to industrial and commercial customers, and not to residential customers; Several local revenue sources are showing dramatic decreases. These include Bank Stock Tax, down $400,000, mostly due to bank mergers; and interest earned is decreasing by $140,000. Expenditure Drivers: o Fully funds the school s request with an additional $1,125,000, for a total of $30,620,025; o Creates a Fund Balance Target Adjustment account designed to maintain the City s unappropriated fund balance at 12% of General Fund budgeted operating expenditures at the end of the fiscal year; o Allocates $3.64 million from the General Fund to the Capital Fund; o Includes funds for a 3% across the board salary increase, market rate adjustments to salaries and an increase in the minimum wage to $9.00 per hour ($1.6 million); o Increases Tax Relief for the Elderly by $195,000 due to increasing the asset limit from $100,000 to $125,000; o Reflects several overhead charges, budgeted directly to departmental budgets for the first time, including Workers Compensation and HVAC charges, of over $650,000; o The Adopted Capital Improvements Program for FY provides $8.8 million for education, $375,000 for the Jefferson School (including additional funds from prior years for a total of $1.3 million), $268,270 for economic 2

21 City of Charlottesville, Virginia o o o development initiatives, $2.45 million for public safety, $1.5 million for facilities maintenance projects, $903,000 for transportation and access, $1.24 million for Parks and Recreation, $1.24 million for neighborhood development projects, $227,400 for other commitments, $112,683 for Percent for Art and $895,500 in the Contingency account, for a total of $18.4 million. A $50,000 increase for debt service payments. A $241,161 increase for costs associated with the Comprehensive Services Act. A $700,000 increase for the Regional Jail. FY Total Budget: $111,747,772 % Change: 5.91% Revenue Drivers: o The reduction of the Real Property Tax rate by 4 cents, from $1.09 per $100 assessed value in FY05 to $1.05 per $100 assessed value in FY06. o Real Estate assessment increases resulted in $3,300,000 in new Real Estate Tax revenue; o Business and Professional License revenue increased by $365,662; o A 5% increase in Meals Tax revenue; o A decrease of $850,000 in Waste Removal revenue due to the elimination of Commercial Trash service. Expenditure Drivers: o Fully funds the School s request with an additional $1,480,000, for a total of $32,100,025, an increase of 4.83%; o Budgets the Fund Balance Target Adjustment account at $400,000; o Increases the local contribution to the Comprehensive Services Act by $200,000, for a total budget of $1.8 million; o Allocates $3.84 million from the General Fund to the Capital Fund (3.4% of General Fund expenditures); o Includes funds for a 4% across the board salary increase starting July 1 st and provides a reserve of funds for public safety retirement adjustments, a total of $1.5 million budgeted; o Reflects a 6.9% increase in the City s contribution for employee retirement benefits as required by the City s retirement actuary and accounting standards, and a 15% increase in the city contribution for employee health insurance; o Increases Rent and Tax Relief program costs by $229,000; o Reflects an increase in departmental charges for fuel and vehicle maintenance for a total General Fund impact of $570,000; 3

22 City of Charlottesville, Virginia o Budgets a Computer Replacement Reserve account, in the amount of $146,000 citywide, the purpose of which is to save funds, in a roll-over account, for the future replacement of desktop computers. o Budgets $5.7 million for debt service payments; in addition, 25% of the Meals Tax revenue will contribute an additional $1.5 million to the debt service fund; o Increases the contribution for the cleanup of the Ivy Landfill by $350,000, for a total budget of $700,000, a required mandate by the State Department of Environmental Quality; o Eliminates, city wide in all funds, a total of Full Time Equivalent (FTE) positions through staff reorganization, attrition, taking advantage of future retirements and/or the elimination of vacancies. Out of this number, 10 are General Fund FTE s, for total General Fund savings of $657,316. This is the first major staffing reductions in City government in over a decade. o The budget also reflects major reductions in the following areas: Eliminates Commercial Trash pickup service, realizing a net savings of over $1.2 M; Reduces the Fire Department budget by an additional $100,000 to facilitate reorganization during FY06; Reduces various operational items in Public Works, including a reduction in street paving, funds available for snow vehicle repair, a reduction in domestic trash pickup due to lower tonnage, and various other line items, for a total savings of $178,000; o The Adopted Capital Improvement Program for FY totals $12.2 million including $1.37 million for education, $3 million for the Jefferson School, $2.85 million for public safety, and $2.19 million for neighborhood improvement and transportation projects. FY Total Budget: $120,145,206 % Change: 7.51% Revenue Drivers: o The reduction of the Real Property Tax rate by 6 cents, from $1.05 to $.99 per $100 assessed value in FY07; o Real Estate assessment increases resulted in $3,825,000 in new Real Estate Tax revenue o The Sales & Use Tax revenue shows an increase of 9.21% ($775,500) over the estimates from FY 2006; o Personal Property Tax Revenue increase by 19.64% ($886,744), due to changes in how Personal Property is assessed and reductions in Personal Property Tax Relief Act revenue; 4

23 City of Charlottesville, Virginia o A $400,000 increase in revenue collected from Interest Earned. Expenditure Drivers: o Eliminates a total of 6 full time positions (1 in the City Manager s Office, and 5 in the Fire Department) in the General Fund, for total net savings of over $159,290: o Reduces Parks and Recreation by $93,660 as a result of reducing hours and programming at pools and reducing the cemetery mowing contract by moving a portion of this service in-house. o Reduces the Police Department budget by $100,000 in attrition savings. In addition, this budget captures attrition savings citywide in the amount of $300,000. o Mandates City departments to identify and realize $154,455 in operational savings during the course of the fiscal year. o Reduces the contribution from the General Fund to the Capital Improvement Program (3% of General Fund expenditures) by $525,000, for a total proposed contribution of $3.3 million. o The City s contribution to employee Life Insurance is decreasing due to the rebidding of the City s existing contract, for savings totaling $85,576; o Provides the Schools with an additional $1,912,000, for a total contribution of $34,012,025, an increase of 5.96%; o Includes funds for a 4% across the board salary increase starting July 1 st ; o Proposes funding a new pool of money, $420,000, for the Housing Affordability Tax Grant Program; o Reflects a 9.8% increase in the City s contribution for general government employee retirement benefits, and a 17.8% increase for public safety employees, as required by the City s retirement actuary and accounting standards; and a 10% increase in the City contribution for employee health care costs; o Reflects increases in several fixed costs, including IT User fees, telephone charges, general insurance, workers compensation, warehouse charges, and HVAC fees, in the amount of $430,786; along with a $270,226 increase for fuel and vehicle maintenance; and an increase of $569,414 in utility costs. o Budgets a Technology Infrastructure Reserve account, in the amount of $134,836 in the General Fund, the purpose of which is to save funds for current and future replacement of the backbone of the City s information technology structure; o Budgets a combined $7.22 million contribution for debt service payments, from the General Fund, Meals Tax Revenue, and County Fires Service Fees. o Increases the contribution for the cleanup of the Ivy Landfill by $300,000, for a total budget of $1,000,000; o Funds school bus replacement schedule (increase of $239,602), which is being fully funded by the City Schools; o Funds the first debt service payment for replacement of a 17 year old fire apparatus ($250,000); 5

24 City of Charlottesville, Virginia o o Budgets for an additional position in Neighborhood Development Services, a Zoning /Erosion and Soil Administrator, which will be fully funded by an increase in building fees and permit charges to developers. The Adopted Capital Improvement Program (CIP) for FY 2007 totals $12.62 million including $1,406,886 million for education, $950,000 for facilities capital projects, $3,689,102 for transportation and access, $962,065 for Parks and Recreation, $1,750,101 million for neighborhood improvement projects. FY Total Budget: $134,662,800 % Change: 12.08% Revenue Drivers: o The reduction of the Real Property Tax rate by 4 cents, from $.99 to $.95 per $100 assessed value in FY08; o Real Estate assessment increases resulted in $5,115,000 in new Real Estate Tax revenue; o The Sales & Use Tax revenue shows an increase of 11.96% ($1.1M) over the estimates from FY 2007; o Raised the Cigarette Tax from $.25 per pack to $.35 per pack resulting in an increase of $128,500 over the estimates from FY 2007; o Provides for $2,261,440 from the Virginia Communications Sales and Use Tax, a tax now being administered by the commonwealth of Virginia that rolls into it the E-911 Fee, Cable Franchise Fee and Utility Taxes for telephone and cable; o Business and Professional License revenue increased by 24.5% ($1,176,000) over FY 2007 Estimates. Expenditure Drivers: o Fully funded the City Schools request with an additional $4,328,584 for a total contribution of $38,340,609, an increase of 12.73%; o Employee Compensation and Training pool which includes the following: a 4% across the board salary increase starting July 1 st ($1.32 M), a pool of funds for market rate salary adjustments as they arise during the year ($250,000), adjustments to Police Department and Fire Department supervisory salaries to address compression issues and adds career development for firefighters and captains ($270,000); a salary adjustment to bring all regular employees up to at least $11.00 per hour ($23,000); and an employee parking benefit ($120,000) to help alleviate the parking issues faced by City employees who work in City Hall and the Annex. 6

25 City of Charlottesville, Virginia o Budgets the local contribution to the Comprehensive Services Act at $2.26 million. This is a State mandated program; o Reflects increases in the City s contribution for general government employee and public safety employees retirement benefits, as required by the City s retirement actuary and accounting standards, (a total increase of $1.13M); o Budgets a $5.932 million General Fund contribution for debt service payments. In addition, 25% of the Meals Tax Revenue will contribute an additional $1.68 million to the debt service fund; o Budgets the contribution for environmental remediation of the Ivy Landfill at $610,000, a required mandate by the State Department of Environmental Quality; o Reflects a net increase in funding to the Regional Jail, the Emergency Communications Center and the Blue Ridge Juvenile Detention Center by $162,555; o Increases funding to various arts, educational and human services agencies by $631,877; o Implements an EMS/Ambulance service at an initial cost of $966,122. A billing service, that will bill insurance providers and Medicare, will be in place that is projected to generate $414,375 in revenue for the second half of FY The remainder of the operational costs will be covered by FY 2006 fund balance surplus. o Adds a new Assistant Traffic Engineering position in Neighborhood Development Services, at a total cost of $80,000; o Includes funding for expanded and improved services provided by Parks and Recreation: Expanded after school youth programs - $69,875 Increased funding for grounds and tree maintenance - $173,770 Improvement and expansion of various community events - $20,300; o Provides for a 6-day per week refuse pickup on the Downtown Mall ($25,000); o Adds Sunday service for Charlottesville Transit Service s Route 7, Free Trolley and JAUNT at a cost of $129,030 and offers a piloted Fare Free Month to all Charlottesville Transit Service riders, ($30,000); o Expands the Charlottesville Housing Affordability Tax Grant Program eligibility requirements by increasing house value limits to $350,000, and providing grants on a differential basis depending on income limits ($500 grant for eligible applicants making less than $25,000 and $350 for eligible applicants making $25,000 to $50,000); o A General Fund contribution of $3,665,259 to the Capital Improvement Program; o A $250,000 General Fund contribution to the Charlottesville Affordable Housing Investment Program. 7

26 City of Charlottesville, Virginia FY Total Proposed Budget: $140,992,521 % Change: 4.70% Revenue Drivers: o Real Estate Assessment increases resulted in $2,717,908 in new Real Estate Tax revenue; o Increases the amount received from the Virginia Communications Sales and Use Tax by $1,189,830 (52.61%), a tax now being administered by the Commonwealth of Virginia that rolls into it the E-911 Fee, Cable Franchise Fee and Utility Taxes for telephone and cable; o Transient Room Tax revenue increased by 16.67% (385,000) over FY 2008 estimates; o Eliminates Virginia ABC Tax profits previously collected from the State for a decrease of $48,147; o Provides for a decrease of $123,932 in State Aid for Police Protection; o Decreases amount received for Business and Professional Licenses by $176,000 (-2.95%). Expenditure Drivers: o Fully funds the City Schools request with an additional $1,440,922 for a total contribution of $39,781,531, an increase of 3.76% from FY08; o Employee Compensation and Training pool includes the following: a 4% across the board salary increase starting July 1 st ($1.44 M), a pool of funds for market rate salary adjustments as determined by a salary survey conducted ($350,000), and continues to account for attrition savings that will occur during the year as vacancies occur and are not filled ($300,000 in savings); o Increases the local contribution to the Comprehensive Services Act, a State mandated program, by $139,912, for a total budget of $2.4 million; o Reflects a decrease in the City s contribution for general government employee and public safety employees retirement benefits, as required by the City s retirement actuary and accounting standards, due to strong fund performance (savings of $242,258); o Reflects a 2% increase to the City s contribution to health care, an increase of $87,003; o Includes increases in fixed costs, such as IT User fees, general insurance, workers compensation, warehouse charges, HVAC fees, and vehicle maintenance and fuel charges, totaling $127,374; o Budgets a $6.05 million General Fund contribution for debt service payments, which continues to include $350,000 dedicated to the replacement of fire apparatus. In addition, 25% of the Meals Tax Revenue will contribute an additional $1.76 million to the debt service fund, and $100,000 is dedicated to debt service from the County Fire Service Fee Revenue to pay off loans for previously purchased fire apparatus; 8

27 City of Charlottesville, Virginia o o o o o Includes a contribution for environmental remediation of the Ivy Landfill of $1,500,000, a required mandate by the State Department of Environmental Quality; Reflects a net decrease in funding to the Regional Jail, the Emergency Communications Center and the Blue Ridge Juvenile Detention Center, resulting in savings of $88,335 Increases funding to various arts, educational, human services agencies and civic organizations by $276,077; Reflects an increase in the recycling and refuse collection contracts in the amount of $79,315; o Includes a building maintenance budget for the new Juvenile and Domestic Relations Court Building, expected to be occupied by January 2009, in the amount of $102,642, which is partly offset by revenues from Albemarle County and will cover their cost of occupying the building; Adds a new Building Inspector position in Neighborhood Development Services, at a total cost of $79,800, to be offset by increases in building permitting fees. o Provides funding for expanded transit system service, at an additional $380,000. This expanded service will add four new routes: New Route 3 Service between Downtown and Belmont. This route will offer buses every 30 minutes Monday-Friday morning and afternoon and every 60 minutes at all other times Monday-Saturday. This is an increase in service compared to the current buses every 60 minutes. New Route 3 is budget neutral because it is a reallocation of funds being spent on current Route 3A and 6B. New Route 6 Service between Downtown, Ridge Street, and UVA Hospital. Similar routing to night Route 22. This route will offer buses every 30 minutes Monday-Friday morning and afternoon and every 60 minutes at all other times Monday-Saturday. New Route 6 is budget neutral because it is a reallocation of funds being spent on the current Route 6A. New Route 8 Service between Downtown, Kmart, and Seminole Square, including new service to Barracks Road Shopping Center. Buses will be available every 30 minutes Monday-Friday morning and afternoon and every 60 minutes at all other times Monday-Saturday. The New Route 8 replaces Route 6B and will cost an additional $380,000. New Route 9 Service between Downtown, 10 th & Page, UVA, Rose Hill Drive, Greenleaf, and CHS. This route will offer buses every 60 minutes at all times Monday-Saturday. New Route 9 is budget neutral because it is a reallocation of funds being spent on the current Routes 3B and 6B. o As a result of closing Smith Pool during the construction of the replacement facility, over $200,000 was saved out of the Aquatic Budget and has been reallocated within Parks and Recreation that expand current programs or provide new recreational programs for the community: Recreation summer youth programs transportation, summer camp staff, supplies and training - $100,580 After school/trip Program - $38,758 9

28 City of Charlottesville, Virginia o o o Lewis and Clark Summer Explore Camp - $7,384 Mobile Aerobic Group Cycle Program - $10,000 Family Camp-In at Local Park - $2,550 Expansion of Key Recreation and Carver Recreation Centers Hours - $4,056 Youth Center Programs and Blue Ridge Commons - $2,704 Increase offerings of Therapeutic Programs - $8,500 Increases the house value for the Charlottesville Housing Affordability Tax Grant Program to $365,000 and increases the grants provided depending on income limits ($525 grant for eligible applicants making less than $25,000 and $375 for eligible applicants making $25,000 to $50,000). Continues for a third summer and expands the Summer Youth Internship Program for a third summer ($63,242), providing 60 students, aged 14-18, with an opportunity to work and be exposed to different job settings with City departments, City schools and various non profit agencies. Provides funds for and develops, in partnership with the Health Department, a community wide health program, in the amount of $10,000. FY Total Proposed Budget: $142,443,480 % Change: 1.03% Revenue Drivers: o Real Estate Assessment increases resulted in only $64,490 in new Real Estate Tax revenue, a 0.13% increase over FY 2009 revenue estimates; o Increases the amount received from the Virginia Communications Sales and Use Tax by $128,730 (3.73%), a tax now being administered by the Commonwealth of Virginia that rolls into it the E-911 Fee, Cable Franchise Fee and Utility Taxes for telephone and cable; o Transient Room Tax revenue decreased by 11.13% (300,000) over FY 2009 estimates; o Personal Property Tax revenue decreased by $427,000 or 6.37%; o A decrease of $266,048 (-11.12%) in State Aid for Police Protection; o Decreases amount received for Sales and Use Tax by $575,000 (-5.48%); o Increase in City/County Revenue Sharing funding by $4.4 million. Expenditure Drivers: o The net permanent reduction in General Funded Full Time Equivalent (FTE) positions is 9.0, while the total net permanent reduction in all funds is 15.8 FTE s. o Eliminates 2 full time positions in Parks and Recreation, a Volunteer Coordinator and a Gardener, resulting in savings of over $108,245; 10

29 City of Charlottesville, Virginia o Completely eliminates the proposal for a City administered EMS/Ambulance Service, resulting in net savings (after accounting for billing revenue) of over $300,000 and reduces the City s FTE count by 7 positions which were created but never filled; o Eliminates an Intern position from the City Manager s Office, a funding reduction of $11,440; o Eliminates chipping and leaf temporary staff in Public Works, total savings of $28,312, proposing instead to use inmate labor for these functions, which they are currently doing; o Eliminates four intern positions in Neighborhood Development Services, resulting in savings of $24,000; and o City Schools will receive an additional $428,081, an increase of 1.08%; o Increases the local contribution to the Comprehensive Services Act, a State mandated program, by $550,000, for a total budget of $2.9 million. This increase can be attributed to a reduction in State reimbursements for this program and changes to the local match requirements for congregate care and the unknowns this is creating in determining future cost of CSA services; o Reflects an increase in funding to the Regional Jail, the Emergency Communications Center and the Blue Ridge Juvenile Detention Center, total new funds of $240,148; o Reflects reduced contribution to Charlottesville Transit Service totaling $196,537 in savings, while maintaining the same level of service; o Reduces the City s obligation for Landfill Remediation by $750,000; o Maintains the same level of criteria for the Tax and Rent Relief Programs and the Homeowner Tax Grant Program, but reduces the budgets for these programs by $84,748 to reflect actual costs; o Across all city departments, budgets were streamlined and reduced to better reflect the actual cost of doing business or to take advantage of areas where a service can be provided in a more cost efficient manner, resulting in total cost savings of over $600,000; o Net increase in fixed costs allocated out to departments, including HVAC Charges, Information Technology support fees, Risk Management fees, vehicles fuel and maintenance and fees associated with Warehouse operations, in the amount of $173,512; o Increase in the City s contribution to the Retirement Fund in the amount of $105,971; and o Reflects the City s contribution to Life Insurance, an increase of $50,070 due to revised rates from our provider. Council Priority Initiatives o Includes a pool of funds for Council Priority Initiatives, established to provide a means for Council to initiate new programs or expand existing programs related to the Community Priorities established by Council. $112,100 is allocated for programs focus on workforce development: 11