In an e-mail on Aug. 12 to a citizen‘s question regarding The Seven Projects, Virginia Beach Mayor Sessoms commented on two particular issues of paramount importance to all citizens: Our real estate tax and the potential new, additional tax revenue that would be necessary to fund 7 new projects.

Regarding real estate taxes: The Mayor stated in his e-mail, “The good news is that the average homeowner in Virginia Beach is paying $157 less in real estate taxes this year than last year.”

While some citizens paid less in real estate taxes this year, others paid about same and still others paid a little bit more in real estate taxes.

The reduction in real estate taxes paid had to do with the reduction in real estate assessments and had nothing to do with the real estate tax rate.

In fact, the Virginia Beach City Council retained the same real estate tax rate as in the previous year. So the only reason for the reduction in real estate taxes was the decrease in the value of assessments.

Regarding tax revenues: The mayor stated, “Some of these projects will add new revenues and, therefore, help to take some of the tax burden off our residents.”

Let’s review each of the projects in terms of “new revenue.”

First, the recreation center will increase city costs for operation and maintenance and additional employees to operate the new rec center.

Second, extending Lynnhaven Parkway could eventually, if the area develops with commercial and residential in the area, result in increased real estate taxes and potentially sales taxes. Presumably, the additional taxes would exceed the cost of the new roadway.

Third, open space could possibly take tax paying facilities off the roles.
Fourth, a new animal shelter will increase costs.

Fifth, two new fire stations will add to city costs in maintenance and for additional fire fighters. If the new stations are replacements for the old, then minimal increase in maintenance expenditures.

Sixth, Burton Station improvements may increase local values and result in a slight increase in real estate taxes.

Seventh, a new research and development fund would duplicate the fund that already exists in the Economic Development Authority.
Eighth, a suggested bicycle path development would add costs in terms of the maintenance of the path and probably not increase local real estate taxes.

In summary:

Council can take no bows for the slight decrease in real estate taxes.
The Lynnhaven Parkway project is the only one with a real possibility to increase tax revenue.

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