THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, February 10, 1995 TAG: 9502090198
SECTION: VIRGINIA BEACH BEACON PAGE: 10 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
LENGTH: Medium: 55 lines
City Council is trying to decide whether to keep the controversial stormwater management fee as is, or turn it into a tax.
The fee, which has been in place since July 1993, generates about $6.4 million a year for stormwater drainage, flood control and pollution monitoring of stormwater. Homeowners pay $32.88 per year; businesses and residents of multi-family units pay on a slightly different scale.
Councilman John D. Moss says the fee isn't fair and doesn't make economic sense for the city or the taxpayers.
He suggested Tuesday that the council either cut its operating budget or increase property taxes by 3.7 cents - or $37 for the owner of a $100,000 house - instead of collecting the fee.
The council delayed action until next week, but seemed to agree that the city manager should consider the possibility of changing the collection method when he draws up next year's operating budget.
In arguing for the switch, Moss said it costs more money to collect a fee than a tax, because the city has to mail out extra bills - in addition to the real estate tax bills it already sends. It also costs residents more as a fee than a tax, Moss said, because residents who itemize on their federal taxes can deduct local taxes, but not fees.
Switching from a fee to a tax would also make some landowners pay more and some less, Moss said. Churches, synagogues and other non-profit institutions must pay fees, but are exempt from taxes; farmers must pay taxes but do not have to pay the fee.
Moss said under the fee, single-family homeowners account for about $3.5 million, multi-family homes account for $560,000 and non-farm businesses account for $2.28 million. If the same amount of money were collected as a tax, single-family homeowners would provide $4.3 million, multi-family homeowners would provide $685,000, non-farm businesses would provide $1.17 million and farmers would contribute $30,280.
When several members asked to defer discussion until the budget process starts next month, Moss got annoyed, accusing them of trying to kill his proposal with delays.
Council member Louisa M. Strayhorn responded angrily, saying that her interest in a deferral was sincere, that she simply didn't understand the possible impacts of the change.
City Manager James K. Spore had said before the meeting that the fee makes sense as is. The city is in the process of trying to develop a new, more cost-effective way of collecting the fee, he said.
``There is a need to do the stormwater work that's being done,'' said Phillip A. Davenport, administrative services coordinator for the public works department. ``How it's paid for is a council decision.'' by CNB