THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Tuesday, February 18, 1997 TAG: 9702180294
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY TERRI WILLIAMS, STAFF WRITER
DATELINE: SUFFOLK LENGTH: 81 lines
When the lights go out in Bennett's Harbor, the taps go dry too.
That's because the neighborhood, in Suffolk's northern Sleepy Hole borough, relies on a well system. And without electricity, the pump doesn't work.
Yet residents pay the same tax rate as their neighbors in new developments nearby that have water and sewer lines. And that doesn't sit well with Talmadge C. Jones, president of the Suffolk Federation of Civic Leagues.
``My question is what am I getting for my money? What in the heck is the city doing?'' he said.
It's a question many residents may be asking when the city holds a public hearing Wednesday to consider changing or keeping the base tax rate of $1.03. A hearing is required by state law when a locality's real estate assessments have increased by more than one percent. In Suffolk's case, that's 1.03 percent.
The base city-wide tax rate is $1.03 per $100 assessed value - $1,030 a year for a $100,000 house. The state law that triggers the meeting also would change thecity's base rate to $1.0297 per $100 of assessed value - a savings of 30 cents per year on a $100,000 house.
On Wednesday, the council could vote to leave the rate unchanged, lower it or increase it. City Manager Myles E. Standish has recommended keeping it at $1.03.
In a year where this city is witnessing unparalleled growth, city leadership is grappling with ways to meet the needs of new and existing residents.
They've talked about charging developers more money for the houses they build. Officials and citizens also are finding ways to manage growth through the Comprehensive Land Use Plan.
Yet citizens' pocketbooks will get a double hit this year: city leaders also have said the city needs a property tax increase. How big an increase will be decided Wednesday.
Council members say there are several options to raise revenue or quickly meet the service needs of citizens.
Special taxing districts are one way residents could get new sidewalks or lights. Semi-annual collection of real estate and personal property taxes is another method of adding interest money to city coffers. A few years ago, the East Suffolk Gardens community assessed itself to pay for sidewalks.
``That might be a solution to some of our problems,'' said Councilman Leroy Bennett, who represents the Nansemond borough. ``It's something to consider.'' He said he doesn't know how he'll vote on the tax rate.
His colleague, Councilman S. Chris Jones, believes tax districts should be considered. Special tax districts aren't arbitrary. A majority of residents must petition for them, and a public hearing is scheduled before a council vote is taken.
For years, the council considered giving the city one uniform rate. But council members say it would be difficult to institute a citywide tax rate because service needs in Suffolk are so diverse. Citizens in the downtown Suffolk taxing district pay an additional 18 cents per $100 for public services. There's also a special taxing district in the Harbourview area that pays $1.22 per $100.
``I think there is a wise use when it can't be easily produced citywide,'' said Jones, who prefers keeping the base rate at $1.03.
Councilwoman Marian ``Bea'' Rogers, who represents Sleepy Hole, said special districts wouldn't work because the rural areas most in need don't have the population density to support the added tax burden. Instead, Rogers said, the city needs to be more aggressive in attracting more commercial industry.
Councilman Curtis R. Milteer said a transfer fee could raise revenue. Such fees are generated from a charge assessed at the closing of every real estate transaction. Milteer also is advocating a two-cent decrease in the tax rate.
Other council members support collecting real estate and personal property taxes twice a year, instead of at the end of the year. Proponents say the practice evens out the city's cash flow and increases interest earnings. Additionally, taxpayers would not have to pay a large sum at one time.
Two years ago, the council voted against the measure mostly because many farmers opposed it. Farmers receive most of their income at the end of the year when they sell crops.
But now, the idea is gaining ground.
``I like the idea. I don't know how (farmers) feel about it now. But we don't have as many farmers as we did then,'' said Bennett.
In the meantime, Talmadge Jones hopes city leaders will find answers. He's tired of paying taxes. When he moved to Bennett's Harbor in 1972, he paid about $200 in taxes. That's since increased to $2,000.
KEYWORDS: SUFFOLK CITY MANAGER TAX