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Three farmers criticize Highland tax increase
BY JAMES JACENI CH • STAFF WRITER
MONTEREY - Forty-three chairs were arranged in rows and columns in the back of the room during the public hearing at the Highland Modular Conference Center Monday night, but only four people sat in them. Twelve chairs were evenly spaced about the "U" shaped assembly of folding tables at the front half of the room.
The three member board of supervisors and the county administrator sat at the top of the "U," facing the rear of the room and three farmers sat to their left.
While no one spoke in favor of the proposed property tax rate increase, three farmers - Jacob Hevener, Jim Cobb and Lee Blagg - spoke against it.
The attendees in the back of the room - circuit court clerk Lois Ralston and her deputy, Bill Ellenburg; treasurer Lois White and sheriff's officedeputy Ron Wimer - listened without comment.
The 2008-09 budget, as proposed and presented at Monday's Highland County Board of Supervisors public hearing showed gains of less than 3 percent across the board - in estimated revenues (2.33 percent), expenses (1.12 percent), county expenses (1.12 percent), social services expenses (.25 percent), school expenditures (2.4 percent), and included a decrease in comprehensive services of .58 percent. The total proposed 2008-09 budget is $7,123,543. Total revenue is expected to increase $162,435 and expenses are expected to go up $78,913.
The 2008-2009 budget is partially funded by a real estate tax-rate increase of 2 cents to 40 cents per $100 of assessed value, a 5 percent increase over last year. The personal property levy is proposed to remain at $1.50 per $100 of value on all tangible personal property located in Highland County on Jan. 1.
Local revenue accounts for 47 percent of the budget while state, federal and other sources accounts for the remaining 53 percent, said county administrator Roberta Lambert.
"Seventy three percent of revenues come from the real estate tax," said Lambert. Six percent comes from personal property. These are the top two sources of local revenue, she said.
"Highland was the No. 1 locality (in Virginia) to receive the most of its local revenue in real estate taxes," said Lambert. "I don't think that's changed. I think we are still in the lead."
Hevener was the first to speak after the opening of the public hearing. "The local assessment made in 2006 was too high for what it is today," Hevener said. "I'm having to struggle to make ends meet on the farm to pay the tax. Two cents will cost us more than 600 bucks …"
Two cents on a $100 valuation equates to $20 on $100,000 and $600 on $3,000,000.
"That's more than some people pay taxes, period," said Hevener.
He said the school budget was too high. "I can't handle $17,000 per student," he said. "A state student can go to James Madison for $10,000-$12,000."
JMU's budget for 2007/08 was $363.1 million, divided by an estimated student population of 17,000 makes the average spent per student $21,259. Students are required to pay tuition of around $6,666 per year in state, more if from out of state.
Hevener said the school budget has risen significantlyover the past fiveyears, from not quite $3 million in 2003 to $4.5 million this year.
"That's a tremendous raise," said Hevener. "If they didn't need it to run the school in 2003, how come we need another million and a half to run the schools now? That doesn't make sense to me. That's too much."
The school administration this year, on the other hand, said it was not enough.
He added that the county budget other than the school went up half a million dollars, which, in his opinion, was too much. He made no suggestions where money could be cut from the county budget.
"Our wants are greater than our needs," Hevener said. "On the farm, there are a lot of things I'd like to have. I can't make enough rent off the land to pay the taxes. The taxes for six months is almost as much for a full year 10 years ago. The budget went up like the dickens in 2004-05-06 … You have to think where it's coming from," he said. "The day of reckoning has come. Something has to change."
Hevener added, "I've got some beautiful views, but I don't see no revenues from it."
"It's not your fault," former supervisor Lee Blagg of Doe Hill told the board. He blamed Richmond for the tax increase because they cut funding but maintained the mandates requiring money.
"Highland is a county of family farms. That's what makes Highland County what it is. There are three of us (in his family) attempting to keep the family farm intact … It's going to be close to $1,000 a month in taxes with this increase. Something has got to give."
A tax of $12,000 relates to real estate assessed near $3,000,000.
"For the past 25-30 years we've had a little group of people pitch a fitagainst anything that would generate income other than off of real estate … You can belly up to the table and vote for whatever increases for economic development in the county or you can start plans to merge with Augusta County because we're not going to be here.
"It's everybody's fault, for the past 20 years we let this little group of people run this county," he said. He did not say who "this little group of people" was.
"When you do away with the family farm, you shut down two feed stores immediately," Blagg. "You've got major problems the next few years. The (Highland County Public Schools) superintendent already said you've got to let teachers go." He alluded to the decreasing enrollment at HCPS that is predicted to go to 200 by the 2012-13 school year, from 259 anticipated for 2008-09. The current enrollment is 270.
"At today's rate it will cost $221,000 to educate a child from kindergarten through 12th grade."
"Everything else has gone up, but the price of cattle hasn't gone up," said farmer and planning commission member Jim Cobb. "I made $300 profit last year and I run a lot of cattle. Something has got to give, man."
Cobb asserted private schools could educate children for $5,000-$6,000 a year per student.
Rexrode said the county might have to consider that as an option. "We've asked the legislators to fund it if they mandate it, and they won't. If the state says cut, and they don't have the nerve to say where to fund it, we're not going to fund it for them," he said.
This year's budget includes a $36,000 cut mandated by the state that was passed on to the constitutional offices.
Rexrode said, "Actually instead of a 2- cent raise, this was a 4. We took 2 cents out of reserve to balance the budget. We're paying more than $100,000 over what is required this year. Composite index change gave the school an extra $600,000."
He explained that state mandates require the county to spend the money it does.
"We are looking at a reassessment next year - it redistributes the wealth," said Rexrode. "Land values seem to have dropped or land is not selling. People just don't have the money. Gas prices are hitting us.
"We need to be on our legislators and say enough is enough - it is falling on deaf ears," he continued. "The only way to make them listen is you've got to change the people that are running for office."
Highland County's state senator Emmett Hanger and delegate Chris Saxman easily won election last year. Saxman ran unopposed.
"The writing is on the wall, we have to deal with it," said supervisor Robin Sullenberger. "There is no pleasant way to look at it."
Supervisor David Blanchard said, "The school board is going to have to look at real solutions to the situation over there and how the county can work with them over there on that. At the current price of gasoline ($3.59-$3.65 a gallon in Monterey this week) a trip from Doe Hill is not a cheap trip anymore. It doesn't seem to be getting any easier. The county as a whole is being affected by that. Things are tough all over the state, but we certainly feel it the most relying on land tax as a primary revenue stream."
Rexrode said, "If growth doesn't happen, you will have tax increases every year, this is what will happen. We spend hundreds of thousands of dollars a year to have growth, and we'll probably spend more. (But) you need to control (growth) … I hope the school budget goes down (in the next few years). You can't keep the same number of employees with the amount of students you have in the future.
"We've gone through our county budget; you can't cut $5,000 from our budget and stay within guidelines," Rexrode said.
Cobb recommended not paying for unfunded state mandates as a way to send a message to the legislators in Richmond.
Lambert read from the text provided in the published public notice, "The Highland County Board of Supervisors at any continued meeting held by June 30, 2008 may alter the proposed budget and increase or decrease tax rates and fixtax levies as it deems necessary."
The notice also says "Inclusion in the proposed budget of any item or items does not constitute an obligation or commitment on the part of the Board of Supervisors of this County to appropriate any funds for that item or purpose. No funds will be allocated or distributed until there has been an appropriation by the Board of Supervisors."
Supervisors also held a public hearing on the solid waste collection and disposal budget. Revenue on solid waste is expected to increase $17,925, to $302,925, and expenses are expected to increase $7,273 to $288,659 with an anticipated surplus of $14,266. Annual enterprise fee rates are proposed to remain at $150 residential, $75 business low-density, $150 business low-density medium, $225 business medium density, and $300 business high density.
Supervisors closed the public hearing and continued the meeting to 7:30 p.m. Tuesday, April 29, when they plan to adopt the budget.
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