Henrico supervisors approve $1.67-billion budget

The Henrico Board of Supervisors Tuesday unanimously approved a $1.67-billion operating budget and $316.8-million capital budget for Fiscal Year 2023-24, which begins July 1.

As part of the budget plan, general government and school system employees will receive merit-based pay raises of 8.2% – their largest comprehensive increase in more than 30 years. Additionally, the board formally approved a 10-cent tax-rate reduction (from $3.50 to $3.40 per $100 of assessed value) to the vehicle personal property tax rate, as well as a two-cent (per $100 of assessed value) tax credit for property tax payments.

The budget also increases the Real Estate Advantage Program maximum annual real estate tax exemption from $3,000 to $3,200 for seniors citizens, residents who are entirely and permanently disabled, and their spouses.

And, additional tax relief for seniors 65 and older in the county likely is coming next year.

At a recent board work session, supervisors asked county finance officials to consider a way to essentially cap the annual tax burden of eligible seniors in the county. Henrico Finance Director Sheila Minor told supervisors Tuesday that she would be back later this year with a plan to achieve that goal beginning in 2024.

“We are looking at doing some sort of freeze for taxes, but we’ve not gotten there because of certain constitutional questions, which I think can be overcome,” County Manager John Vithoulkas said, crediting Three Chopt Supervisor Tommy Branin with initiating the idea. “I believe there’s more [tax relief] coming.”

Vithoulkas and Minor told supervisors that no state locality has in place a tax freeze for seniors that would be as expansive as the one the county is considering.

County resident Bruce Richardson asked the board to consider extending the application deadline for the REAP program beyond April 1 to allow more seniors to participate. Minor responded that the deadline was necessary in order to ensure that eligible REAP participants don’t receive a tax bill by error, since officials begin sending them as soon as the board approves its budget. But, Minor said, officials would always attempt to accommodate eligible residents after the deadline whenever possible.

Responding to comments from a speaker who was frustrated that his real estate assessment was up 20% this year, Brookland District Supervisor Dan Schmitt pointed out that the costs incurred by the county on an annual basis are rising by similar amounts.

“I just don’t know how this county progresses and gets better, like we are committing to [without having necessary funding in place] – and we’re not sitting on this windfall,” Schmitt said.

Localities are required to assess properties at fair market value each year. The process takes a number of months to complete, given the number of properties in the county.

Minor also pointed out that the county’s residential tax burden (defined primarily as the combination of real estate and personal property tax rates) is the lowest among the 10 largest localities in Virginia. Henrico, she noted, also doesn’t charge a water/sewer utility tax, a natural gas utility tax, a stormwater utility tax or ambulance, admissions or cigarette taxes – unlike many other state localities.