Vithoulkas: County to issue 2-cent real estate ‘dividend’ because of surplus

For the first time ever, Henrico County is planning to issue a real estate “dividend” to property owners as the result of its historically strong financial situation, Henrico County Manager John Vithoulkas announced Thursday morning during his annual “State of the County” address at the Hilton Richmond Hotel and Spa in Short Pump.

Vithoulkas’s Fiscal Year 2022-23 budget will include a proposed 2-cent (per $100 of assessed value) dividend, based upon current property valuations, he told business leaders and county officials. It also will include a 2-cent tax decrease for the coming year, knocking the real estate tax down to 85 cents per $100 of assessed value. It would be the county’s 43rd consecutive year without a real estate tax rate increase.

Countywide, property assessments are expected to rise by a little more than 10% on average when issued in the coming months, Vithoulkas said.

The changes mean that the owners of a Henrico home valued at $300,000 this year would receive a $60 dividend from the county next year. If that home’s valuation increased by 10% and the additional 2-cent tax decrease took effect, its owners would pay $195 more in property taxes next year than they do this year (but $66 less than they would have at the current tax rate).

The county’s strong financial situation makes both the dividend and tax-rate decrease possible, Vithoulkas said. Henrico has a general fund balance (often known as a “rainy day” fund) of $413 million – its largest ever, and an amount that is equivalent to about 40% of the county’s annual expenses.

That percentage far exceeds even the county’s conservative budget requirement that the fund balance equal at least 15% of its annual expenses, Vithoulkas said.

During his address, Vithoulkas declared that his coming budget also would include “substantive” employee pay raises.

“We will continue to be the government pay leader in this region,” he said.

In addition, Vithoulkas announced plans to designate Innsbrook and the Westwood area (in the Near West End) as technology zones, in an effort to attract “cutting-edge businesses in research and development, and lab space.” Henrico will offer qualifying businesses in those industries with tax incentives to locate in the county, he said.

The idea was one championed for years by late Innsbrook developer Sidney Gunstock, who died in October. Including it in the coming budget came in tribute to Gunst and his legacy, Vithoulkas said.

The coming budget also will seek to provide more tax relief to seniors in the county, some 6,000 of whom currently participate in Henrico’s Real Estate Advantage Program (an effort to relieve the tax burden for those who are either 65 or older, disabled, or who meet other criteria).

Vithoulkas expects to see that number grow as a result of the new plan, details of which he did not announce but that may include increasing the maximum annual income and/or total net worth allowances as a way to make more people eligible.

Vithoulkas also discussed the county’s planned November bond referendum, which is expected to total more than $500 million and including funding for projects involving schools, public safety, parks, drainage and other infrastructure initiatives.

And, he highlighted the county’s intentions to use or seek federal funding in part to expand broadband service to all corners of the county (possibly within an 18-month period, if the efforts are successful) and to do the same with residential sewer service.

Vithoulkas also referenced the county’s strong development and redevelopment climate, citing a number of projects that have taken shape or been approved in the past year, including:

• the planned GreenCity ecodistrict at I-95 and Parham Road, a $2.3-billion private development;
• the redevelopment of Regency Square (where a new NOVA Aquatics facility is now part of the mix, and apartments are being constructed);
• the redevelopment of Virginia Center Commons, where Henrico is building a 4,500-seat indoor arena;
• Amazon’s construction of a 2.6-million square-foot robotics fulfillment center adjacent to Richmond Raceway;
• the recently announced planned expansion of the Mondelez facility in Eastern Henrico, which makes cookies and crackers.

In the coming year, Henrico officials are planning for the second phase of Glover Park in Glen Allen, as well as a new connector road to serve it, and for more substantive progress on Taylor Park in Sandston, a 100-acre site for which design will begin in earnest this year, preceding the start of construction in 2023.

The latter will feature playing fields, nature trails, a reinterpretation of the original farm, areas for active play and more, Vithoulkas said.

“We currently have nothing like this in our county,” he said.

Looking back at the past year, “I’m astounded by what we’ve accomplished,” Vithoulkas said, crediting the county’s board of supervisors for setting the foundation for the county’s efforts. “They’re strong, disciplined, engaged, collaborative, visionary and caring.”