Centreville lowers tax rate, passes FY 2018 Budget
CENTREVILLE — The Centreville Town Council unanimously voted in favor of passing its fiscal 2018 budget during its Thursday, June 1, meeting at the Liberty building.
The budget totals are as follows: General Fund Operating Budget, $4,131,975; Enterprise Fund Operating Budget, $2,770,712; General Fund Capital Budget, $230,098; and Enterprise Fund Capital Budget, $3,818,572.
The enterprise fund is generated from user fees for town water and sewer. Major projects listed in the Enterprise Fund Capital Budget include $1,810,786 for sewer main and lateral replacement on both Commerce Street and Liberty Street, as well as another $1810,786 for replacement of the water main and laterals on Commerce and Liberty streets.
Both of the $1,810,786 figures will be added to the town’s debt, according to the spreadsheet.
In the General Fund Operating Budget, the town will spend $1,296,907 for public safety, $989,414 for general government, $937,733 for roads and $295,099 for solid waste. None of the other eight expenses listed, such as planning and zoning, parks and recreation and the cemetery, have expenses of more than $55,000.
During the town’s May 18 public hearing comments were made about using the Constant Yield Rate of $0.403 per $100 of assessed value rather than the proposed $0.41 per $100 of assessed value.
One of the reasons residents said they were upset at the proposed rate, which was the same property tax number as fiscal 2017, was because from fiscal 2016 to fiscal 2017 the rate increased by three cents.
Prior to voting on the budget, Ordinance 03-2017, Council Vice President Jim Beauchamp asked if his fellow council members would consider lowering the tax rate by a half-cent as the town projected about $83,776 transferred back into the general fund balance, about 2 percent of the total budget.
Newly elected councilman Jeff Morgan, who agreed with lowering the rate, asked to use the full Constant Yield Rate.
Council President Tim McCluskey said he was concerned that lowering the rate too much could mean they had to raise it again in the future. Through budget work sessions, McCluskey said the water and sewer rates could be increased in the future and that if the council were to lower the tax rate, it should “be as conservative as possible.”
The council unanimously voted to lower the property tax rate to $0.405 per $100 of assessed value.
“With the thought of any sort of utility rate increase, if we can offset that for every household with a little bit of a reduction in property tax I think that would be wise,” Beauchamp said.
The fiscal budget runs annually from July 1 to June 30.
The Town of Centreville Fiscal Year 2018 budget can be viewed in its entirety at www.townofcentreville.org.