Dear Editor,
Understanding and appreciating the difficult job the Bath County Board of Supervisors does, the hardest decision the board makes annually is adopting the annual fiscal year plan (budget) and setting the tax rate.
This year would be especially difficult to determine the budget and tax rate during these unprecedented pandemic times of citizens and businesses economic suffering.
When the board took office less than five months ago, none of the members would have imagined our community would see our major employer shuttered for months or our travel and tourism economy ailing.
This letter shares public information Bath County makes available to access and get to know and become involved with Bath County government.
There is no doubt the board of supervisors used and knew this information in advance of making the decision at the May 12, 2020 board of supervisors meeting to set the real estate tax rate at $0.55 per $100 of assessed value. Of note is the following easily accessible public information:
• From Bath County Treasurer’s Accountability Balance Sheet Report as of April 30, 2020:
– General Fund Balance: $6,068,532.39;
– Total actual budget revenue amount appropriated to use: $17,283,081 of which $9,952,029.16 available with $7,341,051.84 remaining;
– Under General Fund Balance appropriated as part of the $17,283,081 revenue from 2019 Unassigned General Fund Balance: $1,809,284 ($0 used and $1,809,284 available).
• From County of Bath, Virginia Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ending June 30, 2019:
– Relevant Finance Policies section of CAFR Letter of Transmittal describes the Bath County Fund Balance Policy goal to maintain a fund balance for cash liquidity purposes of 20 percent of the total annual appropriated expenditures;
– Unassigned General Fund Balance: $7,841,447 – 48.92 percent of appropriated expenditures (Amount above the policy of retaining 20 percent is available for spending as county determines);
– County Revenue Bond Debt: $3,125,000 ($1,020,000 payment due June 15, 2020 and last payment due June 15, 2022);
– 2019 Real Estate Tax Rate: $0.50 per $100 of assessed value;
– General Real Estate Property 2019 Assessed Value: $881,058,000 (2010 Assessed Value: $796,900,200);
– Public Service Corporation Property 2019 Assessed Value: $1,411,711,020 (2010 Assessed Value: $974,004,236);
– 2019 Total Property Tax Revenue Received: $11,511,516 (2010 Total Property Tax Revenue Received: $9,701,561).
• County of Bath, Virginia Adopted Annual Fiscal Plan Ending June 30, 2021
– Real Estate Tax Rate: $0.55 per $100 of assessed value effective July 1, 2020;
– Total Property Tax Revenue estimated: $1,179,000.
After reviewing the facts and figures publicly available and noted in the above list, answers to the following questions have been respectfully requested of the board of supervisors:
• What will the General Fund Balance appropriated amount of $1,809,284 in the current Fiscal Plan ending June 30, 2020 revenue be used for prior to June 30, 2020?
• If the appropriated portion of the General Fund Balance of $1,809,284 is not used as of June 30, 2020, will it be shown in the Unassigned General Fund Balance CAFR ending June 30, 2020? Will it be added to the Unassigned General Fund Balance available as of July 1, 2020?
• Looking inward at and knowing the current economic state of the community, please share why the real estate tax increase was needed?
• Is the Unassigned General Fund Balance nearing the 20 percent level of the Fund Balance Policy?
• What will the projected property tax revenue of $1,179,000 be allocated for spending? Will it be added to the Unassigned General Fund Balance? If added to the Unassigned General Fund Balance, will it make the balance 50 percent or more well in excess of 20 percent County Fund Balance Policy?
• When will the next real estate property assessment occur?
• When the $3,125,000 debt is paid off within the next couple of years, the more than $1,000,000 annual payment will no longer be an expenditure.
What is the county’s short-term and/or long-term plan for the additional $1,000,000?
Bath County is dominated by the travel and tourism industry providing accommodation and food services making up more than a third of employment in the County. The Omni Homestead Resort is the largest employer, employing approximately 850. For every 100 jobs supported directly from travel and tourism, an additional 55 jobs support the industry. Since March 15, 2020, more than 450 Bath County residents have filed for unemployment benefits.
The commonwealth of Virginia reports Bath County with the highest unemployment rate per capita in the state.
The closure of the resort has had an adverse economic impact on those that were employed there and on the additional county businesses that support the travel and tourism industry. For example, prior to March 15, 2020 with a low unemployment rate, 29.6 percent of Bath County homeowners were cost-burdened, spending more than 30 percent of their income on homeowner expenses having less disposable income to spend.
With consumer confidence low and unemployment remaining high, the ability to look out for our own community, their food insecurity and needs for which Bath County is known for is more important now than ever before and extremely appreciated by those in need.
On behalf of the Bath County community to help with the need, the board is being requested to take action to rescind the real estate tax rate of $0.55 and adopt real estate tax rate of $0.50.
The service of the board of supervisors to Bath County and all they do for the county is truly appreciated.
Respectfully,
Claire A. Collins
Sam Snead Highway, Hot Springs
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