Two-cent tax hike likely for most Urbanna homeowners

by Tom Chillemi –

The finance committee of the Urbanna Town Council is recommending a two-cent reduction to the real estate tax rate to 21 cents per $100. This would result in a revenue increase of about $27,000, finance committee chairman, Councilor Bill Goldsmith, told council at its May 12 meeting, where the proposed budget was released. The rate is being reduced because property valuations increased due to the Middlesex County reassessment.

The committee is recommending water rates increase about 8%, said Goldsmith.

The budget is divided roughly with one third for the water fund and two-thirds for the general fund, explained Goldsmith. The two funds are totally separate.

The total proposed budget is just more than $1.1 million, an increase of about $208,000 from the 2021-2022 budget that totals $889,000.

During the meeting, Councilor Larry Chowning said that although the proposal to reduce the real estate tax rate by two cents, it translates to a tax increase on real estate. “I just want the public to know it’s a two-cent tax increase,” Chowning said. He asked the finance committee to set the rate at 20 cents per $100.

Goldsmith responded that costs are increasing faster than income. Trash service has increased from $45,000 to $90,000 in the past three years.

Goldsmith added, “This town is basically on the down elevator, walking up. So as things change we fall behind a little bit at a time because our cost structure is increasing more rapidly than our income structure.”

Town Administrator Garth Wheeler added, “We’ve got cost increases that are coming in that need to be covered.”

Real estate tax revenue is estimated to be $277,000, the largest share of the general fund that is $579,500, about $52,300 more than the 2021-22 budget. The town has $94,800 in cash reserves.