CITY OF CHARLOTTESVILLE, VIRGINIA
                 CITY COUNCIL AGENDA



 Agenda Date:         March 20, 2023

 Action Required:     Public Hearing

 Presenter:           Michael Rogers, City Manager

 Staff Contacts:      Krisy Hammill, Director of Budget

 Title:               Proposed real estate tax rate for the FY 2024 City Manager’s Proposed
                      Budget


Background
The Council meeting on March 20,2023 marks the first public hearing on the proposed real estate tax
rate for the FY 2024 City Manager’s Proposed Budget. The Interim City Manager will give a very
quick overview of the budget prior to the public hearings. A legal ad was published, as required, in
the Daily Progress on February 14, 2023 (real estate tax levy). A copy of the ad is also posted on the
FY 2024 Budget Development section of the following website: www.charlottesville.gov/budget.

Discussion
The Equalized Tax Rate is $0.8589/$100 of assessed value. (This rate is calculated as the rate of tax
that would need to be applied to the current [increased] property assessments, in order to generate
the same amount of tax revenues as in Tax Year 2022). For purposes of the budget, the equalized
rate of $0.8589/$100 is the calculated rate that will keep the City’s revenue from real estate taxes
equal with last year. Although this is a lower rate, it is still possible that some individuals could see an
increased tax bill solely on the basis of their individual reassessment. The proposed tax rate that has
been advertised is $0.96/ $100, which is $0.1011 higher than the equalized rate of
$0.8589/$100. For FY 24, real estate tax revenue is budgeted to generate $9,915,424 in new
revenue over FY 23 based on the advertised tax rate of $0.96/$100 and the 2022 assessed values.

Alignment with City Council's Vision and Strategic Plan
The City Manager’s Proposed Budget aligns with Council’s Vision and FY 2018 – 2020 Strategic Plan
which has been extended to 2024 and is detailed in the budget document.

Community Engagement
There are several remaining opportunities for the community to provide input into the budget. In
addition, a few minutes are reserved at the end of each Budget Work session for public comment and
input. The proposed budget document and materials for the budget work sessions are posted at
www.charlottesville.gov/budget.

Budgetary Impact
The FY 24 Proposed Budget is balanced using a real estate tax rate of $0.96/$100. Should City
Council decide to change the rate, expenditures would have to be adjusted (up or down) to reflect the
amount of revenue that would result from a different tax rate.

Recommendation
Staff recommends that City Council, after completing the public hearing process, determine whether
the proposed budget contains sufficient funds for the various operational needs and priority projects
that City Council wishes the City government to undertake in FY2024. If not, see “Alternatives”,
below.

Alternatives
To the extent that City Council is willing to adjust the Real Estate Tax rate, City Council may—
following the 3/22/2023 Budget Public Hearing—insert new items of expenditures or may increase,
decrease or strike out items of expenditures.

Attachments
None