Charlottesville property owners could see their real estate tax bills swell by nearly 9% next year, if City Council adopts a $.02 real estate tax increase proposed at a budget work session last week.
Councilors said they would like to avoid the increase, but directed city staff to advertise the rate.
The city on Wednesday advertised the proposed rate of $0.97 per $100 of assessed value. The current rate is $0.95 per $100 of assessed value.
The total assessed of real property in Charlottesville rose this year by roughly 6.5 percent, according to a legal notice posted by the city, meaning many city tax payers will see their tax bills rise even if rate does not change. To keep tax bills at last year’s levels, the city would need to lower the rate to $0.89 per $100 of assessed value, according to the notice.
The difference between the proposed tax rate and the lowered tax rate is $0.0777, or 8.712 percent.
The city already has slashed departmental budgets by $4 million in order to cover an expected $7.5 million spending gap next fiscal year, and has said it cannot cover the school division’ request for $4 million in new funding without the proposed rate hike.
City Council earlier this month directed a $5.8 million surplus from last fiscal year to a variety of funds and initiatives.
If the city adopts the proposed tax rate, next year’s budget will exceed the current spending plan by 4.98 percent, according to the notice.
A public hearing on the proposed increase will be held on March 16 at 6:30 p.m. in City Council Chambers of City Hall.