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Welcome to the official Town of Cape Charles Newsletter. This publication is available by submitting your email address to gazette@capecharles.org or by contacting the Town Office at 757-331-3259 x10.
The purpose of this electronic newsletter is to pass factual, informative and timely information to the citizens of Cape Charles and to any other individuals who have a business, property, travel or historical interest in our Town.
The information contained in this newsletter is considered to be the “official word" on the Town’s activities as noted by our Town Manager. The Cape Charles Gazette will be a news source that will report weekly events, upcoming Town activities, articles of interest to our citizens, Town projects, safety & security issues, and emergency announcements.
We hope that you will enjoy receiving the Cape Charles Gazette.
For additional information please go to the Town’s website at http://www.capecharles.org/ or contact us at gazette@capecharles.org.
Constituents Briefing from District 2 Supervisor David Burden
Hello District 2 Residents,
As you all know, there is a lot going on in Northampton County these days. I hope that you will find this information helpful in increasing your understanding of some of the issues we are dealing with, and that you will continue to give me the wonderful level of feedback I have received thus far in my tenure as your representative. If you would like to subscribe to these periodical briefings, or if you have any other questions, concerns, or comments you would like to pose, please send me an e-mail at supervisorburden@gmail.com.
While this is not intended to be a comprehensive report on everything that we are doing, I do hope that if there is anything that you are concerned with that I have not addressed that you will let me know. I have been learning a great deal thus far, and continue to work hard to represent the best interests of Northampton County, and District 2 to the best of my abilities. Thank you for this opportunity, and for all of the support you have given me in this effort.
TOPICS OF INTEREST
The Reassessment
Regional Sewer and Water Effort
Sustainable Technologies Industrial Park
Cheriton Boundary Adjustment
Recycling
Our Schools and Our Budget
I - The Reassessment
By now you should have received your property reassessment from the Commissioner of Revenue’s Office. There were increases in assessed values on a large percentage of properties in the county, and I know that many of you are concerned about what this means for your tax bill. This can seem like a very complicated issue, so I am going to try to present an outline of what we are dealing with. Again, this is not intended to be a comprehensive presentation of the assessment procedure, I hope that it helps you understand the process a little more clearly.
- The County is required by the State to periodically reassess all of our property. One of the reasons for this is to be sure that the tax burden is distributed fairly. As the relative value of a given property increases or decreases, taxes should do the same.
- At the end of a reassessment the goal is to have a total value on the tax books that represents approximately 90-95% of the real value of the property in the county. Since property assessment is not an exact science, there is some inherent variability to the values. The county does not strive to hit 100% of the total value in order to minimize the chance that any given property might be over-assessed.
- At the end of our last reassessment period (2003) the assessment company gave the county a report that reflected an assessed value of approximately 60% of the real value of the property in the county. This means that the deficiencies of that assessment are being made up in the current assessment in addition to real value increases that have occurred since 2003.
- For this reassessment the county hired a different assessment company in order to do a more accurate job of assessing our property and to ensure that our taxes were distributed as fairly as possible. The reassessment team has been working in Northampton for over a year to complete this project.
- By law the reassessment cannot be used to increase revenues for the county. This entire process must be revenue neutral to within 1%. So what does this mean if many of our values went up? It means that our tax rate MUST go down. The goal of this exercise is to make sure that no citizen is unfairly forced to pay more than their fair share of taxes.
- Let’s take an example of two families each with a $250,000 house.
If the Smith’s house was assessed at 60% of its value in 2003, then the tax bill for last year would have been $1050
60% of $250,000 = $150,000
2007 Real Estate Tax was $0.70 per $100 of value ($150,000 X $0.70 / $100) = $1050If the Jones’s house was built in 2005 and assessed accurately at the time of construction their tax bill for last year would have been $1750.
2007 Real Estate Tax was $0.70 per $100 of value ($250,000 X $0.70 / $100) = $1750
So… if we did not do the reassessment, the Joneses would be paying $700 more a year in taxes than the Smiths for houses with the same real value.
If we just reassess these 2 properties accurately, we have to do a little fancy math.
Total old value of houses = $400,000 ($150,000 +$250,000)
Total reassessed value of houses = $500,000 ($250,000 + $250,000)
Total tax revenue in 2007 = $2800 ($1050 + $1750)
2007 Tax Rate = $0.70 / $100 (70 cents per $100 of value)Because we can’t end up with more than 1% more in total taxes, we need to apply a new, lower tax rate. To get the new tax rate, we have to figure out how to get $2800 out of $500,000
$2800 / $500,000 = .0056 = $0.56 / $100 (56 cents per $100 of value)
By applying the adjusted tax rate to the reassessed properties we will have 2 families getting the same tax bills for properties of the same value.
The Joneses will be happy because their tax bill will have gone from $1750 to $1400. The Smiths may be upset because their tax bill will have gone from $1050 to $1400.
$250,000 (value of property) x $0.56 / $100 (new tax rate) = $1400
- Note that in this example that the Smith’s property value increased by a much larger percentage than their tax bill. This example is intended to demonstrate how the reassessment is designed to promote fairness, and does not represent an accurate representation of the anticipated changes in our tax rate.
This example assumes that the Joneses house didn’t increase in value at all. In Northampton County, the majority of our assessments increased, so the change in the tax bills should be much less than they are in this example. For many residents their tax bill will actually decrease even though their property value increased. We could prove this with more fancy math, but I don’t want to put you to sleep.
- Let’s take an example of two families each with a $250,000 house.
- IF you think that your reassessment is inaccurate, there is something that you can do about it. As a matter of fact there are several things that you can do about it, but the first one is definitely the easiest.
- If you want to contest your reassessment, or just have it explained to you please call to make an appointment with the assessors. This is by far the easiest way to challenge your assessment. The phone number is 678-0446 extension 6. You have until March 17th to meet with them.
- If you do not meet with the assessors, then you may appear before the county Board of Equalization. They will be convening at the end of March and will hear assessment cases for several months.
- If you miss both of these opportunities to challenge your assessment there is a legal process you can follow as well, but it is much more complicated. It is in your best interest to take action early if you believe that your assessment is inaccurate.
- Property assessments are not based on temporary swings in the real estate market. The current assessment was done over the course of 2007 using Northampton County real estate sales data from 2005 and 2006.
- We all know that the real estate market has taken a downward turn in recent months. However it is not possible to reassess all of the property in the county every time the market changes. Please keep in mind that the goal of this project is fair distribution of taxes, it is not the goal of the county or the assessment company to simply increase property values. There are properties in the county that decreased in value.
- One statement I have heard often is “But there’s no way I could sell my house today for this new assessed value”. These assessments are not supposed to be a reflection of immediate market values, but rather reflections of true property value based on historic sales data. In a perfect scenario, assessments would always happen right as the market hit a nice steady plateau, and they would accurately reflect immediate market values. However, this is not the case this year. If you feel that there is no way you could possibly sell your house for the newly assessed value even if the market returned to its height, then you may want to call the assessors at 678-0446 extension 6 and discuss your assessment with them.
- At this point you’re probably asking “So what does this mean for me?” Well, there are 3 basic scenarios.
- If you believe that your home has been accurately assessed in the past then you may have been carrying a larger percentage of the tax burden and you will probably see a significant reduction in your tax bill.
- If you know that you have been paying taxes based on a low assessment then your tax bill will likely increase a bit, but not at the same rate as your increase in value. Please keep in mind that if you have been paying taxes on an artificially low assessment then your neighbors may have been paying a large share of your taxes for the last 4 years.
- If you think that your house may have been slightly under assessed in the past, but have seen a large increase in your assessment that reflects the dramatic rise in real estate sales prices we have witnessed on the Shore in the past several years, then your tax bill still might not change that much, and may possibly go down.
If you still want to read more about the reassessment after all of that, there is more information on the county web site at http://www.co.northampton.va.us/gov/reassessment.html
The County also has a tax relief program for elderly and handicapped residents on a fixed income. Information on this program is available from our Commissioner of Revenue, and I will be presenting more information on this topic in the future as we get a handle on our budget and set our tax rate for 2008.
II - Regional Sewer and Water Effort
The towns of Cape Charles and Cheriton together with a private investor group (Webster Investors) have asked the county to join them in an effort to research the potential for a regional sewer and water project that could serve both towns as well as some county residents in the town edge districts proposed around the towns.
After much discussion as to the potential benefits and risks to the county the Board of Supervisors has decided to form a subcommittee to work with both towns to determine the sewer and water needs for the potential service areas and to determine the questions we hope to see answered by the research project proposed by the Webster team. We have expressed our support for this research and look forward to learning more about the potential solutions to the water and waste water challenges that the towns are facing.
As a member of this committee I am looking forward to making progress on this project quickly while simultaneously allowing the Webster Investors to proceed with their research. I have spent a lot of time becoming familiar with the potential plans for this system, and anticipate learning even more as we begin to get the results back from this study effort. As this situation continues to develop I will continue to report on it.
III - Sustainable Technologies Industrial Park
Last week the county completed the sale of the Sustainable Technologies Industrial Park to South Port Investors Group. The projects that are proposed at this site promise to bring much needed jobs to our region, and I am excited about the potential gain for not only the county but the towns of Cape Charles and Cheriton as well. I also believe that there will be many opportunities for our southern campus of the Eastern Shore Community College to grow with this new industry.
For those of you who use the nature trail at the STIP, that boardwalk will remain open to the public. Please be aware of the work that is going on all over the STIP. You may need to be extra vigilant for traffic and debris, and you may need to find a parking spot that allows the crews to get their work done.
If you would like more information on this sale, you can see Ceri Danes’s article in the Eastern Shore News at:
Or Ron West’s article in the Eastern Shore Post at:
Stay Tuned for further developments!
IV - Cheriton Boundary Adjustment
The Town of Cheriton has asked the county to discuss the possibility of a boundary adjustment to allow for further growth. While this has been a contentious issue in the past, I believe that there is a renewed interest in addressing this issue in a responsible manner that will allow for a resolution that all parties will be happy with and excited about.
I will not speculate as to the details of what the outcome will be, but I do look forward to working with the representatives from Cheriton as well as my fellow board members on this issue.
V – Recycling – An Opportunity, A Responsibility, A Challenge
Many of you know that Northampton County provides recycling services to all of our residents. However, not everyone is taking advantage of this opportunity. We have a recycling center right here in District 2 at the intersection of Business 13 in Cheriton (S Bayside Rd) and Bayview Circle at the county trash collection site. As you enter the collection site there are several green dumpsters to your left. These are the recycling dumpsters.
With the county recycling program you don’t even need to sort your recyclable materials! Glass, Plastic, Paper, Aluminum, and Cardboard can all be thrown in together. There’s even a spot to recycle old batteries. Every month I get reports on how many residents use each collection site for trash and how many use it for recycling. I was surprised to find out that while more people use the Bayview site to dump trash than any other site in the county, we have the lowest number of recycling visits by a large margin. Other county residents are using the recycling services up to 50% more than the residents of District 2 (unless of course you’re all driving to Birdsnest with your recyclables).
As a community that has repeatedly expressed our understanding that the quality of our natural environment is directly related to our economic well-being and quality of life, we should be taking advantage of every opportunity to protect that most valuable resource. I am assuming that the reason that we don’t use our recycling center is that we have residents that don’t know how easy it is. Well, now you have directions and a challenge. I would like to be able to look at our recycling numbers in the near future and report back to you that we are setting an example for the rest of the county on this simple method of taking care of the Eastern Shore that we love.
Please join me in this effort to step up our recycling effort in District 2!
VI - Our Schools and Our Budget
In the weeks and months ahead one of the biggest challenges we will have is creating a budget that covers the massive reduction in school funding that the State handed down to Northampton County this year. This is an issue that I will continue to report back to you on. Right now we are waiting to see what the final outcome is from the joint legislative session currently underway in Richmond. Several weeks ago I traveled to Richmond with my fellow Supervisors and other county business leaders to meet with Senator Ralph Northam and Delegate Lynwood Lewis to express our concern about this massive funding cut as well as several other bills that were under consideration. I have kept in contact with both of our representatives in the time since our visit and we all continue to lobby for some measure of relief. At this point I am still hopeful that they will return from Richmond with good news. However, we are already starting to deal with the reality that we are likely facing a huge financial challenge.
While I know that we will be able to formulate a budget that covers all of the needs of our county in the coming year, it will not be easy. Sacrifices will have to be made, and tough decisions are sure to outnumber easy ones. I will be holding another constituents meeting to discuss these tough choices with you.
Thank you for taking the time to read through this briefing. I know that there was a lot of information presented, and that you may have more questions rather than fewer after reading it all. If you would like to speak with me, please let me know via e-mail at supervisorburden@gmail.com or stop by during the office hours listed below. I hope that this information has been helpful to you, and that you will continue to help me provide the leadership we need to keep our economy and communities strong.
I would also like to thank the residents who came out to my constituents meeting at the Cheriton Firehouse on the 20th, as well as the Cape Charles residents who came to speak with me at Councilman Burdiss’s constituents meeting on the 19th. One of the things I love about the Shore is the passion that our neighbors have for their communities.
I look forward to seeing you all at my next meeting, and around town in the mean-time.
Sincerely,
Dave Burden
DAVE BURDEN OFFICE HOURS FOR MARCH
611 MASON AVENUE IN CAPE CHARLES
(SOUTHEAST EXPEDITIONS)
Thursday March 13th 9-10am
Thursday March 20th 9-10am
I will be holding another Constituents Meeting in April: Time, Date & Location TBA
From the Town of Cape Charles Treasurer
I have received many questions about the reassessment process currently being accomplished by Northampton County. The most frequently asked questions are:
What is a reassessment? Reassessment is the process of re-determining the value of property or land for real estate tax purposes.
Why have reassessments? Periodic reassessments are required by law and are to insure that each property is valued fairly and equitably. The Code of Virginia requires that all property be assessed at market value.
Why is my reassessment different from my friend who lives in another part of the County? Property values fluctuate throughout the County and some areas are experiencing more demand and subsequently higher selling prices than other areas.
Is the assessment notice I received a bill? No the assessment notice is not a bill, and no payment should be sent to Northampton County based upon this notice.
What will the impact on my taxes be in November when I get my tax bill from the Town?
According to the Code of Virginia the increase should be limited to a 1% increase in tax over the prior year but the county can, as well as the Town, increase the rate above the reduced rate required in section A below if the increase is deemed to be necessary by the governing body (see section B below). Until the reassessment process by the County has been completed it is pure speculation as to where the rates will be set but the Town will do its best to provide a thoughtful and honest budget and limit its impact on tax increases.
I have copied the Code of Virginia Section 58.1-3321 for your review.
§ 58.1-3321. Effect on rate when assessment results in tax increase; public hearings.
A. When any annual assessment, biennial assessment or general reassessment of real property by a county, city or town would result in an increase of 1 percent or more in the total real property tax levied, such county, city, or town shall reduce its rate of levy for the forthcoming tax year so as to cause such rate of levy to produce no more than 101 percent of the previous year's real property tax levies, unless subsection B of this section is complied with, which rate shall be determined by multiplying the previous year's total real property tax levies by 101 percent and dividing the product by the forthcoming tax year's total real property assessed value. An additional assessment or reassessment due to the construction of new or other improvements, including those improvements and changes set forth in § 58.1-3285, to the property shall not be an annual assessment or general reassessment within the meaning of this section, nor shall the assessed value of such improvements be included in calculating the new tax levy for purposes of this section. Special levies shall not be included in any calculations provided for under this section.
B. The governing body of a county, city, or town may, after conducting a public hearing, which shall not be held at the same time as the annual budget hearing, increase the rate above the reduced rate required in subsection A above if any such increase is deemed to be necessary by such governing body.
The process is not simple but I hope this helps explain the process. Please call the County if you have questions about your assessment or the process.
The following item appears on the Northampton County Web site:
Northampton County Reassessment
Virginia law requires periodic reassessments of real estate in every taxing jurisdiction. Chapter 32 of the Code of Virginia is devoted to real estate and the taxing thereof. This is an overview of this reassessment process. Virginia law mandates that all property shall be taxed. It further requires that all assessments be a fair market value. The process begins when the local governing body, The Board of Supervisors in Northampton County, calls for a reassessment. The scope of work is defined and a request for proposals is advertised. Bids are received, the contract is awarded and the appraisal company begins work. Sales and building costs are analyzed, value charts are developed. Each property is visited and inventoried. When the appraisal company completes its field work it mails out change of assessment notices to individual property owners. Persons aggrieved by their assessments may appeal to the assessors in informal hearings. The assessors will consider these appeals, re-visit the property if called for and make a final determination, re-send notices, changing or affirming the assessment. They will then prepare the "Reassessment Book" for signatures and turn it over to the Circuit Court and the Commissioner of the Revenue. The assessed values established during a general reassessment are "locked in" until another general reassessment is made.
Local boards of equalization are made up local citizen freeholders appointed by the circuit court. The board of equalization is a quasi-judicial body with specific legal powers in the matter of equalizing the burden of real estate taxation but has no other legal authority. The board of equalization is charged with; a) hearing or receiving complaints concerning objections in uniformity to the real estate assessment from any taxpayer or his agent or the county attorney; b) make public advertisement of its meeting; c) keep minutes of its meetings and notify the property owner, the commissioner of the revenue of any change; d) correct any known duplication or omissions in the assessment roll; e) conduct its meetings in public. Once the board has completed its work notices of change or affirmation are sent to property owners. The board turns over its work to the commissioner and they hold their final meeting. If a property owner appeals to the assessors and the board of equalization and are still dissatisfied with their assessment their next course of action would be a petition to the circuit court.
Press Release
Press Release for Northampton County Reassessment
Northampton County Reassessment Hearings
Schedule:
Tuesday - March 4, 2008 - 1:00pm to 7:00pm
Wednesday - March 5, 2008 - 9:00am to 3:00pm
Thursday - March 6, 2008 - 9:00am to 3:00pm
Monday - March 10, 2008 - 10:00am to 4:00pm
Tuesday - March 11, 2008 - 1:00pm to 7:00pm
Wednesday - March 12, 2008 - 9:00am to 3:00pm
Thursday - March 13, 2008 - 9:00am to 3:00pm
Monday - March 17, 2008 - 10:00am to 4:00pm
Remember that all Town and County property owners have the right to question their reassessment. If you feel that your reassessment is unreasonable, please contact the Northampton County Assessor Office at 757-678-0446 ext # 6 to discuss your property reassessment.
All information contained in this publication is believed to be true and correct at the time of publication.
Not responsible for typographical errors.
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Municipal Corporation of Cape Charles
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Cape Charles, VA 23310
757-331-3259
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