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<br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE CHARLOTTESVILLE CITY COUNCIL WILL BE <br />HELD ON Wednesday, August 1, 2007 AT 5:00 p.m. IN THE Basement Conference <br />Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br /> Work Session: Affordable Housing Issues (Tax Deferral Program; Homestead <br /> Exemption) <br /> <br />BY ORDER OF THE MAYOR BY Jeanne Cox <br /> <br />BASEMENT CONFERENCE ROOM – August 1, 2007 <br /> <br /> Council met in special session on this date with the following members present: <br />Dr. Brown, Mr. Lynch, Mr. Norris, Mr. Taliaferro. Absent: Ms. Hamilton. <br /> <br /> Ms. Jennifer Brown, Treasurer, discussed a proposed tax deferral program. She <br />said that the assessment rate increase is projected to be 2% next year, and that means <br />many citizens would not qualify with the 5% assessment increase requirement. She said <br />staff’s major concerns are the administration of the program and the need to be careful to <br />inform people about what they would be getting into. She said the amount of tax <br />deferred would need to be tracked each year. She noted that the purchaser of property <br />would acquire the debt if the taxes were unpaid when they bought the property. She said <br />that if the program became large software programs in the Treasurer’s office and <br />Commissioner of Revenue’s office would have to be changed. She said it is unknown <br />how the Homestead Act would impact this program if it is approved. She noted that the <br />City of Norfolk stopped the program after a year due to low participation. She said that if <br />Council decides to do the program, money would need to be put into advertising and <br />education. She said that the City of Richmond has been considering starting a tax <br />deferral program, but they said they do not anticipate moving on it any time soon. She <br />said that Charlottesville previously had a deferred tax program for the elderly and it was <br />not used. <br /> <br /> Responding to a question from Mr. Taliaferro, Mr. Bernard Wray, Director of <br />Finance, said that house sales are averaging 2% above assessments and sales are down. <br /> <br /> Mr. Lynch said that charging 4% interest would be a wash for the City. <br /> <br /> Mr. O’Connell said that the City budget would have to be reduced by that amount. <br /> <br /> Dr. Brown raised questions about how the program would be budgeted and the <br />timing. <br /> <br /> Ms. Brown said that Council would have to adopt an ordinance now and <br />applications would be due by March. She said we would need to see how many people <br />applied before we spent $50,000 on new tax software. <br /> <br /> Mr. O’Connell said that the cost of the program would not be known by the time <br />near year’s budget is adopted. <br /> <br /> Mr. Lynch said the City would not be paying out, but would be getting less <br />money with this program. <br /> <br /> Mr. O’Connell said that with changes in the real estate market fewer people <br />would be eligible for the program. <br /> <br /> Mr. Lynch said there may not be a major need for the program next year or the <br />year after that, but it would be useful to have when needed. <br /> <br /> Mr. Norris said he is interested in exploring the option, but is less excited about it <br /> <br />