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school construction, and other resources provided by the City, and believed that City Council should
take that into consideration and not allow a yoyo tax effect. He indicated if there was a tax reduction
this year and next year required a tax increase that would add another challenge for citizens.
Councilwoman Vick reminded when the economy took a hit that resources had to be cut. If the tax
rate was lowered, there would be services and resources cut. She reminded that the leaf collection
had been suspended, and the book mobile was suspended and never returned.
Councilman Eley inquired about average income savings per year with the reduction. Ms. Cipriano
replied that information could be provided to City Council. She advised that the average house was
assessed above $250,000.
Councilman Long shared that he favored a tax reduction. He understood there were ongoing projects
and programs needed and reminded there was reserve funds available debt service.
Mayor Jones advised that he favored some type of reduction. The questioned what the current surplus
was. Ms. Cipriano replied that the current surplus was $7 million.
Mayor Jones reminded that the City of Hampton approved a real estate tax reduction from $1.18 per
$100 to $1.15 per $100. He shared the people could choose to live in other surrounding localities
because of the difference in the tax rates. He indicated he was mindful that schools needed to be built
in the future and that there were other ongoing projects. He believed people may purchase homes
where the tax rate was lower (i.e. Williamsburg or York County). Councilwoman Vick shared that she
did not believe someone would move somewhere because of a 2 cent difference in the real estate tax
rate, particularly because of the services and resources that the City of Newport News offered. She
reiterated that a true comprehensive review was needed, not only of the tax rates, but that of the
ongoing and future needs of the City.
Councilwoman Woodbury indicated that a true comparison would be between the City of Newport
News and the City of Hampton with contiguous prices and services. Councilman Eley reminded that
the City of Hampton dropped its homeless population off in the City of Newport News because they
do not offer the same services.
Councilman Harris reminded that the City of Hampton had other revenue generators such as the new
Hampton Aqua Plex, the Hampton Coliseum, Convention Center, and the Boo Williams Sportsplex, and
the City of Newport News did not have those type of revenue generators. Councilwoman Vick agreed
with Councilman Harris and reminded that the City of Hampton had less public housing.
Vice Mayor Bethany questioned if the reduction of real estate tax to $1.18 of $100 of the assessed
value would the City generate more tax revenue than the previous year. Ms. Cipriano replied yes,
because of the 9.5% assessment increase.
Councilwoman Vick indicated the housing market would be something to consider when performing
a comprehensive review. There was an increase in the interest rate from 3.5% to 6%, people were
slow to purchase houses which would also affect. She believed the City should stay the course.
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