Proposed Real Property Tax Rates and Fiscal Year 2023 Fees

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Proposed changes to real estate tax rates and fiscal year 2023 fees including comparisons to other towns in Loudoun County. Analysis of alternative tax rates and their impact on the budget.

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PUBLIC HEARING: 2022 Real Property Tax Rates and Fiscal Year 2023 Schedule of Fees March 24, 2022

Proposed Changes to the Schedule of Fees REAL ESTATE TAX RATES Current adopted real estate tax rate is 17.8 per $100 assessed value Average assessment value for residential parcels is $440,739; an increase of $66,055 or 17.6 percent over 2021 values 2022 Equalized Tax Rate (same revenue from same parcels) is 15.2 per $100 assessed value or a decrease of 14.6% Alternative Tax Rate; to avoid use of reserves/ fund balance, is 17.27 per $100 assessed value March 24, 2022

Proposed Real Estate Tax Rate The projected value per 1 of Real Estate Tax Rate is $44,492. The Town s980 residential units make up 97% of the 1,011 total taxable parcels in the Town. Residential re-evaluation for 2022 increased 17.6% overall over 2021 for an average assessment of $440,739 or an increase of $66,055. The Proposed Fiscal Year 2023 General Fund budget is based on a 15.2 real estate tax rate for the proposed operating and debt costs. The resulting impact of the equalized tax rate on Fiscal Year 2022 is a decrease of $115,680 in expected General Fund revenue compared to the current tax rate of $17.8 .

Proposed Tax Rate (Equalized) Comparison to other Loudoun County Towns FY 2022 Real Estate Tax Rate 2021 Annual Residential Tax Bill Average Assessment $ 366,429 Town Hamilton 28.0 $ 1,026.00 $ 399,300 * 9.6 $ 383.33 Round Hill $ 540,229 15.3 $ 826.00 Middleburg $ 428,890 15.2 $ 651.91 Lovettsville *Round Hill reflects 2020 average assessment value and Fiscal Year 2022 Real Property Tax Rate.

ALTERNATE Real Estate Tax Rate A contribution from the General Fund of $93,434 in Fiscal Year 2023 is required to maintain the proposed financial policy revisions and fully fund the $284,500 of programmed Pay-Go/ Capital Asset Replacement Reserve in the Proposed Capital Improvement Plan. An alternative real estate tax rate of 17.27 would yield sufficient tax revenue to fund the required contribution to AVOID using Reserves or General Fund Unassigned Fund Balance for the Capital Improvement Plan in Fiscal Year 2023. The average residential tax bill would be $740.69, or an additional $86.50 ($7.21 per month) compared to the Equalized Tax Rate of 15.2 . The resulting impact of the 17.27 tax rate on Fiscal Year 2022 is a decrease of $22,246 in expected General Fund revenue compared to the Current Tax Rate of $17.8 .

ALTERNATE Tax Rate (Fully fund CIP) Comparison to other Loudoun County Towns FY 2022 Real Estate Tax Rate 2021 Annual Residential Tax Bill Average Assessment $ 366,429 Town Hamilton 28.0 $ 1,026.00 $ 399,300 * 9.6 $ 383.33 Round Hill $ 540,229 15.3 $ 826.00 Middleburg $ 428,890 17.27 $ 740.69 Lovettsville *Round Hill reflects 2020 average assessment value and Fiscal Year 2022 Real Property Tax Rate.

Tax Bill Comparisons for Varying Tax Rates 2021 Avg. Tax Bill Avg. 2022 Tax Bill @ 17.8 Avg. 2022 Tax Bill @ 15.2 Avg. 2022 Tax Bill @ 17.27 Housing Type Single Family Detached $ 730.03 $ 858.90 $ 733.44 $ 833.33 Townhome $ 550.47 $ 600.43 $ 512.73 $ 582.55 All Residential Average $ 654.20 $ 763.42 $ 651.91 $ 740.69

Proposed Changes to the Schedule of Fees FRYE COURT SERVICE TAX DISTRICT Service District established in April 2003 (Lovettsville Manor) Expanded in March 2019 by additional 14 lots (Keena Subdivision) Currently 28 homes Current tax rate, imposed on land values only, is 27.5 per $100 assessed value No proposed changes to the Tax Rate in order to pay for planned improvements of the Frye Court pump station in FY 2023. March 24, 2022

Proposed Changes to the Schedule of Fees WATER/ SEWER USER RATES Proposed increase of 3% in user rates to make up for project usage shortfall and resulting revenue loss in FY 2022. WATER AND SEWER RATES TABLE Sewage Rate Per 1,000 gallons Over Minimum Water Rate Per 1,000 gallons Over Minimum Minimum Billed Usage (gallons) Meter Size (inches) Minimum Billed $ (Month) $47.81 $49.20(residential) 5/8 & 3/4 $58.11 $59.20 (non-residential) 1 $68.41 $69.20 $9.23 $14.66 $15.10 2,000 1.5 $78.71 $79.20 $9.51 2 $89.01 $89.20 3 $99.31 $99.20 4 $109.61 $109.20 March 24, 2022

Water and Sewer User Rate Bill Comparison Average Monthly Residential Usage Total Average Monthly Usage (per Household) 3,850 Usage Amount Water and Sewer Proposed Bill Rates Potential Annual Variance Current Bill Rates Variance 0-2000 gallons $47.81 $49.20 $1.39 $16.68 water charge on 1,850 gallons sewer charge on 1,850 gallons TOTAL $17.08 $17.59 $0.52 $6.24 $27.12 $27.94 $0.81 $9.72 $92.01 $94.73 $2.72 $32.64

Proposed Changes to the Schedule of Fees AVAILABILITY FEES AND CONNECTION FEES 10% increase to account for the increase in the Construction Cost Index of the Baltimore-Washington DC Metro Area. DEPOSITS FOR NEW WATER AND SEWER ACCOUNTS Type of Connection Residential (within Town limits) Residential (outside Town limits) Non-Residential Water $50.00 $100.00 $100.00 $2,205.00 $2,426.00 Sewer $50.00 $100.00 $100.00 $2,205.00 $2,426.00 Water and Sewer Connection Fees AVAILABILITY FEES, MAXIMUM ALLOWABLE USAGE AND METER FEES Meter Size Max. Allowable Usage (GPD) Water Availability Fee**** Wastewater Availability Fee**** Meter Fee $11,721.00 $12,893.00 $17,581.00 $19,339.00 $29,303.00 $32,233.00 $58,605.00 $64,467.00 $93,768.00 $103,145.00 $187,535.00 $206,289.00 $293,024.00 $322,326.00 $17,220.00 $18,942.00 $25,830.00 $28,413.00 $43,049.00 $47,354.00 $86,099.00 $94,709.00 $137,758.00 $151,534.00 $275,515.00 $303,067.00 $430,492.00 $473,541.00 5/8 500 $250.00 3/4" 750 $250.00 1" 1,250 Cost of meter + $20.00 1-1/2" 2,500 Cost of meter + $20.00 2 4,000 Cost of meter + $20.00 3 8,000 Cost of meter + $20.00 4 12,500 Cost of meter + $20.00 March 24, 2022

Proposed Changes to the Schedule of Fees OFF-HOURS SERVICE FEE & CREDIT CARD CONVENIENCE FEE Off-Hours Service Fee: Proposed $75 Off-Hours Service Fee in order to allow Utilities staff to accomplish work for customers outside normal business hours (8:30-4:30) Credit Card Convenience Fee: 2.95% or $2.95 minimum per credit card transaction on the Town s InvoiceCloud platform. Town will not receive any of the revenue from the convenience fee. March 24, 2022