C
ity Council members were unable to reach an agreement on proposals to reduce the city's real estate tax rate. Councilwoman Reva Trammell had proposed a 4-cent reduction, while Mayor Levar Stoney countered with a one-time, 4-cent tax rebate and a pilot grant program called "RVA Stay." The program would provide $1,200 to residents who spend more than 30% of their income on housing and participate in financial management training.

    Deputy Chief Administrative Officer Sabrina Joy-Hogg argued that reducing the tax rate would be detrimental to city services, put the city's AAA credit rating at risk, and compromise its future financial obligations. Real estate tax revenue is the single largest source of the general fund, making up nearly half of it.

    Stoney's proposal included real estate assessment freezes for homeowners who are senior citizens or have disabilities and make less than $125,000 a year. However, Trammell was unyielding in her support for a tax cut, citing large salary increases for top city officials and the need to provide relief to residents struggling with rising real estate assessments.

    Councilwoman Ellen Robertson expressed concern that the city's argument against reducing the tax rate is often based on scare tactics, such as losing police and firefighters. She asked Chief Administrative Officer Lincoln Saunders how the city could afford a real estate tax cut, but he was unable to provide a specific answer.

    1st District Councilman Andreas Addison suggested a compromise: a 2-cent tax rate reduction coupled with a one-time, 2-cent tax rebate for 2025. He argued that this combination would offer residents the tax relief they need without forcing officials to make long-term decisions. The city's projected $12 million real estate tax revenue surplus for fiscal year 2025 gives officials room to provide tax relief without breaking the bank.

    City Council will now weigh the proposals during its next meeting on October 15.