F
ormer councilman Jeff Helgeson is expressing concerns about the proposed tax structure for Lynchburg's upcoming budget. The City Manager's proposal includes an 8% increase over last year's budget, which would be covered by a real estate tax rate hike from $0.89 to $1.025 per $100 of assessed value. This increase could disproportionately affect property owners and renters, who may see their rents rise as a result.

    To mitigate the impact on property owners, some council members are suggesting alternative solutions. Councilman Chris Faraldi proposes cutting the car tax instead, which he believes would provide actual tax relief for residents. However, Helgeson argues that this plan is flawed, citing the fact that real estate values appreciate over time while cars depreciate.

    As the deadline to finalize a budget approaches, council members are struggling to find common ground. Councilman Diemer suggests equalizing the real estate rate as a compromise, which would ensure that City Hall receives the same amount of money as last year. However, other council members have expressed concerns about the proposal, with some arguing that it amounts to a tax shift rather than relief.

    Council members are divided on how to proceed, and several have released statements outlining their positions. Councilwoman Timmer argues that Faraldi's plan is a 34% real estate tax increase and a $12 million spending hike, which would be unsustainable for many residents. Councilman Misjuns also opposes the proposal, citing concerns about excessive government spending and the impact on homeowners.

    The public hearing on the budget will take place next Monday at 7 p.m., giving residents an opportunity to weigh in on the proposed tax structure.