Mayor L. Douglas Wilder warned Richmond City Council on Thursday that reducing the real estate tax again this year would be "irresponsible and laughable" as he presented his proposed budget.
Many council members have said they support reducing the real estate tax from the current $1.23 to at least $1.20 or less, but Wilder repeatedly said such a move in the current economic downturn would require immediate cutbacks in city services, such as public safety, education and trash pickup.
"It flies in the face of fiscal common sense," he said, after citing several other cities' recent budget shortfalls when they cut their tax rates.
"The call to lower the tax rate is a disingenuous, election year shell game, and I won't play that game. I won't because the people of this city deserve far, far better than that. The people of Richmond deserve a government that lives within its means."
The real estate tax brings in 35 percent of the city's overall revenue base, chief financial officer Harry E. Black said after the mayor's speech during a media briefing explaining the proposed budget adjustments.
"The (previous cuts) have let the people keep about $30 million in taxes," he said. "You give back in good times and tighten up in bad times as they mayor said."
Every one cent reduction in the tax rate means $2 million less for the city, he said.
The adjustments to the city's $654.1 million budget are driven by the downturn in the economy; revenue challenges, such as reduced increase in assessed city values and reduced money from the state; expenditure challenges, such as the increase in gas prices; and several major unfunded community needs, like a new $80 million jail. Currently, there's a $4 million difference between the approved fiscal year 2009 budget and the proposed budget, and the mayor is required by law to deliver a balanced budget.
Councilman Chris Hilbert (3rd) said he can't imagine the situation being so bad that council can't reduce the tax rate by at least two cents.
He was one of several council members who were visibly upset they weren't told about the budget presentation to the media in a conference room after the mayor's speech in council chambers. At least two council members joined the presentation about an hour after it started. Hilbert said he had other appointments scheduled.
"I'm disappointed and we can do better," he said.
Linwood Norman, the mayor's press secretary, said they were following council's schedule, which calls for a March 6 budget overview with submitted documents, a review and formulation of questions by council and staff from March 7-14 and then a finance committee general fund review March 17-28.
"Council was welcome to attend, but the meeting was expressly for the media because they can't wait 10 days," he said.
Council scheduled a public hearing on the budget for May 5.
Council president Bill Pantele (2nd) said the administration can have whatever meetings they want and that they have no impact on council.
"City Council has demonstrated during the past three years that it's very capable of assessing the budget," he said.
Pantele, who was publicly said before that he supports further reducing the tax rate, questioned that if the mayor wanted to save money, why hadn't he taken action on any of the audit reports which show several places, and up to 17 percent savings, where cuts could be made to save taxpayer money.
"We're mindful that we represent the taxpayers and the citizens elected us, not Doug Wilder," he said. "But I understand he would like to keep as much money as possible.
"There are many opportunities for him to save money though you didn't hear any of that in his presentation. Don't you look at your own expenses and see where you can economize?"