12-01-2004 Packet Joint Meeting
Chesterfield County Board of Supervisors,
School Board and Legislative Delegation
December 1,2004
Agenda
Dinner
Opening Comments
Kelly E. Miller
James iR. Schroeder, D.D.S.
Countv Presentation
PPTRA changes
Lane B. Ra~nsey
Jay Stegmaier
Richard Cordle
School Presentation
No Child Left Behind
James R. Schroeder. D.D.S.
Open Discussion
All
Closing Comments
Kelly E. Miller
James R. Schroeder, D.D.S.
Personal Property Tax Relief Act
Summary of 2004 Legislative Changes
and
Impact on Chesterfield County
Personal Property Tax Relief ACt of
1998
· Provides partial relief from personal property taxes on the
first $20,000 of assessed value
· 70% relief currently provided by the Commonwealth
· County taxpayers realize approximately $40 million annually
in tax relief through PPTRA reimbursements
· 2004 legislation will affect the county's reimbursement and
the taxpayers' relief under the PPTRA
Page 2
Reimbursement Change
· Reimbursement to localities frozen at $950 million per year beginning
with tax year 2006
· $950 million will be prorated among localities
· Each Iocality's share will remain fixed in future years
· Money Chesterfield would have received in FY06 will not be received
until FY07. This potentially causes a $40 million budget issue.
· County taxpayers will receive less relief over time
Page 3
Impact on Chesterfield County
(in millions)
Page 4
2
Local Concerns
Locally, there are two primary areas of concern:
1. Budget and cash flow issues
2. Taxpayers will realize less and less tax relief over time
Page 5
Local Concerns
Budget and Cash Flow Issues
· Potential $40M budget impact as a result of the
change from a calendar year to fiscal year state
reimbursement. (accrual and audit issues)
· Negative impact on cash flow
· Loss of approximately $175,000 to $300,000 in interest
earnings due to new reimbursement timing
Page 6
3
Taxpayers will receive less and
less tax relief over time
Page 7
Sample 2006 Tax Bill
m~ol~t eeo~q'v TAX la~. FORTAX ~R 200~ 'KEEP FOR YOUR
RECORD~~
John Q. Taxpayer 2006 STATE TAX
1234 AnyvXlere Street REUEF RATE: I;1.0~
Che~mfield, VA 23832 (on first $20,000 assessed
value)
**DETACH AND RETURN BOTI'OM PORTLON
Page 8
4
Sample 2007 Tax Bill
John Q. Taxpayer 2007 STATE TAX
1234 Anywhere Street REUEF RATE: $t.21
Chestedield, VA 23832 (on first $2~,000 assessed
0707100200
ORIGINAL TAX DUE S 938.48
L~SS: T~X ~
**DETACH AND RETURN BO'ITOH PORT/ON
Page 9
Action Items
· State work group is developing budget language
changes
Language to address certain issues will be included
in Governor's budget submission
(accrual clarification, simplification of tax rates on bills)
· VML and VACo are calling for a state appropriation
of at least $250 million in FY2006
Page 10
5
You have made a phenomenal impact on the lives of
Chesterfield County Public Schools.
The School Board wants to extend our appreciation to
our state and local partners.
Our excellent Chesterfield schools would cease to
exist as we know them if any of these partners were not at
the table. I applaud each of you for sticking to your
convictions, yet continuously returning to the table to get
the business completed that each of us has taken an oath to
carry out. We have had challenging issues this year, yet we
have had the discipline to not lose sight of our mission.
As I prepared my words for tonight, the amount of
information I wanted to include (as exciting as it is), would
probably be beyond one's attention span. Suffice it to say,
from a Board perspective, we are witnessing a total
paradigm shift. We no longer have a school system, we
have a "system of schools". There is not a business or
industry that takes everyone who walks through the door
(prepared or not) and targets them to encounter an
education of excellence - providing an opportunity for each
child to reach their full potential.
The Board believes it is critical for our financial
partners to have trust and confidence in a system they are
providing millions of dollars to support. In our
relationship, trust and confidence must be validated with
performance data. You will receive our No Child Left
Behind (NCLB) progress report and the state accreditation
report. Significant improvement has been made in many
areas. Rather than sending further information about our
schools, we want to extend a seasonal invitation to each of
you to visit one of our facilities. The changing job market
has totally revolutionized Chesterfield Schools approach to
educating our young people. Before leaving tonight, please
leave a contact person so that we may set up a time to meet
with you. This will also provide an opportunity for
partners to have conversations. A visual I describe is that
apple in the far comer. It is difficult to describe or
visualize. The apple in front of you can be experienced and
described in detail. A visit to our schools will give you a
better understanding of what is being created through your
legislative and funding efforts. You are part of the reason
this apple looks so good close up, and we would love for
you to experience and share in the successful school system
you helped to create.
We know that there will be many issues coming
before you in the General Assembly this year. We hope
each of you will have time for individual conversations
with Board members tonight.
Within the next term, the Board will send you a
written response to legislative items of particular interest to
the students and families of Chesterfield. We hope you
will find this helpful. We are always open to discussion
about issues that are going to impact the apple sitting in
front of you. We can give you a bird's-eye view of that
impact.
I close with a thank you and huge appreciation for a
partnership that will place CCPS in the top 10% of schools
in the country. You share a great responsibility for making
this happen. This is a partnership we should all take pride
in built on respectful relationships and competencies.