Question #8: What is the household tax and fee impact of the proposed budget on different types of residential units?

FY 2018 Question #8: What is the household tax and fee impact of the proposed budget on different types of residential units?

Page updated on Jun 16, 2017 at 12:55 PM

Question:

What is the household tax and fee impact of the proposed budget on different types of residential units?

Response:

The following is in response Mayor Silberberg’s request for the household tax and fee impact of the proposed tax rate and fee changes on different types of residential units. The impact is shown for the residential unit types of condominiums, townhomes, single-family detached homes with less than 2,800 SF of exterior impervious footprint, and large single-family detached homes with greater than 2,800 SF of exterior impervious footprint. 

Wastewater and sanitary sewer charges are based on water usage as reported by Virginia American Water. Virginia American Water estimates the water usage of 54,000 gallons per year or 4,500 gallons per month for a typical residential customer. Since the sanitary sewer maintenance fee is proposed to increase by 30% from $1.40 to $1.82 per 1,000 gallons of water used, a typical resident should expect an increase of 30% in their sanitary sewer maintenance fee. For this memo, the following usage estimates were used based on the types of residential units: condominiums 36,000 gallons per year, townhomes 54,000 gallons per year, single-family detached homes 70,000 gallons per year, and large single-family detached homes 80,000 gallons per year.   

Condominiums

For calendar year 2017, the average assessment for a condominium is $310,990, an increase of 0.16% from the previous year. There are 20,043 condominium units in the City. The increase in the average assessment would increase the average tax bill by $5. If the CY 2017 tax rate is increased to $1.100, the average tax bill will increase by another $84. The combined impact of the assessment increase and the proposed tax rate is $89 annually or $7 monthly. The residential refuse fee is proposed to increase from $363 to $373 per household, an increase of $10 annually or $1 per month. Most condominiums do not receive City trash services; this increase will only affect residents receiving City-provided trash service. The Sanitary Sewer Maintenance Fee is proposed to increase from $1.40 to $1.82 per 1,000 gallons of water used. Based on an average water consumption for condominiums of 36,000 gallons per year or 3,000 gallons monthly, the average Sanitary Sewer Maintenance Fee is proposed to increase from $50 to $65 in FY 2018, an increase of $15 annually or $1 monthly. The Storm Water Utility Fee for condominiums is proposed to be $39 annually. Since the storm water utility implementation is scheduled for January 1, 2018, the FY 2018 impact will reflect the cost for six months, therefore the impact of the storm water utility fee would be $20 for FY 2018 or $2 monthly. Table 1 below reflects the impact of the tax rate and fee changes in the proposed FY 2018 Budget on an average condominium. The total proposed change for FY 2018 is $134 or $11 monthly for a resident receiving City-provided trash service (refuse fee) and $124 or $10 monthly for a resident no receiving City-provided trash service (refuse fee). 

Table 1: Impact of the proposed tax rate and fee changes for an average Condominium

Average Condominiums

Proposed Monthly Change

Proposed FY 2018 Change
Real Property Tax (avg. tax bill) $7 $89
Refuse Fee (if applicable) $1 $10
Sanitary Sewer Maintenance Fee $1 $15
Storm Water Utility Fee $2 $20
Total Change (including Refuse Fee) $11 $134
Total Change (without Refuse Fee) $10 $124


Townhomes

For calendar year 2017 the average assessment for townhomes is $645,394, an increase of 1.79% from the previous year. There are 12,430 townhomes in the City. The increase in the average assessment would increase the average tax bill by $122. If the CY 2017 tax rate is increased to $1.100, the average tax bill will increase by another $174. The combined impact of the assessment increase and the proposed tax rate is $296 annually or $25 monthly. The residential refuse fee is proposed to increase from $363 to $373 per household, an increase of $10 annually or $1 per month for residents receiving City-provided trash service. The Sanitary Sewer Maintenance Fee is proposed to increase from $1.40 to $1.82 per 1,000 gallons of water used. Based on an average water consumption for townhomes of 54,000 gallons per year or 4,500 gallons monthly, the average Sanitary Sewer Maintenance Fee is proposed to increase from $76 to $98 in FY 2018, an increase of $23 annually or $2 monthly. The Storm Water Utility Fee for townhomes is proposed to be $59 annually. Since the storm water utility implementation is scheduled for January 1, 2018, the FY 2018 impact will reflect the cost for six months, therefore the impact of the storm water utility fee would be $29 for FY 2018 or $2 monthly. Table 2 below reflects the impact of the tax rate and fee changes in the proposed FY 2018 Budget on an average townhome. The total proposed change for FY 2018 is $358 or $30 monthly.     

Table 2: Impact of the proposed tax rate and fee changes for an average Townhome

Average Townhomes
(Row House/Semi-Detached)

Proposed Monthly Change

Proposed FY 2018 Change
Real Property Tax (avg. tax bill) $25 $296
Refuse Fee $1 $10
Sanitary Sewer Maintenance Fee $2 $23
Storm Water Utility Fee $2 $29
Total Change $30 $358

                     

Single-Family Detached Homes with less than 2,800 SF of exterior impervious footprint

For calendar year 2017 the average assessment for single-family detached homes with less than 2,800 SF of exterior impervious footprint is $925,004, an increase of 0.88% from the previous year. There are 9,141 single-family detached homes in the City. The increase in the average assessment would increase the average tax bill by $87. If the CY 2017 tax rate is increased to $1.100, the average tax bill will increase by another $250. The combined impact of the assessment increase and the proposed tax rate is $337 annually or $28 monthly. The residential refuse fee is proposed to increase from $363 to $373 per household, an increase of $10 annually or $1 per month for residents receiving City-provided trash service. The Sanitary Sewer Maintenance Fee is proposed to increase from $1.40 to $1.82 per 1,000 gallons of water used. Based on an average water consumption of 70,000 gallons per year or 5,800 gallons monthly, the average Sanitary Sewer Maintenance Fee is proposed to increase from $98 to $127 in FY 2018, an increase of $29 annually or $2 monthly. The Storm Water Utility Fee for single-family detached homes with less than 2,800 SF of exterior impervious footprint is proposed to be $140 annually. Since the storm water utility implementation is scheduled for January 1, 2018, the FY 2018 impact will reflect the cost for six months, therefore the impact of the storm water utility fee would be $70 for FY 2018 or $6 monthly. Table 3 below reflects the impact of the tax rate and fee changes in the proposed FY 2018 Budget on an average single-family-detached home with less than 2,800 SF of exterior impervious footprint. The total proposed change for FY 2018 is $446 or $37 monthly.      

Table 3: Impact of the proposed tax rate and fee changes for an average Single-Family Detached Homes with less than 2,800 SF of exterior impervious footprint

Average Single Family Detached Homes

Proposed  Monthly Change

Proposed FY 2018 Change

Real Property Tax (avg. tax bill) $28 $337
Refuse Fee $1 $10
Sanitary Sewer Maintenance Fee $2 $29
Storm Water Utility Fee $6 $70
Total Change $37 $446

   

Single-Family Detached Homes with greater than 2,800 SF of exterior impervious footprint

For calendar year 2017 the average assessment for single-family detached homes with greater than 2,800 SF of exterior impervious footprint is $839,548, an increase of 0.88% from the previous year. The increase in the average assessment would increase the average tax bill by $79. If the CY 2017 tax rate is increased to $1.100, the average tax bill will increase by another $227. The combined impact of the assessment increase and the proposed tax rate is $306 annually or $25 monthly. The residential refuse fee is proposed to increase from $363 to $373 per household, an increase of $10 annually or $1 per month for residents receiving City-provided trash service. The Sanitary Sewer Maintenance Fee is proposed to increase from $1.40 to $1.82 per 1,000 gallons of water used. Based on an average water consumption of 80,000 gallons per year or 6,700 gallons monthly, the average Sanitary Sewer Maintenance Fee is proposed to increase from $112 to $146 in FY 2018, an increase of $34 annually or $3 monthly. The Storm Water Utility Fee for single-family detached homes with greater than 2,800 SF of exterior impervious footprint is proposed to be $234 annually. Since the storm water utility implementation is scheduled for January 1, 2018, the FY 2018 impact will reflect the cost for six months, therefore the impact of the storm water utility fee would be $117 for FY 2018 or $10 monthly. Table 4 below reflects the impact of the tax rate and fee changes in the proposed FY 2018 Budget on an average single-family-detached home with greater than 2,800 SF of exterior impervious footprint. The total proposed change for FY 2018 is $467 or $39 monthly.      

Table 4: Impact of the proposed tax rate and fee changes for an average Single-Family Detached Homes with greater than 2,800 SF of exterior impervious footprint

Average Single-Family Large Detached Homes Proposed Monthly Change Proposed FY 2018 Change
Real Property Tax (avg. tax bill) $25 $306
Refuse Fee $1 $10
Sanitary Sewer Maintenance Fee $3 $34
Storm Water Utility Fee $10 $117
Total Change $39 $467

   


Printable Version

Top