PUBLIC HEARING AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Harry F. Atherton, Vice-Chairman, Marshall District Supervisor

December 14, 2006

 

Staff Lead:

 

Department:

Elizabeth Ledgerton, Treasurer
Ross W. D'Urso, Commissioner of the Revenue

Treasurer
Commissioner of the Revenue

 

Topic: 

An Ordinance Repealing Chapter 13, Article IV, Sections 13-51, Et.Seq, and Reenacting an Amended Chapter 13, Article IV, Sections 13-51, Et.Seq, of the Code of Fauquier Providing for the Elimination of the County Decal and Establishing a Vehicle License Registration Fee and Further Amending Chapter 8, Article I, Section 8-1, to Provide an Alternative Personal Property Filing Procedure for Motor Vehicles

 

Topic Description:

Recommend eliminating the decal and replacing with an annual vehicle registration fee.  The change would be effective in Calendar Year 2007.  The Treasurer would bill the registration fee on the personal property tax bill due October 5, 2007.  

Eliminating the decal requirement from the annual spring mailing provides an opportunity to establish an alternative method of filing returns for motor vehicles and trailers as permitted by state law whereby the taxpayer would only be required to file a return if there was a change in situs or status of motor vehicles and trailers on their account.  At the November 9, 2006 work session,  three options were presented in addition to a no action option.  During that session it was requested that a fourth option be added for consideration.  A summary of the options are as follows 

Option One

·        Eliminate Decal purchase and March 2007 fee

·        Implement registration fee of $20.00 per vehicle assessed

·        Begin collection with October 2007 personal property billing. 

Option Two

·        Same as Option one; however, set the registration fee at $25.00 which would increase the yield for decals by 25% over Option One. 

Option Three

·        Establish a pro-rated transitional 2007 decal fee that would cover the period between the expiration date of the 2006 decal and the collection date for the 2007 personal property tax.  Then, establish the fee for 2007-08 to be added to the personal property bill due in October 2007.  That fee would not be due again on those vehicles until October 2008. 

Option Four

·        Collect the $25 fee in March as a normal 2007 decal fee then collect it again as a fee for 2007-08 to be added to the personal property bill due in October 2007.  That fee would not be due again on those vehicles until October 2008.

 

Requested Action of the Board of Supervisors: 

Select one of the options enumerated and adopt the appropriate Ordinance combination.

 

Financial Impacts Analysis: 

 

OPTION ONE           Eliminate Decal purchase and March 2007 fee.

Implement registration fee of $20.00 per vehicle assessed

Begin collection with October 2007 personal property billing.

 

PROS:                        Will eliminate the annual decal scraping ritual.

Will eliminate lines in the Courthouse in the Spring of 2007 forward.

Will allow for a companion implementation of the “File By Exception” program, for a vehicles and trailers beginning in Spring of 2007. 

CONS:                        Creates a budget issue for the FY07 budget by creating the possibility of a $1.177M  shortfall in FY07. 

Remedy:                     Seek to utilize FY06 carryover funds, immediate cost savings, and unbudgeted FY07 revenue to sustain the FY07 budget.  

 

FY07

FY08

Decal Budget

$1,521,000

$0

Anticipated Decal Sales other than Feb-March

($343,200)

 

Registration Fee (October 2007)

$0

$1,550,000

Potential Budget Shortfall

$1,177,800

$0

 

 

 

Funding Sources

 

 

Unbudgeted One time Land Use Reval Fees

$240,000

n/a

Immediate Operating Savings

$21,200

n/a

Unencumbered Fund Balance Reserve

$916,600

n/a

 

$1,177,800

 

 

OPTION TWO           Same as Option one; however, set the registration fee at $25.00 which would increase the yield for decals by 25% over Option One at approximately $380,000. 

PROS:                         Provides additional funding for FY08 over Option One. 

CONS:                        Does not address the FY07 budget issue, same remedy would be required. 

 

FY07

FY08

Decal Budget

$1,521,000

$0

Anticipated Decal Sales other than Feb-March

($343,200)

 

Registration Fee (October 2007)

$0

$1,937,500

Potential Budget Shortfall

$1,177,800

$0

 

 

 

Funding Sources

 

 

Unbudgeted One time Land Use Reval Fees

$240,000

n/a

Immediate Operating Savings

$21,200

n/a

Unencumbered Fund Balance Reserve

$916,600

n/a

 

$1,177,800

 

 

OPTION THREE      Establish a pro-rated transitional 2007 decal fee that would cover the period between the expiration date of the 2006 decal and the collection date for the 2007 personal property tax.  Then, establish the fee for 2007-08 to be added to the personal property bill due in October 2007.  That fee would not be due again on those vehicles until October 2008. 

PROS:                         Partially address the FY07 budget issue by providing approximately $585,000. 

CONS:                        Would require another decal season in the Spring of 2007 with the necessity to purchase a decal that would only be good for a portion of the year and require the taxpayer to pay twice during 2007 calendar year;  $13 in the Spring and $20.00 or $25.00 in the Fall.

                                    Would delay the implementation of the companion “File by Exception” program until 2008. 

 

FY07

FY08

Decal Budget

$1,521,000

$0

Transitional Decal (March 2007)

($585,000)

 

Anticipated Decal Sales other than Feb-March

($343,200)

 

Registration Fee (October 2007)

$0

$1,550,000

Potential Budget Shortfall

$592,800

$0

 

 

 

Funding Sources

 

 

Unbudgeted One time Land Use Reval Fees

$240,000

n/a

Immediate Operating Savings

$21,200

n/a

Unencumbered Fund Balance Reserve

$331,600

n/a

 

$592,800

 

 

OPTION FOUR         Collect the  2007 decal fee as normal.  Then, establish the fee for 2007-08 to be added to the personal property bill due in October 2007.  That fee would not be due again on those vehicles until October 2008. 

PROS:                         Addresses the FY07 budget issue. 

CONS:                        Would require another decal season in the Spring of 2007 with the necessity to purchase a decal and require the taxpayer to pay twice during 2007 calendar year;  $25 in the Spring and $20.00 or $25.00 in the Fall.

                                    Would delay the implementation of the companion “File by Exception” program until 2008. 

 

FY07

FY08

Decal Budget

$1,521,000

$0

Normal Decal (March 2007)

(1,117,800)

 

Anticipated Decal Sales other than Feb-March

($343,200)

 

Registration Fee (October 2007)

$0

$1,550,000

Potential Budget Shortfall

$0

$0

 

 

 

Funding Sources

 

 

Unbudgeted One time Land Use Reval Fees

n/a

n/a

Immediate Operating Savings

n/a

n/a

Unencumbered Fund Balance Reserve

n/a

n/a

 

$0

 

 

  

Identify any other Departments, Organizations or Individuals that would be affected by this request: 

Commissioner of the Revenue
Treasurer
County Attorney

ATTACHMENT:

Presentation

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