Officials Hedge Bets on Raising Property Taxes

The Fairfax County Board of Supervisors agreed yesterday to set the ceiling for a looming property tax increase so that the average homeowner sees an uptick of no more than $60, but officials said they will try to settle on a lower rate as they attempt to balance next year's budget.

Officials will not finalize the tax rate until next month, when they are slated to adopt a spending plan that reflects the realities of a nationwide recession and a plunge in area home values.

It is a bigger increase than many supervisors said they want -- up 14.5 cents per $100 of assessed value, which translates to an increase of about $60 on a home assessed at $459,228.

But they agreed yesterday to advertise, in legal notices for upcoming budget hearings, the higher rate of $1.05 per $100 of assessed value. They will also consider a 1.5-cent increase for a stormwater service charge. The vote effectively sets a limit on the amount the board can increase the tax rate. By advertising a higher rate, supervisors have left themselves some leeway in case the economy and the county's budget take another hit, they said.

"The news we've heard has gotten worse at every turn," said Supervisor Jeff C. McKay (D-Lee). "In this economy, unfortunately, a month is a long time."

Voting no were the board's two Republicans, who supported advertising a tax rate that was a penny lower. Supervisors Michael R. Frey (Sully) and Pat S. Herrity (Springfield) said it would send a better message and would prevent the board from being tempted by the $20 million an extra cent on the dollar would provide. But fellow Republican John Cook, a candidate for the vacant Braddock District seat on the board, said he did not object to yesterday's vote.

"The county can advertise whatever it wants. I understand the reasons for it," he said. But, he added, if he is on the board when the budget is finalized, "I'm not going to vote for $1.05."

The Democratic candidate, School Board member Ilryong Moon (D), said he would wait until the budget process runs its course before deciding what tax rate he favors. However, he said, he is "very doubtful" that he would support anything that puts a greater burden on the average taxpayer.

Carey C. Campbell, an independent, has said he does not want to increase property taxes. The three men face off at the polls today.

The board also voted to withdraw $18.7 million from its rainy day fund, a move officials had predicted in the fall would be needed to chip away at a $58 million shortfall in this year's budget. Current economic conditions allow the board to dip into the $102 million fund, which may be tapped only if revenue falls significantly below expectations. It is the first time the county has used the fund, which was established in 1999.