Alexandria City Manager Douglas Harman said yesterday that revised tax revenue estimates show there is no need for the increase in the real estate property tax rate he requested in last month's proposed city budget.
Harman said he has new figures showing that the city's real estate assessments will increase to the extent that tax revenuew were underestimated by $953,000 in his proposed 1977-78 budget.
The city manager said a modest tax rate decrease or a delay in selling city bonds now may be possible. Last month Harman asked for an increase in the real estate tax rate from $3.50 to $3.58 per $100 of assessed valuation. That rate translates to $1.75 to $1.79 per $100 of assessed valuation, based on a new state law requiring property to be assessed at 100 per cent of fair market value. Alexandria previously had assessed property at 10 per cent of market value.
Despite the likelihood of keeping the tax the same or slightly decreasing it, many Alexandria residents still have higher tax bills because of the increased assessements. Real estate assessment notices were mailed in the city last week.
In addition, Harman said in a memo to the City Council that other factors have contributed to Alexandria's suddenly changed financial picture. The proposed budget underestimated money the city probably will get from the state sales tax, personal property taxes, business and professional license taxes, and utilittaxes, he said.