TOWN OF  BEDFORD LIFE. LIBERTY.HAPPINESS. Regular Council Meeting AGENDA  April 23, 2024 Administrative  7:00 p.m.  Approval ofl Minutes Report ofTown Manager Appearance before Council Council Comments Report of Council Committees Revisions to Agenda  Public Hearings 1-FIN-2-43-4-23 Consent Agenda (roll call) Old Business New Business 2-FIN-2-43-4-23 3-FIN-2-43-4-23 4-FIN-2-43.4-23  Proposed Tax Increases  Ordinance Real Estate Tax for Fiscal Year 2024-2025 (roll call) Ordinance Personal Property Tax for Calendar Year 2024 (roll call) Resolution - Setting Percentage Tax Relief to Exhaust PPTRA  Relief Funds (roll call)  Closed session pursuant to Section 2.2-3711 (a) (3) of the Code of Virginia of 1950, as amended, for the acquisition or disposition of publicly held real property, where discussion in an openi meeting would adversely: affect theb bargainingposition  Work Session begins at 5:30 p.m.  Citizens may watch the meeting in real time via the Town of Bedford Live Stream website: htsy/wpwrwyoutupecomm/@lownolbedlord  The Town will strive to provide reasonable accommodations and services for persons who require. special assistance to participate in this public involvement opportunity. Contact (540) 587-6001 for more information.    TOWN OF BEDFORD NOTICE OF PUBLIC HEARING  SETTING TAX RATES ON REAL PROPERTY AND CERTAIN PERSONAL PROPERTY FOR TAX YEAR 2024, ADDING A VEHICLE: LICENSE FEE FOR TAX YEAR 2024, AND SETTING TAX RATES ON THE BUSINESS PROFESSIONAL AND OCCUPATIONALLICENSE (BPOL)1 TAXI FOR TAX YEAR2025 Please be advised that aj public hearing on the tax rates will be held on Tuesday, April 23, 2024, at 7:00 p.m. in the Council Chambers of the Town of Bedford Municipal Building, located at 215 E. Main Street, Bedford, Virginia, to-wit: to set a real property tax rate of not more than $0.28 per $100 assessed valuation for tax year 2024. To set a personal property tax rate of not more than $1.06 per $100 assessed valuation in the Town of Bedford for tax year 2024. To set a machinery and tools tax rate of not more than $0.20 per $100 assessed valuation in the Town of Bedford for tax year 2024. To add a vehicle license fee of not more than $20 per titled vehicle for tax year 2024. To set a BPOL tax on all categories of not more than $0.10 per $100 gross receipts for businesses in excess  of$2,000,000 for tax year 2025. By Order oft the Clerk of the Town Council  Publish: April 3, 2024    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Ordinance Real Estate Tax for Fiscal Year 2024-2025 DATE OF COUNCIL MEETING: April 23. 2024  DATE: April 15.2024  PRESENTATION: iss shown below:  Thet total real estate assessment for the Town of Bedford increased by approximately 1.035%. Thisi increase was primarily due to new construction. Individual property taxes may have a greater or lesser percentage change. A summary of thej preliminary assessed values  Assessed Values Year 2023-2024 Year 2023-2024 Year 2023-2024 Boundary Adj. Total Increase New Construction Identified Net Increase Assessment Increase- - 0.0103 or 1.03% Net Assessment Increase - 0.0044 or 0.44%  $825,486,800 694,242,400 122,787,400 $8,457,000 ($4,865,700) $3,591,300  Totall Increase  $23,679.60  Proposed tax rate is $0.28 per $1000 ofassessed value, which is no change from the current tax rate.  ACTION REQUESTED:  Town Council is requested to consider adoption of the ordinance presented.  YES NO OTHER  ROUTING  DATE: DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () () TOWNATTY. () I.T. () () () COMM. DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () () ENGINEERING ( ) OTHER C)) () FINANÇE 3 () FIRE DEPT. () C)() () H.R.  () () - )  APPROVED () FOREMAN  () ()    ORDINANCE NO.  ORDINANCE LEVYINGTAX UPON REAL ESTATE AND CERTAIN TANGIBLE PERSONAL PROPERTY OF THEREON FOR THE FISCAL YEAR OF 2024-2025  PUBLIC SERVICE CORPORATIONS AND ESTABLISHING THE TAX RATE  BEIT ORDAINED by the Town Council oft the Town ofBedford, Virginia, that there be, and is hereby levied for the fiscal year of 2024-2025, a tax rate of $0.28 per one hundred dollars of assessed valuation on all taxable real estate located in the Town, the respective levy hereby ordered being also applicable to the real estate and tangible personal property of public service corporations within the limitations specified by Section 58.1-26060 ofthe CodeofViginiaofl950, as amended, based upon the assessment thereof fixed by the State Corporation Commission and  duly certified.    TOWN OF BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Ordinance Personal Property Tax for Calendar Year 2024 DATE OF COUNCIL MEETING: April23.2024  DATE: April 15,2024  PRESENTATION:  Thec current personal property tax ratei is$1.06] per $100ofassessed valuation on all taxablei tangible personal property, including property separately classified in Section 58.1-3503 of the Code of Virginia, 1950, as amended, unless exempted from taxation or subject to a Thef followingi items aret taxes at ar rate of$0.000001 per $100 ofassessed valuation: Household, goods andj personal effects as classifiedi in Section 58.1-3504 and horses, mules and other kindred animals, hogs, poultry, grains and other feeds used for the nurture of farm animals, grain and tobacco; cattle, sheep and goats, farm machinery and farm implements as such items are classified in Section 58.1-3505 are exempted in whole from tangible personal property taxation. No changes are being proposed for calendar year 2024. The followingi items are taxes at ar rate of$ $0.20 per $100 of assessed valuation: (a) machinery and tools separately classified in Section 58.1-3507;and (b)n motor carriers ass separately classifiedi in Section: 58.1-3506; (c) one vehicle owned by disabled veterans, ofthe Code of Virginia, 1950, as amended, as separately classifiedi in Section 58.1 1-3506(a)(19);: and (d) motor vehicles witha as seating capacity ofnot less than 30 persons, including the driver, as separately classified in Section 58.1-3506 (a)(39). Thisi is ani increasei from thej prior year rate of  different rate. No change is being proposed for calendar year 2024.  $0.000001 per $100 of assessed valuation.  Ar notice of public hearing was published in the Bedford Bulletin on. April3, 2024.  ACTION REQUESTED:  Town Council is requested to consider adoption of the ordinançe presented.  YES NO OTHER  ROUTING  DATE: APPROVED () FOREMAN DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () () TOWNATTY. () LT. () () () COMM. DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () () ENGINEERING ( ) OTHER () () () FINANCE () () () FIREI DEPT. (C) () () () H.R.  () () )  () ()    ORDINANCE NO.  ORDINANCE LEVYING TAXI UPON TANGIBLE PERSONAL PROPERTY AND  ESTABLISHING THE TAX RATES THEREON FOR THE CALENDAR YEAR BEGINNING JANUARY1,2024  BEI IT ORDAINED by the Town Council ofthe Town of Bedford, Virginia, that there be, and is hereby levied, for the calendar year 2024, a tax rate of$1.06 per one hundred dollars ofone hundred per centum (100%) of assessed value on all taxable tangible personal property, including property separately classified in Section 58.1-3503 of the Code of Virginia, 1950, as amended, unless exempted from taxation or subject to a different rate under this ordinance. All tangible personal property employed in a trade or business other than that described in subdivision 1 through 18 of Section 58.1-3503 is taxed at a levy of $0.000001 per one hundred dollars of one hundred per centum (100%) of the assessed valuation. Household goods and personal effects as classified in Section 58.1-3504 and horses, mules and other kindred animals, hogs, poultry, grains and other feeds used for the nurture of farm animals, grain and tobacco; cattle, sheep and goats, farm machinery and farm implements as such items are classified in Section 58.1-3505 are exempted in whole from tangible personal property taxation. The following items are taxed at a rate of$0.20 per one hundred dollars ofc one hundred per centum (100%) oft the assessed valuation: (a) machinery and tools separately classified in Section 58.1-3507; and (b) motor carriers as separately classified in Section 58.1-3506; (c) one vehicle owned by disabled veterans, of the Code of Virginia, 1950, as amended, as separately classified in Section 58.1-3506(a)19); and (d) motor vehicles with a seating capacity of not less than 30 persons, including the driver, as  separately classified in Section 58.1-3506 (a)(39).    TOWN OFI BEDFORD, VIRGINIA TOWN COUNCIL ACTION FORM  ITEM: Resolution Setting Percentage Tax Relieft to Exhaust PPTRA ReliefFunds  DATE OF COUNCIL MEETING: April 23,2024  DATE: April 15,2024  PRESENTATION:  The Virginia General Assembly in 1998 passed the Personal Property Tax Relief Act with the philosophy that reliefwould be gradually implemented to eliminate personal property tax on personal use motor vehicles. By 2004, the Virginia General Assembly had revised its philosophy and capped the contribution from the Commonwealth to localities for reimbursement for personal property taxes. Asar result, the City Council, on November 22, 2005, in accordance with state statutes, adopted an ordinance which provided that the funds to be reimbursed to the City of Bedford by the Commonwealth would be allocated in such a manner as to eliminate personal property taxation on each qualifying vehicle with an assessed value of $1,000 or less and that the Council would set, annually by resolution, aj percentage ofreliefi in respect to assessed values of more than $1,000 as applied to the first $20,000 in value ofeach such qualifying vehicle so as to exhaust fully the PPTRA funds provided to the City by the Commonwealth. The funding and methodology The amount received from the State, $280,647, is allocated toward personal property tax reliefi in the Town of Bedford for fiscal year 2024-2025. In the prior fiscal year, a rate of 100% on the first $20,000 of assessed value was adopted and the total relief applied to personal property bills was $462,923.81. Council is asked to consider adopting al PPTRA rate of 100%1 for fiscal year 2024-2025.  oft the PPTRA remained the same upon ther reversion oft the City toa" Town.  ACTION REQUESTED:  Town Council is requested to adopt the resolution as recommended by staff.  YES NO OTHER  ROUTING  DATE: APPROVED () FOREMAN DENIED DEFERREDTO:  BLACK CARSON () HAILEY JOHANNESSEN STANLEY UPDIKE  () () () TOWNATTY. () IT. () () () COMM. DEV. () POLICE () () () ELECTRIC () PUBLIC SERV. () () () () ENGINEERING () OTHER () () () FINANCE () () () FIRE DEPT. () () () () H.R.  - () ( )  () ()    RESOLUTION  ESTABLISHING A PERCENTAGE TAX RELIEF RATE PURSUANTTOTHE  VIRGINIA PERSONAL PROPERTY TAX RELIEF ACT  WHEREAS, the Virginia General Assembly in 1998 passed the Personal Property Relief Act based upon a philosophy that in passing the Act the personal property tax on personal motor  vehicles would be eliminated; and  WEHREAS, in 2001, the Virginia General Assembly set the reimbursement rate to localities for personal property taxes for personal vehicles at seventy percent (70%) oft thej personal  property tax amount; and  WHEREAS, in 2004, the Virginia General Assembly enacted statutes which drastically changed the philosophy ofthe Act and capped the contribution ofthe Commonwealth to localities  for reimbursement for personal property taxes; and  WHEREAS, on November 22, 2005, the City Council of the City of Bedford passed an ordinance (Ordinance No. 05-24) which provided, among other things, that the allocation of personal property tax reliefbe allocated in such a manner as to eliminate personal property taxation on each qualifying vehicle with an assessed value of $1,000 or less and that with respect to qualifying vehicles with assessed values of more than $1,000 the City Council, by resolution, would set annually a percentage to be applied to the first $20,000 in value of each such qualifying vehicle that based upon estimates of assessments would use up all remaining available state  personal property tax relief; and BEDFORD AS FOLLOWS:  NOW,THEREFORE, BEI IT RESOLVED BY' THE COUNCIL OF THE TOWN OF  Section 1. In accordançe with the requirements set forth in Section 58.1-3524(C) (2) and Section 58.1-3912(E) of the Code of Virginia, as amended by Chapter 1 of the Acts of Assembly (2004 Special Session 1) and as set forth ini item 503.E (Personal Property Tax Relief Program) of Chapter 951 ofthe 2005 Acts of Assembly any qualifying vehicle having a situs within the Town commencing January 1, 2024, shall receive personal property tax reliefin the following manner:  1. Taxreliefs shall be allocated sO as to eliminate personal property taxation for qualifying 2. Personal use vehicles valued at $1,001 -S $20,000 will be eligible for 100% tax relief. 3. Qualifying personal use vehicles valued at $20,001 or more shall only receive 100%  personal use vehicles valued at $1,000 or less.  tax relief on the first $20,000 of value.    4. All other vehicles which do not meet the definition of "qualifying" (for example, including but not limited to, business use vehicles, farm use vehicles, motor home, etc.)  will not be eligible for any form oft tax relief under this program.  Section 2. Ifany amount of Personal Property Tax Relief Act funding is not used within the Town's fiscal year, it shall be carried forward and used toi increase the funds available for personal  property tax reliefin the following fiscal year.