Bill filed by Forsyth lawmaker to set aside revaluations

Ed Hanes Jr.

UPDATE: NC Rep. Ed Hanes says Rep. Evelyn Terry, a fellow Democrat, will co-sponsor the bill, and that he's still working on his Republican colleagues.

ORIGINAL POST: NC Rep. Ed Hanes Jr. (D-Forsyth) has filed legislation allowing county commissions to set aside the latest property revaluation. The bill, which was filed today, was drafted in response to a public outcry by homeowners in predominantly black neighborhoods on the the east side of Winston-Salem who are alarmed that depreciation rates from 50 to 70 percent will effectively wipe out their most significant investments.

No other members of the Forsyth County delegation, including fellow Democrat Evelyn Terry or the three Republican members, are cosponsors.

Winston-Salem Mayor Allen Joines has pledged to introduce a resolution in support of the bill at the next city council meeting on March 25.

Meanwhile, the bill faces steep hurdles, being that it was filed by a freshman Democrat in a Republican-controlled state legislature without the support of the county delegation's Republican members. 

And even if the bill passes, there is no guarantee that the Republican-controlled Forsyth County Commission will choose to act on it. Commissioners Walter Marshall and Everette Witherspoon, the two Democrats and representatives of District A who serve on the county commission have urged property owners to lobby their Republican colleagues.

In other legislative news today, Hanes signed on with Rep. Debra Conrad and Rep. Donny Lambeth — both Forsyth County Republicans — to a bill that would allow the city of Winston-Salem to skirt seismic upgrade requirements — essentially building codes ensure that structures are safe in the event of an earthquake — for temporary occupancy of an emergency operations center.

Sen. Pete Brunstetter (R) and Sen. Earline Parmon (D), the two senators from Forsyth County, are cosponsors of the Senate version of the bill.

Mayor sides with east Winston-Salem homeowners in reval fight

Allen Joines

Mayor Allen Joines told a group of east Winston-Salem homeowners last night that there's nothing city government can do to help them, but signaled his solidarity in an election year when black voters are looking for reassurance that their interests are being addressed.

"I'm with you," Joines told about 25 people at a community meeting at Shiloh Baptist Church on Monday evening. "I understand the concern about this revaluation.

"Citizens and residents have worked hard all their life, paid off that mortgage," he continued. "Then, when they retire a little later on in life that piece of property is something that could help them in their later years. They have some asset that they could pass on to their children and things of that nature. So there's something just wrong, I believe, in this process." 


Virginia K. Newell, a retired alderman and retired math professor at Winston-Salem State University who is now a real estate agent, issued a test to Joines, asking him what effect he thought the reappraisal would have on a house that recently went up for sale in her neighborhood.

"Ms. Newell, I would have to believe that potential buyers are going to look at the tax value as some indication of what they believe the value would be," the mayor answered. "I've had some real estate appraisers try to tell me that it really doesn't impact it. But I believe it does. When I was looking to buy my house, I looked at what the tax value was and tried to make some decisions along those lines. I believe it would have a negative impact. You're in real estate. You probably know better than I do."

Joines said he supports legislation NC Rep. Ed Hanes Jr. has pledged to file that would freeze property values at their valuation before the recent reappraisal. Joines said he plans to take a resolution in support of the Hanes bill to city council on March 25, adding that he is confident his colleagues will support it.
  
Led by the Rev. Paul Lowe Jr., the residents also agreed to seek a meeting with the Forsyth County Board of Equalization and Review to address deep drops in property values in predominantly African-American neighborhoods at a systematic level.

Forsyth County Commissioner Walter Marshall, who represents District A, encouraged residents to get involved in the process of appointment for the board of equalization, which hears appeals to tax revaluations. He said there is one black member of the five-member board, Richard Davis. Marshall said the Republican-controlled county commission allows the two black Democrats to appoint one person to the board. Residents of east Winston-Salem should engage Davis to find out if he's sensitive to their concerns, Marshall said. If not, they should find someone else to request appointment and tell their District A representatives so they can lobby their Republican colleagues on the county commission. 

The deadline for applications is March 20, and the county commission will make the appointments on March 25.

Ruth Carter, a resident of the East Ward, articulated fears in the community that the significant depreciation in values sets the east side of Winston-Salem up for a wave of gentrification.

"Something is going to happen over here in east Winston that's going to take our homes, whether we want 'em to or not," Carter said. "This is what I'm looking at. Now, I don't know about you, but this is my gut feeling: They are lowering the tax [value] on our houses in order for us to give 'em up. I tell you: I'm going to fight it."

Joines is a strong supporter of the Wake Forest Innovation Quarter, formerly known as Piedmont Triad Research Park, the Salem Creek Connector and other initiatives to make the eastern flank of downtown more attractive and vital.

"I can understand your concern," Joines told Carter. "That's the reason I think we all got to stick together here. There has been some discussion of class-action lawsuits and things of that nature."

 

Forsyth County faced with tax increase after drop in property valuation

Forsyth County Manager Dudley Watts addresses members of the county commission during a budget briefing.

Forsyth County would have to raise taxes by 6.3 cents per $100 of valuation to make up for a loss of revenue from a projected 8.6 percent drop revenue in the overall valuation of property in this years reappraisal by the tax department.

That was the news delivered this morning by staff at an annual strategic planning session by the Forsyth County Commission this morning.

Without the 6.3-cent tax increase, Budget Director Rhonda Tatum said the county is looking at a $16.8 million budget gap.

"We don't have that in pens, pencils and paper anymore," she said. 

"You don't have it there. Say you save something in public health, it would affect revenue," she added, alluding to the state and federal matches that the county receives in that sector. "So that picture would be worse. And social services, if you say cut positions, you've got to cut twice as many positions to get one. So there is a big impact on what we're doing here."

County Manager Dudley Watts said staff conducted a review of non-mandated services that could be cut.

"We could cut staffing way down in libraries, we could cut the number of books that we're buying, but then you've got a not very good library," he said. "I think from y'all's perspective you'd rather just close that branch and make other branches stronger. So it will be that kind of a discussion."

Commissioner Gloria Whisenhunt, part of the board's conservative Republican majority, suggested Watts look at creating an incentive program to encourage senior employees to retire to reduce payroll costs. Commissioner Bill Whiteheart, another conservative, said the news presents an opportunity to "reassess what public tax dollars are really for" and refocus on core services.

Commissioner Dave Plyler, a moderate Republican, suggested selling county assets to close the revenue gap.

"Tanglewood?" he asked.

A nervous gasp could be heard in the meeting room, followed by a brief moment of silence, and then the subject was quickly changed.

Commissioner Everette Witherspoon, one of the board's two Democrats, acknowledged that the conservative majority calls the shots, but noted that Forsyth County has the lowest tax rate of any urban county in the state.

"This is a lot of pain, a lot of pain, if we don't have a tax increase," he said. "I think it's time for a modest tax increase."

Commissioner Walter Marshall, the board's other Democrat, suggested consolidating four high schools. He said Carver High School, Atkins High School, Walkertown High School and Winston-Salem Preparatory Academy — all of which are within 2.5 miles of each other — have a combined population of about 1,400 students. He estimated that the county would realize an immediate cost savings of $1 million.

Property values typically show a gradual increase between revaluations, Tax Director John Burgiss noted, but after the last revaluation in 2009 the foreclosure crisis slammed Forsyth County, along with the rest of the country, causing overall values to fall.

"I think I could have been working for 80 years and not see a reappraisal like this," Burgiss said.