Cumberland County government has never experienced what it’s about to go through — raising taxes to offset a loss of usually reliable tax revenue. Tax administrator Joe Utley says the value of the county’s tax base of $18,780 billion has declined by half a billion dollars, or 2.9 percent, since 2016. That represents more than $4 million in lost money. Utley said tax notices were mailed Jan. 31. Property taxes represent only about one-half of annual general fund revenues needed to operate county government. The loss will be offset by an increase in sales and motor vehicle taxes, which are up.

The County Board of Commissioners Finance Committee got the bad news last week. “it’s not good but could have been much worse,” said committee chairman Marshall Faircloth. County Manager Amy Cannon has said over the past several months that our community has not bounced back from the great recession in 2008 as other cities have. Asked about that, Faircloth gave a one-word answer: “jobs.” What he meant, of course, is lack of jobs. Faircloth pointed to the unavailability of mortgage money over the last eight or nine years.

While residential property values are down, the worth of commercial properties is up — shopping centers by 11 percent, mini-storage warehouses by 12 percent and vacant commercial land by 13 percent. Contrast that with a crash in the value of local condominiums whose value is off by 31 percent from last year. Single family residential values are down by about 5 percent. Approximately 72 percent of the tax base comes from residential properties and 28 percent is from commercial and industrial, said Utley. “Sixty-two percent of properties had an assessed value reduction,” said Utley. County commissioners would have to raise the tax rate by two cents from the current 74 cents per $100 of property valuation to make up the $4 million loss.

What does all of this mean for the taxpayer? Responses are mixed: Faircloth, who is a certified public accountant by profession, believes even most homeowners will painlessly absorb a two-cent tax rate increase. For those who suffered a loss of worth, a tax increase will make up the difference to achieve revenue neutrality. The tax rate would have to go up slightly to bring in the same amount of money to operate county government at current levels. For her part, Cannon is not so optimistic. “The best thing we can do is develop some options for the board to consider,” Cannon said. “That could include reducing our expenditures, which may lead to a reduction in county services.”

The total assessed value for the City of Fayetteville dropped about 3.5 percent overall. Residential values were down $604 million (7.2 percent) but commercial values increased $169 million (4.2 percent). A boost in the tax rate would be needed for the city to earn the same amount of revenue it now does. Hope Mills got by almost unscathed with less than a 1 percent loss. Spring Lake’s properties lost about 1.5 percent of their value.