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1. What is the Tuckahoe Creek Service District (TCSD)?

The TCSD is a water and sewer service district that was created in 2002 to provide water and sewer services to certain areas in the district and to provide a mechanism for payment. The TCSD is generally bounded on the east by the Henrico County line, on the north by the Hanover County line, on the west by portions of Route 623 (Hockett Road), portions of Route 676 (Hermitage Road), and portions of Route 622 (Rockville Road) and on the south by State Route 6 (Patterson Avenue). The district facilities and district services are intended to primarily benefit the landowners within the district, and as an ancillary matter, all the citizens of Goochland County. They are intended to spur business, commercial and industrial growth, and economic development within the district, increase property values for the district landowners, and protect the health and safety of the residents in the district. See links below for a map of the parcels in the TCSD and the West Creek Business Park. Please note that the West Creek Business Park is generally located within the TCSD, but the TCSD boundary is much larger and encompasses other commercial business areas as well as residential neighborhoods. TCSD map

2. My real estate tax bill has an additional Ad Valorem tax on my property. What is an Ad Valorem tax?

Goochland County’s Ad Valorem tax is an additional tax assessed to properties located within the Tuckahoe Creek Service District (TCSD).
Pursuant to Section 15.2-2400 of the Code of Virginia of 1950, as amended, the Goochland Board of Supervisors may impose an ad valorem special tax on the assessed values of the tax map parcels in the service district to pay the costs of the district under the plan. All taxes levied and collected are pledged to finance the costs of the TCSD.
Here is a link to the County Code section that describes the district in detail:

TCSD Code

3. What is the Ad Valorem tax rate?

The current ad valorem rate has been $0.32 per $100 value since 2012. This tax is in addition to real estate tax. The real estate tax rate is currently set at $0.53 per $100 value (2017).

Example: If a parcel of land is assessed at $100,000*.
The real estate tax would be calculated $100,000/$100 = $1,000 x $0.53 = $530
The ad valorem tax would be calculated $100,000/$100 = $1,000 x $0.32 = $320
Total real estate and ad valorem tax = $850

*Properties within the TCSD that participate in the special assessment for land preservation program (Land Use Program) shall be taxed at the full assessed value.

Below is a graph that compares Goochland’s ‘Ad Valorem Tax’ residents to other neighboring localities.
Combined Tax Rates for those in TCSD

4. Will the Ad Valorem rate ever change?

The Goochland Board of Supervisors sets the ad valorem rate annually to meet the debt and operational obligations related to infrastructure and operations of the utility operations within the TCSD. Assuming moderate growth and economic development within the TCSD, the ad valorem rate is expected to remain static until the property values and other revenues of the TCSD exceed the obligations on the system.

5. How long will properties in the TCSD be required to pay the Ad Valorem tax?

The debt, as paid by the Ad Valorem tax, will not be paid in full until 2042 so the tax will remain in place until the debt and other obligations are met.

6. How much Ad Valorem tax has the County collected over the past 6 years? How much of the 55% revenue sharing taxes has the County transferred to the TCSD over the past 6 years?

FISCAL YEAR AD VALOREM 55% REVENUE SHARING TOTAL PROPERTY TAX 2012 $2,225,275 $857,022 $3,082,297 2013 $2,245,615 $883,174 $3,128,789 2014 $2,364,542 $938,204 $3,302,746 2015 $2,552,366 $1,097,900 $3,650,266 2016 $2,835,000 $1,124,633 $4,083,633 2017 $3,032,465 $1,335,690 $4,368,155 UPDATED August 2017

7. What additional revenue is contributed to meeting the TCSD Debt obligations?

In addition to the Ad Valorem Tax, 55% of the increase in general real estate levy revenues from taxation on land and improvements of non-residential properties is dedicated to meeting the repayment obligations. The 2002 value of taxable non-residential land and improvements in TCSD serves as the base from which increases are calculated. These General Funds must be dedicated to the debt obligation until paid in full and cannot be utilized for other General Fund obligations.

Below is a graph. TCSD Ad Valorem Chart

8. What is the total assessed value of property in the TCSD?

The chart below shows the assessed value of the property in the TCSD since 2003 for new construction and growth combined. 

Note: Total assessed value is a combination of new construction and growth in value of existing properties.

YEAR ASSESSED VALUE PERCENT CHANGE 2003 $233,087,900   2004 $244,616,300 4.95% 2005 $356,233,800 45.63% 2006 $412,812,200 15.88% 2007 $660,606,500 60.03% 2008 $701,712,400 6.22% 2009 $777,373,006 10.78% 2010 $715,752,500 -7.93% 2011 $694,329,600 -2.99% 2012 $683,264,693 -1.59% 2013 $701,257,546 2.63% 2014 $753,837,392 7.50% 2015 $804,350,120 6.70% 2016 $928,005,234 15.37% 2017 $929,707,840 0.18%

Note: Total assessed value is a combination of new construction and growth in value of existing properties. 

 The chart below shows the Ad Valorem rate versus the TCSD assessed values.

Ad Valorem Rate Versus TCSD Assessed Values

9. Why/how did my property get in the TCSD?

Before the TCSD was formed, every landowner in the proposed district was given an opportunity to opt-into the district or opt-out of the district. Since that time, many parcels have changed ownership or been subdivided. Even though new parcels are created through subdivisions, the subdivided parcels are considered to be in the TCSD.

10. How much money did the County borrow to create the TCSD?

The County borrowed for water and sewer infrastructure through revenue bonds issued through the Virginia Resource Authority (VRA) and made other long term obligations to Henrico County and the City of Richmond related to providing water and sewer.
Long Term Obligations of TCSD

11. What is the remaining debt service by year on the bond until it is paid off?

Please see below link for the remaining debt service by year.
Remaining Debt Service by year

12. I heard the County got the VRA bonds restructured? What does that mean?

In 2012, the County was able to take advantage of lower interest rates and restructure the debt payments, which provides additional time for development to occur within the Tuckahoe Creek Service District and stabilize the ad valorem rate at $0.32. Below is a chart that shows the original expected ad valorem tax rate structure prior to 2012 refinancing vs. the new outlook for the ad valorem rate following the refinancing. Previous Ad Valorem rate outlook

13. I would like to be able to connect to the TCSD water and sewer. What do I need to do to join the district?

Only those parcels located within the TCSD can connect to the water and sewer from the TCSD system. Anyone may petition the Board of Supervisors to gain entry into the TCSD by filling in the ‘Application to Enter the TCSD’ found below.
The Board of Supervisors shall consider the request after holding a public hearing in accordance with state law. If the request is granted, the landowner will be subject to the ad valorem tax.
Application to Enter the TCSD

14. I am not connected to water and/or sewer, why do I have to pay the Ad Valorem tax?

The County’s debt structure was based on the cumulative value of all the properties in the TCSD. While the TCSD was established to provide water and sewer to the district, not all parcels in the TCSD are connected to water and sewer at this time.

15. Is there a way to exit the TCSD?

The Board of Supervisors will consider requests for removal from the district once every two (2) years beginning in September 2016. The next consideration will be September 2018. There are certain minimum requirements that must be met before the Board of Supervisors will consider a request for removal.
1. The request must be for residential property not currently serviced by water or sewer. If the property is serviced by water and/or sewer from the TCSD, the property must remain in the TCSD.
2. No such parcel shall be removed from the service district unless such removal is offset by the inclusion of parcels(s) subject to taxation of equal or greater assessed value at the time of inclusion that were added to the district within the preceding two (2) years of the request.
3. Commercial property is not eligible for exclusion from the TCSD.

In addition, any parcel of land that is removed from the district shall not be eligible for rejoining the district for a period of five (5) years after the request to be entered back into the district.
An application to be removed from the TCSD can be found below:
Application to Exit the TCSD

16. Is there a TCSD reserve? How much is currently in the reserve?

Yes, the reserves are established for the TCSD and are shown in the chart below:
Reserves as of 6/30/16
US Bank $13,535,478*
General Fund $800,000
*Cannot be used until final years of the debt repayment per the financing agreement.