No tax hike proposed in New Kent draft $56.7 million next year budget

New Kent’s Board of Supervisors will begin studying a proposed county budget of $56.7 million for FY2015-16. County administrator Rodney Hathaway presented his recommended figure during the board’s March 9 regular meeting. That number, however, is expected to decrease slightly after Hathaway proposed the removal of a one-cent tax increase.

Hathaway’s proposed budget totals $56,712,385 for the upcoming cycle. That figure is more than $7.6 million below the county’s current $64.8 million figure. According to the county administrator, the reduced number comes as the result of funds that were expected to be borrowed through a debt issuance for renovation of the Historic School. That project has been placed on hold, with $5 million in what was expected to be used removed from the budget.

The county’s real estate tax rate was originally proposed to increase by one cent to 85 cents per $100 of assessed value to assist the county in upgrading to a new emergency communications system. However, negotiations with a current vendor has resulted in no need for the increase according to Hathaway, who made the announcement at a Mar. 12 retreat.

General revenue funds are expected to increase by $961,155, according to Hathaway. Revenue streams over and above the current year and anticipated for next year, according to the proposal, include real estate taxes ($216,321 for the current 84-cent rate), personal property tax ($206,224), and sales tax ($116,921). No personal property tax increase is proposed.

Under Hathaway’s proposal, the schools are expected to be fully-funded for the first time in several years. Superintendent of schools Dr. David Myers proposed a $29,046,106 budget for FY2015-16. Of that amount, $13,254,595 was requested in county funds, an increase of $300,000 from the current year. Hathaway commented on the effort to accommodate the school’s request.

“Our cooperation process with the schools this year has been very good,” the county administrator said. “Our staff has put in an effort to help the schools and find a reasonable amount and the schools’ request was deemed reasonable.”

The additional $300,000 request from schools will come in the form of a transfer from the capital projects funds. That amount will be transferred to the school’s general fund to help with a $200,000 lease-purchase payment for the schools’ technology one-to-one initiative program and $100,000 for maintenance costs.

More notable proposals in the budget including the hiring of six new positions including a deputy clerk for New Kent Circuit Court ($44,543) and two full-time firefighters ($70,918). The budget includes a 1.5 percent salary increase for employees as well.

More adjustments for mandated salary increases are implemented into the budget as a result of General Assembly action. Those increases include two percent salary increases for the county’s social services department, constitutional officers only, and the registrar only. Schools will receive a 1.5 percent salary increase for state SOQ (standards of quality) positions, with Hathaway proposing the same increase for non-funded positions.

The administrator proposes a $1.951 million capital improvement plan. Of that amount, $900,000 is set aside for schools, $390,000 for vehicle replacement, and $118,000 to replace the chassis on an ambulance.

Public utility (water and sewer) rates are proposed to increase by four percent. There is no increase slated for connection and availability fees.

Bottoms Bridge Service District “ad valorem” taxes will see no tax increase. The total public utilities’ budget, which is paid for by user and connection fees, is pegged at $4,866,527, a reduction of $5,181,141 from the current fiscal year. The $314,614 decrease is related to a reduction in capital projects.

Public utility CIP projects total $543,710, with big ticket items including $200,000 for a DEQ (Department of Environmental Quality) water supply feasibility study and $180,000 for ground level storage tank maintenance.

With public utilities included, New Kent’s budget totals $61,578,912.

Supervisors are set to study the budget during work sessions scheduled for March 25 and April 29. A budget public hearing is slated for May 11, with adoption to occur the following week.