One cent tax increase part of $60 million proposed New Kent budget

A one cent tax increase on New Kent County’s real estate tax rate highlights a proposed budget of close to $60 million for the locality in FY2016-17.

New Kent’s Board of Supervisors received their first look at the recommended figure during their Mar. 14 regular meeting.

County administrator Rodney Hathaway’s proposed budget of $59,599,181 for the upcoming cycle is $2,886,796 more than the county’s current budget. As part of the increase, the county’s real estate tax rate is proposed to increase by one cent to 84 cents per $100 of assessed value.

Hathaway explained that even though the current rate is 84 cents, the increase is compared to an equalized rate which sits at 83 cents. The county administrator said the extra penny would be used to offset debt services used for borrowing funds for projects such as an emergency communications radio system.

General revenue funds are expected to increase by $1,378,527, according to Hathaway. Revenue streams over and above the current year and anticipated for the next year, according to the proposal, include real estate taxes ($627,491 for the one penny increase for the 84-cent rate), personal property tax ($241,070), delinquent accounts collection ($201,917), and a one-time expenditure for advance online account wagering ($100,000). No personal property tax increase is proposed.

Under Hathaway’s recommendation, county schools are expected to receive $30,916,241 in the next cycle, an increase of $1,870,135. The county administrator said the new money is the result of an increase in state funding and the recent budget passed by the state’s General Assembly.

More notable proposals in the budget include hiring of two firefighters and conversion of a part-time maintenance technician to a full-time position. There is no proposal for a salary increase for county employees in this year’s budget.

More adjustments for mandated salary increases have not been currently reflected in this budget but were noted by Hathaway. Those mandates are two-percent salary increases to the Department of Social Services (director and employees), constitutional officers, and the registrar and electoral board only. Those pay increases would become effective Dec. 1 of this year. The only other mandate is a two-percent raise for schools that affects Standards of Quality funded positions. Superintendent of schools David Myers has asked county leaders to implement a three percent raise for all employees.

The administrator proposes a $2,720,442 capital improvement plan. Of that amount, $857,892 is set aside for schools, $550,000 for replacement of a fire engine, and $408,850 for vehicle replacements (including the sheriff’s department).

Public utility (sewer and water) will not see a rate increase under the proposal. There is no increase slated for connection and availability fees, but Hathaway has proposed a new water availability fee that will cost new homeowners around $2,500. However, the county administrator also proposed a decrease in the sewer connection fee from roughly $5,500 to $2,500.

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 $4,683,097. That is a reduction of $183,430 from the $4.86 million for the current fiscal year.

Public utility CIP projects total $532,950, with big ticket items including $190,000 Water Systems Interconnections, replacing of a storage garage building in the amount of $156,950, and a Department of Environmental Quality (DEQ) study on water supply feasibility at a cost of $100,000.

With public utilities included, New Kent’s budget totals $64,282,278.

Supervisors elected not to comment on the budget as they will meet this Friday (Mar. 18) for a budget retreat at New Kent Forestry Center. Along with the current budget, talks will also center around future budget challenges, including addressing the need for renovations at New Kent Elementary School and possible construction of a new elementary school. More talks related to capital and operating funding will include addressing county fire stations and apparatus, the dog pound, and the public utility water treatment plant.

A public hearing on the tax rate increase is listed for the Apr. 13 regular board meeting, while the budget public hearing is scheduled for May 9.