Tension amongst board members rises as New Kent passes FY2024-25 budget, two-cent tax increase

While New Kent’s Board of Supervisors were able to approve their FY2024-25 budget of $112.8 million at the May 29 work session, there was enough tension in the room to probably start a streaming series on how it got there.

The process started early in the morning, with County Administrator Rodney Hathaway recapping the budget that will see a two-cent tax increase from 57 cents to 59 cents. When board chairman Thomas Evelyn asked for comments, District 5 representative Jordan Stewart voiced her concerns over the hike.

“I have had thoughts, and while this is exciting for Mr. Hathaway, this is heavy on my heart,” she said. “I’ve consulted and reached out to residents and constituents, and they shared a lot of tough decisions they would have to make.

“I think we’re prime for a tactical pause on every dollar brought into this county,” Jordan added. “Surrounding counties are not increasing taxes. I want to be abundantly clear to anyone that wants to listen to this in the future; I believe that a tax increase only promotes overexpanded government and overburdens an already overburdened tax-base, and our residents are our overburdened tax-base.”

Hathaway interjected, saying that while surrounding counties advertised there were no tax increases, the reality was that they do not show their true assessed value.

“Citizens were happy when we lowered it from seven cents to two cents (per $100 of assessed value),” commented District 3 leader Amy Pearson. “Nobody likes to raise taxes, but just like households, electricity has gone up, and our regular operating expenses have gone up, just as they have for our citizens.”

Evelyn commented about how he knew that the board wouldn’t support a seven-cent increase to taxes.

“I feel staff and this board did a good job, and I will be honest, I haven’t had the first call or email about this budget,” he said, referencing the reduction of the tax increase.

Stewart continued to oppose any type of increase, while District 4 Ron Stiers asked for more clarification on how the Capital Improvement Plan (CIP) would be factored into the budget. A few questions were answered, but Stewart insisted there were other ways to amend the budget to prevent a tax increase. The first vote passed 3-2 to approve the tax increase before the group took a short recess.

After emerging from the recess, the boards approved the CIP proposal and fee adoption. But something was troubling Evelyn that stemmed from Stewart’s remarks. Evelyn asked board members to reconsider the vote, which led to the reopening of discussion on the tax increase.

“I want to hear what my fellow board members have to say to get it down to 57 cents,” Evelyn commented, directing them to Stewart and Stiers.

Stewart responded, saying that she didn’t have a list at the time to present. However, Evelyn expressed his frustration and the importance of working on the budget.

“You [Stewart] come up here and spoke about 57 cents and you’re not providing us with anything today to us to adopt,” Evelyn said. “If somebody wants to make cuts, you should present to other board members on how to get it [tax rate] down two cents. Can’t you give us one cut to get us down a million dollars?”

Stewart responded and said that she didn’t believe she would receive the votes to support the change. For Stiers, he wanted clarification on moving funds.

“I wanted to see if we can make cuts out of our CIP and transfer it to operating,” he said. “I wanted to see if that was a way so that we didn’t need a tax increase.”

Stiers specifically spoke of a $1.8 million project to build a community center on Wahrani Trail, which totals approximately $1 million if approved. Stiers recommended the other $800,000 to be provided to New Kent Fire/EMS for their needs.

Hathaway intervened, commenting how stage legislature passed a budget that created language for a group to be organized to determine the redistribution of historic horse racing funding.

“We feel that the language specifically put into the language is in there for funding that New Kent is receiving, and we feel that is going to be redistributed somehow,” the county administrator added. “We won’t be receiving the same capital revenue that we use to have, so I give you caution when using capital revenue funds and more than likely you won’t see those funds.”

As tension continued to mount over the discussion, a recess was taken to try to calm the atmosphere. After a few hours, the board returned, with Evelyn asking Stewart how to save just over a million dollars in cuts to prevent a tax increase.

“I am looking with the thought process that we will have an increasing economic budget based on the developments coming in,” she said, specifically pointing to the Autozone facility that is expected to open in 2025. “I believe we can cut $511,000 from the CIP and move it to operating, saving us one penny.”

Evelyn and Stewart continued to talk about the usage of funds from the CIP to operating, with Evelyn saying it’s a bad practice.

“We talked about the budget at New Kent Visitors Center,” the chairman said. “For you to come in here today and not have a plan on how to cut those two cents, that’s irresponsible. You’re not a leader, you’re a politician.

“For you to come in here and do what you did here today, you didn’t do your constituents any favors,” Evelyn continued. “You didn’t do your staff any favors either.

“We already have $1.2 million we have to recoup from Colonial Downs,” Evelyn monologued, mentioning the expected amount of funds that would be loss if money is repurposed. “With this plan, we are going to have to cut another $1.8 million in the capital, which means we are going to have to come up with $2 million for next year which means we’d be starting $4 million in the hole next year. Autozone is not covering that.”

Stewart retorted, saying that Evelyn’s recollection of the dialogue at New Kent Visitor’s Center was incorrect.

“When we met at the visitor’s center, I said I was uncomfortable with it but I understand it,” she said. “I didn’t say I agree with it. That’s why I support our mandated services. There are several areas that we can cut that aren’t mandated.”

An awkward silence entered the atmosphere, before other board members attempted to break the tension.

“Taking from the capital improvement plan and using it for general operating is not fiscally responsible,” commented Pearson.

“I got the awakening of my political career by what was passed by the governor about Colonial Downs,” chimed in District 2 supervisor John Moyer. “When I heard that, I made a commitment that I wasn’t going to transfer anything from capital unless it was going to something else in capital.

“We may not see a dime from this,” Moyer continued. “If it goes in effect it will start in 2025-26. I can’t commit to anything where we may not have the money.”

Evelyn distributed a chart of surrounding jurisdiction and their tax rates.

“James City County is 83 cents while their equalized rate is 68 cents,” he said, which is the equivalent of a 15-cent tax increase. “Henrico is 85 cents with an equalized rate of 75 cents, or a 13-percent tax increase.

“Hanover is the closest to us at 81 cents with an equalized rate of 77 cents, which is still a five percent increase,” Evelyn continued. “We’re the lowest one of all of the biggest localities surround us.”

Evelyn and Stewart continued debating, with Stewart claiming that the tax rate was still the same for the surrounding counties in 2023, and Evelyn commenting that New Kent has been transparent in advertising their equalized rate and increase, something the other localities do not demonstrate.

Evelyn asked Stewart to continue to list her cuts, which totaled $317,838 and included recommendations of cutting wages, amounts on special events, and having a one-time infusion of CIP funds into the operating budget. The chairman responded, speaking about a policy that had been passed earlier that promised the adding of funds borrowed from CIP for the current year to be added back in the CIP in future years.

Stiers added that he received his answer about using funds from the CIP, and Pearson commented that in her years of service to the county she has never heard of CIP funds being transferred for operating purposes.

“I feel bad that we had to put this out in public and you [Stewart] should have had a plan,” Evelyn said. “You said you knew it was going to pass by three votes, but you couldn’t do what was right for all the citizens of New Kent.”

“I presented options that aren’t supported,” Stewart rebutted. “That means I will work harder in the next budget cycle. But I’m not going to tell you what you know and I don’t expect you to know what I know. I just expect us to work respectfully.”

Moyer summed up his thoughts, seemingly reflecting his interest for the entire county and not his district alone.

“I looked at the leaders of the county and their wish lists,” the District 2 representative said. “I talked to people about it and respected the process and expect that it will continue to do that next year.

“I take the barometer of everything that has been said here today and I have to do what’s right and do what’s right for the people out there,” Moyer added. “This action we’re taking, whether it’s an inaction or not, don’t let this be a reflection on us.”

Moyer moved to approve the tax increase from 57 cents to 59 cents per $100 of assessed value. The vote passed 4-1, with Stiers changing his vote based on his belief that capital improvement funds should not be utilized for operating purposes. Stewart remained the only supervisor against the vote.

The school budget and operating budgets for FY2024-25 passed 4-1, with Stewart casting the lone dissenting vote. The public utility fund budget and the reimbursement resolution that allows the county to reimburse itself for any future costs on CIP projects passed unanimously.

As the meeting closed out, Evelyn made a quick reflection on the meeting.

“I just want to apologize to our citizens, our staff, on what this Board did today. Change is good. And I support change. I support new members. But what we showed today was not leadership and I’m embarrassed because I take pride in feeling like we run the best County in this Commonwealth and we did not show that today. So, I apologize on behalf of the Board – well on behalf of myself, because I can’t speak for the rest of the Board. But I’m hoping this process next year will be a lot better. We have a lot of learning to do.”

Stewart did not comment at the end of the meeting.

Reporter Robb Johnson contributed to this story.