Charles City’s proposed budget in the $21 million range; figures in two-to-four cent tax hike

Already facing backlash over current fiscal year finances, Charles City’s Board of Supervisors still had to press forward with considering a budget for the FY2025-26 cycle. The board’s first look of the proposal came at Tuesday night’s regular board meeting.

Charles City Director of Finance Christina Crawley-Jones proposed a budget ranging between $21.4 to $21.6 million at the meeting. Crawley-Jones made the proposal based on a possible increase in real estate taxes. The $21,413,517 reflects a three-percent increase in real estate taxes, while the $21,626,809 reflects a six-percent increase in real estate taxes.

Among discussion that the county board will be considering is the possibility of a tax increase for the county. The finance director is recommending a minimum of a two-cent tax increase, which would bring the real estate rate to 71 cents per $100 of assessed value, which would add $211,260 to the budget. However, Crawley-Jones said that having a four-cent tax increase would help the county begin to restore its fund balance, something citizens have asked questions about over the past several months due to county leaders entering into an agreement for a Revenue Anticipation Note (RAN). A four-cent tax increase would result in the real estate rate becoming 73 cents per $100 of assessed value, contributing $422,520 in additional funds. One penny on the tax rate is equal to $105,620.

There are three primary new expenses that are expected to be covered by the additional funding. The first is an expected increase in attorney fees. The second is providing a three-percent salary increase for county staff, constitutional officers, and the county’s Department of Social Services. Constitutional officers are expected to receive an increase due to legislation that passed last year. The final new expense is providing consultant support for CPA Accounting (for financial reports), ERP System Planning and Implementations (to improve expense control and streamline the budgeting process), and CAMA System Implementation (to upgrade financial systems and improve accuracy of real estate appraisals.)

For Charles City County Public Schools, Crawley-Jones is recommending level funding in the amount of $7,201,636. This amount includes a three-percent salary increase for all school staff. School officials had requested $7,423,743 in funding, which now leads to school officials how to deal with a tentative shortfall of $222,107.

For Capital Improvement Plans, Crawley-Jones did not mention specific details on county projects, stating that they will be really tight on what they approve for the upcoming cycle. However, she did say the school system will receive $298,394 for the addition of one school bus to the current fleet and upgrading laptop equipment at the elementary school. School board leaders had asked for $359,567 in county funding for CIP projects, with the replacing of carpet at elementary school being the item left off the finance director’s recommendation list.

After the budget was presented, a few citizens spoke at the podium about adding expenses during a budget when they were currently financially struggling. For one board member, he understands the frustration of the citizens.

“I know we want to move things faster when it comes to finances, but this budget is taking a step in the right direction,” commented District 2 supervisor Michael Hill.

Citizens will have the opportunity to comment on the county’s budget at the May 13 budget public hearing. County citizens will also be able to view the county’s audit on May 1.