Additional revenue to factor in New Kent tax rate proposal

After New Kent county administrator Rodney Hathaway released a near $60 million budget proposal with a one-cent tax increase per $100 of assessed value on the county’s real estate rate at the Board of Supervisors’ regular meeting in March, county leaders used the next few days to chew on the recommendation before continuing the meeting at a Mar. 18 retreat.

But with a new projection on additional revenue expected after a presentation from the county’s Commissioner of Revenue Laura Ecimovic, Hathaway and county supervisors have a lot more options to weigh.

New Kent supervisors elected to advertise the proposed 84-cent tax rate for the upcoming budget year. A public hearing is scheduled to take place at the April 11 regular meeting, but ideas of possibly keeping the rate as it currently stands is already being considered, thanks to an increase in revenue.

Ecimovic commented in the morning session of the retreat that based on the current assessment rate of 83 cents per $100 of assessed value, the county is expected to garner at least an additional $609,776. Hathaway, however, said that monetary figure would increase to $872,779 if his recommendation for the one-cent tax increase remained.

The county administrator presented two options for supervisors to consider with the knowledge of new funds.

Option one calls for keeping the one-cent tax increase in play. The generated $872,779 would be dispersed to give county employees a two-percent pay raise ($220,000), cover an increase in VML insurance ($15,000), set aside one cent for future school construction ($257,847), hire three additional firefighters ($62,112 each for a total of $186,336), use funds for the possibility of constructing a new fire station ($156,314), and add the final $44,577 to contingency. (Additional compensation board revenue of $7,295 would be used to balance the budget.)

Option two maintains the current rate of 83 cents, resulting in $609,776 in revenue. Raises for county employees, covering increased insurance costs, setting aside one cent for school construction, and hiring two additional firefighters account for expenditures to balance the budget (with the additional compensation board revenue also included to even out the figure).

District 5 representative Ray Davis offered a suggestion, one that involved option two but with a twist.

“I would like to see our employees receive a 1.5 percent raise, with the savings going to hiring that third firefighter,” he commented.

Davis remained vocal, commenting on the county school’s request to give employees a three-percent pay increase.

“Schools are talking about giving their employees raises and the state is giving them a mandated two-percent raise,” he continued. “I want our staff to research how much a two-percent raise across the board for all school employees would cost them.”

Hathaway’s proposal recommended an additional $400,000 for schools for the upcoming budget cycle compared to last year’s budget. Davis’ suggestion would reduce that figure to roughly $113,000, with the other $287,000 applied to the construction of a new fire station and completing the funding for an additional firefighter.

Things aren’t set in stone, but supervisors are definitely in the thinking process on this year’s budget.

“This is something we’re definitely going to have to mull over,” said District 1 representative Thomas Evelyn. “We have a lot of options that we can look at.”

“From our talks and conversation here, we definitely have a lot of good ideas that came up today,” said District 4 representative and board chairman Ron Stiers. “I believe that we should hear from the citizens and their opinion on the tax rate. They will provide some insight that the board will take into making a final decision.”

As far as the proposal for a new fire station, it is still an idea in progress, but fire chief Rick Opett commented it would help bring the county closer to national standards.

“As you can see from the map I provided you, most of our emergency response calls have been in the Bottoms Bridge area,” said Opett. “The Quinton station is the busiest station in the county and if I had to make a recommendation, I would recommend placing a station in Bottoms Bridge.”

Hathaway’s projected numbers for a fire station would add $2.2 million in debt to the county over a 20-year period.