Budget of $90 million recommended for New Kent County FY2022-23 operations

The continuing influx of new residents and business coming into New Kent County has made it the second-fastest growing locality in the state of Virginia. County Administrator Rodney Hathaway’s proposed budget for FY2022-23 reflected that.

Hathaway presented a budget of $90,462,839 for the upcoming cycle, marking more than a $10 million increase in this year’s budget. By contract, the FY2021-22 budget totaled $79,688,523.

The growth of the county has also reflected on the county’s real estate tax rate. The rate is expected to drop to 69 cents per $100 of assessed value for the new year. The new rate is a 10-cent decrease from the current rate (79 cents per $100 of assessed value). However, it is three cents more than the equalized rate of 66 cents per $100 of assessed value, which is a three-cent tax increase proposal for the upcoming budget. Currently, one penny is the equivalent of $390,722. The recommendation by Hathaway is to advertise what is essentially a three-cent tax increase.

New Kent County Schools are proposed to receive $43,667,946 in the upcoming year. This is the amount that New Kent Superintendent of Schools Brian Nichols proposed to the county’s school board at their Mar. 7 meeting.

The county’s general fund is expected to increase by $5,115,224. Most of that revenue is attributed to personal property taxes in the amount of $3,477,651. Even with the proposed 10-cent dropped in the proposed tax rate, the county is still to generate an additional $1,140,034 in revenue. Other top areas contributing to the increase in revenue include sales tax increase by one percent ($408,811), recordation tax ($175,000), business licenses ($166,894), and meals tax (six percent rate- $148,829).

Hathaway’s proposal has designated several areas for the new revenue funds. Approximately $2 million will be transfer to the school board to fund existing operations. Approximately $1.2 million will be used to set aside for a salary study, and $976,209 will be used to address debt services.

Roughly $1,021,301 will be used to assist with personnel actions and adjustments for the county. A benefit rate increase ($233,803) and overtime increase ($118,403) account for the top items. A cost-of-living increase required by the general assembly for constitutional officers will account for $100,324. Hathaway’s proposed budget will look to add two positions in the sheriff’s office (animal control sergeant at $74,076 and new patrol deputy at $71,320) as well as upgrade a part-time administrative assistant to full time in their department ($43,328). Twelve firefighters will upgrade to lieutenants ($69,124), and additional hires in human resources ($66,595), the commissioner of revenue’s office ($64,044), environmental office ($60,288), and recreation specialist ($54,346) also factor in the new hires from the new revenue funds.

There are no increases in the health insurance rate and health credit rate for county employees. The VRS Retirement Rate increased to 13.07 percent (up from 10.94 percent), while the VRS Group Life Insurance rate decreased to 1.19 percent (was 1.34 percent).

Proposed capital improvement projects (CIP) are proposed to bring a price tag of $4,963,576. Major projects recommended by Hathaway include Self Contained Breathing Apparatus for fire-rescue ($612,334 with New Kent responsible for $61,234), off-air obstruction removal design for the airport at $600,000 ($12,000 county share), five school buses ($599,718), five new vehicles for the sheriff’s office ($427,212), high school roof replacement ($405,000), information technology upgrades ($400,000), and ambulance replacement ($285,000 with a $176,000 county share).

The public utility fund, which is self-sustaining and paid by the users, will work on a budget of $9,642,940, which is an increase from the current year’s budget of $8,134,874. The water and sewer rates will see no change, and there is no change in the connection and availability fees. The Bottoms Bridge Service District Tax Rate will see a reduction for the third consecutive year, dropping by five cents from 10 cents to five cents.

The public utility’s CIP projects total $3,356,230, which is a slight increase from the FY2021-22 budget by $229,230. Top projects include water system interconnections-phase 1B for the New Kent Highway Waterline ($600,000), surface water withdrawal project land acquisition ($500,000), site planning for the utilities operations center ($475,000), Talleysville pump station grinder ($430,000), and Colonies Site upgrades ($300,000).

As with most presentations of the proposed budget, county supervisors elected to reserve comments for their annual budget retreat which will take place on Thursday, Mar. 24, 9 a.m. at The Ordinary, located across the street from New Kent’s Historic Courthouse/New Kent School Board office. A public hearing on the budget is scheduled to take place on Apr. 11, while a public hearing on the budget is on the May 9 agenda.