Capital Improvement Projects dominat New Kent’s $266 million proposed budget for FY2026-27

Capital Improvement Plan (CIP) projects have come to the forefront in New Kent’s proposed FY2026-27 budget.

New Kent County Administrator Rodney Hathaway presented a budget of $266,424,821 for the upcoming fiscal year. The current year’s budget is $136,543,336.

The jump of nearly $130 million in the county’s proposed budget stems from two main CIP projects. The first project is the construction of a new courthouse and renovation of the old courthouse that comes in with a price tag of $70 million. Hathaway said that the $70 million would cover the construction of a new building, as well as renovating the current courthouse into office space. The second project is the construction of a new elementary school. The new elementary school would be positioned behind the current New Kent Elementary School and carry a price tag of $58 million.

With the major projects scheduled, Hathaway commented that there will be a tax increase. New Kent County recently underwent a reassessment, with the real estate equalized rate emerging at 54 cents per $100 of assessed value. The tax rate would be set at 59 cents per $100 of assessed value, which would result in a five-cent tax increase. Of that increase, four cents would go directly to covering debt services for the two aforementioned CIP projects. The remaining penny would cover operating costs for the upcoming year. Each penny on the real estate rate is equivalent to $631,503.

The county’s general fund revenue is expected to increase by $7,342,879, bringing the recommended amount to $75,106,225. Of the new $7.3 million, close to $2.5 million is expected to be used toward debt service projects. Close to $2.2 million is labeled to assist with requested positions and training for the sheriff’s office. New positions include two full time civil deputies for the courts as well as one part-time civil deputy, five traffic control deputies, one lieutenant, one investigator, and one new animal control unit officer. No other county department will have new personnel according to Hathaway, referring to the need to keep the budget tight to help with the capital projects. New Kent County Public schools are listed to receive $55,783,363 for operations next year.

Approximately $978,073 has been designated for employee compensation and benefits, with another $724,161 listed as increased transfers to DSS, CSA, and the school system.

Another big CIP project scheduled for next year is the construction of Fire Station #2 in Quinton at an amount of $6,442,000.

To fund the CIP projects, approximately $131.5 million will be spent through debt services. Approximately $8.117 million would be contributed through the Colonial Downs Reserve Funds. Fund balance allocated to the projects total $7,546,764, federal and state funds are penciled in at $5,101,716, CVTA funds account for $350,000, and approximately $175,274 from proffers would be used towards the project.

The public utility budget, which operates on self-sustaining funds, is listed with a cost of $9,548,704 for the next fiscal year. A water and sewer rate increase of four percent is recommended, as well as a four percent increase for connection and availability fees.

Only a few capital projects are listed for the public utility fund. Sewer Field Assessment and Repair that serves the public utilities department, a tank mixer at Parham Landing, and a tank mixer at the Courthouse complex are listed as priorities for public utilities. In total, capital projects total $225,000.

A budget retreat will take place on Mar. 13 at 9 a.m. at the Providence Forge Forestry Center. A public hearing on the budget’s tax increase will take place on Apr. 13, with a public hearing on the budget occurring on May 11.