New Kent proposed tax rate drops by one cent, may fall by additional penny

At New Kent’s March 9 regular board meeting, New Kent County Administrator Rodney Hathaway proposed a budget of $266,424,821 that included a five-cent tax raise that would be used to cover Capital Improvement Projects. After receiving a directive from county supervisors at a follow-up budget retreat, at least one penny has come off that projection.

Hathaway presented an updated figure during the March 25 New Kent Board of Supervisors work session that showed a four-cent increase, making the real estate tax rate at 58 cents per $100 of assessed value. And another penny isn’t off the table.

During the updated budget presentation, Hathaway showed the general fund proposal decreasing to $4,834,044 for the upcoming year, in comparison to the original figure of $7,342,679. The decrease in funds of just over $2.4 million was the result of reducing the real estate rate by a penny ($619,360) and an estimated fund balance being used to support the purchase of vehicles for the sheriff’s office ($1,889,475).

With the new $4.8 million figure, expenditure adjustments include transferring only $1 million from the general fund to the debt services fund (originally $2 million), reducing the estimated fund balance as additional funds will be used to purchase vehicles for new sheriff’s deputies to be hired, and health insurance adjustments. With the new number, the leftover adjusted funds will see three new fire and rescue EMS supervisors being hired ($338,412), an additional $200,000 placed in the school’s operating fund, and an increase to the contingency fund in the amount of $161,272.

To cover the one cent reduction in the proposed tax rate, Hathaway says $12.5 million from projected Colonial Downs funds (estimated to be $21,689,000) will be applied to debt service. Of the remaining amount, $8,617,000 will be used for CIP projects, with the remaining $572,000 being transferred to the general fund.

Automated speed enforcement funds are being considered to be used to purchase new vehicles and equip those vehicles for three new deputies’ positions. However, debate on the use of those funds was discussed by board members when it came to their application.

“Could the money be used to fund positions requested by the sheriff?” questioned District 2 supervisor John Moyer. Legal counsel said they could but advised that a new law that may go in effect on July 1 could limit the usage of the money.

Amy Pearson, the District 3 representative, had concern about using one-time funds to support the hiring of sheriff’s deputies. She commented that the money from the speed enforcement would only last for so long. District 1 leader Thomas Evelyn echoed the sentiment, reemphasizing that he is not in favor of one-time funds to pay for positions that will reoccur every year.

More discussion continued on ways to drop the tax rate by at least another penny. District 5 supervisor Jordan Stewart commented about the possible delay of larger capital projects.

“Delaying the projects could help with our personnel needs,” she commented on. “It is something we can look at. We all have projects in our districts that can be delayed. We can do that while we still have control of the tax rate.”

Among projects Stewart used as examples include the construction of a facility building at Warhani Trail (a $1.5 million project) and the construction of Fire Station 2 in Quinton. Stewart also said that while she is for the construction of a new elementary school, she is still not in favor of the construction of a new courthouse.

Pearson interjected, saying she understands where Stewart is coming from but believes the county can’t just supplement projects with speed enforcement funds.

Speed enforcement funds totaled $900,000 from February fines according to Hathaway. Still, the sheriff’s office needed direction on how many deputies to pursue hiring based on the current year’s budget. Supervisors voted 4-1 (with Evelyn opposing) to allow the sheriff to begin the hiring process for three deputies, with the preliminary goal to use the speed enforcement funds to help cover the cost. County leaders will review if three more hires will be necessary during the budget cycle.

Public hearings on both the tax rate and the FY2026-2027 budget will be upcoming and take place on separate days. Hathaway, along with county staff, has been directed to continue to search for ways to reduce the tax rate by an additional penny.