NK $67.3 million budget, four cent tax hike head to hearing

A proposed $67.3 million budget and accompanying 4-cent real estate tax hike head for public hearing before New Kent’s Board of Supervisors on May 13.

Meeting April 16 in a budget work session, board members decided to move forward, giving county residents opportunity to sound off on the proposal.

County administrator Rodney Hathaway recapped the budget, as presented during the board’s April 8 meeting, in search of guidance from supervisors as well as their concerns. Hathaway reminded the board that the $67,340,532 bottom line includes not only the real estate tax increase but also an eight percent increase in the county’s water and sewer rates.

District 5 representative and board chairman Ray Davis said county residents need to know that half of the proposed real estate tax increase is dedicated to county schools.

“I hope residents understand that two cents of the increase is to benefit the renovations to the Historic School,” commented Davis.

County officials are forging ahead with plans to convert the Historic School into an elementary school for upper grades, thus avoiding the major expense (and astronomical tax hike) of having to build a new elementary school in the near future.

Renovating the Historic School is estimated to fall into the $10-$12 million price range while a new elementary school would be close to $30 million. Footing the bill for the latter could send real estate taxes soaring by 20-30 cents, one supervisor has said.

County officials, meanwhile, have added $5 million to the county’s Capital Improvement Plan, specifically for the Historic School renovation. The proposed CIP, which becomes part of the budget, now stands at $8.6 million. The $5 million is to be financed while the remaining $3.6 million in items on the plan for next year are proposed to be paid for using cash on hand.

District 4 representative Ron Stiers voiced concerns about the rising water/sewer rates as well as the tax hike.

“Is there any way to cut the eight percent on water?” he asked. “It’s like we’re proposing an increase from 81 to 85 cents on real estate and then saying ‘by the way, you’re getting an increase on water, too.’ I hope we can find other avenues to look at these things.”

Stiers also advocated for an increase in funding for Heritage Public Library. Currently proposed in the FY2014 budget is $169,000 for operating costs and an additional $20,000 for library programs.

“I would like to see them get at least $40,000,” continued Stiers, pointing to the program figure. “They’re tutoring 70-100 students, and they’re offering 19 programs including computer programs.”

Supervisors continued to mull over the four-cent real estate tax increase and also a proposed two percent pay raise for county employees. Several board members said they have received calls from constituents about the raises.

Financial services director Mary Altemus and assistant director Larry Clark told supervisors Virginia’s General Assembly has mandated three percent pay increases for constitutional officers, the voter registrar, and the Department of Social Services. Those raises are slated to take effect on Aug. 1.

The state reimburses the county for a small portion of those raises. Employees not benefiting from the mandated raises are proposed to receive a two percent hike. If a local government does not fund its share, the state will not fund those raises.

Overall, a two percent raise for county employees amounts to $164,000.

“Confusing, confusing,” complained Davis. “These mandates are handed down and we have to do something with them before we even know what they are.”

Supervisors asked Hathaway to look for ways to reduce overtime hours, specifically for New Kent Fire and EMS, and save money in contract services and membership fees.
The budget public hearing is set for 7 p.m. in the board’s meeting room.