Revised $112.8 million proposed New Kent budget now sees two-cent tax hike, down from seven cents

After hearing community mumbles from the public about a possible seven-cent increase, New Kent County Administrator Rodney Hathaway returned to county leaders with a new budget that drastically reduces the tax hike.

Hathaway proposed a new budget of $112,844,288 for FY2024-25 operations in New Kent County at the May 6 regular board meeting and public hearing. The new proposed real estate rate would be 59 cents per $100 of assessed value, down from the original 64 cents per $100 of assessed value. With the county’s equalized rate sitting at 57 cents per $100 of assessed value, the tax increase would be two cents instead of seven cents. One penny is the equivalent of $511,587.

Hathaway commented about the adjustments that were being made in order to account for $2,557,935 to assist with reducing the tax rate to 59 cents. Among those adjustments include eliminating proposed positions for a school resource officer, a cost-of-living adjustment for sheriff department staff, reallocating planning directors staffing, and adjusting for Governor Glenn Youngkin’s cost-of-living budget for constitutional officers. Among other savings is decreasing operating expenses increase for schools from $2 million to $1,323,573. According to Hathaway, school leaders adopted that amount in their recent budget presentation.

One of the biggest cost savings that will take place next year is the relocation of New Kent prisoners and offenders. The proposal will see the county send offenders to Pamunkey Regional Jail instead of Henrico Jail East, which will save the county nearly $1.5 million.

The proposal for the county’s public utility fund, which is self-sustaining, remains at $17,302,726 for the upcoming cycle. Public utility fee changes have been proposed to have a four-percent increase for user fees (water, sewer, and reclaimed water), an increase in meter installation fees, and adding a GIS fee.

By state code, county leaders cannot adopt the budget until 10 days after the public hearing. Board officials may take action at their May 29 work session.