Where the money comes from

People came to Goochland from all over Virginia for DMV Select Services in the Covid summer of 2020

In Virginia, localities like Goochland County must operate with balanced budgets—expenses must equal revenue. Crafting a balanced budget, even for a relatively small county, is a complicated task.

During a budget work session held on the evening of January 20, County Administrator Dr. Jeremy Raley, Ed. D., and the board of supervisors delved into complexities of the budget process. (Thanks to the excellent work of Dan Stowers and the information technology department, the meeting was recorded and is archived at https://goochlandva.new.swagit.com/videos/372758.)

For the first time in recent memory, county administration discussed funding mechanisms and revenue streams in a public setting. This is another example of Raley’s pledge to improve transparency.

Goochland, Raley explained, assesses property and sets tax rates on a calendar year basis, but budgets on a fiscal year that runs from July 1 to June 30. Real estate and personal property taxes are collected in June and December, in two different fiscal years. He characterized the budget as a “spending plan”. The budget process has been ongoing for many months, he said, when all departments and agencies share their needs. He thanked Treasurer Pam Duncan, Assessor Mary Anne Davis, and interim finance director Dave Wilson for their collaboration in the process.

He gave a special shout out to Commissioner of the Revenue Jennnifer Brown and her staff. Not only does this office provide excellent service to Goochland citizens, but to anyone who needs DMV services. Indeed, during the Covid shut down, Goochland DMV Select, which is part of Brown’s office, was one of the few in the Commonwealth that remained open serving all comers. DMV select processes “a significant number of transactions” which generates reimbursement from the Department of Motor Vehicles, more than $400k in FY25.

As 2026 dawned the focus shifted to identifying revenue streams to use taxpayer dollars and make good decisions to carry out strategic goals and initiatives.

The budget for FY27, which begins next July 1, looks 18 months ahead to forecast available revenue to pay county bills.

The Goochland Assessor’s Office values residential and commercial property. Its “heavy lift” is done from July through December including in person visits to properties, looking at sales and a variety of factors to determine, as closely as possible, fair market value. Calendar year 2026 assessments were mailed on January 15. These will be used to calculate property taxes after tax rates are set by the supervisors in April. First half tax bills are mailed in May and due on June 5.

Those taxes will be collected in the current fiscal year, whose budget was approved in April 2025. Taxes generated by personal property, machines, and tools are a significant revenue stream. The Commissioner of the Revenue determines the value of those assets in the county as of January 1. That is the number used in crafting the budget for the next fiscal year. However, said Raley, this amount fluctuates throughout the year as vehicles move in and out of the county. Those values are updated on the 15^th of every month. The constant churn complicates forecasting the amount of that revenue stream.

Raley said that a three percent increase in real estate values on January 2026 was used in the FY26 budget, which translated into an estimated tax revenue of $52.4 million.  Revenue collected as of December 31, 2025, the first half of FY26 was $23,870,490. Projected collections by June 30, 2026, using those same numbers are $26,942,913 for a total of $50,813, 403, a shortfall of $1,586, 597. However, the actual increase in January 2026 property values was $10.3 billion, eight percent more than projected. Using the 53-cent tax rate this translates into $54.4 million for the FY27 budget. For the first half of 2026, this is estimated at $27,734,705, for an FY 26 total of $54,402,690.

The assessor’s team, said Raley, is predicting an increase next year of at least four percent. However, unknown factors, including an economic slowdown, could reduce that. He said that projects under construction are added to the tax rolls when certificates of occupancy are issued. For calendar 2026, this could include the Honda dealership on Broad Street Road and other commercial projects, which could significantly increase actual collections. Without a crystal ball, forecasting can be complicated and frustrating.

As much of the rise in assessed valuations is driven by new construction in the Tuckahoe Creek Service District, it was pointed out that, in addition to paying a 32 cent per $100 ad valorem tax, 55 percent of tax increase on properties there also goes to service the debt that created the district in 2002. All real estate tax collected from land outside the TCSD goes to the county general fund.

Tom Winfree District 3 said “basically the county is forking over 55 percent of the normal real estate taxes collected on the properties in the TCSD. TCSD keeps all the ad valorem tax and 55 percent of the 53 cents per 100 that we collect so we can keep 45 percent for general services. We’re not keeping the full 53 cents. The rest of the taxpayers are not benefitting as much. If you look at it another way, the citizens in the TCSD are only taking up 45 percent of their weight in the general running of the county because the rest of it is going to pay off the bonds.”

Wilson said that the 55 percent TCSD revenue sharing is treated as a negative and subtracted from projected totals.

County Attorney Tara McGee said that the arrangement is not a policy decision made by this board but was pledged by the bond documents in 2002 in order to get the bonds approved. It is a pledge of revenue to support the issuance of the bonds and cannot be rescinded.

 “We get asked the question why can’t we make adjustments to the ad valorem tax and change it on specific case situations, but when it goes into an indenture, the life of that indenture, because bonds are sold to institutions, to other places outside of Goochland County, we can’t go changing any of those rules. They are in a contract as any other bond. I know it is a point of frustration for a lot of people; this goes back 20 years. This is a bond issuance that we can’t unlock or amend, which is why we want to pay it down sooner than later,” said Charlie Vaughters, District 4.

Pencils will be sharpened in coming months to build a FY27 budget. Stay tuned.