FY 27 budget first look

 

Goochland supervisors took the next step in firming up the FY27 budget as County Administrator Dr. Jeremy Raley presented his recommended budget on February 17. (Go to https://goochlandva.new.swagit.com/videos/375367 to https:

Raley began by introducing Denise Sandlin, newly hired director of finance, and commending interim finance director Dave Wilson, who “jumped in” last November to work closely with Raley on budget matters. The proposed budget is the product of many months of work and collaboration with department heads and constitutional officers who made compromises along the way but is just a milestone on the road to final budget approval in May. Tax rates will be advertised in March and set in April. The supervisors cannot impose tax rates higher than advertised but could lower them.

Between now and May, the budget will evolve. Economic development projects, whose assessments were not included in January 2026 values, may come online and provide additional revenue. Unfunded mandates imposed by the General Assembly could also result in changes.

As presented, said Raley, the recommended budget is balanced—revenues equal expenditures—and needs based. The total of $107,760,589 represents a 3.7 percent increase, or $3.82 million, from FY26, reflecting the expected increase in revenues, the majority of which, 51 percent, comes from general property taxes. The numbers are based on retention of the 53 cent per $100 of valuation real estate tax; 32 cent ad valorem tax for the Tuckahoe Creek Service District; and $2.99 personal property tax on vehicles.

Raley revisited the challenge of forecasting revenue streams 18 months in advance that require reconciling fiscal and calendar year assessments and tax collections. He said that there may be opportunities to consider other revenue streams including cost recovery and imposition of fees.

Every budget line was looked at and challenged to ensure that an expenditure was needed and used in the most effective way to achieve strategic goals. Raley said that $3,407,508 in “strategic abandonment” that included renegotiation of copier leases, contracted professional services, reduction in the number of parks and rec events, computer and equipment supplies. (See the presentation for complete list) Those funds were applied elsewhere.

People deliver local government services. New positions included are an information technology director and two dispatchers for the Sheriff’s Office: three fire-rescue positions. Requested but not funded in the proposal include 8 fire-rescue positions; a human resources analyst; a data integration and cyber security analyst for information technology; an environmental inspector and three parks and rec employees.

Personnel costs include a three percent summative raise and the county picking up the entire ten percent increase in health insurance increases; and overtime across all departments and pay raises for election workers.

The proposed local transfer to schools is $31,429,844 overall $46,510,052 pending action by the supervisors and General Assembly. Our school division will present its budget to the board on March 3. The school board and supervisors will hold a joint budget work session on March 17.

Strategic realignment of functions and departments for greater efficiency were also discussed.

Raley turned to the utility $43.5 million budget, which is separate from the county budget and funded with user and connection fees. $16.9 million in bond proceeds will be used to build the Ridgefield booster pump station. Proposed three percent increases in utility rates for residential and commercial and a 2.5 per cent in connection fees would cover increased costs.  New positions, capital improvements, and debt service are in the proposed utility budget. A chart comparing utility rates with those in neighboring counties showed that Goochland’s are in line or a bit lower. (Go to https://www.goochlandva.us/m/newsflash/home/detail/1373 for details.)

These excellent charts, graphs, and numbers tell us that houses do not pay their own way and the county needs more economic development to fund core services. This proposed budget illustrates the importance of the 70/30 commercial to residential revenue ratio.

The supervisors commented Raley on the thoroughness of his recommended budget. They asked that a list of items not funded be prioritized so that when an economic development project comes online revenue it generates can be put to a specific use.

In the coming weeks, pencils will be sharpened, citizen input will be solicited, and midnight oil will be burned to arrive at the final FY27 budget. Stay tuned and be involved.