Proposed county budget tops $160.9M, calls for 1-cent tax increase

County explores ‘expressive activity’ rules after summer incidents

By HEATHER MICHON
EDITOR

Fluvanna County’s proposed budget could top $160 million in the coming year, driven by rising operating costs, infrastructure needs and public safety staffing — and could require a modest increase in the real estate tax rate to balance the books.

County Administrator Eric Dahl presented a $160,963,620 budget for Fiscal Year 2027, a jump of nearly $35 million, or 27.7%, over the amended FY26 budget, during a work session following the Board of Supervisors meeting Wednesday night (Feb. 4).

To help fund the increase, Dahl recommended raising the real estate tax rate by one cent, from $0.75 to $0.76 per $100 of assessed value, an increase he said would cost the average homeowner about 1.33% more. All other tax rates would remain unchanged.

The cost pressures behind the increase were largely familiar: higher prices for goods and services, efforts to keep employee pay and benefits competitive, maintenance of aging vehicles and infrastructure, and ongoing debt payments.

Two major variables remain unresolved.

Dahl based his proposal on the assumption that the school division’s funding request will remain roughly flat compared with FY26 and that employee health insurance premiums will rise about 8%. Both figures could change in the coming weeks, potentially altering the final budget.

Until the School Board finalizes its budget and insurance quotes are received later this spring, their impact on the final county budget is unclear. 

Essential services prioritized

Reflecting what Dahl described as the county’s fiscally conservative approach, the proposal focuses on what officials view as essential or no longer deferrable needs.

For example, the budget funds eight new positions, including four EMS staffers, an assistant Commonwealth’s Attorney, and other critical roles. At the same time, about a dozen requested positions — including some in Parks and Recreation, Public Works and the library — were not funded.

Capital plan dominated by Fork Union project

Separate from the operating budget, the county’s Capital Improvement Plan (CIP) outlines one-time infrastructure spending.

Dahl projects a $52.5 million CIP budget for FY27.

Of that, roughly $43 million would go toward a new Fork Union water system. Unlike most capital projects, which rely on reserves or borrowing, Dahl said the water system would be paid for largely with funds provided by Dominion Energy under an agreement tied to the capped coal-ash landfill at the former Bremo Power Plant.

Looking ahead

Dahl described the county’s finances as stable but suggested supervisors may eventually need to consider diversifying revenue sources to reduce reliance on property taxes.

The meals tax adopted in 2025 is one example, he said, noting it spreads costs beyond homeowners. Other potential options could include an annual business license fee or a Business, Professional and Occupational License (BPOL) tax.

For now, those conversations are on hold.

Supervisors have roughly 10 weeks to review the proposal, with key dates ahead:

March 4: deadline to set maximum proposed tax rates

April 1: public hearing on the proposed budget 

April 8: final vote on the budget, CIP and tax rates

Expressive Activity

Fluvanna County officials are drafting a new “expressive activity” policy aimed at clarifying when residents may petition, distribute literature or campaign on county property, saying the current lack of formal guidelines has led to confusion and inconsistent responses.

County Attorney Dan Whitten told the Board of Supervisors the draft policy would allow noncommercial activities like leafleting and petitioning in public areas of county facilities, parks and grounds, with reasonable “time, place and manner” limits intended to protect safety and government operations without discriminating based on message. 

Violations could lead to warnings, removal and, if necessary, trespass enforcement.

The discussion follows at least two incidents last summer where staff intervened during public events: employees approached Commissioner of the Revenue candidate Donald Reynard about campaigning during a county event, and a vendor at the Arts in the Park festival was reprimanded for collecting signatures on an anti-Tenaska petition at their booth. 

Under U.S. law, governments can impose content-neutral “time, place and manner” regulations on speech, such as limits on where signs may be placed, hours of activity or permit requirements, so long as they do not target the message, are narrowly tailored to serve a significant interest, and leave open alternative channels for expression.

No motion was introduced Wednesday, and any policy changes must return for a public hearing before a vote. 

But between last summer’s enforcement disputes and fresh criticism from residents, the proposal appears poised for a more contentious debate.

During public comments at the end of the meeting, Millie Fife questioned whether the policy risks placing limits on constitutionally protected speech.

“I’m not sure why my freedom of speech means that I have to try and comply with whatever the mission is of the county,” she said. “This is sort of being sprung on us, and I hope that this is something that gets a lot more airtime so that other people can try and understand what’s going on, and what you do or do not want to allow to be said.”

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