Divided board backs FY27 budget, settles on $0.755 tax rate

By Heather Michon, Editor

In a lengthy session marked by intense fiscal maneuvering, the Fluvanna County Board of Supervisors approved a $164.9 million budget for fiscal year 2027 in a 3-2 vote at a special meeting on Wednesday, April 8.

The board set the real estate tax rate at $0.755 per $100 of assessed value, well below the maximum advertised rate of $0.777 and down from the roughly $0.765–$0.768 range under consideration earlier in the meeting.

Supervisors arrived at the lower rate after factoring in anticipated revenue from new businesses, including a Wawa and an Amazon facility under construction on Route 15, as well as debt scheduled to be paid off in July.

The decision did not come without caution. County Administrator Eric Dahl warned that revenue from new development would not be fully realized until those projects receive certificates of occupancy, likely not until midway through the fiscal year, which runs from July 1, 2026, to June 30, 2027.

Momentum for the lower rate solidified as Dahl identified a fiscal cushion: a $380,000 school debt service payment set to expire after a final payment in July. By using fund balance to offset the shortfall in FY27, supervisors said the expiring debt would effectively eliminate the gap in FY28.

Combined with a policy change from Commissioner of the Revenue Lauren Sheridan to assess vehicles at their midpoint value rather than the top of the range, the move is expected to provide some relief to taxpayers hit by high assessments in 2025.

Although the real estate tax rate did increase by $0.005, the combination of a near-flat rate and lower personal property valuations is expected to reduce the overall tax burden. Chair Tony O’Brien (Rivanna) described the result as “a responsible tax cut.”

The measure did not win unanimous support. Supervisors Chris Fairchild (Cunningham) and Mike Goad (Fork Union) voted against adopting the final budget.

The board unanimously adopted the county’s five-year Capital Improvement Plan (CIP) for FY2027–FY2031, which maps out major spending priorities for infrastructure, facilities, and public services. 

There was considerable discussion during the meeting about delaying big-ticket projects, such as a new County Administration building, and taking fresh looks at county water and sewer projects. As with the operating budget, supervisors emphasized a cautious approach, balancing long-term needs against the county’s current financial position.

While the budget debate dominated the evening, supervisors also:

• Approved a two-part compensation plan to address pay disparities among county employees. The board unanimously adopted a revised pay structure, updating job classifications and salary bands, and separately approved funding to begin implementing salary adjustments. The changes follow an internal review that found a majority of positions below market, with officials citing concerns about recruitment, retention, and pay compression.

• Approved a resolution urging the governor to revisit state setback requirements for certain large-scale projects, signaling concern that current standards may not adequately protect nearby residents. The move reflects local unease about how state-level regulations intersect with county-level land-use decisions, particularly as Fluvanna faces increasing pressure from energy and infrastructure development proposals.

• Discussed the proposed Valley Link transmission line, noting increased coordination among affected localities as the project continues to take shape. Multiple counties, including Fluvanna, have adopted resolutions opposing the project or seeking greater scrutiny of it. There is also the potential to amend the Comprehensive Plan.