JAMES CITY COUNTY – A proposed Fiscal Year 2027 budget aims to balance tax relief with continued investment in schools, public services and employee pay, according to County Administrator Scott Stevens.
The plan includes a reduction in the real estate tax rate, but rising property assessments mean most residents will still see higher tax bills.
The proposed tax rate of 80 cents remains above the county’s revenue-neutral rate of about 75 cents, meaning the county would still generate additional revenue. A public hearing will be held on both the tax increase and the overall budget, as required by state code.
To offset the reduced property tax rate, the county is proposing an increase in the meals tax from 4% to 6%, the maximum allowed under current authority.
Stevens said the shift is part of a broader effort to diversify revenue sources.
“It was trying to offset some of that loss and move some of the burden from just property… to spread it across and diversify some of our revenue sources,” he said.
He noted that the meals tax also captures revenue from visitors, not just residents.
“While many of our residents will pay the meals tax, it will also be those visitors that help pay meals tax that don’t pay the property tax directly,” Stevens said.
A significant portion of new spending is directed toward education and regional services.
The county is proposing about $5 million more in funding for schools, bringing the total contribution to roughly $104.5 million. The budget also includes a 4% pay raise for employees, costing about $3 million, along with ongoing market adjustments to keep salaries competitive.
Despite requests for additional staffing, the proposed budget does not fund new positions. Stevens said the county is prioritizing retention and compensation for current employees.
The county’s capital improvement plan reflects rising construction costs, with some projects increasing significantly in price. Funding is also included for projects such as improvements to Cooley Field, including the installation of turf.
Despite cost pressures, Stevens said the county remains in a strong financial position, citing reserve funds and long-standing fiscal policies.
“We have done that for a very long time. I think this, for me, maintains that,” he said.
The county has increased its general fund reserve target from 12% to 15%, representing more than $40 million in uncommitted funds, along with additional reserves across other accounts.
Officials are encouraging residents to review the budget and provide feedback ahead of adoption.
“I’d like people to have questions, to call us, email us, let us answer the question so they have the right information,” Stevens said.
He acknowledged that while tax increases are unpopular, the goal is to maintain service quality and quality of life.
A Budget Community hearing is scheduled for April 9 where county citizens are encouraged to attend and ask questions, with the proposed budget available online now for review.
