Orange County Supervisors approved the fiscal year 2026 budget Tuesday.
The county’s $158.1 million budget, of which approximately $81.3 million is in the general fund, is 6.3% more than the current year’s budget. The budget was initially 6.6% higher, but a desire by supervisors to keep tax rate increases minimal yielded reductions.
According to deputy county administrator Glenda Paul, the budget is built on a $0.47 per $100 of assessed value real estate tax rate, which represents the equalized rate following the recent reassessment. The county’s recent reassessment yielded a 31.23% increase in the valuation of real estate, from approximately $4.8 billion to $6.3 billion. By law, the tax rate must be equalized to within 1% of the previous revenue. The current tax rate, before equalization, is $0.61.
The fire and EMS levy, which is equalized at $0.11 will increase to $0.15.
Initially, Paul built a budget that included a $0.48 real estate tax rate and a $0.16 fire and EMS levy. She said the rates were able to be decreased utilizing new estimates from the reassessment, which while not enough to change the equalized rate, were enough to boost estimated revenues. Anticipated recovered costs from a Central Virginia Regional Jail FY24 true-up and proceeds from delinquent real estate tax sales also helped. Plus, $290,000 in capital projects were deferred including roof projects at county buildings and a roof replacement at the Booster Park pavilion. Nearly $70,000 in capital projects in the fire and EMS fund were also deferred including the purchase of AEDs, four-gas monitors and digital laryngoscopes.
The budget includes six new full-time and four new part-time employees. For county employees, the budget includes a 3% mid-point market wage adjustment and a 1.5% one-time bonus to constitutional offices and their staffs, offset somewhat by funds from the compensation board. Additional wage adjustments are included for public safety along with the continuation of public safety career step plans, both to improve retention. A 15% anticipated health insurance increase is funded. The proposed budget includes $28.1 million for the schools which is comprised of operating, capital and debt service funding. It’s far less than the $35.8 million requested, but still $926,000 more than the current year.
Some selected rates and fees are also adjusted to cover program costs, including in parks and recreation, at the landfill and in the commissioner of revenue, treasurer and EMS budgets. The budget is balanced using an approximately $3.3 million appropriation in general fund balance. Approximately $9.1 million is included for capital improvement projects with nearly $5 million covered through new debt service including seven buses, one ambulance, eight cardiac monitors and landfill operations equipment to bring operations in-house. Just over $43 million in projects was requested. The funded capital improvement projects include $250,000 for the beginning of a potential water impoundment project.
Not included in the budget are the eight patrol division positions requested by the Orange County Sheriff’s Office, despite multiple requests by law enforcement and residents.
“It’s been a very difficult year,” District 1 Supervisor and board chair Mark Johnson said. “It certainly teaches us again that a diversified tax base is important. One of the ways to preserve Orange County to be a rural community is to diversify your tax base. You really can’t make it off residential or agricultural property.”
