Lancaster County proposes FY26 budget with 2¢ tax increase amid public concerns

April 26, 2025 | Lancaster County, Virginia

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This article was created by AI using a video recording of the meeting. It summarizes the key points discussed, but for full details and context, please refer to the video of the full meeting. Link to Full Meeting

Lancaster County's Board of Supervisors held a public hearing on April 24, 2025, to discuss the proposed budget for the upcoming fiscal year 2026. The budget, which includes a 2-cent increase in the real estate tax rate from 55 cents to 57 cents, is designed to address rising expenditures while maintaining local funding for public schools at the same level as the previous year.

The proposed budget reflects a 6.7% increase in revenues and a 2.8% increase in overall expenditures. To balance the budget, the county plans to draw $1,120,527 from its fund reserves, leaving a projected ending fund balance of approximately $3.7 million, which is about 7.88% of total annual expenditures. The Board is required to wait at least seven days after the public hearing before adopting the budget, with a scheduled vote set for May 29.
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During the public comment period, residents expressed concerns about the tax increases and the county's spending practices. One resident highlighted the significant rise in property values due to recent assessments, questioning the need for further tax increases. Another resident pointed out that while the county has eliminated the boat tax to support local marinas, real estate owners continue to bear the burden of tax increases.

Board members responded by emphasizing that the advertised tax increase does not guarantee its adoption and that they are committed to scrutinizing expenditures and change orders in construction projects. They noted that Lancaster County still maintains the lowest real estate tax rates compared to neighboring counties, and the personal property tax rate has remained unchanged since 2007.

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The discussions reflect ongoing tensions between the need for funding local services and the financial pressures faced by residents, particularly property owners. As the Board prepares for the final budget vote, community members are hopeful for a balanced approach that considers the diverse needs of Lancaster County's residents.

Converted from Board of Supervisors - Apr 24 2025 meeting on April 26, 2025
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