Culpeper County holds public hearing on FY2026 budget; advertised 3¢ real estate tax increase

Culpeper County Administrator Sam McLaren presented the proposed fiscal year 2026 budget to the Culpeper County Board of Supervisors on April 21 and the board opened a public hearing on advertised tax rates that would raise the county's real estate rate by 3 cents to 44 cents per $100 of assessed value (equalized rate 41 cents).

The presentation and hearing matter because the county faces a roughly $5.5 million shortfall in the proposed budget while taking on larger school-related debt and planning a $49 million five-year capital improvements program that includes $42 million set aside for a new elementary school. McLaren told the board the county's fund balance is projected at about 15.53 percent of operating budget, or $35.7 million, and that one cent on the real estate rate generates $969,560 for Culpeper County.

Key details from the presentation included: a total proposed budget of about $287,000,000; a countywide reassessment this year that showed an average increase of a little better than 17 percent; a cost-of-living salary adjustment of 3.1 percent (McLaren cited $963,000 for that line); average performance-based pay increases around 1.9 percent; school division requests that increase expenditures by about $5.2 million and a school request for an additional $752,758 in local funds; a Department of Social Services request of roughly $282,617 to move baseline salaries toward market rates; and planned debt-service interest-only payments of about $5.5 million for renovation of Culpeper Middle School and the proposed new elementary school ("elementary school number 7"). McLaren said the advertised draft budget includes about $1.7 million in recent development revenues and that the county has set aside more than $6 million historically for debt management, with less than $2 million proposed for use in the current draft.

On the advertised tax rates, McLaren and the board explained the proposed 44-cent rate would be split into 36 cents for the general fund and an 8-cent, dedicated fire-and-rescue levy. Personal property tax rates would remain unchanged, including the $3 vehicle rate. McLaren displayed a regional comparison showing Culpeper's advertised rates remain below several neighboring counties. Using figures in the presentation, the county's average home value of about $488,300 produces a current average annual real-estate tax bill of roughly $2,295; the advertised 3-cent increase would add about $146 to that average bill.

Board members and staff told the public the board would not take action on the budget or tax rates that night and that final adoption is expected at the board's May 6 meeting, when the board may also approve an appropriation resolution effective July 1. McLaren also announced an avenue to contest reassessments: applications to appear before the Board of Equalization open May 1, and the county will advertise hearing dates (McLaren referenced hearings in June, July and August). He said the Board of Equalization members were recommended by the board and appointed by the circuit court judges for the circuit.

Public comment at the hearing focused on reassessment impacts, affordability and county incentives. Stevensburg District resident David Martin said the county needs to balance growth and public services but sharply criticized recent board policy and development incentives, saying, "a slim majority of this board have systematically waged a war on property rights while simultaneously giving away immeasurable sums of tax incentives to a small number of developers." Lynn Richmond Bell, of Cedar Mountain District, urged the board to diversify revenue beyond property taxes and to consider equity of opportunity, including affordable housing for workers. Salem District resident Larry Green said he opposed past incentive decisions and called them poor fiscal planning. Doris Klatterbach, a Salem District resident and retired Culpeper Human Services employee, said her land assessment rose by more than $50,000 while her income is limited; she urged the board to consider seniors on fixed incomes and said, "If they want the schools, make them build the schools." Several other residents spoke about individual reassessment increases and were directed by the board to the Board of Equalization process.

No motions or votes on the budget or tax rates were taken at the April 21 meeting. The board held the two required public hearings (one on the budget and one on advertised tax rates) and left adoption to the May 6 meeting. Residents were told how to apply to the Board of Equalization beginning May 1 and that the county will publish hearing dates and application instructions in the newspaper and on BoardDocs.

The presentation and hearing highlighted a combination of increased local spending pressures (salary adjustments, school requests, requests for new positions and facility maintenance), rising property valuations from the biennial reassessment and planned capital spending that together produce a budget gap the board must address before final adoption at its May meeting.