James City County holds public hearing on FY2026 proposed $389.5 million budget as residents weigh taxes and services

James City County staff on April 8 presented the proposed fiscal year 2026 budget and invited public comment on a $389.5 million all-funds proposal that keeps the real-estate tax rate at $0.83 per $100 of assessed value but would cut one-time use of fund balance included in the current year.

County Budget Manager Cheryl Holland and Senior Budget staff member Miss McCarthy briefed the Board of Supervisors on the FY26 proposal, which County staff described as the second year of a two-year budget built on the county’s seven strategic goals. The proposed all-funds total is $389,500,000 with the General Fund accounting for about $262,700,000, a 2.9% (about $7.9 million) increase over the current year. The presentation said $11.4 million in additional requests were not funded. The proposal includes a 3% employee raise effective July 1 and a potential additional 1% on January 1 depending on budget performance.

The proposed capital improvement program (CIP) for FY26 appropriates $125.3 million across five years, with $104.5 million in county CIP in FY26. Notable county projects listed for FY26 included a new government center ($65.5 million), a new library ($16.8 million), and additional funding for a General Services Administration building ($2.5 million). School CIP for FY26 totals $20.8 million, which includes $11.3 million for preschool space and $4.2 million for HVAC replacement at Matoaka Elementary.

Holland noted the budget projects modest increases in sales, meals and lodging tax revenues and a $300,000 state revenue increase tied to the state share of 3% raises for constitutional officers. The county proposes matching a 2.9% operating increase to the schools, about $2.9 million in dollars.

Public commenters focused on several themes: the scale of proposed borrowing and capital projects; worry that tax and fee increases are outpacing household capacity; concern about hiring and retaining staff; and questions about the county's role in the Williamsburg Regional Library project. Speakers asked for a referendum on large capital projects including the proposed county complex and library and pressed the board to consider cuts rather than further tax increases.

Notable public comments included: - Jay Everson, who outlined projected debt service for the county complex and library and urged putting the projects to referendum to reduce borrowing costs and seek voter approval. Everson quantified FY26 debt service at roughly $24.45 million growing to $39.325 million by 2030 under the proposal. - Multiple speakers — including Rick Timberlake, Dan Roos and Stephen Mains — urged slower spending and objected to tax increases; Roos and others argued rising property tax and other costs risk pricing out workers and raising rents. - Marco Sardi, a James Blair Middle School teacher, urged the county to consider the school division’s staffing and special-needs pressures and warned that the proposed budget would fund only mandatory education increases and may leave schools behind regional competitors.

County staff said the FY26 budget would be discussed further at a business meeting on April 22 and scheduled for adoption at the May 13, 2025 board meeting. The county made the full proposed budget, historical financial statements, and the CIP available on its website, and staff asked board members to submit questions in advance to allow fuller responses at the April 22 work session.