Board hears FY26 maintenance budget: proposes 5'cent real estate tax rate increase as insurance exemptions climb

County administration presented the Isle of Wight County Board of Supervisors with a maintenance‑only proposed budget for fiscal year 2026 that contains no new positions and relies in part on a proposed 5¢ increase in the real estate tax rate.

Staff said the recommended budget increases by roughly $5.6 million overall. The presentation identified health‑insurance cost increases (about $2.0 million combined for county and schools), a 3% across‑the‑board salary increase matching the state, and rising tax‑relief exemptions tied to elderly, disabled and disabled‑veteran property tax programs. Staff told the board tax exemptions have grown quickly in recent years and that Isle of Wight ranks among the more heavily impacted Virginia localities by percent of taxable base consumed by these exemptions.

On revenues, staff said roughly $3.3 million of the recommended revenue increase would come from the proposed 5¢ property‑tax rate increase; normal growth (new construction) accounts for about $700,000 of projected revenue.…