New Kent County proposes $137.6 million FY26 budget, including 3¢ tax increase to fund courthouse, pay plan

New Kent County Administrator James Hathaway presented a proposed $137,625,196 fiscal year 2026 budget to the Board of Supervisors on May 6, calling for an advertised real estate tax rate of $0.62 per $100 of assessed value, a 3¢ increase from the current $0.59 rate.

Hathaway said the 3¢ increase would generate approximately $1,620,000 and that one penny of the increase would be dedicated to a public safety pay plan while two pennies would be earmarked toward construction of a new courthouse and a new elementary school to replace New Kent Elementary School. "One penny on the tax rate only gets us about $540,000," Hathaway said in his presentation.

The proposed budget includes $2,500,000 in new personnel funding overall; a recommended 5% cost-of-living adjustment for county employees; a public safety pay plan costing just under $1,200,000; a 4% user fee increase for public utilities; and an absorbed 7.3% increase in the county's health insurance rate. Hathaway said the county would also provide a one-month health-insurance premium "holiday" in December for employees on the plan.

Why it matters: The budget proposal would raise local taxes and redirect part of the increase to staffing and capital projects the county says are required to serve a growing population. Hathaway told supervisors that the courthouse is out of office space, citing files and copier machines placed in hallways and limited holding-cell capacity in the current facility as drivers for a new courthouse project.

Supporters and public-safety officials urged the board to approve the pay plan and courthouse investment. Captain Brandon Jenkins of the New Kent Sheriff's Office told supervisors that holding-cell capacity and juvenile separation needs make the current courthouse inadequate for growing caseloads. Sheriff Lee Bailey urged adoption of the public safety pay plan, saying it would improve recruitment and retention; Bailey noted the county lost three deputies in four months and said training a new deputy costs "more than $100,000," compared with about $15,000 to integrate a certified lateral transfer.

Commonwealth's Attorney Scott Renick described courtroom and office overcrowding and said the county now holds court many more days per month than in previous years, noting a rise from roughly 100–125 indictments annually to about 375–400 per year.

Details: Hathaway broke down major budget items: capital projects totaling about $24.9 million (with roughly $6 million from Colonial Downs-related revenue, $10.7 million from CIP cash reserves, $5.3 million from CVTA funds, and nearly $3 million in federal/state grants); public utilities budget of $17.5 million; and several recommended position changes including a GIS technician, permit technician, and upgrades in the building and environmental offices. He said staff are still completing a courthouse needs assessment and expects a draft late this summer.

Process and next steps: By state code the board could not adopt the budget that night; Hathaway said the item is scheduled for the May 27 work session where supervisors may take action and that the board has until June to adopt a budget.

Board reaction: Supervisors asked questions about which employees receive state-mandated increases (department of social services staff receive the state 3% increase), collection assumptions for personal property taxes (staff reduced projected receipts based on recent collection trends), and timing for the courthouse needs assessment. Several supervisors and the sheriff said they support the courthouse project and pay plan but signaled further discussion before any vote.

Ending: The board did not take final action on the budget; the May 27 work session will include the FY26 budget for additional review and potential adoption.