Patrick County supervisors trim capital items, debate reserve use as FY2025-26 budget deliberations continue
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Summary
Supervisors debated the proposed FY2025-26 budget, discussed $26.7 million in outstanding debt and a $15.5 million unassigned fund balance, voted on several capital improvements and at least one outside advisory contract, and left major tax questions for further study.
The Board of Supervisors continued multihour deliberations of the fiscal year 2025-26 budget, reducing or removing several capital items, voting on whether to retain a financial adviser contract and debating whether to use reserves to close a projected gap.
County administrator and staff provided updated fiscal context: "As of 07/01/2025, Patrick County total outstanding debt stands at 26,700,000.0. Approximately 71% of that total is attributed to school construction and facility improvements," staff said. The county's unassigned fund balance has grown from $6.4 million in FY2020 (about 13.95% of operating expenditures) to $15.5 million at the close of the most recent fiscal year (about 22.74% of operating expenditures), staff reported.
What the board did: Supervisors debated and took votes on several budget-line items in the capital improvements program (CIP). Key actions recorded in the meeting included: - A motion to remove a proposed $15,000 annual contract with Davenport (financial adviser) failed; the board left the Davenport engagement in the budget after a recorded vote. - The board reduced an access-control line item for the Administration Building from $190,000 (approx.) to $50,000. - The board removed $50,000 for courthouse carpeting from the CIP. - The board debated but did not remove a proposed $486,045 generator project pending further information about existing emergency-operation capabilities. - A motion to remove $400,000 for a new ambulance was discussed and failed; staff noted ambulance delivery timelines often exceed 12 months and alternative remanufactured options nearer $300,000 exist.
Tax and revenue discussion: Supervisors discussed a separate motion (made but not seconded) to raise the transient occupancy tax (TOT) from 5% to 7% to capture visitor-generated revenue, with proponents pointing to park maintenance, EMS and tourism needs. There was no board action on that proposal.
Reserve use and final totals: Supervisor Perry moved to use $197,336 from reserves to reduce the budget gap; the board also discussed multiple scenarios. After the board's amendments the tentative budget totals were recalculated in the meeting materials and staff provided an adjusted proposed total of approximately $75.09 million (reflecting line-item changes during the session). The board did not adopt a final budget at this meeting and asked members to review proposed changes and return prepared for further action within two weeks.
Why it matters: The budget debate touched on staffing and pay-plan issues, capital projects, and whether to rely on outside advisers for long-term policy such as reserve targets. Supervisors said they wanted policy clarity about reserve levels to reduce ad hoc decisions and inconsistencies.
Next steps: Staff was asked to provide more detail on school funding projections, firm quotes and grant application status for the generator, references for vendors tied to CIP items, and written options on using reserves. The board did not finalize the FY2025-26 budget at the meeting.
