Louisa County presents $188.4 million FY2026 proposal; no tax rate increase recommended

Louisa County officials on April 7 presented a proposed fiscal year 2026 budget totaling $188.4 million and told residents the plan does not include a tax-rate increase.

Finance staff presented revenue and expense changes that produced an operating increase of $18.7 million and revenue increases of $12.9 million. The proposal includes an operating surplus of about $10.2 million and capital projects totaling about $13.5 million. “We are not recommending a tax increase,” a county finance presenter said during the hearing.

The board and staff highlighted several policy choices tied to that revenue picture. The draft budget would hold the advertised tax rate steady while using available reserves and one-time revenue to (a) provide a targeted real-estate tax rebate and (b) increase the maximum elderly tax relief benefit. The finance presentation described two rebate options: a 2¢ per $100 reduction across all parcels (the document calls it a 2¢ equivalent rebate) or a 2.4¢ reduction that would exclude “non‑public‑service‑corporation” properties (utilities and similar properties) and produce a larger percentage rebate for other taxpayers. Staff also recommended increasing the elderly tax‑relief cap from $2,000 to $3,000 and asked the board to schedule a public hearing if members wished to pursue the change.

The proposed budget lists capital priorities including $2.48 million for school technology and equipment; $4.4 million for the Louisa Water Authority sludge and treatment projects; bridge repairs; a circuit-court second-floor auxiliary courtroom remodel; sheriff’s vehicles ($580,000); volunteer fire station projects ($540,000); and continued annual savings toward a parks-and-recreation aquatic facility ($400,000). The proposal also funds a 3% general compensation increase, targeted retention and hiring support for fire and EMS and additional positions at the schools.

During public comment, multiple residents urged caution on reliance on projected future revenues and objected to rising assessments. “The expected revenue really is money that is not in the bank yet,” Rosani Ollia, a Cuckoo District resident, said. Bruce Tinney, also a Cuckoo District resident, said, “We gotta stop. We gotta curb the growth of the budget at some point,” and urged the board to set stricter caps when preparing next year’s budget. Courtney Sloan of the Mountain Road District noted Louisa’s effective real-estate tax rate was higher than some nearby counties and said the contrast surprised her.

Board members and staff responded that some increases reflect debt service and school and water capital projects approved in earlier years, and they stressed the budget preserves funding to fill current vacancies in fire and EMS while also setting aside recruitment and retention funds. Finance staff told the board the county is still waiting final state and federal revenue numbers and will adjust the draft before adoption. Adoption of the budget is scheduled for the board’s April 28 meeting; appropriation would follow May 5.

The board indicated support for directing staff to publish a public hearing on raising the elderly tax-relief cap to $3,000 and discussed the rebate options; no final tax-rate action was taken at the April 7 meeting.