Fluvanna board advertises FY2026 budget, sets 75¢ maximum rate and OKs advertisement of 4% meals tax ordinance

The Fluvanna County Board of Supervisors voted on March 19 to advertise its proposed FY2026 operating budget and tax rates and to send a meals tax ordinance to public hearing. The board authorized advertisement of a $117,769,609 maximum budget and set the advertised maximum real‑estate tax at 75 cents per $100 of assessed value. The board also voted to advertise a local meals tax ordinance at 4% for a public hearing scheduled April 16, 2025; that motion passed 3–2.

Why it matters: Advertising a maximum budget and tax rate begins the required public-advertising and public‑hearing process the county must follow before adopting a final budget and rates. Advertising a meals tax ordinance starts the formal local consideration of a new revenue source many supervisors said could help fund school construction, public safety and other priorities.

Board votes and next steps: At the meeting the board voted 5–0 to advertise the FY2026 budget and related tax rates and to advertise its capital improvements plan (CIP) for public hearing on April 16, 2025, with the published totals and tax levies listed in the proposed documents. Separately, the motion to advertise a meals tax ordinance at 4% for public hearing passed 3–2 earlier in the meeting. The draft ordinance sets an August 1, 2025 effective date if adopted later and, as advertised, designates 50% of collected meals-tax revenue for school construction projects. The board can amend the designation in the future but would need to re-advertise if it increases the percentage dedicated to schools.

Budget-level choices and staff items: During deliberations supervisors and staff adjusted items that affect the advertised maximum, including adding one full-year deputy (converted from a previously planned half‑year position), placing certain one‑time equipment costs for new deputies on available fund balance, and approving small additions for Parks & Recreation (including an electric bike for trail maintenance and senior center days) as one-time or operating adjustments. County staff presented options for using fund balance to cover one‑time equipment and training costs for new sheriff positions so the recurring tax rate picture would not be permanently affected. The board also approved a county contribution schedule for Anthem Local Choice health insurance that holds county employees harmless for the carrier’s pending rate increase; that action passed 4–1 after extended discussion.

What remains unsettled: The board’s advertised maximum is not a final adopted budget. Supervisors and staff said they expect additional adjustments after the public hearings, the commissioner of the revenue’s updated assessed‑value figures and the outcome of the meals‑tax public hearing. Any additional revenue recognized after advertisement will affect the maximum budget unless the board lowers a tax rate or reallocates planned uses. The board scheduled the public hearing on the budget, tax rates, the CIP and the meals tax for April 16, 2025.

Looking forward: If the meals tax is adopted in a later step, county staff said collections would be used as designated (the draft ordinance names school construction for 50% of proceeds) and recorded in a designated fund. Supervisors noted revenues from new businesses coming to Zion Crossroads and Wawa will influence future budgets and that the meals tax was intended to start diversifying the county’s largely residential tax base.