Mathews County reviews first draft of FY25 budget; officials weigh school funding, CIP and energy audit

Mathews County officials reviewed the first draft of the fiscal year 2025 budget at a work session focused on revenues, expenditures and the capital improvement plan (CIP).

County Administrator Ramona Wilson presented numbers showing the total county budget rising to $39,691,703, driven largely by a $7.1 million CIP package: “Salaries and benefits total $5,120,095 which is approximately 21% of the operating budget,” Wilson said as she walked supervisors through proposed line-item changes and the sources for CIP funding.

Why it matters: The draft sets the framework for tax and service decisions that will affect schools, public safety, infrastructure and county operations. The board must decide how much of the proposed increases to adopt, which projects to fund from committed reserves, and whether to adjust revenue forecasts before the final budget.

Key items in the draft

- Overall totals and drivers: The draft shows the total county budget increasing from $32,237,122 to $39,691,703. The principal driver is capital spending: the proposed CIP totals $7,124,382, including grant-funded dredging projects (VDOT and Virginia Port Authority grants) and several county facility and equipment projects funded from committed reserves and meals tax receipts.

- Schools: Wilson said the county matched the state’s 3% salary increase in the draft and proposed a county transfer to schools of $9,269,471 (down from a county projection for a 5% increase the board previously discussed). Dr. Daniel, a school division official, explained how state funding for Standards of Quality (SOQ) positions is calculated and why the state allocation will not fully cover an across-the-board raise: “SOQ positions do not include bus drivers, custodians, cafeteria workers,” Dr. Daniel said, adding that the division’s SOQ-funded increase equates to about $79,000 under the state tables.

- Employee costs and benefits: The draft assumes a 3% salary adjustment across most county positions and a 4.8% increase in health-insurance costs; administrators propose splitting the health-insurance increase between employees and the county. Wilson noted the draft uses a 9.32% VRS retirement rate but that recent legislation raised that rate to 9.43% and the budget will be updated to reflect the change.

- Revenues and sales tax outlook: Sales-tax receipts are running above original estimates after new retail activity (including a Dollar General), and administrators proposed a conservative projection of $1.77 million but discussed increasing it toward the $1.9 million level seen in FY23 if collections continue. Supervisors discussed the possibility of a future General Assembly bill and referendum that would allow a 1% local sales-tax increase dedicated to school renovations.

- Capital improvements and committed reserves: The administrator proposed sweeping $1.61 million from various committed-reserve line items into the CIP account to fund prioritized projects, while leaving certain restricted items (for example, ditching) in place. The Planning Commission’s recommended CIP was about $700,000 smaller than the administrator’s proposal; supervisors and staff discussed better coordination and a possible post-mortem to refine the CIP process.

- Energy audit and school facility work: Multiple supervisors pressed for an energy audit of county and school buildings to identify inefficient systems and reuse opportunities. One supervisor urged quick action: “We have to get this energy audit started because we have to get this done to make these long range plans,” Supervisor Jones said. Wilson directed staff to advance procurement steps; Tim Doss (staff, currently recovering from surgery) will be involved when available.

- Specific projects discussed: Boiler replacements and hot-water systems at some schools (one boiler line item in CIP noted at $150,000), boat-ramp repairs at Hole in the Wall, courthouse-area water improvements (design funding proposed at $200,000), field bathrooms and maintenance-shed connections at the county sports complex, and phased funding for fire apparatus and rescue vehicles (annual set-asides rather than full immediate purchases).

- Public safety and dispatch: The board discussed higher operating costs for public safety, including a substantial increase in regional jail assessments and higher dispatch overtime and staffing costs. County staff said dispatch overtime inflated the emergency communications budget and that additional deputies and staffing adjustments should reduce overtime over time.

- Taxes and revenue options: Supervisors debated whether to revise tax mix in future budgets to capture revenue from seasonal and second-home users (for example, using lodging/transient occupancy taxes or adjusting real-estate vs. personal-property tax burdens). Wilson agreed to provide modeled revenue impacts for incremental changes (for example, the estimated revenue per cent change for real estate, personal property and boat tax rates) before budget adoption.

Votes at a glance

- Agenda approval: The board moved and seconded approval of the meeting agenda and conducted a roll-call voice vote; members present voted in the affirmative and the agenda was approved.

- Adjournment: The board approved a motion to adjourn at the end of the session.

Context and next steps

Wilson noted the draft will change as insurance renewals and VRS rates are finalized; she also said Davenport (financial advisor) will present next week on fund balance and debt timing to support potential borrowing for capital projects. The school board will also consider a proposal to move eighth grade to the high school; that change, if adopted, could affect capital and operating needs. Board members asked staff to provide follow-up detail on several line items (library salary changes, detailed CIP scopes and the exact revenue impact of proposed tax adjustments). The administrator said she will send clarifications and updated figures for the board’s review.

Ending

Supervisors praised staff work on the draft and asked staff to refine projections and deliver the requested revenue and program details at upcoming meetings. No final appropriations were made at the work session; the draft budget will return for further review and formal adoption at future board meetings.