Charles City County approves FY26 budget, authorizes $5.2M RAN after auditors and advisors warn cash shortfall

The Charles City County Board of Supervisors on May 27 approved the fiscal year 2026 budget totaling $29,714,222 and adopted a resolution authorizing a revenue anticipation note (RAN) of up to $5,200,000 to stabilize cash flow at the start of the fiscal year.

Davenport financial advisers told the board that county cash levels had been propped up by a prior RAN and that, without new short‑term borrowing, the county could run out of operating cash in the summer. “If we do not move forward with this RAN, we believe the county will run out of money in the summertime and will not have the money needed to pay bills, including salaries,” said David Rose of Davenport. His colleague Kyle Laux explained that a RAN must be repaid within the fiscal year it is issued and is intended to smooth timing mismatches between seasonal revenues and ongoing expenditures.

Christina Crowley Jones, the county finance director, presented unaudited April figures showing an apparent $4 million general‑fund expenditure overrun and a $2 million general‑fund revenue variance linked to a system error under review. She and Davenport outlined a mix of corrective measures: increased delinquent‑tax collection efforts, operational changes, and planned administrative staffing adjustments for FY26.

The board adopted the FY26 budget with no change to the real‑estate tax rate ($0.69 per $100 of assessed value), citing newly identified revenues that staff said reduced the need for a rate increase. Budgeted highlights included a 3% salary increase for county staff, restored payroll administrator position, and an additional $308,000 to ensure funding for county management positions. Staff reported identified additional revenues totaling about $3.09 million from AES site‑plan phases, a land sale to C5 LLC and another Roxbury land sale.

Davenport reported competitive bids for the RAN; First Citizens offered the most cost‑effective package with a fixed rate below the existing RAN. The board voted to authorize issuance of up to $5,200,000, with Supervisor Patterson moving the resolution; the vote was recorded aye by Patterson, Hill and Chairman Atkins.

Public commenters repeatedly questioned past financial management, the timing of the RAN and whether the county had sufficient tax‑collection and accounting controls. Several residents called for frozen salaries, better audit follow‑up and more transparency; one public commenter offered to volunteer to assist with finance work. County leaders said they were implementing corrective steps, working with consultants and expecting to onboard a new county administrator soon.

The RAN resolution and the budget ordinance were both approved by the board. The RAN is structured to mature by June 30, 2026, and Davenport said it is prepayable without penalty if collections permit early repayment.