New Kent County adopts FY26 budget with 1¢ real-estate tax increase; board directs funding toward courthouse

The New Kent County Board of Supervisors on May 20 adopted the fiscal year 2025–26 governmental and schools budget — $136,543,336 after the board agreed to a one-cent increase in the real-estate tax rate — and approved a revised capital improvement program that prioritizes courthouse work while deferring a new elementary school and some other capital projects.

County staff presented the proposed budget and changes required by the board’s decision on the tax rate. “With the adoption of a $0.01 real-estate tax increase, the FY26 budget will total $136,543,336,” Mr. Hathaway, county staff, told the board.

Board members debated two large capital proposals: a borrowing plan for the construction of a new courthouse and the construction of a new elementary school to replace the existing New Kent Elementary School. Both proposals were described in staff materials as part of a possible $130 million borrowing package for one or both projects; staff and the county’s financial advisers, Davenport & Company, advised that proceeding with both projects at once would push the county out of required compliance metrics for debt service and reserves.

After discussion, the board directed staff to proceed with one capital project now and to defer the other. Supervisors discussed relative urgency: some members said courthouse space constraints and court operations posed near-term public-safety and operational concerns, while others emphasized student safety, traffic and readiness of the school planning process.

The board approved amendments to the CIP resolution to remove Fire Station 2 from next year’s funded construction list while appropriating $1,000,000 for land purchase and preliminary engineering for a future Fire Station 2, and setting aside $1,000,000 toward a future community center and polling station for the Eltham District. Mr. Hathaway said the CIP’s listed capital projects total $22,668,300 in the revised plan. The county will not eliminate Fire Station 2 from the plan; staff said the project was deferred to a later fiscal year and not removed.

The board also adjusted a transfer from the Colonial Downs special revenue fund to help offset debt service: staff reduced the recommended Colonial Downs transfer from $5,000,000 (advertised) to $2,500,000 in the revised financing plan to reflect the board’s one-project decision and the revised debt schedule.

Supervisor Moyer moved to adopt the revised budget and to use the down payment for the courthouse project; the motion passed on a roll-call vote with all supervisors voting aye.

The revised budget includes a $12,000 salary adjustment for the chief deputy clerk position (which staff said presents a net savings elsewhere in the budget) and reflects other technical changes tied to the chosen tax rate and project deferrals. Staff said that the county would not borrow immediately; design and bidding work can proceed, but any borrowing to fund construction would return to the board for approval after bids are received.

Board members also noted the decision does not remove the school project from future consideration; several supervisors said the school remains on the CIP and may be revisited if revenue projections improve or reassessment results are favorable.

Supervisors adopted Resolution R-17-25 (CIP) as amended and Resolution R-18-25 R1 to adopt and appropriate New Kent County’s FY25–26 governmental and schools budgets. The board also adopted a reimbursement resolution (R-20-25) allowing the county to reimburse prior capital expenditures from future tax-exempt financings when applicable.

The board’s vote on the budget and CIP was unanimous.