Fauquier County presents FY2026 proposed budget, schedules March public hearing; Davenport outlines debt capacity and TIF options

Fauquier County staff presented the fiscal year 2026 proposed budget and a multi-year capital improvement program at a board work session, highlighting modest revenue growth, a lineup of one-time reserve requests and an expected rise in debt service in later years.

County budget staff recommended a $441.5 million proposed budget, an increase of about $27.3 million from the prior year, and a 3-cent increase to the real-estate tax rate (raising the proposed overall rate to 0.973 from 0.943). The presentation also showed a proposed general fund of $234.7 million and an operating transfer to the school division of $106.1 million. A public hearing on the budget is scheduled for March 20 at 7 p.m. at the Fauquier High School auditorium, with markup planned for March 25 and adoption currently scheduled for March 28.

Why it matters: the proposal front-loads funding for schools, public safety equipment and asset replacement while asking the board to consider limited tax-rate increases and one-time uses of reserves that would affect capital reserve balances. The public hearing and subsequent markup sessions will determine whether the advertised changes and the recommended tax-rate adjustments move forward to adoption.

Key revenue and tax items - County staff told the board the county's real-estate base is projected to grow by 0.91 percent, producing roughly $1 million in new general-fund real-estate revenue. Personal-property revenue and sales tax projections were each raised by about $1 million and $0.5 million respectively; projected interest income was increased by about $1.4 million. - The presentation recommends a 3¢ real-estate tax increase, producing an advertised rate of 0.973 (from 0.943). Staff noted the advertised tax rate includes flexibility for an additional 2.5¢ in the process; the increase was advertised as 1.5¢ to the general rate and 1¢ to the fire-rescue levy.

School funding and health insurance - The…