Surry County manager recommends $108.3 million budget, proposes 51.8¢ tax rate

County Manager Chris Kanoff presented the recommended Surry County fiscal year 2025-26 budget on May 19, proposing a $108,285,561 general fund and a recommended property tax rate of 51.8 cents per $100 of assessed value, compared with a published revenue-neutral rate of 49.6 cents.

Kanoff told the Board of Commissioners the recommended budget responds to rising program costs in social services, public safety and facilities while reflecting flattened consumer spending and lower expected sales-tax growth. "The total general fund recommended budget is $108,285,561," Kanoff said during the presentation.

The recommended rate would raise roughly $34 more per year for a $150,000 home and about $66 for a $300,000 home in the scenarios Kanoff presented, which include the landfill fee and the highest volunteer fire district levy. Kanoff said the proposed rate is slightly above revenue neutral and noted the board must publish the revenue-neutral rate after a recent reevaluation.

Why it matters: Kanoff said significant increases in county-held costs drive the recommendation. He highlighted a near-doubling of Medicaid-eligible residents over recent years and rising county share costs for the Department of Social Services, detention center operations and public health. The recommended budget includes salary-study adjustments previously approved for DSS, the communications center, EMS and the Fire Marshal's Office.

Kanoff identified several major line-item changes: a 131.1% increase in facilities spending driven by multiple HVAC projects; planned increases for EMS (6.1%) and the sheriff's office; and an almost $2.1 million increase in the county's share of DSS costs. He also said no replacement patrol cars or new ambulances are included in the recommended capital program.

On enterprise funds, Kanoff recommended a general-fund transfer of $191,723 to support the Mount Airy/Surry County airport next year, and he proposed a landfill tipping fee increase (initially presented as $62 but with a revised board target of $57 to be considered at the budget work session). He said the county's combined fund balance stood at about $8.9 million through April, with roughly $7.9 million after accounting for one-time professional-service expenses.

Kanoff said departments requested roughly $119 million and that the recommended budget represents constrained choices: "Next year, I think it's a hunker down year," he told the board. He also noted the board will hold a public hearing on the recommended budget on June 2 and a budget work session the following week.

Laura Lee, the county finance officer, gave month-to-date financial context showing general-fund revenues at 73.8% of budget through April and total general-fund expenses at 78.1%; she said a $6 million bond debt payment in April contributed to the expense jump. Lee also reported landfill fund revenues at 74.3% and total bank balances through April of $607,430,110.81 (as read in the meeting).

The board did not take a final vote on the budget at the May 19 meeting; Kanoff asked commissioners to review the short form budget posted on the county website and invited questions before the June hearings.

Kanoff closed by thanking staff members who prepared the budget and characterizing the proposal as an earnest attempt at fairness amid fiscal pressures. The board will consider fee schedule changes for development services and emergency services, the landfill fee target, and taxing-district rate requests during upcoming work sessions.