Amelia County reviews proposed FY2026 budget; schedules workshop, delays final advertising

County Administrator Mundy presented the proposed fiscal year 2026 budget to the Amelia County Board of Supervisors and asked the board to direct staff to advertise the tax rates, fees and proposed water and sewer rates required by the Code of Virginia before holding a public hearing.

The proposed budget, as presented, would not raise county tax rates but would raise sanitary-district water and sewer rates to cover increased variable operating costs. The presentation included a $60.7 million total-expenditures estimate, a recommended 3% cost-of-living adjustment for county employees, a 6% increase in health‑insurance premiums split between employees and the county, restoration of one deputy‑sheriff position, and funding to transition EMS service under a staff‑driven “option 3” that would place more county fire and EMS employees on the road.

Why it matters: the board must publish a legal notice under the Code of Virginia and hold a public hearing at least seven days before final adoption. Advertising starts a legal clock: once the rates and fees are advertised they may be lowered but not raised before final adoption.

Mundy told the board the package of documents before supervisors — a three‑page legal notice, department summaries and slides — will be posted online and made available in the county administrator’s office. He said the budget is balanced on the revenue and expenditure assumptions staff used and highlighted a number of items from the presentation, including:

- Revenue and reserves: The county’s undesignated fund balance grew by about $1.6 million in the prior year, and staff estimated the county is roughly 22.2% toward a 30% fund‑balance target. Staff emphasized avoiding drawing on reserves to fund ongoing operations.

- Sanitary district rates: Staff said a typical household using about 3,000 gallons per month would see roughly a $5 monthly increase (about an 8% rise) if both water and sewer are provided by the sanitary district. That increase is intended to cover variable operating costs for utilities without using general‑fund dollars.

- Personnel and compensation: The proposal includes a 3% COLA for county employees, a 1.5% comp‑board bonus for positions funded through the state Compensation Board, and a county match so employees who work alongside comp‑board positions receive similar adjustments. Mundy said the county aims to remain competitive in the local hiring market.

- Health insurance: Staff said premiums are projected to increase about 6% in FY26 and that the budget splits that increase between employees and the county.

- EMS: The budget funds the startup costs to implement EMS Option 3—transitioning from a commercial EMS contract to county fire and EMS employees—by funding upfit and initial operating costs and by placing more EMS vehicles in service during the day.

- Capital and CIP: The Planning Commission recommended $4.4 million in capital improvements, detailed in the presentation as roughly $1.2 million for school requests (mostly pavement), $1.8 million for an animal shelter, $1.2 million for public‑works projects (including infiltration and inflow work), and $208,000 for parks and recreation. Staff estimated a beginning CIP balance of about $13.1 million and projected a roughly $10 million ending CIP balance at the close of FY26 if the spending plan proceeds as presented.

- Economic development and grants: The Economic Development Authority obtained a $100,000 Go Virginia grant for a Richardson Road industrial site master plan; a site sign went up days before the meeting. The county also reported a $125,000 siting agreement payment tied to a solar project and a nearly completed emergency radio system project that received a $1,000,000 grant and is reportedly under budget.

Board discussion: Supervisors debated whether to advertise the rates and proceed to public hearing. Several supervisors said they did not want to raise taxes; others argued that modest, gradual increases are more prudent than waiting and forcing larger increases later. Concerns raised included the level of detail supplied to supervisors (some members asked for more time and additional information before advertising), the need for a clear summary of department requests versus proposed funding, and alternatives for revenue generation such as reassessing land‑use preferential rates or improving tax collection through assessor services.

Interim Finance Director Pan Youssef told the board she had prepared the legal notice and a separate page of proposed water and sewer rates that must be published with the budget advertisement. Staff warned that the advertisement must be sent to the newspaper by noon on the next business deadline in order to meet the legal timeline for the public hearing.

Senator Cyphers meeting: The board paused the budget discussion to receive State Senator Cyphers (state senator). Cyphers outlined recent state fiscal actions, including one‑time tax rebates and additions to the rainy‑day and ready‑reserve funds, and noted state allocations that may touch local budgets—examples he mentioned included a state bonus for state and state‑supported local employees and broadband funding through the Virginia Telecommunications Initiative. Cyphers also discussed the complication that state funding tied to Compensation Board positions often requires local matches, which can create an immediate county fiscal burden despite new state dollars.

Action taken and next steps: The board did not finalize a vote to advertise the tax rates and water/sewer rates during the portion of the transcript provided. After meeting with Senator Cyphers, the board set a budget workshop and continued the meeting. A board member moved that the meeting be continued to Monday, April 14 at 6:00 p.m. for a budget workshop; the chair called the motion, asked “All in favor?” and the motion carried. Staff were asked to place the CIP list, information on assessor/shared‑assessor options, and EMS and fire equipment items on the workshop agenda.

Quotes: "We hereby present the proposed FY 26 budget," read in the staff video that could not be played, in reference to the package of documents staff prepared, County Administrator Mundy said. Senator Cyphers said, "taxpayers are tapped out," describing his view that household and local fiscal pressures limit the scope for new ongoing spending without offsetting revenue. Interim Finance Director Pan Youssef reminded the board that the legal notice and proposed rates must be placed in the newspaper on a strict timeline under the Code of Virginia.

What’s next: Staff requested direction on the tax rates and water/sewer fees to include in the legal advertisement and recommended the board hold a public hearing in late April, with final adoption at least seven days after the public hearing as required by state law. The board scheduled a budget workshop for April 14 at 6:00 p.m. and asked staff to provide additional detail on department requests and the cuts/deltas between requests and the proposed budget.

Limitations: The transcript does not record a roll‑call vote or a completed motion to advertise rates during the portion provided. The only recorded formal outcome in the transcript excerpt is the board’s motion to continue the meeting and hold a budget workshop on April 14 at 6:00 p.m.