Accomack supervisors hold public hearing on FY2026 budget; propose 5¢ real-estate increase to shore up EMS fund, double cigarette tax

Accomack County Board of Supervisors held the first of two advertised public hearings on March 24, 2025, on the county’s proposed fiscal year 2026 budget and proposed tax-rate changes, including a 5¢ increase in the real-estate tax earmarked for the county EMS fund and a proposed increase in the cigarette tax from 20¢ to 40¢ per pack.

County Administrator Mike Mason said the 5¢ increase is intended solely to address a structural imbalance in the EMS fund and would be deposited to the EMS fund to pay for emergency medical services. "The proposed real estate tax increase is 5¢," Mason said. "All revenues generated from this increase, if approved, would be deposited to the county EMS fund and used exclusively to pay for EMS services." Mason added that the increase would not expand services but would close a projected FY2026 shortfall.

The nut of the county’s presentation: the EMS fund is projected to run a deficit in FY2026 absent new revenue. Mason said the county’s prior decisions—adding 12 EMS positions in 2022 and targeted pay increases in 2023 without raising the EMS tax at those times—were paid from the fund balance and have left the EMS fund with insufficient recurring revenue. He said the county had nearly $5 million in the fund in 2023 but projects that, without action, the fund would be roughly $2 million in the red in FY2026. Mason told the board that a 5¢ increase would generate about $2,000,000 in new revenue and substantially reduce the projected deficit through FY2027, though it may require further action later if costs continue to grow.

The presentation included operational and budget context: the proposed FY2026 all-funds budget is about 6.8% larger than FY2025 (4.4% of that from recurring operational costs and a 39% increase in one-time capital spending). Mason identified priorities in the proposed budget including funding for wastewater planning in northern Accomack, derelict-building removal grants, a rear access road at Watts Research Park, a 3% cost-of-living adjustment effective July 1 for county and state-supported positions, continuing deposits to the rainy-day fund (a proposed $972,000 transfer), and several targeted staffing changes. The general-fund local contribution toward public education was shown approaching $23.5 million under the proposal.

Mason also detailed the direct taxpayer impact: the 5¢ change amounts to $50 in additional annual tax per $100,000 of assessed value; using the county’s median taxable-improved parcel value of about $151,000, he calculated about a $75 annual increase for the median property. He said the cigarette tax increase would bring the county to the state-authorized maximum of 40¢ per pack and noted Accomack’s elevated per-capita cigarette sales are driven in part by cross-border purchases from higher-tax states.

Board members pressed staff on alternatives to a dedicated tax increase. Supervisor Washington said the presentation made the case for action: "To me, it just sounds like this is a no-brainer," he said. Several supervisors asked whether the county could use one-time general-fund money instead of a dedicated tax; Mason said the board is not prohibited from using general-fund dollars to cover EMS needs but cautioned that one-time transfers would not resolve the fund’s underlying structural imbalance. During discussion, board members and staff noted staffing consequences if the shortfall remained: board members and EMS staff warned that failing to address the gap could require cutting positions and would harm recruitment and retention. Mr. Pruitt, an EMS staff member who answered operational questions during the hearing, said cutting positions would leave stations without coverage and harm response plans.

The board received one public speaker. Willow Gale of 25138 Valley Creek Club Lane asked whether funds for new ambulances are in the EMS fund or the general fund; Mason said ambulance purchases are planned from the general fund. Gale also asked about teacher vacancies and federal funding; the chair and staff said teacher-staffing questions are for the school board and that, to their knowledge, federal funds were not at risk at that time.

Procedural votes: the board voted to permit Supervisor Tarr to participate remotely from Orlando, Fla.; it adopted the meeting agenda; and later adjourned after closing the consolidated public comment period. No final action on the advertised budget or the tax rates occurred that night; Mason and staff reminded the public that, under the Code of Virginia, the board cannot adopt advertised tax rates before April 14, 2025, and that the board has a second advertised hearing on April 7 and a decision date on or after April 14.

Votes at a glance - Motion to allow Supervisor Tarr to participate remotely (reason provided and written request received): approved by voice vote (mover/second not specified in record). - Motion to adopt the meeting agenda: approved by voice vote (mover/second not specified in record). - Motion to adjourn: approved by voice vote (mover/second not specified in record).

What’s next: The board will hold a second advertised hearing on the FY2026 budget and tax rates on April 7, 2025, and may act on advertised tax rates and the budget beginning April 14, 2025, per state law.