Budget Director Cheryl Holland presented a preliminary financial report showing a surplus in fiscal year 2025 and a healthy unassigned fund balance for James City County. She also summarized first-quarter results for fiscal year 2026 and explained timing differences that affect early-year comparisons.

Holland told the board that general property taxes — primarily real estate — are the county’s largest revenue source and that FY 2025 increases mainly reflected a reassessment year. Preliminary FY 2025 figures show the county used about $24.3 million of fund balance for one-time items including a $6.5 million tax credit, approximately $12.5 million in CIP and debt service support, $2.76 million for Settlers Market improvements, and other uses. After accounting for those items and year-end activity, Holland said the county’s unassigned fund balance was about $79.1 million (roughly 25.1% of expenditures), well above the county’s 15% policy threshold.

“I'll note these figures are still preliminary until the year end financial audit is completed and presented to the board in December,” Holland said.

Holland also reviewed preliminary expenditures for FY 2025 and said most departments finished the year under budget; timing differences related to debt service and encumbrances produced some variation in department-level percentages. For FY 2026’s first quarter (July through September), Holland said revenue and spending patterns reflect timing: excise tax processing and some transfers occur at different points in the year, and some departments incur large early-year costs such as annual insurance premiums and software contracts.

In questions, Supervisor Eisenhower asked about sales tax trends; Holland said sales-tax receipts have held “steady or [shown] slight increases compared to last year,” with seasonal patterns and a two-month state reporting lag. Holland closed by noting the county will present the audited FY 2025 results in December.

No budgetary actions or votes were taken at this meeting; the figures were presented for information.