Wise County supervisors confront multi-million-dollar shortfall, weigh tax-rate options
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Summary
County treasurer and outside adviser told the Board of Supervisors that audited balances and recent revenue shortfalls leave a structural gap estimated in the low-to-mid millions; the board discussed tax-rate scenarios (55'69 cents), personal-property changes and painful budget cuts and scheduled follow-up work to set a rate.
Wise County's Board of Supervisors spent the Jan. 28 session focused on a growing budget gap after the treasurer and an outside adviser reviewed audit numbers and revenue scenarios.
Treasurer Dolores told the board she had provided the members with updated cash and audit figures through Jan. 28 and cautioned there are no hidden reserves. "I assure you, I don't have any more money than what I'm presenting," she said, explaining that audit exhibit figures, receivables and restricted funds are not the same as spendable cash. Dolores said the county was operating billing to billing and that January's operations reduced some short-term cash accounts by about $3 million.
An outside financial adviser, David Rose, presented a wider view: he said the county entered the fiscal year assuming a roughly $7 million one-time use of fund balance and that subsequent revenue adjustments and prior assumptions left a structural shortfall larger than anticipated. Rose described the plan the county had discussed last year (a four-part approach including a reassessment cadence, phased penny increases in tax rates, a conversion that yielded roughly $2.5 million and a debt restructuring) and said only parts of that plan were implemented. Using conservative "worst-case" assumptions, he reported a 2026-year gap on the order of $6.6 million and warned that continued inaction would burn down both committed and unassigned fund balances.
The county assessor and staff outlined how the recent general reassessment and the Department of Taxation's ratio for public-service corporations (power plants) affect projected levy totals. Staff said Wise County had been assessed at roughly an 81% ratio pre-reassessment; under different assumptions about the state's ratio (90% or 95%) and collection rates, revenue projections change materially. The assessor cautioned that every percentage point in the public-service ratio shifts roughly $100,000 in local levy under some scenarios.
Supervisors debated several options: equalize the effective tax rate back to the 55-cent level the reassessment implies for some taxpayers; maintain the current 69-cent rate; adopt a middle rate such as 63 cents; or combine modest rate increases with targeted increases in personal-property, machinery-and-tools and business-capital levies. Board members and staff also discussed non-tax revenue options (landfill and tire-fee adjustments), and operational actions including hiring freezes, attrition and targeted reductions. Several speakers warned that mandated costs (for the regional jail, social services, and state obligations) sharply limit how much the board can cut.
Board members repeatedly emphasized the human impact of any cuts. "We're going to have an RIF; there's no way around it," a supervisor said during the discussion, noting that millions in potential cuts would mean job losses across departments. Others urged a combination of revenue and phased cuts so employees and departments could plan.
Procedurally, staff reviewed statutory advertisement and public-hearing requirements and logistics for the tax-rate hearing, noting two newspaper advertisements are required and that larger meeting space should be considered to accommodate public turnout. The board voted to recess the meeting and continue the tax-rate and budget work at a reconvened session on Feb. 3 at 10 a.m.
Votes at a glance
- Motion to allow Supervisor Locksford to participate remotely while recovering from knee surgery: moved by Mister Bordwine, seconded and approved by voice vote (aye). - Appointment: Deborah Horton appointed to the Mount Empire Community College (district 2) seat after a motion and second; approved by voice vote (aye). - Motion to recess the meeting to Feb. 3 at 10 a.m.: moved, seconded and approved.
What happens next
Staff will produce penny-by-penny revenue tables (62'69 cents) that include potential personal-property and other taxable-category adjustments and the board will review departmental budget-reduction scenarios in advance of the public hearing. The board set a recessed meeting for Feb. 3 at 10:00 a.m. to continue the decision on the tax rate and accompanying budget actions.
