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Goochland holds public hearings on tax rate, FY27 budget and data‑center tax policy as residents debate AI-era infrastructure
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Summary
At public hearings the Board reviewed a proposed 2026 real‑estate tax rate, FY27 budget updates and a staff presentation on data‑center tax rates; residents raised concerns about data‑center energy demands, Valley Link ties and utility fee increases.
The Goochland County Board of Supervisors opened public hearings on the proposed 2026 real‑estate tax rate, the draft FY27 county budget and a recommended data‑center tax rate and utility rate adjustments on April 7.
Staff said the advertised real‑estate rate to maintain revenue neutrality is 50¢ per $100 of assessed value after a countywide assessment increase; County staff noted the effective rate change is modest once assessment increases are taken into account. The proposed FY27 all‑funds budget increased 15.3% versus last year largely because it includes utility projects and debt service; the general fund increase is summarized as about 4.6% after additional revenue identifications and savings.
Economic development staff presented benchmarking on data‑center tax policy and modeled a hypothetical 500,000 sq. ft. data‑center campus. Sarah Worley, deputy county administrator for economic and community development, said at the existing 40¢ data‑center rate a small campus could generate roughly $3.4 million annually in combined business personal property and real‑estate tax revenue; an AI‑heavy campus could produce materially more. Worley cautioned that raising the data‑center rate to attract revenue could deter investment given the sizable infrastructure and equipment costs and that some jurisdictions have locked low rates as an incentive.
Residents voiced split views. Several speakers urged the board not to make Goochland attractive to data centers because of AI‑era power and cooling demands, the need for large water and electrical infrastructure, and the risk that short‑lived investment would leave the county with long‑term costs. One resident who volunteered at length said AI data centers often need very high rack densities, liquid cooling and consumption measured in tens to hundreds of megawatts, and cautioned the board to consider those facility requirements before offering incentives.
Utility staff also presented a revised water and sewer rate study recommending a 3% residential and commercial base and volumetric increase, a 2.5% connection fee increase, and a new $450 building‑code appeals fee. Staff said the increases are intended to fund capacity and the Ridgefield Booster Pump Station project and maintain reserves for repair and replacement; utility funds are proprietary and not transferred to the general fund.
Next steps: the board will consider approval of the advertised tax rates and fee ordinance at its April 14 meeting and may adopt the FY27 budget and CIP at the May 5 meeting.
