County Administrator Dale Wagoner presents $230.6M FY 2026–27 budget that cuts rate but raises most homeowners' bills

County Administrator Dale Wagoner on April 2 presented a proposed FY 2026–27 Henry County budget of $230,628,674 to the Board of Supervisors, saying the plan lowers the real estate tax rate to $0.48 per $100 of assessed value but—because of a general reassessment—will lead most property owners to pay more this year.

The proposal, which Mr. Wagoner described as an informative planning document required by Code of Virginia §15.2-1541, frames spending around three Board pillars: education, public safety and law enforcement, and economic development. "The proposed budget lowers the real estate tax rate, but because property values have increased so sharply, most property owners will pay more taxes this year," Mr. Wagoner said.

Key figures in the proposal include a 3.5% overall General Fund increase from the prior year, a recommended real estate rate of $0.48 per $100 (down $0.075), a personal property tax rate of $1.64 per $100 (up $0.09), and the elimination of the $20.75 motor vehicle license fee. Mr. Wagoner told the Board the revenue-neutral rate after reassessment is 37¢, and he estimated the net effect for the average homeowner as roughly a 31% increase in the tax bill.

The draft budget dedicates $117,973,744 to Henry County Public Schools. Mr. Wagoner said state support declined by $1,970,466 because of changes in the Local Composite Index and falling enrollment, prompting a 4.1% increase in the County’s contribution to schools to $24,352,855 (operations $22,092,452; debt service $2,260,403). He noted the Schools will realize about $1.1 million in savings from a biennial recalculation of Virginia Retirement System contribution rates.

Public-safety and sheriff-related spending are also notable. The proposed total for all Sheriff cost centers is $24,977,141 (about 2.17% above last year), including $782,000 for 11 sheriff vehicles and in-car camera systems and other equipment increases. The Public Safety cost centers total $5,717,957 and include funding for volunteer fire/rescue support, $100,000 toward a new fire truck, radios/pagers for volunteers, and funds to match an ambulance grant.

Mr. Wagoner raised a caution about the County’s self-insurance fund for employee health benefits, saying reserves accumulated from 2015–2024 are being drawn down rapidly and that the School Board’s 3% insurance increase "does not reflect current cost trends"; if trends continue, he warned, "significant premium increases and possibly adjustments to coverage levels may be required in FY 2028." (Darrell Jones and the County Chief Financial Officer provided background figures during the presentation.)

Capital investments in the proposed budget include $200,000 to replace 9-1-1 console equipment, $95,000 for a public safety emergency radio system, $782,000 for sheriff vehicles and in-car cameras, $61,752 for volunteer portable communication devices, and a set of smaller technology and facility projects. Staff recommended using unspent IDA funds for a slate of capital repairs and replacements—ranging from asphalt sealing to server replacement—if approved by the Board.

The proposal also recommends expanding tax relief for seniors and residents with disabilities, suggesting an increase in the income limit to $40,000 (cap remaining $500) with tiered discounts: up to $20,000 at 80%; $20,001–$30,000 at 50%; $30,001–$40,000 at 20%.

Mr. Wagoner identified several items not included in the proposal because of fiscal constraints, including $1,018,127 of additional discretionary funding for schools, a recreational planner, multiple new staff positions across departments (several shown with specific dollar requests), and other capital requests listed as TBD.

He closed by noting the proposal was prepared before the Commonwealth’s biennial budget was finalized and that state funding changes adopted by the General Assembly could require revisions. "If the Board of Supervisors wants to add to this budget beyond what is recommended here, there are only two options: reduce spending in other areas or increase revenue through the tax rate," Mr. Wagoner said.

After the presentation, Vice-Chairman Travis Pruitt moved to continue the meeting at 6:22 p.m. until Tuesday, April 7, 2026, at 5:00 p.m.; Ms. Debra Buchanan seconded. The motion carried with six AYES and no NAYS.

The Board will consider the proposed budget and any revisions when it reconvenes on April 7, 2026.