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Smyth County officials set May public hearings after administrator warns of $2.5 million FY27 deficit
Summary
County Administrator Shawn Utt told the Board the proposed FY27 package still leaves a roughly $2.5 million shortfall; the Board scheduled public hearings on real-estate tax and utility rate changes for May 21, 2026, and discussed billing and collection options to shore up revenues.
County Administrator Shawn Utt told the Smyth County Board of Supervisors on April 9 that projected increases in real-estate taxes, proposed utility-rate hikes and solid-waste fee changes still leave a roughly $2.5 million deficit in the proposed FY27 budget. Utt said, “leaves a $2.5 million deficit in the FY27 budget.”
At a briefing on March financials Assistant County Administrator for Operations Lisa Richardson reported a current fund balance of $21,269,681.54, and Utt said local uncollected tax revenue totaled $4,986,499.51. Utt urged additional budget reductions, recommended twice-annual real-estate tax billing to improve cash flow, and proposed scheduling public hearings on revenue changes.
After discussion, Chilhowie District Supervisor Mike Sturgill moved to schedule public hearings on proposed real-estate tax increases, water and sewer utility rate increases, and solid-waste rate increases for May 21, 2026, at 5:00 p.m.; the motion passed unanimously with Saltville District Supervisor Roscoe Call noted as absent. The Board also approved a committee recommendation to partner with the Smyth County Treasurer to publish delinquent real-estate accounts in the Smyth County News & Messenger as a collection tool.
The county’s budget materials presented several revenue options the Board discussed, including a proposed 5% increase in real-estate taxes, a 5% increase in water fees, a 10% increase in sewer fees and a 5% increase in solid-waste tipping fees; Utt said those adjustments still produced the shortfall. He also noted the General Assembly’s pending actions could affect local burdens, saying if HB 1263 and SB 378 (bills affecting collective-bargaining restrictions) become law the county expects substantial budgetary impacts and may need to begin a property reassessment process.
The Board directed staff to schedule the public hearings and continue budget committee work; Utt said staff will present further reductions and additional detail at upcoming budget meetings, including a committee meeting on April 16.
