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Wythe County board discusses 1% school construction sales tax, approves transfers and pay-scale changes
Summary
County administrators told supervisors a state provision could let Wythe County place a 1% local sales tax for school construction on the ballot, estimated to generate about $5 million annually; the board approved several budget transfers, a return of $3 million to the general fund, and FY27 pay-scale adjustments effective July 1.
Wythe County supervisors on June 30 discussed a newly passed state provision that would allow localities to place a 1% sales tax on the ballot to fund new school construction and approved routine budget actions and salary adjustments.
County Administrator Breyer told the board the General Assembly has authorized a mechanism for localities to request a referendum to adopt up to a 1% local sales tax restricted to school construction. Breyer said staff estimates that a 1% sales tax could generate about $5,000,000 annually for Wythe County and noted the tax could allow the county to accelerate capital projects, including a new Spiller Elementary and renovations at Fort Chishol High School. "This action... cannot be used to pay for any existing debt service. It can only go towards new school construction," Breyer said.
Breyer and the county's financial advisers will work through timing and language; staff told the board action on a resolution could be required at the July 14 meeting to place the measure on November ballots depending on final timing (the administrator cited procedural windows of 81 to 105 days depending on governor action).
On budgetary motions, the board approved returning $3,000,000 from the water operating fund to the general fund after closing a loan that improved the water account’s cash position. The board also set a public hearing for July 14 to consider FY27 budget carryovers, which the administration had listed at $34,088,250. Breyer said staff will review those carryover requests with the finance director and bring recommendations to the board before the hearing.
The board approved a change to the FY27 pay scale to deliver a 3.5% increase effective July 1 (staff described this as moving the pay scale up 1 percentage point so employees receive the full 3.5% that had been budgeted in part as step increases). Breyer estimated the county’s share of the change at roughly $120,000 and said final numbers will be in the July 14 materials.
Some budget items reported in the packet were difficult to parse from the transcript. For example, a school budget amendment request is recorded in the meeting materials with an unclear numeric transcription; staff will provide corrected figures at the July 14 meeting.
The board approved these administrative items by motions and roll-call votes during the meeting and asked staff to return with more detail at upcoming meetings.
