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Wythe County board weighs 1% sales tax to fund $70'$80 million in school projects; sets hearing on FY27 carryovers
Summary
County staff told supervisors newly passed state language lets Wythe County place a 1% local sales-tax referendum dedicated to new school construction; staff estimated the tax could yield about $5 million annually and advised the board to consider a resolution for the July 14 meeting; the board also set a July 14 public hearing on FY27 carryovers totaling roughly $34 million.
County staff told the Wythe County Board of Supervisors on June 30 that recent action in the General Assembly creates a pathway for localities to place a referendum asking voters to adopt up to a 1% local sales tax dedicated to new school construction.
"Basically, it allows localities to pass a resolution to request that a item be placed by referendum on upcoming general election to allow the implementation of a 1% sales tax on goods and services'some certain items excluded'solely for school construction," County Administrator Breyer briefed the board. He said the authority cannot be used to pay existing debt service and estimated that a 1% tax could generate about $5,000,000 annually for Wythe County.
Staff said the school board has pending projects estimated between $70 million and $80 million (new Spiller Elementary, Fort Chiswell High School renovations, roofs, chillers and athletic facilities). Breyer explained that debt-service costs for new borrowing would depend on interest rates and other financing details and gave an illustrative range for estimated debt service on those project amounts.
Because of timing rules tied to the governor's approval and statutory windows, staff recommended preparing a resolution and additional materials for the board's July 14 meeting so the county could meet the referendum-adoption deadlines if the board chose to proceed. Staff also said they were coordinating with VACO and other advisors to provide financial modeling for the board.
On the same agenda, the board approved multiple budget amendments and transfers: county staff requested authorization to transfer $3,000,000 back from the water operating fund to the general fund (loan closed) effective June 30; the board approved amending and appropriating $761,107 into the school board instruction budget (state-directed bonuses and Medicaid funding); and the board set a public hearing for July 14 to consider carryovers from FY26 into FY27 (total carryover requests presented at $34,088,250 with the school board carryover estimated around $1,500,000).
Breyer and the board also discussed personnel costs for FY27: staff recommended a 1% shift in the pay scale to achieve an overall 3.5% increase for employees and constitutional officers; the board approved the pay-scale revision to take effect July 1 and be reflected in the July 31 payroll.
Next steps: staff will prepare draft resolutions, financial estimates and public-hearing materials for the July 14 meeting and continue to coordinate with financial advisors and VACO representatives.
