Powhatan proposes 77¢ tax rate and prioritizes public-safety pay, reserves and cash-funded vehicles in FY27 budget

Powhatan County Administrator Will presented the proposed fiscal year 2027 budget at the board’s March 5 workshop, saying the general fund would be “just over $90,000,000” and total all funds about $174.6 million while recommending a 77¢ tax rate to support priorities including public‑safety pay and reserve preservation.

Will told supervisors the administration has prioritized maintaining competitive pay in the region—particularly for deputies and firefighters—and refocused the capital‑improvement plan to be “realistic and financially grounded,” including a strategy to reduce reliance on debt for routine replacements.

The presentation included a financial model showing an eroding fund balance in the out years driven largely by CIP projects; Will said the county could respond by reprioritizing projects, increasing revenues, or reducing spending. “If we were to align these lines up…we would need to either reprioritize our CIP projects, increase revenues or reduce the spending,” he said.

Staff briefed the board on revenue drivers: real‑estate tax revenue is projected at about $51 million, interfund transfers about $42.9 million, and the proposed budget represents about a 2.2% increase over FY26 budgeted revenues—below the roughly 2.5% inflation figure staff cited.

On personnel and operating costs, the FY27 proposal includes a classic comp adjustment, a 3% across‑the‑board salary increase, retiree payout provisions and an assumed 10.5% rise in health‑insurance costs; Will said those elements are reflected at the proposed 77¢ rate and would preserve staffing while targeting public‑safety pay disparities.

The administration also proposed cash‑funding many vehicles to avoid interest costs associated with debt funding. Will noted that vehicles debt since 2016 has generated nearly $1 million in interest and said the FY27 plan would cash‑fund many maintenance‑related vehicle purchases as a cost‑saving measure.

Board members pressed staff for detail on the components of revenue projections and asked for additional breakdowns (assessments vs. rate changes). Will said staff will circulate supporting spreadsheets and pointed to a calendar of near‑term workshops: a school‑board workshop March 11, department requests March 12, a CIP workshop March 16 (when the county needs to set the tax rate to advertise), and a decision to advertise the budget on March 26.

The workshop concluded with public comment and a plan for follow‑up workshops where staff will provide more project‑level CIP detail and school budget reconciliations.