Madison County treasurer projects flatter interest income, presents tax and fee options to close FY27 gap

Treasurer Brian briefed the Board of Supervisors on revenue trends and FY27 projections, telling the board that interest rates on common county cash placements (LGIP, VIP, SNAP pools and Atlantic Union sweep accounts) have declined from mid‑year highs and that the county keeps a $7.5 million sweep balance at Atlantic Union to offset fees. He described a new state‑backed option (Virginia Mint/US Bank) that offers a modestly higher yield and said staff are evaluating moving some balances there.

Brian and budget staff presented a list of the top projected revenue increases for FY27 if current rates hold: roughly $260,000 from new real‑property assessments (new construction), about $1.93 million from local sales tax (preliminary trend projection), approximately $520,000 for ambulance transports (up by trend), and other one‑time or grant items (forestry grants, emergency‑shelter upgrades) that are not expected to be permanent. He cautioned supervisors that many of those increases reflect grant or temporary funding and may not recur in FY28.

On the shortfall side, staff said several grants are uncertain and some program revenues (interest income and other fees) are trending down. “Look, I’m going to be honest with you,” Brian told the board. “As you know, I don’t know where you’re going to get everything that you need with revenue this year.”

To bridge potential gaps, staff quantified choices for recurring revenue: a 1% increase in real‑estate tax would generate about $275,000; a one‑cent increase in the personal‑property tax rate would yield roughly $175,000; a 1% increase in the meals tax could yield about $140,000 recurring; a 1% lodging (TOT) increase could add about $50,000. Staff noted statutory and local caps (meals tax cap at 6% statewide) and recommended caution because some revenue line items may be volatile or one‑time.

Board members asked for additional breakdowns: how building‑permit revenues are being reported after line‑item changes, whether fiber deployments affect utility tax revenues, and whether rising or falling machine‑and‑tool or franchise taxes reflect business closures locally. Staff said they will follow up with more detailed permit reporting and confirm the timing of state sales‑tax projections.

The board left the presentation with a set of policy options they could consider during upcoming budget deliberations: modest rate changes, user‑fee adjustments, or targeted one‑time appropriations from fund balance for one‑off needs.