Henrico supervisors review budget proposal, hear from residents

The Henrico County Board of Supervisors held a public hearing March 25 about the county's proposed $1.355-billion general fund budget for Fiscal Year 2025-26, days after concluding its annual week-long budget review process.

The hearing allowed an opportunity for residents to provide input on the plan prior to its adoption by supervisors April 8.

The budget proposal features a continued focus on education, public safety, tax relief and infrastructure needs while maintaining one of the lowest tax burdens for residents in Virginia, according to Budget Director Justin Crawford.

“Tax relief in this budget was a priority,” Crawford said.

The budget also helps Henrico maintain one of the lowest tax burdens in Virginia, according to Crawford.

There is a proposed total of $18.3 million in tax relief, which would include a two-cent reduction in real estate tax rates (to $0.83 per $100 of assessed value; a five-cent reduction from $3.40 to $3.35 on personal property taxes for the more than 300,000 registered vehicles in the county; and a 15-cent reduction of the business personal property tax rate from $3.50 to $3.35.

A tax increase of $0.40 to $2.60 on data centers is expected to offset some of the tax relief in 2025. 

“With the data center [tax] rate being set at $2.60 for tax year ‘25, this is kind of picking up a maturing industry, and at $2.60 they are still receiving a tax break off of the $3.35 rate,” Crawford said. 

The key budget priorities, as usual, are education and public safety, for which 78% of total expenses are allocated (and to which 82% of the general fund budget growth was dedicated). The school board's proposed budget is fully funded to support academic programs and student services, Crawford said. 

Crawford also highlighted the proposed employee salary increase, which will provide eligible employees a 6% raise. More than 1,000 support staff employees in the county's public school system also would receive additional pay bumps that could increase their overall raises to as much as 19%.

The budget also includes infrastructure investments, such as $200 million for water and sewer system improvements, $27.5 million dedicated to transportation projects and an increased funding for sidewalks and pedestrian paths to improve walkability and safety in the county. 

The county aims to achieve $12 million in permanent cost savings across government and school operations. 

Community members address supervisors

After Crawford’s presentation to the board, several community members voiced their concerns and requests regarding the budget. 

Crossover Healthcare Ministry CEO Julie Bilodeau highlighted the clinic’s 20-year role in providing comprehensive care for people in need as she requested continued support for the organization's efforts. Crossover served more than 7,200 patients last year, 45% of whom were from Henrico, she said, and also distributed $8 million in prescriptions while adding audiology screenings for children.

It's also completing a renovation and plans to open a maternal and child health suite later this year.

Representatives from Arya RVA FC, a youth soccer club founded in 2021, appealed for better access to sports facilities. Executive Director Hamed Zakiri and Coach Stephan Brown told supervisors that the club serves more 100 young players, many from low-income and immigrant families and about 90% of whom attend Henrico County schools.

The club team has access to Brookfield and Woodman parks and for practice but has faced challenges in the past three weeks, including locked goals and goals with no nets. With the club's first game of the season approaching this week, the men requested access to a turf field.

Board Chair Dan Schmitt of the Brookland District encouraged them to continue working with the Recreation and Parks Director John Zannino. 

“I will also tell you that this is not new, not unique," Schmitt said. “We’ve all heard it. Everybody’s looking for field space, but I will give you some hope that you’re in the right room tonight, and you have the right guy to meet right there.” 

Parent and advocate Marlene Sherlock voiced frustration about overcrowded classrooms and what she said were low test scores in Henrico County Public Schools. She urged the board of supervisors to hold the school division accountable and explore new approaches to improve public education.

Henrico resident Gray Montrose criticized the budget proposal, calling it “trickle-down economics.”

“We’ve been trying this sort of economic growth strategy for 40 years. We haven’t raised property taxes in 40 years,” Montrose said. “The strategy didn’t work when we bulldozed Tuckahoe. It didn’t work when we developed Three Chopt, and it’s not going to work when we develop Varina.”

Board members Tyrone E. Nelson (Varina) and Misty Roundtree (Three Chopt) dismissed some of Montrose’s comments, questioning the accuracy of her argument.

The board will adopt the budget at its April 8 meeting.