James City County approves $390 million budget with no real estate tax credit
Supervisors defend the need to provide for schools and public safety, say budget growth is in line with inflation and population growth.
James City County supervisors unanimously approved a $390.5 million budget Tuesday night that ended this year’s 5-cent real estate tax credit, and moved forward with a new government center and library building.
They also approved a new budget for county utilities that will raise water and sewage rates.
Chair Jim Icenhour proposed a 2-cent credit for the next year, since property values would be re-assessed next year. But none of the others except Stonehouse representative Barbara Null agreed.
Supervisors defended their decision against complaints from 20 speakers who said they were paying too much in taxes and that the county should trim spending. They said budget growth had been in line with the growth of the county’s population and inflation.
“We are a fiscally responsible and well managed community,” Icenhour said.
They also noted the county has a tax forgiveness program for low income and disabled residents.
Berkeley District Representative Ruth Larson warned schools would ask for more funding next year as the percentage of students with special needs increases.
Supervisors heard from 20 speakers complaining about the double digit property tax increases they have seen as a result of last year’s property reassessment.
Many of the speakers raised concerns for the county’s rapidly growing population of retirees. The proportion of county residents aged 65 or over jumped from 20% to 26.8% of residents between 2010 and 2022, according to census estimates, and the county estimates that could grow to 30% by 2030.
The growth of an older population with no children at home also has implications for support for local schools, which consume nearly half of the county’s budget. One speaker questioned why he should pay for schools when his children have left home.
“I’m being priced out of my home here,” said Rebecca Smith, who said she retired here from New Jersey four years ago. Her husband died a year later, cutting her social security income, she said.
Smith said she has cut costs, giving up her telephone landline and cable TV. Her Social Security raise last year of 2.3% did not keep up with inflation, she said. Smith added she has small investments to supplement Social Security but “that money has got to last. I have no children, no family, I’m on my own.”
Powhatan Representative Michael J. Hipple said only 20 people out of 80,000 residents had shown up to complain. He was especially critical of the speaker who suggested he did not want to pay for schools because he has no children at home.
Many speakers appeared to think there would be a 21% real estate tax increase baked into the new budget, which was not correct. Homeowners’ taxes went up as a result of last year’s real estate assessments, which are based on home sales and showed a significant rise in home values.
The supervisors provided a 5-cent tax credit last year, which was not renewed for the 2026 budget. The rate remained at 83 cents per $100 of value.
Speakers also protested the county’s plan to spend more than $230 million for a new county office complex with an adjoining new library building.
“We are in a race with the city of Williamsburg to the bottom” economically, said John Slokovitz, who is challenging Board Chair Jim Icenhour for the Jamestown district seat in November. “We will find ourselves with a county with great amenities, but no one can afford to live here.”
Several speakers also asked the supervisors to put the new government center up for a referendum. Several said the county should rent empty retail spaces and offices if it needs more room for staff.
Supervisors said the new office building was needed to handle the need of the growing population. “Fifty years ago there were 14,000 people in this county, today there are 80,000,” said McGlennon.
He noted the county has been publicly discussing the project for more than four years and could not be blamed if some people had not paid attention.
Before the budget meeting, supervisors met as the board of the James City Service Authority to unanimously approve a rate increase in water and sewer rates to fund infrastructure improvements.
The increases will raise the average family’s monthly rates by 31.5% over the next four years.
Supervisors also approved the authority’s $30.7 million budget for the fiscal year starting July 1.
The Supervisors say that it isn't a tax increase because it was caused by a assessment increase not a rate increase. Virginia law is clear that when assessments rise over 1%, the rate reverts to a rate that brings in 101% of the previous year's revenue. The Supervisors can then raise it, which is called in the law an effective tax increase. Can't be more clear than that.
I am sure more than 20 people have complaints and reasoned arguments related to county spending. People work at 7am,people have children to prepare dinner for,people are night blind. Zoom is easy to use and extends access to an evening meeting to more people.