Potential 10-Cent Real Estate Tax Hike on Table as are Shared Town/County Funding of Tourism and EDA Activities

In addition to the basic costs of departmental functions and services relative to available County revenue streams, a good deal of discussion at the March 24th Warren County Board of Supervisors Fiscal Year 2027 work session focused on the potential for shared Town/County funding of mutually beneficial municipal projects. Prominent in that discussion were tourism promotion, economic development, and commercial recruitment efforts.

On the County-overseen EDA side, most recently, there has been some interest in rejoining Town and County EDA functions. And at Tuesday’s County Budget work session, Tourism promotion for Front Royal and Warren County was added to that financial, municipal actions puzzle.

The supervisors and staff had a new seating arrangement for the work session laid out. Royal Examiner Photos Roger Bianchini

Prominently mentioned was the potential impact of tax hikes in the current economic climate on county citizens. A 9-cent to 10-cent increase in Real Estate Tax was discussed. A budget summary noted that every penny of the tax rate equals $750,000 in revenue to the County.

Additional revenue uses were cited in the budget package as:

Schools –$5,431,393 (54.76%)

Sheriff & E-911 -$214,855 (2.17%)

Fire & Rescue -$459,000 (4.63%)

Social Services & CSA -$1,706,794 (17.21%)

Other Operational Increases -$2,105,964.76 (21.23%)

Total Increase: $9,918,006.76

Also raised was the potential of reimposing a cigarette tax. If the County alone did that, it would produce $980,000 in new revenue. If the Town establishes its own cigarette tax, that is expected to cut the County’s share to $500,000.

Despite the number of variables involved at this point, it appears the board is still seeking ways to avoid raising taxes other than Real Estate.

Potential impacts on the Rockland Park developmental initiative were also discussed.

The stress on citizens due to rising gasoline prices was prominently cited during the tax rate discussion. Vice-Chairman Tony Carter noted he had recently filled the 18-gallon gas tank of his vehicle from near empty at a cost of $75, as gas prices continue to rise, now into the $ 5-per-gallon range.

At the far end of the table to the right, Board Vice-Chairman Tony Carter wondered at how rising gas prices might impact some county citizens’ ability to deal with tax hikes. Below, new Public Schools Superintendent Dr. Troy Wright was in attendance to observe the board discussion.

One financial variable on this front noted that the bulk of County Public School vehicles, including school buses, run on diesel fuel, which is at the top of current gasoline price increases and likely to remain so in the future.

These budget variables were discussed during the second of three work session agenda categories. That category was item:

“B. Discussion – FY 26-27 Tax Rates, submitted by Commissioner of the Revenue Sherry Sours (starts at 0:3:56 video mark). EXPLANATION & SUMMARY: The Board of Supervisors will discuss the Real Estate, Personal Property, Sanitary Districts, and other tax rates that need to be established for the 2026 (calendar) Tax Year.

The final budget discussion topic was item C:

C: Discussion – FY 2027 Budget Board of Supervisors Final Mark Up/Mark Down

“EXPLANATION & SUMMARY: The Board of Supervisors will make any final modifications to the FY 2027 proposed budget before the scheduled public hearing.” — Well, not quite ‘final’ modifications with new meeting schedule in place.

At this final item’s outset Interim County Administrator Dr. David Martin, attired perhaps appropriately in a referee’s shirt (acknowleged at 0:4:04 video mark), also carrying a personal foul calling whistle, told the board members not to be intimidated by his appearance and offer their input as County staff and elected officials proceed toward a final budget submission forecast to be voted on, on April 22nd.

Pre-meeting Interim County Administrator, or should we say referee, David Martin told Supervisor Stanmeyer to play his game and not fear the ref’s whistle. Below, ref Martin and friends man the right side, at least from this angle, work session table.

Earlier in the work session to make sure all sides were on the same page in developing the budget, Dr. Martin told the board, “This budget was designed with three priorities: Public Safety — Fire & Rescue and the Sheriff — and Education.” (0:45:16 video mark)

After much discussion of variables, including adequate time legally to advertise for meeting topics, particularly of the coming April 14th Public Hearing on the FY-2027 Budget proposal, the following meeting schedule was forwarded for authorization to advertise:

1/ Friday, March 27, 5 p.m., Special Meeting/Work Session at the Warren County Government Center (WCGC);

2/ Tuesday, April 7, 1 p.m., Regular Meeting at the WCGC; 3 p.m. Closed Session;

3/ Tuesday, April 14, 6 p.m., Budget Public Hearing at the WCHS auditorium;

4/ Wednesday, April 22, 6 p.m., Budget Adoption vote at the WCGC;

The move of the public hearing on the budget to the high school was cited as increasing space for an expected LARGE turnout of the public to comment on what they have been presented by the county government.

It should be interesting to see how citizens who often want improved services from their municipal government, especially in public safety and the education of their children, react to being told there will have to be an increase in tax revenue to accommodate those departmental service needs in the coming budget cycle.

It wasn’t quite a packed WCGC main meeting room for this budget discussion as staff and board members surrounded the empty public seating. That’s expected to change come mid-April when the budget public hearing and final vote will be scheduled for the 14th and 22nd.

The first agenda item, presented by Human Resources Manager Kayla Darr, was on County staff Health Insurance rates. That presentation lasted only about three minutes with little, if any, board discussion of the new rates and processes for meeting them. Below is the agenda staff summary of the health insurance rate topic:

“A. Discussion – FY27 Health Insurance Rates (0:1:24 linked video mark)

“EXPLANATION & SUMMARY: Attached are the proposed health insurance renewal rates for FY27. The updated rates reflect adjustments to both employer and employee contributions to maintain the current cost-sharing structure. No changes to plan design or offerings are being proposed at this time.

“COST & FINANCING: Costs will be shared between the County and employees in accordance with the existing cost-sharing structure. The employer (County) portion of the increased cost will be absorbed within the FY-27 approved employee benefits budget. Employee contributions will be adjusted accordingly based on plan selection and coverage tier.”

At Tuesday’s meeting, a Closed Session was added to the agenda after the work session concluded. The motion into closed meeting read in part, “… for the discussion concerning a prospective business or industry or expansion of an existing business or industry where no previous announcement has been made of the business or industry’s interest in locating or expanding its facilities in the community. The properties are located on 0 Winchester Road …”

After two hours, even these budget talkers were ready to call it a night. Well, except for that closed meeting.

Upon the 5 p.m. work session’s adjournment at 7:05 p.m., the supervisors entered the closed session.

See the video referenced above for details and the supervisor’s specific comments on the status of the budget process moving forward.