AGENDA DATE: 4/22/2026
TITLE:
Title
Adoption of Calendar Year 2026 Tax Rates, Proposed Ordinance: Chapter 1, Article 5 (Fee Schedule), Fiscal Year (FY) 27 Budget, Borrowing Resolution, FY 27-31 Capital Improvements Plan (CIP), and Appropriation of the FY 27 Budget
BODY
SUBJECT/PROPOSAL/REQUEST: Request adoption of Calendar Year 2026 tax rates, Proposed Ordinance: Chapter 1, Article 5 (Fee Schedule), Fiscal Year (FY) 27 Budget, borrowing resolution, FY 27-31 Capital Improvements Plan (CIP), and appropriation of the FY 27 Budget
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Ruege, Sumner, Bowman, Malcolm, Davidson, Vinzant, Mitchell, Unsworth
PRESENTER (S): Andy Bowman, Katelyn Malcolm
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: At the April 22, 2026 Board meeting, staff will ask the Board to consider the following items:
1) Adoption of the Resolution to Set Calendar Year 2026 Tax Rates: The Board held public hearings on the proposed 2026 calendar year real estate and personal property tax rates on April 15, 2026. The 2026 calendar year real estate and personal property tax rates are for the year beginning January 1, 2026 and ending December 31, 2026.
2) Adoption of Proposed Ordinance: Chapter 1, Article 5 (Fee Schedule): The Board held a public hearing on a proposed ordinance to amend Albemarle County Code Chapter 1, Article 5 concerning Building Fees, Subdivision Fees, Water Protection Fees, Zoning Fees, and Miscellaneous Fees.
3) Adoption of the FY 27 Operating and Capital Budget: The Board held a public hearing on the Fiscal Year 2027 (FY 27) Proposed Budget on April 15, 2026. The budget presented for adoption includes the Board’s FY 26 Proposed Budget and Board of Supervisors amendments, and is for the fiscal year beginning July 1, 2026 and ending June 30, 2027.
4) Adoption of the Annual Resolution of Appropriations: To provide the authority from the Board to spend these funds, the Board’s adoption of an Annual Resolution of Appropriations for the fiscal year ending on June 30, 2027 is required.
5) Adoption of the Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing: In addition, the Board’s adoption of a Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing is required to provide the County with the authority to use bond proceeds to reimburse capital program expenditures for the specified projects.
6) Adoption of the FY 27 - 31 Capital Improvement Plan (CIP): This reflects the adopted FY 27 Capital Budget plus the out years of the plan, FY 28 - FY 31, reviewed with the Board of Supervisors during the budget development process. FY 28 - 31 will inform future long-range financial planning and are not requested for appropriation.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION:
1) Adoption of the Resolution to Set Calendar Year 2026 Tax Rates: The FY 27 budget is based on a real estate tax rate of $0.894 per $100 of assessed valuation and a personal property tax rate of $4.28 per $100 of assessed valuation, as set forth in Attachment A. The 2026 calendar year tax rates are for the year beginning January 1, 2026 and ending December 31, 2026.
2) Adoption of Proposed Ordinance: Chapter 1, Article 5 (Fee Schedule): The proposed amendments to Chapter 1, Article 5 are described in Attachment B and are consistent with the Board’s adopted Financial Management Policies. Revenue Policy 10(E) directs the County to impose user fees for specialized County services, when appropriate, based on the benefits or privileges provided or the cost of delivering those services. Fees should support the recovery of operational and capital debt service costs, consider equitable access, and be reviewed at least every three years. The proposed changes reflect cost-of-service increases since FY 2022 and are consistent with Revenue Policy 10(E). If adopted, the revised fees would take effect January 1, 2027. Six months under the updated structure are estimated to generate approximately $266,000 in additional revenue. This update is incorporated into the FY 27 Proposed Budget.
3) Adoption of the FY 27 Operating and Capital Budget: The FY 27 Budget for the Board’s approval is detailed in Attachment C and is based on the FY 27 Proposed Budget plus the adjustments detailed below:
Board of Supervisors Adjustments
All amounts in this executive summary and attachments reflect budget decisions made, and direction given through the April 15, 2026 budget public hearing. Through April 15, the Board has discussed and given staff direction on the following modifications, though they have not yet been formally approved by the Board:
Funding sources:
• Utilize $313,363 of the ongoing Reserve for Contingencies.
• Move $1,150,000 from the planned General Fund transfer to the Economic Development Fund
• Use the remaining balances from the one-time Reserve for Contingencies, $510,162 and the CIP Advancing Strategic Priorities Reserve, $393,705
Funding uses:
• Add $2,000,000 to the Affordable Housing Investment Fund (AHIF)
• Add $117,000 to the Albemarle County Emergency Relief Program (ACERP)
• Balance the remaining amount, $250,230 between the following priorities
• Fully funds FY 27 requests:
• Additional $76,253 for OAR-Therapeutic Docket
• Additional $32,473 for Foothills Child Advocacy
• Restores funding to FY 26 Adopted amount:
• Additional $3,000 for Charlottesville Band
• Additional $2,500 for Charlottesville Ballet
• Additional funding of $136,004 (remainder of the $250,230 referenced above) added to the Community CIP request from the Dogwood Vietnam Memorial Foundation
Public Schools Adjustments
All amounts in this executive summary and attachments reflect budget decisions made through the April 15, 2026 public hearing. The School Board is scheduled to adopt its budget on April 23, 2026.
4) Adoption of the Annual Resolution of Appropriations
The Resolution of Appropriations appropriates the total County Budget, including both County government and Public School operating and capital funds, Public School special revenue funds, and other County government funds appropriations in a single resolution (Attachment D). The Annual Resolution includes the following:
Board of Supervisors Adjustments
All amounts in this executive summary and attachments reflect budget decisions made, and direction given through the April 15, 2026 budget public hearing. For the resolutions attached to this executive summary, if the Board directs changes at the meeting, an alternative resolution(s) will be prepared at the April 22 meeting.
County Executive Authority
The appropriation resolution authorizes the County Executive to do the following, with all such transfers or distributions reported to the Board of Supervisors as part of the County’s quarterly financial report, in accordance with current practice:
A) administratively approve budget transfers of unencumbered funds of up to $500,000 per fund in the fiscal year from one classification, department, or project to another within the same fund;
B) allocate funding between the below-identified classifications and the appropriate budget line-items for expenditure:
Expenditure Classifications Eligible for Transfer Under this Resolution:
General Fund
- Business Process Optimization Reserve
- Climate Action Pool
- Reserve for Contingencies
- Salary and Benefits Reserve
Capital Funds
- Advancing Strategic Priorities Reserve in CIP
- Transportation Leveraging Fund
C) allocate salary lapse between the non-departmental lapse budget and the appropriate budget line-items;
D) administratively approve the carry-forward of outstanding grants and capital projects and programs from year to year;
E) close out Capital projects and transfer any unencumbered residual funds to the Capital Improvement Fund fund balance;
F) close out grant funds; including the transfer of any unencumbered residual funds to the appropriate fund’s fund balance.
G) administratively approve the carry-forward of outstanding balances up to $17,000,000 for estimated encumbered purchase orders.
H) Update for FY 27: Opioid Abatement Fund: Currently, once the Board of Supervisors appropriates Opioid Abatement Fund dollars, the Chief of Human Services recommends how the fund should be allocated to the County Executive for approval. Opioid Abatement Fund dollars are not expended without approval from the County Executive.
Staff recommends streamlining the process for utilizing Opioid Abatement Funds by authorizing the Chief of Human Services to approve expenditures of $99,999.99 or less from appropriated funds, provided that the expenditures are made in accordance with Opioid Abatement Fund requirements, without approval from County Executive. Expenditures of $100,000 or more will continue to follow the current approval process.
5) Adoption of the Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing: The Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing, Attachment E, allows the County to use bond proceeds to reimburse the County for capital program expenditures.
6) Adoption of the FY 27 - 31 Capital Improvement Plan (CIP), Attachment F: All amounts in the executive summary and attachments reflect budget decisions made, and direction given through the April 15, 2026 public hearing.
BUDGET IMPACT: Adoption of the budget, tax rates, and related ordinances by the Board will establish Fiscal Year 2027 Operating and Capital Budgets and Calendar Year 2026 tax rates and provide the authority for the Board to spend funds included in the budget. For the adoption of the Capital Improvement Plan, FY 28 - 31 will inform future long-range financial planning and are not requested for appropriation.
RECOMMENDATION:
Recommendation
Staff recommends that the Board:
1) Adopt the attached Resolution to Set Calendar Year 2026 Tax Rates (Attachment A);
2) Adopt the ordinance amending Chapter 1, Article 5 of the County Code (Fee Schedule) (Attachment B)
3) Adopt the attached FY 27 Budget Resolution approving the FY 27 Budget as recommended by the County Executive and amended by the Board of Supervisors (Attachment C);
4) Adopt the attached Annual Resolution of Appropriations (Attachment D);
5) Adopt the attached Resolution of Official Intent to Reimburse Expenditures with Proceeds of a Borrowing (Attachment E); and
6) Adopt the FY 27 - 31 Capital Improvement Plan (Attachment F).
If adjustments are desired during the meeting, changes will be made within the attached Resolutions prior to adoption.
ATTACHMENTS:
A - Resolution to Set Calendar Year 2026 Tax Rates
B - Ordinance to amend Chapter 1, Article 5 of the County Code (Fee Schedule)
C - Resolution to Adopt the FY 27 Operating and Capital Budget
D - Annual Resolution of Appropriations
E - Borrowing Resolution
F - Resolution to Adopt the FY 27 - 31 Capital Improvement Plan