AGENDA DATE: 10/7/2026
TITLE:
Title
Schedule a Public Hearing to Consider Adoption of an Uncodified Ordinance Establishing Temporary Rounding and Account-Adjustment Procedures for Cash Payments Due to the Reduced Availability of Pennies
BODY
SUBJECT/PROPOSAL/REQUEST: Request that the Board of Supervisors schedule a public hearing to consider an uncodified ordinance establishing temporary rounding and account-adjustment procedures for cash payments, necessitated by the reduced availability of pennies, consistent with authority granted under Virginia law.
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Herrick, Ruege, Sumner, Bowman, Matheny, Lane, Lenherr
PRESENTER (S): Jennifer Matheny
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The United States Mint ceased production of new circulating pennies on November 12, 2025. Although pennies remain legal tender, the lack of new production coupled with decreased use in everyday commerce has created shortages that increasingly affect the ability for businesses and governments to obtain pennies for cash transactions.
The County accepts cash payments at virtually all collection locations for taxes, fees, and services. As the supply of pennies diminishes and exact change becomes less reliably available, departments are experiencing challenges related to reconciliation, revenue accounting, and equitable treatment of customers.
In response, many states have adopted temporary legislation authorizing adjustments to bills and account balances when cash transactions are involved. The Virginia General Assembly enacted Chapter 713 of the 2026 Acts of Assembly, authorizing localities to adopt temporary ordinances to adjust bills and account balances for taxes and other charges paid in cash. Any such ordinance must expire no later than July 1, 2027. The General Assembly has directed the Department of Taxation to recommend a long-term uniform procedure prior to the 2027 Session.
Staff has prepared an uncodified ordinance for the Board’s consideration to address the local impact of the penny shortage while the state develops long-term guidance.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Staff recommends adopting the proposed temporary ordinance (Attachment A) to allow the Department of Finance and Budget to implement policies and procedures addressing the penny shortage. The ordinance would adopt two standardized approaches:
Rounding Process for cash transactions involving goods or services without an associated account:
- If the total transaction amount ends in one, two, three, or four cents, the amount would be rounded down to the nearest cent ending in zero.
- If the amount ends in six, seven, eight, or nine cents, it would be rounded down to the nearest cent ending in five.
Adjustment Process for cash payments associated with an account:
- The Rounding Process would be applied first.
- Once the transaction is completed, the account balance would be adjusted to zero to reflect the rounded payment, in accordance with Department of Finance and Budget procedures.
If adopted, the ordinance would take effect immediately and would remain in effect through July 1, 2027, unless rescinded sooner by the Board.
The proposed ordinance is legally compliant, customer-focused, and anticipated to have minimal budget impact. The prescribed rounding method would reduce or adjust amounts by no more than $0.04 per cash transaction.
BUDGET IMPACT: Staff anticipates minimal impact on County revenues for Fiscal Year 2027. The rounding method is expected to have an immaterial financial impact.
RECOMMENDATION:
Recommendation
Staff recommends that the Board schedule a public hearing to consider the attached proposed ordinance (Attachment A).
ATTACHMENTS:
A - Proposed Ordinance