Dahl recommends Fluvanna budget for FY26 based on real property tax rate decrease

Real estate assessments in Fluvanna increased by 25 percent for this year, but the proposed $115.1 million budget for fiscal year 2026 from County Administrator Eric Dahl is based on a reduction in the real property tax rates.

“My budget is based upon a real estate tax rate of $0.72 [per $100 of assessed value],” Dahl said at a meeting of the Board of Supervisors on February 18. (review the budget book for FY2026)

That’s a reduction from the current rate of $0.844 per $100 of assessed values.

Assessments in Fluvanna County were updated this year and the average value increased by about 25 percent. With that increase, what’s known as the equalized-rate dropped to $0.689 to bring in the same amount of revenue as fiscal year 2025. That means that Dahl’s budget still means an increased tax payment for more property owners.

“What my budget proposal does is it results in a four and a half percent [tax] increase,” Dahl said.

The personal property tax will remain at $4.10 per $100 of assessed value. No other tax rates were adjusted.

Dahl said one of the drivers in the budget is the recent creation of a new Department of Emergency Service. There have also been new requests for additional deputies for the Sheriff’s Office. He also noted inflation is currently at an annual rate of three percent which increases the costs of doing business.

“The overall increase in county expenditures is a little over $4.1 million, which reflects a 3.7 percent increase from the FY25 amended budget,” Dahl said.

That includes a $228,000 increase that will allow for one additional deputy and two promotions. There’s additional $248,000 tied to the new emergency services department to cover a fire chief position. Fluvanna’s share of debt service for the James River Water Authority increased by $375,000.

“Social services is reflecting an $109,000 increase primarily due to in my budget proposal I have included one new position for a family services specialist and then they also are showing some increases in public assistance programs,” Dahl said.

The recommended budget also includes a three percent cost of living increase for all county employees.

Earlier in the meeting, the Board had a discussion about the steep increase in assessments, which had not been conducted since 2023.

“We are still facing a housing market that is, you know, very hot in the sense and especially in certain types of homes,” said Rivanna District Supervisor Tony O’Brien.

The median sales price for a home in Fluvanna County in the final quarter of 2024 was $370,000 according to data compiled by the Charlottesville Albemarle Association of Realtors.

There is a budget work session scheduled for 5:30 p.m. in the Morris Room today. This is the deadline to set the maximum real estate tax rate for the public hearing. There will be a budget work session each Wednesday until April 23 when a meeting to adopt the budget is expected to be held. The public hearing on the real estate tax rate and the public hearing on the budget are scheduled for April 9.

Before you go: This post was originally published in the February 26, 2025 edition of Charlottesville Community Engagement, a newsletter powered by Substack since July 2020. The idea is to get as many stories out as possible each day, and then some of the material ends up here. Sometimes stories are posted here first. All of this is an experiment powered by Town Crier Productions, currently a one-person company that seeks to be as prolific as possible.