Albemarle Supervisors briefed on climate funding, pay increases, and future direction for FY2027

The proposed budget for fiscal year 2026 recommended by Albemarle Executive Jeffrey Richardson is based on a four cent increase in the real property tax rate. On March 19, Supervisors agreed to advertise that rate and the increase in the personal property tax rate for the public hearing on April 23.

For fiscal year 2026, 80 percent of the new revenue raised will go toward public safety to pay for the cost of recently hire fire and rescue personnel as well as to hire six more police officers. Ten percent will go to affordable housing and ten percent goes to Albemarle County Public Schools.

The first question before the Board of Supervisors at their work session on March 12 was to provide direction on whether that formula should continue into the next fiscal year or whether something different should happen.

While elected officials can only make binding decisions on the current or next fiscal year, Albemarle budget staff have a five-year financial plan that helps track long-term planning. In this case, staff wanted an indication of how much money that would create for the five-year capital improvement program.

At this point, a decision had not yet been made about what rate to advertise and at least two Supervisors were not ready to give direction.

“I gotta think this through some more,” said Supervisor Ned Gallaway. “Plus I want to hear how, what reactions we get when we go out to the public and things like that as well.”

In the past, Supervisors can designate that revenue from a fraction of a cent can go toward a specific purpose. For instance, in 2014 the Board earmarked $0.007 to go to the county’s water resources fund. Supervisor Diantha McKeel said a decision about what to do in FY2027 might be better informed after a study is conducted on the county’s long-term public safety needs.

“Going back to that study is really going to be critical because that would inform this decision is what in my brain,” McKeel said.

However, McKeel is not running for re-election and will not be around for next year’s discussion.

Supervisor Ann Mallek said at one point there had been property tax revenue for the county’s Acquisitions of Conservation Easement program (ACE) but that was eliminated during the last recession.

Paying for people

The biggest item that local governments spend money on is in salaries and benefits for the people who do the work. Like any industry, localities compete for talent and both Albemarle County and Charlottesville have taken steps in recent years to try to retain personnel.

“The compensation philosophy for Albemarle county is to attract and retain quality employees while maintaining internal equity and external market competitiveness,” said Kristy Shifflet, chief operating officer in Albemarle County.

Shifflett said staff will receive a three percent cost of living increase, matching what the Commonwealth of Virginia will pay for positions it funds directly. This will cost $2.8 million.

Public safety employees will get another two percent increase, costing another $700,000.

“Starting pay for police officers and firefighters at entry level and this is just with no stipends or anything else, is $53,040 right now,” Shifflett said. “And that will move to $54,631.”

Spending on climate

At the public hearing on March 5, several speakers called for more spending to be made on climate action initiatives with one organization seeking $1 million in direct funding.

At the March 12 work session, assistant chief financial officer Andy Bowman gave an overview of what is in the recommended budget. He presented an image showing programs that are funded each year, examples of use of one-time money, as well as capital funding for projects.

Bowman said on-going funding includes the environmental services division which will be funded at $564,000 in FY2026.

“A pretty significant portion of that funding is about $100,000 annually for them to have operational flexibility to support various climate initiatives on a year to year basis,” Bowman said.

Albemarle also covers the operational cost of the Southern Convenience Center operated by the Rivanna Water and Sewer Authority. Bowman said the county has used surplus funding to help match a grant from Dominion Energy to build electric vehicle charging stations at the county’s office building at 401 McIntire Road.

“And we also have the Community Climate Action Program that’s been in place for two years,” Bowman said. “There’s been $100,000 each year where the county will receive applications from local groups to help those implement new climate strategies.”

If you want to see where those grants went, two stories for you:

• Albemarle County awards first set of climate protection grants, August 5, 2023
• Albemarle awards $100K in five more Community Climate Action grants, September 12, 2024

Bowman said there is a $250,000 reserve available to staff in the environmental division to implement programs. The FY26 budget also anticipates using $350,000 in one-time funds to a program to help property owners with septic systems to convert to the public sewer system.

While there is currently a vacant climate coordinator position, Bowman said the position is not being recommended for elimination.

Before you go: This story was originally published in the March 22, 2025 edition of Charlottesville Community Engagement from source material from March 12, 2025. One reason I hesitate to call this a “news” story is that it does take a while to get to the production. I am trying to reduce that time, but I’m a one-person operation at the moment.