York County Releases Proposed Budget for Fiscal Year 2026, Balancing Fiscal Responsibility and Taxpayer Relief

March 19, 2025 

The proposed FY 2026 budget totals $288 million across multiple funds, including the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Internal Service Funds, and Enterprise Funds. 

This year’s budget development has been particularly challenging due to minimal revenue growth, inflationary cost increases, and ongoing federal economic uncertainties.

“With our region’s high concentration of federal employees, changes in tariffs, federal spending, and employment policies significantly impact our local economy,” said York County Administrator, Mark Bellamy. “Despite our efforts to limit expenditures and implement county-wide reductions, projected revenues are not sufficient to meet essential needs.”

To close the budget gap, the proposed budget includes a 4-cent increase in the Real Estate Tax rate to $0.78, and a 20-cent increase in the Personal Property Tax rate to $4.00, generating $6.4 million in additional revenue. This marks the first real estate tax rate increase in nine years.

York County has maintained one of the lowest real estate tax rates in the region, reducing the rate in 2022, 2023, and 2024 while also reducing the personal property tax rate in 2023 and 2024 and eliminating the annual vehicle license fee. These tax cuts have saved residents an average of $600 over the past three years but have resulted in a cumulative revenue loss of nearly $22 million. Additional tax relief programs include:

·      Real Estate Tax Relief for the Elderly & Disabled – $0.4M

·      Real Estate Tax Relief for Disabled Veterans – $4.5M

·      Personal Property Vehicle Exemption for Disabled Veterans – $1.3M

·      Solid Waste Rate Reduction for the Elderly – $0.4M 

Despite these relief measures, rising operational costs, economic uncertainties, and increased demand for services have made modest tax adjustments necessary to maintain York County’s financial health.

“Maintaining a quality workforce and reliable services for our residents is a top priority,” Mr. Bellamy explained. “These adjustments are necessary to ensure the long-term financial stability of York County while continuing to provide essential services.”

Investments in Key Priorities 

The proposed budget prioritizes funding for essential services and infrastructure, including: 

·      Employee Compensation & Retention ($2.5M) – A 4% general wage increase plus a $500 adjustment for eligible employees to attract and retain a qualified workforce.

·      Public Safety Enhancements ($2.4M) – Funding for Fire and Life Safety, Sheriff’s Office, and Emergency Communications, including new positions, technology support, and increased overtime allocations.

·      Education Support ($1.0M) – A $1 million increase in local school funding to help address compensation, enrollment growth, and student needs.

·      Operational & Infrastructure Costs ($1.3M) – Addressing rising costs in vehicle maintenance, supplies, and contractual services, as well as increasing mowing frequency and expanding library e-book subscriptions.

·      External Agency Support ($0.8M) – Increased funding for partner organizations such as the Virginia Peninsula Regional Jail, Williamsburg Area Transit Authority, and Williamsburg Regional Library.

·      Capital Improvement Program ($50M in FY 2026) – Investments in infrastructure maintenance, school renovations, and facility upgrades to meet current and future community needs. 

Public Engagement & Next Steps 

Tax rates are set annually by ordinance and require a public hearing. While tax rates can be lowered from the advertised rate, they cannot be increased. To provide the Board with flexibility to make adjustments, the real estate tax rate public hearing notice has been set at $0.80, which is 2 cents higher than the proposed rate.
York County residents are encouraged to participate in the budget process. Two town hall meetings will be held to allow for public comments and discussion, followed by a formal public hearing before the Board votes on the final budget. Additional budget work sessions will provide the Board with opportunities to further review and discuss key priorities.

“This budget strikes a balance between fiscal responsibility and our commitment to provide high-quality services to residents,” said Mr. Bellamy. “I look forward to working with the Board and the community to finalize a plan that best serves York County.” 

For more information on the FY 2026 Proposed Budget, visit yorkcounty.gov/budget or contact bos@yorkcounty.gov.