C
hesterfield County's proposed budget for the upcoming fiscal year aims to continue reducing the county's real estate tax rate and increasing its Business, Professional and Occupational License (BPOL) threshold. The $2.4 billion FY26 budget proposal includes a 1-cent reduction in the real estate tax rate, bringing it down to 89 cents per $100 of assessed value, and a $50,000 increase in the BPOL exemption threshold to $550,000.

    County officials unveiled the budget on Wednesday, citing economic uncertainty as a major challenge. County Administrator Joe Casey described the budget as an "austere approach" with a slow and steady pace, similar to stock-car racing. The county's operating budget is expected to grow at a slower rate than last year, with a 4.4% increase compared to the current FY25 budget.

    The proposed budget allocates $44 million in spending growth, including $15 million for new local funding for the school division. This will go towards items such as teacher raises and operating dollars for the Deep Creek Middle School. The budget also includes increased public safety compensation and tax relief measures for disabled residents.

    Starting salaries for police officers would be $60,145, while teachers would start at $55,047. The county has already decided to allocate a $15 million budget surplus from the current year towards a 5% credit on first-half 2025 real estate tax bills due in June.

    To control costs, Chesterfield officials have implemented various measures, including reducing departmental budgets by more than $7 million and not issuing any additional debt tied to its 2022 bond referendum. The county is also waiting to see how proposed reductions in federal funding might affect local programs.

    A key line item in the budget is an allocation of $426 million for a first phase of construction on a new water treatment plant on the Appomattox River, which would be the fourth water source for Chesterfield. Supervisors are expected to vote on adoption of the budget April 9, with a public hearing scheduled for March 26.