FAQs
What is the County doing to control costs during a turbulent economic time?
The County has actively worked to reduce expenses. Over the past two years, vacant positions were re-engineered, resulting in a net reduction of 3 positions, with ongoing staffing and efficiency studies to ensure resources match actual service demands.
For residents who need the most help, the budget preserves critical services, including 30 human services programs that cover shelters, food security, and emergency assistance. Long-term, the County is investing in economic development to diversify the tax base to reduce reliance on residential property taxes.
Why use the Budget Stabilization Reserve?
The County is using 0.5% of its 2% Budget Stabilization Reserve in FY27 and plans to use another 0.5% in FY28; the funds are being used exactly as intended. The Board of Supervisors established the reserve for challenging budget years, specifically to maintain current service levels during periods of revenue uncertainty with minimal changes to services. The two-year bridge (FY27 and FY28) is a deliberate, time-limited strategy. By FY29, the County projects a stronger revenue outlook as the tax base evolves and diversification strategies take effect. The County will prioritize refilling this reserve as new revenues come in.
What is the County's commitment to climate action?
The FY27 budget proposes $2.3M for water resources through a 0.7-cent real estate tax rate, $300k in one-time climate action funding, and $140k from the plastic bag tax, all directed toward environmental priorities. This builds on the County's Climate Action Plan and ongoing investments in stream health, stormwater management, and community resilience programs.
If public safety funding is going up, does that mean crime is increasing?
Violent crime has dropped, but overall calls for service have increased, largely driven by motor vehicle incidents and proactive police-initiated patrols. Fire Rescue volunteerism has also declined, shifting more responsibility to career staff. The investment is about meeting growing demand, not responding to rising crime.
Read the 2025 Albemarle County Police Department Annual Report to learn more.
What is the proposed funding for Albemarle County Public Schools?
This proposed budget supports a $20.7M increase in the Schools fund's operating expenses for FY27, bringing the total to $304.9M, a 7.3% increase from last year. This increase consists of $11.8M in state funding and $9M in local funding. The proposed increase is consistent with a 10-year average for school funding increases and includes funding to open two new schools in FY27.
In addition to the operating funds, $6.4M is being allocated to the Capital Improvements Program as a placeholder for future capital needs or as a reserve should state funding decrease in the next cycle (as we’ve seen it do over the years). The Board of Supervisors will determine the specific use in the future.
What is the proposed change to the personal property tax, and why?
The proposed budget includes a 15-cent increase to the personal property tax rate, bringing it from $4.28 to $4.43 per $100 of assessed value, if approved. This increase is dedicated to the Affordable Housing Investment Fund. For most residents, this tax applies to their vehicles, which make up 84% of personal property tax revenue. The practical impact depends on a vehicle's assessed value. This should not be confused with the real estate property tax rate, which remains the same from last year.
The dedicated 15-cent tax rate will generate approximately $1.7M annually for affordable housing. Combined with a dedicated 0.4-cent of the existing real estate tax rate ($1.3M) and a one-time investment of $4.5M, the total FY27 contribution to the Affordable Housing Investment Fund is $7.5M.
What is the revenue sharing agreement with Charlottesville, and can it be discontinued?
The Revenue Sharing Agreement is a legally binding contract signed in 1982, under which Albemarle County agreed to share a portion of its property tax revenue with the City of Charlottesville in exchange for permanent protection against annexation of County land. The FY27 payment is $21.9 M.
The agreement can be discontinued only under three specific conditions: the City and County are consolidated into a single political subdivision; state law is amended to make City real property part of the County tax base; or both the City and County mutually agree to cancel or modify it. The County cannot exit the agreement unilaterally.