York County adopts $215M operating budget for FY27, holds property tax rate at $.78 (ANALYSIS)
Total budget reaches almost $315M counting capital improvements; budget raises prepared food and beverage from 4% to 6%, generating $4.8 million annually
York County’s Board of Supervisors unanimously adopted a $314.7 million budget for fiscal year 2027 on May 5, 2026, closing out a months-long process that balanced rising personnel costs and infrastructure demands against a commitment to hold property tax rates steady. The General Fund reached $215.2 million, a 7.5% increase over the prior year’s adopted budget of $200.2 million.
Tax Rates and Revenue
Real estate taxes remain the county’s largest revenue source at roughly 50% of the General Fund. Property in York County is assessed on a biennial (two-year) cycle, with the most recent reassessment taking place for calendar year 2026. The previous assessment was conducted for calendar year 2024, with those results becoming effective January 1, 2024. The 2026 reassessment saw overall assessed values increase by 11.4%, yet the Board held the real estate tax rate steady at $0.78 per $100 of assessed value and the personal property tax rate at $4.00 per $100.
Rather than raise property taxes to keep pace with growing costs, the county looked to diversify its revenue base. The meals tax was raised from 4% to 6% effective July 1, 2026, projected to generate $4.8 million annually. County officials noted the increase spreads the burden to tourists and visitors rather than placing it solely on residents. A $3 million portion of the FY2025 surplus was also applied toward the initial phase of the county’s compensation study, reducing the amount that needed to be funded through new revenue.
Employee Compensation and New Positions
The single largest driver of budget growth was employee compensation. A market study found that county pay lagged regional averages, and the budget responds with $8.2 million to raise compensation from the 50th to approximately the 70th percentile of the regional market. An additional $1.2 million covers rising health and dental insurance costs, with about 63% of those combined adjustments supporting public safety personnel. Beyond pay, the General Fund added six new positions to address growing operational demands, including a Drug Court Paralegal funded by opioid settlement dollars, a converted full-time Victim Advocate, a Human Resources Analyst, a Budget Analyst, a Library Assistant, and a Senior Appraiser.
Schools
On the education side, the York County School Division brought forward a $205.9 million operating budget, a 3.3% increase over the prior year. The division closed its budget gap through state and federal revenue growth and a $1.2 million increase in county support, without requesting additional local tax dollars.
Utilities and User Fees
To keep the county’s utility operations self-sustaining, enterprise fund fees were adjusted modestly. The bi-monthly solid waste fee rose from $70.00 to $72.00, and residential sewer rates increased from $54.00 to $57.00, the first sewer adjustment since 2021. The sewer increase is the opening step in a phased plan to eliminate the sewer fund’s reliance on meals tax subsidies by FY2031, freeing those dollars for capital investment.
Capital Improvements Program
The FY2027 through 2032 Capital Improvements Program was adopted alongside the operating budget. Prior to final adoption, the Board approved $6.47 million in adjustments, including $6 million accelerated into the Capital Project Funds for Yorktown Campus design and $467,000 added to the General Fund. Throughout, the county maintained its policy of capping debt service at 10% of General Fund expenditures, adjusting project timelines as needed to stay within that limit.
Other recent budget analysis:
The process behind the adopted budget began in fall 2025, with departments submitting requests subjected to both a bottom-up review by budget analysts and a zero-based review of incremental requests by the Finance Director and Budget Chief. The County Administrator presented the proposed budget on March 17, 2026, opening a public review phase that included work sessions, town halls, and listening sessions. Public hearings followed on April 21 before the Board’s unanimous vote on May 5. Below is a detailed review of the FY2027 budget process, the discussions, debates and decisions. The links will redirect to official YouTube videos of the meetings.
May 05 2026 — York County Adopts FY2027 Budget With Meals Tax Hike
FY2027 Budget Adopted Unanimously With 78-Cent Property Tax Rate Held Steady On May 5, 2026, the Board unanimously adopted the full FY2027 budget package in a series of votes. The real estate tax rate was held at $0.78 per $100 of assessed value and the personal property tax rate at $4.00 per $100, both unchanged. The meals tax was raised from 4% to 6% effective July 1, with the chair noting the increase spreads the burden to visitors and tourists rather than property owners. Residential sewer rates rose from $54.00 to $57.00, the first adjustment since 2021. The FY2027 through 2032 Capital Improvements Program was also adopted, bolstered by an additional $467,000 in revenue from meals tax adjustments, business license true-ups, and emissions tax revenues directed to the CIP.
The Board adopted proposed Resolution R26-48 approving the FY2027 budget for York County and the York County School Division. A Board member noted that an additional approximately $467,000 in revenue beyond the initial $2.4 million projection came from meals tax adjustments, business license true-ups, and emissions tax revenues, with those funds directed to the Capital Improvements Program. Watch from 16:44: https://link.williamsburgindependent.com/bRkuIN
Calendar Year 2026 Real Estate and Personal Property Tax Levies Approved Unchanged The Board unanimously adopted proposed Ordinance No. 26-9, setting the calendar year 2026 real estate tax rate at 78 cents per $100 of assessed value and the personal property tax rate at $4.00 per $100, both unchanged from the prior year. Watch from 15:53: https://link.williamsburgindependent.com/ZVZH9F
FY2027 Through 2032 Capital Improvements Program Adopted The Board adopted proposed Resolution R26-49, approving the FY2027 through 2032 Capital Improvements Program. The motion passed unanimously on roll call. Watch from 18:02: https://link.williamsburgindependent.com/ETv9O9
Sewer Rates Increased Under FY2027 Budget The Board unanimously adopted proposed Ordinance No. 26-6, amending Chapter 18.1 of the York County Code to increase sewer rates. The increase brings residential bi-monthly sewer rates up from $54.00 to $57.00, the first adjustment to the sewer rate since 2021. Watch from 23:10: https://link.williamsburgindependent.com/vFQfwB
Meals Tax Raised From 4 to 6 Percent Effective July 1 The Board unanimously adopted proposed Ordinance No. 26-8, raising the prepared food and beverage tax from 4 to 6 percent effective July 1, 2026. The chair explained that the 2-percent increase is equivalent to adding approximately 3 cents to the property tax rate, spreading the burden to visitors and tourists rather than placing it solely on property owners. Watch from 23:55: https://link.williamsburgindependent.com/wUi5YH
April 21 2026 — York County Board Debates FY2027 Budget Meals Tax Hike
On April 21, 2026, the Board held six public hearings on the proposed FY2027 budget with no votes taken, as final action was scheduled for May 5. The proposed budget held real estate and personal property tax rates steady while raising the meals tax from 4% to 6%, projected to generate $4.8 million annually. One resident raised concerns about the cumulative tax burden on families. The proposed sewer rate increase from $54.00 to $57.00 bi-monthly drew no public comment. Following the hearings, board members defended the budget's overall growth, noting that nearly 70% of expenditures cover public safety and schools, leaving limited room for reductions.
Meals Tax Increase From Four to Six Percent Draws Comment at Public Hearing The proposed budget holds real estate and personal property tax rates steady but raises the meals tax from four to six percent, projected to generate $4.8 million. One resident raised concerns about the cumulative tax burden on families. Watch from 2:06:13: https://link.williamsburgindependent.com/dj3Lw7
Board Defends Budget Despite Eight Percent Overall Increase Finance staff clarified the general fund increased approximately 7.3 percent, and all funds combined rose about eight percent. Board members emphasized that nearly 70 percent of expenditures cover public safety and schools, leaving limited room for reductions. Watch from 2:12:39: https://link.williamsburgindependent.com/yujt68
Sewer Rate Public Hearing Receives No Public Comment The proposed ordinance would raise residential sewer rates from $54.00 to $57.00 bi-monthly, reflecting the first adjustment since 2021 and the findings of a sewer rate study. Watch from 2:10:40: https://link.williamsburgindependent.com/sBwdv4
April 09 2026 — York County Board Reviews CIP Changes
The Board approved several adjustments to the Capital Improvements Program at the April 9 work session. The courthouse project was renamed Yorktown Campus Improvements, with $10 million accelerated to FY2027 for design and a $20 million construction placeholder added in FY2029. A fire station study was moved up to FY2028, with design funding for Fire Station 2 delayed to FY2030. The North County Library design phase shifted from FY2027 to FY2028 to align with the county’s library contract timeline. A proposed $400,000 Lightfoot small area plan consultant contract was reduced to a $100,000 placeholder after board members questioned spending on privately owned, commercially zoned property. Despite the accelerated funding and new placeholders, the revised CIP remained within the county’s 10% debt policy limit across the full six-year plan. The CIP covers infrastructure projects with a useful life of more than one year and a minimum cost of $30,000, funded through a mix of cash capital and debt financing.
CIP Updated to Accelerate Yorktown Campus Funding Staff presented adjustments to the Capital Improvements Program reflecting courthouse planning. The project was renamed Yorktown Campus Improvements, with $10 million accelerated to FY2027 for design work. Watch from 1:08:09: https://link.williamsburgindependent.com/9Qw9FD
North County Library Design Shifted to FY2028 Staff shifted the North County Library design phase from FY2027 to FY2028, citing the timeline of the county’s current contract with its library services provider. Watch from 1:25:48: https://link.williamsburgindependent.com/j8nKzS
April 07 2026 — York County FY2027 Budget Proposes Meals Tax Hike, Compensation Increases
FY2027 Budget: Community Agency Support Funding Staff presented the proposed FY2027 community agency support budget of $9.3 million, reflecting a $558,000 increase over FY2026. The bulk of the increase covers regional agreements for the jail, transit authority, and library. Watch from 1:26:47: https://link.williamsburgindependent.com/Ea7v4m
March 26 2026 — York County IT Budget Seeks New Staff Amid Rising Costs
IT Department Seeks Budget Increase for FY2027 The department’s proposed budget increase is driven by software cost inflation, Microsoft licensing increases, and a sharp rise in server virtualization costs. Watch from 0:14:08: https://link.williamsburgindependent.com/2mfR4n
Two New IT Positions Requested Staff requested two new general fund positions: a business applications technician and a database administrator with an AI automation focus to automate manual workflows across departments. Watch from 1:12:39: https://link.williamsburgindependent.com/id8nGX
Non-General Fund Positions Presented The proposed FY2027 budget includes five non-general fund positions: a family service specialist and benefits program supervisor for Social Services, a superintendent and specialist for the sewer utility, and an automotive service coordinator for vehicle maintenance. Watch from 1:17:55: https://link.williamsburgindependent.com/IGJAyL
March 24 2026 — York County Schools Seek $205 Million FY2027 Operating Budget
YCSD Proposes $205 Million FY2027 Operating Budget School officials presented a proposed FY2027 operating budget totaling just over $205 million, a 3.3% increase over the prior year. The budget relies on projected state and federal revenue increases, plus a $1.2 million increase in the local operating transfer from the County. Watch from 0:05:06: https://link.williamsburgindependent.com/KfolJk
Proposed 3.25% Pay Raise for School Staff The division is proposing a 3.25% average salary increase across all staff at a cost of just under $4 million. The proposal also includes targeted increases for custodians, bus assistants, and paraeducators. Watch from 0:49:00: https://link.williamsburgindependent.com/WlIyEy
March 19 2026 — York County Sewer Rate Study Proposes Commercial Fee Overhaul
Phased Rate Increases to Eliminate General Fund Subsidy by FY2031 Financial advisors outlined a plan to phase out the meals tax allocation to the sewer fund through incremental rate increases of approximately $2 to $3 per billing cycle annually. Eliminating the subsidy would free approximately $4.8 million annually to be redirected toward capital projects. Watch from 3:32:26: https://link.williamsburgindependent.com/tjonK7
March 17 2026 — York County FY2027 Budget Proposes Meals Tax Hike, No Rate Increase
FY27 General Fund Rises $14.6 Million The proposed FY2027 General Fund budget of $214 million is an increase of $14.6 million over the prior year. The largest driver is $8.2 million for a compensation study, with 63 percent supporting public safety personnel. Watch from 0:29:58: https://link.williamsburgindependent.com/q82oi6
Six New General Fund Positions Recommended The budget recommends six new positions: a drug court paralegal, positions in finance and human resources, a senior appraiser, and a library outreach position. Watch from 0:39:04: https://link.williamsburgindependent.com/PNdwXy
January 20 2026 — York County Budget Forum Previews FY2027 Spending Plan
FY2027 Budget Development Calendar Staff presented the FY2027 budget calendar, noting that the County Administrator is scheduled to propose the budget on March 17, with adoption targeted for May 5. Watch from 1:42:11:https://link.williamsburgindependent.com/RsYWsQ
A Williamsburg Independent editor used AI tools to help produce this analysis.
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