The Caroline County Board of Supervisors voted Tuesday night to advertise a six-cent tax increase to fund the Fiscal Year 2027 budget.
The 3-2 vote came after Vice Chair Jeff Sili, who was serving as chair with Clay Forehand absent, changed his previous vote that denied the increase.
Sili, Jeff Black of the Western Caroline District and Nancy Long of the Port Royal District voted in favor of raising the real estate tax rate from 52 cents per $100 of assessed value to 58 cents, which remains the lowest rate in the Fredericksburg area.
The board can still lower the tax rate once it’s advertised, but cannot raise it.
Reedy Church District Supervisor Reginald Underwood was in favor of a smaller increase, while Floyd Thomas of the Mattaponi District said he would like to see the rate stay the same.
Sili said he’s alarmed because the county’s population is growing, but revenue isn’t keeping pace. He initially voted against the increase to allow for more discussion. He expressed concern that Thomas and Underwood were adamant about keeping any increase to a minimum.
County Administrator Charles Culley noted that a 3-cent tax increase would fund raises in salary for the county’s public safety personnel, and a 4-cent hike would allow other county employees to receive pay increases.
Underwood said citizens should be concerned about the potential for a 6-cent increase. He said the board should’ve been more conservative in its approach when it comes to tax increases.
“You can’t get blood from a turnip,” Underwood said. “I think we have to be reasonable. I would like to increase if all things were neutral and we were not in an inflationary economic situation and the world wasn’t in the shape that it’s in. I could see increasing taxes maybe five, six cents.”
The county school division’s approved budget showed a $1.8 million shortfall in local funding. The budget that Culley put forward provides the schools with an additional $1 million.
Various county departments are hoping to add 24 positions, but the outcome of that request depends on the final tax rate decision.
“If we’re hiring more people and taking care of them, how can we do that without a reasonable increase?” Long said.
Long later added that Caroline cannot continue to expect the best employees while paying the least amount of money.
Culley provided a hopeful outlook regarding data center investment in the county. While the county is only projected to receive $295,881 in revenue in 2027, the numbers increase over the next several years. According to Davenport & Co. financial services, the county should take in more than $81 million over the next seven years. By 2034, the county should take in between $31.8 million and 43.3 million each year through 2045.
“By ‘35, you should have significant revenue coming in to be able to fund school projects, county projects, all the things you want to do,” Culley said.
