James City County’s proposed budget cuts the real estate tax, raises the meals tax

JAMES CITY – James City County Administrator Scott Stevens proposed a $413.1 million budget for fiscal year 2027 that would raise taxes on all meals prepared in the county but lower the real estate tax rate. 

Under the proposal, the real estate tax would be cut by 3 cents, from 83 cents to 80 cents per $100 of assessed valuation. 

The move comes after James City County residents pushed heavily for property tax relief during the last two budget cycles, citing financial strain created by recent assessment value hikes. 

While the proposed cut is welcome news to many property owners throughout the county, dining out could soon become more expensive throughout the Historic Triangle.

Stevens joined York County Administrator Mark Bellamy in proposing a 2% meals tax increase, raising it from 4% to 6%. Under Virginia law, 6% is the maximum meals tax rate allowed in any county. 

A state sales tax of 6% and a Historic Triangle tax of 1% are also tacked on to all prepared meals.

If the proposed budgets in James City and York counties are approved, the combined meals tax in both localities would increase to 13%, just slightly lower than the City of Williamsburg’s 13.5%.

James City County’s primary operating fund totals $281.5 million for fiscal year 2027, an increase of 6.8% over the prior year’s $263.7 million.

The personal property tax rate is recommended to remain at $4.00 per $100 valuation. 

While the proposed budget does not include the addition of any new employee positions, Stevens recommended reclassifying five positions, establishing career ladders and converting one full-time role to part-time. 

In his budget statement, Stevens said the proposal is designed to “provide the best level of service for longtime residents, as well as those who are new to our community.” 

The lion’s share of spending in the new budget is focused on construction and maintenance of the county’s facilities, efficiency improvements and funding for Williamsburg-James City County Schools.

“The County’s commitment to forward thinking and financial planning has provided us with a solid foundation as we face the opportunities and challenges of tomorrow,” Stevens said.

The county is contributing $4.3 million more to the school system compared to last year. 

Capital project spending totals $121.3 million in the upcoming fiscal year, which includes continued funding for construction of the new government center, construction of a new library branch within that center, creation of the Grove Community Park, renovations to the lobby at the Recreation Center and building maintenance and improvements.

Funding for school projects amounts $11.1 million. Though dozens of WJCC parents and students urged the board in the last two budget cycles to fund a VHSL lacrosse program, the proposed budget includes no funding for that request. Instead, the proposal calls for turf replacement at Jamestown High School’s Cooley Field.

The budget includes funding for numerous other projects, including the design of new classrooms for technical programs at Warhill High, roof replacement and HVAC design at Stonehouse Elementary School, a partial roof replacement at Jamestown High School and interior refurbishments at D.J Montague Elementary and Lois S. Hornsby Middle. Funding is allocated for new generators at Matoaka Elementary and Warhill High.

About $1,546,000 would be spent on bus replacements, while $456,000 would cover the addition of new buses.

The City of Williamsburg would kick in about 10% of the costs needed for the Cooley Field project, bus replacements and additions and division wide maintenance.

The costs of goods and services are projected to go up in the coming year, according to Stevens. Fee increases are proposed for ambulance transport services to offset changes in Medicare reimbursement rates. Rates will also go up for some parks and recreation program.

Recap

Core elements of the budget include:

• Increasing the meals tax rate by 2%, from 4% to 6%
• Dropping the real estate tax rate by 3 cents, from 83 cents per $100 valuation to 80 cents per $100 valuation
• Keeping the personal property tax rate in place, which is currently $4 per $100 of valuation
• Increasing fees for the county’s ambulance transport services and for some Parks and Recreation programs
• Increasing funding for WJCC Schools
• Converting one full-time position to part-time, but otherwise making no changes to the number of employee positions

What’s Next

County residents will have two opportunities to weigh in on the new budget, including: 

• April 9 at the James City County Government Center at 5:30 p.m. The meeting will feature an overview of the James City County and James City Service Authority FY2027 proposed budgets. An audience Q&A session will follow. Questions can be submitted ahead of the meeting by email.
• April 14 at the James City County Government Center at 5 p.m. The meeting will feature a public hearing on the FY2027 Proposed Budget during the Board of Supervisors’ regular meeting. Input can be submitted by email to board@jamescitycountyva.gov or by calling 757-253-6609 and leaving a message.

The James City County Government Center is located at 101 Mounts Bay Rd., Building F. 

The Board of Supervisors will discuss the budget during their business meeting on April 28 at 1 p.m. There will be no opportunities for public comment at that time. 

Budget adoption is scheduled for a vote by the Board of Supervisors at their May 12 regular meeting, which is scheduled for 5 p.m.

The full budget is available online for the public to review here.