Albemarle County Board of Supervisors FY2027 Budget Work Session - March 11, 2026

On Wednesday, March 11, 2026, at 5:00 PM in Room 241, the Albemarle County Board of Supervisors held the second of five budget work sessions for the FY2027 operating and capital budget. The session was chaired by Supervisor Ned L. Gallaway (Rio District) and attended by all supervisors. Staff presentations covered non-departmental expenditures, public works, health and welfare (including the Affordable Housing Fund and Human Services Funding Process), parks/recreation/culture, community development (including transit and the Economic Development Fund), and administration. An action item to correct a parcel number in the Premier Circle Phase 2 revitalization area designation was also considered. The meeting included extensive board discussion, staff clarifications, and identification of items for future consideration. The board adjourned to March 16, 2026, at 5:00 PM.

Discussion Items

• Non-Departmental (Andy Bowman): Reviewed the revenue sharing agreement with Charlottesville ($21.9 million, up 8.5% from FY26, driven by two-year lag in tax base and city rate increases), the transfer to public schools ($9 million increase recommended, with $6.4 million redirected to a CIP placeholder instead of the formula-driven $15.4 million), and the allocation of shared revenue formula (54% schools, 36% county, 10% debt/CIP). Staff explained the rationale for the school funding adjustment, including unique state revenue growth ($14.8 million in state changes) and the opening of two new schools. The elderly/disabled tax relief program increases to $2.3 million (half a million increase). Re-engineering savings of $1.1 million were highlighted, with 18 positions eliminated (primarily in non-public safety areas) and 15 added (police, sheriff, SROs). The reserve for contingencies is $911,000.

• Public Works (Kate Malcolm): This 3% of the general fund ($14.1 million) covers facilities, environmental services, and the Rivanna Solid Waste Authority (RSWA). A $300,000 one-time addition to the Climate Action Fund was noted. The plastic bag tax revenue is projected at $140,000, with over $440,000 collected since FY23, funding litter cleanup (over 1,023 miles, 3,932 bags of trash from Dec 2024 to Dec 2025). The RSWA fee increase will be on the next consent agenda.

• Health and Welfare (Kate Malcolm): This 7% of the general fund ($35.4 million) includes health/human services, the Affordable Housing Fund (AHF), and human services funding process agencies. The AHF is recommended at $5 million (same as FY26), with $1.3 million recurring (from 0.4 cents tax rate) and $3.7 million one-time. Since FY19, $22 million invested has created/preserved over 1,700 affordable units, served 280 domestic violence victims, and 539 homeless individuals. The Charlottesville-Albemarle Health Department increase (8%) includes picking up two positions losing federal funding (disease investigation specialist and senior epidemiologist). Region 10's increase ($291,000) includes $234,000 to replace lost federal funding for permanent supportive housing. The Human Services Funding Process funds 29 programs at $1.6 million total (up 7.2%). The process uses four priority criteria (family homelessness, adolescent mental health, community safety, navigation for seniors) and a tier system. Board members raised concerns about long-term AHF planning, duplication among agencies, and the predictability of funding for nonprofits.

• Community Development (Kate Malcolm): This 4% of the general fund ($20.2 million) includes the community development department, transit contributions, and economic development. The Economic Development Fund gets $4.15 million in one-time funding, bringing the total to nearly $5 million (with $0.8 million unallocated in FY26). Transit contributions: Charlottesville Area Transit (CAT) increases by $562,000 (21%) for 10 new operators to improve frequency on county routes (routes 5 and 7 will see 15-minute service). MicroCAT is fully funded at $1.4 million; staff recommended introducing fares ($2 base, $1 for additional passengers) mid-year to generate $80,000 in revenue and improve efficiency. Jaunt is level-funded at $3.5 million. Board members questioned the ratio of county benefit to cost for CAT and the impact of fares on low-income riders.

• Parks, Recreation, and Culture (Kate Malcolm): This 3% of the general fund ($13.5 million) includes parks and recreation department, Jefferson-Madison Regional Library (increase of $470,000 or 8%), and Charlottesville-Albemarle Convention and Visitors Bureau (slight decrease of $17,000 due to formula). Cultural arts and festivals funding totals $82,500 for 12 agencies. Board members emphasized focusing on county-based events and requested data on economic return on investment.

• Administration (Kate Malcolm): This 6% of the general fund ($31.4 million) includes IT, finance, human resources, county attorney, executive leadership, board office, and voter registration/elections. IT increases $884,000 (8.9%) for contracts, cybersecurity, ADA compliance, and new software. Voter registration/elections increase $143,000 for the 2027 election cycle. All other departments have a net decrease of $40,000.

Key Outcomes

• Action Item – Premier Circle Phase 2 Revitalization Area Designation: Unanimously approved (6-0) a corrected resolution (March 11, 2026) to replace the March 4, 2026 version, with a corrected tax map parcel number. This was necessary for Piedmont Housing Alliance's low-income housing tax credit application due March 12, 2026.

• Parking Lot Items: Several items were noted for future consideration, including: additional affordable housing funding beyond the current $5 million, potential long-term funding trajectory for the Affordable Housing Fund, possible additional funding for therapeutic docket, evaluation of duplication among human services agencies, and consideration of fare structures for MicroCAT.

• Next Steps: The next work session is a joint session with the School Board on March 16, 2026, at 5:00 PM in Room 241, covering the school operating budget, CIP, and debt. The maximum tax rate must be proposed by March 18, 2026. Town halls are scheduled per magisterial district, and the final budget approval is set for April 22, 2026.