Franklin County residents will have the opportunity to speak out April 14 on a proposal that would raise their taxes.
County supervisors last month agreed to advertise a potential 7-cent increase to the county's real estate tax rate and a 2% increase to the county's meals tax. If approved, the 7-cent hike would be the first significant tax increase since 2018, when supervisors approved a 6-cent increase to the real estate tax rate, which is levied per $100 of assessed value.
This proposal is more than double the 3-cent real estate tax increase suggested by Franklin County Administrator Steve Sandy during a presentation to supervisors last month. Coupled with the 2% meals tax increase, Sandy's suggestion would raise $4 million in recurring revenue for the county.
If supervisors go with the 7-cent increase instead of a lower number, Sandy says that and the meals tax increase would raise $8 million in recurring revenue.
Where the new money would go
In a phone interview with The Roanoke Times on Tuesday, Sandy said $3.2 million of increased county revenue will be designated to Franklin County Public Schools. While significant, it is below the $8.9 million the school requested to offset rising insurance costs and to complete phase three of the division's compensation plan.
The school division was also hit with a reduction of $2.3 million in state funding this year due to a change in Virginia's Local Composite Index formula, which measures localities' ability to pay based on property values and student population. This would be the second significant decrease in state funding for FCPS since 2024, when it was reduced by $3.7 million.
Sandy said the $3.2 million could be used to meet the school division's needs, such as funding a portion of the compensation plan, which has an estimated cost of $3.9 million. The plan would bring the pay structure of employees more in line with and more competitive with surrounding school divisions.
"We don't really dictate what the funds are used for," Sandy said of the school budget.
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Franklin County School Board Chairman Jeff Worley, left, and
Superintendent Kevin Siers listen to discussion during a joint
meeting with the Franklin County Board of Supervisors in
February.
The Roanoke Times, File
Schools account for more than 53% of the county's budget for the upcoming fiscal year. The second largest is law enforcement and public safety, which represents nearly 14% of the budget and a majority of what the remaining $800,000 in increased revenue would be used for. Those funds would be used to hire six new firefighter/EMTs for the county and pay for two new ambulances for the county, Sandy said.
The remaining additional funds would be used to hire a new employee for the parks and recreation department and provide a 3% cost of living increase for county staff.
Sandy said the county staff is waiting on guidance from the supervisors on how they would like to see increased revenue used. They are waiting to see where supervisors ultimately decide the rate to be before making any decisions.
"Hopefully we will get some kind of direction from them as they hone in on the rate," Sandy said.
Sales tax hike could fund CTE center
Supervisors have traditionally settled on a lower tax rate than the one advertised. A 2-cent increase to the real estate tax was advertised last year before supervisors voted to keep the rate flat. In 2018, supervisors advertised a 7-cent increase before agreeing to 6 cents.
Other large county purchases have not had a significant impact on the budget for the upcoming fiscal year, according to Sandy. The county is preparing to renovate the former Mod-U-Kraf building to become a new career and technical education center as well as a public safety and 911 dispatch headquarters.
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Officials plan to utilize the former Mod-U-Kraf property in
Rocky Mount as a new career and technical education building, plus
a public safety headquarters and 911 dispatch center.
The Roanoke Times, File 2025
Sandy said a possible way to fund the new center would be through the use of a 1% sales tax increase in the county. The Virginia General Assembly this session approved a bill to allow localities to approve a 1% sales tax through a referendum with the money going toward school construction or renovation.
If signed into law by Gov. Abigail Spanberger, supervisors could put the referendum on ballots for a vote this November. The move could provide an additional $8 million in revenue annually for school construction and renovation in Franklin County.
As for this year's budget, a public hearing will be held 6 p.m. Tuesday at the Franklin County Government Center. Residents will be allowed to give supervisors their opinion on the proposed budget.
The full Franklin County budget can be found online on the county's website at franklincountyva.org. Sandy said an entire breakdown of the budget can be downloaded.
"It's all in there," he said. "Accounting for the balanced budget. All the revenue that is proposed and all the expenses that go along with it."
Following the Tuesday public hearing, supervisors are scheduled to adopt a budget on April 21.