Hanover County’s proposed 2026 budget to reportedly increase average residential bill

HANOVER COUNTY, Va. (WRIC) -- Hanover County has announced its proposed budget for fiscal year 2026, which includes a suggested increase in water and sewer fees.

On Wednesday, Feb. 26, Hanover County Administrator John Budesky presented the proposed 2026 fiscal year budget to the Board of Supervisors, which will be a $413 million general fund budget that will reportedly focus on strengthening schools, enhancing public safety and investing in critical infrastructure.

The county said the proposed budget will keep Hanover’s longstanding property tax rate at 81 cents per $100 assessed value, which is reportedly the lowest in the region.

“Our budget reflects the needs and priorities of our residents,” Budesky said. “We remain committed to making thoughtful investments that ensure Hanover continues to be a great place to live, work and raise a family.”

8News has listed the key points in Hanover County's proposed budget for fiscal year 2026.

Proposed water and sewer fees to drive up residential bills

According to the county, the Department of Public Utilities has a $57.9 million budget for 2026 and a planned five-year capital investment of $196 million.

Officials said a proposed 5% increase in water and sewer fees will result in an average residential bill increase of $7.84 bimonthly, which will support infrastructure resilience and reliability.

This comes after the Richmond area water crisis, in which Hanover County residents experienced little to no water flow after Richmond's city reservoir system malfunctioned in January.

Investments in education and public safety

According to the county, nearly 60% of the general fund budget will be dedicated to education and public safety in the following ways:

• Local funding for Hanover County Public Schools operating fund will increase by $9.8 million, or by 8%, supporting cost-of-living pay increases and improvements to the teacher salary scale. Teachers will reportedly receive an average salary increase of 6.8%.
• The budget will fund new positions in Animal Protection, Court Services and the Commonwealth’s Attorney’s Office. It includes $250,000 for an animal shelter feasibility study.

Tax relief and essential services for 'vulnerable' residents

Hanover County said it remains committed to supporting its most vulnerable residents and will increase funding to support existing tax relief programs for the elderly and disabled to $4.7 million.

Additionally, the Community Services Board budget will rise to $17.6 million to enhance services for residents with mental health, developmental disabilities and substance use disorders.

Modernizing infrastructure

Officials said the county's five-year Capital Improvements Program will focus on long-term investments in schools, public safety and transportation in the following ways:

• School Construction: The plan includes funding to replace Mechanicsville Elementary School in fiscal year 2028 and develop a new campus-style elementary school by 2030. An additional $8.5 million will expand The Hanover Center for Trades and Technology in 2026.
• Public Safety Facilities: $60 million is budgeted for a new Public Safety Building at the Courthouse Complex to accommodate the growing needs of the Sheriff’s Office and Fire-EMS.
• Transportation: The plan earmarks nearly $160 million for road improvements over the next five years.
• Parks and Recreation: $11.1 million is allocated for park facility and equipment upgrades, including $3.9 million in fiscal year 2026. Improvements will be made to parking areas, athletic fields, playgrounds and pickleball courts.

Supporting the workforce

Hanover's proposed budget for fiscal year 2026 includes a 3% merit-based salary increase and will continue to cover a significant portion of employee health insurance costs to "remain competitive in attracting and retaining talent."

Officials said additional staffing is allocated to Community Resources, Human Resources and the Community Services Board to meet the county’s evolving operational needs.

Driving economic growth

According to the proposed budget, the county will be launching a $350,000 tourism initiative funded by existing lodging tax revenue to boost economic development and tourism, which will include hiring two positions focused on promoting tourism and sports initiatives.

Additionally, the county said small area plans will guide economic growth while "preserving community character."

Encouraging community engagement

According to the county, residents are encouraged to share their input at the budget public hearing at 6 p.m. on Wednesday, April 2.

The Board is slated to vote on the proposed budget during its meeting at 2 p.m. on Wednesday, April 9.

“This process is about listening and responding to our community,” Budesky said. “We are focused on responsible financial stewardship while investing in initiatives that make a real difference in the lives of our residents.”