Henrico’s 2025-26 proposed budget: Tax relief, $50 million for water resiliency

HENRICO COUNTY, Va. (WRIC) -- Henrico County's proposed budget is coming into focus for the 2025-26 fiscal year. The current plan offers tax-rate cuts, as well as $50 million in funding towards strengthening the county's water system infrastructure.

Here are a few highlights from the proposal.

Tax relief for homeowners, businesses

According to the county, the tax-relief plan outlined in this proposed budget is the "most comprehensive, permanent tax relief" the county has seen "since 1987" -- almost 30 years.

This includes a reduction in tax rates for real estate as well as personal property. The current real estate tax rate of 85 cents per $100 of assessed value would be decreased to 83 cents.

Additionally, the county's personal property tax rate would drop from the current $3.40 for vehicles and $3.50 for business personal property to $3.35 for both.

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In terms of further tax relief, the county stated that around $18.3 million would be put towards "new tax relief," as described by the county -- including aid for older or disabled citizens.

Funding for utilities infrastructure, water systems

Although it has been proposed that $50 million be put towards water resiliency, that amount is subject to change.

There are several different improvement options that may be discussed -- not just by Henrico officials, but those with the City of Richmond -- following the city's water crisis that caused service disruptions in Henrico.

"We will make an initial $50 million investment to enhance the strength and resilience of this county's water infrastructure," said Henrico County Board of Supervisors chair Dan Schmitt.

Henrico County manager John Vithoulkas reiterated that the $50 million is just the start of a broader plan to improve the water system, indicating that more may be allocated as plans develop further.

"To be clear, the funding that is included in the capital budget represents only a down payment or a deposit on this effort," Vithoulkas said. "We recognize that more investment will be required of whatever solution is chosen."

The proposed budget plan will be officially presented to the Board of Supervisors on Tuesday, March 11. After several other steps, including legislative sessions and public hearings, if the budget is adopted it will take effect starting July 1.

For more details about the budget and to view the full proposed budget announcement, click here.