HENRICO COUNTY, Va. -- Henrico County is preparing adjustments for the current year's budget and revising the proposed budget for 2020-21 in anticipation of significant financial impacts from COVID-19.
Officials from county announced Thursday that they are bracing for sharp drops in revenue from sales, meals and occupancy taxes and will thus have to adjust the coming years budget.
Officials have imposed an immediate hiring freeze and instructed all agencies to suspend all discretionary spending. The county also has put on hold all unfunded capital projects.
Finance officials are now looking at a revised proposed budget that would be significantly less than the current year’s plan of $1.4 billion.
The proposed budget would likely not support additional positions or new initiatives and would allow limited cost increases, for example, for health care premiums and contributions to the Virginia Retirement System.
A revised proposed budget is expected to be presented to the Board of Supervisors in mid-April and a vote to adopt the budget is scheduled for Tuesday, April 28. Once approved, the budget will guide operating and capital spending for the year beginning July 1.
The board on March 24 approved several emergency ordinances to help residents and businesses navigate the economic downturn by having the county extend the payment deadlines, without penalty, for various taxes.