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The costs are going up and as a result, the budget has to increase as well. That’s why the Town of Kenbridge is looking at an increased general fund budget of $1.462 million, compared to this year’s $1.39 million. A public hearing on the budget is set for mid-June, as town officials look to balance things out. 

There are four major areas where increased costs hit the town hard. First and foremost, Kenbridge is dealing with the same issue that Farmville and other towns across the region have encountered this year. The cost of health insurance is climbing. Farmville, for example, went from an expected surplus to a sudden shortfall when the health insurance costs came in. The way it works is that Kenbridge, like many other small towns and cities across Virginia, buys their health insurance through the state. This allows smaller operations to have more buying power. The rate varies based on the tier that you’re placed in. 

Those with 100 employees or more on the health insurance are projected to see a 1.6% increase in the cost of health insurance. Those towns below 100, like Kenbridge, Farmville, Victoria and others in the region, are seeing a 12% increase. So right there, without looking at any other part of the budget, more money is needed to offer the same level of service. 

The up and down price of gasoline also had an impact on the proposed budget, with Kenbridge Town Manager Tony Matthews expecting an 8% increase in fuel charges. He’s also projecting a 5% increase in propane expenses, to heat the town offices during the winter. And the last of the major increases comes at the Kenbridge wastewater and water plants, where costs will go up by $10,000 to handle renovations and needed equipment replacements. 

Bidding contracts out hasn’t helped

Matthews stressed that while the town bids out the services to providers, these bid prices often have increased with the price of goods and services. 

“We have to have these services from our vendors to provide the services to our citizens,” Matthews said. “We do our best to cover these costs without having to increase any line item more than necessary.”

One of the biggest year-over-year number spikes comes in the street department. For the current budget year, Kenbridge budgeted $337,259 for the street department. For the proposed budget, Kenbridge has $400,575 budgeted. The reason is that up until now, Meridian had not been charging the town for commercial trash collection. Kenbridge has been informed for the new budget year, that will change, hence the almost $70,000 increase in the street budget. 

The police department will see a slight bump if this budget is approved, going from $369,836 to $378,346. On the other hand, emergency services will see a drop in the proposed budget, going from $140,954 to $128,904. 

So what’s funding this increase? The biggest part comes from $624,243 in real estate, personal property and machine and tools tax revenue. That would be up from $579, 029. The second highest part of the budget comes from garbage fees. That stands at $164,300 in the projections, up from $144,000 budgeted this year. The third biggest revenue driver for Kenbridge comes in the form of business licenses. The cost for that stood at $139,452 budgeted for this year. There would be less in this proposed budget, when it comes to businesses. It’s expected to bring in $122,690. 

When is the Kenbridge hearing? 

The public hearing for this proposed budget is set for Tuesday, June 17, starting at 6:50 p.m. 

The budgetary changes will take effect in roughly two months. The increases will take effect during the new cycle beginning July 1, 2025 and running through June 30, 2026. Matthews encouraged residents with additional questions about the budget to reach out to the Kenbridge Town Office at 434-676-2452. 

Editor’s note: Reporter Nate Pentecost also contributed to this story.