05/12/2026
South Hill doing great things!
FOR IMMEDIATE RELEASE
Town of South Hill Adopts FY2026–2027
Budget Focused on Infrastructure, Public Safety, Economic Growth, and Tax Relief
SOUTH HILL, VIRGINIA — The South Hill Town Council has officially adopted the Town’s Fiscal Year 2026–2027 Budget, a forward-looking financial plan designed to strengthen infrastructure, support economic development, enhance public safety, and provide meaningful tax relief for residents.
The Town’s consolidated budget totals $46,246,492, including:
• $23,822,471 for the General Fund
• $21,940,021 for Water and Sewer Operations
• $4,000 for Cemetery Expenses
• $480,000 for the Nicks Lane Housing Rehabilitation Project
The adopted budget reflects Town Council’s continued commitment to responsible fiscal management while strategically investing in South Hill’s future growth and long-term sustainability.
One of the most significant measures included in the FY2026–2027 Budget is the elimination of the Town’s personal property tax on qualifying motor vehicles, commonly referred to as the “car tax.” Town Council voted to eliminate personal property taxation on motor vehicles, automobiles, motorcycles, and trucks under two tons.
“This budget reflects our commitment to investing in the future of South Hill while also providing direct financial relief to our residents,” said Town Manager Keli Reekes. “Council worked diligently to develop a balanced budget that prioritizes critical infrastructure improvements, while continuing to meet the needs of our growing community.”
While vehicle taxes will be eliminated for qualifying vehicles, personal property taxes will continue to be collected on all other tangible property as defined by the Code of Virginia, including business property and luxury property.
The FY2026–2027 Budget also prioritizes critical infrastructure improvements throughout the community. Key General Fund investments include continued street maintenance and transportation improvements along North and South Mecklenburg Avenue, helping improve roadway conditions.
In addition, the budget supports the design phase for the Town’s future Police Department facility, which will be located within the renovated Workforce Center building. The project represents an important investment in public safety services and modern facilities for law enforcement personnel.
“This budget demonstrates Council’s dedication to making thoughtful investments that benefit our residents today while preparing South Hill for the future,” said Mayor Mike Moody. “We are proud to provide tax relief to our citizens while continuing to improve infrastructure, support public safety, and create opportunities for economic growth and job creation.”
To help maintain the financial stability of the Water and Sewer Fund and support critical long-term infrastructure needs, the adopted budget also includes overdue increases to water and sewer rates. These adjustments will help balance the utility fund while ensuring the Town can continue making necessary investments into aging infrastructure, system expansion, and future economic development opportunities.
The adopted budget also includes several strategic water and sewer infrastructure investments intended to support future development and expand service capacity. Key initiatives include:
• Collaboration with Mecklenburg County to support industrial park development aimed at diversifying industry and creating new jobs;
• Extending sewer service to currently unserved areas along Plank Road; and
• Continued identification, assessment, and planning for future sewer expansion into additional unserved areas
“These infrastructure investments are essential to positioning South Hill for long-term success,” Reekes added. “From utility expansion to economic development partnerships, this budget lays the groundwork for continued growth while ensuring we maintain the high level of services our residents expect.”
The FY2026–2027 Budget will take effect July 1, 2026.
Residents seeking additional information regarding the adopted budget are encouraged to contact South Hill Town Hall or visit the Town’s website at southhillva.org.
