Supervisors decided to hold off on spending the money until a full audit is completed in December. That could leave $6.6 million in the pocket of a new incoming board in January.

“Stafford is in the best financial shape in its history,” Supervisor Mark Dudenhefer said. He touted efforts by staff and elected officials to cut costs and steer the county toward better budget practices and an improved credit rating.

More than half of the surplus came from an increase in personal property tax revenue. That tax, mainly on cars, generated nearly $4 million more than anticipated during the fiscal year that ended in June. Budget Division Director Nancy Collins said that the revenue increase was due to an influx of new cars to Stafford during the fiscal year. Those new vehicles had higher values, and were therefore subject to higher tax bills.

An additional $1.6 million came from better-than-anticipated real estate tax revenue, while about $600,000 came from increased revenue from taxes on utility companies.

“We estimate revenues conservatively,” Collins said.

Stafford officials anticipate having a surplus even after fully funding a number of reserve funds that were set up to strengthen the county’s financial outlook. Dudenhefer said that those reserve funds “are overflowing.”

The hope is that those funds will not only buffer the county from future economic problems, but serve notice to financial ratings agencies that the county is on firm economic footing. That could translate into higher bond ratings and lower interest rates on borrowed money.

In addition to the county surplus, School Superintendent Randy Bridges said that the county can expect the schools to return $3.2 million in unspent funds. County officials have already authorized the school board to use $2.8 million of that money on one-time expenses, including buses and computers.

Although the supervisors did not make any decisions Tuesday night on how to use the surplus, Collins did give them some suggestions. She proposed increasing the revenue stabilization reserve, paying off high-interest debt and setting aside cash for pay-as-you-go parks infrastructure projects. Supervisors will likely take up those suggestions in January.

“It’s a good time for us to think about strengthening our financial policies,” she said.

Jonas Beals: 540/368-5036

jbeals@freelancestar.com