Soaring fuel prices will require Henrico County leaders to consider a $2.9 million adjustment to the budget for next year.

County Manager Virgil R. Hazelett told a Fairfield District audience last night that despite the nation's economic uncertainty, Henrico is well-prepared to serve its residents.

"The slowing economy, the concerns regarding inflation, housing and recession -- we all know what that can do to us, but we are very cautious in reference to our projections of revenues," Hazelett said.

About 30 people attended a meeting held by Fairfield District Supervisor Frank J. Thornton at Belmont Recreation Center on Hilliard Road.

During his "state of the county" presentation, Hazelett highlighted the county's successes, noting its comparatively low real estate tax rate and tax-relief program for elderly and permanently disabled residents.

He also provided updates on major school construction projects in Fairfield District, such as the completion of the new Harvie Elementary School that will open in the fall and a $14.6 million renovation of Fairfield Middle School, scheduled for completion in 2010. Funding for a $12.8 million renovation of Brookland Middle School is scheduled for 2009 and 2010.

School and county leaders plan to seek funding to cover additional construction costs for Fairfield Middle and other projects.

"Because of our concern for the school system and because of our concern for the future of Henrico County, we are ever mindful of the expenditures and will complete these projects on schedule," Hazelett said.

Other pending projects in Fairfield District include a replacement for Fire Station No. 7 on Laburnum Avenue, widening 1½ miles of Creighton Road from two lanes to four lanes, and the construction of a $14.4 million eastern area recreation center.

A survey conducted by the U.S. Postal Service asking county residents and businesses with "Richmond, VA" mailing addresses to switch to "Henrico, VA" also generated questions last night from several people whose ZIP codes were not surveyed because they are shared with addresses in the city of Richmond. Those residents referred to problems they have experienced because of having ZIP codes that overlap with areas of the city and result in higher insurance rates.

Hazelett responded that the power to change ZIP codes and post offices rests with the Postal Service, but he said the county will continue to pursue other changes for the benefit of its residents.

"If we are successful, I dare say you will probably see us making other attempts to correct what we believe are improper situations in reference to bills that our citizens in these overlapping ZIP codes may be paying in reference to automobile insurance and homeowner's insurance," Hazelett said. "This is not right, and we believe that if we move forward, we have the impetus to change these things, and to look not only to the Postal Service but also to our General Assembly."
Contact Melodie N. Martin at (804) 649-6290 or mmartin@timesdispatch.com.