Middleburg schedules public hearings on budget and 3% utility rate increase as revenues show early decline

The Middleburg Town Council has advertised public hearings for final budget adoption and for a proposed 3% increase to water and sewer rates, with hearings set for the council's next regular meeting.

Town staff told the council that early 2025 revenue results show a decline in meals-tax collections compared with the first quarter of 2024, and that staff will present April totals at the next meeting. The town also said representatives from the Salamander resort — the president and the managing director — will attend the next meeting to provide their perspective on demand and activity affecting local revenues.

Town Manager Danny Davis summarized the revenue situation: “I think it's indicative of what we've been seeing with some slowdown specifically in the meals tax. Speaking to different businesses, they've seen the same drop that we identified in our revenue update,” he said. Davis added that April looked busy but staff needs time to compare it to last year's numbers.

Staff noted that, by the Code of Virginia, the council must hold a public hearing on the budget and then adopt the budget at a meeting at least seven days later. The council included the budget document with a previously discussed Option 2 in the packet and said the public hearings will provide an opportunity for residents to comment on both the budget and the proposed 3% utility rate increase.

Council members expressed support for a cautious approach given the uncertain revenue trend. The council asked staff to present April meals-tax and transient-occupancy-tax numbers at the next meeting and confirmed the hearings will be on the agenda.