Williamsburg council adopts FY26 budget and new water rates; council delays votes on lodging and meals tax increases

The Williamsburg City Council on May 8 adopted Resolution 25‑07 setting the city’s fiscal year 2026 budget and approved Ordinance 25‑05 to establish higher water rates, while postponing decisions on proposed lodging and meals tax ordinances until Jan. 8, 2026.

The budget resolution—approved by unanimous roll call—reflects the package the council debated in recent weeks and includes capital and operating items that drew extended public comment. “The real estate tax revenue year to date is at 56% of budget,” Finance Director Tammerin (presented as Miss Damron in the meeting) told the council as she reviewed revenues, adding the city’s meals tax was at 73% of budget and room tax activity had declined year to date compared with 2024.

Why it matters: the budget and the water-rate vote affect household and business bills and fund core services such as public safety, utilities and parks. Restaurant owners and the Williamsburg Area Restaurant Association (WARA) urged the council not to raise the meals tax, saying a higher rate would further squeeze businesses still…