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 recovering from pandemic-era losses.

During open forum, restaurateurs and industry representatives repeatedly warned that higher meal and lodging taxes would reduce customer spending and visitation. Noreen Graziano, president of the Williamsburg Area Restaurant Association, told council, “A 30% increase in the meals tax is unacceptable,” arguing the proposal would disproportionately affect local restaurants that operate on thin margins. Multiple restaurant owners and WARA’s executive director Rachel Sears said small, locally owned establishments face rising food and labor costs and cannot absorb additional tax burdens.

Council members responded to public input and to internal budget-review work. Several councilmembers said they had pushed staff to reduce proposed spending and that the version the council adopted reflected cuts negotiated during recent work sessions. Vice Mayor Dent and others noted the council pared roughly $9 million from earlier proposals through those conversations.

On the water rate, business owner Mickey Chohan cited a proposed change from about $5.30 to $6.89 per 1,000 gallons—a $1.59 increase he characterized as roughly 30%—and warned of the effect on local businesses. The council approved Ordinance 25‑05 (motion seconded and passed by roll call) with the stated purpose of funding improvements and modernization of the city water system; the ordinance text and staff materials set the new rates and the council adopted the ordinance as presented.

Council action and votes: - Resolution 25‑07 (adopt FY26 budget): adopted by roll call (Miss Williams, Miss Ramsey, Mayor Ponds, Vice Mayor Dent, Miss Kernshear/Currenscher (recorded as Aye)). - Ordinance 25‑05 (new water rates): adopted by roll call (unanimous Aye). - Ordinance 25‑02 (transient lodging tax and food preparation tax): motion to postpone adoption carried; ordinance postponed to Jan. 8, 2026 (unanimous Aye on motion to postpone). - Ordinance 25‑03 (meals tax increase): motion to postpone adoption carried; ordinance postponed to Jan. 8, 2026 (unanimous Aye on motion to postpone).

Discussion vs. decision: council adopted the budget and the water-rate ordinance (formal actions). The council declined to take final votes on the lodging and meals tax ordinances, instead postponing those items to allow additional time and public input. Much of the public comment was discussion and advocacy rather than direction; council members said they would continue to refine spending and implementation details in the months ahead.

What comes next: the two tax ordinances will return to council on Jan. 8, 2026. Staff will implement the adopted water-rate ordinance per its mailed/posted schedule and will continue to report revenue and expenditure variances to council. Councilmembers also signaled continued review of large capital projects included in the adopted plan (for example, library planning and the comprehensive plan update), with the possibility of adjustments if revenues or partner commitments change.

Ending: the council meeting closed after the votes. Councilmembers emphasized that public comments influenced deliberations and said staff will continue to work with the community as implementation proceeds.