Council reviews proposed FY2026 budget and hears public comment on proposed 91¢ tax rate; multiple routine motions approved

City staff presented the proposed fiscal year 2026 budget to the Staunton City Council on March 27 and opened a public hearing on a proposed real-estate tax rate of $0.91 per $100 of assessed value.

Budget highlights presented by City Manager Leslie Beauregard and finance staff include: - Total proposed budget: $164,000,000 for FY2026 (all funds). - General fund: $79,600,000 (an increase of about $6.1 million from FY2025). - Proposed local contribution to the schools: increase of about $1,647,852 (about a 9.55% increase to comply with a previously adopted funding formula). - Proposed personnel changes: 3% cost-of-living adjustment for full- and part-time city employees, structural salary adjustments, a 10% projected increase in health-insurance costs (shared equally between city and employees in the proposal). - Capital and infrastructure emphasis: transfer of revenue representing 2¢ of the proposed 91¢ rate to a capital infrastructure account focused first on tunnels that run beneath downtown; staff cited recent tunnel structural issues (Wiley Wilson performing a tunnel survey funded with ARPA) and said these needs increase the urgency to hold flexible funds. - No proposed utility rate increases for FY2026; staff said water, sewer and stormwater fees may need review next year given significant capital needs including an estimated $5,000,000 city share for the Augusta Regional Landfill five-year capital plan. - Other notable changes: $1.1 million in VDOT reimbursable revenue assumed (restricted uses), increased Children’s Services Act costs, and increased support requests from regional social-service partners including Valley Community Services Board and the Children’s Advocacy Center.

Staff walked through debt-policy ratios the city tracks: net direct debt as percent of assessed value (limit 4.0; proposed 1.96), debt service as percent of total government expenditures (limit 15.0; proposed 8.72) and the 10-year principal-repayment ratio (required >=50%; projected 49.27 in FY26 and projected to meet the 50% threshold in FY27).

The budget presentation also described proposed capital projects: a replacement Gypsy Hill pool house with a construction budget of $2.5 million (partly funded from interest earned on CIP and ARPA funds), and sidewalk and road projects including the Edgewood sidewalk estimate that rose in VDOT’s revised projection from about $1.1 million to between $4.0 million and $4.7 million.

Public Hearing: After the staff presentation the council held a public hearing limited to the proposed 91¢ tax rate. Speakers urged both sides of the debate: - Roger Priore urged a reduction to an 80¢ rate, arguing assessments rise and local market indicators show price softening, and said a lower rate would reduce pressure on renters and owners on fixed incomes. - Gretchen Wazell raised a concern about a large assessment increase on her property and was referred to the city assessor. - Pamela Mason Wagner said she supports the 91¢ rate, noting the city provides services that residents value. - Former Mayor Steve Claffey urged caution about a higher rate, saying Staunton is less competitive with nearby localities on tax rate. - Vonda Lacey, a realtor and member of a housing-summit committee, urged careful use of additional revenues and accountability for funded organizations and projects.

Council votes and procedural actions taken during the meeting included routine approvals and two formal items requiring roll-call votes. "Votes at a glance" (actions recorded during the meeting): - Motion to allow Councilor Overholtzer to participate remotely pursuant to the city procedural memorandum: approved (roll call: Miss Woods Aye; Mr. Shepherd Aye; Miss Park Aye; Vice Mayor Arrowood Aye; Mayor Edwards Aye). Outcome: approved. - Motion to approve the work-session and regular meeting agendas as presented: approved (same roll-call pattern noted above). Outcome: approved. - Motion to approve the consent agenda (routine noncontroversial items) including listed consent items: approved (roll call: Mr. Shepherd Aye; Mr. Overholtzer Aye; Ms. Woods Aye; Miss Park Aye; Vice Mayor Arrowood Aye; Mayor Edwards Aye). Outcome: approved. - Motion to permit the Augusta County Landfill trustees to execute two pasture-land leases (to Charles Schooley and Jesse Hershberger): approved (roll call: unanimous of those voting). Outcome: approved. - Motion to adopt amendments to Staunton City Code section 6.10.01 (removing criminal misdemeanor language related to rabies vaccination penalties to align code with a 2002 decriminalization change): approved (roll call: unanimous of those voting). Outcome: adopted.

Next steps and schedule: staff said the full budget document had been posted and work sessions on the budget would continue, with a second public hearing on the overall budget scheduled in two weeks and final adoption planned for April 24.

Council asked staff to continue outreach about the proposed rate and to refine budget items during upcoming budget work sessions.