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Waynesboro council approves tax changes and FY2026 budget, reviews capital plan
Summary
Council approved a package of tax and budget ordinances and heard a presentation on the FY2026 capital improvement plan; public commenters opposed tax increases and urged living-wage investments.
Waynesboro City Council on May 27 adopted a series of tax and budget measures, including a meals-tax ordinance and the city—s annual budget for the fiscal year ending June 30, 2026. Council approved the key ordinances on voice votes with 4-1 tallies on the tax and budget ordinances and a 5-0 vote on a mid-year budget amendment.
The council held a public hearing before adopting changes to the meals tax (City Code section 78-154). City staff clarified that, if approved, the meals-tax rate increase would take effect Aug. 1 to allow additional notice to local businesses; counsel characterized that effective-date change as immaterial and appropriate to proceed with the ordinance in its current form.
Kurt Lilly of 649 Walnut Avenue addressed the council during the public hearing and urged members not to raise taxes. "Raising taxes affects everyone," Lilly said, adding that he believed many residents opposed any tax increase and asking council to reconsider. Andrea Jackson, speaking during the citizen comment period, criticized the city—s approach to wages and called for greater investment in employees and neighborhoods.
City finance staff, led by Mr. McCormick, summarized changes to the proposed budget and fund-balance uses. McCormick said the Community Vitality Fund would show $100,000 in the small-cap column plus a $200,000 CIP appropriation, for a $300,000 total. He said the high-school debt-payment reserve was increased from $900,000 to $1,100,000 and that salary-scale adjustments had been reduced to $1,500,000 for the current year with $500,000 moved to 2027 and $600,000 to 2028. Other adjustments included moving short-term items such as a fire parking lot repaving from CIP to small-cap and appropriating certain equipment purchases from fund balance.
Council also approved a second consideration ordinance imposing taxes for calendar year 2025 and a separate ordinance establishing the annual fiscal-year 2026 budget (both carried on 4-1 voice votes). A separate ordinance to amend the fiscal year 2026 budget by $919,244 passed unanimously 5-0. The council introduced an ordinance amending the fiscal year 2025 budget totaling $1,498,952; that item does not require a public hearing and will receive final consideration at the June 9 meeting.
Mr. McCormick presented the proposed FY2026 capital improvement plan. Highlights included a $1.1 million bid for the animal shelter relocation (the reserve had been $800,000), ongoing contributions to a fire-truck replacement reserve, and a planning/design allocation for the Waynesboro Commerce & Industrial Park road. Staff said several transportation projects rely on VDOT and federal Bipartisan Infrastructure Act funds; most large CIP items will require public hearings before final appropriation.
Council did not reverse any adopted tax or budget votes at the meeting. Staff will prepare the budget book with noted footnotes and return with related ordinances for final consideration on upcoming meeting dates.
