Middleburg staff recommends reducing vehicle license fee to $0; county to provide one-time FY25 grant

Middleburg — Town staff recommended the council reduce the vehicle-license fee (often called the sticker fee) to $0, citing recent action by Loudoun County and a one-time county grant to offset the revenue for the current fiscal year.

Danny Davis said Loudoun County moved to eliminate the fee for residents outside incorporated towns; county officials offered towns a one-time grant for fiscal 2025 to replace lost revenue if towns elect to reduce their fee to $0 this year. He said the town would keep the ordinance on the books and set the rate to $0 so the council could restore the fee by amending the rate later if desired.

Why it matters: For Middleburg the fee represents about $15,000 a year — roughly 0.3% of general-fund revenues — a modest but measurable amount for this small town budget.

Council discussion acknowledged the revenue loss but expressed support for reducing the fee in parity with other county residents; Councilmember Cindy Pearson said that with rising property values the town would likely absorb the $15,000 without major impact, while another council member called it a matter of principle. Staff said they will prepare an amendment to Town Code chapter 55.2 to reduce the fee to $0 and accept the county grant for FY25 if council confirms the direction.

Decision/direction: Council signaled support for staff to proceed; transcript indicates consensus but no formal roll-call ordinance vote was recorded in the meeting minutes provided. Staff will draft and return with the formal ordinance amendment for council action.

Ending: Staff will prepare the ordinance amendment to set the vehicle-license fee to $0 and pursue the county grant for FY25.