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Debate Over City Investments, Tax Rate and Reserves Surfaces at Manassas Town Hall
Summary
Residents and council debated the city’s investment strategy, tax rate and use of reserves; some residents urged delaying discretionary capital work until large industrial revenues arrive.
The town hall included a broad debate over the city's investment strategy, tax rate and use of reserves.
Resident Mark Boston criticized the city's high real‑estate tax rate compared with surrounding counties and urged spending restraint. “Manassas City's is at 1.26. That's a 22% higher rate than the highest county in the surrounding area,” he said, calling for lower taxes and less city spending on real‑estate investments.
Others defended recent property acquisitions as long‑term investments. Alan Mushnik and other residents told council that purchases such as the Old Town Inn, Marcella Park work and the Mifco property are investments that will pay dividends for the city over time and support downtown activity.
On a specific acquisition, a resident asked about a reported Mifco purchase price of about $3.5 million; a speaker at the meeting confirmed the contemplated purchase price and said the city was pursuing interest from private developers for other sites but that financing markets had delayed closing on some deals.
Council and staff clarified that some capital projects for utilities are paid from utility revenues and rate structures, not general tax dollars, and that the city has and will use reserves in budget planning. Staff also noted that expected revenues from data centers and other large industrial projects are phased and may not provide full revenue benefits for several years; some residents urged postponing discretionary capital projects until those revenues materialize.
Staff gave residents an overview of the city’s community survey process after questions about public input: staff said about 12,917 properties are in the city’s mailing list for household surveys and that the consultant aims for a 12–15% return, noting the city’s return ratio was roughly 13.5 percent in the most recent survey. The survey and resident input will inform budget deliberations continuing through May.
No budget decisions were made at the town hall; council members said the FY budget process will continue with additional work sessions and a public hearing in April.
