Charlottesville staff present FY‑26 proposed $264 million budget; City Manager and finance staff flag slowing revenue, priority spending

Sam (city staff) introduced the proposed fiscal year 2026 budget on the council’s budget work session, describing it as “roughly $264,000,000” and saying the plan is meant to reflect council priorities.

Finance staff member Chrissy Hamill told council that some local tax revenues “for the first time in a long time…are actually, seeing some of our revenues, not performing as well as they have” and that the city is revising near‑term revenue projections while proposing a FY‑26 general fund that increases locally generated tax revenue by about $8.7 million compared with the adopted FY‑25 budget.

The proposal holds tax rates steady, including a real‑estate tax at $0.98 per $100 of assessed value, a meals tax of 7 percent, a transient lodging tax of 9 percent and a personal‑property tax rate of $4.40 per $100. Hamill said the city’s revised FY‑25 results imply a year‑end revenue surplus of about $2.5 million but cautioned that final surplus size depends on the expenditure side.

Why the budget matters: the plan directs new ongoing money to schools and public services while also using one‑time or near‑term funds to shore up reserves and prepare for rising debt costs. Highlights in the proposed operating and designated budgets include:

- A $4.9 million increase in the city’s contribution to Charlottesville City Schools, which Hamill said “fully fund[s] their ask.”

- $7.8 million for new sidewalks and sidewalk repair and $52.9 million for affordable housing projects, a number Hamill said includes the Carlton Mobile Home Park and a Salvation Army commitment.

- $8.7 million allocated for an Americans with Disabilities Act transition plan.

- Additions to public safety and labor costs tied to collective‑bargaining agreements. Hamill said implementation of multiple bargaining outcomes…