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Williamsburg staff present balanced FY27 draft budget; no property tax increase, 7% utility rate proposed
Summary
City staff presented a roughly $120 million FY27 draft they described as balanced on both operating and capital sides, recommended holding the real‑estate tax rate steady and proposing a 7% increase to utility rates; staff also programmed 13 new FTEs and a 3% cost‑of‑living increase plus up to 2% merit.
City staff on the first day of the FY27 budget retreat presented a draft spending plan of about $120 million and said the proposal is balanced on both the operating and capital sides. The city manager told council the draft assumes continued tourism‑driven local tax collections, planned borrowing for a new library and utility projects, and modest real estate assessment growth.
“The budget we're presenting today is balanced both on the operating side and on the capital side,” the city manager said, framing the plan as fiscally cautious after trimming requests from the departments'—s wish lists. Staff reported the city finished FY25 about $1.1 million ahead and projects approximately $810,000 remaining in FY26, though a portion of those balances reflects school reserves held for the school division.
Key elements of the draft include no proposed increase in the city's real estate tax rate, a recommended 7% increase in utility rates to support planned utility capital borrowing, and broadly flat operating programs apart from contractually required school funding increases. Staff also proposed extending a compensation package that includes a 3% cost‑of‑living adjustment and up to a 2% merit component, and the addition of 13 full‑time equivalent positions prioritized across fire, police, public works, parks and planning within a $1.2 million window.
Staff cautioned that some CIP projects assume grant funding; if grants don't materialize the council will need to decide whether to advance projects with city dollars or postpone them. Staff plans to publish the city manager's proposed budget in March and return to council for adoption in May.
Next steps: staff will refine revenue estimates as new tax collections data and health‑insurance rates become available, and Mayor and council will have public hearings and opportunities to amend the plan before final adoption.
