Charlottesville staff outline FY27 budget and propose reducing proposed 2¢ real-estate tax increase to 1¢
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Summary
City staff presented a proposed FY2027 budget of about $280 million and described revenue adjustments that could reduce a proposed 2¢ real-estate tax increase to a 1¢ increase; council scheduled adoption for a Thursday vote and discussed a $2 million school contingency tied to state funding.
City staff presented the proposed fiscal year 2027 budget to Charlottesville City Council and opened a public hearing on the real-estate tax rate.
Staff summarized the budget presented in the packet as about $279.6–$280 million and said revisions to revenue projections (personal-property, sales/use tax, lodging, and other minor adjustments) provided roughly $1.5 million that, combined with council direction to use reserves, could reduce a previously proposed 2¢ real-estate tax increase to 1¢. Staff described one option to place $2,000,000 of the school appropriation into a contingency pending final state funding and proposed splitting any additional state funds 50/50 with the school division.
During the hearing, resident Richard (speaker 11) cautioned against raising the tax rate and pointed to recent years’ assessment-driven revenue growth. Multiple residents and organized groups later urged council to prioritize affordable housing and transit investments within the proposed budget.
Council members asked clarifying questions about line items, council-initiative accounts, and staffing impacts; staff said they will amend advertised language before the Thursday adoption vote so the public can see the final rate and appropriation language. The council confirmed it intends to vote on Thursday at 6:30 p.m. in council chamber.
Next steps: Council will vote on the FY27 budget ordinance and the real-estate tax rate at the scheduled adoption meeting; staff said amendments based on council direction will be incorporated and published ahead of the vote.
