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Poquoson manager recommends using modest revenue gains for employee pay; council debates tax trade-offs
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Summary
City Manager Randy Will proposed directing a roughly $161,000 revenue uptick toward a 1% cost-of-living adjustment for city employees, citing retention risks as neighboring localities increase pay; council members debated whether a 1¢ real-estate rate hike (quantified as about $55 per year) would be sufficient to maintain competitive pay.
City Manager Randy Will briefed council on the city general fund (about $41.5 million) and reported a modest improvement in projected revenues (approximately $161,000) from collections and sales tax trends. Will recommended allocating that amount toward a 1% cost-of-living adjustment (COLA) for city employees to help retain staff amid regional pay competition.
Council members discussed trade-offs between raising revenue and protecting taxpayers. The mayor and staff quantified that a 1¢ increase in the real-estate property tax rate would add about $55 per year for a median homeowner; councilmembers voiced concern that while modest revenue and a 1¢ adjustment could help, it might not be sufficient to match neighboring jurisdictions that pay significantly higher wages for comparable positions.
Members cited staffing metrics: current municipal vacancies were described as roughly 6–7 positions, while another speaker estimated roughly 150 positions in broader staffing categories (remarks emphasized training and replacement costs). Several council members urged prioritizing employee retention, noting the high cost of turnover and that neighboring localities' pay scales have widened the recruitment gap.
Will also advised council of rising operational costs (water utility rate increases and higher fuel costs) and recommended options for how to apply the modest additional revenue, including using it to offset some of the proposed tax-rate increase if council chose to reduce the tax proposal.
Why it matters: Poquoson faces a strategic choice about funding employee pay to retain talent versus limiting tax increases for residents. Staff presented concrete trade-offs, vacancy figures and short-term revenue options for council consideration ahead of formal budget adoption timelines.
What’s next: Council retains flexibility to hold more work sessions before May adoption; staff will provide further detail on pay-plan options and the impacts of revenue choices.
