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Council holds FY2026 budget hearing; staff says no change to tax rate though reassessments raise bills for some owners
Summary
Budget director presented a proposed FY2026 general fund budget of just over $264 million and staff clarified that the proposed budget does not change the tax rate; public commenters said reassessments will raise some taxpayers’ bills and called for clearer notice language.
Chrissy Hamill, Charlottesville's director of budget, opened the public hearing on the FY2026 budget and said the proposed general fund budget is "just over $264 million." She also described roughly $792,000 in carryover amounts being proposed to fund next-year operations.
During the hearing, city staff and council clarified a separate procedural problem: a prior advertising error prompted the city attorney to recommend removing and republishing the public hearing on the real property tax rate (see separate item). Council and staff emphasized that the proposed budget presented tonight does not itself change the tax rate; rather, reassessments of property values mean some taxpayers will see higher bills even if the rate remains the same. "No change to the tax rate is happening as part of the budget tonight," a staff member said.
A public commenter argued the ad wording implied an "effective tax rate increase 7.359%" and noted that reassessments can sharply increase individual taxpayers’ liabilities; the commenter said some renters and landlords could see significant year-to-year increases and urged clearer public communications.
Council moved to carry the final adoption vote to a special meeting on April 14, 2025 to allow staff to present updated revenue projections at a wrap-up work session; the separate, republished tax-rate public hearing was scheduled for April 21, 2025.
Next steps: staff will present revised revenue projections at the April 9/14 wrap-up and council will vote on final adoption on April 14; the republished tax-rate hearing will be held April 21.
