Staunton proposes modest fee increases for FY2027 to shore up water, sewer and landfill capital needs; council favors hazardous‑duty VRS multiplier

Staunton City finance staff presented the proposed FY2027 general fund and enterprise fund budgets on April 9, recommending modest rate adjustments and targeted spending to avoid emergency borrowing for major water, sewer and landfill capital needs.

Enterprise funds and rates: Staff outlined five‑year capital needs (water ~ $22.1M; sewer ~ $33.5M; landfill CIP and permit obligations totaling several million). To begin addressing those gaps, staff proposed a water rate increase (from $4.06 to $4.28 per 100 cubic feet equivalent in local units) to unfreeze two public‑works positions and add capital funds; sewer rates were already raised in the prior year after a long freeze. The residential refuse charge would rise from $24.01 to $27.50 (bi‑monthly), and staff recommended tipping‑fee increases for commercial haulers; these adjustments would keep Staunton’s rates competitive but help replenish declining landfill reserves.

General fund choices: The proposed general fund budget ($83.3M) supports a 3% COLA for employees, continues investment in schools (local increase per formula of about $1.46M), funds phase‑two of the police compensation plan, adds modest technology and voter‑software upgrades and relies on carryover and a debt‑service syncing fund balance in the near term. The administration proposed increasing the cigarette excise from $0.30 to $0.40 per pack (estimated $90,000), dedicating $15,000 of that to recycling and composting pilot programs and community education.

Public safety compensation: Councilors debated increasing the hazardous‑duty VRS multiplier from 1.7 to 1.85 to improve recruitment and retention for sworn police, fire and sheriff personnel. Staff said the incremental VRS cost on all full‑time payroll would be managed across funds that employ sworn staff; several council members expressed support to include the change in the FY27 ordinance.

Refuse diversion pilots: Using a small share of the cigarette‑tax increase, staff proposed targeted, high‑visibility pilots (partnered composting with Black Bear Compost and Shannondoa Green, cigarette‑butt recycling bins, enhanced recycling education and website tools) to reduce landfill tonnage and long‑term disposal costs. Staff will evaluate feasibility and staff capacity before committing ongoing funding.

Next steps: No final votes on these rate changes occurred on April 9; the public hearing was held on utility/refuse rates and items will return to council for action at the April 23 meeting.