Mayor Hooks proposes 3¢ real-estate tax hike to fund 10% city pay raises; council postpones final vote

Mayor Hooks moved Monday to raise Poquoson’s real-estate tax rate by three cents, saying the increase would enable a 10% pay raise for city employees amid rising health‑insurance costs, an increase in the state’s Local Composite Index and growing unfunded disabled‑veteran exemptions.

"I move that council pass an ordinance to lay a dollar 17¢ levy for $100 of assessed value for all real estate in the city of Poquoson, Virginia, for the general operation of the various departments of city government," Mayor Hooks said before asking for a second. He told the council the city faces roughly a $4 million ‘‘headwind’’ from three factors beyond local control.

Council members pressed for more time and public notice before taking a final vote. Multiple members said residents would first learn of the proposed 3¢ increase only when the packet appears online and urged a work session to review sustainability and how any raises could be continued in future years.

"Postponing this vote would give [citizens] more time to find out about it, form their opinions, perhaps reach out to council members," a council member said, arguing the public needed meaningful notice and an opportunity for input.

The city attorney outlined the charter’s timing constraints and the correct procedure to delay final adoption while respecting the 40‑day budget-adoption window: recess the meeting to a date and time certain within the 40 days and then postpone the ordinances to that recessed meeting. The council accepted that approach.

Council then voted to recess to 9 a.m. on May 20 for a work session and meeting, and to postpone the second reading and final adoption of the fiscal year 2027 annual financial plan (item F1) to that recessed meeting. Both motions carried by recorded votes of 7–0.

What’s next: Council scheduled a May 20 work session at 9 a.m., to be followed by a council meeting at which the council will take final action on the FY27 ordinances. Council members encouraged residents to submit comments by phone or email before then.

Context and why it matters: Council leaders framed the proposed tax increase as an attempt to address recruitment and retention of city employees after neighboring jurisdictions approved larger pay increases. The measure would raise property tax bills modestly — the council estimated roughly $135 per household annually on a median-valued home example cited in discussion — while officials said the city must consider sustainability and potential long-term funding pathways before final approval.