Suffolk City Council adopts FY2026–27 budget, approves one‑cent real estate tax rate reduction

Suffolk City Council approved the FY2026–27 operating and capital budget on May 6, adopting an approximately $954 million plan that the city said reduces the general real estate tax rate by one cent and preserves funding for schools and public safety.

The council voted 8–0 to adopt the budget after a presentation from Stephanie Wells, director of finance and budget, and a motion from Council Member Ebony Wright, seconded by Council Member Johnson, to amend the capital improvement plan by moving $500,000 originally proposed for the Riverbend VOTE site design into the school system’s major repairs and replacements line item. Mayor Michael D. Duman presided over the meeting.

Why it matters: the adopted budget increases school funding by roughly $5 million and lists public safety as the largest operating expenditure (approximately $108 million). Council and staff said the plan uses a mix of reserves and planned cash flow to delay some debt issuance and aims to limit direct tax‑rate increases while financing capital priorities such as school facility repairs and public infrastructure.

Budget highlights presented by staff included an operating and capital total shown in the slideshow as about $954 million, continued investment in schools (cited at about $86 million), and a strategy to use capital reserves and delayed debt issuance to reduce near‑term rate pressures. The presentation also noted a planned 5% programmed increase in public utilities rates and reductions in planned new full‑time positions compared with earlier proposals.

Council debate centered on the tradeoffs involved in cutting the rate further. Several members said constituents urged a larger reduction, but councilors and staff emphasized that each additional cent of rate reduction would require roughly $1.7 million in offset revenue or budget cuts. “It would feel better to do a little bit more reduction,” Council Member Butler Barlo said, noting constituent concerns; other members cautioned that the city also must fund infrastructure and school needs.

Public testimony during the meeting included a homeowner who described the reassessment’s impact on long‑term residents’ tax bills. Finance staff and council said the public hearing on reassessment and the tax rate was required by state law because the excluding‑new‑construction change exceeded the statutory threshold.

What’s next: staff said adoption tonight does not preclude later amendments tied to the Commonwealth’s budget outcomes; council expects to revisit school funding after the state budget is finalized.

Sources and attribution: Unless otherwise noted, quotes and figures are taken from the May 6 council meeting presentation and public record. The motion to adopt the budget was made by Council Member Ebony Wright and seconded by Council Member Johnson; the final vote was recorded 8–0.