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Council adopts budget amendments and faces sustained public opposition over meals-tax increase
Summary
Council adopted a package of budget amendments recognizing a $500,000 William & Mary contribution for a fire apparatus, transferring funds to school CIP projects, reallocating bond proceeds for a public-works yard and postponing $500,000 for Prince George parking-garage repairs. Large public turnout during open forum criticized the recently approved meals-tax hike and raised transparency questions about CIP spending.
Council voted to adopt resolution 26-07, a multi-part budget amendment that recognizes several incoming and carry-forward funds and moves appropriation lines in the FY26 budget.
Key budget actions included recognition of a $500,000 contribution from William & Mary toward the purchase of a new fire department apparatus and the related reallocation of sales-tax funds; approval of $873,400 in school CIP transfers for the Berkeley gym refurbishment and window replacement at Matthew Whaley Elementary; authorization to appropriate $4.385 million in previously issued bond proceeds for relocation and construction of the public works yard; and a $450,000 transfer to create a Duke of Gloucester Street bollard/safety line item. Council agreed to postpone action on a proposed $500,000 transfer for repairs to the Prince George parking garage until June.
Public comment during the meeting's open forum focused heavily on the council's recent decision to raise the meals tax from 5% to 6.5%. Jennifer and Vernon Getty, who own Old City Barbecue, told council the increase hurts customers and the restaurant workforce by depressing tips and reducing purchases of higher-margin items. Other residents urged greater budget transparency, questioned using $1.6 million in reserves to balance the budget, and called for clearer justification of proposed new staff positions.
Council response and next steps: Council members who voted for the amendment cited the need to recognize gifts, manage CIP priorities and use bond proceeds for intended capital projects. Staff will proceed with the directed transfers and bring the deferred Prince George parking-garage item back for the June meeting.
