Manassas Park adopts FY2027 budget with two‑cent real‑estate tax cut; council flags water rate concerns

The City of Manassas Park governing body voted June 16 to adopt the FY2027 budget and associated tax and appropriation measures, including a two‑cent reduction in the real‑estate tax rate per $100 of assessed value.

City staff presented the proposed FY2027 budget and noted no enterprise fund rate increases were included for FY2027 at the time of adoption. Multiple council members praised staff work but said they were concerned about approving the budget while a consultant study showed large potential utility rate increases in the coming fiscal year. One council member said approving the budget without addressing the projected water revenue gap felt "like a bait and switch," while others said the city had unassigned fund balance flexibility and that staff should return with follow‑up options.

The council also approved related actions on consent: an appropriation authorizing the transfer of motor fuels tax funds to the Potomac and Rappahannock Transportation Commission (PRTC) and a budget appropriation resolving allocations between the city and schools. The meeting record shows the motions carried with votes that included opposition and abstentions; the transcript records voice voting but does not provide a full roll‑call tally in the public record.

What this means: The adopted FY2027 budget reduces the real‑estate tax rate by two cents and maintains the approved appropriations and projects listed in the packet, including three new FTEs and a 3% cost‑of‑living adjustment for city staff. Council and staff said they will continue to weigh the consultant’s water/sewer study findings and may pursue additional analyses or phased approaches before implementing any rate changes.

Next steps: Staff will report back with options related to the water/sewer rate study (phasing, indirect cost allocation approaches, and customer impact breakdowns) that could affect future enterprise fund decisions.