Winchester council directs staff to advertise 81.5¢ do‑not‑exceed property tax rate amid FY2027 budget talks

Winchester City Council instructed staff on March 10 to advertise a do‑not‑exceed real‑estate tax rate of 81.5 cents per $100 assessed value as part of its FY2027 budget process, after officials reviewed department budgets and debated revenue options.

City Manager John Piper outlined two revenue scenarios: a revenue‑neutral option at 79.5¢ that would allow a 3% cost‑of‑living adjustment for city employees and modest additions, and an option that would raise revenue — either through a 2¢ increase in the real‑estate tax or a half‑cent increase in the meals tax — to fund additional police staffing, a larger transfer to schools and other needs. “We anticipate an additional $650,000 in revenue for FY ’27 from those programs,” Piper said, citing a $700,000 MOU with Valley Health and potential enforcement‑related revenues.

Councilors debated the tradeoffs. Supporters said advertising 81.5¢ preserves flexibility to fund two police officers in the chief’s five‑year staffing plan and avoid scrambling later, while opponents argued the council should prefer revenue‑neutral options and press staff for additional savings. “When families are earning less, is it fair to ask them to pay more in taxes?” one councilor asked, arguing for careful prioritization.

A majority of council members said they would support advertising the higher do‑not‑exceed rate while continuing to evaluate options, with the understanding that advertising is not a commitment to the final rate. City staff will place the ordinance for first reading at the next meeting and return with more detailed scenarios, including the school division’s presentation and refined estimates of health‑care and other personnel costs.

Next steps included formal advertisement of the ordinance for the do‑not‑exceed rate and additional follow‑up presentations to help council pick a final course before budget adoption.