Purcellville council votes to allocate half of meals‑tax revenue to utility fund amid debate

The Purcellville Town Council voted to allocate 50% of the town's meals‑tax revenue to the utility enterprise fund effective July 1 to help reduce planned double‑digit utility rate increases. Supporters said the transfer would provide relief to residents who face rising water and sewer rates; one council member said, "we need to find a way to make this manageable for the people that live here" (S8).

Opponents said the policy was premature without a staff report detailing the budgetary impact and consequences for general‑fund services. Council members asked how the council would replace roughly $1.62 million (estimated in discussion as 50% of the meals‑tax receipts at current rates) if moved from the general fund to the utility fund and urged that the public be allowed comment before such a major policy shift. The mayor said the policy could be reversed if subsequent budget work showed it was not feasible. The motion was moved, seconded, and recorded in the roll call; the mayor announced the motion passed.

Council members who voted against the motion cited the absence of staff reports and the lack of public comment at the special meeting. Supporters emphasized urgency to prevent further utility rate increases and said the allocation would take effect with the fiscal year starting July 1.