Friday has rolled around again which means it is time to scramble out another audio edition of Charlottesville Community Engagement. This time around there is a big focus on municipal budgeting because the purpose of Town Crier Productions is to focus on the details of revenues and expenditures with a hope toward greater community understanding. At least, that’s the way this version of Sean Tubbs is programmed.
In this edition:
* Charlottesville City Council has adopted a budget for the next fiscal year that increased the real property tax rate by a penny, one fewer cent than had been proposed (full story below!)
* Albemarle Supervisors have a few remaining decisions to make for the county’s FY2027 budget (read the story)
* Albemarle and Charlottesville commemorate Dark Sky Week (read the story)
* A preview of the Week Ahead
Shout-out / PSA #1: Friends of JMRL Book Sale
The Friends of the Jefferson Madison Regional Library’s Spring Book Sale is running now through this Sunday from 10:00am to 7:00pm each day at Albemarle Square Shopping Center. Additionally, April 11th and 12th are ½-price days. Choose from thousands of books, DVDs, CDs, LPs, games and puzzles, with restocking occurring throughout the sale. Proceeds benefit our regional public library system. Visit jmrlfriends DOT org for more information
Charlottesville goes with penny increase on real property tax rate rather than two
Note: The podcast edition of this budget story is stitched together from several reports. This is a consolidated version used for a script and lacks hyperlinks and other resources.
One of the most important duties of governing bodies in Virginia localities is to adopt a budget for each fiscal year.
For Charlottesville City Council, the process began this year on March 2 when Charlottesville City Manager Sam Sanders introduced a budget that was built on a two-cent increase in the real property tax rate to an even $1 for every $100 of assessed property.
Since then, there have been several work sessions in which Sander’s recommended budget gradually became the one that Council adopted on April 9.
These were mostly held on Thursdays beginning on March 5 with a work session dedicated to the Vibrant Community Fund on March 12. That’s the process through which the city provides money to nonprofit organizations.
Informal budget hearing
On March 19, the city held an informal public hearing during what is billed as the Community Budget Forum.
The only speaker was Jim Moore who said he has eight rental properties within Charlottesville.
“I tend to try to keep my rents a little below market, and I have some tenants that really can’t afford much more than that,” Moore said.
Moore said the property assessment for one of those rental units increased by 74 percent from 2021 to 2025. He asked for the city to lower the anticipated rate increase.
The budget forum ended up being more like a work session with staff presenting information to the City Councilors on potential ways to lower the rate. But first, budget director Krisy Hammill explained why the two cent real property rate increase had been proposed.
“Most of the new revenue for the tax increase was put in the budget to offset the deeper transit investments, the increased match for the schools, and also the impacts of collective bargaining,” Hammill said.
That two cent tax increase generates $2,467,724 a year.
To help eliminate one of those pennies, Hammill said staff were comfortable projecting slightly higher revenue forecasts and also showed some ways to reduce revenue, including less funding for Charlottesville Area Transit, tapping into a reserve fund, and eliminating funds for Council Strategic Initiatives.
“One other option would be to move the schools back to the original 2 million that we had originally built the budget around, thus reducing their increase by $569,000,” Hammill said.
The budget anticipates hiring ten additional drivers for Charlottesville Area Transit. Under one potential scenario to reduce funding, money would be in place to hire five in July and the other five would be hired in January as well as additional mechanics and supervisors. That might also mean scheduled service improvements might be delayed.
City Manager Sam Sanders said this would defer spending and Council would have to build positions into next year’s budget. That would create a structural imbalance that would have to be addressed.
“Any creation of a structural imbalance is a risk,” Sanders said. “The question is how much of a risk are you willing to take. When you create the imbalance this year and solve it this way next year, you’re saying that your reassessment should be higher to start with. And you can’t guarantee that.”
Councilor Jen Fleisher said she liked the idea of limiting the real property tax rate increase to a penny as a middle ground option.
Councilor Natalie Oschrin said she did not support delaying expanded transit.
“I appreciate coming up with the CAT adjustment scenario to try and make it fit,” Oschrin said. “I would prefer not to do that since it just kind of kicks the can down the road a little bit.”
Oschrin said she could support using the reserve and eliminating additional funding for Council’s strategic initiatives.
Councilor Michael Payne said he could support a one penny tax rate increase but said the risk to split funding for CAT personnel would be too high.
“I don’t like in the past when we’ve set ourselves up with kind of fiscal cliffs,” Payne said.
Mayor Juandiego Wade also said he could support a penny increase.
“I appreciate the work that I’ve done to kind of bring back because we’ve been hearing from residents about the, the cost of living, the, the tax increase and this I believe is a good, won’t satisfy everyone,” Wade said. “But I think it’s a good, good compromise if we decide to go in this direction.”
No decisions on tax rate at March 26 CIP work session
The March 26 work session dealt with the Capital Improvement Program.
That’s the portion of the budget that sets out what a locality expects to spend on infrastructure over the next five years.
“The CIP plan for 27 is just over $47 million with $196 million over the five years,” Hammill said. “If we were to look in terms of dollars spent, education is the highest in this plan, followed by transportation and access, and then affordable housing coming in third.”
There were no major changes in this year’s CIP. The Charlottesville Planning Commission had a work session on the capital budget in late November and later had a public hearing in December.
The five-year CIP currently includes $500,000 a year for a line item called Parks and Recreation Master Plan Implementation. Sanders said that number will increase in the years to come because the master plan adopted by Council in March 2025 had a $78 million price tag over ten years.
“We know that those numbers need to be dramatically different if we’re going to come anywhere close to that,” Sanders said. “But we now have an assistant city manager here who’s going to be working with the team to try to figure out how do we allocate better over the next five year cycle.”
Part of the plan calls for major changes to Market Street Park, Court Square Park, Washington Park, and Tonsler Park. Sanders said each will be expensive and staff still needs to work out the timing.
Parks and Recreation Director Riaan Anthony said the department will seek grants in addition to tax dollars to pay for the various projects.
“In order for us to get there, we have to right size our department and the city,” Anthony said. “We are working in partnership with Public Works, reaching out to their department to say hey, do you have any resources?”
There was further discussion of the parks and recreation master plan at the April 6 City Council work session.
March 26 work session
At the March 26 session there was a further discussion on the possibility of a one cent sales tax increase, what to do with anticipated payment-in-lieu fees for student housing projects, as well as miscellaneous discussions.
Toward the end, Sanders hit reset on the discussion of the tax rate. On March 19, there had appeared to be consensus to limit the increase to a penny but Council still had to make decisions.
“We’re looking for you to finalize what scenario we are actually going with for offsetting, for addressing the fact that you’re stepping back from two cent increase on the real estate tax to a one cent increase on the real estate tax,” Sanders said.
However, that discussion did not happen at the meeting. Instead, Councilors sent suggestions to Sanders and Hammill via email on how to offset the funding if they wanted to proceed.
April 2 wrap-up
The April 2 budget work session was described as a wrap-up session.
“The items that are open for discussion that we’re looking for answers on is closing out the review of the Vibrant Community Fund process and how Council is looking to utilize your Strategic Initiatives fund,” Sanders said.
The Vibrant Community Fund process had been covered at the March 12 work session. This is how nonprofit organizations seek funding from Charlottesville. The full report can be seen here.
Mayor Wade wanted to make sure everyone was on the same page regarding the penny increase on the real estate tax rate.
“We had initially looked at a two cent tax increase, but we saw options where we could do one,” Wade said. “And I just want to make sure if you, if we have that information we can bring them make sure everyone’s on the same page with that. And if I can get a head nod or yes from everyone as we go down the line, make sure we are all okay with that.”
As the meeting began, Council had a $228,000 gap to fill if they wanted to go with a penny increase. Hammill displayed the math on a spreadsheet, a spreadsheet made available to the public after I asked for it.
The real public hearings on April 6
After multiple budget work sessions, Charlottesville City Council held the final set of public hearings on April 6 for the budget for Fiscal Year 2027 as well as the real property tax rate.
The only speaker for the tax rate hearing was Richard Spurzem of the development company Neighborhood Properties who urged caution when increasing taxes.
“Many communities have a history of reducing the tax rates when assessments go up,” Spurzem said. “For instance in Waynesboro in 2023 they reduced their tax rate from 90 cents to 77 cents.”
Spurzem said Charlottesville is increasing the tax burden for business and he said that might lead to investors deciding to go somewhere else. He said the Development Code has so far led to no approvals for major buildings and the current student housing projects of the Verve and the Blume might be the last.
“I don’t know who’s going to build hotels that are going to compete with the brand new hotels that UVA has built on Ivy Road and out at Darden,” Spurzem said.
After the public hearing for the tax rate, budget director Krisy Hammill explained that the amended budget is for just over $280 million, higher than what had been recommended by City Manager Sam Sanders on March 6.
In addition to including higher revenue forecasts, staff found several line items in the budget that will not be spent down in FY2026 so that money will be added to the FY2027 at around $910,000 in available revenue.
“It includes a few accounts that generally we carry over from year to year, including Historic Resources, Sister City Funds, the citywide reserve, the Council Strategic Initiatives account, money or donations that have been received and unspent for the Grand Illumination, the Councilor discretionary funds, the Minority Business Fund and also the job fair,” Hammill said.
Two people spoke during the public hearing on the budget including former Charlottesville Mayor Nikuyah Walker. She said people are beginning to feel the effects of an increased tax burden and said the city is not expanding the Charlottesville Homeowner Assistance Program fast enough to provide relief.
“A lot of low income families are being pushed out and middle income families are struggling,” Walker said. “There are a lot of wealthy people in Charlottesville. We know that they can afford the increase, but because you all are not expanding it at the rate that you need to be, it is not as it was intended to work.”
Walker also called on more accountability for Charlottesville City Schools.
A second person wanted to know why health care for employees has increased 15 percent and why funding for public transportation is going up 17 percent.
“And yet when I see the buses pass here, there, and everywhere, there’s not many people riding the buses,” said Richard Finley, a recent Charlottesville resident. “Before you increase so dramatically, do you do an audit or an evaluation of the ridership on the buses?”
Finley also asked if the city had ever tried to require the University of Virginia to make a payment in lieu of taxes to cover the cost to use municipal infrastructure.
Councilor Lloyd Snook said under state law, a locality cannot compel such a payment but that an institution could make one voluntarily.
April 9 adoption
Council held a special meeting on April 9 at 6:30 p.m. to formally adopt the tax rates and the budget for FY2027. The deadline under Charlottesville charter is April 15.
While there were no surprises, the meeting gives a glimpse into some of the details of how taxation works in Virginia. Changes in Richmond can affect what happens in localities for years to come, such as when a former governor campaigned on elimination of the “car tax.”
“The City gets about $3.5 million from the state every year,” said Charlottesville Commissioner of Revenue Todd Divers. “That’s kind of what’s left over from Governor [Jim] Gilmore’s attempt to eliminate personal property tax. They tried it for a while, ran out of money, and then they sort of froze the amounts to all the localities, and that’s the amount we get.”
The city uses that $3.5 million to offset a percentage of everyone’s personal property taxes. Council has to agreed to that number and this year it has been set at 31 percent.
“Essentially, if your vehicle qualifies, if it’s a personal use vehicle, 31 percent of your tax bill will be paid by the state,” Divers said.
Council voted unanimously to approve that number.
Next was a resolution to adopt the FY2027 budget and tax levy. City Manager Sam Sanders had some remarks and said that this has been another challenging budget year as he seeks ways to fund spending desired by the City Council.
“I continue to talk about Charlottesville as a place that punches above its weight class,” Sanders said. “Every budget cycle is a reminder of that, because we are dedicated to the idea that we are that community and that we want to try to do as many things as we possibly can.”
Sanders said the idea of a tax rate increase is hard for many and it weighs on him to have brought one forward.
“My goal is always to help you not go but so far in any pursuit that you have as you change that rate, because it does go into the pockets of individuals who have difficulties in our community,” Sanders said.
The advertised budget was for a two cent increase, but Council moved that down to one penny throughout the course of their work sessions.
Then there was the vote.
“We have a budget,” Wade said. “Thank you so much. So, do you like take a month’s vacation?”
“About an hour,” Hammill said.
This reporter knows the feeling.
Shout-out / PSA #2: Gretchen Walsh to speak at Emily Couric Leadership Forum on April 27
This year’s recipient of the Emily Couric Leadership Forum’s leadership award is Olympic swimming champion Gretchen Walsh. She will be the speaker at a luncheon to be held at the Omni Hotel Charlottesville on Monday, April 27th at noon. Walsh, a 2025 UVA alum, is one of the most accomplished swimmers of her generation, holding 13 world records across long-course and short-course competition. Online ticket sales for the luncheon begin on Monday, March 23rd. For more information, visit, Emily Couric Leadership Forum dot Org
A rudimentary week ahead to fill a two minute gap in audio
This week’s edition is a little short so that’s a good a time as any to look ahead to what’s coming up the week of April 13. Monday the 13th!
Let’s start with the University of Virginia Board of Visitors who meet the evening of April 15 for a reception and again on April 16 for business. Committees that will convene include the Finance group and the Audit, Risk, and Compliance panel.
In Albemarle, the Places29-Hydraulic Community Advisory Committee on Monday will hold a community meeting for a proposed rezoning that would allow for 15 townhouses on a one-acre parcel.
On Tuesday, the Albemarle Planning Commission will discuss changes to the county’s rule on importing fill dirt and will hold a public hearing on a special use permit for a 400-person religious assembly hall right at Interstate 64’s Exit 107 in Crozet.
On Wednesday, the Albemarle Board of Supervisors will hear what “big moves” staff wants to make to implement a new Comprehensive Plan. Will lighting reform to protect the Dark Sky be on the list?
In the evening, there will be a public hearing on increases of Development Fees as well as the tax rates for the current calendar year. A reminder that this includes a proposed 15 cent increase in the personal property tax rate. Then a public hearing on the budget, but Supervisors will wait a week before finally adopting the document.
On Thursday, Albemarle County will hold a public meeting on the future of a pocket park on Hillsdale Drive
In Charlottesville, the Economic Development Authority meets on Tuesday and continue to do so off camera with no recording. Later on the Planning Commission meets and will have a public hearing on Community Development Block Grant funding. The Planning Commission will also take action on a special exception and get a report on a study of student housing fees.
Next week the Housing Advisory Committee and the Board of Zoning Appeals will meet.
More details in the Week Ahead newsletter that will go out on Sunday.
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