WILLIAMSBURG — Williamsburg City Council is looking for ways to trim and balance its Fiscal Year 2026 budget.
Between its April 7 meeting and the meeting held on April 10, several changes to the original budget proposal had been addressed with expenditure reductions totaling $1.9 million.
Cuts included eliminating the proposed children’s park, eliminating funding for the African American Heritage Trail Art, adjusting the annual paving schedule, eliminating restoration of the Waller Mill mountain bike trail and postponing a planned restroom project at Quarterpath Park.
City Manager Andrew Trivette explained at the April 10 city council meeting that the current proposed budget is $112.3 million, divided into six funds; general fund (general government operations), capital improvement projects (budget for major projects), utilities and maintenance, tourism development, public assistance and Quaterpath CDA (real estate development).
In 2026, Trivette projected a mandatory spending increase of $2.4 million. He stated that most of the new requests were denied, with the exception of a 3% cost of living increase for the staff.
No real estate tax increases are proposed, however, Trivette explained that real estate assessments continue to rise which impacts housing values.
In order to meet the needs of the proposed fiscal 2026 budget, Trivette explained that they look at constraining spending, one-time funds and ways to improve revenue.
Adjusting the water rate to $1.50/1000 gallons, as well as increasing meal and lodging tax and adding an admission tax are some ways the city is hoping to offset its budget needs. This amount is expected to raise the average residential utility bill by approximately $6.36 per month.
The city is proposing an increase to the meals tax by 2%, increasing the lodging tax by 3% and implementing a new 10% admissions tax to events to be paid by the ticket buyer. The admissions tax does not apply to university-sponsored events.
The rationale for selecting these three revenue streams are “very simple,” said Trivette. “One, it’s the only way to have an optional tax and the second reason — probably the most important — it’s the only way for us to share those expenses that are driven by the larger group of folks that visit the city with those visitors. Just raising real estate tax or implementing a trash and recycling fee doesn’t provide that opportunity.”
Prior to the April 10 meeting, the city made adjustments that slightly lowered the percentage amount for the meals and lodging tax that was originally discussed and added a 2% dealer discount.
“If you file and pay the amount owed on time, the dealer discount allows you to keep a portion of the tax collected. The discount is not allowed on the local portion of the tax,” the Virginia Department of Taxation explains.
Trivette added that the dealer discount came about when a local restaurateur approached them about ways to offset the cost of credit card fees from the credit card companies, “it is standard practice in many localities to offer a dealer discount — including at the state level — so, we will offer the dealer discount to offset credit card processing fees.”
During the meeting, many members of the Williamsburg Area Restaurant Association spoke out about how the increase in the meals tax would adversely affect their business at a time they also face rising food costs and other economic challenges due to long-term COVID effects.
Rachel Sears, WARA Executive Director, stated in an email sent to city council, “The restaurant business is vital to the success of Williamsburg, and it would be a great benefit if they did not have more financial burdens placed on an industry that is already suffering.”
The council acknowledged the presence of so many restaurant owners and thanked them for speaking out and explaining how an increase could impact the industry.
Watch the entire April 10 city council meeting here.
Williamsburg City Council will vote on the proposed Fiscal Year 2026 budget at its May 8 meeting.
