WILLIAMSBURG — The City of Williamsburg will host a public hearing regarding the Fiscal Year 2026 budget and Capital Improvement Plan during its next meeting on April 10.
The City Manager’s Proposed FY 2026 Budget totals $121,515,595 across six funds. After
adjusting for inter-fund transfers to prevent duplication, the total budget stands at
$112,380,393 — an increase of $17.3 million compared to the FY 2025 Adopted Budget.
Over the last few years, City Manager Andrew Trivette said that the city has compared its budgeting process and its outcomes to running a marathon.
According to the proposed budget document, “Our finish line is a Williamsburg 2040 that we can all be proud to share. Our route is guided by our biennial strategic planning process, the Goals, Initiatives, and Outcomes (GIOs). This past year, we renewed our focus on 2040 by again conducting the GIO process, and this budget reflects those priorities.”
Key points of adjustment in the budget and CIP include:
- Eliminating 29 capital projects, or $15.3 million, in fiscal year 2026.
- Reducing departmental operating costs by $725,000, or 2%.
- Instituting a funding freeze that saves $207,000 by holding nine positions vacant through June.
- Reassigning $5.5 million in COVID relief funds and $1 million in reserve funds to the CIP.
- Adjusting the water rate by $1.59/1,000 gallons for necessary infrastructure upgrades, effective July 1.
- Increasing the meals and lodging tax rates by 2% and 3%, respectively, and adding a new 10% admissions tax, all effective Jan. 1.
Schools
In addition, there is also the city’s contribution to Williamsburg-James City County Schools — the Fiscal 2026 proposal includes a contribution of $12.7 million in annual operating funds, a $1.4 million increase, or 12.4%, and capital funds totaling $1.4 million. In total, the school system represents 14.5% of this year’s total budget.
Effective Real Estate Tax Levy
The average overall increase in real estate assessed values, excluding new construction, is 3.3% (with an average increase of 4.6% in residential properties, 4.3% in multifamily properties, and 0.8% in commercial properties). The Proposed fiscal 2026 Budget keeps the current real estate tax rate at 62 cents per $100 of assessed value.
It was noted Real Estate Tax revenue increased in the fiscal 2026 Proposed Budget by $970,000 compared to the fiscal 2025 Adopted Budget. The city said that the proposed effective real estate tax rate was advertised in accordance with the Code of Virginia.
Water Rate Increase
An increase of $1.59 per 1,000 gallons of use in the water rates to finance a $27.6 million investment in water system infrastructure for repairs and modernization of the utility system. As a breakdown shows:
Water Charges Current Rate Proposed Rate
City Rate $5.30 $6.89
Non-City Rate $6.36 $8.27
Camp Peary Rate $5.30 $6.89
Tax Rates Increase
The budget proposed would see an increase in the prepared food and beverage tax rate from 5% to 7%, the transient lodging tax from 5% to 8%, and imposing an admissions tax at the rate of 10%.
Admissions tax is the tax added to the charge of admission to amusement or entertainment. Examples would be theaters, amusement parks, dances, sporting events, and other performances and exhibitions not specifically listed.
“By increasing the excise tax rates, we can spread the cost of services across our millions of visitors and not only our thousands of residents. As residents, we can choose to pay meals, lodging, and admissions taxes versus other revenue streams that are required, and the improved revenue likely meets the known needs of our community for many years,” was the logic cited in the proposal for the tax imposition and increase.
The city will go over the proposed plan during its Work Session on April 7 at 4 p.m., City Council will meet on April 10 at 2 p.m. Both meetings will be held at the Stryker Center. The community can hear the City Council discuss the proposal and voice opinions during the next work session and regular meeting on April 7 and 10, respectively, according to the city.
For more information, visit the official City of Williamsburg website.
