WILLIAMSBURG— The City of Williamsburg announced its proposed Fiscal Year 2027 budget on March 30 and notably features an increase to the water rate and no real estate tax increase.
The city says it has long prided itself on delivering high-quality service while managing public resources with discipline and foresight. Adding that the Fiscal Year 2027 budget proposal focuses on maintaining excellence in core services while investing in the infrastructure that will sustain us for decades.
The total proposed budget is $121,154,362. With funds being delegated between the General Fund ($56.03M), Capital Improvement Projects ($41.63M), Utility Fund ($12.19M), Tourism Development Fund ($6.86M), Public Assistance Fund ($4.06M) and Quarterpath CDA ($0.38M).
The proposal recommends:
- no change to the real estate tax rate of 62 cents per $100 of assessed value.
- a 7% water rate increase, from $6.89/1,000 gallons to $7.37/1,000 gallons for City customers, to fund water and sewer infrastructure upgrades.
- adding 14 full-time equivalent (FTE) positions, for an increase in costs of approximately $884,000 for the General Fund and $97,000 for the Utility Fund.
Budget Drivers
According to the city, budget drivers are the main factors that influence and cause changes in expenditure and revenue levels. The drivers cited in this year’s budget are education, debt service, utility investment and excise tax revenue.
Education
This is the first year of the new 10-year contract signed between the City of Williamsburg, James City County, and the Williamsburg James City County School System. The budget sites for this school year, the City has 1,190 students enrolled. The City’s per-student cost of operating the school system is $12,609. The total school system accounts for 14% of this year’s total budget – 23% of the City’s operating budget ($14,450,000) and 5% of the Capital Improvement Plan ($1,989,441) – for a total of $16,439,441.
Debt Service
The City says its debt policy limits debt service to no more than 12% of General Fund expenditures. In the FY27 proposal, existing debt service accounts for 5% of the General
Fund spending. It sights in the proposed budget that debt service for utility infrastructure upgrades ($877,000) is fully supported by dedicated revenue from the Utility Fund. While the Historic Triangle Recreational Facilities Authority holds the debt for the Greater Williamsburg Sports & Events Center, we will contribute Tourism Fund dollars ($2.5 million annually) to help HTRFA meet its debt service.
Utility Investment
The proposed FY27 budget includes an increase in the utility rate from $6.89 to $7.37 per 1,000 gallons consumed – a 7% increase. The city says the change would be expected to raise the average residential utility bill by approximately $2.88 per month. This is continuation of the 10 year plan made last year upgrade the city’s aging water infrastructure, which will require an investment of over $27 million.
Excise Tax Revenue
In January the City of Williamsburg increased the meal and lodging tax as well as introduced an admissions tax. The city says this taxes are projected to increase revenue by $1.5 million from meals, $800,000 from lodging, and $900,000 from admissions collections for a total of 3.2 million. The city says that This additional revenue will help it meet rising
costs associated with our contractual obligations to regional partners, including $2.3 million more for Williamsburg-James City County Schools, Williamsburg Area Transit Authority, and the Virginia Peninsula Regional Jail.
No increase to any of these taxes has been proposed in this years proposed budget.
CIP Funds
The proposed FY27 CIP has projects totaling $42 million – $36 million in City projects, $2 million for the City’s share of school projects, and $4.2 million in debt service – for an increase of $1 million since last year. The FY27 projects are funded by $6.4 million in sales tax and interest income, $5.8 million in grants, $2.7 million transfer from the General Fund, $5.8 million from CIP Reserves, and $40,000 in Courthouse maintenance funds.
The city says that the FY27 proposal outlines the next steps in the generational replacement of critical municipal structures through a multi-year financing
plan, including the new downtown Williamsburg Regional Library ($20
million). It also restores full funding for key street maintenance initiatives,
such as the annual repaving program ($680,000) and upkeep of Historic Area streets ($330,000).
The current budget is not finalized. The City Council will discuss this proposal and citizens can voice opinions during the next work session and regular meeting on April 6 and 9.
Citizens can also email the city manager or Council members directly at [email protected] or [email protected]. City Council will consider adoption of the FY27 budget on Thursday, May 14.
To read the full budget, please visit the official budget page.
