The memo that Fredericksburg Deputy City Manager Mark Whitley circulated during Tuesday’s City Council work session did not elicit joy among its recipients.
“None of these are things that we want to do,” Mayor Kerry Devine said of the document, which outlined various appropriation strategies for the FY 2026 budget.
The proposed actions included hiring slowdowns, pay cuts and other measures intended to reduce expenditures in the face of uncertain economic conditions.
“Nothing is going to cost our employees less,” said councilor Jannan Holmes (At-large) of compensation, “and we still have work to do.”
City staff had initially proposed appropriating the FY26 budget at 90%, but following a joint work session with the Fredericksburg City School Board earlier this month, they revised their formula, roughly cutting withheld funds in half, from $12 million to $6 million.
“A $12 million target could force some very drastic things up front,” Whitley explained. “We kind of pulled back from that, and thought $6 million might be more appropriate.”
The work session opened with a discussion of several propositions related to the FY2026, including utilization of the revenue stabilization fund, which was created last year as a strategic reserve of sorts.
A proposition introduced by Councilor Will Mackintosh (at-large) would reduce the amount drawn from the fund in FY2026 by $585,000, while maintaining a balanced budget with an additional cent on the real estate tax. City council advertised a rate increase of 6 cents per $100 of assessed value, a number they can reduce but can’t increase prior to approval.
“I’m worried about keeping enough powder dry for adverse economic conditions,” Mackintosh said.
Ward 1 Councilor Jason Graham agreed, citing fears over monies for Head Start, a federally-funded early education program that serves economically disadvantaged children and their families.
“I would hope that we could hold onto [Head Start] with every ounce of energy we have,” Graham said.
Councilors also agreed in principle to increase funding for two local organizations that provide homelessness services, Loisann’s Hope House and Empowerhouse, while making a corresponding reduction in contributions to the Thurman Brisben Center.
The city’s contributions to Empowerhouse and LoisAnn’s Hope House will be increased to $29,000 and $45,000, respectively, while contributions to Thurman Brisben will be reduced to $9,350.
An additional $5,000 contribution will be made to the Fredericksburg SPCA.
Other line items discussed included funding for Fredericksburg Main Street, which is requesting an additional $50,000, for a total of $125,000. City staff cited statistics from Main Street Virginia that state every dollar spent on Main Street programs yields $8 in return.
“Could we look at it as an investment as opposed to an expenditure?” asked Councilor Jon Gerlach (Ward 2).
Later Tuesday evening, a public hearing on the budget, water and sewer rates and real estate tax rate drew just a handful of public speakers.
Thurman Brisben Center CEO David Cooper appealed to city council to maintain its current level of funding at $80,000. Two weeks ago, Councilor Jannan Holmes cited Thurman Brisben’s request not to be evaluated by the Fredericksburg Continuum of Care — the federally mandated local planning body for homeless services — as a rationale for reallocating funds.
Cooper, however, said Thurman Brisben continues to serve members of the homeless population, including a growing number of school-aged children.
“We continue to serve folks that are literally homeless and folks that are functionally homeless, and folks that are marginally homeless in our area,” Cooper said.
The public hearing will be reopened on April 22 before the budget comes up for a vote in May.
