“Conservative” might not be the first word that comes to mind when describing the current Fredericksburg City Council, but it is how Councilor Will Mackintosh characterized the budget he and his colleagues took another step toward finalizing Tuesday night.
“I think what we’ve arrived at here is a conservative budget in the old school, kind of small-C sense of the word conservative,” Mackintosh said. “All of us sitting around this horseshoe see choppy waters ahead in the next year, and we’ve had to make some really tough decisions around the tax rates and the spending levels and the ability to hire the people we need to hire for our city. We think there’s a lot of turbulence ahead.”
Bracing themselves for the worst, city council voted unanimously on first reading to set a real estate tax rate of 80 cents per $100 of assessed value. The new rate, which goes into effect with the start of the new fiscal year in July, marks a four-cent increase from last year.
A public hearing on the tax rate, continued from April 15, didn’t feature any in-person speakers. But two letter-writers voiced opposition to the increase.
City resident Katherine Williams noted that rate hikes will be felt more profoundly in the context of federal job losses and government contractor positions.
“I think the proposed increases feel tone-deaf considering the current state of the economy and job losses,” Williams said.
City council had previously advertised a six-cent increase, and Ward 2 Councilor Jon Gerlach noted that the body could call a special meeting between now and June to adjust course.
Later in the meeting, council approved on first reading an 8% increase to water rates and a 6% increase to sewer rates, effective July 1.
Ward 1 Councilor Jason Graham said that the rate hikes are “essentially mandated,” as certain capital projects, such as planned upgrades to the wastewater treatment must be funded through those utilities.
“While I hate to raise fees on something that is so fundamental to daily life, the current state law gives us no choice in this matter,” Graham lamented.
School funding also moved forward by a 7-0 vote on first reading, with councilors approving a transfer from the city’s general fund in the amount of $37.2 million. That’s $1.5 million less than the Fredericksburg City Public School board requested in its proposed FY2026 budget.
On May 13, city council will hold a public hearing on planning and zoning fee increases, as well as conducting second readings on the FY26 budget and real estate tax rate. The budget and tax rate are then slated for adoption on May 27.
In other business, a long-discussed community outreach case manager position came to fruition as a part of an MOU between the city and Rappahannock Area Community Services Board (RACSB). City Manager Tim Baroody said that approval provides 14 months of funding for the position ($112,575 annual salary), which could be filled as soon as May 1.
“They’re similar to any front door for a community,” Sam Shoukas, program director for the Fredericksburg Continuum of Care, said of the outreach position. “We would support them with training to make sure they can directly refer to all services.”
