Moments before the Fredericksburg City Council was poised to set a real estate tax rate of 80 cents per $100 of assessed value, one councilor asked, essentially, what’s the hurry?
“With all I’m hearing with uncertainty this, uncertainty that, I’m questioning why we’re doing a second read when we still have plenty of time left in case we get more certainty,” Ward 2 Councilor Jon Gerlach said Tuesday night.
In response to a question for Gerlach, Assistant City Manager Mark Whitley explained that the deadline for councilors to approve both the real estate tax rate and the overall fiscal year 2026 budget is June 30. City council has three regularly scheduled meetings in that timeframe.
Councilor Jannan Holmes (at-large) said that while she shared some of Gerlach’s concerns, she’d prefer to address changing needs through budget amendments.
“We’re just in uncertain times, and I don’t know that [six] weeks is going to clear the uncertainty,” she said.
Whitley, however, noted that while the budget itself can easily be amended, changing the tax rate could require another public hearing.
Ward 1 Councilor Jason Graham pointed to $6 million in holdback mechanisms and appropriations already baked into this year’s budget as having accounted for the nebulous economic outlook.
“At this point, I think we have what we need to move forward,” said Graham, who works in consultancy for Booz Allen Hamilton. “I think we already have the mechanisms in place if the downsides occur.”
The motion ultimately passed 6-1, with Gerlach dissenting. The budget itself passed with minimal drama, as councilors voted 7-0 on first read to approve a general fund totaling $136.9 million, a 7% increase from last year.
“This feels like the end of, dare I say, a half-marathon,” said Councilor Will Mackintosh (at-large). “We’ll get to the other half in the middle of the year.”
Councilors were also unanimous in approving on second reading new water and sewer rates. According to an attached memo, the new rates will result in an 8% increase in water fees and a 6% increase in sewer fees for city residents.
On school funding, city council embraced a unique tweak, voting to shift $200,000 from capital funding to the school’s operating fund. Coupled with additional state funding, “option 2” means that Fredericksburg City Public Schools’ operating budget will increase to $64.8 million for FY26. The division’s capital budget will decrease by $100,000 to a total of $400,000.
No one spoke during a pair of scheduled public hearings held earlier in the meeting. The first concerned the fee schedules for zoning applications and fees for building services.
City finance director Amanda Six explained that a budget amendment for FY25 includes $142.6 million in carryover for the wastewater treatment fund, “a shockingly large amount” that accounts for most of the $175.8 million in carryover from previously approved capital projects.
Mayor Kerry Devine also proclaimed May 18 as Marine Corps Historic Half Day. The mayor will serve as the honorary starter for both the 18th running of the half-marathon and the Semper Fred 5K on Saturday.
