Fredericksburg’s City Council unanimously approved on Tuesday night a real-estate tax rate of 84 cents for $100 of assessed value for the fiscal year that begins on July 1.
That’s a four-cent increase from last year, when the rate was also increased by four cents. Coupled with a one-cent fire tax that remains unchanged, the effective tax rate in the city will be 85 cents.
“It’s a tough season for us when we have to do [tax] increases,” Ward 1 councilor Chuck Frye said just prior to the vote. “Maybe in the future, with the right investments done in the city, we won’t have these conversations… Who knows, maybe we won’t have to continuously raise tax rates.”
Councilors also unanimously approved the Fiscal Year 2027 budget in the amount of $141.5 million. More than 50 percent of the operating budget will go toward education ($38 million) and public safety ($36.4 million).
The budget also includes nine full-time city positions: a permit technician, a records technician, a revenue specialist, four firefighters/EMTs, a human resources policy analyst and a data governance manager.
In other business, city council approved updated water and sewer rates and EMS transport fees. For most residents with a standard 5/8” meter, water bills are expected to climb by about 8%, or $2 per month.
At-large councilor Jannan Holmes noted that the city utilizes “compassionate billing” for those unable to cover ambulance trips. Finance Director Amanda Six explained that the city’s police precludes collection efforts in those cases.
“If they have to go to the hospital and can’t pay, it’s not like they’re going to have to sell their house,” Holmes said.
City council will formally adopt its budget on May 12, when it votes on a second reading. That vote will include several budget amendments, including $100,000 for the installation of cameras in all city parks.
