Manassas Park city manager proposes FY27 budget with 1.5-cent real estate tax cut and new staffing requests

City Manager Carl presented the governing body with his initial FY27 budget proposal on April 7, recommending a modest tax cut, continued fiscal reserves and several targeted staffing and program requests.

Carl said the proposed real estate tax reduction would lower the rate from 139.5 to 138 cents per $100 of assessed value, a 1.5-cent cut he framed as possible because the city's debt obligations have decreased in recent years. "I'm recommending the real estate tax be reduced by 1.5 cents from 139.5 to 138 per $100 of assessed value," Carl told the council. He said the city still maintains a 15% operating reserve target and that his proposal assumes moderate inflation and a 3% cost-of-living adjustment built into salary lines while awaiting a completed class-and-comp study.

The proposal includes several new or adjusted positions the manager recommended funding now or phasing in: an enterprise systems administrator to support an upcoming Tyler ERP implementation; an emergency management program coordinator; an assistant program manager in community development and public works; a part-time building inspector; and the reclassification of a police captain to a major/deputy chief. Carl estimated the total recurring cost of recommended new positions at roughly $422,000 (partially offset by grants), and proposed a technology fee targeted at developers to help pay for ongoing systems administration costs.

Carl also reviewed the city's improving revenue picture and declining debt service, saying that the city's total outstanding non-UOSA debt has fallen to just over $49 million with further declines expected, freeing future flexibility for either additional tax relief or capital spending. He did not recommend immediate changes to enterprise fund rates pending the completion of a water/sewer rate study; a public town hall on that study was scheduled for the week.

Next steps: staff will present department-level materials at upcoming meetings, the planning commission will review the CIP, the city expects to publish rate notices on May 5, hold a public hearing on the budget on June 2, and adopt the budget on June 16 if timelines hold.