Manassas Park city manager presents FY27 budget plan, highlights $650,000 cost-of-living package and $2 million bathhouse proposal

City Manager Carl presented the draft fiscal year 2027 budget at a Manassas Park work session, saying a 3% cost-of-living adjustment would cost “about $650,000 all told for this citywide” and that health‑care premium increases would add roughly $365,000 to next year’s budget.

Carl said state material funding covers much of the library’s operating materials and that the local contract with LSS funds 11 staff positions, enabling a 63‑hour weekly schedule. “The only thing we’re paying for is the contract and whatever sunk costs there are in the building,” he said, noting the state recently boosted the materials budget.

On capital spending, Carl said the city can likely afford about $10 million in CIP projects for FY27 and added a $2 million line for the Signal Bay bathhouse. He described the bathhouse and associated structure as two separate buildings under the building code, which could permit phased work. Carl said staff is reconciling FY24–FY25 ending fund balances and proffers and is “more than 50% sure” the city can fund the project but will confirm with detailed accounting before committing.

Staff identified a roughly $1.7 million HVAC package driven largely by repairs at the parks department and control‑system work in city facilities. Transportation projects were said to be funded largely by external sources; Carl noted only about $25,000 of the transportation slate would directly affect the general fund this year.

On potential new fees, Carl proposed exploratory analysis of a development‑focused technology fee. He said a 5% fee applied to permitting in FY25 would have produced about $500,000 in revenue and that staff will model whether to apply such a fee broadly or only to larger developments. Carl emphasized the fee’s intended use: funding an enterprise/technology administrator.

Carl reminded the body that, as a Virginia Dillon Rule jurisdiction, the city lacks unilateral authority to raise sales taxes and therefore the draft does not assume a sales‑tax increase. He also outlined the near‑term public schedule: a not‑to‑exceed rate setting on May 5, a public hearing on June 2 and anticipated adoption on June 16.

Next steps: staff will complete fund‑balance and proffer reconciliations, refine the CIP and fee analysis, and return with formal proposals for public notice and adoption.