Poquoson council sets $1.15 tax rate after debate over employee pay and mandates

Poquoson City Council on the continuation of its May 11 meeting approved an ordinance setting the real‑estate tax rate at $1.15 per $100 assessed value, a measure council members said is intended to help fund pay increases for city employees.

Mayor Hu, who led the work session, told colleagues the revenue from the proposed levy was targeted to pay increases: "the increased revenue that will be produced if this passes goes 100% to pay increases for city employees." He also said the council intends that a portion be made available to school employees "because they are also public employees." The council passed the motion to set $1.15 by a vote of 5–1; the mayor voted no.

The debate focused less on new programs and more on how to respond to three cost pressures the mayor described as "beyond our control": a rising property‑tax exemption program for disabled veterans (which the mayor said totals about $2.7 million this year), an increase in employee health‑insurance costs (about $563,000), and local cost index adjustments to school funding. The mayor argued those factors together represent roughly $4 million of budget pressure and equate to about 16 pennies on the tax rate.

Council members emphasized two themes in the discussion: protecting municipal services and employees through compensation adjustments, while pursuing longer‑term revenue diversification and fiscal sustainability. One council member urged a multiyear compensation plan, saying immediate increases alone are not a long‑term solution; another said a 1‑cent increase would allow roughly a 5% raise, while the three‑penny option discussed earlier was tied in some remarks to a larger, citywide 10% pay target.

Council members also addressed community concerns raised in recent public feedback. A council member summarized outreach she had compiled from social media, email and phone messages and said recurring themes included worries about affordability for retirees and fixed‑income residents and requests to explore alternatives to homeowner tax increases.

Beyond the real‑estate levy, the council amended and adopted the companion personal‑property levy ordinances and an appropriation ordinance for fiscal year 2027. Those votes were unanimous (6–0). The council also adopted a resolution to accept Department of Conservation and Recreation flood sensors for three sites and approved an ordinance accepting Byrne Justice Assistance Grant funding for the police department; both measures passed 6–0.

Votes at a glance

- Ordinance to set real‑estate levy at $1.15 per $100 — Passed 5–1 (Mayor Hu opposed). Council votes recorded: Councilman Freeman Yea; Councilwoman EMTT Yea; Councilman Fi Yea; Councilwoman Hubard Yea; Vice Mayor Bunting Yea; Mayor Hu No.

- Ordinance setting personal‑property levies and aligning manufactured‑home levy with real‑estate rate — Passed 6–0.

- Ordinance appropriating funds for fiscal year 2027 — Passed 6–0.

- Resolution to accept Department of Conservation and Recreation flood sensors at Easton Cove, Lions Creek and NW branch of Back River — Passed 6–0.

- Ordinance accepting Byrne Justice Assistance Grant funding for the police department — Passed 6–0.

The council concluded the work session by directing staff to continue planning a multiyear compensation strategy, to pursue regional and state advocacy about the fiscal impact of the disabled‑veteran tax‑exemption program, and to consider community ideas about revenue diversification. The meeting was adjourned; the council will carry forward any required implementation steps in subsequent meetings.