Harrisonburg council sets tax rate, approves CDBG plan and adopts FY2026–27 budget with minor amendment

Harrisonburg City Council approved a slate of fiscal and program items on May 26, adopting a real-estate tax rate, approving the city’s Community Development Block Grant (CDBG) action plan, and adopting the fiscal year 2026–27 budget with a minor amendment tied to the final school allocations.

Finance Director Larry Prop opened the public hearing on the tax rate, telling council that reassessments rose roughly 2.5%, which triggered the state-code public‑hearing requirement. "This is a public hearing to set the tax rate and approve that for next year at $1.01 for 100 of assessed value," Prop said. No in-person speakers and no callers were registered; council moved and voted to set the real-estate tax rate at $1.01 per $100 of assessed value.

Kristen McComb, the city’s CDBG program manager, reported that the city’s 2026 HUD allocation is $487,477, with $68,332.29 in unspent prior-year funds for a total of $555,809.29. The selection committee recommended funding for a city infiltration/inflow program ($199,500), two public-service projects and three city department projects (school zone signage upgrades, a basketball-court resurfacing at Ralph Sampson Park and an ADA sidewalk at Morrison Park). Council moved to approve the 2026 CDBG action plan and voted to adopt it as presented.

City Manager staff noted a small net reduction—about $1,000,000—from the initially proposed ordinance because final school allocations were adjusted after schools adopted their budget. Council moved to adopt the FY2026–27 budget and approve the appropriation ordinance as amended; the roll call vote recorded the listed council members’ 'Aye' votes and the ordinance passed.

Public Works Director Tom Hartman presented a routine resolution required for VDOT grants that (1) commits the city to provide required matching funds and (2) authorizes the city manager and deputy city manager to sign grant agreements; the council adopted the resolution by roll call.

Votes recorded in the meeting transcript (as read at roll call) were unanimous for the items listed in this summary. No further related ordinances or allocations were introduced at the meeting; staff noted follow-up steps to reconcile final school numbers and to publish allocation details for CDBG-funded projects once contracts and scopes are finalized.

Actions at a glance

- Real-estate tax rate: motion to set at $1.01 per $100 of assessed value; outcome: approved by roll call (listed council members recorded as 'Aye').
- 2026 CDBG action plan: motion to approve as presented; outcome: approved by roll call.
- FY2026–27 budget appropriation ordinance: motion to adopt as amended to reflect school allocation changes; outcome: adopted by roll call.
- VDOT project funding/signature authority resolution: motion to adopt; outcome: adopted by roll call.

Each of these actions was recorded on the meeting record and will be posted with the council minutes and associated staff reports.