The Manassas City Council on May 11 approved the city’s FY 2027 budget, setting the real estate tax rate at $1.24 per $100 of assessed value while repealing the $25 annual vehicle license decal fee, offering some direct relief to households even as assessments and utility rates continue to climb.
The budget, which takes effect July 1, passed with support but drew a dissenting vote from Councilwoman Theresa Coates Ellis. It maintains healthy reserves at approximately $33 million — about 20% of the budget, well above the city’s 15% target — while funding full staffing for Engine 501, competitive salaries and health insurance, schools, and state-mandated social services.
Finance Director Anna Bergeron explained the tax rate decision during the council discussion. The rate drops from the prior year’s $1.26, with each cent equaling roughly $850,000 in revenue. A substitute motion by Ellis to lower it further to $1.23 by drawing on the $1.2 million contingency fund failed. Bergeron noted that assessments have risen, meaning many residents will still see higher tax bills despite the rate cut. Reaching a truly flat bill with no increases would have required dropping to $1.18 — an additional $5.1 million cut.
“The assessments did go up. That is what really is impacting the bills because the rate goes down, assessment goes up, the bills are gonna go up,” Bergeron said, summarizing the trade-offs.
The council also eliminated the $25-per-vehicle annual decal fee. According to the commissioner of the revenue, the average household with 2.25 vehicles will save about $50 annually, with a citywide impact of roughly $1 million. Councilwoman Sonia R. Vásquez Luna, a longtime advocate for the repeal, highlighted its value.
“I have been advocating for this… These will actually save households an average of fifty dollars,” Vásquez Luna said. “To me, it is important. It does bring a relief not only to homeowners but to those who have a car for a sticker that we no longer use.”
Ellis supported the repeal, noting the city no longer issues physical decals and that license plate readers can assist with enforcement where needed. Chief Douglas W. Keen clarified via Ellis’s question that readers identify registration but have limited routine enforcement applications beyond specific parking districts.
The broader FY 2027 package includes utility rate increases for water, electric, and stormwater, as well as airport fees, after several years of flat or minimal adjustments. Enterprise funds remain self-supporting, with data centers paying full consumption plus surcharges. The personal property tax rate for data center computer equipment was set at $4.50 to match Prince William County.
Council discussions emphasized retention, infrastructure catch-up, and long-term stability. The budget funds full staffing for Engine 501 and addresses increases in health insurance costs. Reserves and the contingency fund were held for risks including data center assessment appeals (such as Brickyard), potential federal cuts, and other unknowns.
Ellis dissented on the real estate rate, citing spending on affordable housing projects, roundabout plans, and ongoing disputes over data center assessments. She argued for using contingency funds for immediate resident relief.
“I did not vote for some of the things that happened with the money our residents are giving the city,” Ellis said, referencing specific capital projects. “When we’re starting to put money into projects that are for affordable housing, and then we raise your tax bill, it makes no sense.”
Councilman Tom Osina acknowledged the budget was not perfect but supported its balance of services, staffing, and the decal repeal. Councilwoman Ashley Hutson and others echoed the need for fiscal responsibility to avoid future rate hikes.
Public Input Reflects Affordability Concerns
Public comment was passionate and lengthy, focusing on the referenced 22% budget growth, rising assessments and utilities, contingency fund use, zoning enforcement, and development pace. Residents urged more relief for long-term and fixed-income households.
Mary, a city resident since 2009, said: “You guys are trying to push us out… We are all hurting. Everybody, this whole country is hurting right now, and we’re increasing our budget by twenty-two percent. That’s insane to me.”
Lynn Forkell Greene, referencing past promises, urged use of the contingency fund: “Government should not be making money… You have the ability to do it. You have the tools at your disposal to do it.”
Tim Plevniak questioned priorities around real estate purchases versus utility reserves and called for listening to residents. Janet Plevniak read emailed concerns from Zach Murphy and others on vehicle stickers (suggesting fee waiver with retention for enforcement), zoning/overcrowding, and accountability for incentives like those to Micron. Other speakers, including Ray Brady and Jane Jones, raised concerns and development impacts.
Others praised utilities but warned of future data center strains on electricity and water, while seeking more police presence at evening events.
Officials Stress Responsibility and Relief
Mayor Davis-Younger and City Manager Burke emphasized stewardship. Bergeron highlighted that maintaining reserves and contingency funds supports the city’s bond rating and prevents future tax increases. “It helps to ensure that the $1.24 does not need to be raised next year,” she said of the contingency fund.
Vásquez Luna and others noted efforts to retain staff and invest in schools and infrastructure after years of deferred utility adjustments. Osina pointed to full Engine 501 staffing and the decal repeal as resident-focused wins.
