The City of Fredericksburg’s FY 2027 budget includes a $1 million transfer from the Fredericksburg City Public Schools operating fund balance to the city’s operating fund.
The transfer was detailed during a budget work session and second reading ahead of final approval on May 12, 2026. Deputy City Manager Mark Whitley noted that city and school staff, along with Vice Mayor Charlie L. Frye, Jr. and Council Member Jannan W. Holmes, met regarding the move. Whitley described it as “a good option” that allows the schools to accomplish their goals.
“I saw the superintendent just ran into her over the weekend, and she was thankful for that as well,” Whitley said. “They would be able to do what they needed to… which essentially are our goals too.”
Both Holmes and Frye read standard ethics disclosures due to their connections to the school system. Council Member Jannan W. Holmes, a contract social worker providing mental health services for Fredericksburg City Public Schools, and Vice Mayor Charlie L. Frye, Jr., whose wife is employed by the system, each affirmed they could participate “fairly objectively and in the public interest.”
The transfer supports shared city-school objectives with no net impact on the overall budget. Officials also referenced potential future adjustments related to state revenue and public safety pay plan reallocations.
The $1 million transfer was one element of the broader FY 2027 budget discussion, which also covered proposed water and wastewater rate adjustments (effective July 1, 2026), tax rates, EMT fees, boardroom availability fees, and other charges. Much of the session focused on a new two-tier water/sewer consumption structure designed to have higher-volume users contribute more toward major infrastructure upgrades, such as the wastewater treatment plant and Motts Run facility.
The $1 million transfer comes as the school division faces ongoing public criticism over spending practices. The Fredericksburg Advance has reported extensively on School Board travel expenses, including first-class flights and other costs that exceeded allocated budgets, prompting a special audit that remains delayed.
