MANASSAS PARK, Va. — Manassas Park homeowners could see their tax bills rise by hundreds of dollars under the proposed Fiscal Year 2026 budget, despite a planned reduction in the city’s real estate tax rate.
City Manager Carl Cole presented the $129 million budget to the Governing Body on April 22, 2025, proposing a one-cent reduction to the real estate tax rate, which would lower it to $1.395 per $100 of assessed value. However, because the average assessed value of residential properties increased by 7.48%, the typical single-family homeowner, with an average home value of $507,689, would still pay approximately $483 more in real estate taxes next year.
“This is a conservative, status quo budget that maintains services while preparing for tighter margins now that pandemic-era ARPA funding has ended,” Cole said during the meeting.
The budget also proposes rate increases for city services that are funded through separate enterprise accounts. Under Cole’s proposal:
- Water and Sewer rates would increase by 10%.
- Stormwater rates would increase by 25%.
- Solid Waste fees would increase by 10%.
For the typical water and sewer customer using 5,000 gallons per month, the proposed changes would result in a $10.43 monthly increase, or about $125 annually. Cole noted that while both Water & Sewer and Stormwater are utilities, the $10.43 figure specifically applies to Water & Sewer service, not all utility costs combined.
The rate increases are designed to make the city’s enterprise funds self-sustaining, ending the practice of subsidizing water, sewer, stormwater, and solid waste services with general fund revenue. Cole said deferring rate increases for more than a decade has created a structural imbalance that the city now must address.
“Subsidizing utilities strains our general fund and limits our ability to invest in services and infrastructure,” Cole said. “This budget begins to correct that, though it will take several years.”
Council members voiced mixed reactions to the plan, particularly regarding its impact on residents already facing higher property assessments. Some members, including Councilman Haseeb Javed, said they may not support raising utility rates this year, arguing that residents are already facing significant cost increases.
Others suggested exploring options for a larger real estate tax cut than the one cent proposed. “Our residents have carried a heavy burden for years,” said Councilwoman Stacy Seiberling. “We need to consider a greater reduction.”
Cole emphasized that the proposed tax rate reduction and utility rate adjustments were designed to maintain a balanced budget without compromising core services, while also preparing for future challenges, including the expiration of grant funding for 15 firefighter positions in 2027.
The Governing Body will hold further budget work sessions and is scheduled to vote on setting the final tax and fee rates on May 6, 2025.
