| Williamsburg City Council members are reviewing a proposed budget that would increase the tax rates for meals and lodging and introduce a new admissions tax.
At a City Council meeting on Thursday, City Manager Andrew Trivette said his $112.3 million budget proposal is designed to accommodate funding needs for Capital Improvement Projects while supporting necessary infrastructure upgrades.
Trivette stressed that the city is facing slower growth amid economic cooling.
Under the original budget proposal, taxes on meals served by restaurants in the city would increase by 2%. Meanwhile, lodging taxes would go up by 3%. A new 10% admissions tax would be applied to all event ticket sales, with the exception of events sponsored by William & Mary.
Trivette unveiled a revised proposal on Thursday in response to some concerns expressed by council members about the tax hikes. The new proposal recommends a 1.5% meals tax increase and a 2% lodging tax increase.
The budget also calls for a spending freeze.
Proposed cuts include the elimination of 29 capital projects amounting to a total of $15.3 million. The freeze would be applied to nine city staff positions, leading to a cost savings of about $207,000, Trivette said.
Residents would also see an increase in the water rate by $1.59 per 1,000 gallons.
Trivette said the water rate adjustment is needed to address aging utility infrastructure. A total of $27.6 million is recommended to "modernize the utility system" in the city over the next 10 years.
Several departments submitted requests for additional funds, but they were all denied this year, with the exception of a 3% cost of living increase for staff, Trivette said.
The city received requests for 21 new full-time positions, but none were approved.
Two new utility positions, including an engineer and an inspector, were, however, recommended for approval. The positions would be funded by the new water rates if approved.
While no real estate rate increase is proposed in the upcoming budget, real estate assessments are projected to go up by about 4% in the coming year.
During a work session earlier in the week, council members also discussed a proposed $6.5 million downtown children's park, an idea that has ignited controversy among locals. Several residents who attended that meeting spoke out against the park, expressing concerns about noise, parking, traffic and costs.
The council unanimously agreed that funding should not be allocated for the park this year. However, Pons suggested leaving some money aside to explore possible opportunities for a future park.
More than a dozen citizens, including local restaurant owners, spoke out during the public comment section of Thursday's meeting. The speakers overwhelmingly urged the council not to move forward with the proposed meals tax increase.
Several speakers said the higher meals tax would cause local residents to take their business elsewhere.
Noreen Graziano, president of the Williamsburg Area Restaurant Association, said the increase would cause a drop in visitation and make it more difficult for already-struggling restaurants to survive. A water rate increase would further strain restauranteurs, she said.
"Local restaurants are already faced with rising food prices, increased spending for staff, decreased visitation and increased credit card fees," Graziano said. "Patrons of the restaurants are both locals and tourists. We feel the increase in the meals tax by 1.5% to 3% will drive locals out of visiting city restaurants."
Graziano said restaurant staff are already repeatedly asked about taxes on customers' receipts due to the current meals tax.
Mary Ellen Power and Tom Power, co-owners of The Cheese Shop and Fat Canary, said restaurants have already faced tremendous challenges since the Covid-19 pandemic and cannot afford more setbacks.
"As business owners in Williamsburg, we respectfully express our very strong opposition to the proposed increase to the meals tax, lodging tax and the newly created 10% admissions tax," Mary Ellen said. "It is our fear that tax increases on local residents and visitors alike will have a negative impact on the foot traffic that small, local businesses need to survive in this town."
Joy Abid, owner of Le Yaca French Restaurant, questioned the city's plans to spend $30 million on a new library, saying the subsequent meals tax increase could lead to the demise of local dining establishments.
"You're going to be putting [the restaurants] out of business because less and less people are going to come in. I've already heard from several people that they will dine outside of the city instead of dining in," Abid said.
Some of the speakers said the tax burden should be more evenly spread out among the city's residents rather than targeting the hospitality industry.
Vice Mayor Pat Dent asked citizens to continue reaching out to the council with budget feedback.
"I encourage everyone, if you have suggestions or you think there's ways that we can reduce spending in our budget, please reach out and let me know, because that's certainly what we're striving for," Dent said.
Council member Stacy Kern-Scheerer echoed Dent's comments.
"This is the time to continue to reach out to us," Kern-Scheerer said, asking residents to email board members with thoughts and ideas regarding where changes can be made.
An additional public hearing is set to take place during the May 5 work session. The budget is expected to be adopted on May 8. Citizens can email the city manager at citymanager@williamsburgva.gov or contact City Council members directly at council@williamsburgva.gov.
The full proposed budget for FY2026 can be viewed here. | 
No comments:
Post a Comment