Manassas sets FY 2027 tax rate, ends vehicle fee

Summary

Manassas approved its FY 2027 budget, lowered the tax rate, and ended the vehicle decal fee, though rising assessments may still increase bills.

Why this matters

The budget will affect Manassas residents starting July 1 through property taxes, utility charges, and the end of the vehicle decal fee. It also shows how city leaders weighed short-term tax relief against reserves, staffing, and future financial risks.

Manassas City Council on May 11 approved the city’s fiscal year 2027 budget, setting the real estate tax rate at $1.24 per $100 of assessed value and repealing the $25 annual vehicle license decal fee.

City officials said it keeps reserves at about $33 million, or roughly 20% of the budget, 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 said the tax rate fell from $1.26 and that each cent equals about $850,000 in revenue. Ellis proposed lowering the rate to $1.23 by using the $1.2 million contingency fund, but that motion failed.

The council also removed the vehicle decal fee. According to the commissioner of the revenue, the average household with 2.25 vehicles will save about $50 a year, for a citywide revenue impact of about $1 million.

The budget includes increases in water, electric, stormwater, and airport fees. Officials said those funds remain self-supporting. The personal property tax rate for data center computer equipment was set at $4.50 to match Prince William County.

Council members said the budget aimed to balance resident relief, staffing, infrastructure, and long-term stability. Officials said reserves and contingency funds would help manage risks, including appeals of data center assessments and possible federal cuts.

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