Manassas Budget Public Hearing Approaches, Range Of Tax Rate Scenarios Considered

MANASSAS, VA — The public hearing is approaching in late April for the Manassas city budget, which could increase average homeowner tax bills despite a proposed flat real estate tax rate.

Since the budget was proposed to Manassas City Council on Feb. 24, there have been various work sessions on different components. Now, a public hearing on the budget, including the Capital Improvement Plan and tax rates, is scheduled for 5:30 p.m. on April 28. A work session on matters from the public hearing and any outstanding issues will follow at 5:30 p.m. on April 30. First reading of the budget adoption will be at 5:30 p.m. on May 12, and second reading of tax rates and other rate ordinances is at 5:30 p.m. on June 9.

The $327.881 million budget would be a 1.7 percent decrease from last year's 333.58 million budget. That decrease was attributed to last year's budget using one-time funds for property acquisitions — the city purchased the former Marsteller School site and Manassas Shopping Center.

While the budget proposes keeping the real estate tax rate at $1.26 per $100 of assessed value, City Council provided an advertised rate of $1.28 per $100 of assessed value on March 5. That advertised rate isn't the final tax rate, but it is the highest that could be adopted during the budget process. City Council is eyeing other options like a tax rate reduction as well.

City Council received scenarios of how different real estate tax rates between $1.23 and $1.28 would affect residential tax bills with appreciating property values. Under the $1.28 rate, average residential tax bills would total $5,863 per year, reflecting a $520 increase from the last year. The existing $1.26 rate would increase average tax bills by $428, with an average annual bill of $5,772. A three-cent reduction to $1.23 would still increase the average tax bill by $291 to an annual $5,634.

Since the budget was proposed, the Manassas City School Board approved the school division's budget, which is subject to approval of city and state funds. The Manassas City Public Schools operating budget tops $146.1 million, and the estimated capital improvement plan budget for 2025-2026 is $27.04 million.

In a letter to Mayor Michelle Davis Younger, School Board Chair Suzanne Seaberg said employee pay was the top budget priority. The MCPS budget includes $5.2 million for salary increases and a reduction of the employee share of health insurance premiums through a $1 million employer contribution increase. With the new budget, staff pay increases would average 5.5 percent in fiscal year 2026.

In the proposed city budget, city staff would receive a 3 percent merit pay increase as well as cost of living adjustment increases.

City staff also recommended removing the vehicle license tax, which is a $25 fee for vehicles and $10 for motorcycles typically charged alongside the personal property tax on vehicles. That would cost $950,000 and is considered an unfunded request at the flat tax rate.

The full budget proposal is available on the city's budget website.