After some discussion Thursday night, Staunton City Council approved a 2026 budget with a 91-cent tax rate.
The tax represents a two-cent tax increase, which drew discussion among the seven members of council.
“There are no other changes to tax rates or fees proposed,” said Staunton Chief Financial Officer Jessie Moyers Thursday night.
The 2026 budget of $164,535,789 includes $112,846,285 for the city and $51,689,504 for Staunton Schools.
The budget will fund four new positions needed at the city’s new Juvenile & Domestic Relations Court under construction on the West End: a full-time sheriff’s deputy, a part-time sheriff’s deputy, a full-time custodian and a part-time custodian.
A 68 percent funding increase was necessary for a new location of a local municipal animal shelter, and $119,400 more is included in the budget.
A one-time $30,000 allowance is not included for The Arcadia Project in next year’s budget to maintain acquisition of state funding to complete renovations at 125 E. Beverley Street. However, council has indicated a plan to add a budget amendment to the current budget and use revenue from the sale of a parcel in Staunton Crossing for the allowance to Arcadia. Council will further discuss the possibility at its May 22 regular meeting.
The city’s five-year Capital Improvements Projects plan will be funded at $78,729,917, including $287,261 each for the West End, Uniontown and Staunton Library reserves.
“We just have so many things facing us right now,” Vice Mayor Brad Arrowood said of the city’s budget needs for projects and infrastructure.
Multiple projects were already planned, then the city was informed in early March from a structural engineer’s evaluation of tunnels under the Wharf Lot that much work is necessary under the Wharf. Just a design for a new Wharf will cost the city $360,000, plus construction costs.
“That falls on us,” Arrowood said.
As far as the city’s tax rate, Arrowood said that he and other members of council are “trying to keep Staunton affordable.” He added that it would be irresponsible of council to move forward with a budget that did not include “basic infrastructure needs.”
Council member Jeff Overholtzer asked how the city will pay for the Wharf Lot design.
Meyers said that stormwater funds are in place to pay for the design. Last year, the city budgeted $350,000 for a Wharf design.
“At the end of the day, our responsibility is to take care of the city,” Staunton Mayor Michele Edwards said.
She said she does not want to put her head in the sand and ignore infrastructure needs. The city’s most vulnerable must also be supported in the city’s budget.
“That’s what we’re meant to do,” Edwards said of supporting the city’s vulnerable.
Edwards also said she does not want to raise city taxes “but I saw the need for it” based on what city staff presented to council.
“We know these things aren’t going away,” said Council member Alice Woods of infrastructure needs.
However, council must also consider that city residents are living in uncertain times and how raising taxes in Staunton might affect them.
“It’s a balance,” Woods said.
She then proposed raising the city tax rate to 90 cents, not 91 cents, from 89 cents. Overholtzer agreed with a one-cent increase.
“I agree that a reasonable compromise would be to go to 90 cents,” Overholtzer said. Council could raise the tax rate to 91 cents next year.
He suggested the city could raise the cigarette tax from 30 cents, because Augusta County just raised its from 30 to 40 cents.
“There is a significant portion of our population that is income-strained,” Overholtzer said of 46 percent of Staunton residents. In Augusta County, 40 percent are income strained. “So we fare somewhat worse than some of our neighbors in that respect.”
Overholtzer made a motion for a 90 cent tax rate for every $100. Woods seconded the motion.
Council member Adam Campbell said that he could see a 90 cent tax rate for the short term.
“I’m fully aware of the burden we’re placing on our residents for the short term,” Campbell said.
But he is in support of infrastructure needs in the city.
Woods said that two years ago city council decreased the tax rate from 92 cents to 89 cents.
“It’s not like we’re being irresponsible with funding. It’s there,” Woods said of the 2026 budget.
She added that nobody knows what will come next year, tomorrow or in six months.
Campbell said that city council does know it needs a five-year CIP plan.
Edwards said the city needs to save for future needs and cannot keep saying that it cannot afford to fund what needs to be taken care of.
“Putting it off, in the long run, is going to cost more,” Edwards said of costs.
Overholtzer said that going with a 90 cent tax rate is not “kicking the can down the road.”
Council member Corrie Park said that it is “more reasonable to be proactive than reactive” to budget needs. For example, the Virginia Department of Health is facing grant funding cuts from the federal government. Some costs may come back to cities like Staunton.
Council member Blake Sheppard said that a lot of unknowns exist for the future and the city will not be able to depend on federal or state funding.
“Look what we just went through with the roundabout,” Sheppard said, reminding his fellow council members that the city thought the Virginia Department of Transportation had funding covered for a roundabout at the intersection of Greenville and Richmond avenues.
Staunton has neglected infrastructure needs for years, according to Sheppard, and they must be addressed, but 46 percent of city residents cannot pay more in taxes.
“But there’s a percentage in this city that can afford to pay more,” Sheppard said.
He said he has struggled with the decision of what tax rate he would support, and he supported 91 cents.
In a 4 to 3 vote, Overholtzer’s motion to approve the 2026 budget with a tax rate of 90 cents, failed. Park, Sheppard, Campbell, Arrowood and Edwards did not support 90 cents. Woods and Overholtzer supported a 90-cent tax rate.
In the end, Campbell proposed approval of the 2026 budget “as presented” with a 91-cent tax rate. Overholtzer said that he would now support the 91-cent tax, although he thought a 90-cent tax would have been better for residents.
Six members supported the 91-cent tax, but Woods disapproved.
The 2026 budget for the city of Staunton is for July 1, 2025 through June 30, 2026.
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Staunton: The Arcadia Project requests $30K in 2026 budget for restoration costs
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Rebecca Barnabi
