Budget Process
Summary
The Budget Process is a recurring municipal topic covering the City's annual general fund budget, Capital Improvement Program (CIP), and related financial planning activities. It was on the agenda at the January 11, 2025 City Council Retreat, where presentations on both the budget process and the CIP process were scheduled for 8:30 a.m., though no minutes or recorded outcomes exist for that session. By late March and early April 2026, the City was described as being roughly halfway through the FY 2027 budget process, with staff publishing eight budget memos and planning to introduce a budget ordinance in April 2026 with an associated public hearing. Key themes discussed during this cycle included long-term debt levels relative to the City's debt service policy, use of expiring ARPA dollars (set to expire at end of calendar year 2026), capital investment needs over the next five-to-ten years, and the structure of strategic partnerships and potential dedicated revenue sources. By September 8, 2026, the FY 2027 budget process had concluded, with the Council unanimously approving (as part of a consent agenda) FY 2027 fund reappropriations and DRPT grant agreements for CUE transit totaling approximately $4,967,570 that had been previously appropriated through the FY 2027 budget process.
Open questions & options on the table
- Status and outcome of the April 14, 2026 meeting at which budget ordinance introduction and public hearing were anticipated.
- Whether a new dedicated revenue source (discussed April 7, 2026, with Councilmember Hall expressing support) was ultimately introduced and adopted, and whether any portion was directed to economic development.
- Flexibility and final rules governing use of public transportation funds tied to the referendum/bond question discussed in July 2026 — characterized at the time as 'to be determined' pending further state-level guidance and local discussions.
- Whether the hybrid/tiered strategic partnership funding structure discussed in April 2026 was formalized through the budget process.
What members have said
On March 24, 2026, Councilmember McQuillan asked what guardrails exist to prevent the City from exceeding its own debt service policy, referencing a slide showing long-term liabilities projected at 180% of revenue.
On April 7, 2026, Councilmember Hall expressed strong support for introducing a new dedicated revenue source before the budget adoption deadline, stating she did not want to miss the opportunity and was open to directing some portion toward economic development. She also noted (and clarified) that she was not suggesting a referendum for a separate item under discussion, and indicated she saw value in public engagement opportunities during the budget process.
On April 7, 2026, Councilmember Bates noted that the budget process already includes numerous work sessions and public hearings that allow public feedback on CIP items, and acknowledged that Virginia also allows for periodic votes on related matters.
Positions as recorded in meeting minutes; votes without recorded comment aren’t summarized.
Discussion time
Minutes of named discussion per transcribed meeting.
Full history
[2] A presentation on the City budget process was scheduled for the Council retreat; no outcome recorded as no minutes or actions report exist.
[6] The city manager was authorized to sign FY 2027 DRPT grant agreements for CUE operating and capital assistance totaling approximately $4,967,570 across five grants, previously appropriated as part of the FY 2027 budget process.
passedApproval of the full consent agenda.