A push by Councilmember Sonia Vasquez Luna to raise the business computer equipment tax rate met resistance Monday night, as the Manassas City Council instead chose to maintain the current rate of $2.15 per $100 of assessed value.
Vasquez Luna proposed aligning the computer equipment tax, data center tax, and personal property tax (vehicles) at a uniform $3.50 rate, saying it would offer consistency and potentially allow the city to reduce the tax burden on vehicle owners.
“For me, it will be $3.50 for each one of them,” Vasquez Luna said. “And it’s an opportunity to lower the [rate] for personal property.”
But several council members pushed back, expressing concern that such an increase would disproportionately hurt small business owners.
“I’d like to keep the computer tax at $2.15,” said Councilmember Teresa Coates Ellis. “It sends a bad message to small businesses.”
Councilmember Ashley Hutson agreed, noting that large institutions like Lockheed Martin and Micron may be impacted, but so would local startups without a threshold to shield smaller firms.
Ultimately, the council chose to keep the computer equipment tax rate at $2.15 while raising the data center tax rate to $3.60 and keeping the vehicle tax at $3.60. Staff may revisit adding a threshold in future budget cycles, taxing only businesses with a certain minimum amount of computer equipment.
Budget Conversations Continue
The computer tax debate was part of a broader discussion on the proposed fiscal year 2026 budget, with the Council needing to approve maximum advertised rates before public hearings.
Among other key items:
Commercial & Industrial Tax Under Review
The council heard a presentation on a potential 12.5-cent Commercial and Industrial (C&I) property tax that could fund new road construction or transit routes. The measure could help Manassas qualify for additional Northern Virginia Transportation Authority (NVTA) funding, but the council opted to delay consideration until future fiscal years.
Tax Relief for Elderly and Disabled
Council members signaled support for raising the income eligibility threshold to $60,000 for senior and disabled residents seeking real estate tax relief. That change will be implemented through a separate ordinance in FY 2027.
Utility Rates May Rise
Staff recommended an 8.5% increase to water, sewer, and electric rates, citing rising operating costs and the need to maintain the city’s AAA bond rating. Some members, including Vasquez Luna, objected to the size of the increase and called for more analysis of capital spending.
The council will revisit the utility rate issue at its April 7 work session, where utility staff will be present to answer questions. A more minor 5% increase is under consideration as a potential compromise.
To stay on schedule, the city must advertise all maximum tax and utility rates by April 11, ahead of formal budget adoption later this spring.
While most of the budget remains unchanged from the initial presentation on Feb. 25, MCPS received clarity from the state — which provides 50% of the funding for the budget — on how much it would receive.
According to Taft Kelly, MCPS' director of finance, said an additional $330,000 would be given to the district. But, Kelly warned that Gov. Glenn Youngkin's budget has not yet been approved and likely won't be until April or May.
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Dozens of Stafford County residents packed the chambers Tuesday night during a special-called meeting of the Board of Supervisors to weigh in on the proposed $1.015 billion Fiscal Year 2026 budget — and the tax increase that may come with it.
The meeting featured a detailed budget presentation by Chief Financial Officer Andrea Light, followed by a public hearing where residents delivered emotional appeals both for and against the proposed increase in the county’s real estate tax rate.
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On Tuesday, Manassas Park City Schools presented the governing body with a $64.8 million operating budget for Fiscal Year 2026. The budget outlines key priorities to improve academic performance, boost teacher compensation, and expand student wellness and mental health services.
Superintendent Dr. Melissa Saunders and Finance Director Mr. Lyon led the presentation, which showcased the division’s efforts to balance rising costs with a continued decline in student enrollment.
“This budget reflects our commitment to reimagining the school experience, supporting our staff, and ensuring our students are safe and supported every day,” said Saunders.
Key Budget Priorities
The FY26 budget, approved by the School Board on March 3, is structured around four major priorities:
- Literacy and Math Improvement: Expansion of the Virginia Literacy Act compliance to middle school grades and the addition of 43 English Language Learner (ELL) teaching positions to meet updated state mandates. The school division’s ELL population now makes up 45% of the student body, compared to the state average of 12%.
- Staff Compensation and Benefits: Teachers and classified staff will receive an average 5.2% raise, including a 2% step and 3% cost-of-living adjustment (COLA). Managerial staff will receive a 4.2% average increase. The top pay scale staff will receive a $1,000 supplement. The budget also includes six weeks of paid parental leave after one year of employment and increases paid time off to 15 days annually.
- Student Support Services: The budget adds a school counselor, a Dean of Students at the high school, and front office staff to assist with increased call volume. It maintains three attendance specialists and extends the use of Care Solace, a 24/7 multilingual mental health care referral service for students, families, and staff. Free breakfast and lunch for all students will continue.
- Sustainability: The division will draw $872,078 from the City’s School Reserve Fund to help cover salary obligations. That fund, created in 2023, is intended to stabilize school funding as enrollment declines and staff costs rise.
Student Enrollment Declining, Needs Increasing
Enrollment is projected to dip slightly to 3,372 students next year, down from 3,624 in 2020. At the same time, student needs have increased significantly:
- 55% of students are economically disadvantaged
- 15% receive special education services
- 45% are English Language Learners
Saunders noted that while enrollment declines, the staffing demands grow due to state requirements for lower student-teacher ratios in high-need populations.
Long-Term Forecast Raises Concerns
A five-year budget forecast included in the presentation shows rising shortfalls beginning in FY27, with a projected $4.7 million gap by FY30. The FY30 projection also includes a placeholder $36 million investment in a potential Career and Technical Education (CTE) wing at the high school.
Despite the looming financial challenges, school leaders emphasized that the FY26 budget reflects careful planning and a “needs-based, zero-based” development process.
Capital Projects and Other Highlights
The FY26 capital budget includes $2.1 million in school infrastructure upgrades, including bus replacements, generator installations, lighting and flooring improvements, and front entrance safety upgrades.
The budget also maintains free meals for all students, funded through the division’s food services fund.
What’s Next
The School Board’s approved budget will now be incorporated into the City of Manassas Park’s overall FY26 budget. No formal action by the Governing Body was required during the March 18 meeting.
“We’re proud of the work being done in our schools and believe this budget reflects our community’s values,” said Saunders.
Editor’s note: View the full budget presentation.
The Dumfries Town Council has voted to approve a significant salary increase for its elected officials, citing the town’s growth, increased responsibilities, and alignment with updated Virginia state law.
At the March 18, 2025, council meeting, members approved an ordinance amending Chapter 2, Article III, Section 2.56 of the Town Code, adjusting salaries for the mayor, vice mayor, and council members.
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Dumfries Town Manager Tangela Innis has presented the proposed Fiscal Year 2026 (FY26) budget for the town. The budget outlines strategic investments in infrastructure, public safety, and community programs while maintaining the town’s real estate tax rate.
The first reading of the budget is scheduled for March 18, with a public hearing on April 1. If approved, the Town Council may adopt the budget the same evening.
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Fredericksburg City Manager Tim Baroody presented the Fiscal Year 2026 (FY26) budget proposal to the City Council on March 11. The proposal outline a $136.75 million spending plan to strengthen public schools, upgrade infrastructure, and ensure long-term financial stability.
The proposal includes a three-cent real estate tax increase to fund these initiatives, bringing the rate from $0.77 to $0.80 per $100 of assessed value. This tax hike is expected to generate additional revenue while helping to fund essential services such as a new middle school, a fire station, and water system upgrades.
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Prince William County Fire Chief Thomas LaBelle presented an ambitious plan to replace aging fire stations, upgrade firefighting equipment, and implement a systemwide approach to purchasing fire apparatus during a Board of County Supervisors (BOCS) work session on Tuesday.
The proposal, which spans Fiscal Year 2026 through 2031, aims to improve response times, station reliability, and firefighter safety while addressing rising costs and resource demands. The plan also includes a $158.3 million investment in four new or replacement fire stations and overhauling the county’s equipment procurement process.
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As Stafford County prepares its budget for the upcoming fiscal year, officials and citizens alike are raising concerns over the mounting financial burden of a state-mandated tax exemption for disabled veterans. The issue, discussed at the March 4, 2025, Stafford County Board of Supervisors meeting, has sparked debate over the program's sustainability and impact on county taxpayers.
Mayausky: "A Worthy Program, But an Unfunded Mandate"
Stafford County Commissioner of Revenue Scott Mayausky detailed the rapid growth of the veteran tax relief program, which has significantly expanded since its inception in 2011.
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Data centers in Prince William County could see an increase in the tax rate for computers and peripherals used by data centers as the Board of County Supervisors deliberates on the Fiscal Year 2026 budget. The proposed tax rate for computer and peripheral (C&P) equipment is set to rise from $3.70 to $4.15 per $100 of assessed value, a move that could significantly impact data center operators and businesses utilizing advanced technology.
The Board of County Supervisors voted to advertise the new C&P tax rate, meaning they can lower the rate during their upcoming budget discussions but cannot raise it beyond the advertised amount. Some supervisors expressed concerns about the increase, arguing it could deter business investment, while others emphasized the need for additional revenue to support county services.
