CHARLOTTESVILLE, VA (CvilleRightNow) – Unless City Council drastically disagrees with City Manager Sam Sanders, taxes and spending are going up in Charlottesville next year. Sanders presented Council Tuesday night a $251.5-million budget for fiscal year 2025… a little more than 10% more than this year… that includes hikes in real estate, meals, and lodging tax rates. He said new revenues are needed based on priorities Council has carved out for the future.

The budget includes a proposed 2-cent real estate tax raise, and 1-percent raises each in meals and lodging taxes. Sanders said implementing collective bargaining is the biggest initiative the city will do over the next five years… which starts this year with police, fire, and transit workers with contract impact from police and fire alone $2.3-million. There’s also a change in class and compensation for city employees — and 2-percent city employee pay raise.

The budget includes $74.1-million for schools… including part of a total $30-million for a new pre-K Center at Upper Walker. 9-million is included for affordable housing the next year… as well as a $5-million climate action fund. The tax hike would come on top of an average 5% uptick in the city on assessments.
Click here to see the entire proposed budget.