CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Charlottesville City Council will hold public hearings at its regular meeting Monday night focused on the proposed 2027 city budget as well as the proposed 2-cent real estate tax hike recommended by City Manager Sam Sanders.

“Staff estimates the additional $0.02 real estate tax levy will generate an additional $2,467,724 in revenue,” according to the meeting agenda.

Sanders said the increase is needed to balance the budget in the face of increased costs associated with collective bargaining, transit investment, and school local match funds.

The increase would bring the city’s real estate tax rate to $1-per-$100 assessed, assessed values up this year an average 4.27% on residential properties, 2.14% commercial, and 3.42% combined.

There must be at least one public hearing, and the city had one back on March 16 and Monday night will be a second, following be what will be the official first of two readings required before a budget is passed, and Council has until April 14 to pass the 2027 plan.

A special meeting is set to pass the budget 6 p.m. Thursday night in Council Chambers.

Later in the action items, Council will be asked to approve more than $3.8 million forgivable loan to the Piedmont Housing Alliance toward the 501 Cherry Avenue development slated to include 71 affordable residential units and commercial space, preferably for a grocery store in what’s designated a food desert.

The money is allocated in the budget, and Monday night will be an authorization to appropriate the money for the forgivable loan.

The policy briefing summary noted, “A total of $3,850,000 has been allocated in the City’s Capital Improvement Plan (CIP) fund; $1,000,000 in FY26, $2,150,000 in FY27, and $700,000 in FY28.”