City Council FY27 Budget Development Work Session (Updated to Virtual)   1/29/2026

Mic check.

Jen, it looks like your name has Natalie, or is it just me?

So let me take that.

That's good.

Although it's kind of fun.

I'm here too.

Do we have everyone here?

Don't see Michael yet.

Is he?

I'm here.

Madam Clerk, will you please call the roll?

Councillor Fleisher?

Here.

Councillor Snook?

Here.

Mayor Wade?

This is a work session for the budget and I will turn the meeting now over to you, City Manager Sanders.

So I'm going to turn it over to Ms. Hamill and then I'll chime in when she has asked me to be prepared to do so.

Any questions on those?

1% of the sales tax percentage is $14 million or something.

Yes, that's correct.

So how much of that are we actually transferring?

Okay, with that, I'm going to now turn it over to David to talk about the assessment.

I'll open up to any questions from Council or any more details that you would like me to provide.

Just in general, did anything jump out at you good, bad, or indifferent?

I'd say that we're 2025 and 2021 probably saw the lowest amount of sales during those times.

Thank you, Natalie.

Yeah, hey, just on the taxable parcels page, you said that there had been a parcel count increase, but we just see the one number here.

I'm sorry.

It might be.

It was a small increase over our previous year of, I want to say 108 parcels from 2024 to the 2025.

And is that like subdividing plots or?

Yes.

Thanks.

Any other questions on the real estate assessments?

No.

Thank you, David.

That was helpful.

Yes, Michael?

Is that the median value or are you just averaging it?

That's the mean.

So not the median?

And that kind of falls in line with the annual residential increase of it both being 4.2 versus 4% on the median home price.

It is.

You can go to the next slide.

So you'll see later in a slide later the amount that goes to debt service, but this is the amount that actually goes to balance the general fund here.

Thank you.

Divers and Mr. Vandiver here if you have any particular questions.

First of all, anything in here jumps out at you?

And then I don't know if anyone else on the revenue team has anything they want to add.

Is that fair, Chrissy?

Good, thank you.

Oh, sorry.

When again will we get updated, more accurate numbers on March 2nd when you get the budget?

And Councilor Oschrin.

Just in case anyone's watching this and they see the line item in the first section for payment in lieu of taxes and gets excited thinking you've worked something out with UVA, can you explain what that is?

Sure, I think Mr. Cullinan is on and he can talk about that.

Great, thanks.

And so as we sell more utilities, sell more water, sell more natural gas, collect more wastewater, as that goes up over time, that that payment increases.

Okay, thank you.

And then I'll just note that we're looking at a, from 265 to 268 as a revised revenue figure for 26.

Sorry, I see you for 2026 over there.

Councilor Payne?

But as a question, does that 6.4 million ask, does that incorporate the conclusion of their union contract?

But I don't think it's been finalized yet.

So it may not even incorporate whatever contract is aligned on?

I believe their ask has made some assumptions about what they think their increases will be related to that contract, as well as other things in their budget.

But ideally, we have tried to use the formula as a foundation point to then build on and where there is still a gap at the end is where we would have further conversations with you all and that would be a part of your work session with schools.

So while you're here, Sam,

and again all of these would be additional asks that have not been baked into the budget right now and right now we're saying we have a gap and these things are still on the table and the question is are we going to make those fit and then how do we make them fit.

I'm not sure if I know what you mean by that.

So these would be in addition to that is what I'm highlighting for you here.

Isn't that true of all four of those housing related matters?

Vice Mayor?

When the building is complete or what's the rule there?

Mr. Fries, you have a targeted answer for that.

And we can update that estimate and provide it to council.

OK, so we have kind of a rough estimate.

So we're not necessarily wanting to base anything on that is really the point.

But if there's a way where we can kind of trickle that payment in, so instead of one lump at the end, we're able to have a little bit more of a predictable payment schedule.

Do you mean on these particular projects?

And then whatever's left, we get that whatever's left at the end, just so we have a little more predictability in income stream.

So it's kind of set and a fixed time that it would be consistent for every single project.

I get that it's consistent for that project, but we don't know when that time is going to hit on that project.

But this is probably a longer conversation that we could take at another time.

But for predictability purposes, that can be handy.

So did anyone else have any questions about this particular slide?

And so if the schedule gets off and we've already committed, it makes it a little bit harder to say yes, I guess, because a yes is a yes.

and I'm moving the box.

Is that a way of looking at this as far as the question?

So we're going to show you in a second what that exposure is.

A portion of that would come out of the 11-ish.

Route 7 being our most used route is where we have it identified as well as on the trolley, another high frequency, high user route today.

And if that's something that we can rearrange to make it more useful for folks getting to and from work, I would like to still continue to kind of plan for that.

even though your box says James Freeze because he forwarded it.

But we're pretty confident that we can make that shift to get to the peak hour periods of time.

I just didn't want that to go unmentioned.

Is this 10 part of that or we, I thought that we were co-mingling drivers, you know, or completely different?

Two separate funding sources so schools funds pay for their share of drivers and the general fund with the state and federal money pays for the transit drivers.

So if they needed those drivers it would be part of that 6.4?

I have not seen any of these plans, definitely.

I'm not sure.

All right, Council Payne, I see your hand.

Is that a number where we're in a situation where there's a good possibility that that number will increase this General Assembly session?

um there's speculation that that number may increase but um nothing I haven't heard any definitive numbers um I haven't even seen any new bills associated with increasing um the transit funding at this point in time so and with the expansion there's the 10 operators five support positions along with that um you know it seems like a

Like why is that ratio so high?

Thank you.

So I could have said that differently, so I apologize for that.

So it's like we're front-loading the support staff we're going to need as we continue to expand drivers.

Is that right?

OK.

Did I hear someone say they had a question?

Are these operationally just the same routes we have and adding frequency, or is there any route expansion?

We don't have enough drivers to do the expansion models yet.

but none of this factors into Jaunt service, right?

So that's really getting in the weeds of what these four years are going to feel like.

Okay, thanks.

Do you want me to talk about this or do you want to talk about this?

I don't like taxes.

I think our commissioner is probably cringing right now, but if there was a desire to do a different rate on each of those types of personal property, this gives you an idea of what kind of revenue would come in from the increase.

Todd, what do you think?

I'm not sure what you're asking.

to gradually get to where we should be.

Chrissy may have some more information on that.

I did not finish the comparison of the personal property and real estate, but I'll get those finished and get those out to you for sure.

Thanks.

So where we should be is based on your determinations.

So.

Yeah, I know we're high for that.

Can we look at it for just for a few minutes, please, that comparison?

And then we'll come back to you and talk about pulling the tax levers.

Wow, Bristol, I guess Motor Speedway.

Right.

Oh, sorry, this is in here twice.

I would add Bristol got themselves in a world I heard a few years ago and they were pulling every lever they could think of.

And you can see we're right up at the top.

So when the end talks about our fiscal stress level, this is kind of a report.

And then Meals as well.

And that's why the stress is really what she's picking up on when she's running the numbers.

And I think her other message also is, is that, you know, every budget, we can't depend on tax increases to balance expenditures.

Or a big surplus.

Pardon?

Or like a big surprise surplus.

And so, yeah.

And it's not what it's been.

You're not muted.

Hello?

There we go.

I just would be reluctant to do any increases of any of those things this go round, but it's good to hear and see.

So, anything that you want to share, any guidance?

Is that what I'm hearing?

And we're probably days away from being able to signal that for you.

Let's see, is that David with his hands up?

David, you there?

So notices will not be mailed out until Monday is my understanding right now.

Will they be updated online at the same time?

No, they will be updated tomorrow morning.

OK, thank you.

So, sorry, Sam sent me an email while I think I was in part of my presentation, so I'm sorry I did not bring that up earlier.

This is just the opening of the process for you all, just to make sure that you're kind of cluing into the tough part is about to start.

I know this, you know, you may be- He's going to email me tomorrow.

That's okay.

So, but I will, Michael, do you have any thoughts that you want to say about, you know, what we've heard today?

So if we have to, that's the lever I would look to first.

Lloyd?

And I notice we have a hand raised for Mr. Milton.

So if you reduce the improvements to land ratio, commercial properties would have the biggest benefit in that.

Are we allowed to distinguish between commercial and residential?

I know the commissioners for revenue have spoken against it in the past.

Yeah, that's Katrina's bill.

Yes, sir.

Is that right, David?

Yes, that's correct.

I don't know why.

That's the statewide bill, right?

That's out of Salem's pushing that one.

And that one didn't make it out of committee, so it's done.

Not for him, but I mean, logistically.

Natalie, do you have any questions or comments?

Before I go, Mr. Maddox, you had your hand raised?

So it is something we had asked for.

and I just want to reiterate the bus thing too.

Jen, did you have anything that you wanted to add this evening?

Is that right?

Okay.

When do we expect to know more about that?

Are we going to be able to bring you a different recommendation or at all?

Great, thank you.

So, Sam, my only kind of question or comments is, you know, of all the budgets that you have been in charge of, I think this is your third one?

This is number three.

Is this the easiest, the hardest, or, you know, or?

And then I come to you and say, do you want me to keep going or do you want me to relieve the pressure of what it feels like to not have enough right now?

it's been rewarding and I'm looking forward to this process is it April 9th is the day we're going to adopt the budget I think so I know over the next six to eight weeks we're going to be seeing more of each other than we are our families on some weeks or some days but that that's why we're here so anyway that if that's it do did you had to have anything else Sam

So, continue to be safe, be focused, and if you just feel like you can chip away at a little bit of ice and all, then keep swinging because we've got to try to get that out of here.

Do we need a motion to close, Kena?

Yes, I move we adjourn.

Thank you.

Thank you.