Subject:
Title
Public Hearing for Fiscal Year 2026-27 Proposed Tax Rate (5 mins.)
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
March 14, 2026, Town Council Work Session
March 23, 2026, Town Council Work Session
EXPLANATION AND SUMMARY:
Each year, as the Town’s budget for the following year is developed, a proposed real estate tax rate is recommended by the Town Manager and reviewed by Council during budget work sessions. This public hearing is being held to give Vienna residents an opportunity to provide public comment on the proposed real estate tax rate of $0.195 per $100 of assessed value for fiscal year 2026-27.
The State Code of Virginia, section 58.1-3321, requires that a locality calculate the “Lowered Rate Necessary to Offset Increased Assessment”. This is the tax rate which would levy the same amount of real estate tax as last year, when multiplied by the new total assessed value of real estate excluding additional assessments due to new construction or improvements to property. The “lowered tax rate” is $0.186 per $100 of assessed value.
The Town of Vienna proposes adopting a tax rate of $0.195 per $100 of assessed value. This difference between the lowered tax rate and the proposed rate would be $0.009 per $100, or 4.8%. This difference is known as the “effective tax rate increase.”
Individual property taxes may, however, increase at a percentage greater than or less than the above percentage.
Based on the proposed real property tax rate and changes in other revenues, the total budget for the Town of Vienna will exceed last year’s by 5.0 percent.
Town Council has reviewed the budget during conference sessions on March 14 and 23, 2026. The Finance Department is presenting the proposed real estate tax rate and other tax rates at this public hearing for input from the public.
This is the 14th consecutive year with no change or a decrease in Vienna’s real estate tax rate. The proposed fiscal year 2026-27 budget is based on this $0.195 per $100 of assessed value tax rate along with continuation of the current bank net capital rate of $0.80 per $100 of valuation as well as a residential utility tax rate of 20% of the first $15 and a commercial utility tax rate of 15% of the first $300.
The Town Manager’s philosophy is to propose a tax rate that can be sustained (that is not lowered one year and raised the next) and that can maintain a rainy-day fund of at least 18% of the next year’s budget.
Town Council has the option to adopt the proposed tax rates or to lower them from advertised amounts as it sees fit. Tax rate changes require a supermajority (5-2 minimum vote) to pass the motion.
Departmental Recommendation: Recommend a public hearing on the proposed tax rate.
Finance Recommendation: Recommend a public hearing on the proposed tax rate.
Purchasing Recommendation: N/A
Town Attorney Recommendation: Pursuant to the state and local Town Code, the Town Council must conduct a public hearing on the proposed real estate tax rate and other local taxes.
Town Manager's Recommendation: I recommend the Town Council close the public hearing and approve the fiscal year 2026-2027 proposed real estate tax rate, as presented.
Cost and Financing: N/A
Account Number: N/A
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA.
Decision Needed by this date: April 27, 2026
PROPOSED/SUGGESTED MOTION
Recommended Action
“I move to close the public hearing.”
And
“I further move to approve the fiscal year 2026-27 proposed real estate tax rate at $0.195 per $100 of assessed value, and the bank net capital rate, residential utility tax rate, and commercial utility tax rate as presented. I further move that the Town clerk be directed to advertise a Notice of Intent to Adopt at the May 18, 2026 Town Council meeting.”
Or
Other action deemed necessary by Council.