GUEST COMMENTARY: New Taxes & Fees Just Temporary Fixes for City Finances
Questions remain about spending priorities and effective oversight as FY26 budget progresses
(Editor’s Note: The opinions expressed by the writer are not necessarily those of the Williamsburg Independent.)
After attending several City Council meetings over the past month and hearing the comments of residents, business owners, and Council members, I feel there are a number of “loose ends” that I need to tie up.
Higher meals and lodging taxes, new attraction admissions tax
The City is proposing to increase the meals and hotel taxes, impose a new admissions tax for local attractions, as well as increase water rates by 30% next year. The City claims it is unable to balance the budget without these revenue increases. Yet total expenditures budgeted are $112M with another $50M in encumbered but unspent capital funds carryover from last year. To quote the Story of a Patriot, “…are we such a doltish people” to accept that the City could not find $5M out of $112M in expenditures to save to avoid imposing these additional taxes? The City Council seems unwilling or unable to control the City’s prolific spending.
In a telling Marie Antoinette moment, Williamsburg City Manager Andrew Trivette wrote in a recent letter to residents that “…the meals, lodging, and admission taxes are optional for residents, who may choose whether to go out to eat, reserve a hotel room, or buy tickets to an event…” It’s nice of him to point out that we have so many choices of things not to do. I’m not so sure our local restaurants, hotels and attractions were thrilled to hear the City Manager’s assessment.
Water rate increase and undisclosed Information
While the City is recommending a 30% increase in water rates next year, this is not the entire story. In order to fund the $27.6M in water and sewer system improvements, the City’s finance advisor presented the following: “Varying water rate increases 2026 – 2035. Average increase of 12% per year over 10 years. Approximately 90% increase over the first 5 years.” Such a proposal would result in the tripling of our water rates over 10 years from $5.30 per thousand gallons to over $16.00 per thousand gallons.
There doesn’t seem to be any indication of what the City’s water strategy is at this point. Currently, Williamsburg secures a backup water supply from Newport News Waterworks. Yet, in order to continue the agreement, the City is on the hook for a payment totalling $18.5M due June 30th. The City has yet to divulge plans to pay the fee, leaving the backup water supply in question and potentially leaving the City dangerously exposed in the event of a drought. There are also questions as to whether the current water supply has sufficient capacity for additional development.
Lack of effective oversight
Another example of the City’s attitude towards spending and the lack of oversight by our City Council is the proposed hiring of an Executive Director for the Historic Triangle Recreational Authority, who will be charged with completing and running the regional sports facility.
In apparent response to a letter I sent to the City Council in October 2024 arguing against their appointment of the City Manager as a Board Member and Chairperson of the HTRFA, the City proposed in December to hire an Executive Director for the HTRFA. The City Manager proposes that the Executive Director be a City employee sitting in the City Manager’s offices, reporting directly to him, while also acting as Board Chair.
The City represented at the time that for at least a year or more, this person would be fully reimbursed by the HTRFA and that this had been approved by the Board of the HTRFA. In response to a FOIA request, the City Attorney’s office responded that in fact there was no approved Board Resolution at that time for this arrangement. In the FY26 proposed budget, an Executive Director is included at a figure north of $200K but only $75K is budgeted for reimbursement by the HTRFA.
Proposed Budget Reductions
Given the City’s tight budget, I propose the following recommendations which could save $49M:
Library – the current library facility needs renovating, but in the face of our library partners not funding the $15M contemplated in the budget as their share and the $5 million proposed to come from grants which are now questionable, the project needs to be reimagined. I suggested taking it out of this year’s budget and redesigning it to renovate the existing facility and add a small annex in lieu of a totally new library facility.
Peacock Hill Children’s Park – I agreed with the City Council that it should be removed from the current year’s budget and other location alternatives considered.
Waller Mill Training Facility – Defer this to a future year and cancel the encumbered $1.5M.
Renovation of Municipal Building – Cancel this project and recoup $5.9M in unspent funds and rent space in City office buildings for non-resident facing employees, if needed.
Cancel the balance of the Triangle Redevelopment and Research Village projects and recoup $2.5M of unspent funds.
Consulting Fees for Comprehensive Plan Update - $600K as mentioned by the City’s former Planning Director should be removed and City employees charged with this task, as has been done for the prior three Plan updated. This effort by the City is clearly designed to impose its vision of growth and development on the City including the existential threat by CW to rezone much of its real estate outside the Historic District.
Budget series conclusion
Transparency is the bedrock of local accountability and provides for an engaged and informed public and better decision-making. In a review of transparency in local governments, Krah and Mertens found “In democratic governance, premium is placed on transparency in good governance as a boost to public trust and participation of its citizens…Its absence diminishes citizens’ trust in administrative processes and actions as citizens feel distant and often excluded from governance process.”
We are a diverse community with a wide range of opinions and viewpoints for the City Council to consider. The City needs to be more open and transparent with its Residents, and we, as residents and stakeholders, need to make our voices heard.
Read previous posts in the budget series below:
PART 1 - Rising Residential Real Estate Property Assessments & Increased Spending
PART 2 - Troubling Issues Loom over Williamsburg Budget
PART 3 - Cooling Property Assessments, Increased Costs Push Williamsburg Budget
PART 4 - City Pushes Forward with Ambitious Building Plan
PART 5 -More Debt vs. Economic Uncertainty
About the Writer: During a 45-year career, Robert Wilson worked with senior leadership teams to develop and implement innovative strategic and business plans that have fostered growth and profitability. His background includes direct profit and loss responsibility, forging effective multi-functional leadership teams, restoring organizations to sound financial footing, and implementation of best practices initiatives. He has demonstrated a mastery of turnarounds and troubled companies in a variety of business sectors.
Prior to retiring in 2021, Dr. Wilson was Co-COO of a $2 billion operating division of a Fortune 500 Company. He has held the positions of CEO, President, COO, and CFO in several regional and national organizations during his career. Since retiring from corporate life, Mr. Wilson has served as an adjunct instructor in the business school at Christopher Newport University.
Dr. Wilson holds a BBA degree from the College of William & Mary, a MS in Finance degree from the University of Arizona, and a Doctorate in Management from the University of Maryland Global Campus. He is a member of the Beta Gamma Sigma honorary business fraternity. Since 1979, he has held a Certified Public Accounting license in the Commonwealth of Virginia (currently inactive) and is a member of the American Institute of Certified Public Accountants and an original member as a Chartered Global Management Accountant.
Dr. Wilson resides in the City of Williamsburg and may be contacted at wilstar2001@gmail.com.
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