GUEST COMMENTARY: Troubling Issues Loom over Williamsburg Budget
Concerns include water supply & rising rates, expensive capital improvements, unresolved school contract, massive rezoning & development
(Editor’s Note: This piece contains guest commentary. The opinions expressed below are the authors and not necessarily those of the Williamsburg Independent.)
PART 2 in a series about Williamsburg’s Budget & Finances
The City faces several significant challenges regarding the upcoming FY26 budget and beyond. These include issues with water supply and potential increases in water rates. Other concerns include the City’s increased spending, investment in questionable and expensive infrastructure and aggressive rezoning meant to transform our City with the amorphous goal of “vibrancy,” whatever that means. For too long, secretive officials and special interests have forced their vision of the City on the rest of us. The more we know, the more we can push back on the plans that only serve some in our community.
Costs to live in City keep rising
Real estate taxes, sales taxes and water rates are regressive taxes in that they are assessed irrespective of the income level of residential housing units and therefore falls more heavily on those in what we refer to as affordable housing as well as retirees on fixed incomes. Further, the majority of the City’s population are W&M students who consume City services but pay no City real estate taxes.
Three years of increasing real estate assessments in excess of inflation have hit people with lower or fixed incomes harder, making it more difficult to live in the City. Now, the City is considering increasing the water rate by 90% over the next 5 years, with rates being 3 times higher than the current rate over the next 10 years. Imposing rate increases irrespective of income levels makes even more housing in the City unaffordable for people with lower income levels.
Growth in government expenditures
This problem will be further compounded by potentially increasing the real estate tax rate, which the City acknowledges could be a possibility due to flattening real estate assessments. Instead, the proper solution is to control spending to limit rate increases, place an annual levy on overall real estate tax levels, and supplement the utility fund out of the general fund instead of raising rates to such high levels, and reduce or postpone other spending to accomplish this.
Significant increase in City staff
Spending by the City has well exceeded the inflation rate as well as the increase (or decrease) in the population of the City. Analysis reveals that the growth in the number of employees on the City’s payroll has exceeded the overall growth in the entire non-student population of the City. Excessive spending has raised the overall level of City expenses to require severe real estate tax rate increases unless the City reduces its overall spending level. As a result, even though the median tax bill for City residents is on par with other area jurisdictions, the rate will likely double over the next 10 years.
Uncertain water supply
As I’ve reported in the past, neglect of the City’s water infrastructure over the years is requiring heavy spending and dramatic increases in the City’s water rate. Prior decisions and misplaced priorities have unwisely locked the City into future cost increases for the water supply. At this time, the City has yet to resolve its future water supply issues, nor has it figured this cost into its future projections.
Now, leadership faces a decision on whether to continue to secure backup water supply from Newport News. Failure to secure the additional 1 million gallons per day of future water supply by extending the current agreement with Newport News will expose the City to water shortages during drought conditions, and limit the City’s ability to support future growth.
Expensive capital projects
Questionable investments in tourism related projects with significant costs and increasing competition puts more stress on the City’s finances. For example, the funding commitment for the Greater Williamsburg Regional Sports Complex will likely increase now that the bonds have been issued, and the full debt service kicks in without any increase in revenue due to delays in completion of the facility.
The rising expenses come at a time when the facility faces stiff competition against the $80M project we’re building. There’s already a facility in Virginia Beach built just a few years ago that’s struggling financially. Newport News is considering building their own youth sports complex. In fact, the company building the Williamsburg facility is also building one in Prince William County, and probably elsewhere as well.
Now the City wants to borrow an additional $20 million in general obligation bonds for a new library. They’re also plannig to borrow $6.5 million to build a children’s splash park on N. Henry street downtown, sacrificing open pasture land owned by Colonial Williamsburg.
Unresolved school contract
The City raised such a fuss about the school system that it will now likely face increased costs from the joint agreement with JCC. Borrowing levels continue to increase and the Interest and Debt Service will consume increasing % of City spending. Costs for schools are expected to continue rising over the next decade.
Rezoning for increased development
After the 250th Anniversary of the Nation’s founding during 2026, Colonial Williamsburg will likely aggressively seek changes in zoning for much of its undeveloped real estate including high-density residential development and will then flip the properties to developers. This real estate will include the 80 acres next to the Visitor’s Center, the remaining Spotwood property west of S. England, the 90 acres further down S. England towards Rt. 199, the entire Green Course, and its property on Pocahontas Trail.
All the potential development being pushed by City leadership represents an existential threat to the current way of life for City residents. The City will likely support anything CW places in front of them as evidenced by the behind the scenes lobbying that occurred with the proposed Spotswood development. In response, residents have started a petition to let the City Council know what they think of replacing our unique town with cookie cutter apartment buildings, affordable to only a few, stacked on retail space with questionable demand.
Lack of public input
Unfortunately, the City Manager and City Council rarely solicit public feedback and often keep their planning for preferred projects hidden from public view, then forcing them on the public as fait accompli. Unfortunately, most local media has avoided reporting anything critical for fear of losing access.
The time to call, write, or email members of the City Council is now. Residents who fail to make their voices heard, can’t complain when their water bill triples, their real estate bill doubles, all while traffic, parking and pedestrian safety around the City grows even more precarious.
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, Mr. 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.
Mr. 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.
Mr. Wilson resides in the City of Williamsburg and may be contacted at wilstar2001@gmail.com.