Real Estate Tax Bills Would Increase Under Manassas 2025 Budget

MANASSAS, VA — The real estate tax rate is proposed to stay the same in the City of Manassas, but the average tax bill would increase due to assessment increases.

Interim City Manager Douglas Keen presented the fiscal year 2025 budget proposal to Manassas City Council Monday. The $333 million budget would be a 6.7 percent increase over the last one. The budget includes a real estate tax rate of $1.26 per $100 of assessed value, which includes $1.07 general fund rate and $0.19 fire and rescue levy.

"The average resident's tax bill will increase by $266," Keen said.

The average assessment of single-family homes increased from $504,960 to $526,549 from fiscal year 2024 to 2025, and the average single-family home tax bill would be $6,635 under the proposed rate. Average condo values increased from $267,878 to $286,570, and the average tax bill would be $3,611. Townhouse values increased from $332,253 to $354,111 with an average tax bill of $4,462.

Overall, the city's tax base increased from $6.9 billion to $7.35 billion. Property assessments not attributed to new construction increased overall by 5.19 percent. The residential increase due to new construction was 5.25 percent, and increase due to non-residential new construction was 5.06 percent.

Keen said the city looked at its 2022 community survey on what services residents want and compared that to the city's priorities of economic prosperity, community vitality, transformative mobility, educational attainment and sustaining excellence.

"Knowing the FY 2025 budget would be tight and with my philosophy of ensuring we look at being efficient and effective in everything we do, we immediately identified four areas of concern that I felt we should make top priority in FY [2025]," said Keen. "Those were employee retention, school funding, rising shared service costs and ensuring our residents we have an effective capital improvement program, specifically within our utilities department."

Utility rates are proposed to increase 5 percent each for electric, water and sewer services. Keen said when a decrease in the pass-through charge is factored in, the average monthly bill would increase by $0.78. Keen attributed the proposed rate increases to investments in maintenance and the need to meet federal and state water and wastewater guidelines.

Other priorities in the budget include a 3 percent merit pay increase for employees, $715,000 increase for shared services agreement costs involving Prince William County, increase from 542 to 546.5 staff positions for a maintenance worker, housing community coordinator and parks and recreation positions, and a $1.8 million operating budget increase for Manassas City Public Schools ($68.4 million total). In addition, the debt service for the school division would be $6.38 million. Keen said funds beyond the current debt service obligations will be for the replacement of Jennie Dean Elementary School in fiscal years 2026 and 2027 as well as future construction projects.

"We are all aware of costs and all of that, but trying to balance all that is not easy," said Mayor Michelle Davis-Younger. "And so we do appreciate the extra effort that everyone puts in to make this work," so we have a lot of work to do Council members."

Budget work sessions will follow the budget presentation before a public hearing on April 22 and another budget work session and public hearing if needed on April 24. First reading of tax rates and budget adoption is scheduled for May 13, and second reading of tax rates is June 10.

See the full budget presentation on the city's website.