Tuesday will be a busy day for Lynchburg government meetings — including an expected vote on the city’s real estate tax rate for the next fiscal year.
The city’s finance committee will meet at 3 p.m., while city council will hold a work session at 4 p.m. and its regular meeting at 7 p.m.
Regular meeting
Council will convene at 7 p.m. in council chambers at city hall, 900 Church Street.
The main event is a planned vote on setting the real estate tax rate for fiscal 2026, which begins July 1.
City management has proposed keeping it at 89 cents per $100 of assessed value, although a recent property reassessment increased real estate values by an average of 20% — meaning actual tax bills would go up.
To keep tax bills roughly the same as they are now, council would need to lower the rate to 76.7 cents per $100 of assessed value.
During an April 22 public hearing on tax rates, about a dozen citizens called for adopting a lower tax rate that would maintain overall revenue in consideration of higher assessments. A similar number called generally for lowering the rate, while nine people advocated keeping the current tax rate to maintain support for city services.
Other agenda items for the 7 p.m. meeting include:
- A vote on whether to increase the transient lodging tax from 6.5% to 12.5% of the total amount paid and from $1 to $10 per room per night. Doing so is expected to generate about $7 million in additional income. Eric Terry, president of the Virginia Restaurant, Lodging and Travel Association, says this would be one of the highest rates in the country. In a letter to council, he called the proposal a “gigantic change with no precedent” and warned that it would be “a recipe for less tourism” in Lynchburg.
- A vote on whether to rezone three parcels on Leesville Road for construction of a 54-unit townhome development. The city planning commission recommended denial due to concerns over traffic and preserving low-density residential qualities.
- Consideration of appropriating $5.25 million from the capital projects fund to “create a fan experience project at Bank of the James Stadium in conjunction with the 2025 Hillcats franchise agreement.”
You can find the agenda here.
Finance committee
The panel will meet at 3 p.m. in the second-floor training room at city hall.
The main event will be a review of financial reports as of the third quarter of the 2025 fiscal year, including:
- The city’s general fund: As of the third quarter, revenue collected is more than $156.9 million, or 68.4% of total budgeted income; total spending is more than $161.6 million, or 69.3% of total budgeted expenses.
- Greater Lynchburg Transit Authority: Both revenue and expenses are under budget so far in the current fiscal year, leaving a surplus of nearly $76,400.
- Regional Airport Fund: It projects a surplus of more than $100,600 for the current fiscal year.
- Regional Juvenile Detention Center: For the third quarter of the fiscal year, revenue is exceeding costs by more than $172,000.
- Children’s Services Act Fund: For the third quarter, costs exceeded income by nearly $967,000, but the report states that the numbers are skewed in part. That’s because state guidelines require payment of prior-year obligations through Sept. 30 of the calendar year, but the annual budget is prepared on a fiscal year basis running from July through June.
- Water operating fund: Revenue is projected to be down by $167,900, while costs are expected to be down by $134,300 compared to the fiscal year budget.
- Sewer operating fund: Revenue for the fiscal year is projected to be $1,345,000 more than budgeted, largely because of investment income exceeding expectations and higher-than-expected income because of increased sewer surcharges to CertainTeed and Frito-Lay. Costs for the fiscal year are expected to be $465,700 less than budgeted, largely because of lower-than-expected spending on debt service and equipment purchases.
- Stormwater operating fund: Revenue for the fiscal year is projected to be $84,000 more than budgeted, mainly because of higher-than-expected investment income, while costs are projected to be $192,500 less than budgeted, mainly because of lower-than-expected debt service.
You can find the agenda here.
Council work session
It will begin at 4 p.m. in the second-floor training room at city hall.
The main event will be a review of the draft five-year plan and the fiscal year 2026 action plan for spending federal community development block grant dollars. Council is expected to vote on approval when it meets June 10.
According to meeting documents, proposed project funding in 2025 includes: Phase two of the Dunbar community schoolyard park project, nearly $500,800; Miriam’s House homelessness program, more than $97,100; Rush Homes-Carolyn’s Place housing program for people with disabilities, nearly $103,700; Habitat For Humanity homeownership program, more than $180,900; first-time homebuyer down payment program, more than $105,900; Blue Ridge Mountain Council, more than $15,500.
You can find the agenda here.
