Williamsburg answers tax questions

WILLIAMSBURG — The property tax levy for Williamsburg will decrease slightly from $10.83 per $1,000 of valuation this year to $10.33 for fiscal year 2026.

There’s no significant new spending, said Mayor Adam Grier during a public hearing attended by three residents. The city gave 5% pay increases to its employees, said Grier, but the city has said no to other spending that would have raised taxes.

What do taxpayers get in return? asked a resident who attended the public hearing. The city continues to provide the same services it has, said the mayor, despite the fact that the city has to pay for increases in insurance and utilities.

Insurance has skyrocketed, said Councilman Tyler Marshall.

Insurance went up about 30% said Grier. The city is taking more risk by increasing its deductibles to keep premiums down.

The city has cut expenses by replacing full-time employees, when they leave, with part-time employees, and it pays an outside company to take care of the payroll rather than hiring an employee to do it, officials said.

Police service is the biggest cost to the city, said Councilman Jake Tornholm. That’s something residents don’t want cut.

“We scrutinized line item by line item,” said Grier. The city tried to anticipate fuel costs and utility costs.

The state is scrutinizing local governments, said City Manager Aaron Sandersfeld, but utilities make large price increases and cities are expected to pay the increase while keeping property taxes down.

The city isn’t like the federal government, Sandersfeld told residents who attended the public hearing. It can’t print money. “We have to take it from you.”

The state caps the city at 3% increase in property tax, explained City Clerk Niki Osweiler. The more the town’s economy grows, the less the city is allowed to increase its tax levy.

The city is essentially punished for growing, said Marshall.

The state demands that cities pay law enforcement officers more, then limits the amount the cities can tax to pay for it, Tornholm said.

Unfunded mandates cause budget problems for cities, said Sandersfeld.

The city will conduct another public hearing for the fiscal year 2026 budget at 6:30 p.m. April 14.