M
anassas residents may face a higher real estate tax rate than initially proposed to fund next year's budget. The city council is considering raising the tax rate from $1.26 per $100 of assessed value to $1.28, which would increase the average homeowner's annual tax bill by about 8%. This change could add around $91 to a home assessed at $456,259.

    Utility rates are also expected to rise, with estimated monthly increases of up to $22 for households. However, these changes will be finalized after a rate adjustment study is completed in June.

    The city council has proposed increasing the tax rate on data center equipment to $3.60 per $100 of assessed value to diversify revenue streams. This move aims to help fund large expenses such as increased funding for Manassas City Public Schools, rising utility costs, and expanded fire and rescue operations.

    Council members argue that additional revenue is necessary to maintain public safety, ensure reliable infrastructure, and support a growing student population. Some residents have expressed concerns about the cumulative impact of tax increases, while others urge the council to proceed with the increases to preserve essential services.

    Vice Mayor Mark Wolfe emphasized that the city has historically had low utility rates, creating a gap between what residents pay and actual costs. Without adjustments, the city risks underfunding critical infrastructure and operations. The proposed budget totals $511.7 million, reflecting an increase of about 5.2% over fiscal 2025.

    The council will revisit the budget on April 30 before final adoption on June 9.