Leesburg, VA (February 10, 2026) – The proposed Fiscal Year 2027 Budget and Six-Year Capital Improvements Program was presented to the Leesburg Town Council at its February 10 business meeting. The entire proposed budget, including the General Fund, the Capital Projects Fund, and the Utilities Fund, is $201.3 million.
The proposed budget maintains the current real property tax rate of 17.74 cents per $100 of assessed value. With an average increase of 3.0% in assessments for residential units, the homeowner’s equalized rate is 17.26 cents. If the Council adopts the equalized rate, the proposed General Fund budget would have to be reduced by $700,000.
Should the 17.74-cent rate be adopted, the combined residential average of single-family home, townhome, and condominium owners would see an annual increase to their Town real estate tax bill of $33.44, or $2.79/month.
The proposed General Fund budget totals $94.1 million. All proposed enhancements are funded with the Unassigned Fund Balance as they are one-time, rather than recurring, costs. There are no new staff positions proposed for the Fiscal Year 2027 budget.
At Council’s direction, the Proposed General Fund enhancements include the following for consideration:
- An update to the Subdivision and Land Development Regulations ($175,000)
- Development fee study ($150,000)
- Improvements to Lassiter Way ($150,000)
- Development of a Bike Lane Master Plan ($200,000)
- Downtown floodplain improvements ($450,000)
Although not included in the formal budget proposal, Leesburg Town Manager Kaj Dentler also provided the Council with two scenarios to address significant needs that cannot be funded in the proposed budget without a tax increase or identified revenue source. This includes enhanced investments in the milling and paving program and in the Town’s public safety program.
For Council consideration, the Town Manager provided a funding scenario for the milling and paving program using a combination of a 1-cent increase in the real estate tax rate and $1 million annually of prior year data center computer equipment tax revenues. The Town Manager also provided a funding scenario using a 1-cent increase in the real estate tax rate for public safety needs inclusive of Council’s previous initiative permitting collective bargaining.
The Proposed Six-Year Capital Improvements Program (CIP) for Fiscal Years 2027-2032 totals $360.2 million and includes 66 projects, including nine new projects.
The proposed Utilities Fund budget for Fiscal Year 2027 totals $78.8 million, including $43.6 million for the Capital Improvements Program. This proposed budget represents the third year of a five-year rate plan adopted by the Council in 2024. The rate plan calls for an increase of 4.1% in the average residential utility bill.
The proposed personal property tax rates remain unchanged from the current year.
“The proposed budget focuses on maintaining the resources necessary to sustain the current delivery of excellent services our residents and businesses have come to expect, while maintaining a level tax rate,” Dentler stated. ”The proposed budget also offers the Council scenarios to consider in order to address critical Town needs, including the milling and paving program and investments in public safety. As this is my final budget as Town Manager, I am proud of what we have been able to accomplish in Leesburg, with both the Town Council and staff working together to meet the needs of our residents, businesses, and growing workforce. Going forward, I advise Council to hold a strategic financial discussion with the new Town Manager later this year to assess organizational needs and funding priorities to sustain the level of services the community expects.”
The Town Council will hold work sessions to review and discuss the Proposed Budget and Capital Improvements Program, as well as a public hearing and a public input session to receive resident and taxpayer feedback. In addition, the Council will hold separate public hearings on the proposed Tax Year 2026 real estate and personal property tax rates.
All budget work sessions and public hearings will occur during the Council’s regular work sessions and business meetings, which begin at 7 p.m. in Leesburg Town Hall Council Chamber (25 West Market Street).
The Council will also hold a Budget Public Input Session from 9 a.m. to noon Saturday, March 21, at Town Hall. This was cancelled at the Council's February 24 meeting.
The adopted budget review and adoption schedule is as follows:
- Monday, February 23: Budget Work Session
- Tuesday, February 24: Personal Property Tax Rate Public Hearing and Adoption
- Monday, March 9: Budget Work Session
- Tuesday, March 10: Budget Public Hearing
- Saturday, March 21: Budget Public Input Session - CANCELLED
- Monday, March 23: Budget Work Session
- Tuesday, March 24: Tax Rate Public Hearing, Adoption of Tax Year 2026 Real Estate Tax Rate and Fiscal Year 2027 Fees, and Budget and CIP Adoption
The proposed budget document and Town Manager’s presentation is available on the Town website at www.leesburgva.gov/budget.
Media Contact:
Kara Rodriguez, Public Information Officer
pio@leesburgva.gov
703-669-1425
