Budget in Brief
Fiscal Year 2027 | July 1, 2026–June 30, 2027
Welcome
Fiscal Year 2026 continues to trend positively, with revenues exceeding budgeted projections. Building on these favorable revenue trends, the adopted FY 2027 budget positions the City to continue delivering high-quality services to residents and businesses. This success is made possible by our highly skilled, dedicated, and committed City employees, whose efforts remain essential to serving our community.
It is an honor to present this abbreviated budget document to help answer questions that you may have and continue our dedication to budget transparency.
Celeste Broadstreet
Finance Director / Real Estate Administrator
The City’s Funds
The accounts of the City are organized into funds. A fund is a group of related accounts used to control money that has been earmarked for specific activities or objectives. By keeping revenue in its appropriate funds, the City is able to obey laws that require certain money to be spent on specific uses – for example, that means the City may not raise water bills to pay for police services. Of the City’s adopted budget, most of the big spending decisions occur within the City’s general fund.
Capital Improvement Plan (CIP)
Every year, the City adopts a capital improvement plan for the next five years. Capital improvements include projects such as street construction, park improvements, water infrastructure, traffic systems, public buildings, sewers, etc. Since capital projects tend to be costly, the City issues bonds to help cover costs. The City then uses the cash received from bond sales to pay for capital projects, and repays investors over time at tax-exempt interest rates determined by competitive bids received at the time the bonds were issued. This process is similar to a homeowner taking out a home improvement loan to complete a major home repair project.
Information Technology Plan (ITP)
The ITP is a five-year forecast of the City’s information technology needs to maintain the efficiency of the City services and the safety of staff.
General Fund
The General Fund is where the City has the most discretion. The two major sources of funding for the General Fund are general property taxes and other local taxes combined. These two sources make up 83% of the General Fund budget.
Equipment Replacement Plan (ERP)
City Council recognizes the importance of providing employees with the tools needed to do their jobs. To address this need, the ERP serves as a dedicated revenue source for future equipment funding.
Strategic Plan
Mission
1
Connecting Our Community
Bringing people together by building relationships with our residents, businesses, and organizations to foster communication, collaboration, and a shared sense of purpose.
2
Preserving Our Safe and Secure City
Maintaining a strong commitment to public safety, proactive planning, and community partnerships that protect residents, businesses, and neighborhoods.
3
Supporting Our High Quality of Life
A commitment to vibrant parks and recreation, strong neighborhoods, shared opportunities, and thoughtful growth that enhances everyday life for all residents.
Keeping Our City Running
4
Delivering reliable, efficient core services by maintaining infrastructure, ensuring public works operations, supporting utilities, and managing stormwater responsibly.
Ensuring Efficient and Effective Government
Stewarding public resources responsibly with transparency and accountability by including sound financial management, and continuous improvement that maximizes value for residents and builds trust
Adopted Budget Overview
Adopted Budget Overview
FY27 Revenues
$60,000,000 $50,000,000
Other Local Taxes
$14,000,000
$1,400,000
$1,945,000
$9,955,000
$1,590,000
$450,000
$130,000
$13,585,000
$1,603,000
$25,000
$409,300
Transient lodging Tax (Motel)
$45,092,300 Total
General Property Taxes
$40,487,600
$16,896,900
$1,850,000
$59,234,500 Total
FY27 Expenditures
Transfers
End of Year Reserves
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000 $0
Reserves and Transfers
The City’s Reserves are the “rainy day” fund for unexpected expenses and emergencies. Transfers are payments to an internal department to provide for the delivery of services to the public. For example, the General Fund transfers funding to Social Services to provide assistance in the form of health and welfare programs.
Real Property Tax Comparison
Sales Tax Comparison
*Source – Virginia Auditor of Public Accounts
City Debt Profile
$12,000,000
$10,000,000
$8,000,000
The City makes scheduled principal and interest payments throughout the year to manage debt from important capital projects. Additionally, the Utility Fund repays revenue bonds using water and sewer fees, while the Parking Authority has revenue bonds that are paid for by fees charged in the parking garages and other income from the Parking Authority.
How Your Taxes Affect Revenue
Calendar Annual Budget
November
December
January
February
March
April
May
Budget discussions begin internally
Deadline for departments to submit budget requests to Finance for review
Finance Department submits budget request to City Manager for review with department directors
City Manager reviews budget options with City Council
City Manager submits the proposed budget and budget message to City Council
Advertisement submitted to newspaper for final budget hearing Council adopts budget and Capital Improvement Plan (CIP)
June
July
Budget and CIP printed and distributed
Recognition
Distinguished Budget Presentation 1
2 Certificate of Achievement in Financial Reporting
Received from the Government Finance Officers Association of the United States and Canada for the 13th year for the City’s FY26 budget document. This is the highest form of recognition in government budgeting.
Received from the Government Finance Officers Association of the United States and Canada for the 33rd consecutive year for the City’s comprehensive financial report (CFR). This is the highest form of recognition in government accounting and reporting.
3 Highest Possible Bond Rating
Received a AAA bond rating from Standard & Poors and KBRA, the highest possible bond rating, in addition to an Aa2 rating from Moody’s and an AA+ from Fitch. Rates reflect sound financial management, safety of investing in City bonds, and allows the City to borrow at low interest rates
Capital Improvement
Plan
General Government
Public Safety
$517,300
$600,000 Radio System Microwave Replacement Ambulance
Parks, Recreation & Cultural
$220,000
$125,000
$90,000
$140,000
Athletic Fields Lighting
Neighborhood Park Upgrades
Restroom Improvements
War Memorial Building HVAC
Public Works
$3,000,000
$250,000
$200,000
$100,000
$1,000,000
$500,000
$2,000,000
$12,000,000
$3,000,000
$2,000,000
$550,000
Boscawen Street Improvements
Security Camera Replacements
Green Circle Trail Widening Along Jubal Early
Green Circle Trail Extension - Millwood Pedestrian Bridge
Joint Judicial Center Improvements
Jubal Early Bridge Repairs
Millwood Avenue Improvements
New Parking Garage
Sidewalk Improvements
Street Repaving
Timbrook Building New Roof and Entrance
Winchester Public Schools
$500,000
$100,000
$350,000
$300,000
$300,000
$2,000,000
$60,000
$2,500,000
$50,000
Bus Replacements
Daniel Morgan Fencing
Daniel Morgan Roof Replacement
Frederick Douglas Elementary School Bathroom Remodel 3X
Virginia Avenue Elementary School Bathroom Remodel 3X
John Handley High School Athletic Practice Fields
John Handley High School Synthetic Turf Replacement
Quarles Elementary School Improvements
Recoat Blacktop
Utilities
$12,000,000
$1,000,000
$8,000,000
$8,000,000
$3,000,000
$2,000,000
$900,000
$1,000,000
Jefferson Street Pump Station and Water Main Replacements
Emergency Supply Connection
Sewer Pump Station Replacements
Water and Sewer Main Replacements
Water Intake Improvements at River
Raw Water Storage Reservoir
Office Space Completion
Wastewater Treatment Plant Improvements
Stormwater
$6,500,000 Stormwater Improvements Citywide
City Council
Corey Sullivan Ward 3 President
Les Veach At-Large Mayor
Kathy Tagnesi Ward 4
Emily Rose Windle Ward 2 Vice-President
Richard Bell Ward 1
Chip Newcome Ward 1
Terry L. Sloane Ward 2
Kim Herbstritt Ward 3
John C. Fox Ward 4 Vice Mayor