Suffolk Budget Plan Cuts Tax Rate 1 Cent, Raises Utility Fees

The $954 million budget proposal also includes funding for schools, employee pay hikes, and public safety positions.

Apr. 8, 2026 at 1:07am

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An abstract geometric illustration using bold shapes and primary colors to conceptually represent the key economic elements of Suffolk's proposed municipal budget, including tax rate changes, utility fee adjustments, and employee compensation shifts.Suffolk's budget proposal aims to address affordability while preserving core city services through a balanced approach of tax cuts, utility fee hikes, and strategic investments.Suffolk Today

Suffolk's proposed $954 million budget for fiscal year 2026-27 would lower the city's real estate tax rate by 1 cent, keep refuse and stormwater fees flat, raise water, sewer, and hotel taxes, and add funding for schools, employee pay increases, and new public safety positions.

Why it matters

The budget reflects Suffolk's efforts to balance affordability concerns for residents with maintaining core city services and infrastructure. The proposal comes amid softening revenue conditions, including leveling off of property tax reassessment increases and rising costs from disabled veterans' tax exemptions.

The details

Under the budget plan, the real estate tax rate would drop from $1.07 to $1.06 per $100 of assessed value, while stormwater fees remain flat and refuse rates stay unchanged. However, water and sewer bills are set to rise about 5%, or $5.90 on average, and the hotel room tax would increase from $1 to $2 per night. The budget also includes a 3% cost-of-living adjustment and 1% regional compensation adjustment for city employees, as well as the addition of 24 new positions, including 4 new school resource officers.

  • The proposed budget is for fiscal year 2026-27.
  • City Council reviewed the budget proposal during an April 1 work session.

The players

Stephanie Wells

Suffolk's Finance Director, who presented details of the proposed budget to City Council.

Kevin Hughes

Suffolk's City Manager, who framed the budget proposal around affordability, public safety, infrastructure, service delivery, and education.

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What they’re saying

“You're hearing from the citizens about their challenges with affordability. What can we do at a local level but still maintain our operations and the importance behind them?”

— Kevin Hughes, City Manager

“We are estimating for FY 27 approximately $18 million in exemptions. That's 10 cents on the real estate tax rate.”

— Stephanie Wells, Finance Director

What’s next

City Council will vote on the proposed budget at a future meeting.

The takeaway

Suffolk's budget balances resident affordability concerns with maintaining core city services and infrastructure, reflecting the challenges municipalities face in managing rising costs and softening revenue conditions.