CAPE CHARLES, Va. — The Cape Charles Town Council will kick off its Fiscal Year 2026 budget planning process with a work session on Monday, May 6. The session will include a deep dive into key financial components as officials look ahead to funding priorities, tax rates, and potential capital projects.
Council members are set to review detailed fund budgets, fund balance reserves, strategic revenue planning, and capital improvement proposals. They will also begin discussions on setting tax rates for the upcoming fiscal year.
According to town staff, core General Fund revenue is projected to rise by 4.77% over the previous year, largely due to new construction and steady growth in key revenue sources such as meals tax, transient occupancy tax, and business licenses. Meanwhile, core expenses are expected to increase by 3.7%.
The proposed budget includes a 3.5% salary increase for all regular employees—2.5% attributed to cost-of-living adjustments and 1% to step increases. The budget currently projects a surplus of $171,229 in General Fund revenues over expenditures, with the unassigned fund balance sitting at just over $3.5 million.
One significant discussion point will be the inclusion of debt service for a possible land acquisition, which could serve as the site for a new Town Hall. Other large-scale capital projects under consideration include a new Municipal Center, a downtown Visitor’s Center with restrooms, beachfront revitalization, and upgrades to the town harbor.
In addition, the Council is expected to evaluate the potential purchase of railroad properties that could play a role in future development plans.
| Category | Details |
|---|---|
| Core General Fund Revenue | ↑ 4.77% (Driven by new construction and growth in Meals, TOT, BPOL taxes) |
| Core General Fund Expenses | ↑ 3.7% |
| Employee Salary Increase | 3.5% total (2.5% COLA + 1% step increase) |
| General Fund Surplus | $171,229 (Revenues exceed expenditures) |
| Unassigned General Fund Balance | $3,519,812 |
| Debt Service (Discussion Only) | Included for potential land acquisition (for new Town Hall) |
| Major Future Capital Projects | – New Municipal Center – Visitor’s Center & Restrooms – Beachfront Revitalization – Harbor Upgrades |
| Other Planning Considerations | Evaluation of potential railroad property purchases |
| Next Key Date | Public Hearing on Budget: June 5 |
A public hearing on the FY26 budget is tentatively scheduled for June 5, allowing residents an opportunity to weigh in before the budget is finalized.
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