HARRISONBURG, Va. (ROCKTOWN NOW) – The Harrisonburg City Council voted Tuesday night to pass their budget for the 2025 fiscal year, which includes a 5-cent property tax hike.

With the increase, real estate in the city limits will be taxed at $1.01 per $100 assessed. While the real estate tax levy was originally proposed to be raised by eight cents, city council agreed to reduce that rate at their May 14 work session.

Some city residents were miffed over the prospect of paying a higher property tax despite the fact that the final rate was lower than what had originally been proposed. Several spoke during a public hearing on the tax increase earlier in the meeting – many of whom were elderly homeowners in the city living on fixed incomes.

City resident Bill Call addressed council’s decision with a hint of sarcasm.

“Thanks for raising my rent, and everyone else’s,” he said.

Another city resident, Ed Garrison, said he was concerned more about the assessment of property value than the property tax increase. He claimed that his home’s assessed value has increased exponentially in recent years.

“That’s over $100,000 in three years – over one-third of the value, so when you figure that in with the tax rate, that’s a hefty increase,” Garrison said. “I know there’s a lot of expenses but, at some point at some time, something’s gotta give, and that’s up to you all.”

Kay Acker told council that the tax increase would hurt more than just property owners in the city, with indirect impact on other costs of living.

“If expenses go up for anybody, that has a filtering down implication on our community at large, and I feel concerned about that,” Acker said.

She added that the impact of an increased cost of living related to higher property taxes would run contradict council’s efforts to solve the affordable housing crisis in Harrisonburg.

“It makes me feel a little bit disingenuous if we talk about raising costs that will filter down to everyone and yet, out of the other side of our mouths, we talk about affordable housing,” Acker said.

Council members agreed across multiple meetings that they were reluctant to approve a tax increase and sympathetic to the impact it would have on residents. However, they also said it’s a necessary price to pay in the short term to provide public services.

Council member Dany Fleming said he believes the investment will be worthwhile in the long run.

“Without a doubt, this is a burden on residents, but it’s also an investment into our future, I think it’s the right investment,” Fleming said. “Your budget is a reflection of your priorities and values as a city, and this budget shows our values are education, maintaining a healthy city staff, and then we recognize that housing, childcare and transportation are all things we need to step into.”

Council member Monica Robinson agreed.

“This is a seesaw kind of compromise, and we have to somehow come to terms with having a tax increase,” Robinson said. “I don’t want the taxes, it will be a burden, but I’m willing to do that as an investment in the future.”

Council voted unanimously to pass the budget later in the evening.