By Purcellville News Staff
The Purcellville Town Council adopted the FY2027 budget Tuesday night with a last-minute amendment cutting $200,000 from the information technology personnel line, despite warnings from staff that the reduction would create serious operational and security risks. Budget adoption is only one of three actions Virginia code requires before the start of a new fiscal year. An appropriations resolution and a master tax and fee schedule remain pending. Council also adopted a new Rules of Order over objections, approved $13,787 to extend interim town manager coverage, authorized a staffing agency contract to recruit a new interim, and opened a discussion on the future of the town-owned Pullen House property. A representative from Davenport, the town’s financial advisor, walked council through the recent S&P Global downgrade of the town’s AAA credit rating and presented a multi-year rate plan. A motion to extend the meeting failed, and several agenda items were not reached.
Davenport: Rate Plan and S&P Downgrade
A representative from Davenport explained that S&P downgraded the town from AAA to AA+ with a negative outlook because of years of delayed utility rate increases, prior rate reductions, and unsustainable annual transfers of $2.9 to $3 million from the general fund to the utility enterprise fund. Fitch still rates the town AAA and Moody’s rates it Aa2. AA+ remains a strong rating, but council was advised to take the report seriously.
Davenport recommended council move forward with the necessary rate increases despite the hardship of double-digit figures, work with rate consultant Stantec to design targeted relief for fixed-income residents, and avoid drawing more than $3 million from the general fund at this time. On borrowing, the representative recommended a 4.5 to 5 percent planning assumption and suggested council adopt a reimbursement resolution if capital is cash-funded in the short term.
Council Member Susan Khalil walked council through Stantec’s proposed 16.5 percent water and 14.5 percent sewer increases, arguing the figures would fund what is needed for the town’s Capital Improvement Plan. The rates are calibrated to bring reserves to 75 percent for water and 50 percent for sewer. Members debated codifying a five-year rate plan when priorities shift annually, with some warning alternative scenarios could lead to increases of 35 and 32 percent in coming years. Two reserve scenarios were discussed: a $4.1 million general fund drawdown and an alternative drawing about $3.64 million driven largely by a one-time capital contribution to utilities.
Pullen House Property
Council opened a discussion on the future of the town-owned Pullen House property at 301 S. 20th Street, roughly half an acre near the adjacent recreation area. The original house was demolished due to asbestos contamination. A prior winning bidder intended to build a duplex, but revised zoning now requires a special use permit for that use.
Council Member Susan Khalil supported selling, estimating up to $500,000 in proceeds and arguing that town use such as a tot lot was not ideal given proximity to the road and existing recreational space. Council Member Carol Luke said it is time to sell the property, noting the town is in debt. Council Members Erin Rayner and Kevin Wright opposed sale. Rayner emphasized that once sold the asset is gone permanently and suggested partnerships such as a Historical Society proposal. Wright disputed that parking had been studied in depth and called the $500,000 figure unrealistic, noting earlier bids reached only $300,000 when the original house was still standing. Council Member Caleb Stought asked for input from the Planning Commission, the Parks and Recreation Advisory Board, and the Economic Development Advisory Committee before any sale hearing. Mayor Christopher Bertaut supported gathering input from all three citizen boards, holding a public input session, and conducting a public poll. No vote was taken.
Grievance Procedure Deferred
Council deferred consideration of the proposed town grievance procedure to a future meeting to allow further discussion with staff.
Rules of Order
Council adopted a new Rules of Order document adapted from the Loudoun County Board of Supervisors’ rules. Council Member Caleb Stought questioned whether council would actually follow the new rules, citing recent agenda changes made without advance notice, incomplete motion documentation, and closed-session confidentiality issues. Town Attorney Robert Sproul said failing to follow procedure on certain actions, such as adopting an ordinance, could be grounds to invalidate the action, and that council retains authority to censure members for conduct issues.
Council Member Erin Rayner asked for more time to correct typographical errors, inconsistencies in how regular meetings and work sessions are defined, and a default 10:00 p.m. end time she opposed. Stought also raised First Amendment concerns about public comment provisions and asked to table the vote. Sproul offered to compare prior legal guidance against the current document. The motion passed, with no votes citing the need to correct errors before adoption.
Interim Town Manager
HR Director LaDonna Snellbaker reported that of approximately four firms responding to the town’s recruitment RFP, only one was deemed qualified. Council Member Erin Rayner opposed the direction, questioning the need for another interim given the assistant town manager’s capabilities. Budget Amendment 26-029, providing $13,787 to fund interim coverage at 24 hours per week through June 30, 2026, passed with one no vote. A second motion authorizing the staffing agency contract at $126 per hour passed unanimously, with the goal of overlapping a new contracted interim with the current interim near the end of July or beginning of August. Sproul noted state law and the town charter contain residency requirements that may limit a non-local interim to 90 days, with the charter language described as vague.
Mayfair Crown Drive Easement Removed From Agenda
Council agreed to remove the proposed right-of-way easement permitting connection of Mayfair Crown Drive to Centerfield Farm Parkway from the agenda after the Mayfair HOA indicated it did not want to acquire the road.
FY2027 Budget Adoption
Interim Town Manager Anthony Sabio presented the FY2027 budget for adoption. The motion was to adopt Resolution 26-05-01 approving the budget with a last-minute amendment reducing IT personnel by $200,000.
Adoption of the budget is one of three actions Virginia code requires before the start of a new fiscal year. The town must also pass an appropriations resolution and approve a master tax and fee schedule, which is incorporated within the budget and appropriation process. Under state law, the appropriation is the legally required action, not the budget document itself. Only the budget adoption was taken up Tuesday night. The appropriation and master tax and fee schedule remain pending.
Council was told IT staffing consists of four people and that the reduction could eliminate at least half the department. Staff warned the cut would create serious operational and security risks. Discussion floated artificial intelligence tools as a possible offset, with reference to programs already in use, while acknowledging cuts at that level would, in one member’s words, hurt.
The motion passed. Yes votes came from Mayor Christopher Bertaut, Vice Mayor Ben Nett, and two council members. Three members voted no.
Meeting Adjourned
With business still pending, a motion to extend the meeting by 20 minutes failed. Staff reminded council a two-thirds vote is required to extend or suspend meeting rules. The Town Council Strategic Plan and Future Town Council Meetings and Agenda Items were on the agenda but not reached before adjournment.
