On June 17th, Purcellville’s Town Council voted to pass the fiscal year 2026 budget after intense discussions regarding the financial stability of the town’s infrastructure and overall finances. Historically, Purcellville’s financial advisors have warned that credit agencies prioritize “structural balance” over several years when assessing financial stability. Unfortunately, the newly passed budget does not extend stability beyond a single year.

Residents and businesses alike are closely examining the implications of this budget. Whether a citizen plans to make Purcellville their home for the next six months or several years will significantly influence their perspective on the budget’s impact. Similarly, businesses are evaluating the Town Council’s commitments to long-term tax and utility projections and infrastructure needs as they consider their future in Purcellville.

Key Challenges and Concerns of the FY26 Budget:

A. Short-Term Planning vs. Long-Term Structural Balance

The council’s decision to reduce tax and utility rates for FY26 raises questions about future costs. The budget includes several concerning measures:

– Funding for four police officers, deemed necessary in an operational audit, has been eliminated.

– Employee positions, including critical roles in the water department such as the Superintendent and Senior Hydrogeologist, have been frozen.

– The part-time Economic Development position has been cut at a time when attracting new businesses is a priority.

– Funding for critical capital improvement projects, such as painting the million-gallon water tank, has been deferred, risking infrastructure integrity and increased future costs.

– The budget relies on inconsistent revenue sources, such as timbering, which won’t be available next year.

– There is a dependency on a meals tax transfer to utilities, which could last a maximum of three years, potentially impacting credit ratings.

– The budget assumes that transportation and pedestrian paths will be funded externally by VDOT, NVTA, or Loudoun County.

– The deferred warning track for Fireman’s Field could impact player safety.

B. Supermajority Vote on Tax vs. Simple Majority

The process for passing the tax rate has been contentious:

– In 2024, Town Attorney Cafferky ruled that a 5-member council vote is required to impose a tax.

– The majority of the Town Council approved a reduced tax rate in March 2025 through an unannounced motion added to the agenda.

– In 2025, Cafferky reversed his opinion, stating that only a simple majority is needed to pass the tax rate.

– According to the Virginia Municipal League, imposing taxes requires a 2/3 supermajority vote in towns.

– The approval of the tax rate enabled the budget to advance to a vote.

C. Council Member Ben Nett – Conflict of Interest

The involvement of Council Member Ben Nett has drawn scrutiny:

– Nett, a former Purcellville Police officer, was fired on April 4th and subsequently voted to dissolve the Purcellville Police Department on April 8th.

– Commonwealth Attorney Robert Anderson responded to a request regarding Nett’s participation in the budget, stating that Nett is prohibited from engaging in actions related to the police department.

– Anderson’s opinion clarified that Nett cannot vote on police matters or participate in budget deliberations involving the police department.

– On June 17, 2025, Town Attorney Cafferky opined that Nett could participate in the budget, noting that staff carefully crafted the budget to exclude changes to the previously approved police budget. Nett’s vote was crucial in passing the budget.

In summary, the FY26 budget discussions have highlighted significant concerns over Purcellville’s financial planning. The majority of the Town Council, led by Town Manager Fraser, has reduced expenses beyond what may be in the town’s best interest for the foreseeable future. As a result, numerous uncertainties loom over Purcellville’s future, affecting both residents and businesses.