Water you thinking? Purcellville’s budget debate hits a boil

By Valerie Cury

At two heated Purcellville Town Council meetings in May, sharply contrasting philosophies over the Town Manager’s proposed $35.9 million FY26 budget were on full display. Mayor Chris Bertaut, Vice Mayor Ben Nett, and Council Members Carol Luke and Susan Khalil advocated trimming approximately $1.6 million from the draft budget—including significantly lowering the proposed utility rate change from a 0% increase to a further 9% decrease for water and an 11% decrease for sewer.

In contrast, Council Members Erin Rayner, Kevin Wright, and Caleb Stought did not support the Town Manager’s budget and also suggested adding double-digit utility rate hikes. They did offer one reduction—with Rayner suggesting to eliminate stipends for Council and Commission members which Rayner said amount to $80,000.

All of Town Council’s stipend is $45,656, $11,544 for the Planning Commission, and $3,156 for the Board of Architectural Review. The total sums amount to $60,320.

From the outset at the May 13 Town Council meeting, Council Member Erin Rayner pressed Town Manager Kwasi Fraser on his proposed change to reduce the transfer of the Town’s meals tax revenue from 100% to 83% from the General Fund to the Utility Fund.

“That was a policy decision made by Council—you don’t have the authority to do that,” Rayner said. “If that needed to be done, why didn’t you reach out to Council and call for another vote to change it?”

Fraser responded that the change was only a suggestion, noting that transferring 100% of the meals tax would have put the General Fund into a “steep deficit.” He added that he was willing to revert the proposal back to a full 100% transfer.

“But you don’t have the authority to change Council-directed and approved policy,” Rayner repeated, pressing the issue. “I want it to be zero,” she added, referencing her desire that no meals tax revenue be allocated to the Utility Fund.

Mayor Chris Bertaut reminded the council that the budget has not yet been finalized. “These are proposals,” he said.

Rayner interrupted, repeating her concern that Fraser did not have the authority to make such a change. However, under the Town’s budgeting process, the Town Manager is responsible for preparing and recommending the budget, and may suggest revisions until it is approved by the Council.

“To interject,” said Bertaut, “we have not voted on a complete budget yet. The Town Manager has given this Town Council one proposed budget, and now, in effect a second proposed budget.”

Fraser clarified that the decision wasn’t made in a vacuum. After reviewing the numbers with the finance team, he said, it became clear that allocating 100% of the meals tax to the Utility Fund would significantly impact the General Fund. “In my judgment, I put it to 83%,” Fraser explained. “My apologies for not having a meeting to tell you what myself and staff have done.”

Continuing the critique, Council Member Kevin Wright also insisted that Fraser had no authority to reduce the meals tax allocation.

Mayor Bertaut reiterated that the Council had not yet voted on the change. “We as a Council have not voted on a whole budget,” he said, adding that the earlier policy decision could still be revisited.

Vice Mayor Nett agreed: “It is at 100%, but he [Fraser] made a proposal, and it’s up to us to accept the proposal or not.”

Council Member Caleb Stought joined in, asking Fraser whether he had discussed the proposed change with any Council members.

“I did not. I discussed it with our staff,” Fraser replied.

Interrupting, Stought pressed, “Only with finance staff?”

“That is correct,” Fraser confirmed.

Bertaut concluded, “But let’s recognize that it was pursuant to bringing a second proposed budget for the Town Council for their consideration.”

Changing direction, Rayner said that eliminating the vehicle license fee would put the Town at a loss of $183,000 in annual tax revenue. 

Later in the meeting, addressing that point, Nett said, “I am proud to have voted for that. I’d do it again. I dispute it’s a $183,000 loss—as you know, the County funding pays for that for one year.”

Rayner said that, due to the Town Council majority’s vote to lower the property tax rate, the Town is also losing $279,000 in revenue. 

Again, Nett said he was proud to have voted for the equalized rate. “If you want to characterize that as a loss, so be it.”

Rayner also noted that the Council majority voted to lower utility rates by 9% for water and 11% for sewer.

Nett reminded the Council that the Town had an election in November 2024 and he ran on lowering utility rates. 

“I heard from the overwhelming majority of the residents [going] door to door that the water rates are a real concern for them, and I believe there are alternatives to that. We can find it through trimming the budget,” he said. Nett added he was not interested in “revisiting our vote to reduce our water rates by 9% for water and 11% for sewer.”

Rayner said the Town staff is not bloated and that “we run a lean and mean organization.” Rayner also said the Utility Fund is undercharging its users. “If people can’t afford their utility fees, then they could use a fund,” she added.

The Town of Purcellville has a population of approximately 8,900 residents and employs about 90 staff members, nearly 39% of whom earn six-figure salaries.

The Utility Fund operates at a deficit in part because employees who are paid through the General Fund charge back costs to the Utility Fund—for example, $311,843 in FY25 was charged for financial work. Additionally, the Public Works Department, also funded through the General Fund, charged back $458,775 in FY25 for services including executive management, meter reading, and utility line management work.

Rayner said that the Stantec, the Utility Rate Consultant for the Town, showed double digit increases for FY26-27 “but then it normalizes.” She said with the Council Majority’s model “you get the double digits in 28-30—”so you are pushing the can down the road.”

Stought said he wanted a long-term plan, not just a plan for one year, and this was echoed by Wright. 

Council member Khalil said the Town can reach “good structure by taking a different approach—cuts have to be made when times are tough.”

Bertaut noted that Rayner only presented two of Stantec’s eight proposals. He said the two models she highlighted were “pretty much of a throw away because that’s last year’s scenario. The Capital Improvement Program forecast has changed for this year and out years and therefore we would not have a sustainable Enterprise Utility Fund either on the water or on the sewer side using last year’s rates.”

He said that 2,700 households and businesses carry the burden of supporting Town operations, as 52% of the in-town land is occupied by municipal buildings, community centers and churches—”none of which generate revenue for the General Fund.” 

As of the start of FY26, the Town is carrying $46.3 million in inherited debt which extends to 2040, noted Bertaut. The water and wastewater debt is $38.1 million and that equals $14,137 in debt per household.

That debt originated from then former Mayor Bob Lazaro and Council Members Joan Lehr and Tom Priscilla to name a few, who supported a major upgrade to the wastewater treatment plant. At the time, the facility was operating at approximately 40% capacity. The choice was made to expand the plant to accommodate future growth, during a period when the Town had a $6 million mandated upgrade, which was paid for through grants.

Bertaut said that if the Town draws $1.6 million from the General Fund reserves this year— that leaves us at $4.2 million above the 30% reserve policy limit.

Rayner said she opposed freezing two and a half positions in the Planning Department and reiterated that she is against any reduction in Town staff.

Fraser said, “We did not take this decision lightly, myself, our director of Human Resources and Assistant Town Manager.” They chose not to fill the positions, so the question is whether the Town Council trusts staff to make those decisions internally, given their understanding of the organization’s structure, he said.

Nett asked Stought whether he “supported lowering utility rates for our residents.” In a raised voice, Stought responded, “No, because it will necessitate dramatic rate increases five years from now.”

Bertaut made a motion to support Stantec’s recommendation of increasing the level of the Town’s reserves in water to 100% and wastewater to 75%.

Bertaut, Nett, Luke and Khalil voted to allocate 83.6% of the Town’s Meals Tax revenue to the Utility Enterprise Fund.  Rayner, Wright and Stought voted against the motion.

At the May 27 Town Council meeting, during the citizen comment portion, business owner and Purcellville Business Association President Jason Sengpiehl spoke on behalf of the Association’s Board, on which Council Member Erin Rayner—former two-term president—serves as treasurer.

Sengpiehl said that the association is concerned over the Town Council’s “continued pattern of divisions that demonstrate a clear disregard for Purcellville businesses, property owners, and residents.” He said that council has passed on “opportunities to revitalize our business community through well planned annexation efforts, infill development and infrastructure improvements.” 

Sengpiehl said that the council actions are “missed opportunities and reflect a troubling unwillingness to support growth, or invest in the long-term health in the town’s economy.”

Regarding the wastewater plant, Fraser said that the Town needs four screens. Three of them are together and one is separate. Fraser suggested waiting until FY27 to do the three fine screens—and that will push $750,000 to the FY27 budget. The Town is waiting on DEQ to give their consent on this proposal.

Stought argued that if the Town waits a year the screens could increase from 10.83% to 14.2% due to inflation. However, the contract would be structured in a way that would not result in a cost increase. 

Fraser said, “The Town is implementing project management so we have visibility on tasks and who is assigned to it.”

Fraser had to talk over Wright, as he continued to loudly interrupt him. Said Wright, “To say we are going to find efficiencies—it just doesn’t work,”—arguing that the Town would delegate responsibilities to a reduced workforce, only to later require a budget amendment. “And where is that money coming from?” he asked.

As Fraser explained the Town’s project management efforts, Rayner—seated beside him—began laughing, shaking her head and reacting animatedly. Her reaction, which came as Fraser was emphasizing the seriousness of internal operations, prompted him to respond directly: “That’s not a joke, because in every organization you have three elements: people, system, and process.”

As Fraser began to respond—“We will be monitoring”—Wright shouted over him, “No, no! Where is that money coming from?”

Mayor Bertaut gaveled Wright for interrupting. “Let him finish his response, sir.”

“I will do what I wish, thank you,” Wright shot back.

“Not if you wish to remain in this meeting, sir,” Bertaut responded.

Fraser, finally able to complete his thought, said, “That money comes from the 200% in over budget reserve money that we have. I’m saying that the reserve is overflowing.”

While discussing staffing at the wastewater treatment facility, Stought raised concerns about safety, noting that the department was short one lab technician and the position should not be frozen. He argued that having only one person in the lab made the work less safe and said a second technician was needed to provide oversight. Stought implied that the Town’s treated wastewater might not be safe to drink without a second lab technician.

That prompted Council Member Carol Luke to respond, “Then don’t drink it.”

“Don’t drink it?” Stought repeated. “Council Member Luke, was that your recommendation? Don’t drink it?” he shouted. “I know that it’s good—cuz our Public Works staff ensures that it is good. Don’t drink it?” he shouted again.

“Excuse me,” Town Manager Fraser interjected.

“What a horrible thing to say,” Stought said, cutting him off. “You are horrible,” shouted his wife who was sitting in the audience.

Fraser continued, “Excuse me, folks. When we say ‘don’t drink it,’ we are talking about wastewater. So please get that clear, folks—we are talking about the wastewater, not drinking water.”

As with previous meetings, the atmosphere in the room was tense and toxic. Members of the 15-person audience repeatedly shouted, spoke out of order, and openly mocked both the Town Manager and the Council majority—behavior that included active participation by Council Member Caleb Stought’s wife.