Development News for Winchester, Virginia

Winchester Finance Committee Recommends Establishing Tourism Zones to Boost Local Businesses and Access State Grants

The Finance Committee discussed and voted to recommend approval of an ordinance to establish tourism zones within the City of Winchester. This ordinance aims to support tourism-based businesses, including hotels, restaurants, theaters, museums, craft breweries, and distilleries. The proposed zones would overlap with existing or planned Neighborhood Development Districts (NDDs) in areas like Cider Hill, Cedar Valley, Old Town, and Berryville Avenue. The creation of these zones is a prerequisite for accessing state tourism grants, which can fund up to 10% of eligible projects. The ordinance allows for local control in managing these incentives, including fast-tracking, waiving certain regulations, and potential tax abatements, with a provision to amend the agreement as needed. The committee also discussed clarifying that the agreement runs with the land, not just the owner. This initiative is seen as a way to provide more tools to support existing and new tourism-related businesses, especially in the Old Town area, by offering a lower point of entry for investment compared to newer construction projects.

April Financial Report Shows Strong Performance, Anticipates Fund Balance Decrease Due to Planned Expenditures

The Finance Committee received a financial report for April 30th, indicating that most revenue streams are on track or trending above the previous year. Sales tax and mill tax are performing well. The transient lodging tax is showing a decrease year-over-year, which was anticipated due to factors like fuel prices and reduced travel, and this decrease has been factored into the next fiscal year's budget (2027) with a reduced transfer to the tourism fund. General funds are healthy, with revenues expected to exceed operating expenditures. A planned decrease in fund balance is expected due to the use of fund balance for capital projects and an early debt repayment on the 2014 series bond. The total fund balance is projected to decrease from approximately $37.5 million to $36.5 million by June 30th, 2025, which remains within the city's policy of at least 20% unassigned fund balance (currently projected at 22%). Utilities and stormwater departments are also performing strongly, with significant capital projects underway and substantial bond proceeds available for future projects.