Alexandria City Manager Presents Proposed FY27 Budget

The City of Alexandria is entering the FY27 budget cycle focused on stability, essential services, long-term community well-being.

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The City of Alexandria is entering the Fiscal Year 2027 (FY27) budget cycle focused on stability, essential services, and long-term community well-being. Here's more about the budget, in a press release from the City:

"While the City faces ongoing fiscal pressures, our commitment remains clear: to deliver reliable services, steward public resources responsibly, and continue moving Alexandria forward. 

Steady progress defines the FY27 budget process. Responsible financial management and dependable service delivery go hand in hand. While we must make thoughtful adjustments to align the City’s spending with available resources, we remain focused on protecting core services, advancing equity, preserving infrastructure, and sustaining the reliability that residents expect. 

The proposed FY27 budget addresses rising costs from the City’s current collective bargaining commitments, funding requests from Alexandria City Public Schools (ACPS), and debt repayment costs for the City and schools. At the same time, general fund revenue growth has remained modest. These factors created a $22.9 million budget gap that required collaborative efforts to address.

The proposed FY27 General Fund Operating Budget totals $977.3 million and makes several key investments without proposing an increase in the real estate or personal property tax rates. The budget recommends a step increase and a 1.5% pay scale adjustment for eligible non-collectively bargained City employees and funds $7.16 million in FY27 for collective bargaining agreements that are currently in place for Administrative & Technical, Labor and Trades, Fire, and Police units. 

This budget also advances several City Council priorities, including increased investment in ACPS, funding for critical food security programs provided by nonprofit organizations, affordable housing, eliminating community disparities, and strengthening the City’s economy. 

THE PROPOSED FY27 BUDGET:   

  • Maintains the current real estate tax rate of $1.135 per $100 of assessed value and continues tax relief programs for older adults, residents with disabilities, and veterans;
  • Does not propose changes to personal property tax, sanitary sewer, or refuse rates;
  • Increases the stormwater utility fee rate from $340.30 to $357.40, as scheduled;
  • Fully funds the third year of Labor and Trades collective bargaining agreements and the first year of the Administrative & Technical, Fire, and Police collective bargaining agreements;
  • Provides a step increase and 1.5% pay scale adjustment for eligible City employees who are not covered by a collective bargaining agreement;
  • Increases the transfer to the ACPS Operating Fund by $4.2 million (1.5%) to support the ACPS operating budget;
  • Provides new ongoing funding for emergency shelter, meals for older adults, and other survival services;  
  • Supports community-based food hub operations;
  • Funds early childhood support and intervention programs;
  • Funds strategic small business initiatives;
  • Uses $9.0 million in efficiency savings, cost-cutting savings, and vacant position reductions to balance the budget. 

This proposed budget maintains the essential services that residents rely on every day, including public safety, education, infrastructure maintenance, human services, libraries, recreation, and environmental programs, while positioning the City for long-term resilience. 

WHEN AND WHERE TO MAKE YOUR VOICE HEARD ON THE FY27 BUDGET 

City Manager James Parajon invites the community to take part in the FY27 Budget planning process by attending public hearings, listening to work sessions, submitting questions, or exploring the budget through our online engagement portal. Upcoming work session and public hearing dates and times are available on the City Calendar.

Your input helps City leaders make informed decisions about Alexandria’s priorities and investments for the year ahead. 

FY27 Budget Public Hearings and Work Sessions Calendar 

Across every department, City employees continue to serve the community with professionalism, dedication, and care. These efforts reflect a City that remains steady, responsive, and committed to meeting today’s needs while preparing for tomorrow’s opportunities."

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