Earlier this year, Alexandria's City Manager Jim Parajon proposed a $911.3 million budget for the city's 2025 fiscal year, which starts July 1. While that is a 3% increase from the current year, the budget did not include any increase in the real estate tax rate for property owners.
But that might change. City Council has asked city staff to come up with budget guidance on a four-cent tax increase. This does not mean that the tax rate will definitely increase, but it is a possibility. City Council members will host more public meetings and debate before passing a final budget on May 1 for the upcoming fiscal year.
Part of the reason for the proposed increase is the need for more funding for both affordable housing and for Alexandria City Public Schools.
At Tuesday evening's City Council member, Vice Mayor Amy Jackson proposed a 3-cent increase, countered by a 6-cent increase proposal by Councilmember Canek Aguirre, which Jackson was willing to consider.
In asking for the 6-cent increase, which would bring real estate property tax rates to $1.17 per $100 of assessed value, Aguirre said that the city needs the money. "We have not been able to find new revenue. We are 20,000 residents larger with staff that has been at the same level as 2010. We have to pay for services, our schools are asking for more money, we still have a collective bargaining agreement to go with general services staff that we have here in the city, we have our own infrastructure buildings in the city that we have to pay for...."
Jackson reminded those at the meeting that the advertised tax rate was not what would definitely be in the budget — it was just a maximum ceiling to consider. Monday evening, councilmembers had a 2.5-hour public hearing on the budget "about affordable housing issues, about school issues — we have a lot that our city is challenged with right now. Other jurisdictions are as well, and that's on them how they're handling it, but we certainly want a buffer in the coming weeks as we make really big, bold decisions for our city."
Often, the advertised rate is not what is actually in the budget — the council often approves a rate that is slightly less. Councilmember Kirk McPike noted that an increase or 3 or 4 cents was a more realistic range.
With backing from Councilmember Alyia Gaskins, members settled on an advertised increase of 4-cents per $100 in assessed value.
For the average homeowner, taxes would increase by somewhere around $300 to $350 in the next fiscal year.
To learn more about the budget, public hearings and how to comment on the proposals, visit www.alexandriava.gov/Budget.
