City Council approves $979.1M budget with unchanged real estate tax rate but eyes tougher choices ahead

May 1, 2026 - 04:19

The Alexandria City Council voted unanimously Wednesday night to approve City Manager Jim Parajon's proposed $979.1 million budget for Fiscal Year 2027. The spending plan, which represents a 2.4% increase over the current fiscal year, keeps the real estate tax rate unchanged at $1.135 per $100 of assessed value.

While the vote was unanimous, several council members voiced caution about the city's financial outlook. The budget avoids major cuts for now, but officials acknowledged that tougher decisions are likely coming in future years. Rising costs for public safety, schools, and infrastructure projects are putting pressure on the city's finances, and the current tax rate may not be sustainable long-term.

The approved budget includes funding for key city services, including additional resources for the Alexandria City Public Schools system and maintenance of existing city programs. However, council members noted that the 2.4% increase is relatively modest and reflects a conservative approach to spending.

Residents will see no change in their real estate tax rate, though individual tax bills may still rise if property assessments increased. The council emphasized that the goal was to provide stability for homeowners while keeping the city on solid financial footing. With economic uncertainties ahead, the council signaled that future budgets will require more difficult trade-offs.