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Alexandria’s proposed fiscal 2026 budget would keep real estate and personal property tax rates unchanged while directing additional money toward schools, employee compensation, housing, transportation and other community priorities.

City Manager James Parajon presented the proposed operating and capital budget to the Alexandria City Council on Tuesday, Feb. 25. The $956.5 million General Fund operating plan does not call for significant service reductions.

The proposal arrives amid uncertainty surrounding federal policies and directives, which could affect Alexandria’s immigrant community and the more than 13,000 federal workers who live in the city.

Parajon said the plan builds on investments made in previous years, with an emphasis on improvements residents can feel in their daily lives.

Taxes, fees and employee pay

The proposed budget maintains the real estate tax rate at $1.135 per $100 of assessed value. It also leaves personal property tax, sanitary sewer and refuse rates unchanged.

The stormwater utility fee would rise as previously scheduled, increasing from $324.10 to $349.30.

Non-collectively bargained city employees would receive a step increase and a 1% pay-scale adjustment. The budget also funds collective bargaining agreements covering fire, police, and labor and trades employees.

City Council priorities supported by the plan include attracting and retaining workers, expanding affordable housing, reducing community disparities and strengthening Alexandria’s economy.

Alexandria City Public Schools would receive an $8.2 million, or 3%, increase in the city’s operating transfer. That funding would help support the school system’s operating budget and a 1% pay-scale adjustment for ACPS staff.

The proposal also increases DASH funding to cover collective bargaining and inflation-related operating costs. Other allocations would support a community food hub, early-childhood assistance and intervention projects, and additional funding for Neighborhood Health, a federally qualified health center.

The Alexandria Economic Development Partnership would operate a business accelerator pilot program funded through the budget.

Officials identified $6.4 million in efficiencies and spending reductions to balance the proposed plan.

$2.08 billion capital program

Alexandria’s proposed Capital Improvement Program for fiscal years 2026 through 2035 totals $2.08 billion, with an emphasis on existing infrastructure and targeted new investments.

Fiscal 2026 capital allocations include:

  • $21 million for Alexandria City Public Schools, matching the School Board-approved capital funding request for the year.
  • $40 million for the Waterfront Flood Mitigation project.
  • $15.4 million for Alexandria’s contribution to WMATA’s capital program.
  • $19.3 million to renovate City Hall, Market Square Plaza and the parking garage.
  • $5.5 million for street reconstruction and resurfacing, covering an estimated 50 to 55 lane miles.
  • $5 million for multimodal improvements associated with the South Van Dorn Bridges project.
  • $5.2 million for DASH bus fleet replacement and state-of-good-repair work.
  • $1.8 million for the Old Town Pool renovation.

Public review and adoption schedule

Alexandria plans a series of public hearings and work sessions before the budget and tax rate are adopted. Scheduled meetings will offer in-person and remote attendance options.

The calendar includes:

  • Monday, March 10, at 7 p.m.: City Council public hearing on the fiscal 2026 budget.
  • Tuesday, March 11, at 7 p.m.: Maximum tax rate setting.
  • Wednesday, March 12, at 7 p.m.: Budget Work Session No. 3.
  • Saturday, March 15, at 9:30 a.m.: Fiscal 2026 budget public hearing.
  • Monday, March 17, at 7 p.m.: Budget Work Session No. 4.
  • Wednesday, March 26, at 7 p.m.: Budget Work Session No. 5.
  • Tuesday, April 8, at 5:30 p.m.: Tax rate public hearing, followed by the budget add-delete hearing at 6 p.m.
  • Tuesday, April 22, at 6:30 p.m.: Non-real-estate tax public hearing, followed by Budget Work Session No. 6 at 7 p.m.
  • Monday, April 28, at 7 p.m.: Final add-delete work session, if needed.
  • Wednesday, April 30, at 6 p.m.: Budget and tax rate adoption.
  • Tuesday, July 1: Fiscal year 2026 begins.