Mayor Justin Wilson, City Of Alexandria | City Of Alexandria website
Mayor Justin Wilson, City Of Alexandria | City Of Alexandria website
City Manager James Parajon presented the proposed operating and capital budget for Fiscal Year 2026 to the Alexandria City Council on February 25, 2025. The budget focuses on service delivery, resident quality of life, program sustainability, affordability, and community investment.
"In crafting this year’s budget, we built on the progress made over previous years by making investments that residents can feel improve their lives," said Parajon. He emphasized investments in schools, youth programs, infrastructure, housing options diversification, and economic growth as key areas.
The FY 2026 Proposed General Fund Operating Budget amounts to $956.5 million. It does not propose a real estate or property tax rate increase or significant service reductions. The budget includes a step increase and a 1% pay scale adjustment for non-collectively bargained city employees while funding collective bargaining agreements for Fire, Police, and Labor and Trades groups.
Key highlights include maintaining the current real estate tax rate of $1.135 per $100 of assessed value without changes to personal property tax or refuse rates but increasing stormwater utility fee rates from $324.10 to $349.30 as scheduled.
Additional funding supports an increase in ACPS Operating transfer by $8.2 million (3%), increases DASH funding for collective bargaining and inflationary costs, supports community-based food hub operations, funds a business accelerator pilot program operated by AEDP, allocates resources for early childhood support projects, increases funding for Neighborhood Health Center operations, and uses $6.4 million in efficiency savings to balance the budget.
The Proposed FY 2026 – 2035 Capital Improvement Program totals $2.08 billion with significant allocations including:
- $21 million for Alexandria City Public Schools
- $40 million for Waterfront Flood Mitigation
- $15.4 million contribution to WMATA's Capital Improvement Program
- $19.3 million for renovations at City Hall
- Funding street reconstruction/resurfacing approximately 50-55 lane miles
- Multimodal upgrades as part of South Van Dorn Bridges project
Residents are encouraged to participate in the budget process through public hearings and meetings scheduled between February and April 2025.
For more information about these events visit alexandriava.gov/Budget.
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