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LEXANDRIA, VA — The City of Alexandria's proposed budget for fiscal year 2026 totals $956.5 million, a 3.2 percent increase from the previous year. Despite maintaining the same real estate tax rate of $1.135 per $100 of assessed value, property owners can expect higher tax bills due to increased property values. The average residential real estate tax bill would rise from $7,931 to $8,285 annually.

    The city's budget addresses a projected $18 million gap through efficiency savings and collective bargaining commitments. However, funding requests from Alexandria City Public Schools and debt service obligations contribute to the increased spending. The proposed budget acknowledges uncertainty stemming from federal actions on reducing the workforce and immigration enforcement, affecting an estimated 13,000 federal workers in the city.

    The overall residential tax base has grown by 4.55 percent, with average single-family home values increasing by 4.06 percent to $1,001,336. Condominium values have risen by 5.63 percent to $447,612. The budget proposal includes a planned increase to the stormwater utility fee, supporting accelerated stormwater capacity projects to address flooding.

    The city's personnel side sees funding for collective bargaining commitments and a 1 percent pay scale adjustment for non-bargaining unit employees. Alexandria City Public Schools would receive $281.2 million in operating funds, a 3 percent increase that supports a 1 percent pay scale adjustment for ACPS staff.

    Other budget priorities include increased funding to DASH, an in-house pharmacy for the Alexandria Fire Department, and support for community-based food hub operations. The proposed budget also includes investments in infrastructure, schools, and youth programs.

    A 10-year capital improvement plan update totals $2.08 billion, a decrease of $324.5 million from last year's capital budget. Projects funded include renovations to City Hall, Market Square, and the parking garage, as well as street reconstruction and resurfacing for 50 to 55 lane miles in fiscal year 2026.

    The full budget proposal is available at www.alexandriava.gov/Budget. The city council will hold a series of public hearings and work sessions from February to April to review and adopt the proposed budget.