The Alexandria City Council voted to unanimously adopt the Fiscal Year (FY) 2026 operating budget of $956.5 million, Wednesday, April 30. The new budget will go into effect July 1, 2025.
“This budget reflects months of thoughtful collaboration between City Council, our residents, and our workforce. Together, we asked tough questions, shared priorities, and worked through challenges to ensure this plan moves Alexandria forward.” said Mayor Alyia Gaskins “I’m deeply grateful to everyone who contributed to this process—your voices and values helped shape a budget that builds on our progress and invests in the future we’re creating together.”
The FY 2026 budget was adopted with no increase to the real estate tax rate for Alexandria residents and businesses.
Key highlights of the FY 2026 Budget
The approved budget focuses on City Council Budget priorities of eliminating community disparities, employee attraction and retention, and promoting the economic strength of Alexandria.
- Supports community-based food hub operations;
- Allocates funding for early childhood support and intervention projects;
- Increases funding for Neighborhood Health, a Federally Qualified Health Center;
- Maintains the current real estate tax rate of $1.135 per $100 of assessed value;
- Does not propose changes to personal property tax, sanitary sewer, or refuse rates;
- Increases stormwater utility fee rates from $324.10 to $340.30 as scheduled;
- Funds an increase of $9.4 million in the ACPS Operating transfer to support the ACPS operating budget including a one-time $1.2 million investment in support services for Alexandria City Public Schools (ACPS) to help improve the physical, social, and emotional well-being of students and families.
- Increases DASH funding to support collective bargaining and inflationary costs of operations;
- Uses $6.4 million in efficiency and cost-cutting savings to balance the budget;
- Includes funds for the FY 2026 – 2035 Capital Improvement Program (CIP), which totals $2.08 billion and is focused on improving our existing infrastructure and making strategic new investments.
“Each year, the budget process challenges us to make thoughtful, strategic choices—and this year was no exception. Despite these challenges, our focus remained on maintaining high-quality services and delivering on the priorities our community counts on.” said City Manager James Parajon “I’m proud of the careful, collaborative work across departments to ensure every dollar is aligned with Alexandria’s values and vision.”
To see the full budget adoption document to see how it affects your day-to-day life, visit alexandriava.gov/Budget.