Same Real Estate Tax Rate, Higher Stormwater Utility Fee In Alexandria Budget Proposal

ALEXANDRIA, VA — Tax rates wouldn't change in the proposed City of Alexandria budget, but the stormwater utility fee could continue to climb.

City Manager James Parajon presented the fiscal year 2025 budget proposal and 10-year capital program update to City Council Tuesday night. The $911.3 million operating fund budget would be a 3 percent increase over the last budget after factoring in $2.2 million in efficiency and cost-cutting savings. It includes $269 million in operating funds for Alexandria City Public Schools, which would be a $10.3 million (4 percent) increase over the city's current contribution.

The city's real estate tax rate is proposed to remain $1.11 per $100 of assessed value. Even with a flat tax rate, property owners with a higher assessment in 2024 would see tax bills increase. The residential tax base increased overall by 2.98 percent. Mayor Justin Wilson shared on social media that 50 percent of single-family homes increased in value, 45 percent had no change and 5 percent decreased. For condos, 74 percent increased, 24 percent did not change and 5 percent decreased.

The budget proposes no changes to the personal property tax, sanitary sewer and refuse rates. The current vehicle tax rate is $5.33 per $100 of assessed value.

The city's stormwater utility fee is proposed to increase from $308.70 to $324.10 as the city continues to advance stormwater capacity projects and works to meet Chesapeake Bay water quality mandates. The $308.70 rate represents the annual cost for a small single-family home. Townhouses and condos pay a lower fee, while larger single-family homes pay a higher fee.

The city's stormwater utility fee is also proposed to increase as the city continues to accelerate stormwater capacity projects and continue Chesapeake Bay water quality mandates. The stormwater utility rate for a small single-family home would increase from $294 to $308.70. According to the mayor's newsletter, the proposed annual fee would be $86.44 for condos, $129.65 for townhomes, $308.70 for small single-family homes and $515.53 for large single-family homes.

On the staffing side, the budget proposes a 2 percent pay scale adjustment and step increases between 2.3 percent and 5 percent for employees not covered by collective bargaining. Library employees would get pay increases with a proposed $440,000 after a mid-year compensation study.

Collective bargaining agreements will contribute to increases in the budget. The police and fire collective bargaining agreements will result in a $2.7 million increase, while the labor and trades collective bargaining agreement will prompt a $700,000 increase. This includes $300,000 in one-time bonuses for the labor and trades employees in the bargaining unit.

The $2.33 billion Capital Improvement Programfor 2025 to 2034 would be a $73.2 million (3 percent) decrease from the current program. It includes funding for Metro's capital program, Landmark Mall redevelopment's infrastructure, stormwater projects like the Hoofs Run Culvert Bypass, City Hall renovation and HVAC replacement, the Beauregard/West End Transit Corridor, Duke Street Transit Corridor, DASH Bus's Facility and Fleet Expansion project, Del Pepper Community Center, and waterfront flood mitigation.

For ACPS, the proposed capital funding of $314.0 million would fulfill 100 percent of the superintendent's budget request. Renovations of George Mason Elementary and Cora Kelly School are among the capital funding plans for ACPS.

Other priorities in the budget are funding to maintain fare-free DASH Bus service and support employees' collective bargaining, affordable housing and eviction prevention funding, a police and sheriff public safety cadet program, staffing and operating expenses for the Minnie Howard Campus pool, staffing, voting machines and electric polls for upcoming elections, a pilot program for litter collection, advertising support for Visit Alexandria, support for community-based food hubs, youth safety and resilience activities and boosted city and library cybersecurity services.

The city manager will have a public presentation of the budget at 7 p.m. on Thursday at Charles E. Beatley, Jr. Central Library, 5005 Duke St, Alexandria, VA. City Council will hold various work sessions on the budget. Budget public hearings are expected on March 11 and 16, a budget add/delete public hearing is set for April 13, and tax rate public hearing is set for April 24. The final add/delete decisions for the budget will be on April 29, and budget adoption is expected on May 1.

For more information on the budget and timeline, visit www.alexandriava.gov/Budget.