FY27 City of Alexandria Budget

FY27 City of Alexandria Budget

 

What is in the Adopted FY27 Budget? 

The Alexandria City Council voted to unanimously adopt the Fiscal Year 2027 (FY27) operating budget of $979.1 million, on Wednesday, April 29. The new budget will go into effect on July 1, 2026.  

The FY27 budget was adopted with no increase to the real estate tax rate for Alexandria residents and businesses.  

The approved budget focuses on City Council Budget priorities of eliminating community disparities, employee attraction and retention, and promoting the economic strength of Alexandria.

The FY27 Budget:   

  • Maintains the current real estate tax rate of $1.135 per $100 of assessed value;

  • Supports community-based food hub operations;

  • Increases funding for the City’s Housing Rental Assistance Program;

  • Funds strategic small business initiatives;

  • Allocates funding for early childhood support and intervention projects;  

  • Funds an increase of $4.2 million in the ACPS Operating transfer to support the ACPS operating budget, which is the level of funding outlined by City Council’s budget guidance to the City Manager;

  • Increases DASH funding to increase the frequency of line 32, support collective bargaining, and meet the challenges of inflationary costs of operations;  

  • Uses $9 million in efficiency and cost-cutting savings to balance the budget;  

  • Includes funds for the FY 2027 – 2036 Capital Improvement Program (CIP), which totals $2.01 billion and is focused on improving our existing infrastructure and making strategic new investments.  

The full adopted FY27 Budget Document will be available on July 1 at  alexandriava.gov/Budget.  

Frequently Asked Questions

Each year, the City of Alexandria starts planning for the next fiscal year (FY) well before it begins on July 1. We’re already preparing for Fiscal Year 2027 (FY27), and your feedback helps guide how City funds are spent.

Just like your household budget, the City’s budget tracks every dollar that comes in and goes out. These funds support the services and spaces that make Alexandria work, such as parks and libraries, bus stops, storm cleanup, recreation centers, and even local dog parks.

The City manages two main budgets:

  • Operating Budget: Covers daily services and programs for the coming year.
  • Capital Improvement Plan (CIP): Funds long-term investments, such as major repairs, new facilities, and infrastructure projects.

The City’s Office of Management and Budget (OMB) prepares the annual operating budget and the Capital Improvement Plan. OMB also looks for ways to improve efficiency, measure performance, and make the best use of local, state, and federal resources.

 

In February, City staff and the City Manager presented the proposed budget to the Alexandria City Council. Council is now reviewing the proposal in detail during:

  • Work sessions to study funding options and priorities
  • Public budget hearings where residents can share their input

Council members made their final Add/Delete decisions on April 21 and approved the final budget and tax rate on April 29. The final budget will be posted by the start of the fiscal year on July 1.

Your voice plays an important role in shaping the City budget. Sharing your ideas helps City leaders understand what matters most to you and ensures funding decisions reflect community priorities.

Each week, the feedback, comments, and answers to the questions we ask here are collected and analyzed. 

You can get involved by participating in:

  • Budget events
  • Public Hearings
  • Surveys

When you participate, you help ensure that Alexandria’s budget reflects the needs and values of our community.

Yes. The adopted budget keeps Sunday parking free at City-operated street meters. 

Yes. Fines for parking violations will increase from $40 to $55. Meter rates on weekdays and Saturdays will also increase to $2.75 per hour.

Yes. The budget adds $30,000 in ongoing funding for arts grants, with a focus on visual and performing arts.

Yes. The budget adds $619,920 to increase how often DASH Line 32 runs. This funding depends on savings from the City's contribution to the regional transit system (WMATA).

Yes. The budget adds $558,500 in ongoing funding for the Rental Assistance program. In future years, this funding may also support other housing opportunities.

Council approved two one-time items that will not continue in future budgets: 

  • $83,000 to support the Healthy Homes Action Plan 

  • $139,200 to upgrade technology in Juvenile and Domestic Relations courtrooms 

City Council set aside funding to study three topics and will review recommendations before releasing funds: 

  • $27,000 to look at pay equity for Animal Control Officers 

  • $200,000 for a study on jail operations and efficiency 

  • $123,480 for staffing in Out of School Time programs, with a focus on therapeutic recreation 

Yes. City Council ouncil approved two changes to the City's long-term capital plan from the proposed budget: 

  • $350,000 was shifted from a waterfront flood mitigation project to improvements on the 200 block of King Street 

  • $427,000 was redirected within the Athletic Fields project to upgrade Chinquapin Field as a natural grass field instead of synthetic turf, with savings set aside for a possible second natural field nearby 

Most new spending comes from one of three sources: higher-than-expected tax revenue, the Council's contingency fund, or savings found elsewhere in the budget.