Alexandria’s revenue tax is growing, but too sluggishly to keep pace with the expenditures — leading to a $17 million shortfall as the city heads into budget season.
That estimate, from Mayor Justin Wilson’s monthly newsletter, is slightly lower than the estimate from a City Council meeting in November, but still presents a substantial challenge for city leadership attempting hold off on a tax rate increase.
Wilson said Alexandria’s budget is built around real estate taxes, which are growing but with some worrying signs.
“In Virginia, the structure of municipal finance is heavily reliant on real estate taxes,” Wilson wrote. “Consequentially, in Alexandria the real estate market, both residential and commercial, dictates our budgetary fate. Last year, we saw the healthiest growth in our real estate tax base in over 15 years. Yet, in the past year, mortgage rates have more than doubled. It’s hard to imagine that such an increase will not eventually impact our real estate market.”
Real estate tax revenue is projected to increase by 1.2% — which Wilson called a “return to the anemic growth that characterized much of the last decade and a half.”
Wilson said residential taxpayers are already paying more due to appreciation in the residential tax base, and adding a tax rate increase on top of that would add an even greater burden to local residents.
“I believe we should again work to avoid a rate increase while protecting the core services our residents depend on,” Wilson wrote. “Last year was the 6th budget in a row without a tax rate increase and I am hopeful we can continue that pattern.”
And yet, the city will have to find a way to close the $16.1 million shortfall. That shortfall is mostly attributed to an increase in city operations, the annual transfer to Alexandria City Public Schools and city debt service.
“With these revenue estimates and expenditure estimates, this brings us to a projected revenue shortfall of $16.1 million,” Wilson wrote. “Given that our local budget must be balanced, that shortfall must be resolved with either spending reductions, tax increases or some combination of the two.”
City Manager Jim Parajon, who warned City Council last month that “the budget is going to be tight,” is scheduled to present a budget to Council on Feb. 28.
The Alexandria Police Department said in a release that a handgun was confiscated from a student at Lyles-Crouch Traditional Academy (530 S St Asaph Street) today. According to the release:…
It’s been a busy news week in Alexandria. On the positive site: one of the bigger stories is that the city achieved zero traffic fatalities in 2023. It’s a significant…
If you’re looking for something to do tonight (Friday), Gadsby’s Tavern Museum is hosting a 21-and-over “Tavern Games Night“. The event is scheduled for 7-9 p.m. at Gadsby’s Tavern Museum…
The Alexandria Police Department (APD) arrested Robert Walker, a 34-year-old D.C. resident, for a carjacking just a few blocks away from APD headquarters and striking a police vehicle. Police said…
Dreaming of small-town charm with big-city convenience? Look no further than 7156 Main St in Clifton, Virginia! Nestled just 30 miles from the heart of Washington D.C., this picturesque property offers the best of both worlds.
Escape the hustle and bustle of the city to find tranquility in this quaint, historic town. With its tree-lined streets and friendly community atmosphere, Clifton is the perfect place to call home. Yet, with its close proximity to the nation’s capital, you’ll never be far from the excitement and opportunities of urban living.
Imagine weekends exploring local shops, dining at charming cafes, and enjoying outdoor adventures in nearby parks. Then, commute to D.C. for work or play, soaking in all the culture, entertainment, and career opportunities the city has to offer.
Are you looking to work on health and fitness from the comfort of your own home?
Skip the big box gym and try out our in-home personal training service. We bring the gym to you so that you can save time and avoid the hassle of going the the crowded gym.
We bring all the equipment you need for a solid workout and if you have a community gym we can use that too.
We offer programs that will help with weight loss, strength, flexibility, more energy and overall feeling better.