Against a backdrop of political and economic uncertainty, Alexandria’s City Council unanimously adopted its $956.5 million operating budget.
City Manager Jim Parajon said it was challenging crafting a budget that keeps city services without increasing real estate or property taxes. The city’s budget grew 3.2% over the current fiscal year, with its largest line item being a fully-funded Alexandria City Public Schools, as well as significant stormwater management funding for the city’s $2.1 billion FY 2026 – 2035 Capital Improvement Program.
The passage of the budget comes after months of community meetings, work sessions, and other public meetings. The city is facing federal workforce cuts, as well as an uncertain future regarding federal funding under the Trump administration.
“We are passing this budget at a time of great economic uncertainty,” Mayor Alyia Gaskins said. “We know that families, workers, small businesses, and so many in our community are navigating rising costs. They’re navigating job loss, and they’re navigating uncertainty about what’s best for them and their families.”
Gaskins thanked Parajon and City staff and continued, “Our issues are only going to become more complex as federal actions continue to take shape. The impact of those actions may be more dire and may affect us in ways that we cannot predict now.”
Residents can expect to continue paying the current real estate tax, personal property tax, sanitary sewer rate, or refuse rate. However, the city’s stormwater utility fee rates increased from $324.10 to $340.30.
City Council Member Canek Aguirre said that the city is sticking to its values.
“I think we’re going to prepare for the worst, but hope for the best,” Aguirre said. “We’re not afraid to say equity. We’re not afraid to say diversity. We know the richness and the values that it brings, not just to our community, but to our residents, and how we operate here in Alexandria.”
Council Member John Taylor Chapman expects the federal government to press down on state governments, which will impact local governments like Alexandria and challenge its initiatives and services.
“We know that we have a lot that we’re going to see in the next few years, but with the solid foundation this budget presents our community, we have a chance to ride out what is going to be an interesting storm,” Chapman said.
The proposed budget includes $9.4 million in operating funds for Alexandria City Public Schools, an $8.2 million (or 3.0%) increase over FY 2025 funding. This will fund a 1% pay scale adjustment for ACPS staff.
“You notice having looked around the country, seeing the chaos that has enveloped so many levels of our governing system,” City Council Member R. Kirk McPike said. “In the midst of chaos, the City of Alexandria is a calm in the storm… I hope that this budget and the process that has led to its adoption is one that gives the residents of the city an understanding of our priorities, but also a sense of safety in a time when so much seems untethered.”
City Council members reached consensus on April 22 on a series of budget adjustments for fiscal year 2026, including a one-time $1.2 million investment in support services for the physical, social, and emotional well-being of students and families, according to the city.
City Council also preserved funding for the Office of Climate Action while allocating $200,000 from its budget to contingency. The office will need to return the plans to the council by early October, along with evidence of spending.
The budget also includes:
- Increased funding for Neighborhood Health, community-based food hubs
- Increased DASH funding to support collective bargaining and inflationary costs of operations
- Additional support for Rental Pilot Subsidy Program
- $25,000 in one-time funding to support the Capital Area Food Bank
- $25,000 for ongoing small business support
- $120,510 in one-time contingency funding for health initiatives
The budget goes into effect on July 1.
