News

City Manager unveils $977 million budget proposal without tax increase

By James Cullum
Alexandria City Manager Jim Parajon at the George Washington Birthday Parade in Old Town, Feb. 19, 2024 (staff photo by James Cullum)

Alexandria City Manager Jim Parajon unveiled his proposed $977.3 million Fiscal Year 2027 budget last night (Tuesday).

While the budget is a 2.2% increase from the current FY 2026 budget, Parajon’s proposal keeps the real estate tax rate of $1.135 per $100 of assessed value, and does not change the city’s refuse rate. He was able to achieve the feat through $9 million “in efficiency reductions, cost cutting savings, and vacant position reductions to balance the budget.”

The budget provides a total of $336.9 million for Alexandria City Public Schools, including $286.6 million in operating funds — a 1.5% increase over the current budget.  This also includes $25 million in ACPS capital funding.

The proposal fully funds the third year of the city’s labor and trades collective bargaining agreement, as well as the first year of its new administrative and technical, fire, and police collective bargaining agreements. Staff who are ineligible to participate in collective bargaining are given a step increase and 1.5% pay scale adjustment.

“Over the last few years, our budgets have prioritized our quality workforce,” Parajon told City Council. “That is the engine by which the community receives essential services. It needs to be successful. At the same time, we have consistently made different issues to reduce city operating costs, reimagine the delivery of city services, and delay or not add workforce in some important areas to facilitate balancing the budget, counter rising costs, and avoid placing greater burden on our taxpayers.”

Under the proposal, residents could expect some fee increases. The budget would increase the city’s stormwater utility fee rates from $340.30 to $357.40, resulting in a roughly $26 increase to tax bills, Parajon said. Additionally, parking meter rates are proposed to rise from $1.75 to $2.50 per hour.

Alexandria City Manager Jim Parajon’s proposed FY2027 budget (via City of Alexandria)

Capital improvements

Parajon proposed a 10-year, $2.01 billion Capital Improvement Program (CIP), a $64.7 million decrease over last year’s 10-Year CIP. That budget includes:

  • $193.6 million for ACPS capital projects
  • $782 million to fund the City’s Capital Facility Maintenance Programs, state of good repairs programs, and other major renovations projects, including City Hall
  • $230.1 million for investments in the City’s stormwater management systems, including improvements to mitigate flooding during major rain events
  • $177.3 million and state and federal grant sources identified to support transportation and transit projects
  • $192.6 million to support WMATA capital improvements
  • $67.2 million over the 10-year plan for street reconstruction and repaving program

The proposed CIP includes five capital projects or programs with a construction contract value estimated to be greater than $35 million. The projects are listed below, and will be “explored further for implementation of PLAs (project labor agreements),” according to the city.

Projects costing more than $35 million in the city’s 10-year Capital Improvement Program (via City of Alexandria)

The FY 2027 capital budget also saw a decrease. The proposed $238.7 million is a $20.4 million decrease from the previously approved CIP and includes the $25 million for ACPS. Highlights from the proposed capital budget are below.

  • $22.3 million for stormwater management projects; including $7.1 million for capacity improvements at Commonwealth Avenue, E. Glebe Road, and Ashby Street
  • $22.2 million to purchase wastewater capacity at AlexRenew
  • $15.8 million for the City’s contribution to WMATA’s Capital Improvement Program
  • $12 million for the renovation of City Hall, Market Square Plaza, and Parking Garage
  • $11.6 million for investments in affordable housing
  • $9.3 million to support DASH Bus Fleet Replacement/ state of good repair rolling stock replacement
  • $9.3 million to support Old Town Pool Renovation project
  • $5.6 million for street reconstruction and resurfacing, which will support the resurfacing of approximately 50-55 lane miles in FY 2027
  • $5 million for capital maintenance of parks, playgrounds, recreation centers, and other public spaces
  • $2 million for improvements at John Ewald Park

Next steps

City Council kept questions at a minimum during and after Parajon’s presentation, and more than a dozen budget-related meetings are planned over the coming months. Council is expected to approve its final budget on April 29.

“This is only the beginning,” said Mayor Alyia Gaskins. “We’re not asking a lot of questions tonight, because we break down every piece of this into a weekly update where we go department by department.”

In the meantime, City Council has an April 9 deadline to submit proposed additions and deletions to the budget. There will be a public hearing on those add/deletes on Saturday, April 18, as well as a public hearing on the tax rate that same day. Residents can also comment on the proposed budget on the city website.

Below is the city’s calendar for FY27 budget public hearings and work sessions.

About the Author

  • Reporter James Cullum has spent nearly 20 years covering Northern Virginia. He began working with ALXnow in 2020, and has covered every story under the sun for the publication, from investigative stories to features and photo galleries. His work includes coverage of national and international situations, as well as from the White House, Capitol, Pentagon, Supreme Court and State Department. He's covered protests and riots throughout the U.S. (including the Jan. 6 riot at the U.S. Capitol), in addition to earthquake-ridden Haiti, Western Sahara in North Africa and war-torn South Sudan. He has photographed presidents and other world leaders, celebrities and famous musicians, and excels under pressure.