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Alexandria kicking off budget season next month with $18.3 million budget gap

By Vernon Miles
Alexandria’s General Fund revenue sources by percentage (image via City of Alexandria)

It’s Christmas for local government nerds: the annual City of Alexandria budget is almost upon us.

Alexandria said in a release that budget season is set to kick off on Tuesday, Feb. 25 with a presentation to Alexandria’s City Council.

Last year, the Alexandria City Council adopted a budget with a 2.5 cent real estate tax rate increase in an effort to support Alexandria City Public Schools (ACPS).

Patch noted that a preliminary budget forecast from a meeting in November showed a roughly $18.3 million budget gap — with $953.1 million in spending and only $934.8 million in expected revenues.

The budget preview noted an expected $26.7 million increase in expenditures with no new or expanded services, from $13.3 million with support ongoing city operations, $5.5 million to ACPS and $1 million in transit services.

The revenue outlook said consumer spending remains strong but “growth has slowed.”

Sales tax revenue increased by 7% in FY 2023 but only 2% in 2024.

Alexandria has also seen a gradual uptick in the office vacancy rate, from 14.6% in 2022 to 15.5% in 2024 — though with any luck the Victory Center redevelopment could put a dent in that sometime soon.

The City release said the first public presentation of the budget after the City Council meeting will be on Feb. 27 at 7 p.m. with a location still to be determined. The event will offer residents a chance to give their input on the budget.

Unable to attend a Public Presentation, but still want to participate in the process? See additional opportunities below:

Public Hearings 

To provide feedback about the budget, attend one of the public hearings:

Attend a Budget Work Session 

You are invited to FY2026 Budget Council work sessions to hear and learn more about the budget. The Council is holding seven budget work sessions:

During Council budget work sessions, Council members work together to discuss and analyze the proposed budget while gathering information and providing guidance. During these work sessions, no formal actions or votes are made, but a lot of work is done to make those final decisions come together.

For more information about Alexandria’s FY2026 Budget process and events, please visit alexandriava.gov/Budget.

About the Author

  • Vernon Miles is the ALXnow cofounder and editor. He's covered Alexandria since 2014 and has been with Local News Now since 2018. When he's not reporting, he can usually be found playing video games or Dungeons and Dragons with friends.