While such a major change is unlikely to occur this year, Alexandria’s City Council recently considered ideas proposed by the Budget and Fiscal Affairs Advisory Committee (BFAAC) that could dramatically shape budgets in the future.
Amy Friedlander, vice chair of BFAAC, presented budget-related recommendations to the City Council at a work session yesterday (Wednesday), including two that raised eyebrows on the Council.
Alexandria will argue against a rate hike by Virginia American Water, even though the increase will go into effect on May 1.
The average water bill in Alexandria will go up about $94 per year, which the utility says covers infrastructure upgrades cross Virginia, including the replacement of a 3,800-foot-long water main in Alexandria that was installed in the 1950s.
This year’s budget could include a one-time measure meant to keep the vehicle tax from skyrocketing.
In his monthly newsletter. Mayor Justin Wilson outlined a unique set of circumstances that, if left unchecked, could see Alexandrians’ vehicle personal property tax skyrocket.
Alexandria’s City Council set the maximum real estate tax rate at a half-cent higher than the current rate, with officials saying that 2022’s hardships make any higher burden on residents untenable.
The City Council voted unanimously for the real estate tax rate to be set at no higher than $1.115 per $100 of assessed value, a slight increase from the current $1.11. While the eventual real estate tax rate could be lower than $1.115, it won’t be higher. Additionally, the city won’t increase the tax rate on personal property or business-tangible property.
New City Manager James Parajon may be trying to make a good first impression with city residents. His first budget — a continuation of one started under former City Manager Mark Jinks — comes with no new tax rate increase. Even so, with real estate assessments on the upswing, local homeowners can still expect to see taxes go up.
In a meeting today, Parajon joined Budget Director Morgan Routt and other city officials to present the fiscal year 2023 budget to the City Council.
Putting aside some of the drama of his visit, Gov. Glenn Youngkin spoke in Alexandria last week about a topic that even some local Democrats have expressed support for: eliminating the grocery tax.
Virginia has a 2.5% grocery tax that helps to fund public schools and transportation. One percent of that goes to local governments, while the rest goes to the state. This has created a sort of three-faction divide on the tax that doesn’t break evenly along party lines.
An Alexandria couple pleaded guilty to conspiracy in relation to filing false tax claims for their Maryland-based auto body repair shop, and have been ordered to pay $2.2 million in restitution.
Ercin Kalender, 60, and Lizette Kalender, 44, own Butch’s Auto Body in Capital Heights, and were ordered to pay the $2.2 million as part of their plea agreement, according to an announcement from the U.S. Department of Justice.
In a glimpse at financial assessments for 2022, Alexandria Mayor Justin Wilson said on Twitter that declining hotel revenue — and thus taxes paid to the city — will put more of the city’s tax burden on residents.
The decline of tax revenue for the City of Alexandria is just one part of a difficult financial recovery from the pandemic — one exacerbated by the omicron surge earlier this winter. While sales and meals tax have rebounded slightly, the dearth of hotel funding has even led the city to consider investing in a new hotel.
Alexandria is about to embark on a public relations campaign in response to the 5 cent Plastic Bag Tax, which goes into effect next month.
In a meeting on Tuesday, Dec. 14, the City Council will consider the release of $30,000 from contingent reserves to the city’s Department of Transportation and Environmental Services for outreach on the matter.
New data from tax collection over the summer shows a minor rebound for sales and meals in Alexandria, but while it’s a positive sign, Mayor Justin Wilson cautioned that they don’t quite tell the full picture.
In March, local sales tax revenue reached a high of nearly $3 million. Since the start of the year, sales tax revenue has been higher than it was in those respective months the last two years, but the fact that COVID-19 seemed to have a negligible impact on sales last summer indicates that most of that is driven by online sales rather than local business, which Wilson confirmed.
What a busy week in Alexandria.
Our top story this week was on a juvenile who was shot outside the McDonald’s at the Bradlee Shopping Center on Tuesday, Sept. 21. There have also been a number of concerning incidents at Alexandria City Public Schools, including a juvenile who was arrested for trespassing and assault and battery at Alexandria City High School.
