2.5 Cent Increase For FY 2025 Budget 1 Penny More Than Recommended

ARLINGTON, VA — Arlington County Board voted unanimously Tuesday to impose a real tax rate of $1.038 per $100 of assessed value. This is 2.5 cents more than homeowners will pay in calendar year 2023 and 1 cent more than County Manager Mark Schwartz recommended in the Fiscal Year 2025 budget proposal.

With Tuesday's vote, board members established that whatever tax rate they ultimately set when they approve the FY 2025 budget, it will be no higher than $1.038 per $100 of the assessed value. Based on that formula, a property owner with an average home value of $824,700 can expect a $582 increase to their real estate tax bill.

"Throughout the pandemic, the County Board held the tax rate flat to minimize impacts on taxpayers,” Arlington County Board Chair Libby Garvey said, in a release. "Determining that more flexibility is needed to address County and School budget pressures and challenges, the Board advertised an additional 1 cent above the Manager’s 1.5 cent increase recommendation for a total increase of 2.5 cents to the real estate tax from last year’s rate of $1.013 per $100 of assessed value."

During last Saturday's board meeting, Schwartz presented a $1.62 billion budget plan for FY 2025, which was a 4.7 increase over the FY 2024 budget that the board approved last year. His proposal included a recommendation to increase the tax rate by 1.5 cents or $1.028 per $100 of assessed value. That increase would be offset by the elimination of the 1.7 cent stormwater rate.

Schawartz also included cuts of more than $10 million and the elimination of 33 positions in his budget proposal.

Related: $500 Real Estate Tax Hike In Arlington County's FY2025 Budget Proposal

The proposal includes a little over $627 million for county schools, which is a 3 percent increase over the current fiscal year.

"The county's operating total, which increases 5.7 percent, includes the county share of local tax revenue, as well as non-tax revenue, and one-time funding carried over from Fiscal Year 2023," Budget Director Richard Stephenson told board members on Saturday. "The schools increase as a percentage is just the growth in tax revenue."

APS Superintendent Francisco Durán will be presenting his FY 2025 budget proposal during Thursday's school board meeting, which takes place 7-9 p.m., at the Syphax Education Center at 2110 Washington Blvd. The meeting can be viewed on Comcast Cable Channel 70 and Verizon FIOS Channel 41. It will also be live-streamed.

Garvey acknowledged that there was a great deal of uncertainty in this year's budgeting process, but the higher than recommended tax rate the county will advertise for FY 2025 will give board members some flexibility.

“I’m very concerned about our schools and whether the state will do the right thing and provide the level of expected funding—or if the State will leave APS short millions on top of the cuts already made," she said. "Hopefully, the state will come through, and this extra penny will not be needed.”

Between March 5 and April 16, Arlington County Board will be conducting budget work sessions with county departments.

Members of the public will have two chances to provide feedback on the FY 2025 budget proposal. The first public hearing is scheduled for 7 p.m., on April 2 and April 4, which a budget wrap-up session on April 11, from 3-5 p.m. Final budget decisions will be made during the April 16 budget mark-up session, from 3-5 p.m. This will be the last meeting before board members vote to formally adopt the final budget on April 20.

Members of the public who wish to sign-up to speak at a budget public hearing or at the tax rate hearing can do so online.

All work sessions and public hearings are open to the public and will be live-streamed and broadcast on Cable Channel 70 and Verizon FIOS Channel 41.