Approved Alexandria Budget Includes Higher Real Estate Tax Rate

ALEXANDRIA, VA — Alexandria City Council approved the city budget with a real estate tax rate increase to address funding for schools, affordable housing and other city priorities.

The fiscal year 2025 budget totals $926.4 million, a 4.8 percent increase over the last budget and takes effect on July 1, 2024. The real estate tax rate increases from $1.11 to $1.135 per $100 of assessed value. The city government says the average single-family homeowner will see a $483 increase, and the average condominium owner will see a $285 increase.

"As Council balances a budget with scarce resources and practically unlimited demands, resident input is essential," said Alexandria Mayor Justin Wilson in a statement Wednesday. "We had a comprehensive process to reach tonight's adoption. The result is a budget that aligns with our community's values with an eye to the demands of the future."

City Council made the tax rate decision to meet funding needs. A $14.3 million increase for the Alexandria City Public Schools budget was approved and includes $4 million added through the add/delete process. The increase will partly help with teacher pay increases to boost recruitment and retention.

For affordable housing, a one-time addition of $3 million was added for future projects. One cent of the real estate tax rate is already dedicated to affordable housing funding. Another 2.2 cents of the real estate tax rate is reserved for the city's transportation fund.

The city's stormwater utility fee continues to go up as the city advances flood mitigation projects. The latest budget increases the base annual fee for a small single-family house 5 percent from $308.70 to $324.10, Mayor Justin Wilson's newsletter said. For condos, the base fee would increase from $86.44 to $90.75. The townhouse base fee will increase from $129.65 to $136.12. For larger single-family houses, the fee will increase from $515.53 to $541.25.

The budget did not change the $5.33 per $100 of assessed value personal property tax rate on vehicles, $4.75 per $100 of assessed value rate on business personal property and $4.50 per $100 of assessed value on machinery and tools. City Council did increase the late fee penalty from 10 percent to 25 percent for personal property tax payments more than 30 days after the due date.

Ambulance fees also increased. Basic Life Support Transport will increase from $600 to $750, Advanced Life Support Level 1 Transport will increase from $780 to $1,000, Advanced Life Support Transport Level 2 Transport will increase from $900 to $1,200, and ground transport mileage cost would also increase from $12 to $18 per mile.

In addition, City Council set increased fees for rental of waterfront parks, out-of-school-time programs and rental fees for rental of Historic Alexandria facilities. Fees were set for the upcoming Minnie Howard Aquatic Center, which will be part of the renovated Minnie Howard Campus of Alexandria City High School.

The other budget approved was the 2025-2034 $2.401 billion capital improvement budget, which sets a 10-year plan for capital funding projects. The capital budget continues to accelerate stormwater capacity projects and provides funding for school projects, including renovations of George Mason Elementary and Cora Kelly School.

Full approved budget documents will be available at a later time at alexandriava.gov/Budget.