Real Estate Tax Rate Unchanged In Alexandria Budget Amid Property Values Increases

ALEXANDRIA, VA — The real estate tax rate remained the same in the City of Alexandria budget approved by City Council Wednesday while funding other priorities like employee pay and youth programs.

The $884.3 million operating budget, a 5 percent increase from the last budget, will go into effect at the start of fiscal year 2024 on July 1, 2023. The approval also includes the latest 10-year Capital Improvement Program of $2.4 billion for capital projects, including stormwater management projects, school projects, and maintenance of existing city facilities.

"Our budget is evidence of our commitment to the needs of our community," Alexandria Mayor Justin Wilson said in a statement. "I’m proud of this transparent process and the level of engagement we received from our residents. I also want to applaud the diligent and exemplary work of our City employees, particularly our Office of Management and Budget."

The real estate tax rate remains $1.11 per $100 of assessed value. The rate hasn't increased for seven consecutive years. However, property owners whose property assessment values increased will see higher tax bills. The average single-family homeowner would see a $490 increase in their real estate tax bill under the same rate, while condo owners would have an average $101 increase., according to the mayor's newsletter.

The city's stormwater utility fee will increase as the city continues to accelerate stormwater capacity projects and continue Chesapeake Bay water quality mandates. The stormwater utility rate for a small single-family home would increase from $294 to $308.70. According to the mayor's newsletter, the proposed annual fee would be $86.44 for condos, $129.65 for townhomes, $308.70 for small single-family homes and $515.53 for large single-family homes.

The personal property tax rate on vehicles remains the same at $5.33 per $100 of vehicle’s value. However, a 90 percent assessment ratio for vehicle values was approved to account for vehicle values increasing due to pandemic-related supply issues. For the 2023 tax year, vehicles will be assessed at 90 percent of value, which means a vehicle's actual market value would be discounted by 10 percent for tax bills.

A significant part of the budget goes to Alexandria City Public Schools. The budget provides $258.7 million in operating funds for ACPS, a $9.9 million, or 4 percent, increase. The use of operating funds is up to the Alexandria City School Board, which approved an advertised budget in February and will adopt a final budget after the city's process.

On the personnel side, the budget funds pay increases through the collective bargaining agreements reached between the city and bargaining representatives for the Alexandria Fire Department and Alexandria Police Department. For general and sheriff's office employees, a 2.0 percent increase to pay scales and continued funding for annual merit increases were provided to promote competitiveness in the regional job market.

Other budget priorities include investments in road renaming efforts, staffing in the Commonwealth Attorney's office for the police department's body camera program, a health equity program manager position focusing on chronic illnesses, expanded staffing for early childhood programs, expansion of the city’s Gang Intervention Prevention Education, an urban forester position to support tree maintenance, and increased funding for the Office of Climate Action and the Community Policing Review Board.

"This adopted budget invests in helping our residents and businesses become more prosperous, safer, more engaged while investing in the infrastructure of our City, and investing in our future with climate action, education, housing and our youth," City Manager James Parajon said in a statement.

The 10-year capital plan provides $51.3 million for Alexandria City Public Schools projects, including cost increases for the George Mason Elementary School project. Other new funding in the capital budget includes $16.5 million for synthetic turf conversation and reconstruction of natural turf at Eugene Simpson Stadium Park fields, $16.7 million for the city's contribution to Metro's capital program, $11.5 million for design of City Hall renovations, $5.2 million for street reconstruction and resurfacing of 50 to 55 lane miles in fiscal year 2024, $2.7 million for bridge repairs, $24.6 million for continued work on the Beauregard/ West End Transit Corridor, and $4.8 million for the DASH Bus transition to electric buses.

Final changes to the city manager's proposed budget were decided during a City Council in an April 25 add/delete session. Some of the larger budget amendments include $490,000 for speed monitoring devices in five more school crossing zones, $250,000 for a housing voucher program study, $120,000 to improve DASH Bus's 33 line service on Sundays, a $170,000 increase for eviction prevention, over $214,000 for a youth summer employment program, $147,208 to keep an economic recovery manager at the Alexandria Economic Development Partnership, and $110,000 in contingent funds for an immigrant affairs and refugee resettlement coordinator.

One notable delete from the budget was a $657,629 budget decrease for the Northern Virginia Juvenile Detention Center, a facility shared by Alexandria, Arlington County and City of Falls Church. City Council instead seeks to put the funds into contingent reserves and directed the city manager to return with proposals on "optimizing" capacity, looking at available capacity for alternative uses and looking into new regional partnerships for the use of the facility and staffing.

Some of the smaller budget amendments are $70,000 for maintaining security services at libraries, $50,000 for child care services at city meetings, $79,250 for expedited bed finding for people experiencing a mental health crisis, $78,000 for increased funding for Visit Alexandria advertising and $20,000 in contingent funds to explore an incentive program for private surveillance cameras.

City Council members praised the city manager and city staff for maintaining funding for city programs without raising the tax rate.

"I think it's a fiscally responsible budget. We have stretched the dollar and been able to keep our tax rate level," said Vice Mayor Amy Jackson. "Close to one-third of our budget is dedicated to our schools. We continue to focus on being tough on crime, affordable housing goals, assisting with our businesses' needs and supporting our youth and families — their basic needs are being met and our mental health resources, to name just a few."

Councilember John Taylor Chapman acknowledged the impact of assessments on residents' tax bills.

"While we do keep the tax rate flat, we do understand that due to the nature of assessments, most folks are going to be paying a little bit more, and we're well aware of that and have put that money to good use," said Chapman.

Councilmember Canek Aguirre noted city staffing levels are still similar to over a decade ago. Some compensation studies are underway by the city, including for library staff.

"We're at 2,765 employees currently for the city, which is just about 100 over the 2,660 from 2009," said Aguirre. "But we've also increased our population here in the city by over 20,000 people, so when you're saying doing more with less we at least appear to understand that, and we want to make sure that the city residents understand that as well."

Councilmember Alyia Gaskins said area like employee pay, youth and families, COVID-19 recovery and housing opportunities aren't just City Council priorities. They're also priorities Gaskins said City Council has heard from the community.

"Through our historic collective bargaining agreements...I believe that we are saying to our staff in our fire and our police departments, that you matter to us, and we're saying to our residents that we are committed to recruiting and retaining the best talent to keep you safe," said Gaskins. "Through fully funding the operating budget for our schools, and increasing investments in our Summer Youth Employment Program, as well as finding ways to waive summer fees for our lowest income residents at our rec centers, we are saying to our young people that you matter to us, and we are committed to doing all we can to help you thrive."

Councilmember Kirk McPike noted how the budget addresses safety, as crime has been a recent concern among residents.

"Those in our city who are worried about the recent rise in certain types of crime...take heart that we hear and share your concerns," said McPike. "We're putting financial resources into ensuring that our police department has the officers and equipment it needs to address this challenge. We are funding the expansion of youth employment programs and out-of-school time activities to help keep our young people on a path to a better future and away from those who might lure them towards criminal activity."

Final budget documents are expected to be posted on the city's website in the coming weeks. See the city manager's budget proposal here and the add/delete changes City Council made to the budget.