2-Cent Real Estate Tax Reduction In Alexandria Approved Budget

ALEXANDRIA, VA — On Wednesday, Alexandria City Council approved the fiscal year 2022 budget with a two-cent reduction to the real estate tax rate.

The $770.7 million approved budget begins a process of addressing what the city scaled back during the COVID-19 pandemic while maintaining most city programs and services at existing levels. The budget is a 2.3 percent increase over the $753.3 million fiscal year 2021 budget and fully funds the operating and capital budget requests of the Alexandria School Board.

The real estate tax rate will decrease from $1.13 per $100 of assessed value to $1.11 per $100 of assessed value. This is the city's first rate reduction in 15 years, intended to minimize impacts of increasing residential property assessments. The residential tax base overall increased by 6.02 percent in 2021, representing the largest increase in the residential category since 2006. Meanwhile, the commercial tax base declined by 1.96 percent, a change from the 2.8 percent increase in 2020. Assessment changes may vary by individual property.

As part of the budget, DASH bus system fares will be eliminated on Sept. 5 to address low ridership and increase transportation access through a $1,470,000 increase in the general fund transfer to DASH. City Council's final add/delete session also resulted in a $142,000 increase in the transfer to the Alexandria Library to fund eliminating late fines for patrons.

The budget also temporarily reallocated $789,909 from the police department budget for school resource officers at Alexandria City Public Schools. The change received support from Vice Mayor Elizabeth Bennett-Parker and Councilmembers Canek Aguirre, John Chapman, and Mo Seifeldein during the add/delete session.

City staff were directed to bring back a proposal to City Council with recommendations to fund mental health resources for school-age children, the Teen Wellness Center, an additional Behavioral Health Specialist for the Alexandria Crisis Intervention and Co-responding Program pilot program, or other ideas identified by staff. The proposal will be presented before City Council goes on a summer recess.

The city's projected revenue increase also proved a one-time 1 percent base salary bonus for City employees and state employees, including Alexandria Health Department staff. Merit pay increases had been frozen in the fiscal year 2021 budget.

The budget will also increase the residential refuse collection fee from $460.00 to $484.22 to fund new vehicles needed to convert yard waste collection and changing recycling from a contracted service to a city operation.

A doubling of the stormwater utility fee was previously approved by City Council to factor into this year's budget cycle. As noted in Mayor Justin Wilson's May newsletter, the new fee will be $78.40 for condos, $117.60 for townhouses, $280 for small single-family homes and $467.60 for large single-family homes. The fee increase had been approved to accelerate stormwater capacity projects as well as continue Chesapeake Bay cleanup mandates.

The approved Capital Improvement Program includes reallocation of $3.2 million to accelerate the Joseph Hensley Park renovation project and a $1 million one-time increase in affordable housing funded by revenue re-estimates. There are $293 million of capital investments planned in fiscal year 2022 for schools, transportation, sewers, stormwater management, public buildings and facilities, and information technology.

The fiscal year 2022 budget takes effect on July 1, 2021 and ends on June 30, 2022.