Alexandria City Council Adopts $979.1 Million FY27 Budget

The Alexandria City Council voted to unanimously adopt the Fiscal Year 2027 (FY27) operating budget of $979.1 million, Wednesday, April 29. The new budget will go into effect July 1, 2026.

"Tonight's adoption is the result of months of work and another record number of residents who showed up to help shape it. The FY27 budget reflects a simple and intentional focus: steady progress on housing, community services, economic development, and the people who keep this city running." said Mayor Alyia Gaskins.

The FY 2027 budget was adopted with no increase to the real estate tax rate for Alexandria residents and businesses.

Key highlights of the FY27 Budget

The approved budget focuses on City Council Budget priorities of eliminating community disparities, employee attraction and retention, and promoting the economic strength of Alexandria. The FY27 Budget:

• Maintains the current real estate tax rate of $1.135 per $100 of assessed value;
• Supports community-based food hub operations;
• Increases funding for the City's Housing Rental Assistance Program;
• Funds strategic small business initiatives;
• Allocates funding for early childhood support and intervention projects;
• Funds an increase of $4.2 million in the ACPS Operating transfer to support the ACPS operating budget, which is the level of funding outlined by City Council's budget guidance to the City Manager;
• Increases DASH funding to increase the frequency of line 32, support collective bargaining, and meet the challenges of inflationary costs of operations;
• Uses $9 million in efficiency and cost-cutting savings to balance the budget;
• Includes funds for the FY 2027 - 2036 Capital Improvement Program (CIP), which totals $2.01 billion and is focused on improving our existing infrastructure and making strategic new investments.

"Each year, the budget process challenges us to make thoughtful, strategic choices, and this year was no exception. The FY27 budget maintains the high-quality services our community counts on while making steady progress on housing, community services, and economic development," said City Manager James Parajon. "I'm proud of the careful, collaborative work across departments to make that happen."

The full adopted FY27 Budget Document will be available on July 1 at alexandriava.gov/Budget. 

Share your feedback on FY27 Budget communications by completing this short survey by Friday, May 8. Your input will help shape next year's budget outreach.