Fairfax City manager presents FY27 ‘stability’ budget, proposes modest tax and fee adjustments

City Manager Dan Alexander on Feb. 24 presented the city manager’s proposed fiscal year 2027 budget for Fairfax City, describing the plan as a stability budget that preserves core services while meeting major commitments to schools, public safety and infrastructure.

“This proposal reflects months of analysis, collaboration with staff, engagement with community, and alignment with council’s strategic priorities,” Alexander said as he introduced the plan. He emphasized that the budget is a financial plan and policy tool rather than a spending mandate.

The FY27 general‑fund proposal totals $207,500,000 and is balanced as required by Virginia law. Major structural drivers cited by Alexander include an estimated $5,000,000 increase in the school tuition contract compared with the FY26 adopted budget, roughly $22 million of planned debt issuance for school renovations, and debt tied to the Willard Sherwood Community Center project. Alexander said the tuition contract is the single largest general‑fund obligation and that rising personnel and inflationary pressures are central to cost growth.

To close the projected gap without reducing service levels, the manager proposed a package of measured adjustments: a 2.5¢ increase in the real‑estate tax rate (raising the city’s rate from $1.0505 to $1.0755 per $100 of assessed value), a half‑percentage‑point increase in the meals tax (from 4.0% to 4.5%), a 6% wastewater rate increase (about $44.65 per average user annually), a 5% stormwater utility increase (about $10.19 per year per average property), and use of $5,000,000 of assigned fund balance.

Alexander described the approach as ‘‘protecting core service delivery’’ and said no new FTEs are proposed and no current programs will be cut. Staff said the FY27 proposal fully funds the school tuition contract at $76,400,000 and preserves capital investment plans including the city’s five‑year CIP.

The presentation laid out next steps in the public engagement process: six budget work sessions and four public hearings over March and April, a key March 10 decision on the maximum real‑estate tax rate to advertise, and adoption in May together with appropriation and rate resolutions.

Alexander closed by thanking the budget team and noting staff will provide more detail in upcoming work sessions and hearings.

What’s next: Council will review the proposal across multiple work sessions and public hearings; a March 10 meeting will include discussion of the meals‑tax proposal and advertising a maximum tax rate.