Top Three Priorities of the City of Alexandria 2026 Budget
City Council votes unanimously to adopt the Fiscal Year 2026 Operating Budget of $956.5M
ALEXANDRIA, VA – On April 30, City Council voted unanimously to approve the Fiscal Year 2026 Operating Budget of $956.5 million. The new budget focuses on three priorities:
- Eliminating community disparities by
- Supporting community-based food hub operations
- Allocating funding for early childhood support and intervention projects
- Increasing funding for Neighborhood Health, a Federally Qualified Health Center
- Employee attraction and retention by
- Maintaining the current real estate tax rate of $1.135 per $100 of assessed value
- Maintaining current personal property tax, sanitary sewer, and refuse rates
- Increasing stormwater utility fee rates from $324.10 to $340.30 as scheduled
- Funding an increase of $9.4 million in the ACPS Operating transfer to support the ACPS operating budget including a 1% pay scale adjustment for ACPS staff– including a one-time $1.2 million investment in support services for Alexandria City Public Schools (ACPS) to help improve the physical, social, and emotional well-being of students and families.
- Promoting the economic strength of Alexandria by
- Increasing DASH funding to support collective bargaining and inflationary costs of operations
- Using $6.4 million in efficiency and cost-cutting savings to balance the budget
- Including funds for the FY 2026 – 2035 Capital Improvement Program (CIP), which totals $2.08 billion and focuses on improving existing infrastructure and making strategic new investments
Both Mayor Alyia Gaskins and City Manager James Parajon were pleased with the vote to pass the budget as well as the collaborative effort across the city government departments.
“Together, we asked tough questions, shared priorities, and worked through challenges to ensure this plan moves Alexandria forward.” Gaskins said. “I’m deeply grateful to everyone who contributed to this process—your voices and values helped shape a budget that builds on our progress and invests in the future we’re creating together.”
Parajon added that the focus remains on maintaining high-quality services and delivering the priorities that the community counts on, noting, “I’m proud of the careful, collaborative work across departments to ensure every dollar is aligned with Alexandria’s values and vision.”
City Council member John Chapman added, “With this budget, we have a solid foundation in place to weather the challenges that lie ahead in the next few years. We’re approving this budget at a critical time, supporting our community as they navigate rising costs, job loss, and uncertainty.”
View the budget adoption document HERE. to see how it affects your everyday life, If you prefer communication in another language, free interpretation and translation services are available to you. Please email [email protected] or call 703.746.3960.
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