Alexandria city manager to kick off FY 2027 budget season, discuss property assessments Tuesday

Public hearings and work sessions run through April; council also to make contested housing authority appointments

The Alexandria City Council will convene Tuesday evening for its regular legislative meeting, with a packed agenda headlined by City Manager James Parajon’s presentation of the proposed fiscal year 2027 budget and new calendar year 2026 real property assessments.

The meeting will be held at City Council Chambers at the Del Pepper Community Resource Center, 4850 Mark Center Drive, beginning at 7 p.m. An executive session is scheduled for 5:30 p.m. to discuss a personnel matter.

Budget Presentation

Parajon’s FY 2027 budget proposal will cover city and school operations and include the proposed Capital Improvement Program for FY 2027 through FY 2036, along with tax rate recommendations. Tuesday’s presentation launches a two-month cycle of public hearings and work sessions before the council adopts a final spending plan April 29, with the new fiscal year beginning July 1.

The presentation comes one day after the Alexandria City School Board unanimously adopted a $408.2 million FY 2027 budget that requests a 3.5% increase in city appropriations — or $9.8 million — well above the 1.5% guidance, or $4.2 million, that Parajon provided to the division. The school budget preserves Latin and Chinese language programs and Afghan family liaison positions that had been targeted for elimination amid a $15.1 million shortfall, and shifts a portion of healthcare premium costs to employees to help fund the district’s first collectively bargained agreements.

Board Chair Michelle Rief warned after Thursday’s vote that if the full 3.5% request is not funded, the division will face additional position cuts, larger class sizes and difficulty retaining staff to neighboring jurisdictions. The gap between city guidance and the school board’s request is expected to be a central tension in the weeks ahead. A joint ACPS-City Council work session is scheduled for March 4.

The budget arrives against a mixed economic backdrop. Office vacancy has dropped to 18.9 percent — bucking regional trends — but unemployment has climbed to 3.8 percent amid federal job cuts, according to a report presented to the council earlier this month. Council members have raised concerns about retail gaps in the West End and the need to retain existing businesses.

Parajon will also present the budget to the public on Thursday, Feb. 26, from 7 to 9 p.m. at the Charles Houston Recreation Center. Both presentations will be streamed at alexandriava.gov/Dockets.

Public hearings are scheduled for March 9, March 14 and April 18. The council will hold eight work sessions running from Feb. 25 through late April covering capital and revenue projections, Alexandria City Public Schools, public safety, livability and sustainability, health and equity, and government operations.

Residents can submit questions through the city’s online engagement portal at alexandriava.gov.

Property Assessments

Council will also receive a report on CY 2026 real property assessments, which set the taxable value of Alexandria’s residential and commercial properties. The city’s overall real property tax base grew 3.41% year-over-year, rising $1.70 billion from $49.7 billion in 2025 to $51.4 billion in 2026, according to a memo from Finance Director Kevin Greenlief.

Residential property drove the bulk of the increase, accounting for 82% of the total land book value gain, according to the staff presentation. A late-year surge in sales volume and prices — particularly in Old Town — pushed the average assessed value of a single-family home up 4.44%, from $1,001,336 to $1,045,750, crossing the $1 million threshold for the first time. The average condominium value climbed 2.81%, from $447,612 to $460,185.

The commercial tax base showed its first positive increase since CY 2023, rising 1.91% after declining 0.88% the prior year. The rebound was uneven: shopping centers led all categories with a 14.44% jump, followed by hotels at 9.10% and general commercial at 6.67%. Office buildings continued to struggle, falling 3.40%.

New construction added $456.4 million to the tax base — 25% more than last year — with residential projects, mostly new condominiums, accounting for roughly two-thirds of that growth. Vacant commercial land values surged largely due to mixed-use development rezonings in the Potomac Yard area. Major projects under construction across the city include phases of the 5.6-million-square-foot WestEnd Alexandria development at the former Landmark Mall site, hundreds of new multifamily units in Old Town North, and new affordable housing in Del Ray.

Assessment notices will be mailed to property owners Feb. 25. Residents have until March 16 to request a review with the Real Estate Division and until June 1 to file an appeal with the Board of Equalization. The tax rate applicable to the new assessments is scheduled to be set by the council April 29 — the same day as budget adoption.

Housing Authority Appointments

Three citizen members will be appointed to the Alexandria Redevelopment and Housing Authority for four-year terms in what the docket lists as a contested appointment, meaning multiple qualified applicants are competing for the seats. ARHA oversees the city’s public housing stock and has been involved in ongoing redevelopment planning. Mayor Alyia Gaskins and Councilman John Chapman serve on the ARHA Redevelopment Work Group and are expected to give an oral update on Tuesday as well.

Proclamations

The council will recognize Virginia Flood Awareness Week 2026 and declare March as Irish-American Heritage Month in honor of St. Patrick’s Day.

Consent Item

On the consent docket, the council will vote to accept a grant award from the Cities for Financial Empowerment Fund to support the Department of Community and Human Services’ economic mobility programming.

How to Participate

Residents may attend in person or watch via Government Channel 70 or the city’s website livestream. Those wishing to address the council via Zoom must register in advance. Written comments may be submitted to the City Clerk at CouncilComment@alexandriava.gov.

For disability accommodations related to the budget process, contact Katie Bishop at katie.bishop@alexandriava.gov or 703-746-3961. For language interpretation, email LanguageAccess@alexandriava.gov or call 703-746-3960.

The full docket and supporting materials are available at alexandriava.gov/council.