By a unanimous vote on May 3, the Alexandria City Council adopted a General Fund Operating Budget. The adopted budget adds investments for City and School infrastructure, implementation of the City’s Vision Zero traffic safety initiative, improvements to the King Street retail corridor, expanded opioid treatment, and enhanced employee recruitment and retention. The adopted budget also includes $4.3 million in operating budget reductions across City departments.
The real estate tax rate for 2018 will remain unchanged from 2017, at $1.13 per $100 of assessed value. This will increase the average homeowner’s tax bill (due to higher assessed values) by 3.3%, $199 per year, or just 55 cents per day -- the lowest dollar increase in six years. The transient lodging tax on customers of hotels and home-sharing properties will increase 25 cents per night.
The adopted budget anticipates a potential 1% increase in the meals tax, with the resulting $4.75 million revenue increase budgeted to fund affordable housing initiatives. The tax rate would increase from the current rate of 4% to the state median of 5%, or an average increase of 16 cents per meal in Alexandria. City Council will hold a public hearing on the proposed meals tax increase on May 12, before determining whether to adopt the increase. The adopted budget reflects no increases in any other tax rates, or to the fee for residents who receive City refuse and recycling collection services.
To learn more about the entire budget process and view all budget documents, visit alexandriava.gov/Budget.