City of Fairfax, VA – City Council is moving forward with its Fiscal Year 2027 budget process, with public hearings giving residents a chance to weigh in on taxes, school funding, and city services before final adoption on May 5.
A key public hearing on the proposed budget is scheduled as part of the Council’s spring deliberations, including a formal hearing on the full FY2027 budget and separate hearings on tax rates and fees. These hearings allow residents to comment directly on how the City plans to allocate funding for the fiscal year beginning July 1, 2026.
City officials have introduced a proposed FY2027 budget of approximately $207.5 million, representing about a 4.5% increase over the current year. The proposal is driven largely by rising costs in education, debt service, and employee compensation.
To balance the budget, the City Manager has recommended several tax and fee adjustments, including:
Real estate tax rate of $1.095 per $100 of assessed value based upon an assessment ratio of 100% of fair market value, and a personal property and machinery and tools tax rate of $4.13 per $100 of assessed value based upon an assessment ratio of 100% trade-in value. Current real estate tax rate is $1.055 per $100 of assessed value. The City Manager’s proposal recommends a real estate tax rate of $1.080 per $100 of assessed value.
Also raising the meals tax from 4% to 4.5%; and increasing wastewater rates by 6% and stormwater fees by 5%.
In addition, the proposed increase of gross receipts related to annual license taxes for every person engaged in financial services, real estate services or professional services from $0.40 per $100.00 to $0.48 per $100.00. The state maximum allowed rate is $0.58 per $100.00 of gross receipts. The proposed increase is projected to generate approximately $1,078,908 in additional annual revenue.
These changes are intended to maintain a long-term financial stability budget while continuing to fund core services, according to City Manager Daniel Alexander.
The proposed fiscal year 2027 budget describes the City’s goals, proposed programs, and activities for the fiscal year beginning July 1, 2026. The budget review began when the City Manager presented the proposed FY 2027 budget to the city council on Feb. 24. The City Council will adopt the final budget on May 5.
Residents are encouraged to review the proposed budget at fairfaxva.gov/budget or at engage.fairfaxva.gov/fy2027budget where questions and comments may be submitted. Both sites include answers to questions from City Council members and residents. The City continues to seek public input until the city council adopts the final budget on May 5.
City of Fairfax FY 27 Budget Exchange discussion hosted by City Manager that took place on April 16, 2026. The recording is available on the following City website.
