Council advertises fiscal-year 2026 real-estate rate flat at manager's proposed level after 4-3 vote

The Alexandria City Council voted March 11 to advertise a maximum real-property tax rate equal to the city manager's proposed rate, effectively keeping the tax-rate ceiling flat for the FY2026 budget process.

The vote matters because advertising a maximum tax rate establishes the ceiling for public advertisement and shapes the council's budget deliberations later in the spring. Council members said they were weighing residents' current financial stress, uncertainty over federal workforce impacts in Alexandria and the need to preserve flexibility in future budget years.

Finance Director Kendall Taylor briefed the council on the manager's proposed budget: the general fund proposal is approximately $950 million, a 3.2% increase over the prior year; the proposed capital-improvement program totals roughly $205 million less than the prior year. The city manager presented a budget without a recommended tax-rate increase in light of federal-worker uncertainty and signs of a possible economic slowdown, staff said; however, staff also included contingencies for potential grant losses and emergency needs.

Councilman Kirk McPike moved to advertise a maximum real-property tax rate described in the meeting as "$1 and 13.5 cents" (maintaining the manager's proposed flat rate) and to keep the current personal-property rate unchanged. The motion was seconded by Vice Mayor Bagley and carried 4'to'3 after extended council discussion. Council members who opposed the motion said they preferred retaining the option to advertise a modestly higher rate as a planning tool; supporters said keeping the ceiling flat offered stability for residents facing economic uncertainty.

Staff reminded council that revenue re-estimates, add/delete work sessions, and the governor's budget and local economic developments could change the fiscal picture before final appropriation. The council will continue budget deliberations in the coming weeks as part of the FY2026 adoption process.

Ending: Because advertising sets a maximum but does not itself set a final tax rate, staff will continue to provide revenue updates and to produce materials for council add-delete decisions before final readings and adoption.