Fairfax City Council adopts FY 2026 budget, sets real‑estate tax rate after final‑hour debate

Fairfax City Council on May 6 adopted the fiscal year 2026 budget and set corresponding tax and fee rates after a multi-hour meeting that included public comment, staff presentations and several tied amendment votes.

The council voted unanimously to set the real‑estate tax rate at $1.055 per $100 of assessed value effective Jan. 1, 2025 (a 2.5¢ increase), and to adopt the FY 2026 budget, the FY 2026–2030 capital improvement program and related appropriation resolutions. The package includes a 2% merit increase for eligible general‑scale employees effective Jan. 1, 2026, and step increases for public‑safety employees shifted onto a step system.

Why this matters: the budget funds city services, capital projects and utility operations. Council approved targeted revenue actions intended to support transportation and utility programs while reserving the ability to amend the budget later if conditions change.

CFO J.C. Martinez told the council that a separate commercial and industrial (C&I) real‑estate tax classification would be readopted and set at 12.5¢ per $100 of assessed value, with revenue restricted for transportation purposes. On utilities, Martinez said a 6% wastewater rate increase would raise wastewater revenues by about $600,000 and that a typical residential…