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 quarterly wastewater bill (about 14,000 gallons per quarter) would increase by roughly $10.53. On stormwater, the council set the billing unit rate at $34.30 (a 6% increase) and staff estimated the change would generate about $3.2 million in revenue while preserving about $130,000 annually in credits returned to residents.

Public input and contested points: during the required public hearing, resident Sabrina DeWald criticized the cumulative effect of city taxes and fees and said "the real estate tax rate for Fairfax City keeps rising and rising with very little return for me as a homeowner," raising concerns about equity, transparency and responsiveness from Public Works. Councilmembers debated delaying final adoption after Fairfax County released budget information earlier the same day; some members said more time was needed to consult constituents and review county actions, while others warned that delay would compress tax‑bill mailing schedules and risk operational disruption.

Council debate also focused on one‑time versus ongoing funding and on unfinished capital and personnel items. Councilmembers exchanged several amendment motions: a proposal to reduce the tax‑rate outcome to a 1.75¢ increase was tied and failed; a separate attempt to defer a roughly $9.0 million Sherwood Community Center CIP appropriation produced a tie and failed; a motion to phase pay‑study implementation 50/50 across two years also produced a tie and failed. After staff and council took multiple roll‑call votes on the budget change document and subsequent amendments, council approved the budget change document 4–3, set the tax rates and then adopted the full FY 2026 package unanimously.

Quotes that capture the discussion include resident Sabrina DeWald: "The real estate tax rate for Fairfax City keeps rising and rising with very little return for me as a homeowner." CFO Martinez summarized the wastewater rationale: "The increased user fees are expected to increase wastewater utility revenues by about almost $600,000," and Director Summers emphasized maintenance needs: "If we delay maintenance and we can no longer line pipes that need to be lined and then we start having to dig them up and replace them, the cost is exponentially higher." Councilmember Hall summed the caution many voiced about long‑term costs: "True financial stewardship means planning for the full life cycle of every investment and also knowing when to say no."

Votes at a glance - Remote participation for Councilmember Amos: approved (unanimous). - Ordinance setting separate C&I real‑estate tax rate at 12.5¢ per $100 (restricted to transportation): approved (unanimous). - Wastewater utility rate increase, 6%: approved (unanimous). - Stormwater utility billing rate set at $34.30 per billing unit (6% increase): approved (unanimous). - Motion to take no action on proposed meals‑tax increase: approved (unanimous). - Budget change document (incorporating the night's adjustments): approved 4–3. - Real‑estate tax rate set at $1.055 per $100 (2.5¢ increase) and related personal property rates: ultimately approved unanimously after further discussion and a short recess. - Final FY 2026 budget adoption and appropriation resolutions: approved (unanimous).

What comes next: staff will implement rates and prepare tax bills in line with state and local timing requirements; several councilmembers signaled continued scrutiny of capital projects (including the Sherwood Community Center and other CIP items), ongoing work on efficiency studies, and potential budget amendments during the fiscal year if priorities or revenues change.

The council adjourned after taking the final votes. The adopted budget is effective July 1, 2025; specific project releases (construction authorizations, bond issuances) will require subsequent council actions as staff returns with final pricing and agreements.