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Fairfax City manager proposes 9.5¢ tax‑rate increase recommendation; council weighs advertising cushion and public town halls
Summary
City Manager Brian Foster presented a proposed FY26 budget that includes a recommended 9.5¢ real‑estate tax increase for council consideration; council debated whether to advertise a slightly higher rate for flexibility, weighed town‑hall style public engagement, and staff outlined options including a one‑time personal‑property timing change that would yield about $6.5M.
City Manager Brian Foster briefed the Fairfax City Council on March 4 about the proposed FY26 general fund budget and the near‑term procedural decision the council must make on the advertised tax rate.
Foster said the manager’s recommended budget proposes a real‑estate tax increase equivalent to 9.5¢ (moving the rate to about $1.125 per $100 assessed value) and explained that state statute requires the council to advertise a tax rate prior to the public hearing; the advertised rate can be higher than the eventual adopted rate but not higher than the advertised amount without restarting the public‑advertising process.
Several council members wanted a cushion to preserve flexibility if citizens surface priorities during public engagement; staff suggested advertising a slightly higher rate (for example $1.15) as a conservative option. Council expressed mixed views: some members preferred the manager’s recommended rate but asked staff to prepare interactive town halls and expanded outreach — in multiple languages and formats — rather than rely solely on traditional public hearings.
Finance staff highlighted a recently funded Budget Stabilization Fund (BSF) — initially capitalized at the end of FY24 — that could be used to offset one‑time tuition pressure, but cautioned the fund would not be a recurring revenue stream. Council also received a presentation on a one‑time accounting timing move: switching personal‑property tax billing from one annual payment to two installments (April and October) would produce a one‑time revenue timing benefit of about $6.5M to FY26 but would not change overall taxes owed to residents; staff warned this is an accounting timing shift and not a structural recurring solution.
Council members asked staff to prepare more detailed line‑item, read‑only views of the full budget model and to assemble three to five operating savings options that could lower the proposed advertised rate. Staff offered one‑on‑one meetings with council members to review the detailed workbook and to surface proposals for operating reductions or alternative revenues (meals tax, charter changes, etc.).
Next steps: council must set an advertised tax rate at the next meeting to stay on the statutory schedule; staff will provide additional analyses, run town‑hall style engagement sessions and return with answers to specific member questions in upcoming work sessions.
