05/07/2026
Tuesday night we passed the FY 2027 Budget. You may have heard my comments, but I have shared them, below.
All items on the budget passed unanimously, with the exception of the meals tax increase from 4% to 4.5%. Both MC Rachel McQuillen - Fairfax City Council and I voted against this.
CM Tom Peterson prepared this great illustration.
I'd love your feedback, and I'm happy to discuss any items offline, but I will not be directly responding to any comments posted, whether positive or negative.
Tonight, we’ll adopt a City of Fairfax budget that reflects months of careful work, collaboration, and tough choices. The City Manager proposed a rate of $1.08, and the advertised rate was $1.095—but through continued effort, we’re bringing that down to $1.0725. That matters. It shows we listened, pushed for efficiencies, and stayed focused on balancing community needs with affordability. For the average homeowner in the city, this means a $462.50 increase - $335 in natural growth assessments and $127.50 attributable to the tax rate increase.
This budget makes important investments in our people. It includes a 2.0% market rate adjustment, a 1.0% COLA for general employees along with a 2.0% COLA for our public safety personnel beginning in July. It also provides a 3.0% salary adjustment for eligible employees in January and continues step increases for public safety staff. We’re also increasing Advanced Life Support pay for eligible fire personnel - recognizing the critical work they do every day to keep our community safe.
At the same time, we’re making long-overdue updates to how we generate revenue. This includes adjustments to the Business, Professional, and Occupational License tax, which hasn’t been updated in over 30 years. We’re also adding one half-percent to the meals tax, and increasing the transient occupancy tax from 4% to 10.5%. Both taxes are also paid by non-residents who use and benefit from our city. While I do not support this increase in our meals tax and wish we had found an alternative means, I do understand it is needed to support a balanced budget.
Our school tuition with Fairfax County Public Schools continues to be one of the biggest challenges in our budget. From FY 2023 to the FY 2026 estimate, costs have increased by $17.4 million - a 31.5% jump, equivalent to about 19.7 cents on the real estate tax rate. Looking ahead, the FY 2027 estimate is $76.4 million, bringing that total increase to $21.1 million since FY 2023, or 38.2% - roughly 23.9 cents on the tax rate. These are real costs that we are required to pay, with limited input or oversight. While we continue to look for efficiencies in other areas of the budget, this remains a significant and ongoing driver, and our investment in our students is not optional.
This budget allows us to continue moving forward with school renovations, while I remain hopeful that an additional 1% sales tax option will advance in Richmond and give voters a chance to weigh in on this in November. The budget also restores funding to the Fairfax Renaissance Housing Program, provides a one-time grant to support Beacon Landing, and includes an important investment in protecting our 100 acres of wooded forest.
I also want to thank our staff for their tireless work throughout this process. Developing a budget of this scale and complexity takes an enormous amount of time, expertise, and dedication. I’m especially grateful to our City Manager, Chief Financial Officer, Budget Director, and the entire budget team, as well as staff across all departments, who worked diligently to provide the data, analysis, and transparency needed to help us make informed decisions.
Is it perfect? No. But it reflects real progress. It’s a balanced, thoughtful plan that supports our workforce, invests in our priorities, and respects the financial pressures our residents are facing. And I’m very proud of the work that got us here.
