Fairfax City Proposes 4.5% Budget Increase for Schools and Staff

City Manager cites rising education and debt costs, need for competitive pay

Published on Mar. 2, 2026

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The City of Fairfax has proposed a 4.5% increase in its fiscal year 2027 budget, driven by rising education and debt-service costs as well as the desire to retain a competitive pay scale for city employees. The $207.5 million budget proposal includes tax increases on property, meals, stormwater, and wastewater, but no new or expanded programming.

Why it matters

Fairfax City's budget is heavily reliant on residential property taxes, which make up nearly 70% of the city's assessed real estate valuation. The proposed increases aim to address rising education costs charged by Fairfax County Public Schools as well as maintain competitive compensation for city staff, but could put a strain on homeowners.

The details

City Manager Daniel Alexander's proposal calls for raising the property tax rate by 2.5 cents to $1.08 per $100 of assessed valuation, increasing the meals tax from 4% to 4.5%, and raising stormwater fees by 5% and wastewater collection rates by 6%. All city employees would receive a 3% salary adjustment and 1% cost-of-living increase, with additional step increases for public safety staff. Nearly 40% of the city's budget, or $76.4 million, is devoted to paying Fairfax County Public Schools, with per-student costs rising 55% over the past decade.

  • The budget proposal was presented on February 24, 2026.
  • A work session between the city council and school board is scheduled for March 3, 2026.
  • Final budget adoption and tax rate setting is set for May 5, 2026.

The players

Daniel Alexander

The City of Fairfax's city manager, who was recruited last year from Prince William County.

Catherine Read

The mayor of Fairfax City.

Fairfax County Public Schools

The school district that provides educational services to Fairfax City, with per-student costs rising 55% over the past decade.

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What they’re saying

“This is a stability budget, focused on sustaining core operations and meeting commitments. It protects core service delivery.”

— Daniel Alexander, City Manager (ffxnow.com)

“There will be plenty of work sessions and opportunities in the coming months for us here on the dais and the public to address the budget that is presented.”

— Catherine Read, Mayor (ffxnow.com)

What’s next

The next step will be a work session set for Tuesday (March 3) between the city council and school board. Final budget adoption and the setting of tax rates is set for May 5.

The takeaway

Fairfax City's budget proposal highlights the challenges facing municipalities with a heavy reliance on residential property taxes, as rising education and personnel costs strain local budgets. The proposed tax increases aim to maintain core services, but could put additional financial pressure on homeowners.