[Archived] Alexandria City Council Plans to Reduce Real Estate Tax Rate Further

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

For Immediate Release
March 22, 2005
PIO 088-05/bg

Alexandria City Council Plans
To Reduce Real Estate Tax Rate Further

The Alexandria City Council voted tonight (March 22) to advertise an ordinance to establish the real and personal property tax rates for the proposed FY2006 budget. The budget will be the subject of a public hearing on April 4 and the proposed tax rates are subject to public hearing on April 16. Both the budget and the property tax rates are scheduled for adoption by Council on May 2. The Council voted tonight to advertise the proposed real estate tax rate at $.915 per $100 of assessed valuation, which is 4 cents less than the City Manager proposed earlier this month and 8 cents less than the current real estate tax rate. This advertised rate is the highest Council can consider during this budget process, however, Council can consider a lower real estate tax rate.

Mayor William D. Euille noted that the Council has heard from many residents concerned about their rising tax bills and said Council must be “fiduciarily responsive and responsible” when setting a tax rate that will provide substantial tax relief to homeowners as well as ensure the continued quality of public services.

Alexandria City Manager James K. Hartmann on March 8 proposed a $565.7 million All Funds operating budget for Fiscal Year 2006, an 8.2 percent increase. As part of that All Funds budget, he proposed a $471 million General Fund operating budget for Fiscal Year 2006, an increase of 8.7 percent over the FY 2005 General Fund budget.

The City Manager’s proposed 4-cent tax reduction to 95.5 cents was the largest tax rate reduction proposed by the City Manager in 15 years. The 4-cent proposed reduction (and now the 8-cent proposed reduction) if approved, would be the lowest tax rate in Alexandria in more than 50 years.

More information about the proposed budget and a schedule of work sessions and public hearings is available online at alexandriava.gov or by calling 703.838.4780.