Council Hopes to Avoid Tax Rate Increase

The Alexandria City Council voted Tuesday night to advertise the residential and commercial property tax rates at $1.008 per $100 of assessed value.

If adopted, the tax rate would increase by one cent from the rate approved last May. The personal property tax rate on vehicles and business tangible property tax rates would remain unchanged.

Councilmembers said they’re not aiming to increase the tax rate but said they need some flexibility in light of uncertainties in the budgeting process, including the lack of an adopted state budget and its effect on the city.

Councilman Rob Krupicka also pointed to testimonies from last week’s budget hearing where many city employees spoke of a five-year absence of pay raises. 

“[The rate advertisement] is pretty much a routine practice that we must do each and every year, but I don’t think it should signal a commitment on the part of this council that come budget adoption on May 7 that we will indeed be raising the tax rate,” said Mayor Bill Euille.

Council approved the first reading of the ordinance by a 5-2 vote. Councilmembers Frank Fannon and Alicia Hughes voted against the one-cent maximum increase.

“A tax rate increase is something I am not going to support this year,” said Fannon, citing “slight” tax rate increases in each of the last two years. “I definitely want to keep the rate at the same as before.”

Fannon mentioned looking at the Alexandria City Public Schools funding as a place to potentially balance the budget.

Councilman Paul Smedberg said he “reluctantly” supported the ordinance.

Council will hold a public hearing on the property tax rate on April 14 at 9:30 a.m. at  and plans to adopt a budget for fiscal year 2013 on May 7.

If adopted at the maximum rate, the average residential tax bill would increase by up to $98 when compared to 2011 real estate tax rates, according to a release from the city. Alexandria’s estate tax rates would still be among the lowest in the Northern Virginia.

“I am hopeful we won’t have to go to that number,” Krupicka said. “I think we may not have to go there. But I think there’s enough uncertainty out there… that we have to have flexibility.”