In February, Fairfax City’s Acting City Manager Bryan Foster presented his FY 26 budget proposing a residential real-estate tax hike of 9.5 cents – increasing it from its current $1.03 per $100 assessed valuation to $1.125. But during a March 11 City Council meeting, Council decided to set its advertised tax rate at 2.5 cents higher.

Usually, Fairfax adopts a residential real-estate tax rate at or below what its city manager recommends. But with all the current uncertainty and instability regarding federal funding, City officials determined it would be better to not shortchange the City and, instead, advertise a tax rate of $1.15 per $100 assessed valuation. 

However, it doesn’t mean that this will actually be the tax rate City homeowners will pay in FY 26. It’s simply the maximum tax rate the Council is advertising. Indeed, after a series of upcoming, budget public hearings and work sessions, it could decide to adopt a lower rate.  

Meanwhile, residents already reeling from increases in their residential real-estate assessments are not happy. And during last week’s Council meeting, they made their feelings known.

Longtime resident David Geller said he’s liked the way the City spends its money, noting that, most of the time, “Our taxes would go up a few percent a year. It was mostly due to rising assessments, not the tax rate, which has been very small. But the total amount I’ll end up paying in 2025, if this is approved, would go up 20 percent in one, single year – and I’m just flabbergasted.”

“Until now, nothing like this has ever happened,” he continued. “To think of raising the rate to $1.12 or even – there’s talk about raising it to $1.15 – I just don’t understand. I’m completely against raising the rate.”

“I do think there’s a potential for a recession happening, given what’s going on right now – or, at least, a downturn.”

-- Fairfax City Acting City Manager Bryan Foster 

Linda Hoye has lived here since 1998 and, she said, “When I got my real-estate assessment, I was shocked. It’s increased 40 percent in two years. I love this City and would really like to stay, but I don’t think we’re being encouraged to do so.”

Don Pitchford said that, over the past two years, his property tax has increased by 32 percent. “Many of my neighbors are over 40 percent,” he added. “These are significant increases that place immense financial pressure on families, seniors and retirees – the very people who built this City and have spent their lives here.

“Historically, Fairfax City has had one of the lowest tax rates in Northern Virginia, making our City attractive and affordable. However, now isn’t the time to emulate our neighboring jurisdictions whose property taxes have steadily increased – and whose residents are now experiencing greater financial burdens. Instead, the City should strengthen its central business district with significant commercial development and limit its reliance on expensive, external consultants.”

Havon Abdi, a 14-year City resident, speaking on behalf of her neighbors, said she loves her home and life here. But, she stressed, “We’re all dealing with inflation, but our incomes aren’t going up to support this [tax increase]. We live on a private road. Aside from recycling and trash pickup, we’re independent and maintain our own road.

“We don’t use any other City services, including snow removal. We even cut our own trees when they fall, so I feel we’re actually taking things off your plate. Please reconsider this [increase]. A $1,300 tax bill is untenable. It’s difficult to support, and I feel as if I’m getting pushed out.”

Later, during their work session, Councilmembers asked questions of both Foster and Chief Financial Officer JC Martinez. Before voting on it, they sought more detailed answers to justify advertising a higher tax rate.

Martinez explained the many unknowns Fairfax City is facing. “If we don’t do the George Snyder Trail, we’d have to give back the $3.7 million we’ve received [for it from VDOT],” he said. “And that would reduce our unassigned fund balance in the budget. There are also unknowns with the federal government right now and federal funds. We have some indirect exposure to that through the county and some of our other partners.”

“There’s also the school-tuition contract [with Fairfax County],” he continued. “We won’t know where it’ll come in at [dollarwise] until September-October. And the state’s proposed budget proposes a $1,000 bonus to all teachers in the state. The state doesn’t pay that directly; usually, the localities have to pick up the majority of that tab. And that [expense] wasn’t accounted for in the development of our FY 25 or FY 26 budgets. And if the economy starts pulling back because of higher unemployment or inflation, those are things we’ll have to address.”

Therefore, said Councilmember Stacey Hardy-Chandler, “The $1.15 advertised rate isn’t something we’re committing to – it’s insurance. And if it’s lower, it’s lower. I think, if this were our personal financing, we’d build in that cushion for unknowns. It’s a buffer for things we can’t accurately predict that could unfold.”

Councilmember Tom Peterson then asked how a recession might impact the City. And Marinez replied that it would depend on its severity. “If there’s significant unemployment, particularly in the federal workforce – which is my biggest fear right now, given what’s transpiring – that’s going to impact Northern Virginia tremendously,” he said. “It’ll impact the meals tax, the sales tax, a lot of things, including, potentially, real-estate revenue, if there’s a downturn in that.”

“We’ll be monitoring that to make sure we’re meeting our projections and targets,” added Martinez. “And we’ll advise the city manager, senior leadership and Council of what we’re seeing [in case] we have to do a corrective action as soon as possible. I do think there’s a potential for a recession happening, given what’s going on right now – or, at least, a downturn.”

After further questions from other Councilmembers, asking if more budget cuts could be made to avoid raising the tax rate so much, Foster reiterated what he told them when he first presented his proposed budget in February. 

“This budget doesn’t add anything,” he said. “There are no new positions or programs. It funds all the City services at their current levels.” Basically, he warned, if the City’s revenue drops below what’s needed to maintain these things, “We’re going to be cutting people and programs.” Foster said the City could do that, but the residents probably wouldn’t like the results.

Then Mayor Catherine Read ended the work session and reconvened the regular meeting so Council could vote on what tax rate to formally advertise. Ultimately, by a 4-2 vote – with Peterson and Stacy Hall voting no – the members went with $1.15.   

Later, knowing residents would want more details, on Sunday morning, Councilmember Rachel McQuillen addressed them on the “Fairfax City 411” Facebook page. She explained that all but one of the Councilmembers are new and have only been in office for a couple months.

“In that time, a new president moved into the White House and started making unprecedented policy changes,” she wrote. “Meanwhile, our previous City Manager's departure left us in a lurch, prompting a swift search for an acting replacement. On top of all that, Fairfax County Public Schools hit us with a historic, tuition-bill increase due to the statewide, education-funding shortfall.

“And if that wasn’t enough, property values are up, inflation is doing its best impression of a rollercoaster (2.8 percent as of February) and we have several, critical infrastructure projects on the horizon. 

“With all this in mind, let me be crystal clear: Advertising a higher tax rate wasn’t some secret plot – it was a way to get you engaged. I wanted overwhelming feedback from residents, so we could understand what you want prioritized in the budget.”

McQuillen then urged City residents to join the Councilmembers and City staff at a Budget Town Hall on Wednesday, April 2, from 4-7 p.m., at the Sherwood Center, 3740 Blenheim Blvd. in Fairfax, and tell their leaders what matters most to them in this budget. It’s an open-house format, so attendees may drop in anytime.