City Council Adopts Fiscal Year 2027 Budget
Published on May 06, 2026
The total approved FY 2027 budget for all city funds is $299.6 million. Fiscal year 2027 begins July 1, 2026.
On Tuesday, May 5, the Fairfax City Council approved the FY 2027 Budget and FY 2027–2031 Capital Improvement Program (CIP), continuing the city’s focus on maintaining strong public services, investing in community infrastructure, supporting employees, and preserving long-term financial stability.
The total approved FY 2027 budget for all city funds — including General, Capital Projects, Transportation, Stormwater, Wastewater, Transit, and Debt Service Funds — is $299.6 million, representing a 3.2% increase over FY 2026.
The adopted FY 2027 General Fund budget totals $207.9 million, a 4.6% increase from the previous fiscal year. The budget maintains core city services while continuing significant investments in transportation infrastructure, school support, parks and recreation, public safety, community facilities, and long-term capital improvements.
“This budget reflects a collaborative effort by Council to maintain stability while making strategic investments and reallocations that strengthen services, support our workforce, and position the city well for the future,” said City Manager Dan Alexander. “The adopted budget protects core services, advances key community priorities, and does so in a fiscally responsible way.”
Among the most significant investments included in the budget are continued funding for the Willard-Sherwood Health & Community Center project, ongoing school renovation and modernization efforts, transportation and utility infrastructure improvements, and enhancements to public safety and community services.
The budget fully funds the city school tuition contract at $76.4 million, an increase of 7.0%, or approximately $5 million, over the previous year. The budget also includes approximately $23.8 million in transportation infrastructure investments.
The adopted budget prioritizes employee recruitment, retention, and organizational stability through compensation and workforce investments, including cost-of-living adjustments for employees, an additional compensation increase for public safety personnel, enhanced ALS pay for eligible Fire personnel, restored funding for training and professional development, and a citywide classification and compensation study.
The city also strategically reallocated existing vacant positions to better align resources with emerging priorities, including support for energy efficiency initiatives and data-driven community safety analysis, without adding new full-time positions.
To support these investments while limiting the impact on residents, the City Council adopted a real estate tax rate of $1.0725 per $100 of assessed value, below both the advertised rate and the city manager’s proposed rate. The increase represents approximately $127.50 annually attributable to the rate adjustment for the average household.
The budget also includes modest adjustments to several other taxes and fees, including meals, transient occupancy, utility, and business license taxes, helping diversify revenue sources and reduce reliance on the real estate tax base alone.
Stormwater and wastewater rate adjustments will support ongoing regulatory compliance, infrastructure maintenance, and long-term system reliability. The meals tax increase — the city’s first in 22 years — equates to approximately $0.25 on a $50 meal purchase.
Throughout March and April, the City Council held multiple work sessions and public hearings and received community feedback through Engage Fairfax: FY 2027 Community Budget Exchange, a hybrid public engagement event that included live polling and resident input on spending priorities and city services.
Fiscal year 2027 begins July 1, 2026, and continues through June 30, 2027. The adopted FY 2027 budget will be posted by July 1 at: fairfaxva.gov/budget.