FY 2027 Budget
The FY 2027 Budget is the City of Fairfax's annual budget for the fiscal year beginning July 1, 2026. 5 separate matters touch this plan or program; each has its own status.
The FY2027–FY2031 Capital Improvement Program (CIP) is a five-year municipal capital investment plan that was developed through an extended review process spanning late 2025 into 2026 before final adoption. The process began with a staff briefing to the Planning Commission on October 27, 2025, followed by a formal presentation from Acting City Manager Melanie Zipp and CFO Juan Carlos Martinez at the November 10, 2025 Planning Commission work session.
- Consideration and appropriation of the FY 2027 Budget, FY 2027 Schedule of Rates and Levies, FY 2027–2031 Capital Improvement Program, and establishment of Real Estate and Personal Property Tax Rates
The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
Beacon Landing
Beacon Landing is a 54-unit supportive affordable housing development co-developed by Wesley Housing and Lamb Center, located within the city. The project drew on 23 separate financing sources, including a $700,000 gap financing investment from the city's Housing Trust Fund in February 2023 — a sum that had accumulated over roughly seven years from cash-in-lieu payments made by developers prior to the city's 2020 Affordable Dwelling Unit ordinance.
- Consideration and appropriation of the FY 2027 Budget, FY 2027 Schedule of Rates and Levies, FY 2027–2031 Capital Improvement Program, and establishment of Real Estate and Personal Property Tax Rates
The full FY 2027 Budget, incorporating all sub-fund budgets, the Schedule of Rates and Levies, the FY 2027–2031 CIP, employee compensation adjustments, and the Budget Adjustment Sheet, was adopted unanimously by the City Council.
passedAmend the main budget motion to incorporate all changes in the Budget Adjustment Sheet (Attachment I).✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedSet the real estate tax rate at $1.0725 per $100 of assessed value, personal property and machinery/tools tax rate at $4.13 per $100 of assessed value, and personal property tax rate for qualifying volunteer fire/rescue members at $0.01 per $100 of assessed value, all effective January 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedAdopt the FY 2027 Budget (all sub-funds), FY 2027 Schedule of Rates and Levies, FY 2027–2031 CIP, FY 2027 health benefit contribution rates, 2.0% market rate adjustment for general pay scales (July 1, 2026), 1.0% COLA for general employees (July 1, 2026), 2.0% COLA for public safety employees (July 1, 2026), 3.0% salary adjustment for eligible general scale employees (January 1, 2027), and programmed annual step increase for public safety employees.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ PetersonpassedApprove appropriation resolutions R-26-16 through R-26-24 for the General, Capital, Wastewater, Transit, Stormwater Utility, Cable, Old Town, Transportation Tax, and Debt Service Funds for the fiscal year beginning July 1, 2026.✓ Amos✓ Bates✓ Hall✓ Hardy-Chandler✓ McQuillen✓ Peterson
The Stacy C. Sherwood Community Center at 3740 Blenheim Boulevard is an existing community facility in the City of Fairfax that has been central to a broader health and community center development effort — the Willard-Sherwood Health and Community Center project — undertaken jointly by the City of Fairfax and Fairfax County.
- General Updates
The upcoming FY 2027 budget development was highlighted; the December 2 HHCAB presentation to Mayor and Council may also serve as an opportunity to recommend dedicated revenue sources for the Housing Trust Fund.
Fairfax Presbyterian Church
- General Updates
The upcoming FY 2027 budget development was highlighted; the December 2 HHCAB presentation to Mayor and Council may also serve as an opportunity to recommend dedicated revenue sources for the Housing Trust Fund.
WSHCC
The West Side Human Community Center (WSHCC) is a city parks capital project that progressed through budgetary planning, land use approval, and City Council authorization over approximately one year. Through mid-2025, staff was preparing low, medium, and high cost-recovery scenarios for the facility, with community preference noted for open gym time over heavy rental use.
- New Business – FY27 Budget
Multiple CIP requests presented for FY27, including OTS improvements, parks facelift, NOVA Parks contribution, Van Dyck Master Plan, Sherwood Community Center expansion, security cameras, asphalt/resurfacing, Blenheim Boulevard tunnel lighting, turf field replacement, KJM fields, and Barker House assessment.
- Staff Update
The City Manager presented the proposed FY 2027 budget to Council on February 24, 2026; the presentation noted no new initiatives or service expansions, and the $600,000 requested for ongoing Housing Trust Fund revenue was not included.
Dr. Wright noted significant work on the FY27 budget process is expected throughout the month, including collaboration with the city council. Ms. Hickman expressed she is looking forward to the joint session with the city council the following evening to discuss the budget and stated full support for the city manager's proposed budget presented on February 24th.
- Staff Update
The City Manager presented the FY 2027 Proposed Budget to Council on February 24, 2026; the budget included no new initiatives or service expansions, and the requested $600,000 for ongoing revenue to the Housing Trust Fund was not included.
- Mar 10, 2026City Council · item 7bPublic Hearing – Proposed FY27 Budget
A public hearing on the proposed FY27 budget was held with public comment received; no Council action was taken at this meeting.
- Mar 24, 2026City Council · item 7bPublic hearing on the proposed FY27 budget
A public hearing was held on the proposed FY27 budget. Several members of the public spoke, including comments on funding a Climate and Energy Manager position and police compensation concerns. No Council action was taken.
- Staff Report
The City Manager presented the proposed FY 2027 budget to Council on February 24, 2026; no new initiatives or service expansions were included, and the $600,000 requested for ongoing Housing Trust Fund revenue was not included.
- Apr 7, 2026City Council · item 1dDiscussion on the proposed FY 2027 budget, General Fund Questions and Discussion
Council discussed General Fund questions, directed staff to review Budget Memos #1, 5, 6, and 8, and reached consensus on next steps for the BPOL tax and Transient Occupancy Tax introductions.
- Public hearing on the proposed FY27 budget
Public hearing held on the proposed FY27 budget. Public comments included support for a full-time Climate and Energy Manager position and concerns about maintaining business competitiveness regarding meals tax, transient occupancy tax, and BPOL changes. Budget adoption is scheduled for May 5, 2026.
- Discussion on the proposed FY 2027 budget and draft changes
Council reached consensus on Scenario 3.A.A. for the FY2027 budget, setting the real estate tax rate at $1.0725, BPOL professional services rate at $0.45, BPOL other services rate at $0.30, and TOT at 10.5%; formal adoption scheduled for May 5, 2026.
- Sep 8, 2026City Council · item 6Consent Agenda
A resolution for reappropriation of general/operating, capital, and enterprise funds carryover to FY 2027 (appropriated in FY 2026 and unspent as of June 30, 2026) was approved unanimously as part of the consent agenda.
passedApproval of the full consent agenda.
In full
Budget development began in fall 2025 with Parks and Recreation Advisory Board CIP requests (September 2025) and ran through public hearings in March–April 2026. City Manager Daniel Alexander presented the proposed budget to Council on February 24, 2026; it included no new initiatives or service expansions, and notably excluded the $600,000 in ongoing revenue requested for the Housing Trust Fund. Following multiple public hearings (March 10, March 24, and April 14, 2026) and a work session on April 7, Council reached consensus on April 28, 2026 on Scenario 3.A.A., setting the real estate tax rate at $1.0725/$100, BPOL (Professional) at $0.45, BPOL (Services) at $0.30, and TOT at 10.5%.
The full FY 2027 Budget—including all sub-fund budgets, the FY 2027–2031 Capital Improvement Program, the Schedule of Rates and Levies, employee compensation adjustments, and appropriation resolutions R-26-16 through R-26-24—was adopted unanimously (6-0) at a Special Meeting on May 5, 2026. A subsequent consent agenda item in September 2026 approved reappropriation of unspent FY 2026 carryover funds into FY 2027.