Fairfax County’s next proposed budget calls for a 4-cent property tax hike to balance the budget. The funding would partially pay for salary and benefits requirements for school employees, and pay for Metro service.
“I recognize that this would be the first real estate rate increase in six years, and it was not a conclusion that I reached easily,” said Fairfax County Executive Bryan Hill. “I am proposing only those adjustments which I feel are essential to maintain the quality workforce and dependable services upon which our residents rely.”
Fairfax County’s supervisors have not raised the tax rate in several years in an effort to offset the impact the pandemic had.
The proposed $5.4 billion budget for 2025 is based on a residential tax rate of $1.135 per $100 of assessed value. Average property tax bills would increase $524 under the proposal.
The county’s underperforming real estate market has contributed to the proposed increase. Higher mortgage rates slowed the residential market. Residential assessments are up an average of 2.86 percent in 2024.
But commercial real estate values declined, the county said. “Non-residential values declined overall for the first time in three years, by 1.24 percent, driven by the fourth straight year of declines in office elevator properties, which represent 26 percent of the non-residential tax base,” according to the county. The county’s office vacancy rate is 17.2 percent.
The biggest chunk of the tax increase would go to schools, which account for 49 percent of the budget. “The requested operating transfer increase from FCPS, $254 million or 10.5 percent over the FY 2024 Budget, is the largest requested increase since 2007 and the largest in terms of dollars in the county’s history,” a county summary said. About $165 million would go to cover pay increases negotiated through collective bargaining agreements, as well as higher enrollment costs.
The Fairfax County Board of Supervisors and the school board will meet Tuesday, February 27, to talk about the budget and tax hike.
After schools, employee compensation accounts is the next category with a large increase in proposed funding. The $148.1 million increase would cover merit, longevity and a 2 percent raise for general employees.
While the final numbers are not in, the county’s contribution to Metro would be $37 million higher. “The county is also waiting for additional information regarding the outcome of negotiations between the contracted Fairfax County Connector operators and one of its employee unions. The budget includes a modest contract rate increase, but the full fiscal impact is pending completion of negotiations,” the summary said.
Hill has proposed spending cuts of $36 million. “These reductions are the result of an extensive agency exercise including the elimination of 84 positions,” the summary said.
Public hearings on the budget are set for April 16–18, with a board vote set for May 7.
Feature image, stock.adobe.com
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