FY27 Budget
in progressSummary
The FY27 Budget for the City of Fairfax, Virginia, is the city's proposed operating and capital budget for fiscal year 2027. The budget process included multiple public hearings and work sessions beginning in March 2026. Key topics raised during public comment included police compensation, a proposed real estate tax rate increase, a Green Building Policy, funding for a full-time Climate and Energy Manager position, and concerns about the impact of changes to the meals tax, transient occupancy tax, and BPOL on business competitiveness. The budget incorporates several significant financial elements: a proposed increase in the meals tax from 4% to 4.5% (effective July 1, 2026), debt issuance in tranches over seven years for school capital projects (totaling up to $220 million), bond financing for capital improvement projects including the Willard Sherwood Community Center through the city's economic development authority, and VRA revenue bond financing for sewer capital projects. Staff identified approximately $1.7 million in savings within the FY27 budget, and an anticipated $2.7 million in additional FY26 revenues was expected to be directed to fund balance to help bridge the FY27 gap. Budget adoption took place at the special meeting of May 5, 2026, with appropriation resolutions for all major funds considered as agenda item 3G. Subsequent bond and financing actions tied to the adopted budget were still being processed as of May 12, 2026.
Open questions & options on the table
- Completion of bond issuance through the Virginia Resource Authority (VRA) summer 2026 pooled financing program for sewer capital projects, anticipated as of May 12, 2026.
- Final outcome and implementation of the meals tax increase ordinance (adopted at May 5 meeting, effective July 1, 2026) pending any further action.
- Whether a full-time Climate and Energy Manager position was ultimately funded in the adopted budget.
- Ongoing debt issuance in tranches over seven years for school capital projects as planned in the FY27 budget.
Recent updates
[8a] 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.
[7b] 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.
What members have said
At the April 14 public hearing, the Mayor closed the hearing and announced that budget adoption would occur on May 5, 2026 at 7:00 p.m. At the May 5 special meeting, the Mayor called the meeting to order and noted it would include action items only, with no general public comment.
At the April 14 meeting, Peterson confirmed with staff that a prior session had indicated an unexpected increase in FY26 revenues of $2.7 million, and acknowledged that those funds were anticipated to go to fund balance to bridge the FY27 gap.
Positions as recorded in meeting minutes; votes without recorded comment aren’t summarized.
Full history
- Mar 10, 2026City Council · item 7b
[7b] 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 7b
[7b] 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.
[8a] 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.