Campaign Email #6 - Taxes

One important note on this topic before I launch into my thoughts: in the City of Fairfax, the mayor does not get to vote on the tax rate, or any appropriations greater than $500 - not even in the case of a tie. Financial decision-making rests entirely with the City Councilmembers.

With that out of the way - I'm hearing loud and clear on my door-knocking adventures that taxes are a real concern amongst City residents, so I want to be very forthright about where I stand.

First: I've said before and I still believe that our property tax rate is more than reasonable given the level of services it affords us here in the City. We pay a lower rate than Fairfax County yet receive more services, with access to the same public school services (public education being the #1 driver of local tax rates nationwide). Our police response rate is faster and more comprehensive than the County's; we have enviable trash and recycling services; and 99% of City residents live within half a mile of at least one City park or recreation area. That said, if it is the will of the public that our tax rate needs to freeze, or even lower, it is exactly these services that we will need to consider for reduction or cancellation. There is absolutely value to having these conversations, and to being able to publicly communicate either the cost of service preservation or the operational impact of budget cuts, but they have to be approached in good faith and with good data - not just to justify a single-year tax rate that ultimately harms the sustainability of public services going forward.

This election cycle, City of Fairfax voters will have the opportunity to decide whether to authorize City Council to enact an up-to-1% retail sales tax whose revenue would be earmarked exclusively for school and transportation capital improvement projects. You can read more about this ballot item here. I am personally in favor of this proposal because the potential revenue generated will cover many of the projects proposed under the school capital improvement bond passed in 2024, thereby reducing their impact on the City's out-year tax levy.

In addition to funding school infrastructure improvements, looking ahead, the City needs to be prepared for increases in several other cost-driver areas. Collective bargaining, even if the City doesn't move to enact it now at our local level, will most likely become the law of the Commonwealth in the next few years. Fuel, equipment, and supply costs are continuing to rise exponentially, both for direct City purchases and as reflected in our service and construction contracts.

The current City Council voted to increase meals and lodging taxes this year in order to offset a lower-than-recommended increase in property taxes (no doubt responding to backlash after the unfortunate combination of assessment and rate increases hitting simultaneously the previous year). I personally would not have been in favor of increasing the meals tax, as I feel it's a burden that falls unevenly on our small business owners who must account for tax-related customer behavior change while rent and labor costs continue to rise, as opposed to chains that can perform cost-balancing across multiple locations and localities. But I understand the desire to diversify our revenue streams as a City, especially when attracting and retaining commercial investment (and retail specifically) continues to be a challenge. It will definitely be a priority for me to work closely with Economic Development, the Central Fairfax Chamber of Commerce, and other business leadership organizations to maintain Fairfax City's desirability as a place to start and grow businesses. (Relatedly: my full responses to the Chamber's candidate survey can be found here). 

Lest this email sound too doom-and-gloom, though - I have hope! We are beyond fortunate as a City to be in excellent financial standing. Our AAA bond rating was recently renewed, keeping our borrowing rates low (which is why it is largely our operational spending, including schools, driving the tax rate, rather than our capital budget). We are in a unique decision-making position given the multiple City-owned (or soon-to-be-City-owned) properties up for redevelopment/reuse, including potential public-private partnership and/or sale opportunities. We have a history of sound financial management, robust civic participation in the budget process, and an enduringly attractive community with lots to offer. I believe our future is bright...and worth paying taxes for.

Have a great week,

- Kirsten