City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 9, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration of Passage on First Reading of an Ordinance to amend and reordain Section 9-1-71.1 (FINANCIAL SERVICES) of Article C (NONREGULATORY LICENSES) of Chapter 1 (Business Licenses) of Title 9 (Licensing and regulation) of the Code of the City of Alexandria, Virginia, 1981, as amended.
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ISSUE: Consideration of an ordinance proposed as part of Add/Delete to increase the Business, Professional, and Occupational License (BPOL) tax rate for Financial Services businesses with annual gross receipts of $100,000 or more from $0.35 per $100 of gross receipts up to a maximum of $0.40 per $100 of gross receipts.
RECOMMENDATION: That City Council:
1. Consider the proposed ordinance (Attachment 2) on first reading and schedule it for public hearing on Saturday, April 18, 2026; and
2. After hearing public testimony, set for second reading and final passage on Wednesday, April 29, with budget adoption.
BACKGROUND: Prior to the deadline on April 6, 2026, for Council Members to submit Add/Delete proposals for the FY 2027 budget that require an ordinance amendment, a proposal was submitted to increase the Financial Services BPOL tax rate by five cents. The preliminary Add/Delete work session is scheduled for April 21, 2026. The final Add/Delete work session, if necessary, is scheduled for April 27, 2026. Following a public hearing, the final decision on this Add/Delete proposal would be deferred until the adoption of the FY 2027 budget on April 29, 2026.
DISCUSSION: On April 6, 2026, several members of City Council submitted a proposal for discussion at the Add/Delete work session to increase the tax rate on businesses in the Financial Services BPOL category by five cents. This would raise the tax rate from $0.35 per $100 of gross receipts to $0.40 per $100 of gross receipts.
For perspective, the City’s current tax rate of $0.35 compares to the following jurisdictions:
• $0.16 Loudoun County
• $0.19 Fairfax County
• $0.33 Prince William County
• $0.36 Arlington County
• $0.40 Fairfax City
• $0.52 Falls Church City
The maximum allowable tax rate for this BPOL category pursuant to the Code of Virginia is $0.58 per $100 of gross receipts.
The tax rate increase is intended to provide funding for the City’s Rental Assistance program, related to Budget Questions number 25 and 39. Specifically, the additional revenue would be used to increase emergency rental assistance program funds to assist families at risk of eviction, including those behind on rent and those facing imminent eviction.
FISCAL IMPACT: The proposed five cent tax increase would become effective January 1, 2027, and is estimated to generate approximately $458,500 in FY 2027 General Fund revenue.
ATTACHMENTS:
1. Ordinance Cover Sheet
2. Proposed Ordinance
3. FY 2027 Budget Question 2, Potential BPOL Rate Increase, Financial Services
STAFF:
Kevin C. Greenlief, Director, Department of Finance
Morgan Routt, Director, Office of Management & Budget