Alexandrians have the opportunity Tuesday to tell the city council what they think the property tax rate should be.

The property tax is currently 81.5 cents per $100 of assessed value. The council could raise that by two cents when it approves the city’s 2008 budget in May.

That’s “really disappointing” to Kristina Rasmussen, a member of the Alexandria Taxpayers Union. A renter, she said that the prospect of paying several thousand dollars in property tax deters her from buying a house in the city.

Because of the drop in real estate values it is expected that a 83.5 cent-rate would keep the average tax bill about the same or slightly lower. Some residents may see higher tax bills than lower ones, depending on their assessments, Rasmussen said.

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The city projects nearly 3 percent lower real estate assessments overall. As a result, Alexandria faces a tight budget year.

At a recent work session, Alexandria City Councilman Rob Krupicka said businesses will carry much of the city’s 2008 budget because of lower property values. He urged not passing more of the burden on to them, particularly small businesses.

The most pressing shortfall is the $6.8 million difference between the schools’ request and what the council budgeted for it. According to city budget documents, it would take a tax rate of 85.2 cents per $100 of assessed value to fully fund the schools budget and provide a 3 percent raise to all city and schools employees.

“It’s become pretty clear over time that it’s not possible to maintain” the tax rate and pay for raises for city employees, and fully fund the schools budget, Councilman Timothy Lovain said during the council’s most recent discussion of the property tax.

Rasmussen said she understands the city needs to pay competitive wages or lose employees to other jurisdictions, but she said Alexandria also needs to be competitive for residents.

Citizens can speak Tuesday about both the property tax rate and the personal property tax rate, which won’t increase. The city council meeting is at 7 p.m. in city hall.

mhegstad@dcexaminer.com