[Archived] City Manager Proposes $398.6 Million Operating Budget for FY 2004

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

City Manager Proposes $398.6 Million Operating Budget
For Fiscal Year 2004
3-cent Reduction Proposed for Real Estate Tax Rate
6.1 % Increase for City Schools

Alexandria City Manager Philip Sunderland proposed a $398.6 million general fund operating budget for Fiscal Year 2004, an increase of 6.6 percent over the FY 2003 general fund budget. The total all funds operating budget is $479.2 million. The fiscal year is from July 1, 2003, to June 30, 2004.

The proposed budget includes a 3-cent decrease in the real estate tax rate from $1.08 to $1.05 per $100 of assessed value. While this proposed reduction would provide some relief for homeowners ($93 relief to the average residential homeowner), annual taxes on the average residential home in Alexandria (with an assessment of $308,876) would still increase by 21 percent or about $563.

Sunderland proposed increasing the City’s transfer to the Alexandria City Public Schools by 6.1 percent, or $7 million, to $122.4 million. This fully funds the School Boards’ request. Funding for City schools represents 30.7 percent of the City’s general fund. The proposed budget includes funding for a 2.25 percent Cost of Living Adjustment (COLA) for all school and City employees, a new teacher compensation program and an increase in teacher instructional days.

“In many ways, this has been a year unlike other budget years,” said Sunderland. “Both the General Fund Operating Budget and the Capital Improvements Program (CIP) are the product of the balancing of a wide range of important, often-competing factors, some of which we have not seen in previous years,” he said.

Important considerations in the preparation of the proposed budget included:

• full funding of Alexandria City Public Schools to continue the progress toward a fully accredited school system.
• two significant new capital projects: a new TC Williams High School and a new Police Department building..
• the need to provide real estate tax relief due to the rise in 2003 residential assessments.
• the third consecutive year of continued reductions in state aid ($3 million this year) and the projection for future additional cuts.

• reductions in non-property tax revenues, including City interest earnings, intergovernmental revenue, recordation fees and telecommunication taxes.
• increased public safety and security needs.

Highlights of the proposed budget are:

• $200,000 for additional tax relief for senior citizens, the disabled and possibly others.
• $1.2 million more for Metro bus and rail and DASH bus.
• $1.1 million for an interim police facility lease, for use before a new police facility is built.
• a $500,000 increase in juvenile detention costs, community services and residential programs.
• $1 million for the Housing Opportunities Fund, established to acquire, construct and operate affordable housing in Alexandria.
• $8.7 million for City employees, including a 2.25 percent COLA, merit increases and increases in health and life insurance.
• $600,000 for traffic calming and other measures to help protect residential neighborhoods from cut-through traffic.
• $474,000 for salaries and professional services to continue the Department of Planning and Zoning’s enhanced planning effort.
• $100,000 for maintenance of parks, fields, and other public spaces.
• $240,000 for the Arlandria Neighborhood Health Services, Inc.
• $118,000 for the teen pregnancy prevention program.
• $425,000 for services for mentally disabled adults.
• $95,000 for the Finance Department’s administration of the state-imposed “car tax” and City retirement programs.
• $325,000 for the repair and maintenance of the new Health Department facility on King Street and to service City pool cars.

The City’s share of the proposed six-year CIP is 78 percent higher than the current CIP. The significant increase is due to five major projects:

• An increase of $45.3 million (for a total of $74.5 million) for a new TC Williams High School.
• $65.5 million for land acquisition and construction of a new Police Department headquarters.
• $7.6 million to renovate Charles Houston and Patrick Henry recreation centers.
• $20 million to expand and renovate the Chinquapin Recreation Center.
• An additional $12.7 million (for a total of $24.2 million) for repairs to the sanitary sewer system.

Copies of the proposed FY 2004 Operating Budget and the FY 2004-2009 CIP are available on the City’s website An online form is also available for citizens to submit budget comments or suggestions. To obtain a copy of the budget documents on CD-ROM, call the Office of Management and Budget at 703.838.4780.

The City Council is scheduled to adopt the FY2004 budget and set the real estate tax rate on April 29.