[Archived] Alexandria City Manager Proposes $471 Million General Fund Operating Budget for FY 2006

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

For Immediate Release
March 8, 2005
PIO 065-05/bg

Alexandria City Manager Proposes
$471 Million General Fund Operating Budget for FY 2006

4-cent Reduction Proposed for Real Estate Tax Rate
Expansion of Real Estate Tax Relief Program for Low and Moderate Income Home Owners
Tax Relief, Reform and Simplification for Small and Medium Sized Businesses
$3.65 million available for affordable housing programs or additional tax relief
7.5 Percent Increase for City Schools

Alexandria City Manager James K. Hartmann proposes a $565.7 million All Funds operating budget for Fiscal Year 2006, an 8.2 percent increase. As part of that All Funds budget, he also proposed a $471 million General Fund operating budget for Fiscal Year 2006, an increase of $37.9 million or 8.7 percent over the FY 2005 General Fund budget.

“This proposed budget seeks to balance the community’s needs for direct services, infrastructure and facilities that only local government can provide, with the ability and willingness of residents and businesses to pay local taxes and fees,” said Hartmann. “I am confident that this budget and capital improvement program attempts to provide the balance.”

The 4-cent tax reduction to 95.5 cents is the largest tax rate reduction proposed by the City Manager in 15 years, and if approved, it would be the lowest tax rate in Alexandria in more than 50 years. The budget provides real estate tax relief totaling more than $20 million with both the overall 4-cent tax rate reduction, as well as targeted tax relief to low and moderate income households and the elderly and disabled.

Since the core of the Alexandria business community is comprised largely of small businesses and start-up entrepreneurs, in addition to real estate tax relief, the budget proposes both tax relief, reform and simplification for small and medium sized businesses in their first two years of operation - when each dollar is vital to the future success of a business.

The major elements of the $37.9 million General Fund budget increase include:

• To help keep City crime rates low, and to increase the number of officers on patrol in Alexandria, the budget adds 14 new police officer positions.
• An additional $4 million as Alexandria’s share of transit subsidies to maintain current DASH and WMATA transit services.
• An additional $4.7 million in debt service and cash capital contributions is required to pay the costs of capital projects including the construction of a new T.C. Williams High School.
• An increase of $9.8 million for the City schools, which fully funds the School Board’s operating budget request except it assumes two technical adjustments of $0.9 million.
• $3.65 million of special revenues be set aside for possible dedication by City Council to affordable housing programs by the creation of a dedicated special revenue stream from a portion of the tax on recording real property transactions.
• More than $4 million in additional City funding to offset the decline or flattening of federal and state assistance in order to continue providing essential services. Many of these increases in City funding are focused in the social services area, which are relatively more dependent on federal and state grant funding.
• To improve services provided to those who are in need or particularly at risk, by funding the expanded eligibility guidelines for child day care assistance, improving the supervision at group homes, creating a child assessment and treatment center for children who may be abused or neglected, funding for grants to non-profits providing social services, supporting developmentally disabled youth in transition to adulthood, and companion aide service to the elderly.
• Various improvements promoting pedestrian access and safety along with traffic calming measures to mitigate the effects of traffic on Alexandria neighborhoods.
• Additional funding is proposed in the CIP to improve the transportation infrastructure throughout the City, as well as to maintain and to improve City facilities.
• A 2 percent COLA for City and school employees.
• $1.2 million in expenditure reductions and efficiencies.

“This budget serves as the plan and authorization to implement the priorities, vision and goals of the City Council on behalf of our residents, businesses and visitors while maintaining the quality of life in Alexandria,” said Hartmann.

Over the next two months, the City Council will review the proposed budget, hold work sessions and a public hearing and is scheduled to adopt a budget and tax rate on May 2. The budget meetings will be held at 7 pm in the Council Chamber, 2nd floor of City Hall, 301 King St. The schedule is as follows:

March 15 -- Work session
March 29 -- Work session
April 4, 4 pm -- Public Hearing
April 6 -- Work session at G. W. Middle School, 1005 Mt. Vernon Ave.
April 11 -- Work session
April 27 -- Work session
May 2, 6 pm -- Budget work session
7 pm -- Budget adoption

Copies of the FY06 City Manager’s Proposed Budget can be viewed on the City web site alexandriava.gov . Copies of the budget can also be picked up in the Office of Management and Budget, City Hall room 3630, 301 King St. For more information, call 703.838.4780.