[Archived] City Council Adopts FY 2007 Operating Budget With a 10-cent Cut in the Real Estate Tax Rate- Revision

City Press Release


	For Immediate Release	For More Information, Contact
	April 24, 2006 PIO# 104-06/sjm	Steven J. Mason, Public Information Officer, or Raynard Owens, Communications Officer, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

City Council Adopts FY 2007 Operating Budget
With a 10-cent Cut in the Real Estate Tax Rate
(Revision)

The Alexandria City Council adopted a budget for Fiscal Year 2007 which includes $3.3 million for affordable housing programs, a 3.0% cost-of-living pay adjustment for all City and School staff, and an 8 percent increase in funding for City schools over the current year. The City’s new property tax rate, which took effect immediately after budget adoption, is 81.5 cents per $100 of assessed valuation, and the lowest property tax rate in Alexandria in more than 50 years. The adopted tax rate reduces the real estate tax by 10 cents. City Council reduced $10.3 million from the FY 2007 proposed budget. The City Manager had initially proposed $5.9 million in reduction options for Council to consider to meet an alternative lower budget target set by Council. Council chose to make a net total of $4.4 million additional reductions.

The resulting average increase in real estate taxes for the average residence valued at $527,000 is $259 or 6.4%. The average single family residence would have an average tax increase of $268 or 5.2% and the average condominium would have a tax increase of $250 or 9.2% (prior to the application of household income-targeted tax relief). The new rate of 81.5 cents will be the second lowest among major Northern Virginia jurisdictions. There would be no increase in the City’s personal property tax rate or any other City tax.

In addition, the Council increased the benefits and income threshold for real estate tax relief for low and moderate income home owners, and (to $72,000) for senior citizens and the permanently and totally disabled.

“I believe Council acted responsibly in adopting this new budget,” said Mayor Euille. “We listened to our residents and business owners, and carefully weighed the costs to continue the level of services provided to our community. This budget also provides funding for sewer system improvements, preservation of our historic museums, and for parks and recreation improvements.”

The adopted General Fund Operating Budget for FY 2007 totals $493.7 million, which is a 4.9% increase over FY 2006.

The major elements of the FY07 General Fund budget include additional funding for:

• Emergency medical services
• Office of the Sheriff
• Fall leaf collection
• Youth gang prevention initiatives
• National Historic Register surveys of Old and Historic and Parker Gray Districts
• Parent Leadership Training
• Before and After School Program Coordination
• Psychiatric Nursing Services
• Public Health Nurse for enhanced tuberculosis prevention program

• City staffing will remain level for FY 2007.

• Major capital projects being funded include
• $1.5 million for a new E-911 emergency call-taking system
• $19.5 million for the next phase of continued construction of the T.C. Williams High School as previously planned
• $5.4 million for sewer system improvements
• $6.4 million for the City’s share of Metrobus and Metrorail capital improvements
• $0.8 million for preservation of City historic museums
• $3.7 million for parks and recreation improvements

• The budget dedicates 1 percent of the real estate tax for open space acquisition equal to $2.7 million

• The budget also dedicates 1 penny of the real estate tax for affordable housing equal to $3.3 million annually.

A summary of changes made by Council to the proposed FY07 budget will be posted on the web site tomorrow (April 25) and printed copies of the adopted budget will be available in June.

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