| For Immediate Release | For More Information, Contact | |
| May 7, 2007 PIO# | Steve Mason, Director of Communications, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300 | |
ALEXANDRIA CITY COUNCIL ADOPTS GENERAL FUND OPERATING BUDGET OF $519.5 MILLION FOR FISCAL YEAR 2008 Adopted Budget Represents Increase of 4.4% Increase Above FY 2007 On May 7, the Alexandria City Council adopted a $519.5 million General Fund Operating Budget for FY 2008, a 4.4 percent increase of $21.8 million over FY 2007. The All Funds Operating Budget for FY 2008 would increase by 2.9 percent or $17.7 million. The prior year’s real estate tax rate of 81.5 cents per $100 of assessed value would be raised by 1.5 cents to 83.0 cents, but still remains the 2nd lowest among major jurisdictions in Northern Virginia. Under the revised tax rate, the average homeowner’s taxes would decline $48 or 1.1 percent. The personal property tax rate remains unchanged at $4.75 per $100 of assessed value. Significant changes to the budget made by City Council include the following: � The adopted budget provides a 1.5 percent COLA for both City and Schools employees ($2.8 million for City employees and $2.1 million for Schools employees). � The budget includes an additional $2.65 million above the Schools target for its other operating expenses and includes the funds for a COLA – approximately $1.4 million less than requested by the School Board. The total Schools operating budget would increase by 3.9% including State and federal revenue, and fund balances from prior year surpluses. � The budget provides an additional $0.9 million for transportation capital improvements by raising vehicle registration fees by $10 a year as allowed by legislation recently passed by the Virginia General Assembly. � The budget includes an additional $2.15 million for City operating programs including $877,000 for eliminating the waiting list for child day care fee subsidies and meeting other Department of Human Services budget needs, $305,000 for the Sheriff’s Office, $124,000 for environmental studies, and action plans, $780,000 for re-instituting red light cameras, and $80,000 for surveying 100 year-old buildings. � The adopted budget also sets aside additional amounts in fund balances from prior year surpluses including: $400,000 more than originally designated for possible National Harbor related initiatives, $850,000 to build an additional artificial turf playing field, $500,000 for possible increases in mandated foster care and special education costs, and $300,000 for street lights and new refuse cans. This year’s budget process provided more time for City Council and the public to consider difficult budget choices before Council adopted a budget on May 7th. A new budget format presents more detail on approximately 500 City government activities, each of which has various measures of cost, performance and results. City Council held 14 work sessions and two public hearings on the FY 2008 budget before adoption. Mayor William Euille said, “City Council worked very hard this year to thoroughly understand and evaluate the proposed budgets of the City Manager and the School Board in every respect. We believe our final adopted budget meets our current strategic needs and does so in a fiscally responsible manner. This budget represents a reasonable balance between the needs of the City and the City’s ability to pay for those needs.” After Council’s actions, the budget for basic City operations is increasing by only 1.9% with a net decrease of 11 City positions. Transit subsidies will increase 7.7%, one of the highest rates of growth in the budget, primarily to fund Alexandria’s share of regional METRO operations. Funding for capital projects in the CIP through debt service and pay-as-you go financing will increase by 13.3%, primarily to maintain existing infrastructure. The City transfer to the Schools increased by 6.9% increase or $160.2 million. Thirty-one percent of the General Fund budget is provided for the Schools. The total Schools operating budget would increase by 3.9% including State and Federal revenue, and fund balances from prior year surpluses. Those few new City initiatives or significant increases contained in the originally proposed FY 2008 and the adopted budget include: � $1.0 million in increased City subsidy for Metrobus and Metrorail. � $120,000 in increased Emergency Medical Services staffing to ensure Advanced Life Support level of care is always available. � $1.0 million for Child Welfare programs to replace reduced Federal funds. � $200,000 to improve pedestrian and other pavement markings throughout the City. � $111,000 for a 5% increase for grants to social service non-profits providing support to Alexandria’s most needy. � $135,000 to partially replace lost state funding for early childhood programs. � $47,000 for an energy conservation manager to monitor, analyze and coordinate citywide energy conservation measures. Among savings in the adopted budget are included: � $307,000 in savings in the Department of Transportation and Environmental Services as a result of an efficiency and best practices study. � $375,000 in savings due to the closure of the City’s vehicle impound lot. � $227,000 in savings to outsource printing production costs. � $171,000 in savings in Information Technology Services including mainframe computer support and staff. � $527,000 in savings due to elimination of various positions in the Department of Human Services and non-personnel savings in the Department of Mental Health, Mental Retardation and Substance Abuse. � $388,000 in various savings in the Police ($170,000) and Fire ($148,000) Departments and the Sheriff’s Office ($70,000). � $326,000 in various savings in `Recreation programs. � $570,000 in savings due to increased employee cost sharing of health insurance premiums. � $483,000 in savings due to vacant positions. The fiscal year 2008 proposed budget also provides $8.9 million in pay-as-you go financing from the General Fund for capital projects, which along with the bond and other capital funds will finance $64.9 million in capital projects including: � $7.5 million for a new Charles Houston Recreation Center. � $500,000 for preservation of historic museums and facilities. � $7.1 million for the “Metro Matters” program that maintains the Metrobus and Metrorail systems. � $2.7 million for street improvements. � $6.8 million in sanitary sewer and storm water projects � $16.2 million in school capital projects (fully funding the School Board request). Alexandria continues to be a leader in providing targeted real estate tax relief. Some $3.7 million in tax relief is projected for qualifying senior and disabled homeowners. Also, $1.25 million is budgeted for the City’s first-in-Virginia, innovative Affordable Home Ownership Preservation Grant program. This income-based grant range extends to households of $100,000 annual income and provides grants of up to $1,200. About 2,400 property tax payers or 6% of all Alexandria homeowners are expected to benefit from these real estate tax relief programs. The adopted budget slightly exceeds the targets originally set by Council last November as part of a new budget process by $10.6 million (or 2.1 percent). City Manager James Hartmann said, “I knew that the targets set last November were meant to be a starting point and not an ending point for Council’s consideration of the budget. City Council reviewed the proposed budget closely and, based on the justifications and explanatory material provided, determined that it was necessary to provide more funding than originally provided in the target to meet the critical needs of the City.” The table below summarizes these changes for both the City (including the cost of funding all of the Capital Improvement Program or CIP) and the transfer to the Alexandria City Public Schools for its operating expenses. FY 2008 General Fund Budget ($ in millions)
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