City Manager Proposes FY 2014 Budget
In any year, the most important decision the City Council makes is the adoption of the annual budget. The adoption of our budget is actually the adoption of two budgets, the FY 2014 Operating Budget, and the FY 2014 - FY 2023 Capital Improvement Program.
This is where the City Council takes its values, priorities and vision, and balance it against the community's capacity and willingness to pay. It is a stark process full of difficult choices.
As I discussed last month, the revenue picture combined with the increased cost of maintaining current services, left a gap entering the budget process. In the end, that gap totaled $31 million.
The guidance the City Council provided in January asked the City Manager to avoid the 'easy" options of using one-time dollars, increasing debt, and reducing reserves to balance our budget. Additionally, we asked the City Manager to propose a funding plan for our long-neglected capital infrastructure needs--namely school infrastructure, sewer infrastructure, public safety and recreation.
On Tuesday, the City Manager answered our direction and provided his proposed budget.
The combined "All Funds" budget is $759 million--6.1% higher than the FY 2013 approved budget. It grows operating spending on both the City and the Alexandria City Public Schools by 3.3%, but calls for a 34.3% increase for additional debt service and new funding of the Capital Budget.
The proposed budget identifies clear funding sources for increases in spending.
To accommodate the increases in core City operations, the City Manager has utilized a variety of fee increases and the net growth the City is expecting in tax revenue.
To provide $6 million of additional operating funds to our schools to accommodate rising enrollment, as well as $2 million of additional debt service and cash capital costs, the City Manager proposes a 2.5 cent increase to the Real Estate Tax Rate.
To fund the $2 million of additional operating funds required to support the transit services of Metro and DASH, the City Manager has proposed increasing the vehicle Personal Property Tax by 25 cents.
To fund the $10.5 million of additional Capital investments, the City Manager has proposed an additional 3 cent increase to the Real Estate Tax Rate.
With the proposed 5.5 cent real estate tax increase, the average single-family homeowner will pay $546 more in 2014--an 8.16% increase. The average condo homeowner would pay $210 more in 2014--a 7.8% increase. These are certainly large tax increases, and I am commited to working through the process to strike the appropriate balance between spending and taxation.
The pain in the proposed budget is not isolated to the revenue side of the ledger--the proposed budget makes a variety of significant cuts, including:
The elimination of 27.8 full-time employees (or the equivalent), including 14 positions that are currently filled.
Implement means-testing in the City's Senior Taxi program
Eliminate bullying coordination and bullying prevention services
Reducing library hours from 52 hours to 50 hours per week for each branch
Reducing the library materials budget
Close the Warwick Pool
Eliminate early morning hours at Charles Houston Recreation Center
Close Charles Barrett, Mt. Vernon and Patrick Henry Recreation Centers on 3 City Holidays
Reduction in security at the City Marina
Decrease in arts grants by 6%
Reduce the size of the Alexandria Police Department Motorcycle Unit by two officers
Reduce the size of the Alexandria Police Department Tactical Anti-Crime Unit by two officers
Eliminate the Alexandria Police Department's Domestic Violence Victim Outreach/Support position
Eliminating one Vice/Narcotics Detective position
Eliminating one of the three inmate work details within the Sheriff's Department
Reducing the Sheriff's mental health clinical assistance services
Reduce hours at the City's Visitor Center
Cancel membership in the Greater Washington Initiative
Elimination of the Facade Improvement Program for Arlandria
Reduce economic development marketing funding
Eliminate the planned Arlandria/Del Ray Shuttle Service
Increase the headways on the King Street Trolley from 15 minutes to 20 minutes
Implement automated parking in City parking facilities
Eliminate a sick leave bonus paid to employees
Move parking ticket adjudication to the General District Court
Implement changes to City employee health-care plans (new co-pays, etc).
As we begin this process, it is clear that the next several weeks of the budget process will be dominated by three large discussions for our community:
1) How will we accommodate the spending increases required to support growing school enrollmemt?
2) How will we accommodate the dollars required to support our capital needs--particularly those needs in relation to our educational facilities?
3) How will the City make strategic investments to ensure that we grow economically in the future? We need your input in this process as we move forward. There are a variety ways to get involved. We have an extensive series of meetings to discuss various areas of the proposed budget. In addition, on Wednesday March 6th, the City Manager will present his budget to the community at Beatley Library at 7 PM.
The following Monday, on March 11th at 4:00 PM, the City Council will receive public comment in the form of a Public Hearing in the Council Chambers. All of this will culminate in the adoption of the budget on May 6th. Please drop me a line with your thoughts! |