At this point in the process, any suggested addition to the budget must be offset by additional revenue, or another cut.
As I have discussed in previous newsletters, we are facing forecasts that suggest large gaps between our expected revenue and our planned expenditures for the next several years.
In light of our revenue and expenditure outlook, it is essential that we take actions that improve that outlook, not worsen it.
I believe we need to use this budget as an opportunity to address our long-neglected capital infrastructure--both as a means to provide our residents infrastructure worth their investment as well as a budgetary means to ease the pressure caused by projected future deficits.
With that in mind, my proposed budget add/deletes commit 2.3885 cents of the proposed real estate tax increase to capital spending-addressing long-neglected needs and reducing the projected deficits and debt of future years.
Additionally, I believe there are actions we can undertake within the Operating budget that are both reflective of our values as a community and reduce our future expenditures. I have proposed that we clear the waiting list of children awaiting pre-school services--and ensure that every child in Alexandria begins Kindergarten ready to learn. Doing so allows us to receive additional funds from the Commonwealth, and avoid some future expenditures.
Strategic Reductions
Ensure Access To Pre-School: We have 318 families on the waiting list for pre-school in Alexandria. Ensuring that children in Alexandria have access to pre-school is the most important investment we can make in the future success of those children--both within the Alexandria City Public Schools, and beyond.
In addition to significant long-term benefits--both in academic achievement and financially, additional investment will allow Alexandria to draw down Virginia Preschool Initiative dollars that will otherwise revert to the Commonwealth.
The science is settled. We know that an investment in children prior to Kindergarten is more valuable than any other investment we can make. We should take this opportunity to ensure that Alexandria is a place where every child, regardless of their background, starts Kindergarten ready to learn.
Investing in our Infrastructure: I have proposed the commitment of an additional $100 million over the next 10 years to fund our capital infrastructure needs. This will allow us to address significant needs within the Alexandria City Public Schools (both capacity and maintenance), as well as providing a future for municipal aquatics in our City.
My proposal provides $22.6 million in additional Capital Spending for the Alexandria City Public Schools. While this addresses many of the short-term capital needs, it by no means addresses all of the impacts of our projected growth. We will need to continue the long-term conversation with our School Board to address these needs going forward.
To ease the crunch in our future budgets, I have proposed $2.3 million in debt reduction and advanced a few future capital projects.
Re-investment in Recycling: The City Manager's proposed budget assumes the reduction of the Residential Refuse fee by $20--reflecting the savings from the recently approved solid waste disposal contract. I have proposed that we reduce the fee by $8, and use the resulting revenue to invest in expansion of recycling services.
Youth Sports Field Use Fee Abatement: Currently, there are non-profit youth sports leagues in Alexandria that provide scholarships for children receiving Free and Reduced Lunch through the Alexandria City Public Schools. I have proposed that those leagues not be required to pay the applicable Field Use Fee assessed by the City for those scholarship children.
Taxation: I am not insensitive to the significant increase in taxation that this requires. This real estate tax rate coupled with appreciations would require the average single family homeowner to pay an additional $448 next year, and the average condo homeowner to pay an additional $168. That, coupled with tax increases at the Federal and State level, as well as stagnant income growth, will be difficult for our residents.
That being said, I would suggest that tackling these issues now allows us to avoid further (more expensive) increases in future years when economic growth will continue to lag.
Throughout this week, the Council will work to build a consensus in preparation for the adoption of the budget on Monday evening.
I will post updates on Twitter and Facebook.
