summarizes the list of FY 2017 budget add/delete items eligible for
consideration in the Preliminary Add/Delete work session on Tuesday, April 26,
2016 in City Council Chambers at 6:00 pm. City Council’s Add/Delete submissions
are described and provided as Attachment 3.
Revenue Re-Estimates: +306,627 (Budget Memo
developed by staff and summarized in Budget Memo #18 (Attachment 1) include a
$306,627 increase in FY 2017 General Fund revenues based on actual FY 2016
billings and collections through March. Of that additional revenue, $94,200 is
needed to fund technical expenditure adjustments outlined in Budget Memo #18,
leaving a net of $212,427 available to fund additional expenditures in the
In addition to the
increased revenues available due to re-estimates, several tax and fee increases
have also been proposed for consideration in Add/Delete.
Real Estate Property Tax Increase (Up to 2.0
Cents): +10,245,600 Maximum Increase
advertised a maximum real estate property tax rate of $1.073 per $100 of
assessed value, a three (3) cent increase over the current rate, on March 15,
2016 and heard public testimony on April 16, 2016. The FY 2017 proposed budget
includes a one (1) cent increase. In advertising the maximum three (3) cent
increase, Council directed staff to develop a recommendation for capital
projects to be funded by the additional two (2) cents and summarized in the
expenditure section of this memorandum.
Cigarette Tax Increase (11 Cents): +$160,555
include a proposal to increase the tobacco tax by 11 cents from the current
rate of $1.15 per pack to $1.26 per pack. The increase would generate an
additional $160,555 in revenue. A portion of the increase is proposed to
restore a reduction in Northern Virginia Dental Clinic funding included in the
proposed budget $57,914. The remaining $102,641 is proposed to increase funding
for Neighborhood Health.
Residential Refuse Collection Fee: +$182,490
include a $10 increase in the residential refuse collection fee to implement
the trash and recycling can component of the City’s approved Citywide Parks
Improvement Plan and expand the availability of public space recycling cans.
The proposed budget includes a $16 fee increase, from $337 per household to
$353 due to a reduction in the value of recyclable materials sold by the City
to offset expenditures. This proposal would increase the fee to $363 in FY
Expenditure Technical Adjustments: +$94,200
(Budget Memo #18)
Since presenting the
proposed budget, staff has identified expenditure adjustments for FY 2017
including increases and decreases not included in the proposed budget due to
the timing of their identification. They are summarized in Budget Memo #18
(Attachment 1) and total $94,200, which can be funded by the additional
$306,627 in General Fund revenue identified through re-estimates, leaving
$212,427 available for other expenditures.
Washington Metropolitan Area Transit
Authority (WMATA) Savings: -$566,102 in the Operating Budget and -$850,000 in
the Capital Improvement Program (CIP) (Budget Memo #18)
Included in the expenditure technical adjustments are changes in the City’s share of WMATA operating and capital funding made by WMATA following the presentation of the City’s proposed budget, along with staff’s recommendations that the operating savings be used to increase funding for the City’s Transportation Improvement Program (TIP) by $566,102 and the capital savings be used to increase the City’s Street Resurfacing CIP project by $850,000. The specific use of the TIP funds could be determined by City Council at a later date based on the recommendation of the Transportation Commission.
Capital Project Funding: Up to +$10,245,600
The City Manager’s
FY 2017 proposed budget includes a one cent increase in the real estate tax
rate. At their March 15, 2016 meeting to set the maximum tax rate for calendar
year 2016, City Council set the maximum increase at three cents and directed
the City Manager to provide options for investing the additional two cents on
capital projects. The addition of two cents on the real property tax rate would
provide an additional $7.6 million in revenue in FY 2017 and $3.8 million from
the second real estate tax payment of FY 2016 for a total of $11.4 million, of
which $1.1 million would be required to comply with the City’s policy of
retaining 10% of revenue in fund balance and $10.2 million would be available
as cash capital funding for projects.
Staff recommends applying two-thirds of the additional revenue ($6.8 million) as cash capital to fund City transportation, facilities and broadband projects and using one-third ($3.4 million) to fund the ACPS approved Pre-K Center through a combination of cash funding and borrowing. ACPS projects represent approximately one-third of the FY 2017 CIP (excluding the Potomac Yard Metrorail station). The projects listed in the following table represent the City Manager’s recommendation for additional investment should Council choose to fund additional capital projects in FY 2017.
*In addition, $5.172 million would be borrowed to fund the total $8.3 million needed to fund the retrofitting of the leased space.
City Council only
needs to identify use of the funds generated by the additional two cents on the
tax rate for FY 2017. Staff will plan to program these funds as cash capital
for projects related to transportation, ACPS, and City facilities in future
years of the Capital Improvement Program.
A summary description of each of these projects is included as Attachment 2 to this memorandum.
Energy and Sustainability Project Manager
+$70,000 (CIP Funded)
option is to fund a capitalized Energy and Sustainability Project Manager
position in the CIP to assist the City in achieving the Environmental Action
Plan by participating in regional sustainability projects to demonstrate new
technologies, thus reducing costs and risks to Alexandria; by promoting best
green practices to reduce costs to homeowners and at the same time ecological
impacts to the environment; by assisting in incorporating sustainability goals
and practices into Small Area Plans, such as the Eco-District concept for Old
Town North and Eisenhower West, and ensuring that the City’s sustainability
goals are largely paid for by developers; and by working with City departments
and the Environmental Policy Commission to accelerate the updating of the
City’s Green Building Policy as well as the Environmental Action Plan. This
proposal is for partial year funding (six months) in FY 2017 and would require
a $70,000 reduction in funding for the projects recommended by staff.
Dental/Health Care for the Uninsured
+$160,555 (Cigarette Tax Funded)
This proposal would
use revenue generated by the proposed 11 cent increase in the cigarette tax to
restore funding to the Northern Virginia Dental Clinic reduced in the City’s
proposed budget ($57,914), fund an additional 0.5 FTE Family Nurse Practitioner
or Physician at Neighborhood Health to serve an additional 1,300 health care
visits by 600 or more adults ($87,878) and provide an additional $14,763 in City
funding for Neighborhood Health.
Parks and Public Space Recycling +$182,490
(Residential Refuse Collection Fee Funded)
This proposal would
use revenue generated by the proposed $10 increase in the residential refuse
collection fee to implement the trash and recycling can component of the
approved Citywide Parks Improvement Plan ($163,469) and to expand the
availability of public space recycling cans ($19,021).
Child Care Fee Subsidy +$409,969 (Funded by Offsetting
This proposal would
eliminate approximately 13% of the existing waiting list for the Child Care Fee
Subsidy program by providing care for 58 low income children thereby reducing
the existing 10 month wait for services. In order to fund this increase, the following
corresponding expenditure reductions to new positions added in the FY 2017
proposed budget are proposed.
- Police Motor Officer Sergeant -$100,000: The proposed budget includes $400,000 in
Contingent Reserves to fund increased traffic and speeding enforcement. Staff
recommends that Council transfer the funds to the Police Department to create
two motor officers and one supervisor and increase overtime for traffic and
speeding enforcement. The current staffing is nine (9) officers and one
supervisor. The staff recommendation would increase the number of officers to
11 and add a second supervisor. This proposal would add two officers but not
the second supervisor for a savings of $100,000 to increase the Child Care Fee
- Northern Virginia Juvenile Detention Center (NVJDC) Staffing -$174,000:
NVJDC is a regional facility
located in the City and shared by Arlington County and the City of Falls
Church. The NVJDH proposed adding eight (8) staff positions to increase
staff-to-youth ratios to meet a federal Prison Rape Elimination Act (PREA)
mandate scheduled to go into effect in FY 2018. Adding the positions in FY 2017
would enable NVJDH to begin recruitment and training before the mandate takes
effect. Following the presentation of the City’s proposed budget, NVJDH reduced
its staffing request to six (6) positions at a cost of $112,000. Staff
recommended budgeting the $112,000 increase in the Other Public Safety budget
for NVJDH and retaining $62,000 in a City Council Contingent Reserve. This
proposal would delay the NVJDH hiring until FY 2018 and eliminate the
Contingent Reserve to increase Child Care Fee Subsidy funding by $174,000.
- ITS Business Analyst -$135,969: The proposed budget includes the addition of one (1) new Business
Analyst in the Information Technology Services (ITS) department to assist City
departments with the analysis, design, configuration, testing, and maintenance
of IT system work processes. This proposal would remove the addition of this
position from the FY 2017 budget to increase Child Care Fee Subsidy Funding by
Proposals for Use of the Additional Revenue
Identified through Re-estimates +$212,427
The following items
have been proposed to be funded by the increased General Fund revenue
identified through re-estimates and outlined in Budget Memo #18. In total, the
sum of these items ($294,707) is $82,280 greater than the amount of revenue
available ($212,427), so not all could be funded at the amounts proposed. They
are listed in order of the amount proposed from highest to lowest.
- Fire Hydrant Maintenance +$100,000: The proposed budget includes a reduction from the FY 2016 level of
funding that reduced fire hydrant preventive rebuilds from a five (5) year
cycle to a 10 year cycle. This proposal would restore the five (5) year cycle.
- Library Sunday Hours +$79,862: This proposal would open the three (3) branch libraries for four (4)
hours on Sundays, from 1:00 pm to 5:00 pm.
- Visit Alexandria Digital Advertising +$50,000: This proposal would partially restore
funding eliminated from the budget in FY 2016 ($75,000) to update Visit
Alexandria’s digital advertising material’s content.
- Old Town Business Improvement District (BID) Study +$25,000: This proposal would provide one-time funding
to study the feasibility and best practices for structuring and funding an Old
- Park Maintenance +$22,365: The proposed budget includes a $23,459 reduction in park restroom maintenance, dog park maintenance, and litter pick-up from seven (7) days per week to (5) days per week. This proposal would mostly restore the funding for seven (7) day maintenance.
- Wheelchair Accessible Automatic Door Operator at City Hall +$10,200: This proposal would fund the installation of one wheelchair accessible automatic door operator at the Cameron Street entrance to City Hall.
- Recreation Center Hours +$7,280: This proposal would restore walk-in hours at the Nannie J. Lee Recreation Center that were eliminated in the proposed budget.
Attachment 1 - FY 2017 Budget Memorandum 18
Attachment 3 - City Council’s FY 2017 Preliminary Add/Delete Submissions