Question #72: Preliminary Add/Delete List

FY 2018 Question #72: Preliminary Add/Delete List

Page updated on Jun 16, 2017 at 10:29 AM

This memorandum summarizes the FY 2018 budget add/delete items eligible for consideration in the Preliminary Add/Delete worksession on Tuesday, April 25, 2017 at 6:00 pm in City Council Chambers. City Council’s eligible add/delete proposals are listed Attachment 1 and provided in Attachment 2. 

In accordance with Resolution 2746 (adopted on November 9, 2016) on setting guidance for the FY 2018 budget process, a combined list of all City Council budget proposals, technical adjustments from OMB, and City Manager recommended changes is to be provided and discussed at the preliminary add/delete work session. In order to be eligible for consideration, a proposal must:

  1. Contain information related to how the change advances the Council’s goals/priorities;

  2. Contain information related to how the change impacts the performance of that program, service, or goal;

  3. Have received the support of at least 3 of 7 Council members (the original sponsor and two co-sponsors); and

  4. Be accompanied by an add/delete spreadsheet prepared by the Council member or OMB in which the sum of the individual Council members’ adds and deletes, including the items originally sponsored by that member and those co-sponsored by that member, are in balance or produce a revenue surplus.

     

REVENUES

Real Estate Property Tax Increase (Up to 3.0 Cents): +$15,583,000 Maximum Increase

On March 14, 2017, City Council advertised a maximum real estate property tax rate of $1.13 per $100 of assessed value, a 5.7 cent increase over the current rate and a 3.0 cent increase over the City Manager’s proposed budget. The addition of 3.0 cents on the real property tax rate would provide an additional $11.6 million in revenue in FY 2018 and $5.7 million from the second real estate tax payment of FY 2017 for a total of $17.3 million, of which $1.7 million would be required to comply with the City’s policy of retaining 10% of revenue in fund balance. Therefore $15.6 million would be available as funding for FY 2017 and FY 2018.

Revenues received from the rate increase are proposed to fund one affordable housing project at a $4.3 million cost in FY 2018, with the remainder of funding to be put in to a Capital Improvement Program (CIP) contingency for facilities investments in FY 2018 through FY 2027. The contingency is contemplated to be eventually programmed for specific projects in the FY 2019-2028 City and Alexandria City Public Schools (ACPS) proposed CIPs based on the recommendations of the proposed Ad Hoc Joint City/Schools Facility Investment Task Force proposed to be created as part of budget adoption and described in Budget Question #68 and in the following expenditure increase section. 

Red Light Camera Program (Budget Question #36): +$147,000

Add/delete options include a proposal to increase the number of red light cameras in the City by two. This would generate an additional $147,000 in revenue. A portion of this revenue is needed to administer the cost of the program ($123,000). The revenue amount represents nine months of revenue in FY 2018 (as opposed to a full year beginning in FY 2019) to give staff time to select intersections and construct the camera infrastructure.

Additional Federal Prisoner Per Diem: +$60,000

Add/delete options include a proposal to increase the amount of federal prisoner per diem by $60,000 by housing additional federal prisoners for the U.S. Marshals Office. This revenue is proposed to partially restore a Deputy Sheriff position who serves on the U.S. Marshals Service Fugitive Task Force.

         

EXPENDITURES

Affordable Housing: +$4,300,000 (Budget Question #15)

This proposal would contribute $4.3 million to the Housing Opportunity Fund to increase affordable housing units in the City by funding one project in FY 2018 from revenues raised by the real estate property tax increase. 

City Capital Improvement Program (CIP) Contingency for eventual City and Schools Facility Investments: Up to +$15,583,000 (Budget Questions #68 and #69)

At the March 14, 2017 meeting to set the maximum tax rate for calendar year 2017, City Council directed the City Manager to develop a recommendation for an Ad-Hoc Joint City-Schools Facility Investment Task Force. This task force would (1) oversee the development of a joint facilities CIP for the City and Schools and (2) provide recommendations related to further capital project implementation and is described in Budget Question #68.

Staff recommends using a portion of the FY 2017 real estate tax revenue increase to fund consultant and Planning & Zoning staff  costs to support the task force ($414,000) discussed in Budget Question #68 and the Wednesday, April 19 budget work session. The remaining real estate tax revenue after funding affordable housing and the task force support would be put into a City CIP contingency line for eventual City and Schools facility investments in FY 2018 through FY 2027. The contingency funds are contemplated to be programmed in the FY 2019 – 2028 City and ACPS proposed CIPs based on the recommendations of the task force.

Red Light Camera Program: +$123,000 (Budget Question #36)

This proposal would add two red light cameras in the City to increase traffic enforcement. Locations would be installed at sites to be recommended by the Department of Transportation and Environmental Services and the Police Department. This additional cost is for one additional Special Police Officer position as well as payments to the vendor who administers the program. This amount represents nine months of expenses to give staff time to select intersections and construct the camera infrastructure. As previously mentioned in the revenue section above, this expenditure is expected to collect $147,000 in additional revenue.

Restore Deputy Sheriff Position: +$78,727 (Budget Question Pending)

This proposal would restore a Deputy Sheriff position assigned to the U.S. Marshals Service Fugitive Task Force. This would enable the City to continue its participation in the task force which apprehends fugitives with priority given to fugitives of violent crimes. This would be funded by additional federal prisoner per diem revenue ($60,000) described in the revenue section above as well as a $18,727 reduction in non-personnel expenditures in the Sheriff’s Office.

Early Childhood Education Contingent Reserve: +$451,743 (Budget Questions #11 and #43)

This proposal would provide funds via reallocation in Contingent Reserves to provide subsidy support for existing partners who have additional capacity within the City’s non-profit early childhood system and allow the City to draw down additional available Virginia Preschool Initiative funding. The expenditure increase is proposed to be funded by using funding in Contingent Reserves currently designated for the Northern Virginia Juvenile Detention Center (NVJDC) pending further discussion of the facility’s future. 

Microloan Program for Small Businesses: +$50,000 (Budget Question #49)

This proposal would provide resources for a microloan program for small businesses. Funding for this program would come from undesignated Contingent Reserve funding. 

Restore Recreation Center Walk-in Hours: +$45,572 (Budget Questions #7 and #46)

This proposal would restore recreation center walk-in hours from 9 am to 2 pm at Cora Kelly and William Ramsay recreation centers. This would restore front desk staffing in the morning hours at these centers on week days during the school year. Funding for this restoration would come from undesignated Contingent Reserve funding.

Expanding the Summer Youth Employment Program: +$75,478 (Budget Question #39)

This proposal would increase the number of hours for youth participating in the Summer Youth Employment Program from 20 hours to 30 hours for the duration of the 6-week program. The cost of $75,748 would come from undesignated Contingent Reserve funding.

Proactive Maintenance of Urban Forest: +$106,500 (Budget Question #25)

This proposal would direct $106,500 of additional funding to the Proactive Maintenance of the Urban Forest project (CIP 9.42) of the Capital Improvement Program to advance the project from FY 2022 in the proposed CIP to FY 2018. This is expected to prolong the life of the existing tree canopy. The funding for this increase will come from a reduction to the Tree & Shrub Capital Maintenance project (CIP 9.31) funding in FY 2018 – 2021.

ATTACHMENTS:

Attachment 1 – Combined List of Preliminary Add/Delete Proposals

Attachment 2 – City Council’s FY 2018 Preliminary Add/Delete Proposals


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