PROPOSED BUDGET February 23, 2017 Economic Outlook Slow Growing - - PowerPoint PPT Presentation

FY 2018 CITY MANAGER’S PROPOSED BUDGET

February 23, 2017

Economic Outlook

• Slow Growing Regional Economy
• Tax base growth of 2%
• Federal government employment and

policy changes

• High Office Vacancy Rate
• Need for Economic Development

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Proposed Budget Highlights

• $712.5 M General Fund
• 3.5% Increase
• $873.7 M All Funds
• 2.5% Increase
• Base Revenue Growth = $15 M or +1.6%
• 2.7 Cent Real Estate Tax Rate Increase
• Adds $10.4 M to FY 2018 Revenues
• ACPS Transfer increase of $7.5 M to 214.1 M or +3.6%
• Funds 99 % of ACPS Budget
• City operations increase +0.9%
• Metro increase $7 M or +110%

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Proposed Budget Summary

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General Fund Expenditures FY 2017 Approved FY 2018 Proposed $ Chg % Chg City Operations $384.9 M $388.2 M $3.3 M 0.9% City Related Debt Service $38.9 M $41.7 M $2.8 M 7.1% City Subtotal $423.8 M $429.8 M $6.1 M 1.4% Schools School Operations $206.6 M $214.1 M $7.5 M 3.6% School Related Debt Service $27.6 M $28.5 M $0.9 M 3.3% Schools Subtotal $234.2 M $242.6 M $8.4 M 3.6% Metro Operating Subsidy $6.3 M $13.3 M $7.0 M 110.4% Cash Capital $23.8 M $26.7 M $2.9 M 12.2% Total Expenditures $688.1 M $712.5 M $24.4 M 3.5%

* Numbers may not add up correctly due to rounding.

Revenue

• Real estate tax rate increases 2.7 cents

to $1.10

• Average homeowner’s tax bill increase of

$197 or 3.5%

• Sanitary Sewer rate increasing 30%

from $1.40 to $1.82

• Stormwater Utility Fee of $140 per

year implemented

• Household waste collection increasing

$10 per year to $373

• Other proposed fee increases

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Compensation & Personnel

• Annual merit increases of $5.0 M
• One additional step at end of the pay

scale ($0.8 M)

• Health insurance increase of about 8%
• Fiscal stability of Supplemental

Retirement Plan lump sum payout reform

• Budget funds 2,564 FTEs, a net change
• f -1 from FY 2017
• Since FY 2009, the City is down 100

positions

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Safe, Secure, & Just Community

• $1.5 M in funding to accelerate filling
• f Police vacancies in patrol and traffic

units

• Implementation of new Police patrol

schedule ($0.3 M savings)

• DEC and Call.Click.Connect. merged to

facilitate future move to 3-1-1

• Dual-role incentive pay to increase

dual-role providers in the Fire Department ($0.4 M)

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Healthy & Thriving Residents

• Maximizing Medicaid and other

reimbursements ($0.7 M)

• Improved library efficiency and

customer service

• Home health aid wages increased to

reduce waiting list of seniors

• Additional shift in RPCA towards cost

recovery

• Youth sport scholarship funding in

Contingent Reserves

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Livable, Green, & Prospering City

• Increase in transit operating subsidy

for WMATA of $7 M to total of $40 M

• King Street Trolley shifted back to

10:30am start

• Marketing fund reallocated to fund

MGM advertising and retail pop-up

• Fees in museums and recreation

programs increased

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Accountable, Effective, and Well- Managed Government

• CIP shift to priority based maintenance
• f City assets
• $10.0 M for broadband implementation
• Shift in staffing to higher priority areas
• Delinquent tax and Out-of-State plate

tax collection initiatives

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ACPS Operating Budget

Comparison of Proposed City and ACPS Operating Transfers1 11

FY 2017 Adopted FY 2018 Proposed Dollar Increase Percent Increase ACPS Transfer $206.6 M $216.2 M $9.6 M +4.6% City Operating Transfer $206.6 M $214.1 M $7.5 M +3.6% % of ACPS Budget Funded 100% 99%

• 1. Does not include School related debt service which will equal $28.5 million

in FY 2018.

ACPS Capital Improvement Program

Comparison of Proposed City and ACPS 10-Year Capital Improvement Programs

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($ in millions)

Previously Adopted FY 2018 - 2027 Proposed FY 2018 – 2027 Dollar Increase Percent Increase ACPS $247 $611 $364 +147% City $230 $373 $143 +62% Difference $17 $238

ACPS Funding Comparison

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School Board Approved FY 17 - 26 CIP $247 M City Council Approved FY 17 - 26 CIP $230 M School Board Approved FY 18 - 27 CIP $611 M City Manager's Proposed FY 18 - 27 CIP $373 M $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Millions School Board Approved FY 2017 - 2026 CIP City Council Approved FY 2017 - 2026 CIP School Board Approved FY 2018 - 2027 CIP City Manager's Proposed FY 2018 - 2027 CIP

10-Year Capital Improvement Program

• $2 Billion 10-year plan for City and

Schools

• WMATA Safe & Reliable program adds

$161 M

• Combined Sewer Overflow System

funding of $390 M to meet new mandates

• City Facilities capital maintenance of

$106 M

• $62 M 10-year State/Federal mandated

Stormwater

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Capital Improvement Program

• FY 2018 Projects
• Fund first half of broadband initiative ($5.0 M)
• 9-1-1 system upgrade to NextGen911 ($1.7

M)

• Courthouse security system replacement

($2.3 M)

• Combined Sewer Overflow planning funds

($1.0 M)

• DASH bus replacements ($3.3 M)
• Improvements at Glebe and Route 1 ($3.2 M,

developer paid)

• Street and road repaving ($5.3 M)

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Unfunded Supplemental CIP

• Requested in City Council Guidance
• Totals $325.2 M over 10 years
• ACPS funding ($203 M)
• 50 meter Chinquapin pool addition ($15 M)
• Affordable housing funds ($4 M)
• Open Space Acquisition ($8 M)
• DASH bus replacements ($10 M)
• New public safety indoor firing range ($25 M)
• Waterfront Parks development ($15 M)
• Funding options presented

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Unfunded Supplemental CIP

(First Five Years)

17 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 + $0.05 Real Estate Tax $ 19.0 M $ 19.2 M $ 19.4 M $ 19.6 M $ 19.8 M + $0.01 Meals Tax

• $ 5.0 M

$ 5.1 M $ 5.2 M $ 5.3 M + $0.50 Personal Prop. Tax $ 7.0 M $ 7.1 M $ 7.2 M $ 7.3 M $ 7.4 M Total Revenue $ 26.0 M $ 31.3 M $ 31.7 M $ 32.1 M $ 32.5 M Cash Carryover $ 10.0 M $ 0.6 M

• $ 13.5 M

Short Term Borrowing

• $ 16.1 M $ 13.6 M
• Total Reso

esources $ $ 36.0 36.0 M $ $ 48.0 48.0 M $ $ 45.3 45.3 M $ $ 32. 32.1 1 M $ $ 46.0 46.0 M Supplemental CIP $ 35.4 M $ 48.0 M $ 45.3 M $ 18.6 M $ 40.3 M

Budget Development Dates

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Tuesday, February 21 7:00pm FY 2018 Proposed Budget Presentation & Budget Work Session: Revenues/Five Year Financial Planning Model/Compensation Tuesday, February 28 7:00pm City Debt Policy Update (during legislative meeting) Wednesday, March 1 7:00pm Budget Work Session: Capital Improvement Program Wednesday, March 8 7:00pm Budget Work Session: Alexandria City Public Schools Monday, March 13 4:00pm Public Hearing: FY 2018 Budget Tuesday, March 14 7:00pm Introduce the Maximum Property Tax Rates Wednesday, March 15 7:00pm Budget Work Session: Healthy & Thriving Residents Tuesday, March 21 7:00pm Budget Work Session: Livable, Green & Prospering City Wednesday, March 29 7:00pm Budget Work Session: Safe, Secure & Just Community Wednesday, April 5 7:00pm Budget Work Session: Accountable, Effective & Well-Managed Government Wednesday, April 19 7:00pm Budget Work Session: Topic TBD Saturday, April 22 9:30am Public Hearing: FY 2018 Tax Rate Tuesday, April 25 6:00pm Budget Work Session: Preliminary Add/Delete Discussion Monday, May 1 7:00pm Budget Work Session: Final Add/Delete Discussion Thursday, May 4 7:00pm Special Meeting: Budget Adoption

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Thank You