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 2

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% 3

Proposed Budget Summary FY 2017 FY 2018 General Fund Expenditures $ Chg % Chg Approved Proposed 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. 4

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 5

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 of -1 from FY 2017 • Since FY 2009, the City is down 100 positions 6

Safe, Secure, & Just Community • $1.5 M in funding to accelerate filling of 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) 7

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 8

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 9

Accountable, Effective, and Well- Managed Government • CIP shift to priority based maintenance of 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 10

ACPS Operating Budget Comparison of Proposed City and ACPS Operating Transfers 1 FY 2017 FY 2018 Dollar Percent Adopted Proposed Increase Increase ACPS Transfer $206.6 M $216.2 M $9.6 M +4.6% City Operating $206.6 M $214.1 M $7.5 M +3.6% Transfer % of ACPS 100% 99% Budget Funded 1. Does not include School related debt service which will equal $28.5 million in FY 2018. 11

ACPS Capital Improvement Program Comparison of Proposed City and ACPS 10-Year Capital Improvement Programs Previously Adopted Proposed FY 2018 - FY 2018 – Dollar Percent 2027 2027 Increase Increase ($ in millions) ACPS $247 $611 $364 +147% City $230 $373 $143 +62% Difference $17 $238 12

ACPS Funding Comparison $700.0 Millions School Board Approved FY 18 - 27 CIP $600.0 $611 M $500.0 City Manager's Proposed FY 18 - 27 CIP $400.0 $373 M $300.0 School Board Approved FY 17 - 26 CIP $247 M $200.0 City Council $100.0 Approved FY 17 - 26 CIP $230 M $- FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 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 13

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 14

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) 15

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 16

Unfunded Supplemental CIP (First Five Years) 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 17

Budget Development Dates FY 2018 Proposed Budget Presentation & Tuesday, February 21 7:00pm 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 18

Thank You 19